Laserfiche WebLink
Of <br />(CHI UN <br />W c Ry that 4i?rk;s t(w you <br />Memo <br />To: Mayor Dave Jacobson <br />Councilmember Gina Bauman <br />Councilmember Mary Burg <br />Councilmember Pain Jacobson <br />Councilmember Brian Strub <br />From: Dean R. Lotter, City Manager <br />Subject: Health Insurance and Public 'Works /Community <br />Development Reorganization <br />Date: November 21, 2014 <br />Staff has been evaluating the organizational structure and service delivery of New <br />Brighton over the past year. As City Manager my desire is to reorganize the current <br />staffing structure in a way that will maximize and economize on the existing dollars in <br />the 2015 and beyond Public Works and Community Development budgets, thereby <br />reallocating these funds to help offset 2015 health insurance increases. Some background <br />is necessary to understand our current circumstances, a summary of intended changes <br />will be provided and additional substantiation will be provided for the desired changes <br />and recommendations. <br />Background <br />The City of New Brighton joined the National Joint Powers Alliance (NJPA) in 2009 to <br />maximize and economize health insurance when going out to bid for this benefit. NJPA <br />purchases health insurance as a cooperative and uses the buying power of multiple <br />agencies to drive down costs or attempt at least to mitigate drastic increases.The City has <br />experienced good results in joining with NJPA but, unfortunately, the City has <br />experienced very high catastrophic claims over the last 4 years. These catastrophic claims <br />cost our insurance provider more than they receive in insurance premiums from New <br />Brighton for four straight years. In last year's claim period, New Brighton had 7 claims <br />which totaled nearly $525,000 in costs. The average claim for an employee is less than <br />