DUNES CITY COUNCIL MINUTES
SPECIAL MEETING
August 27, 2003

1. CALL TO ORDER AND ROLL CALL

Mayor Rob Ward called the meeting to order at 6:30 p.m.

PRESENT: Mayor Rob Ward, Councilors, S. Meyer, S. Navetta, P. Howison (arrived late), J. Martin, and R. Petersdorf.

ALSO PRESENT: Recording Secretary, C. Lewis.

2. Mayor Ward opened the meeting explaining that the purpose of the meeting was to continue discussions on medical benefits for the City Recorder and the Planning Secretary. It was brought to the Council's attention at the August 14, 2003, City Council Meeting that further discussions were needed to clarify the health coverage benefit. On May 8, 2003, the Council in a 4 aye, 3 nay vote, approved medical benefits to the two staff members and, in addition, instructed the Budget Committee to evaluate the budget to see if funds would allow medical benefits at the $300, $400, or $500 levels. On May 14, 2003, the Budget Committee approved medical benefits at the $500 level in a 10 aye, 0 nay vote. On June 12, 2003, the City Council adopted the 2003-2004 Budget. The question is whether or not the Council confirmed the $500 amount that has been implemented by the City Recorder.

Councilor Peter Howison arrived at 6:35 PM.

Ward said that the Council would need to clarify at which level the benefits would be funded at. Ward said that he had no problem funding medical benefits at the $500 level. Councilor Martin said that the budget is a plan and the City has entered into a contract with Blue Cross/Blue Shield that was never brought before the Council and was signed by Joanne Hickey. Martin said that the Council was never able to discuss choosing another plan and she has concerns about how the issue was brought up. The Council didn't hear about it until the Budget Meeting and Martin feels that the Council should have had several months to review the benefits. Martin talked about contacting CCIS (City County Insurance Services) about other Blue Cross/Blue Shield plans that appeared to be a better selection for the City. Mayor Ward brought the discussion back to insuring the staff at $300, $400, or $500 level. The Council discussed the minutes and agreed that medical benefits were approved. However, Martin stated that the budget is just a plan and adopting the budget doesn't mean every penny has to be spent. Mayor Ward said that they were not there to debate that issue. The Council discussed the high cost of the benefits, but consensus was that it was in line, even low, for what different employers are providing to their employees.

Martin asked Meyer if SWOCC provides health benefits to part-time employees, which he answered yes. Martin said that the City of Florence does not provide insurance to part time employees. Ward said that the City has already decided that insurance would be provided to the two part-time employees. Councilor Howison asked if the City would fund the full $500. Councilor Navetta said she objected to the way the situation was handled and would liked to have seen the benefits approved the same way as when the Council approved the Road Commission's computer. Mayor Ward said that in defense of Hickey, he could see where she had come to the conclusion that the budget had been adopted and the related appropriations were made. Martin said that she also objected to the process and started to discuss expenditures from capital outlay. Mayor Ward stopped the discussion saying that if there was a personnel issue then that issue would be discussed in an Executive Session. Martin declined. Ward then brought the discussion back to the medical benefit's issue. Martin said that the Council had been misled to believe that the worst case scenario for out of pocket expenses was $1000. Martin discussed the selected plan itself and talked about deductibles citing that in Jeannie's case it would be a $4000 total plus co-pays up to $5000 out of pocket. Councilors Martin and Meyer said that the City should finish out the existing contract and, next year, discuss plans prior to the new budget process. Councilor Petersdorf said that in approving the medical benefit, the Council has informed the staff that the decision of health benefits would be on a year to year basis. Meyer said that it is not the Council's job to find the best plan. The City has an Insurance Agent of Record and it is not an individual councilmember's position to do the comparisons. Navetta said that the Budget will support the expenditure, but the Council did not decide on the $500 level.

ACTION: B. Petersdorf made a motion to approve medical benefits at the $500 level for the current budget year and that there be two separate discussions prior to next year's budget meetings concerning future expenditures for health insurance. S. Navetta seconded the motion. There were 5 ayes, 0 nays. Motion carried.

Discussion for the motion: Petersdorf cautioned that if the meetings were not held, then there would be no medical benefits for staff. Meyer made a comparison of an hourly wage increase ($2.60/hour for a 1300 hour/year position) to the amount of the $500 level for health insurance Howison questioned how expenditures were decided and where the funds for Dunes City is generated. Ward explained about the budget committee and the funds received from cigarette, alcohol, and room taxes. Discussion ended and the vote was taken.

There were discussions about the current plan and Ward suggested that Joanne Hickey research with Coast Insurance for a better plan. Ward also suggested looking into a specific plan that his company is researching. Howison cautioned against new insurance systems. There was a discussion on personnel policies.

Martin brought the discussion back to the Restroom Remodel Project that came under-budget, and how all the other improvements to City Hall was budgeted with the excess money. Petersdorf said that there is a statute that says that any City Councilor that spends money without the approval of the City Council can be liable for that money. Ward reminded Martin that the additional expenditures were approved by the City Council. Navetta said that painting the building was not authorized by the Council. Navetta said that she remembered informally talking with Joanne about getting volunteers together and painting the building and having a pizza party afterwards. Ward said that he recollected that the City Council did authorize the painting contract. Martin said that she doesn't remember approving the painting of the building. Howison also did not remember asking for bids. Ward reminded the Council that they have responsibility to maintain the building, adding that the roof is in questionable shape.

Meyer enquired about the empty Council seat. Mayor Ward said that John Scott may submit an application for the open Council position and that interviews would be a public meeting, but would more than likely be held in the Road Commission Room.

Martin had a question as to how the capital budget for the Community Center gets put together for the budget. Petersdorf said that in the past the Mayor gets together with the City Recorder and they discuss funding and projects. Ward said that it was an informal process, and recently the City Recorder has taken it upon herself to improve and maintain the building.

Navetta said that the Council has been sloppy about giving direction. For example, there was discussion about writing a letter to the Water Resources Department during the last Council meeting when Ronnie Howell was the speaker. Navetta said that no one directed or made a motion for that letter to be written.

Petersdorf said that he thought that the Committees should have written documentation in the packet regarding Reports. Navetta requested that staff include written documentation with the Reports Section in the City Council Agenda packets. Ward directed staff to group papers with the Site Review Committee and Conservation Committee Reports.

14. ADJOURNMENT: Mayor Ward adjourned the meeting at 7:20 p.m.

APPROVED BY:

Robert B. Ward, Jr., Mayor
C. Lewis, Recording Secretary
S. Meyer, President
J. Martin, Councilor
R. Petersdorf, Councilor
S. Navetta, Councilor
P. Howison, Councilor
E. Becker, Councilor