Personnel Committee - Regular Meeting

Can everyone on Zoom hear us? Yes. I can hear you. Okay. Thanks. Yep. Everything's good. Alright. Nope.

No. Earlier. A couple of things

that we're

looking at recommending to in 2026. We are looking I think we mentioned this last month, carving out pharmacy benefits for next year, through National Co op. We are working with them to get that implemented. We are also looking at moving our vision from NVA to Delta Vision as of the first of the year. That's the same Delta who also runs our dental plan.

And the other big change we're looking at is we are gonna no longer offer the medical flexible spending plans in 2026. We will be offering solar dependent plans and then HSAs for employees. And the reason for this is we did fail our nondiscrimination testing last year due to the limited number of people. There was only about four people that actually took the medical FSA because they do have access to the HSA. So we are planning to get rid of that because all employees that have benefits offered to them have the option to go on the HSA plan.

So those are really the the big changes that we're we're planning. They're not huge changes. They're really not going to have any disruption to employees. With that, I guess I will turn it over a little bit to Tara to talk about funding.

Tara, if you

want to

come up just so we get on the microphone and maybe we want to switch over to that microphone, Jesse, just so it's actually captured. So

if you recall last month when we were here at the committee, we had an overall annual cost summary that was reviewed. And overall, on average, with the total fixed fees and claims cost for 2026, we had an average increase of about 16%. We were still waiting

to

firm up what is called the the administration cost from a stop loss perspective in the specific. So we were finally able to firm that and then also have an additional month of claims cost to be able to review and put that into sort of what we call the calculation for what we believe your claims cost will be for 2026. Right? So as we did that, we had a little bit of a better month. So we were able to look at a little bit of reduction in the claims cost overall.

So in updating those specific numbers, we had a total fixed and claims cost average increase for your medical and pharmacy plan of about 13% instead of that 17. So great news. We've gotten a few percentages off, not obviously the most ideal because we still have an increase in play. But we're able to firm that stop loss a little bit higher, but then able to reduce our overall claims spend, which is some of the largest cost, obviously, to you, and then push a relative increase of about 13% to the employees. Now please note, there is some updates to these monthly rates, and I just wanna make sure to note those for the for the record here.

The 2026 rates on the bottom of the memo where it has employee cost of $9.15, that number is going to actually, from the city or from the city's perspective, go from $915.25 to $8.54 93, and the employee contribution to $1.22 13. Family rates from the city of Manitowoc's perspective at $2,167 and $45.47 cents instead of $2,001.34 $50.52. And the employee portion at three zero nine sixty four versus three zero eight ninety three, and those are monthly contribution contribution rates. Rates. Okay?

So I'll pause there and see if you have any questions in regards to that update.

Any questions from the committee online and in person?

No questions here. Okay.

So then, for today, I I'm not necessarily asking for approval. I don't think I need approval tonight. But I will be including this in the October council meeting. That point, may have resolution just depending on where we're at with our stop loss.

Yep. Obviously, they'll be forwarded to the mayor for inclusion into the the budgeted with Sean. But once we have the actual numbers, we'll bring forward that resolution. Okay.

If we do have those by council meeting Yep. And authorized to put those through?

Absolutely. Once you have them finalized, we can bring it forward for planning purposes once yeah. Exactly. So any other questions from the committee? Otherwise, we'll look forward to when they're firmed up. We'll have that resolution come forward. Thank you.

Absolutely.

Okay, then we'll move on to our next document which is twenty five-six ninety seven, the annual reporting from salary survey for compensation plan adjustment. Jesse?

Yes. So this is a reporting that I have shared with you every year, but it's been part of my HR update. Per the changes in the employee policy manual this past year, It was asked that I report this directly to the committee every year when I get it. This is the survey that we get from carlson.menichier, and it has historically been used to make the adjustment to our structure of our compensation plan and also in consideration for what the annual increases actually are to employees as well. So this year, they're showing that our region was an actual increase of 2.7% for both exempt and non exempt. Any questions on that?

Any questions from the committee? Other coming?

Yep. Just one quick question, I guess. So it's at 2.7% right now. Is there like a magic percentile number where then we look at where it gets to then start like rebaselining in those discussions? Or am I completely off?

For employee increases or for the structural increases?

Yep. For the employee increases.

Typically, it's been whatever this this survey has has produced for the past year. Is that what you're asking?

Yeah. I I was just curious, like, how you use the report then, like, with it. It's in the decision making process. That was just for

Yeah.

I guess, my knowledge.

So the the former language in the EPM was that that structure would automatically be changed to this amount

each year.

But then we there's two there's two changes. There's two percentage changes that need to happen every year. We need to update the structure, the compensation structure each year in order to keep it competitive with the market. And then the other chain or the other increase that we're looking at is actual employee increases. So what employees' rates of pay are going to be increased. And, Historically, we have used this number in both of those decisions, but we we did make some changes to that EPM. So there's a little bit more discussion on that. We look at a few more things. We're gonna be looking at that. We're gonna be looking at exit interview data.

We're gonna be looking at, what other comparable markets are are giving those increases at. Okay. This was just part of the EPM language that it was asked that this be reported directly to this committee each year. Does that answer?

Yeah. It does. That I guess that's what I was kinda looking at is, like, like, how you use this, I guess, in the grand scheme of things. Alright. Thank you.

