Council presses administration over shift from net to gross accounting in life‑insurance contract

Personnel Director Steven Rotondo asked the committee to extend a three‑year term life insurance agreement with Securian (OCS), reporting that the city negotiated a three‑year freeze on employer‑paid premiums for active employees but could not freeze retired firefighters’ premiums. Rotondo said retired firefighters pay 100% of their premium via pension deductions.

Multiple council members raised concerns about a change in how the contract cost was presented in the packet: previously the budget had been shown on a net basis (after expected employee reimbursements), while the current packet listed a gross spending authority for three years — increasing the front‑end spending authority that council members must approve. Finance/purchasing staff said the gross presentation follows purchasing best practices for multi‑year spending authority; purchasing director Frances Gomez told the committee she recommended gross authority so the city has full spending authority if reimbursements arrive later.

Council members sought clarity on whether approving a gross spending authority would exceed previously approved budget amounts and what the net out‑of‑pocket impact to taxpayers would be. After discussion and several motions, the committee voted to move PCR 99‑25 to the full council with no recommendation.

What’s next: The item proceeds to the full council for final action; council members requested clearer budget documentation showing net budgeted amounts versus gross spending authority before final approval.