11-14-05 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORKSESSION MINUTES October 17, 2005 4 Councilmember Grant asked why the City was charged $853.00 recently for animal control services. Mr. Ruzikca noted that the expense was caused by the increased numbers of stray cats that have been picked up recently in the City. All animals must be held for a minimum of six days in a shelter. Councilmember Holden asked if Animal Control Services, Inc. dealt with wildlife problems. Rick Ruzicka said that he considers wild animal issues a home owner problem. If the animal bites an individual, then it would become an animal control issue. Members of the City Council agreed to review a leash law for cats and a no feeding of the wildlife ordinance in the near future. Financial Concepts Discussion Regarding Employee Insurance Benefits Ms. Shari Woodarck (Financial Concepts, Inc.) was in attendance to review to the City's current and proposed employee insurance benefit packages with the City Council. In May, City staff requested the assistance of Financial Concepts in reviewing the City's current short term disability, long term disability, group life insurance, and supplemental life insurance policies. After completing there review of our existing policies, Financial Concepts and City staff noticed that the City had overlapping short term disability and long term disability insurance policies. The City's current short term disability policy is a weekly benefit of $200.00 per week for a period of 26 weeks. The City's long term disability policy is a benefit that pays 60% of a disabled employee's salary. The long term disability insurance would be enacted after three months. Financial Concepts and City staff have been reviewing different short term disability plan options that are available to the City in order to eliminate this overlap in disability coverage. The intent of this change is to review potential ways in which the City could possibly maintain or reduce premium costs. Financial Concepts, Inc. has been working closely with our current short term and long term disability policy holder and was able to obtain a price quote for a 13 week short term disability benefit with a maximum weekly benefit of$1,000. The projected cost for this increased benefit would be $147.00 per month ($1,764.00 annually). At this time, the City currently pays $220.50 per month ($2646.00 annual fee) for a 26 week short term disability insurance benefit. Through the elimination of the overlap in the short term and long term disability policies, the City will be able to save approximately$882.00 per year in premium costs and increase the value of the short term disability benefit to staff members. Representatives from Financial Concepts, Inc. and City staff members have also been reviewing the renewal rates for the City's employee health insurance through the Lakes Country Service Cooperative. According to the 2006 rate proposals, the City would experience a 20% increase in premiums for 2006 if we continued with our current health insurance plan. In order to offset the 20% rate increase, City staff is considering a change to a less inexpensive plan. The recommended plan would result in a maximum out of pocket expense of$1,000 per person and $2,000 per family. The primary difference between the City's existing plan and the proposed 4