City Council
Regular MeetingIdaho Falls, ID · May 28, 2020
Minutes
May 28, 2020
The City Council of the City of Idaho Falls met in Council Work Session, Thursday, May 28, 2020, in the Council
Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 6:00 p.m.
Call to Order and Roll Call:
There were present:
Mayor Rebecca L. Noah Casper
Councilmember Michelle Ziel-Dingman (by WebEx)
Councilmember Thomas Hally (by WebEx)
Councilmember Jim Freeman (by WebEx)
Councilmember Jim Francis (by WebEx)
Councilmember Shelly Smede (by WebEx)
Councilmember John Radford (joined by WebEx at 700 p.m.)
Also present:
Chris Fredericksen, Public Works Director
Ryan Tew, Human Resources Director
Eilene Horne, Human Resources Manager
AJ Argyle, Insurance Broker
Pamela Alexander, Municipal Services Director
Mark Hagedorn, Controller
Megan Ricks, Accountant
Duane Nelson, Fire Chief (by WebEx)
Eric Day, Fire Chief (by WebEx)
Josh Roos, (by WebEx)
Ed Morgan, Civic Center for the Performing Arts Manager
Michael Kirkham, Assistant City Attorney
Kathy Hampton, City Clerk
Mayor Casper called the meeting to order at 6:02 p.m. with the following items:
Announcements, Opening Remarks:
Mayor Casper had no announcements.
Consideration of Sole Source Purchase:
Councilmember Freeman stated one (1) of the three (3) clarifiers at the Wastewater Treatment Plant (WWTP) has
broken to the point of being unusable. He also stated there is only one (1) company in the world that makes this
clarifier. He noted staff is not in favor of waiting to replace this clarifier in the event another clarifier fails. Director
Fredericksen stated this is a redundant piece and prefers repairs to occur ASAP to stay in compliance with the
discharge permit through the State. He noted this clarifier is approximately 47 years old and is at the end of service
life. To the response of Mayor Casper, Director Fredericksen stated subsequent projects will be set up to replace these
clarifiers with new mechanisms. It was then moved by Councilmember Freeman, seconded by Councilmember
Dingman, to approve the sole source purchase of a drive assembly for the Wastewater Treatment Plant’s final clarifier.
Roll call as follows: Aye – Councilmembers Hally, Smede, Dingman, Freeman, Francis. Nay – none. Motion carried.
Presentation and Discussion of City Employees’ Health Insurance Renewal, Fiscal Year 2020-2021:
Director Tew stated Blue Cross has increased the total cost for medical, dental, and, vision insurance for Program
Year 2020-2021 by $1,458,345, which is approximately 14.6% more than the previous year of 9.9%. If no changes
are made to the current structure and plan designs, the City increase would be $1,316,828 with the employee increase
of $141,517. Director Tew stated the two (2) tools available to adjust costs would be to change the premium ratio
splits and, making changes to the plan. He reviewed the following possible scenarios, which are a combination of
these two (2) tools, with general discussion throughout:
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May 28, 2020
Scenario 1 – current ratio split (Preferred Provider Organization (PPO)-89/11, Health Savings Account (HSA)-95/5);
no plan changes; City increase = $1,316,828; employee increase = $141,517.
Scenario 1-1 – current ratio split (PPO-89/11, HSA-95/5); all plan changes; City increase = $629,708; employee
increase = $61,263.
Scenario 2-2 – moderate ratio split (PPO-87/13, HSA-94/6); all plan changes; City increase = $437,813; employee
increase = $253,159.
Scenario 3-3 – 50/50 increase split of Scenario 1 minus plan changes of $767,000 (PPO-86/14, HSA-94/6); all plan
changes; City increase = $335,262; employee increase = $355,709.
Plan Option changes include:
PPO 1 Individual out of pocket changed from $1,750 to $2,500; family changed from $5,250 to $7,500 (3% PPO
decrease – $268,492.82). No change to the medical deductible.
PPO 2 Prescription copays changed from three-tier system to six-tier system and $250 deductible for name brand
prescriptions (3.8% PPO decrease – $340,090.01). Director Tew noted prescriptions are the highest plan expense.
