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City of Willcox contracts renewed
By Carol Broeder/Arizona Range News
The Willcox City Council has dealt with several "housekeeping" matters during its recent meetings.
With the fiscal year coming to a close, the council addressed contract renewals for various services during its June meetings.
City Council unanimously approved a contract with Health Net insurance company for employee medical insurance benefits for the fiscal year 2009-10.
The city has had coverage with this carrier since July 1, 2007, said the city's Finance Director Ruth Graham.
The initial fiscal year 2010 renewal rates quoted reflected an 18-percent increase in premium costs, she said.
"Under the recommended HMO and PPO policies through Health Net, the cost will be nearly the same as our current premiums, yet will continue to provide a good range of benefits although the coverage," Graham said in her June 11 letter to the council.
"The city also has the opportunity to add additional benefits in the form of a health reimbursement arrangement plan," she said.
This plan "will allow the city to protect its employees from higher deductible costs," said Graham.
"Our current HMO policy has no deductible, while the new policy will have a $2,500 deductible."
City staff proposed that the city maintain a reserve account to reimburse employees and/or their dependents for up to $2,000 of the deductible cost if claims are made, said Graham, adding that the first $500 would be the employee's responsibility.
"The Flexible Spending Account (FSA) is funded with employee contributions," said Graham, explaining that each employee can elect an amount to set aside tax-free to be used for medical expenses, including deductibles, dental, eye, chiropractic, prescription drugs, or drug co-payments, or other types of allowable expenses under IRS regulations.
"The COBRA administration plan will be an efficient way for the city to meet its COBRA requirements under regulations that change rapidly," she said.
The total cost to the city will be $437,755; consisting of a premium expense of $393,348, plus a reserve of $44,407.
The city has budgeted the sum of $44,407 to fund the Health Reimbursement Arrangement (HRA) pool for reimbursement to employees for out of pocket deductible expenses, said Graham, adding, "any monies not used for such reimbursement will continue to be the city's monies."
Plan administration fees for the HRA, the FSA, and the COBRA administration were addressed in a separate agenda item at the same meeting.
The council also unanimously approved a contract with the Employee Services Group (ESG) to administer the employee benefit plans offered by the city.
The cost to the city will be $9,102.
City Council also voted unanimously to renew its contract with the Arizona Range News, which Graham described as "a newspaper of general circulation" in the city, and a "sole source provider of publication services in a local newspaper."
Pursuant to the city's procurement code, "a contract may be awarded without competition when the city manager determines in writing, after conducting a good faith review of available sources, that there is only one source for the required material, services, or construction item," she said.
"We use display advertising in the newspaper to provide information to the public throughout the year, including the monthly newsletter, CDBG advertising, shutoff notices, utility notices and other advertising," Graham said in her May 29 letter to the council.
The fiscal year 2010 renewal involves two contracts beginning June 24, 2009, and expiring June 23, 2010.
One advertising agreement is for weekly display advertising.
In fiscal year 2009, "our rate was $5.65 per column inch (pci)," said Graham, adding that for fiscal year 2010, "the rates are computed by size and will vary."
The advertisements will be smaller while the overall cost to the city will be about the same, she told the council.
The other advertising agreement is for legal advertising at the rate of $6 pci, which is the same rate as it was for fiscal year 2009.
While the cost varies, the anticipated yearly cost to the city will be from $21,000 to $25,000, Graham said.
In other matters, the council voted unanimously to renew the city's basic service contract with the Southeastern Arizona Governments Organization (SEAGO), a regional planning group that offers government support.
"The city's share of the total assessment is $1,516.51," said McCourt, adding that it is down slightly from last year.
"This is not the city's membership dues," he explained.
SEAGO provides services including lobbying and educational services, and runs the Mayor/Manager's meetings with others in the county.
City Council also voted unanimously to contract, for less than $200, with Lim-Cum, Inc., for archival storage, retrieval and security services.
"The city is required to maintain permanent public records and to provide for its storage, for daily use and archival, retrieval of records upon request by staff, another government entity or the public, and its security against the elements or natural disasters," said City Clerk Cristina Whelan.
The archival storage, retrieval, and security must meet state statute requirements, she explained in her June 10 letter to the council.
The Phoenix-based firm "has provided microfiche services to the city for numerous years," said Whelan.
