07-10-1989 CC MIN - Laserfiche WebLink

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Page 3 City Council Minutes July 10. 1989 e Mr. Kreger then suggested the City determine the need and use for the tax before increasing the fee. Councilmember Kropuenske stated that the funds were needed for street replacement due to the damage caused by the garbage trucks. Mr. Kreger stated that the County is not increasing the Landfill Fee until September 1 and requested that the City do the same so that he would have adequate time to notify the garbage haulers. Mayor Tralle questioned where the funds go. Lori Johnson. Finance Director. responded that currently $.10 of the fee is credited to the Street Improvement Reserve Fund and the remaining $.25 goes to the Landfill Fund. Mayor Tralle further stated that he would like to see the extra $.65 go into a separate fund and possibly be used for recycling. Mr. Kreger then questioned what the conversion ratio would be from weight to cubic yards. Steve Rohlf. Building and Zoning Administrator stated that he could offer a conversion formula at the next Council meeting. Mayor Tralle suggested that the item be tabled until staff could research the weight versus cubic yard issue. the effective date. and the ordinance language regarding the funds going into the General Fund. COUNCILMEMBER HOLMGREN MOVED TO TABLE THIS ITEM UNI'IL STAFF RESOLVES THE QUESTIONS ABOUT THE FUNDS. THE EFFECTIVE DATE. AND THE WEIGHT VERSUS CUBIC YARD MEASUREMENT. COUNCILMEMBER KROPUENSKE SECONDED THE MO'l'ION. THE MOTION CARRIED 5-0. e 7. Consider Employee Group Health Insurance Mayor Tralle briefly stated that the City is considering changing insurance carriers. Finance Director. Lori Johnson. further stated that due to a 35% increase in premiums with our current carrier. Blue Cross and Blue Shield. the City had bid out group health insurance and had received seven proposals. She further noted that the staff was recommending the Physicians Health Plan (PHP) proposal be accepted as PHP's policy is very similar to that of Blue Cross and Blue Shield. but at a much lower premium. She then introduced Mr. Rick Nelson of PHP and Mr. Barry Rosenberg of Allied Group Insurance who had been working with the City on the group health insurance proposals. Mr. Rosenberg went over the pluses and minuses of the various policies and concurred that PHP was the best option for the City at this time. Mr. Nelson of PHP further explained the PHP plan and noted that their brochure had contained inaccurate information regarding the co-pay for prescriptions. That amount should be $7.00 and not $5.50 as stated in their bid document. Councilmember Schuldt stated that the County has PHP and they have had no problems with PHP in this area. e Mayor Tralle questioned the differences between the two proposals received from Blue Cross and Blue Shield. Mr. Rosenberg explained that the only difference was the co-pay amount and the provider network. The Flexible Benefit Plan was then discussed. Lori Johnson explained the positives of employees having a Flexible Benefit Plan and that it would enable the City to keep its insurance costs within reason allowing the employees to tailor an insurance package to their needs.