PPO 3 Office visit copays changed to two-tier system for Choice Doctor/Preferred Network and Non-preferred
Network doctors (1% PPO decrease – $89,497.61)
HSA 4 Individual out of pocket changed from $4,000 to $4,800 and from $8,000 to $9,600 for family (2.8% HSA
decrease – $69,292.68)
Director Tew reviewed the individual scenarios with current, proposed, and, difference of costs for the City; number
of employees on each plan (the majority of employees are on the Family plan); and, the proposed/difference of the
monthly plan for employees.
Director Tew reviewed the increase of premiums for employees in the different grades. He stated 50% of employees
are in grades 7-11 although there are several employees in grades 2, 3, and, 5. He noted as employees’ wages increase
the percentage of premiums decrease. He also noted this increase is only for premiums, this does not include the
employees’ use of the plan.
Mayor Casper stated there were several plan option changes, these four (4) plan options were chosen by the
committee. Mr. Argyle concurred. He explained the following: Plan Option 1 – the out of pocket option was the
biggest bang for the buck as only 13-17% of the employees are hitting the deductible and, hitting the family out of
pocket maximum is rare. Plan Option 2 – the prescription utilization is at 31%, therefore a change is needed. Mr.
Argyle believes employees will look for other alternatives for the prescription utilization. Plan Option 3 – most
companies are changing the copay option. Plan Option 4 – the HSA out of pocket option was better than changing
the deductible. Mr. Hagedorn stated an increase is needed with both the PPO and HSA to keep the same relationship.
Councilmember Dingman believes health care will only get more expensive. She also believes common sense should
be used for any monthly employee change and that common sense should be used to apply the impact to the individual
and/or families. She indicated she would support Scenario 3-3 as she believes this is very affordable health insurance.
Councilmember Hally believes the utilization of health care services may increase with the Coronavirus (COVID-
19). He indicated he would support Scenario 2-2. To the request of Mayor Casper, Director Tew stated any employee
contracting COVID-19 could have extended family medical leave and two (2) weeks of City-paid leave. Mr. Kirkham
indicated these leaves were required by Congress and will expire at year end. Director Tew noted several non-
essential medical procedures have been delayed due to COVID-19. He believes these procedures will increase. Mr.
Argyle stated there should be a decrease in overall experience although there are currently some large claims which
will not help in the next year. He also stated all the large public entities in the area were compiled as one (1) large
group that went out to bid to the national and local carriers. No one would bid the group as a whole due to the various
experience. Some carriers bid each group individually, however, there were not more competitive quotes than Blue
Cross. Councilmember Freeman believes the combination of Scenario 3-3 increases and the out of pocket maximums
are too large for employees, he is in favor of Scenario 2-2. Councilmember Smede believes the City is paying an
expediential amount of the percentage. She expressed her concern for the taxpayers and ratepayers. She also believes
the increase is extremely reasonable, she is in favor of Scenario 3-3. Mr. Argyle stated other cities have a similar
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May 28, 2020
percentage. Mr. Hagedorn stated percentages would only be equal if the ratios are the same split. Director Tew stated
the scenarios would shift more of the cost to the employee for the purpose of lowering the impact on the City’s
budget. He concurred the City’s plan is comparable/on par with other cities. He believes the City loses the competitive
advantage for recruiting as more of these costs are passed onto the employees. Mayor Casper believes this is a well-
managed City. She also believes all cities are in a tough budget year. Director Tew reiterated the increase is higher,
approximately 5% higher than other cities, due to the claims cost. Councilmember Francis recommended Scenario 2-
2. He expressed his concern for Plan Option 3 and the choice of doctors. Mr. Hagedorn clarified the increase is only
for a specialty doctor. To the response of Councilmember Radford, Mayor Casper stated the cost of service model
includes personnel costs and is included in the Enterprise Fund budgets. Mr. Kirkham stated fees could not be legally
adjusted to capture the General Fund employees. Councilmember Radford believes health care costs are a legislative
issue. Mayor Casper questioned purchasing power and unemployment rates during recessions. Director Alexander
believes the COVID-19 crisis is unchartered territory and other recessions have other reasons. She is not comfortable
relying on past experiences of recessions for this particular case. Director Tew believes the economy cycles fluctuate
due to health care and wages. Brief discussion followed regarding the HSA (Mr. Argyle noted approximately one-
third of the employees are on HSA) and a network of the new community hospital. To the response of Councilmember
Francis, Ms. Ricks stated if any of the four (4) options were eliminated the amounts to the City and the employees
would increase. Following additional discussion, Scenario 3-3 will be used moving forward with the option of
Scenario 2-2 if additional funding becomes available.
