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March 2, 2011 Work Meeting Agenda & Minutes

LaVerkin City Council Work Meeting Agenda
Wednesday, March 2, 2011 5:00 p.m.
111 S. Main, LaVerkin, Utah
                                                                           
 
Work Meeting Preceding Regular 6:00 p.m. Meeting
 
  • 1. Health insurance discussion
  • 2. 2012 Budget discussion and direction
Adjourn to Regular Meeting
 
 
In compliance with the American with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify Kyle Gubler, City Recorder, (435) 635-2581, at least 48 hours in advance.
 
 
Certificate of Posting
The undersigned City Recorder does hereby certify that the agenda was sent to each member of the governing body, sent to the Spectrum newspaper, posted on the State website at http://pmn.utah.gov, posted on the LaVerkin City website at www.laverkin.org
and in the following public places within LaVerkin City limits on this February 25, 2011
These public places being: 1) LaVerkin City office building 111 S. Main; 2) LaVerkin City office building 435 N. Main;
Kyle Gubler
City Recorder
LaVerkin City Council Work Meeting Minutes
Wednesday, March 2, 2011 5:00 p.m.
111 S. Main, LaVerkin, Utah
                                                                      
 
Present:  Mayor Karl Wilson; Council-members: Phil Jensen, Hugh Howard, Doug Beecher, Ray Justice; Staff:  Kyle Gubler, Troylinn Benson, Chief Lloyd Watkins, Derek Imlay, Katie Wilson; Public:  Bill Phelps, Blair Gubler
 
  • 1. Health insurance discussion
 
In the tentative budget there is a 25% increase in health insurance.  Mayor Wilson invited Bill Phelps (Spectra Management) to give a presentation.  Bill prepared a slide show presentation to show what other employers are face with and to show the Council some statistics.
 
The Federal Health Care Law impacts employers.  A big portion started on September 23, 2010 with the new renewals.  La Verkin will have changes July 1, 2011.
  • a. Pre-existing condition exclusions will be removed for patients under 19 years old.
  • b. Dependents will be covered up to age 26 regardless of marital status.
  • c. 100% coverage for preventative care
  • d. Lifetime and certain restricted annual coverage limits will be removed on "essential health benefits".
  • e. OTC drugs will no longer be reimbursable under an FSA or HAS without a doctor's prescription.
 
Bill showed some charts and graphs and explained the statistics on them.  He explained that more employers are looking at High Deductible Health Plans (HDHP) and admitted that it is a drastic plan design.  Employers have "hit a wall" and passed the costs to the employees.
 
Health Savings Account (HSA) has to be combined with an HDHP
  • - Go to a higher deductible
  • - Gives savings to employees
  • - Unspent money rolls year to year
  • - Over time employees have enough to cover deductible and OOP. There will be no copays but employees will be responsible for everything until the deductible is met.
 
To qualify for an HDHP:
  • a. Minimum deductible: $1200 single or $2400 family
  • b. Maximum out of pocket: $5950 single or $11900 family
  • c. Have no other unpermitted health coverage
  • d. Cannot be enrolled in Medicare
  • e. Cannot be claimed as a dependent on someone else's tax return
 
Bill gave examples of other cities that are and are not good candidates for this type of plan.  His company will break it down for the City Council when it comes time for renewal.
 
Council-member Scott Stratton entered 5:35 pm.
 
Top 5 reasons for an HSA - Qualified Plan
  • a. Save on Premiums
  • b. Substantial drop in premium trend
  • c. Earn employee goodwill and recognition value
  • d. Save for retirement
  • e. Employees drive own healthcare choices.
 
Quotes for La Verkin are still 6 weeks away and can start filling out paperwork on April 1st.  Bill stated that a 25% increase would be the worst case scenario and projected it to be closer to an 18% increase.
 
The Mayor thanked Bill for his time and excused him from having to stay for the Regular Meeting.
  
  • 2. 2012 Budget discussion and direction
 
Mayor Wilson focused the discussion on the General Fund and explained lines within that fund.  He also explained that he has moved the Building & Grounds to its own department as it will be easier to track and budget out of its own fund.
 
Discussion turned to the Highway Improvements and what it will take to finish resurfacing the roads in town.  Derek explained the type of seal for the Council members.  He also stated that 25% of the roads are beyond repair and must be fully replaced and re-asphalted. 30-40% of the roads are in good shape and this is where the money for resurfacing would go towards and not for replacing the bad roads.
 
Council-member Beecher suggested making 2 items under street repair, 1 for repair and the other for replacing.  He also questioned whether the old white church was worth the money to save.  The Mayor commented that it may cost more to demo than to fix the building.
 
Adjourn to Regular Meeting 6pm.

City Council Update

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Clear
Humidity: 24%
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Mon

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Tue

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Wed

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La Verkin City Office • 435 N. Main Street • La Verkin, Utah 84745 • General: (435)635-2581 • Police: (435)635-0427 • Fax: (435)635-2104

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