The agreement is for a 12-month period, and may be extended for an additional 12 months, unless terminated by either party after giving 30-days written notice, she said.
With the fiscal year coming to a close, the council addressed contract renewals for various services during its June meetings.
City Council unanimously approved a contract with Health Net insurance company for employee medical insurance benefits for the fiscal year 2009-10.
The city has had coverage with this carrier since July 1, 2007, said the city's Finance Director Ruth Graham.
The initial fiscal year 2010 renewal rates quoted reflected an 18-percent increase in premium costs, she said.
"Under the recommended HMO and PPO policies through Health Net, the cost will be nearly the same as our current premiums, yet will continue to provide a good range of benefits although the coverage," Graham said in her June 11 letter to the council.
"The city also has the opportunity to add additional benefits in the form of a health reimbursement arrangement plan," she said.
This plan "will allow the city to protect its employees from higher deductible costs," said Graham.
"Our current HMO policy has no deductible, while the new policy will have a $2,500 deductible."
City staff proposed that the city maintain a reserve account to reimburse employees and/or their dependents for up to $2,000 of the deductible cost if claims are made, said Graham, adding that the first $500 would be the employee's responsibility.
"The Flexible Spending Account (FSA) is funded with employee contributions," said Graham, explaining that each employee can elect an amount to set aside tax-free to be used for medical expenses, including deductibles, dental, eye, chiropractic, prescription drugs, or drug co-payments, or other types of allowable expenses under IRS regulations.
"The COBRA administration plan will be an efficient way for the city to meet its COBRA requirements under regulations that change rapidly," she said.
The total cost to the city will be $437,755; consisting of a premium expense of $393,348, plus a reserve of $44,407.
The city has budgeted the sum of $44,407 to fund the Health Reimbursement Arrangement (HRA) pool for reimbursement to employees for out of pocket deductible expenses, said Graham, adding, "any monies not used for such reimbursement will continue to be the city's monies."
Plan administration fees for the HRA, the FSA, and the COBRA administration were addressed in a separate agenda item at the same meeting.
The council also unanimously approved a contract with the Employee Services Group (ESG) to administer the employee benefit plans offered by the city.
The cost to the city will be $9,102.
City Council also voted unanimously to renew its contract with the Arizona Range News, which Graham described as "a newspaper of general circulation" in the city, and a "sole source provider of publication services in a local newspaper."
Pursuant to the city's procurement code, "a contract may be awarded without competition when the city manager determines in writing, after conducting a good faith review of available sources, that there is only one source for the required material, services, or construction item," she said.
"We use display advertising in the newspaper to provide information to the public throughout the year, including the monthly newsletter, CDBG advertising, shutoff notices, utility notices and other advertising," Graham said in her May 29 letter to the council.
The fiscal year 2010 renewal involves two contracts beginning June 24, 2009, and expiring June 23, 2010.
One advertising agreement is for weekly display advertising.
In fiscal year 2009, "our rate was $5.65 per column inch (pci)," said Graham, adding that for fiscal year 2010, "the rates are computed by size and will vary."
The advertisements will be smaller while the overall cost to the city will be about the same, she told the council.
The other advertising agreement is for legal advertising at the rate of $6 pci, which is the same rate as it was for fiscal year 2009.
While the cost varies, the anticipated yearly cost to the city will be from $21,000 to $25,000, Graham said.
In other matters, the council voted unanimously to renew the city's basic service contract with the Southeastern Arizona Governments Organization (SEAGO), a regional planning group that offers government support.
"The city's share of the total assessment is $1,516.51," said McCourt, adding that it is down slightly from last year.
"This is not the city's membership dues," he explained.
SEAGO provides services including lobbying and educational services, and runs the Mayor/Manager's meetings with others in the county.
City Council also voted unanimously to contract, for less than $200, with Lim-Cum, Inc., for archival storage, retrieval and security services.
"The city is required to maintain permanent public records and to provide for its storage, for daily use and archival, retrieval of records upon request by staff, another government entity or the public, and its security against the elements or natural disasters," said City Clerk Cristina Whelan.
The archival storage, retrieval, and security must meet state statute requirements, she explained in her June 10 letter to the council.
The Phoenix-based firm "has provided microfiche services to the city for numerous years," said Whelan.
The agreement is for a 12-month period, and may be extended for an additional 12 months, unless terminated by either party after giving 30-days written notice, she said.
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