05-11-2020 Council Packet - Laserfiche WebLink

Home Browse Search

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