HomeMy Public PortalAbout04-26-2010 MEETING OF RICHMOND COMMON COUNCIL
AS BOARD OF DIRECTORS OF RICHMOND POWER AND LIGHT
April 26, 2010
The Board of Directors of Richmond Power and Light met on Monday,April 26,2010 in the
Auditorium at the Service Building. Chairperson Bing Welch called the meeting to order at 7:00 p.m.
Member's present was Bruce Wissel,Larry Parker,Bob Goodwin, Jack Elstro,Phil Quinn, and Chairman
Welch. Absent were Board Members Diana Pappin, Clay Miller, and Kelley Cruse-Nicholson. Attending
from Richmond Power and Light were,Randy Baker, Susan Williams, and General Manager Steve Saum.
General Manager Saum told the Board that RP&L has been investigating changes to the
RP&L employee's health insurance coverage and at that time he turned the meeting over to Randy Baker.
Under the current plant, employees have a$100 deductible. The new options will be for a$500 or$1000
deductible. The$500 deductible will save the employee covering a family approximately$523 a year due
to lower monthly premiums while saving the company approximately$1,773,579. The $1000 deductible
will save the employee covering a family approximately$669 a year while the company will save
approximately$1,675,705. Also included in the proposed coverage is an increase in co-payments from
$10 to $25 for physician visit, $20 to $75 for Urgent Care, and$50 to $200 for Emergency Room.
Current hospitalization is 0 percent after deductible while proposed will be 20 percent after deductible. A
change proposed in the prescription drug plan is a 3-tier plan. Currently employees pay$7 for generic
drugs and$14 for non-generic. Proposed is $10 for generic, $30 for non-generic, and$60 for high dollar
drugs.
In 2009 20 employees reached their$100 deductible,which shows that a large portion of RP&L
employees are using the network providers.
Randy told the Board that with the new Health Care Reform bill;RP&L is facing a 40%tax on
their insurance benefits. The current policy is considered a"Cadillac Plan"and will be subjected to this
tax. The proposed changes will alleviate this.
Steve Saum told the Board that the insurance options are not a negotiated item with the Union;
only the percentage of payment for the plan is negotiated. He told the Board that this is a management
decision and he was giving the Board this information to illustrate potential cost savings. After further
discussion,the Board liked the $500 deductible, as it appears to be a win-win situation for both Richmond
Power and Light and their employees.
Chairman Welch then went over some Board policies that have been implemented years ago and
have not been attended to since. He told the Board that attention needs to be paid to these policies, as
well as, implementing some new ones. At that time,proposed policies were discussed. Chairperson
Welch said these were for talking points and that the Board will need to reconvene at a later time to
further discuss the proposed policies and changes that will need to be made.
With no further business to discuss Chairperson Bing Welch adjourned the meeting at 8:50 p.m.
Meeting tapes are on file.
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ATTEST
Karen Chasteen,IAMC,MMC
City Clerk