Draft Min. Special Called Mtg 8-5-10MINUTES OF THE SPECIAL CALLED MEETING OF THE ATLANTIC BEACH
CITY COMMISSION HELD IN THE CITY COMMISSION CHAMBER AT 5:00 PM
ON THURSDAY, AUGUST 5, 2010.
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PRESENT: Mayor Mike Borno
Mayor Pro Tern John Fletcher
Commissioner Jonathan Daugherty
Commissioner Paul Parsons (arrived at 5:16 pm)
Commissioner Carolyn Woods
ALSO: Jim Hanson, City Manager
Alan Jensen; City Attorney
George Foster, Human Resource Manager
Donna L. Bartle, City Clerk
Mayor Borno called the meeting to order at 5:06 pm. Mayor Borno gave the Invocation,
followed by the Pledge of Allegiance to the Flag.
Courtesy of the Floor to Visitors
Mayor Borno opened the floor to visitors and invited visitors to speak. No one in the audience
spoke. He pointed out that Nancy Bailey had submitted her comments in writing since she is on
vacation and a copy has been distributed to each elected official. He requested that her comments
be made as an addendum to the minutes. The Commission agreed.
Change to Employee Health Insurance — Discussion and Action
George Foster broke the discussion into two issues, what level of health insurance should be
provided to the employees and how to pay for it. He explained the history of the employees'
health insurance benefits, costs and deductibles showing the increased costs to the employees.
He gave a slide presentation and explained his recommendation for the new health insurance
plan which would raise the employee's premium by 3.5% and have the City pick up an
additional $55,000.
Commissioner Fletcher asked whether we could offer both plans and have his recommended plan
as a buy up plan. Mr. Foster answered that it could be done, but he would prefer not to. He
believed that employees who are on the current base plan will not take the buy up plan since it
will cost them more money.
Mr. Foster answered several questions from the Commission and further explained the different
options. He also pointed out that this is the second year there is no pay increase in the budget for
the employees. He further stated this year the cost of living is approximately 2% and we are
passing on out -of- pocket increases to the employees at the same time that we are not increasing
their compensation.
At the request of Mayor Borno, Mr. Foster explained the impact the new health care plan will
have when it goes into effect in 2014, if it is not changed, stating he is estimating those mandates
will probably increase our rates by 5 -20% by 2014.
Commissioner Woods stated she supports Mr. Foster's recommendation.
Commissioner Daugherty stated we have a couple of employees who have 100% of their benefits
paid by the City. He asked if they were brought into this 90% pool how would that affect the
amount the City has to pay. Mr. Foster stated it would save the City approximately $9,000 per
year. He further stated one of those employees has a legal, binding contract and one has a
Resolution passed by the Commission which, to him, is a legal, binding contract. He stated
therefore, there would have to be some negotiations with those individuals. He stated those two
employees are also taking a hit because their out -of- pocket deductibles and copays are not
covered.
Commissioner Parsons stated he wants to give the employees the lowest payout from their
pocket that the City can afford to do because they haven't given them raises for two years. He
stated he agrees with Mr. Foster's recommendation.
Public Works Director Rick Carper stated he has the bulk of the employees who are in the
minimum wage Grade 12. He stated they won't bother to do the math to see what plan would be
best for them because it won't make any difference. He stated they can't afford the buy -up plan.
He stated they can't afford more money out of their pocket now because they are living on what
they get paycheck to paycheck.
Motion: Approve the recommended plan.
Moved by Parsons, Seconded by Fletcher
Votes:
Aye: 4 — Borno, Fletcher, Parsons, Woods
Nay: 1- Daugherty
MOTION CARRIED
Adjournment
There being no further discussion, the Mayor declared the meeting adjourned at 5:44 p.m.
Mike Borno, Mayor/Presiding Officer
ATTEST:
Donna L. Bartle, CMC
City Clerk
ATTACHMENT A
Honorable Mayor and Commissioners,
Although I couldn't be here tonight, I did want to state some facts and comment on some
of your statements at the last Commission meeting regarding our health insurance.
1. Your decisions should never be made due to your own personal experiences, they
should solely be based fairly on economics and how your decision will impact the
future of the City of Atlantic Beach. Your personal financial situation, either
good or bad, should never come into the equation and most assuredly should not
have any impact whatsoever in dete how you vote regarding our health
insurance benefits or any other financial decision for the City.
2. We don't work for the private sector, although some of you made that comparison
and used it in dete how you would vote on our health insurance costs and
benefits. Our employees serve the public and the citizens of Atlantic Beach and I
believe we do a superb job. If you want to compare us to these private
companies, then you should also state those things that we don't receive by being
a public servant such as bonuses, stock options, etc., and state those jobs we
would not be required to do for a private company such as becoming "essential
staff' during a hurricane or other natural disaster, whereby we must leave our
homes and family to man a shelter 24n.
3. There are certain expenses and responsibilities required to run a city, not the least
of which is treating the employees fairly and with respect. To state that the
employees rather than the taxpayers (and I realize all of you are taxpayers) should
pay for any additional costs of runnin the City is not right. Throughout history,
has it not been the taxpayers who have paid for the expenses to run a city? Why
are you now trying to make that cost become the employee's responsibility? It is
the taxpayer who gets the benefit of a competently and efficiently run city and the
only way to have that is to have competent and efficient employees. By trying to
force the burden of the extra cost increase for health insurance to the employee is
taking the easy way out. You can only take away so much from an employee
before that employee has nothing left to give, especially those of us in the lower
pay scales. Employees do not stay in jobs where they feel they are not
appreciated and treated fairly and the cost of training new employees is great.
4. We continually hear that Atlantic Beach's fiscal condition is better off than other
cities. If that is true, why are you trying to take more and more away from the
employees? Why are you treating your employees as though our City's budget is
as tight as the other cities, when in fact Atlantic Beach is doing better? All I ask
is that you be fair in this decision and future decisions regarding the employees of
Atlantic Beach.
Respectfully submitted,
W
Nancy Bdiley