Mackinaw City Village Council trustees decided that a specific two-year post-employment insurance plan should be discussed after agreeing to provide Mackinaw City Police Officer Robert Desy post-retirement insurance during the Thursday, November 19 meeting. In the past, the council decided to provide the two-year retirement insurance plan on a case-by-case basis, but trustees believe solid parameters should be set to handle any new retirements.

The current policy states that at least 25 years of service with the village is required before two years of post-employment insurance will be considered. The village then decides the amount of coverage, if any, that will be offered. Mr. Desy has served the village for 37.5 years and will be retired at the end of the year. The council approved a two-year, twoperson retirement insurance plan that will cover 95% of insurance premiums at the time of his retirement. Any increases in premiums after his retirement will not be covered by the village .

The current annual premium for a two-person policy is $11,200.

Village Manager Jeff Lawson said no specific parameters were set as the village decided in the mid-1990s it would be unable to fund post-employment insurance for every employee. Instead, the village would consider it on an individual basis.

Other reasons why retirement insurance parameters were not set in the past, Mr Lawson said, was that it was not a primary concern because there were few retirements. Five village employees have retired in the past 10 years, he said. Additionally, the council was unwilling to commit to creating a two-year post employment plan as it would have to be addressed during employee contract revisions.

Belinda Mollen, chair of the Finance Committee, where the matter was first discussed, said she would have liked to increase the cap but decided against it for several reasons. Mr. Desy always contributed to a portion of the premiums, she said, and she did not think it would be fair if the village effectively gave him a "raise" in retirement and covered more of the costs. The financial health of the village also have to be taken into consideration, she said.

Trustee Janelle Bancroft felt the coverage was somewhat high, and asked how the 95% premium coverage was determined and how it is paid for. Paul Michalak, who also serves on the Finance Committee, said past two-year retirement insurance rates were used as a basis from which to arrive at the decision.

The fund from which money for the retirement insurance is drawn depends on the employee, Mr. Lawson said. For police, the money is drawn from the general fund and transferred to the benefit fund. If the employee worked with the sewer and water division, money would be drawn from the sewer and water funds and transferred to the benefit fund.

The council scheduled a work session for Monday, November 23, at 7 p.m. to work on the details of a two-year post-employment insurance plan. No action is expected, but all council meetings are open to the public.

Ordinance Amendments Pass

The sewer ordinance, parking, and disorderly conduct amendments were read for a second time and unanimously passed during the council meeting. The sewer amendment adds the fats, oils, and grease policy that requires commercial businesses such as restaurants to use equipment to separate grease from water when it enters a drain. The parking amendment increases the fine for parking in a handicapped space to $100 from $25 and restricts parking overnight in downtown Mackinaw City. The disorderly conduct amendment adds language for certain acts, such as ignoring the order of a police officer, to be considered disorderly. The amendments will take effect 30 days from the meeting.

Ambulance Purchased

The purchase of a Michigan First Response McCoy Miller Chevy ambulance for $102,124 was approved by the council. Bond funds will be used to pay for most of the ambulance, while ambulance reserves will pay the remainder. The ambulance is a demonstration model, Mr. Lawson said, which the village typically purchases because their price is discounted.