Pittsburg city employees will pay a bit more for health insurance next year.
During Tuesday’s regular Pittsburg City Commission meeting, commissioners approved a 10 percent increase in the premiums withheld from the employees’ bi-weekly pay checks. Rates paid by the city also will increase by 20 percent.
In a memo regarding the insurance issue, Director of Finance and Administration John Garrison said the new rates should provide the city with “sufficient revenues” to fund the maximum liability cost of $2.046 million in 2010. The maximum liability cost in 2009 was just over $1.937 million. Those costs include insurance premium rates for health, dental and medication, as well as rates for general operating expenses, city aggregate stop-loss and individual stop-loss.
“Costs continue to increase and so do the costs to employees and the city,” Garrison said.
A 10 percent increase for city employees means that the cost for a single plan for medical coverage and medication goes from $28.52 bi-weekly to $31.37. Costs for a family plan jump from $119.49 to $131.44. For a single dental plan, the price goes from $6.35 to $6.99. A family dental plan now costs $39.27, up from $35.70.
A 20 percent increase in what the city pays takes its costs for a single health and medication plan to $148.49, up from $123.74. The price for a family plan jumps from $273.40 to $328.08. A single dental plan now costs the city $43.58, up from $36.32, while the cost for a family dental plan jumps from $84.15 to $100.98.
Based on the increased rates, the city estimates a revenue total of $2.054 million, with estimated costs being $2.046 million. The estimated cash carry-over at the end of 2010 is $7,553.
City staff began an investigation for the best health insurance plan for city employees months ago. Based on the findings, Garrison recommended that the city renew its current contract with Blue Cross Blue Shield of Kansas. The commission approved the request.
Garrison said the current state of the health care industry in the United States made renewing the current contract especially appealing.
“No one is happy with the ever-increasing costs of health insurance,” Garrison said, “and the future of health care in the United States is being debated in Washington D.C. The entire health care industry may be turned upside down. Having the ability to continue our current benefits with modest increases in premiums to both employees and the city, and with our eyes looking toward the future, I believe it is wise to continue with our current program with BC/BS for 2010.”
Also during Tuesday’s meeting, the commission gave authorization to city staff to submit an updated Airport Capital Improvement Plan for Atkinson Municipal Airport. The ACIP will be sent to the Federal Aviation Administration for possible future funding.
Each year, the FAA requests airport managers to submit ACIP data sheets listing proposed Capital Improvements Projects and their priority. This information is used to get congressional appropriation of funds and plan for future years. The City needs to submit the ACIP to the FAA by Feb. 12.
Projects being requested include the same projects approved by the commission last year, with the exception of the environmental study. They include the proposed parallel taxiway and other improvements included in the Airport Layout Plan.
Four commissioners were present at Tuesday’s meeting. Mayor Rudy Draper was absent. In other news, commissioners:
• Received a first reading of Ordinance No. S-982, fixing the salary and compensation of the officers and employees of the City of Pittsburg. Garrison said no raises were budgeted, because of the tough economic times. Only one change is requested from the previous year, which is that the new position of Accounting Manager has been added to Pay Grade 12E. That pay level has a minimum salary of $40,687 and maximum salary of $63,960.
• Approved applications for renewal of licenses to retail cereal malt
beverages for the year 2010 for the following: Four Oaks; Pump N Pete's, 4002 North Broadway; Pump N Pete's, 1711 North Broadway; Pump N Pete's, 1307 South Broadway; Bo's One Stop, Inc., 1116 West Fourth Street; Rhodes Grocery, Inc., 310 East Centennial; Sunshine Energy, 2401 South Rouse; Tyrell's Service, Inc, 1117 West Fourth Street; Sodexo America, LLC, 302 East Cleveland; Wal-Mart, 2710 North Broadway; Pizza Hut, 102 East Quincy; Kabredlo's, 612 South Broadway; Kabredlo's, 434 West Fourth Street; Castagno Mini Mart, 302 West Fourth Street; Commodore Barry Knights of Columbus, 718 North Broadway; Snak Atak #5, 1101 East Fourth Street; and Dillons, 2600 North Broadway.
• Approved the low bid submitted by Weir-based Bean's Towing and Auto Body to provide certain towing services for the City and the Police Department.
• Approved a three-year elevator maintenance contract for the city’s five passenger elevators, one freight elevator, and one stage lift to KONE, Inc., of Springfield, Mo., on the basis of their low bid meeting specifications of $13,188.00 per year, and authorization for the Mayor to sign the contract on behalf of the city.
• Approved an agreement with Vaisala, Inc., of Minneapolis, Minn., to provide AviMet Data Link services to Atkinson Municipal Airport, and authorization for the mayor to sign the agreement pending review by the city attorney.
• Approved the Appropriation Ordinance for the period ending December 9, 2009, subject to the release of HUD expenditures when funds are received.
PITTSBURG —
