2015.10.13 CC Minutes - Laserfiche WebLink

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October 13, 2015 Page 4 of 7 Management Analyst/Human Resources Specialist Hatch indicated the Insurance Committee worked with Alliance Benefit Group (ABG) and our consultant Kevin Dulitz on these options. In order for the City to go out for bids our joint powers agreement with NJPA required notifying them by July 1 of this year. Staff worked with ABG on ensuring the proper deadlines were met for notification. ABG also prepared the request for proposals and sent them to carriers. During the process for bidding with Blue Cross Blue Shield, Medica, and Preferred One, our broker asked staff to prepare information on the number of employees we have. The health providers offering the "small group" rate have different standards based on the number of full time and the number of hours worked by part-time and seasonal employees in order to meet the requirement of fewer than 100 employees. The "small group" rates for health insurance are significantly lower than all of the bids we received. Unfortunately, the City did not qualify to receive the "small group" rates. Management Analyst/Human Resources Specialist Hatch stated the City received 4 proposals for health insurance for 2016. Proposals were received from NJPA, the South East Service Co-op, Blue Cross/Blue Shield, and Medica. Staff did discuss with NJPA the positive experience New Brighton has had with the group. The City received no bids with pricing for less than the 2015 insurance costs. The percentages above our current costs for insurance were reviewed with the Council. Staff recommended the Council approve the NJPA 2015 proposal for health insurance. Councilmember Bauman questioned why the City of New Brighton was not considered a small group by NJPA. Management Analyst/Human Resources Specialist Hatch indicated NJPA considers small groups to be those with less than 100 employees. He commented that once seasonal employees were included in the City's numbers, New Brighton was over this limit Motion by Councilmember Burg, seconded by Councilmember Jacobsen to approve the National Joint Powers Alliance (NJPA) 2016 Proposal for Health Insurance. 5 Ayes, 0 Nays -Motion Carried 3. Consideration of Lease Agreements with Police Associations. City Manager Lotter indicated Management Analyst/Human Resources Specialist Hatch would be presenting this item to the Council. Management Analyst/Human Resources Specialist Hatch reported City staff has been working with the Minnesota Chiefs of Police Association (MCPA) and the Upper Midwest Community Policing Institute (UMCPI) on lease agreements for the lower level of City Hall. These groups are interested in moving to New Brighton if the lower level office space met their needs. Staff has worked with these groups on a design of the lower level of City Hall that would meet their needs. Both of the groups are non -profits and obviously have many of the same goals and priorities as the City of New Brighton. A partnership with these groups would be a point of pride for our organization. MCPA and UMCPI hold many trainings and board meetings during the year. The members of these organizations would be visiting our community. The details of the leases are slightly different because both groups have different funding structures. MCPA is financially sound and is interested in a 10 -year lease. MCPA staff will be presenting the lease and terms to their board on October 15, 2015 and it is believed they will agree to the lease. UMCPI has agreed to the lease terms as long as MCPA is part of the agreement. UMCPI is highly dependent on grants and are interested in a 5 -year lease. UMCPI would be interested in continuing the lease after the 5 -year term if their financial situation is secure at that time. The City would collect $3,000.00 per month total between the two organizations. The City would secure $250,200.00 of non -property tax revenue with the lease agreements. 3. Consideration of Leage Agreements with Pofioe Associafions.