There being no further business, the meeting adjourned at 7:52 p.m.
s/ Kathy Hampton s/ Rebecca L. Noah Casper
CITY CLERK MAYOR
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Agenda
Chris H Fredericksen, Public Works Director
Wednesday, May 27, 2020
Sole Source Drive Assembly Purchase for the Wastewater Treatment Plant
Council Action Desired
☐ Ordinance ☐ Resolution ☐ Public Hearing
☒ Other Action (Approval, Authorization, Ratification, etc)
Approve the sole source purchase of a Drive Assembly for the Wastewater Treatment Plant’s final
clarifier.
Description, Background Information & Purpose
Attached for your consideration is a purchase order with Evoqua Water Technologies for a Drive
Assembly for the Wastewater Treatment Plant’s final clarifier. The Drive Assembly operates the
skimming arm on the City’s final clarifier and is an important component to the City’s wastewater
treatment process. The City’s current Drive Assembly has failed and must be replaced. The Public
Works Department is requesting that the City Council approve this purchase as a sole source
expenditure, pursuant to Idaho Code § 67-2808(2). It is impractical to requests quotes for the Drive
Assembly because it is required to respond to a situation that is immediately detrimental to the
public welfare or property and the compatibility of the replacement part is the paramount
consideration, Idaho Code § 67-2808(2)(a)(i-ii).
Relevant PBB Results & Department Strategic Plan
☐ ☐ ☐ ☐ ☒ ☒ ☒ ☐
This purchase order supports the community-oriented results of safe and secure community, livable
community, and sustainability.
Interdepartmental Coordination
Interdepartmental coordination will be Public Works and Municipal Services
Fiscal Impact
The action requires an expenditure from the Wastewater Fund of $56,522.72. Sufficient funding is
available within the current budget year to accommodate this expenditure.
Legal Review
The Legal Department has reviewed and consulted with Public Works on this request.
2020-43
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Human Resources:
City Employees' Health Insurance
Renewal, Fiscal Year 2020-2021
Option Matrix
PPO Out of Pocket PPO RX Deductible PPO Copay HSA Out of Pocket
PPO HSA Total Cost Increase Increase (1) Increase (2) Increase (3) Increase (4)
Percentage Ratios City Employee City Employee City Employee City Employee City Employee City Employee
Scenario 1 Current Ratio Split
No Plan Changes 89/11 95/5 11,352,856 1,291,080 1,316,829 141,517 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Scenario 1‐1 Current Ratio Split
All Plan Changes 89/11 95/5 10,665,735 1,210,826 629,708 61,263 238,959 29,534 302,681 37,410 79,653 9,845 65,828 3,465
Scenario 2‐2 Moderate Split
All Plan Changes 87/13 94/6 10,473,840 1,402,722 437,813 253,159 233,589 34,904 295,879 44,212 77,863 11,635 65,482 3,811
Scenario 3‐3 50/50 Increase Split
Emp & City ‐ All Plan Changes 86/14 94/6 10,371,289 1,505,272 335,262 355,709 230,904 37,589 292,478 47,613 76,968 12,530 65,135 4,158
Blue Cross Plan Option Changes
Individual Out of Pocket Changed to $2,500. (3% PPO Decrease ‐
PPO 1 $268,492.82)
Rx Copays Changed to $10/$20/$30/$50/$150/$250 and Rx Brand
PPO 2 Deductible $250. (3.8% PPO Decrease‐ $340,090.91)
Office Visit Copays Change to‐ Choice Docs: Tier 1 $20 PCP/ $40
Specialist, Tier 2 $40 PCP/$60 Specialist. (1.0% PPO Decrease‐
PPO 3 $89,497.61)
Individual Out of Pocket Change to $4,800 (2.8% HSA Decrease‐
HSA 4 $69,292.68)
*All Projected savings are related to the number of employee's election of plans. Any changes to the number of employee's electing plans would change the estimates.
