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MINUTES OF THE <br /> ORONO CITY COUNCIL MEETING <br /> Monday,April 27,2020 <br /> 6:00 o'clock p.m. <br /> 17. LA20-26,JAY POMEROY/ORONO PUBLIC SCHOOLS,2687 WAYZATA BLVD W, <br /> SITE PLAN APPROVAL <br /> Seals moved, Crosby seconded,to approve the Consent Agenda as revised,with Item Nos. 4 and 7 <br /> being removed from the Consent Agenda,and Item No. 17 being added to the Consent Agenda. <br /> Item No. 17 was removed from the Regular Agenda. Roll Call Vote: Ayes 5(Crosby,Johnson, <br /> Seals,Printup,Walsh),Nays 0. <br /> PUBLIC COMMENTS <br /> None <br /> 4. APPROVE PAYROLL SERVICES <br /> Finance Director Olson said his Payroll/Utility Billing Clerk retired. They have been working through <br /> replacing her position and discussing options with the Organizational Committee.Through the process <br /> they have been talking with various payroll companies such as ADP,Paychex, and Gusto, although Gusto <br /> told them the City is bigger than they are designed to deal with. They determined there are some <br /> efficiencies to be had by outsourcing the payroll function to a place like Paychex,a lot of which has to do <br /> with the benefit administration.Because of the way things have evolved over time,the City finds <br /> themselves with 5 different benefit administrators for various plans: 1 agent for the LOGIS Health Care <br /> plan;there used to be 1 agent for the ancillary plans such as health insurance and life insurance.Now <br /> there is 1 for health insurance, long-term disability, life insurance,and short-term disability. The City was <br /> doing their own COBRA administration. However,they did not want to do so because of the potential for <br /> a lawsuit, so they added someone who did COBRA administration and then electronic benefit enrollment. <br /> As a result, suddenly there are 5 different services used. They cannot be combined in the current method, <br /> but if the City outsources payroll,ADP and Paychex would be able to handle the other insurances and act <br /> as the agent. He indicated there was a document in the packet that would show the savings experienced by <br /> using that type of company.He noted payroll is a necessary function,the City has to pay their employees, <br /> and it is just a question of how the City wants to do it. The Committee and Staff determined that <br /> outsourcing the payroll function makes sense. <br /> Johnson said he wanted to hear from the Organizational Committee regarding this because he knows there <br /> was talk about adding another position. He asked if the payroll outsourcing would take away the need for <br /> the position. He also referenced Paragraph 2,"Background,"where Gusto indicated they were set up for <br /> it. <br /> Olson indicated that was a typo on his part; Gusto was not set up for the City. <br /> Johnson noted the Organizational Committee could comment on that.He said he did not see proposals <br /> from ADP or Gusto and asked if he missed them. <br /> Olson said they did not have Gusto included in the information. Gusto was cheaper, but it was payroll <br /> processing with no other parts to it. He said Paychex was a much more robust solution. He thought the <br /> ADP proposal was available when he talked with the Organizational Committee,but he did not think it <br /> got attached to his documents. He stated companies are not always apples-to-apples just because of what <br /> Page 2 of 16 <br />