05/27/1981 - City Council Special NOTICE
SPECIAL CITY COUNCIL
MEETING
Please be advised that a special meeting of the Eagan City Council is
scheduled for Wednesday, May 27, 1981, at 6:50 p.m. at the Eagan City
Hall.
AGENDA
1. Health, Life & Disability Insurance Bids
2. Sign Committee
3. Other
MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: MAY 26, 1981
SUBJECT: SPECIAL CITY COUNCIL MEETING
A special City Council meeting is scheduled for 6:50 p.m. May 27, 1981,
for the purpose of considering a bid award for the hospitalization, medical
and major medical insurance, income loss coverage, group life insurance
and accidental death and dismemberment coverage. As you recall, the
aforementioned insurance coverage with Mutual Service Life Insurance Com-
pany was increased by approximately 35%, and, due to a legislative re-
quirement, the City bid the insurance package. There were nine (9) pro-
spective bidders and only one bid was received, from Blue Cross and Blue
Shield of Minnesota. The bid received from Blue Cross and Blue Shield
is slightly lower than the rate proposed by Mutual Service Life Insurance
Company.
There are two major concerns regarding a change in the insurance program:
1. Whether the benefits are consistent between Mutual Service Insurance
Company and Blue Cross and Blue Shield of Minnesota, and
2. The experience with Mutual Service Life Insurance Company has
been good and the level of premiums with the experience rating
that has been established has been excellent for a number of years.
Whether Blue Cross and Blue Shield of Minnesota will offer a lower
bid in an effort to buy the contract business and then up the
premium cost substantially each year to , follow is a serious ques-
tion in the minds of the Director of Finance and City Administrator.
It was not feasible to copy all the information supplied by Blue Cross and
Blue Shield, and, therefore, the official bid copy that was received by
the City has been provided to Councilmember Smith who has acted as the
City Council's expert in this particular area and he will provide a review
tomorrow evening. The Director of Finance and City Administrator are
meeting with our insurance representative, Mr. Ery Helmkin, on May 27,
1981, to further analyze the Blue Cross and Blue Shield of Minnesota pro-
posal in a comparison with Mutual Service Life Insurance and a recom-
mendation for bid award will be made at the meeting tomorrow evening
by the City Administrator.
rka*06 1, A
City Administrator