City Council Discusses Health Insurance

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Published on March 16 2016 10:50 am
Last Updated on March 16 2016 10:51 am
Written by Greg Sapp

Effingham City Council members Tuesday heard a presentation on health insurance coverage for city workers.

Gregg Aleman of Arthur J. Gallagher Company joined City Safety and Insurance Supervisor Dan Bledsoe to recommend the City renew its group health insurance plans with BlueCross BlueShield of Illinois' self-funded Traditional PPO and Health Savings Account. The recommended renewal would be through the Gallagher Company and the Intergovernmental Personnel Benefit Cooperative from July 1, 2016 thru June 30, 2017.

The $1,915,752 annual premium represents an increase of $337,820 or 21.4%.

A separate recommendation is to renew with the same parties for May and June of 2016 at a monthly renewal premium of $168,543.46, which is a $37,049.13 increase, or 28.18%.

A key to the proposals is a limit on any claim that would have to be handled by the City of $35,000. Above that amout, the claim will be paid by those in the pool of insureds of which the City would be a member. Currently, the City has to handle any claim up to $70,000.

A vote on the proposals is expected at the Council's April 5 meeting.

City Council members approved two contracts with employee union groups. The agreement with the Fraternal Order of Police Lodge 209 covers the city police department's sworn police officers. The officers approved the agreement unanimously. The agreement includes a 3% cost of living increase for each of the three years covered. It increases the employee's health insurance contribution cap by 9% for each year of the agreement, and creates a Voluntary Employees Beneficiary Association Plan for employees who desire to participate. Police sergeants and corporals also got a raise in conjunction with the agreement.

The other agreement is with Local 26 of the Teamsters, representing members of the City's public works staff. The employees approved the agreement 20-3. The agreement authorizes a 3% cost of living increase for each of the three years covered.

Both of the agreements are effective May 1, the start of the new City fiscal year.

The Council amended the liquor ordinance, adding a Class BP (Brew Pub License - Consumption Sales and Package Sales) and a BP/E (Brew Pub/Extended Premises License - Consumption Sales and Package Sales), which would enable an interested business owner to open a micro-brewery in Effingham. A change was also approved in the Beer and Wine Permit language that allows liquor license holders within the state of Illinois to obtain a permit. That move is to open public festivals to wineries from throughout the state.

Council members approved amendments to agreements with EJ Water Cooperative and Lake Sara Area Water Cooperative on areas of influence maps, and also adopted an ADA Transition Plan for public rights of way and sidewalks in the city. The plan outlines each sidewalk and right of way and any planned improvements where warranted. The Council annexed the property of Brent and Kera Emmerich on Woodbird Drive into the city, and discussed but did not vote on plats, road and easement vacations, and rezonings of property for the Truck Centers, Incorporated project and the expansion of the Meyer Oil Company location on South Banker to accommodate diesel fuel islands.

The Council amended the service rules and regulations for users of water services provided by the city to standardize the payment period for utility bills, and discussed sanitary sewer improvements planned in conjunction with the reconstruction of South 3rd Street from Fayette Avenue south across the CSX Railroad crossing.

City Administrator Jim Arndt reminded that the Council and City staffers will hold a budget workshop on March 24, and Economic Development Administrator Todd Hull reported that work has begun on the Chipotle Mexican Grill on Keller Drive with the project expected to take four months to complete.

City Commissioners Merv Gillenwater and Kevin Esker were not present for the meeting.