2020/2021 City of Idaho Falls
Scenario 1 (Current Ratio 89/11 & 95/5 No Plan Changes)
Proposed Plan Difference
PPO(Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
67 Employee 638.37 78.90 717.27 75.30 13.37% 9.31 13.38%
85 Employee & Spouse 1,350.66 166.93 1,517.59 162.08 13.64% 20.03 13.64%
18 Employee +1 Child 901.67 111.44 1,013.11 104.71 13.14% 12.94 13.14%
23 Employee +2+ Children 1,298.03 160.43 1,458.46 148.45 12.91% 18.35 12.92%
206 Family 1,943.49 240.21 2,183.70 230.93 13.48% 28.54 13.48%
Proposed Plan Difference
HSA (Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee
City Employee Total Change City % Increase Change % Increase
42 Employee 566.31 29.81 596.12 65.36 13.05% 3.44 13.03%
8 Employee & Spouse 1,193.96 62.84 1,256.80 140.69 13.36% 7.40 13.35%
5 Employee +1 Child 802.41 42.23 844.64 90.89 12.77% 4.78 12.77%
6 Employee +2+ Children 1,158.62 60.98 1,219.60 128.86 12.51% 6.78 12.51%
53 Family 1,721.51 90.61 1,812.12 200.45 13.18% 10.55 13.17%
Current Proposed Difference
Annual City PPO Cost $ 7,506,796.44 $ 8,524,611.42 $ 1,017,814.98
Annual City HSA Cost 2,228,230.56 $ 2,527,244.14 $ 299,013.58
$ 9,735,027.00 $ 11,051,855.55 $ 1,316,828.55
Annual City HSA Contribution Cost 301,000.00 301,000.00 ‐
Total Estimated City Cost $ 10,036,027.00 $ 11,352,855.55 $ 1,316,828.55
Annual Employee PPO Cost 982,196.76 $ 1,107,984.42 125,787.66
Annual Employe HSA Cost 167,366.40 $ 183,095.54 15,729.14
Total Estimated Employee Cost $ 1,149,563.16 $ 1,291,079.97 $ 141,516.81
Total Estimated City‐Wide Costs $ 11,185,590.16 $ 12,643,935.52 $ 1,458,345.36
2020/2021 City of Idaho Falls
Scenario 1‐1 (Current Ratio 89/11 & 95/5 All Plan Changes)
Proposed Plan Difference
PPO(Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
67 Employee 592.41 73.22 665.62 29.34 5.21% 3.63 5.21%
85 Employee & Spouse 1,251.72 154.71 1,406.43 63.14 5.31% 7.81 5.31%
18 Employee +1 Child 837.75 103.54 941.29 40.79 5.12% 5.04 5.12%
23 Employee +2+ Children 1,207.41 149.23 1,356.64 57.83 5.03% 7.15 5.03%
206 Family 1,802.53 222.78 2,025.31 89.97 5.25% 11.11 5.25%
Proposed Plan Difference
HSA (Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee
City Employee Total Change City % Increase Change % Increase
42 Employee 551.92 29.05 580.97 50.97 10.18% 2.68 10.16%
8 Employee & Spouse 1,162.99 61.21 1,224.20 109.72 10.42% 5.77 10.41%
5 Employee +1 Child 782.40 41.18 823.58 70.88 9.96% 3.73 9.96%
6 Employee +2+ Children 1,130.25 59.49 1,189.74 100.49 9.76% 5.29 9.75%
53 Family 1,677.38 88.28 1,765.67 156.32 10.28% 8.22 10.27%
Current Proposed Difference
Annual City PPO Cost $ 7,506,796.44 $ 7,903,319.02 $ 396,522.58
Annual City HSA Cost 2,228,230.56 $ 2,461,416.09 $ 233,185.53
