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HomeMy WebLinkAbout10/24/1988COUNCIL WORK SESSION MINUTES October 24, 1988 4:30 p.m. Large Conference Room Members present: Mayor McKinley, Fox, Dell, Brown, Wright, Budak, Buck. Members absent: Angel. The Agenda, as proposed, was approved. The first item of discussion was establishing the Mayor/Council's salaries effective January 1, 1990. Jim Rodemeyer, Personnel Director, summarized his memo of October 21 stating that one of the Council's goals and objectives was to review and modify the salary of the Mayor and Council for the next two-year term beginning January 1, 1990. State law stipulates that salary increases for Mayor and Council cannot become effective until the next term of office. A survey of other major Iowa cities and major counties was conducted, the results of which were summarized. The proposed annual salary for the Mayor beginning January 1, 1990 is $39,500 and $43,500 on January 1, 1991. The proposed annual salary of the City Council is $3,950 beginning January 1, 1990 and $4,350 beginning January 1, 1991. The Council's salary is approximately 10 percent of the Mayor's salary. Councilperson Buck reiterated his support of the salary proposal and the importance of raising the Mayor's salary. It was stated that if the proposals were approved, an ordinance would be submitted to the Council for formal adoption of the salary schedule. Moved by Brown, seconded by Buck that the City Attorney be instructed to prepare an ordinance reflecting the Mayor and Council's salary beginning January 1, 1990 and January 1, 1991, as recommended. Motion carried Jim Rodemeyer, Personnel Director, briefly reviewed the recently enacted legislation which allows IPERS employees who have completed a minimum of thirty years of employment and attained the age of at least 55 to retire with the full IPERS pension if their years of service and age equal 92. At issue is whether or not employees retiring before the age of 62 will be provided health, dental and prescription insurance, at no cost to the employee. Currently, the City extends to IPERS employees who retire at the age of 62 and until the age of 65 such benefits. This issue was addressed at a Work Session on October 3 but a decision was not made. Further information was provided to the Council. The following options were reviewed: 1. Continue the current policy. 2. The City pays the cost of a single policy for the employee from the time of the early retirement until the employee reaches the age of 65 and the employee be allowed to purchase insurance for their dependents at the employee's cost for the 36 month period outlined under COBRA. 3. The City pays the cost of both the employee and dependent insurance from the time of early retirement until the employee and dependent reach the age of 65. 4. The employee pays the entire cost of the insurance policy for themselves and their dependents from the time the employee takes an early retirement under the Rule of 92 and until the employee reaches the age of 62. At the age of 62, the City would then pay for the cost of the employee and dependent insured until the age of 65. Council Work Session Minutes October 24, 1988 Page 2 The IPERS 92 Rule refers to both bargaining and non -bargaining employees as well as the insurance coverage that the Council decides upon. Councilperson Brown stated that he had checked with other major employers in the City including Reed Cadillac, IPS, J.C. Penneys, several banks, etc., and that the City's policy on payment of insurance for retirees is the most liberal next to John Deere. He stated that he felt that the City was not in a financial position to do any more than it currently is. An informal poll of those present was taken with the majority favoring option two, with the stipulation that the years of service must be with the City of Waterloo and that the employee was limited to the 36 month time period established by COBRA for purchasing insurance for their dependents. Councilperson Brown stated his opposition to giving away these fringe benefits in light of the City's budgetary constraints. Discussion was heard on the Blue Cross/Blue Shield and Heritage. National Health Plan insurance coverage afforded to employees. Employees are given an option to select either insurance carrier and are afforded a further opportunity to switch this coverage once during each fiscal year. It was also stated that we pay actual cost incurred for those employees covered under Blue Cross/Blue Shield and are on a premium basis for Heritage. The issue of insurance coverage for employees qualifying under Rule 92 will be presented to the City Council in the form of a resolution. The purchasing policy for the City of Waterloo was presented. Larry P. Burger, Clerk/Auditor, reviewed the flow chart of the purchasing policy. He stated that the City has a coordinated purchasing system with all major purchases being reviewed by Bruce Messinger, Budget Analyst. It also has been the City's policy that any purchase over $300 should be bid, if possible. Mayor McKinley stated that there are three major issues that must be addressed by the Council concerning this policy. They are as follows: 1. Do Boards and Commissions have the authority to take bids without the review of the Finance Committee. 2. It has been suggested that obtaining equipment through the State bidding process may be more cost effective. It has not been the City's policy in the past to purchase items through this bidding process. 3. The bidding process has on occasion "specked out" certain vendors. Questions were raised as to whether or not the City is at a point where a full-time purchasing person should be employed. Councilperson Buck suggested that it is important to buy locally, but that the State bid should be considered with local bidders being allowed a 5 percent margin. It was the consensus of the Council that we stay with the "metro" approach of inviting bids. John Meyer, Public Works Director, stated that the metro policy of bid invitation may be allowing only one dealer to bid and cautioned that bids outside of the community may be necessary. At 5:35 p.m., the meeting was adjourned with discussion deferred on the purchasing policy to November 7, 1988. Larry P. Burger Clerk/Auditor