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     City of Canyonville                                                   

250 N Main, Canyonville, OR 97417
         541-839-4258 or 541-839-4020
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Monday, April 26, 2010 – 7:00 P.M.




Mayor Deaton called the meeting to order at 7:00 p.m. and all joined in the Pledge of Allegiance.


II.        ROLL CALL:

COUNCIL PRESENT:          Mayor Deaton and Councilors Braudt, Parker, Kovachy, Douglas, Barton and Coleman.

            COUNCIL ABSENT:                        None

STAFF PRESENT:                 Administrator/Recorder Janelle Evans, Deputy Recorder Joan Beckman & Public Works Superintendent Tony Lakey

            STAFF ABSENT:                  None.



1.                  Employee Health Care Plan – Administrator/Recorder Janelle Evans

Administrator/Recorder Evans highlighted her memo answering the council’s questions noting the following:

·         The city can make quarterly contributions to the employee’s HSA

·         Many groups contribute to the deductible upfront and have the employee pay a portion of the premium

·         The city cannot require repayment of contributions to the HSA from those who leave employment

·         An employee cannot be co-insured by their spouse’s insurance

·         An employee who spends their savings deductible on other than qualified medical expenses will be subject to 20% in penalties and taxes from the IRS

·         Most employers contribute funds equal to the full single/family deductible – some do it in one lump sum and some do so quarterly

·         Contributions to HSA's can be made on a semi-annual basis during implementation of the plan, new hires would have their contributions pro-rated for the first calendar year of coverage

·         If the money is not available in the HSA to pay the full amount of the deductible, the city cannot contribute funds on an exception basis – it must be the same for all

Administrator/Recorder Evans further referenced a spread sheet prepared of 1st quarter claims for each employee in 2009 and 2010 noting all but one employee exceeded their deductible in the 1st quarter of 2009. 


Discussion:  The council discussed funding the deductible monthly, quarterly, semi-annually or as a lump sum, the city budget running on a fiscal year, the HSA insurance policy was structured on a calendar year.  The council further generally discussed employees out of pocket expenses and how a catastrophic event could affect them.


Mayor Deaton noted that Resolution 572 A Resolution of Intent by the City Council of the City of Canyonville to Convert the Existing Health Care Plan to a Health Savings Plan was presented to the council at the 4-19-10 Council Meeting and tabled until the 4-26-10 meeting to work out the details, did the council wish to make a motion.


Administrator/Recorder Evans read Resolution No. 572 in its entirety.


Councilor Barton moved, Councilor Parker seconded a motion to adopt Resolution No. 572 - A Resolution of Intent by the City Council of the City of Canyonville to Convert the Existing Health Care Plan to a Health Savings Plan.  All voted “yes”.  The motion carried.


Councilor Braudt moved, Councilor Coleman seconded a motion for the purpose of the city budget for the fiscal year 2010/2011 to plan on funding the deductible in full for each employee January 1st, 2011.  All voted “yes”.  The motion carried.


2.                  Employee Handbook – Administrator/Recorder Janelle Evans

Mayor Deaton opened discussions on the Employee Handbook that had been adopted at the 3-15-10 council meeting and rescinded at the 4-19-10 council meeting.  The Council had reviewed a list of corrections/changes to the employee handbook prepared by Councilor Braudt.  Most corrections/changes were grammatical and had been corrected.


Discussion:  The council discussed the following items as accepted or rejected changes to the handbook:

·         Pg 17 ¶ 2 line 1 – Reject changing 12 month probation to 6 months (council had already determined a 12 month probation)

·         Pg 23 ¶ 2 #2 – Accept delete “or be a discredit to the City”

·         Pg 23 ¶ 4 line 4 – Accept delete “or otherwise harmful”

·         Pg 24 ¶ 2, lines 3-4 – Administrator/Recorder Evans to research legality

·         Pg 24 ¶8 – Accept delete this paragraph (redundant)

·         Pg 27 # 6 – Reject delete “Unauthorized” (removal restricts council authority to authorize)

·         Pg 35 ¶1 lines 2-3 –Accept removing entire sentence beginning “Consideration will be given to the seriousness….” (sentence is irrelevant)

·         Pg 46 ¶3 – Accept Remove entire paragraph (redundant)

·         Pg 50 ¶1 line 2 – Reject Replace “last” with “first” – (council agreed that an employee should work one full month before accumulating accrual)

·         Pg 50 ¶1 line 5 – Accept Replace “six months of continuous employment” with “one month of continuous employment”

·         Pg 50 ¶6 line 1 & 2 – Accept Replace “in certain situations” with “after ten consecutive days of sick leave”  (the intent is to assure the city the employee is well enough to return to work)


Prior to the meeting Councilor Parker had given a written proposal to Mayor Deaton that if agreed upon could result in a unanimous vote to accept the employee handbook in its entirety.  Councilor Parker read the following proposal:


The proposal was to be inserted on Pg 49 after the 2nd paragraph:


If you are hired on or after July 1, 2010, you will earn vacation benefits according to the following schedule:

            Number of continuous yrs of serv                              Benefit per yr

            Earned during 1st – 3rd yr                                            40 hrs or 5 days

            Earned during 4th – 9th yr                                            80 hrs or 10 days

            Earned during 10th – subsequent yrs                           120 hrs or 15 days


Page 51 new last paragraph:


Probationary employees will receive pay only for those holidays that occur after they have completed six months of continuous employment.


Discussion:  The council generally discussed vacation time and that cutting vacation time does not save money but only provides more man power. It was further noted that the elimination of paying for holidays for probationary employees could cause a different standard between public works and admin since a public works employee could be scheduled to work a holiday and not lose a day.  The council generally discussed savings through the restructuring of OT, capping accruals and attempting to create a handbook that can last.


Mayor Deaton requested that Administrator/Recorder Evans draft a memo with the following recommended changes and have the memo added to the May 17th Council Meeting agenda for a vote:


                     Vacation Benefit for employees hired after July 1, 2010

            Earned during 1st – 2nd yrs                                          40 hrs or 5 days

            Earned during 3rd – 8th yrs                                          80 hrs or 10 days

            Earned during 9th – subsequent yrs                             120 hrs or 15 days


          Paid Holiday Benefit

Probationary employees will receive pay only for those holidays that occur after they have completed six months of continuous employment.   



1.         Budget Committee Meeting – Thursday, April 29, 2010 @ 7:00 p.m.

2.                  Planning Commission Regular Session – Thursday, May 6, 2010 @ 7:00 p.m.

3.                  City Council Regular Session – Monday, May 17, 2010 @ 7:00 p.m.



Being no further business, the Council adjourned at 9:36 p.m.


Submitted by:                                                                   Approved by:




______________________________                               ______________________________

Joan Beckman, Deputy Recorder                                  Robert A. Deaton, Mayor  
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