03-26-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MARCH 26, 2007 RESOLUTION NO.2007-3-75 -AWARDING THE BID OF R. J. MARCO FOR CITY CENTER REPAIR WORK IN THE AMOUNT OF $34,564.24, INCLUDING ALTERNATE WORK FOR REPLACING AND LOWERING WINDOWS ON THE SOUTH WALL OF THE BUILDING, AS WELL AS REPLACEMENT OF THE FRONT DOOR, SUBJECT TO DETERMINATION THAT THE ALTERNATE BIDS FOR THIS WORKARE LOW AND SUBJECT TO THE TOTAL COST BEING UNDER $50,000 The foregoing resolution was duly seconded by Allan. Ayes (4). Nays (0). Resolution declared adopted. HEALTH The City Administrator reviewed the March 22, 2007 report relative to INSURANCE renewal of employee health insurance. He noted that the HealthPartners RENEWAL renewal quote for the existing plan reflected a 23% increase in premium. Given the size of this increase, City staff has reviewed alternative plans as well as carriers. Based on that analysis, the recommendation is to stay with HealthPartners, but change plans from their Open Access 15-100% Plan to Open Access 15-80%. The change results in 80% coverage for inpatient/outpatient hospitalization up to maximum out-of-pocket amounts. Prescription and co-pay costs that employees are responsible for are also applied against the maximum out-of-pocket in combination with the hospitalization costs. The City Administrator noted the negative impact that this change has on employees with "single coverage", given that the City pays 100% of the premium cost for single employees. Employees with dependent coverage will realize fairly substantial increases in their premium costs, even under the change to the Open Access 15-80% plan. The City Administrator noted that staff has been looking at high- deductible health insurance plans that could be coordinated with a health savings account. This is likely an option that will be presented for the 2008 renewal, providing employees the option of a standard HMO plan or the high deductible plan. These high deductible plans are moving the health insurance industry toward consumer-driven health care. The Administrator reported that the City has done a good job in providing very good health coverage to employees at the best pricing possible. Other options are continually explored, including such things as joining the County's health insurance group. However, the City has been able to provide better coverage at lower rates. Mr. Blesener introduced the following resolution and moved its adoption: 16