09-08-2015 ERMU MIN - Laserfiche WebLink

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ancillary, and health insurance renewals; and HSA employer contributions. Theresa Slominski gave a verbal update on the insurance renewals that were discussed. Theresa Slominski explained that we currently have both our ancillary and dental insurance coverage through Principal who we've been using for the past three years. After going out for bids for 2016, we've identified that we would recognize a significant savings if we were to switch over to a three year contract with Assurant; who has very similar coverage, and who we were with prior to switching over to Principal. There was further discussion. Theresa Slominski presented the health insurance renewal, which had an 8.3% increase for our plan. She explained that we participate in an insurance pool with Resource Training & Solutions, and the range of renewals for their clients came in between -3%to 19.9%. Based on this reasonable renewal rate, staff would recommend staying with our current plan. Theresa Slominski went over the 2016 HSA limits and deductibles. Currently the employer is contributing$1,985 a year towards the family plans and $650 a year towards the individual plans. John Dietz added that we currently have 13 people on the co-pay plan and 20 people that have migrated over to the HSA plan. He was in favor of keeping the company contribution to the HSA plan, and reevaluating it on a year to year basis. There was further discussion on our current co-pay insurance plan that could potentially be subject to a"Cadillac Tax". Daryl Thompson made a motion to switch our 2016 ancillary services and dental insurance from Principal to Assurant; to approve the 2016 ancillary services and dental insurance from Assurant; to approve the 2016 HSA insurance plan employer contribution of$1,985 for family and $650 for single; and to approve the Blue Cross Blue Shield Health insurance Plan with the 8.3% increase. Al Nadeau seconded the motion. Motion carried 3-0. 5.6 Expansion of the Elk River Municipal Utilities Board of Commissioners Troy Adams shared that when the territory acquisition discussions began a few years ago, there was discussion on expanding the commission to provide better representation of the growing customer base, and based on the newly acquired territory and normal growth, ERMU will likely experience a 20%growth over the next five years. Troy explained the steps involved to expand the utility commission from 3 to 5 members. There was further discussion.The Commission was in favor of expanding the commission membership.John Dietz suggested that before we request council action, we should bring it to a city council workshop for discussion to help determine if we have council support and to get their opinion on two city council members serving on the commission board versus one city council member. The commission directed staff to prepare a memo on the expansion and submit it to the city for discussion at an upcoming workshop. Page 6 Regular meeting of the Elk River Municipal Utilities Commission September 8,2015