CCP 12-09-2014 - Laserfiche WebLink

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the city that works for you Council Worksession November 25, 2014 5:00 pm Present: Mayor Dave Jacobsen Councilmember Gina Bauman Councilmember Brian Strub Councilmember Paul Jacobsen Councilmember Mary Burg Absent: Staff in Attendance: Dean Lotter, Finance Director Brenda Davitt, Management Analyst Joe Hatch, Senior Engineer Craig Schlicting Guests in Attendance: Organizational Savings and Health Insurance Costs Lotter reviewed a proposal to reorganize the Public Works Department and Community Development Department. This reorganization would save the City money. He discussed the new director position that would be created to oversee the new department, noting two director positions would be eliminated. He estimated the proposed realignment of these departments would save the City $167,000 in employee costs. He reported that these savings could be reallocated towards increased health insurance costs. He reported that the overall budget could be reduced by $50,000 through the residual savings, or this funding could be put in the budget for a community survey. He requested comment from the Council on the proposed reorganization. Councilmember Bauman supported the theory behind the reorganization. However, she had an issue with how the City would be perceived in letting employees go to cover the increase in health insurance. She believed that the City was spending too much money on the 2015 budget. Councilmember Strub believed the reorganization was a bold move that would be seen more in the private sector. He discussed the severance packages being offered to the employees and explained he supported the creative solution proposed by staff. Mayor Jacobsen discussed how reorganizations created greater efficiencies. He believed that organizations should evaluate themselves on occasion to improve efficiencies. He stated this would not be an easy decision for the Council to make and he understood the concerns with how the reorganization proposal would appear. Councilmember Burg indicated she was having a tough time coming to a conclusion on this item. She was uncomfortable with discussing the topic. She thought that the reorganization and the reallocation of the savings for health care should be separate items. She appreciated the City Manager's proposal, but noted this was a very difficult item for her to consider. She feared how City staff would be impacted by the decision. Lotter reported that the reorganization was not being proposed because of the health insurance increases. He indicated if the Council was more comfortable moving the reorganization to Council Business, this could be done for this evening's Council meeting. The Council could then direct staff to report back with further information on the health insurance. He discussed the recent large claims that were made by City employees, noting this had increased the City's experience ratio. He explained there was a time restraint with the health insurance coverage decision. Councilmember Jacobsen supported this recommendation.