2.2 ERMUSR 11-15-2016 - Laserfiche WebLink

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4.2 Wage & Benefits Committee Update—Health Insurance The Wage & Benefits Committee (W&BC) had met just prior to the Commission meeting. John Dietz distributed a recap of the 2017 Health Insurance Options that he had compiled and went over the information. The W&BC recommendation was the last option; the Aware Gold plan with a decrease in coverage to 80% after deductible, and the HSA plan with no change in coverage from 2016. The W&BC also recommended approval of a health insurance opt-out program of$300 per month; contingent upon legal counsel approval. John explained that this would be on a trial basis for 2017 to be reevaluated during next year's insurance renewal to determine if it's something we want to continue to offer. John went over some of the benefits of the HSA plan including the dollar amounts the company contributes towards the deductibles on the first of the year. He also made note that a relatively small amount would need to come out of an employee's pocket before meeting the deductible at which time everything would be covered at 100%. There was discussion. During discussion of the recommended renewal option, Troy Adams noted that the 13.3% was the overall increase to the company, and that the employees on the HSA would see a 19% increase in premiums, while the employees on the Aware Gold would see a 6.9% increase in premiums. John Dietz said that is not the way he understood it, and asked if there was a way to blend it so that all employees would see a 13.3% increase. There was discussion. Dick Wagner, who is currently on the Aware Gold plan, questioned why he should have to help cover part of the other plans increased premiums when he would also be experiencing additional expense due to a reduction of benefits. After further discussion, Commission consensus was to approve the renewal option with the 19%premium increase to the HSA plan, and the 6.9%premium increase to the Aware Gold plan. Al Nadeau made a motion to approve the insurance option that offers our current Aware Gold Plan with a decrease in coverage to 80% after deductible, the HSA Plan with no changes in coverage from 2016, and to approve a health insurance opt-out program of$300 per month for a one year trial period. Daryl Thompson seconded the motion. Motion carried 3-0. 4.3 Sale of Security Accounts and Security Alarm Inventory Mike O'Neill stated that on September 30, 2016 Elk River Municipal Utilities (ERMU) closed on the sale of the security accounts and security alarm inventory with Wright Hennepin(WH) Security for a purchase price of$347,251.96. Mike wanted the Commission to know that a lot of hard work went into making this come to fruition, and gave kudos to all who were involved. In the end it's a win-win for both companies. With the sale, ERMU has been able to establish a relationship with WH that otherwise may not have taken place. There was discussion on the timing of the sale of the business line and Page 4 Regular Meeting of the Elk River Municipal Utilities Commission October 11,2016 2f)