Yep. You're welcome. Okay. We don't need any action on that. It's just a report to the committee. So

So you have that for budget.

Was there any questions from Alder Norell or Alder Dunbar online?

None here. No. Pretty straightforward. Thank you.

Okay. Thank you. Alright. If there's nothing further, then we'll move on to, the next document, which is 25Dash0698, the exit interview data summary. This is a new report again that we're getting this year for the first time. So, Jessie?

Yes. So what I did here was I took all the data that we've gathered since January 1 for all employees that were leaving the city as far as either retirements, separations, any employee that we actually did exit interviews from. So here, I just tried to consolidate what I learned through those and what HR learned through those exit interviews. Did you have any questions? Maybe that's a better way instead of me going through the whole report, unless you want me to go through highlights.

Alder Cummings?

Yep. The only the only question I had is is how many and this has got be exact. Like, many how many exit interviews went into this report?

There were approximately, I wanna say, 20 to 25 that we were looking at.

Okay. Thank you. You're welcome.

Yeah. That was my one question too is when you look at it, what what you know, and then the percentage of, you know, when like, we take a look at better pay hours, there was several kind of percentage were we talking about there. And then, you know, the the and below that frustration of all a few what percent, you know? So we kind of gauge, you know, looking at 10% of workforce, 20% of workforce, something like that in the executive interviews just so we can quantify. Not that it's a perfect science, but just so that we could put some type of a quantification to it. I

can certainly add that for next meeting. Yeah. If you would like

me to Well, I don't even think it's next meeting. I just think it's next report is honestly what Yeah. When we take a look at it. So Yeah. Yep. Any questions from alder Narelle or Dunbar?

Yeah. I just have one question.

This is alder Narelle. So, Jesse, when you look

at this report, how does how does it compare to maybe prior trending that you've seen? This is the first time we've seen this report. But is this fairly consistent of of past experience with exit interviews, or

is there anything that jumps out

that makes this one unique?

No. I would I would not say anything jumps out. This is this is pretty typical from exit interviews year after year. I wouldn't say that this year is an anomaly at all. Again, most of the people are retiring, so so their comments are pretty basic. Mhmm. The ones that are leaving are typically leaving because they are looking at a a higher pay someplace else or different benefits. Mhmm. That is typically what we're hearing, and that's not new this year.

Okay. Thank you very much.

You're welcome. Okay. Any other questions on this? Otherwise, again, it's just a report, so there's no action needed.

Okay.

We have one more item before we go into closed session. Have every year during budget or right before budget season, we can give directives, committee directives to the budget for the mayor. So personnel is no different. So we have document 25 dash zero six nine nine, committee budget directives to the mayor. So if there's anything as a committee for personnel that we would like to give budget directives for, This is our opportunity. The mayor's here this evening. So if there's any, I'll open up to the committee if there's any directives related to personnel that we would like to give to the mayor. This is our opportunity for him to listen and include into his budget, hopefully.

I do not have any at this time

nor do I. Alder Dorrell or Alder Dunbar, do you have anything?

No, I do not. I do not.

Okay. Nor do I at this time. So we thank the mayor for attending and listening to our directives. Alright. Then we do have three items that do require closed session this evening.

So I will read our notice. Notice is hereby given that the above governmental body may adjourn into a closed session during this meeting as authorized by section 19 dot eight five one e of Wisconsin statutes, which authorizes the governmental body to convene into closed session for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified business, whatever competitive or bargaining reasons require a closed session. Specific subject matter that may be considered in closed session is 25 dash zero seven one one police contract bargaining for the '27 through twenty twenty nine twenty five dash zero three five seven teamsters local number 662 transit contract negotiations twenty five dash zero seven one zero fire department schedule request update for a 4896 schedule. The motion to convene in the closed session was made by alder person.

So moved.

Cummings.

Second.

Second by Beaman. Alright, roll call. Aye. Norell. Aye. Beaman. Aye. Cummings.

Aye.

Dunbar. Aye. Alright, we are in closed session.

I don't know what I'm doing here.

I

think you can just exit the room.

I hit close all rooms thinking that it would do it, but it didn't. This never popped up before. I never see this box. When When you guys went there, I thought, I hope it's not broadcasting, but I didn't hear anything. I don't know. Maybe can you guys can you guys hear me on Zoom? Yeah. I can hear you. Okay. Perfect.

Oh, then they're back, I think.

Well, let's do that.

I think Jesse closed them out down there.

Okay.

Alright. We are back from closed session, so we'll take up the documents at this time. The first one was twenty five dash zero seven one one, police contract bargaining for the 2027 through 2029 contract. We've just instructed the HR director to start that process. So this is their letter requesting to be opening.

No official action, and we'll just start that process. Next document is 25Dash0352, Teamsters local number 662 transit contract negotiations. There is no update at this time. And then we have twenty five dash zero seven one zero fire department schedule request update for the 4896 schedule. There's no official update from the committee at this time.

However, we have instructed our legal attorney to finish up the side letter and have that ready for the September council meeting. So that'll be coming forward for council action on the twentieth, which is two weeks from tonight. So that does exhaust our agenda. We look for a motion to adjourn.

So moved. Second.

Alright. We are adjourned. Thank you.

Thank you. Thank you everybody.

Recording stopped.