$ 9,735,027.00 $ 10,364,735.12 $ 629,708.12
Annual City HSA Contribution Cost 301,000.00 301,000.00 ‐
Total Estimated City Cost $ 10,036,027.00 $ 10,665,735.12 $ 629,708.12
Annual Employee PPO Cost 982,196.76 $ 1,031,195.47 48,998.71
Annual Employe HSA Cost 167,366.40 $ 179,630.91 12,264.51
Total Estimated Employee Cost $ 1,149,563.16 $ 1,210,826.38 $ 61,263.22
Total Estimated City‐Wide Costs $ 11,185,590.16 $ 11,876,561.50 $ 690,971.34
2020/2021 City of Idaho Falls
Scenario 2‐2 (Moderate Split 87/12 & 94/6 All Plan Changes )
Proposed Plan Difference
PPO(Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
67 Employee 579.09 86.53 665.62 16.02 2.85% 16.94 24.34%
85 Employee & Spouse 1,223.59 182.84 1,406.43 35.01 2.95% 35.94 24.46%
18 Employee +1 Child 818.93 122.37 941.29 21.97 2.76% 23.87 24.23%
23 Employee +2+ Children 1,180.28 176.36 1,356.64 30.70 2.67% 34.28 24.13%
206 Family 1,762.02 263.29 2,025.31 49.46 2.89% 51.62 24.39%
Proposed Plan Difference
HSA (Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
42 Employee 549.02 31.95 580.97 48.07 9.60% 5.58 21.17%
8 Employee & Spouse 1,156.87 67.33 1,224.20 103.60 9.84% 11.89 21.45%
5 Employee +1 Child 778.28 45.30 823.58 66.76 9.38% 7.85 20.95%
6 Employee +2+ Children 1,124.30 65.44 1,189.74 94.54 9.18% 11.24 20.73%
53 Family 1,668.56 97.11 1,765.67 147.50 9.70% 17.05 21.30%
Current Proposed Difference
Annual City PPO Cost $ 7,506,796.44 $ 7,724,628.73 $ 217,832.29
Annual City HSA Cost 2,228,230.56 $ 2,448,210.86 $ 219,980.30
$ 9,735,027.00 $ 10,172,839.59 $ 437,812.59
Annual City HSA Contribution Cost 301,000.00 301,000.00 ‐
Total Estimated City Cost $ 10,036,027.00 $ 10,473,839.59 $ 437,812.59
Annual Employee PPO Cost 982,196.76 $ 1,209,885.76 227,689.00
Annual Employe HSA Cost 167,366.40 $ 192,836.15 25,469.75
Total Estimated Employee Cost $ 1,149,563.16 $ 1,402,721.91 $ 253,158.75
Total Estimated City‐Wide Costs $ 11,185,590.16 $ 11,876,561.50 $ 690,971.34
2020/2021 City of Idaho Falls
Scenario 3‐3 (50/50 Increase Employee/City Split 86/14 & 94/6 All Plan Changes)
Proposed Plan Difference
PPO(Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
67 Employee 572.44 93.19 665.62 9.37 1.66% 23.60 33.91%
85 Employee & Spouse 1,209.53 196.90 1,406.43 20.95 1.76% 50.00 34.04%
18 Employee +1 Child 809.51 131.78 941.29 12.55 1.58% 33.28 33.79%
23 Employee +2+ Children 1,166.71 189.93 1,356.64 17.13 1.49% 47.85 33.68%
206 Family 1,741.77 283.54 2,025.31 29.21 1.71% 71.87 33.96%
Proposed Plan Difference
HSA (Health/Vision/Dental) Monthly
Monthly City Monthly Employee Employee %
City Employee Total Change City % Increase Change Increase
42 Employee 546.11 34.86 580.97 45.16 9.02% 8.49 32.19%
