CC Minutes 03/26/2007 - Laserfiche WebLink

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CASSELBERRY CITY COMMISSION March 26, 2007 - Regular Meeting Page J2 of 15 increase rate to 17.2% A similar process was followed in 006 when the proposed increase was initially 31 % and was negotiated down to 21 %. The City also elected to reduce benefits and raise co-pays of the plan to further reduce the rate to 19%. The City pays most of the cost of employee premiums while employees primarily pay for dependent premiums. It is apparent that the cost of dependent coverage is becoming unaffordable. The City plans to contract with a health insurance consultant in Fiscal Year 2008 to review the current program in hope of containing and/or reducing the cost ofthe program. The Employee Health Insurance Committee unanimously recommended approval of the renewal proposal which maintains the current level of benefits; and to increase the City contribution to employee and dependent coverage. Budget Impact: The costs associated with the health insurance renewal were anticipated and are incorporated into the Health Insurance accounts (23) for the various departments. The total cost to the City for the period of April I, 2007 through March 31, 2008 will be $1,547,243, which includes an increase of $285,103. Recommendation: The City Manager, Interim Finance Director and the Acting Human Resources Director recommended approval of the negotiated renewal and increased employer contribution. MOTION: Commissioner Hufford moved to approve the renewal of the Health Insurance Policy for City Employees with Cigna, as presented. Motion was seconded by Vice Mayor Doerner. DISCUSSION: Commissioner Miller requested the City Manager investigate whether entering into a consortium with other government entities may be a possibility to help reduce insurance costs. Motion carried unanimously by voice vote 5 - O. 13. DISCUSSION ITEMS A. MONTH OF MAY COMMISSION MEETING SCHEDULE Staff Presentation: Ms. Barbara Lipscomb, City Manager, stated the second meeting in May falls on Memorial Day this year and requested guidance from the City Commission as to whether they wised to cancel that meeting or move it to another date. Commission consensus was to move the second City Commission meeting in May to Tuesday, May 29, 2007. 14. CITY MANAGER'S REPORT Reported she recently met with Department Directors to discuss the property tax reform proposals currently being discussed by the State Legislature and has provided an update memorandum for the City Commission.