Adopt Resolution #18-245 to Authorize the City's 2019 Non-Union City Health and Dental Insurance Contributions and Cost of Living Adjustments

The purpose of this case is to ask the City Council to approve the non-union employee City health and dental insurance contributions and cost of living adjustments (COLA).   It should be noted that the recommendations in this non-union case are the same as recommended for the City's four union groups.  

Health Insurance
The City continues to be a member of LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group’s health plan.  Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between two networks; or they may choose to waive the City’s health insurance.

If approved, the City's total monthly contribution to health insurance, including contributions to the health reimbursement account or the health savings account will be as follows: Employee only (single) from: $789.00 to $858.00; Employee and Children $1,033.60; Employee and Spouse $1,077.40; and Family $1,327.80.  Employees that elect to waive health insurance in 2019 will receive credit in lieu of coverage in the amount of $370.00 per month and must agree to specific terms and conditions. 

Note: See attachment for additional health plan details. Employees are responsible for paying the difference between the premium and the City’s contribution.

Life Insurance
If approved, the City will continue to purchase $20,000 of basic life and AD&D insurance for full-time regular employees working 30 hours per week and employees participating in the PERA's phased retirement program. The cost of basic life insurance is $1.00 per month per employee.

Single Dental Insurance
If approved, the City's monthly contribution to single dental insurance will be $33.45 per month. The City will not offer credit in lieu of coverage for dental insurance.

Wages
If approved, the City's COLA will be 2.75%, effective January 1, 2019. Annual cost of living adjustments are carefully researched, budgeted for, and are necessary for recruitment and retention of employees.

Non-union Wage History
2018 2.5% COLA 1-1-18 through 06-30-18 plus .50% COLA beginning 07-01-18
2014 through 2017 2% COLA
2013 1% COLA
2012 2% for all employee groups, with the exception of Department Heads at 1%
2010 & 2011 Zero %
2003 to 2009 3%

The funding required for this action is included in the proposed 2019 budget. 

Staff recommends moving forward with the City non-union health and dental insurance contributions as listed and a two and three-quarter percent (2.75%) COLA on January 1, 2019.  This action is important in order to effectively maintain internal equity, compete in external hiring processes, and to retain the City's talent. Staff does not recommend an alternative action.

Motion to adopt resolution #18-245 to do the following:
1) Authorize the following non-union monthly City health insurance contributions: Employee Only (Single) up to $858.00, Employee and Children at $1033.60, Employee and Spouse at $1077.40, and Family at $1327.80, or $370.00 to waive coverage; and
2) Authorize the non-union dental contribution of $33.45 per month; and
2) Authorize increasing the non-union wage scale by two and three-quarter percent (2.75%) on January 1, 2019.