8 Employee & Spouse 1,150.74 73.45 1,224.20 97.47 9.25% 18.01 32.49%
5 Employee +1 Child 774.16 49.41 823.58 62.64 8.80% 11.96 31.95%
6 Employee +2+ Children 1,118.35 71.38 1,189.74 88.59 8.60% 17.18 31.71%
53 Family 1,659.73 105.94 1,765.67 138.67 9.12% 25.88 32.33%
Current Proposed Difference
Annual City PPO Cost $ 7,506,796.44 $ 7,635,283.59 $ 128,487.15
Annual City HSA Cost 2,228,230.56 $ 2,435,005.62 $ 206,775.06
$ 9,735,027.00 $ 10,070,289.21 $ 335,262.21
Annual City HSA Contribution Cost 301,000.00 301,000.00 ‐
Total Estimated City Cost $ 10,036,027.00 $ 10,371,289.21 $ 335,262.21
Annual Employee PPO Cost 982,196.76 $ 1,299,230.91 317,034.15
Annual Employe HSA Cost 167,366.40 $ 206,041.38 38,674.98
Total Estimated Employee Cost $ 1,149,563.16 $ 1,505,272.29 $ 355,709.13
Total Estimated City‐Wide Costs $ 11,185,590.16 $ 11,876,561.50 $ 690,971.34
Sample of Different Grades
Grade 2‐5 PPO Grade 2‐5 HSA
Wage $ 14.62 Wage $ 14.62
Gross $ 30,409.60 Gross $ 30,409.60
Health E/S/C HSA E/S/C
Employee Annual Premium Percentage of Gross Employee Annual Premium Percentage of Gross
Scenario 1 $ 2,882.48 9.48% Scenario 1 $ 1,087.27 3.58%
Scenario 1‐1 $ 2,673.41 8.79% Scenario 1‐1 $ 1,059.40 3.48%
Scenario 2‐2 $ 3,159.49 10.39% Scenario 2‐2 $ 1,165.34 3.83%
Scenario 3‐3 $ 3,402.53 11.19% Scenario 3‐3 $ 1,271.28 4.18%
Grade 7‐5 PPO Grade 7‐5 HSA
Wage $ 21.94 Wage $ 21.94
Gross $ 45,635.20 Gross $ 45,635.20
Health E/S/C HSA E/S/C
Employee Annual Premium Percentage of Gross Employee Annual Premium Percentage of Gross
Scenario 1 $ 2,882.48 6.32% Scenario 1 $ 1,087.27 2.38%
Scenario 1‐1 $ 2,673.41 5.86% Scenario 1‐1 $ 1,059.40 2.32%
Scenario 2‐2 $ 3,159.49 6.92% Scenario 2‐2 $ 1,165.34 2.55%
Scenario 3‐3 $ 3,402.53 7.46% Scenario 3‐3 $ 1,271.28 2.79%
Grade 11‐5 PPO Grade 11‐5 HSA
Wage $ 31.73 Wage $ 31.73
Gross $ 65,998.40 Gross $ 65,998.40
Health E/S/C HSA E/S/C
Employee Annual Premium Percentage of Annual Employee Annual Premium Percentage of Gross
Scenario 1 $ 2,882.48 4.37% Scenario 1 $ 1,087.27 1.65%
Scenario 1‐1 $ 2,673.41 4.05% Scenario 1‐1 $ 1,059.40 1.61%
Scenario 2‐2 $ 3,159.49 4.79% Scenario 2‐2 $ 1,165.34 1.77%
Scenario 3‐3 $ 3,402.53 5.16% Scenario 3‐3 $ 1,271.28 1.93%
Grade 16‐5 PPO Grade 16‐5 HSA
Wage $ 51.66 Wage $ 51.66
Gross $ 107,452.80 Gross $ 107,452.80
Health E/S/C HSA E/S/C
Employee Annual Premium Percentage of Gross Employee Annual Premium Percentage of Gross
Scenario 1 $ 2,882.48 2.68% Scenario 1 $ 1,087.27 1.01%
Scenario 1‐1 $ 2,673.41 2.49% Scenario 1‐1 $ 1,059.40 0.99%
Scenario 2‐2 $ 3,159.49 2.94% Scenario 2‐2 $ 1,165.34 1.08%
Scenario 3‐3 $ 3,402.53 3.17% Scenario 3‐3 $ 1,271.28 1.18%
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