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City Council Minutes 11/24/2009

M E M O R A N D U M                    City of Salem 101 S. Broadway, Salem, IL  62881
Jane Marshall, CMC                                                       Phone: 618 548-2222, ext. 20
City Clerk                                                                e-mail:
Date:  November 20, 2009
TO:     WJBD Radio
        Salem Times Commoner
        Centralia Sentinel

Cc:  Mayor and City Council
       City Manager

Amended Copy

PURSUANT TO THE OPEN MEETINGS ACT, notice is hereby given that the Salem City Council will meet at 6:00 p.m., Tuesday, November 24, 2009 in the Council Chambers of Salem City Hall, 101 South Broadway Salem, Illinois, for the following purpose:  
1.      Approve Renewal of Property Casualty and Workers Compensation Insurance
2.      Employee Health Insurance

Jane Marshall
City Clerk

Dated this 20th day of November, 2009          

NOVEMBER 24, 2009

The Salem City Council met on Tuesday, November 24, 2009, at the hour of 6:00 p.m. in the Council Chambers of Salem City Hall, 101 S. Broadway Salem, IL  62881 for the purpose of reviewing and taking action on bid proposals for property casualty and workers compensation insurance and also to review employee health insurance.  The meeting was called to order by Mayor Leonard E. Ferguson.
Council Members present upon roll call:
        Councilman Kip Meador
        Councilman Steve Huddlestun
        Councilman David Black
        Mayor Leonard E. Ferguson
Absent:  Councilman Tom Carr
Others Present:
        City Manager Thomas F. Christie
        City Attorney Michael Jones
        City Clerk Jane Marshall
        Finance Director Marilyn Shook
Several employees representing Public Works Department and Police Department
Mike Masterson, International Union of Operating Engineers Representative       
        The Media – Salem Times Commoner and WJBD Radio
        Members of the Public

1.  Property Casualty and Worker’s Compensation Insurance
City Manager Christie reported that three proposals were received before the bid opening time of 2:00 p.m. on November 20. – Two proposals from Kane Insurance Agency - Illinois County Risk Management Trust $376,060.00 and Traveler’s Insurance $470,668.00; and a proposal from The Daniel and Henry Company $417,664.00.   One was received late at 2:20 p.m. and was not considered.  City Manager Christie recommended acceptance of the low bid from a local broker, Kane Insurance Agency, Inc. for a total amount of $376,060.00 for both Worker’s Compensation and Property Casualty Insurance.  
Mr. Bob Kane explained the costs are lower than past years because of past experience and cooperation with the City Manager, Public Works Department and Department Heads in lost control efforts.  
Mr. Kane commented that his company also submitted proposal for Pollution Coverage and asked for an opportunity to discuss this coverage with Council in January.  

Councilman Black moved and Councilman Huddlestun seconded the motion to award the contract for Property Casualty Insurance and Workers Compensation coverage to Kane Insurance Agency/ Illinois County Risk Management Trust for a total annual premium of $376,060.00.  Roll call vote.  AYES:  Councilmen Meador, Huddlestun, Black, and Mayor Ferguson.  NAYS:  None.  Motion carried.  

2.  Employee Health Insurance
City Manager Christie explained that some members felt it would be good to have opportunity for Council and employees to ask questions regarding self-funding health insurance.  Mr. David Andreas, representing Mutual Medical Plans, Inc. was asked to comment.  He answered questions regarding HIPAA, (Federal law known as the Health Insurance Portability and Accountability Act of 1996) explaining that although there are seven HIPAA options the City can “opt out” of - there are no changes in the privacy option.  He suggested the city opt out of all seven but, write the plan to abide by the last four options listed.  The benefit will be better cost management.  City Manager Christie explained the plan is focused exclusively on new employees and will not change the benefits for present employees, indicating it may be better; the only changes are in the way we administer the plan.  

Mr. Mike Masterson, IUOE Union Representative discussed several concerns of the employees and stressed this should be discussed with the Employee Health Insurance Committee before it comes to a vote.   City Manager Christie explained why it was done differently and stated that there are additional ideas that could be added to this plan and it will be brought to the employees first, and after they have had time to digest it, then it will go to the City Council.  

City Attorney Jones commented he has reviewed the plan and thinks the City Council made the right decision in accepting it.  

There being no further comments, at 7:42 p.m., Councilman Black moved and Councilman Meador seconded the motion to adjourn the meeting.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, and Meador.  NAYS:  None.  Motion carried.   

Jane Marshall, CMC
City Clerk

Approved as written by City Council on December 7, 2009.