Health Care Changes Help Saline Reduce Costs

Faced with $240,000 in rising employee health insurance costs, employees of the City of Saline have agreed to major changes in benefit plans to help the city keep costs in line. 

At the Dec. 20 meeting, the Saline City Council unanimously passed a motion changing employees' health insurance to a higher deductible health savings account plans. Council passed the motion after a lengthy presentation by city manager Todd Campbell.

Earlier this month, after learning the cost of insuring employees was going to rise 33 percent, council directed Campbell to try and negotiate cost savings with the Teamsters Local 214, representing the Department of Public Works and other city employees, and with the Saline police officers and sergeants bargaining. Campbell said he was told by Blue Cross and Blue Shield that the increase was due to several factors, including the way the city is rated by insurance companies, more claims than expected filed by employees and mandates in the federal health care legislation.

"Even in good times, I dare say that is too large an increase to take on without trying to make changes, especially when we've had three years of declining revenue, we're looking at a fourth and who knows how many more," Campbell said.

Saline let the contract out for bid and received four proposals. Only two proposals covered active employee and retiree plans, and one of those companies did not offer coverage with University of Michigan Health System, so the city renewed its contract with  Blue Cross and Blue Shield.

The plan was to switch to the Blue Cross and Blue Shield  "Simply Blue" plan, which would see deductibles increase from $2,000, for a single employee, or $4,000, for an employee with family, to $3,000 and $6,000, respectively. The city also hoped to offload a greater percentage of the deductible cost on to employees.

Non-union staff will be subject to the new plan and across-the-board wage freezes.

The Saline Police Officers Association and Saline Sergeants Association agreed to switch to the "Simply Blue" plan, only if they were not asked to pay more out-of-pocket. They also rejected a wage freeze, according to Campbell. The contract is up June 30, 2012.

"I'd hoped for more. But quite honestly, this was a huge step. It's certainly a starting point," said Campbell.           

The Teamsters agreed to a bit more, switching to the "Simply Blue" plan and also accepting a wage freeze that nullifies the three percent cost-of-living raise they were to receive. The city will pay 85 percent of their deductibles. Council also approved a motion extending their contract one year. It expires in 2012.

"I want to thank all the units for even coming to the table. They did not have to do that, but they did and I appreciate that," Campbell said.

Campbell said changes in health benefits alone will save the city $107,000.

"It's not as good as we hoped for, but it is certainly better than it was," Mayor Gretchen Driskell said.

City Councillor Brian Marl commended Campbell for his efforts.

"Although it is not the perfect solution to our health care problems, I think it is a good solution. You did your best to control the rate in which we are spending to provide health care for our employees. Although we are switching plans, I think we are doing an outstanding job in providing employees with above par health care benefits," Marl said.

Mayor Says Thanks to Little, Ping

Mayor Driskell presented plaques to two longtime members of Saline City Council. Alicia Ping, who spent 11 years on council, left council after she was elected to serve on the Washtenaw County Commission. The meeting was the last for Patrick Little, who after 17 years, including six as mayor, decided to leave the table.

Driskell had kind words for both public servants.

"I don't think there is  enough room in this room for all the words we'd need to say thank you for what you've contributed over the years," she told Little. "You are a real hero to me for all you have done and I want to tell you personally that I appreciate your leadership in our community and you will seriously be missed."

Little said he enjoyed his time on council.

"I look at this (list of accomplishments) and understand why I am tired," he joked. "It's really been a lot of fun and a very interesting learning experience. The fact that the citizens of Saline trusted me enough to elect me several times to council and Mayor has really been very much an honor."

Ping recently left council when she was elected to her sister Jessica's former seat on the county commission. Driskell applauded her service to the city.

 "You served on so many committees, but it's really in your heart. You've been devoted to the city. You always brought a good dialogue to council, and a lot of homework and curiosity. You're going to be missed," Driskell said, urging her to stay in touch.

Ping said it was a pleasure to serve on council.

"I think I did a lot. But I think I got a lot more out of it. It really has been a pleasure to work with you on council and with the staff, and especially the citizens. It really has added to and enhanced my life so much," Ping said.

Hockey Night in Saline

After debating whether hockey should be permitted on the new ice rink at , council unanimously approved rules for the facility.  Downtown Development Director Art Trapp presented council a set of suggested rules and regulations. One of the rules stated there would be no hockey sticks or pucks allowed. But several council members took issue.

"If dads and kids get together and want to shoot the puck around, what's the big deal? The rink is too small for five-on-five or even three-on-three (hockey). I don't think anyone could build up enough speed to be too dangerous out there," said Councillor Patrick Little, noting that a figure skater twirling about on the ice could also be a safety risk. "I say let it go. Let it be."

Council voted 5-2 in favor of amending a motion to remove the rule prohibiting hockey sticks and pucks, with Mayor Driskell and Councillor David Rhoads voting no, and then unanimously approved the rules.  The rink is open from 8 a.m. to 9 p.m. Sunday to Thursday, and 8 a.m. to 10 p.m. on Friday and Saturday. Safety gear is recommended. There is no attendant on duty, so skaters do so at their own risk. Children should be supervised by an adult. In case of an emergency, users should call 429-7911.

DiggyPod Tax Break Granted

After a public hearing, in which no one spoke, council voted 7-0 to approve a tax abatement for the expansion of DiggyPOD, a book printing company located at 1259 Industrial Street. The Industrial Facilities Tax Exemption is on $50,000 of real property and $755,400 of personal property and is effective for six years. The expansion is expected to create three to five new jobs over the next three years. Paperwork filed by DiggyPOD said the expansion would also help the company retain 10 currently employed workers.

Tom Simpson, of DiggyPOD, told council that the company was expanding because business was up by 40 percent. He said DiggyPOD serviced self-publishers in the U.S. and Canada.

Simpson thanked council and commended the City of Saline for being "business-friendly."

Councillor Little called DiggyPOD a model corporate citizen, citing its continued community involvement.

Sunday Alcohol Sales Permitted

Council voted 6-1 in favor of approving and adopting an ordinance to allow Sunday morning sales of alcohol.  The State of Michigan recently changed its law to allow for the sale of alcohol between 7 a.m. Sunday and 2 a.m. Monday. Cities can have ordinances more restrictive than state law, but not less restrictive. Saline's ordinances had allowed sales from noon Sunday until 2 a.m. Monday. Saline Police Deputy Chief Jack Ceo recommended council change its ordinance to allow Sunday sales, creating uniform alcohol sales hours for all seven days of the week.

Councillor Glenn Law, who voted against the measure, said he'd like to keep the ordinance the way it is currently written. He was alone on the issue. Councillor Marl was happy to change the ordinance.

"I feel very strongly about this. I've long harbored the belief that the state law prohibiting Sunday morning alcohol sales was probably one of the stupidest and dumbest pieces of legislation ever enacted," Marl said.

Councillor Little said he believed opening up the hours for alcohol sales would help some local businesses.

City to Seek Grant for Path

Council voted 7-0 to authorize an application for $58,810 grant from the Washtenaw County Parks and Recreation Commission. The grant would fund what is left to pay for the $246,000 non-motorized path between Maple Road and Harris Street. The city raised the of the money.

Budget Amendment Approved

Council unanimously approved the amended fiscal budget for 2011.