HomeMy WebLinkAboutInsurance Committee Minutes 05.31.1995MINUTES
INSURANCE COMMITTEE
MAY 31, 1995 3:40 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT: Chairman- Chuck Dickerson
Lonnie Kellogg Andy Loebe
Don Hackmann Brad Krause
Discussion regarding a letter from City Attorney, Joe Leckie,
regarding a conflict of interest. (see attached)
Motioa by Andy Loebe, seconded by Brad Krause, that the
committee recommends holding a public hearing on the resolution
waiving the conflict of interest prohibition for Councilman
Kellogg, to be held at the regular council meeting on June 20th.
Motion carried, with Lonnie Kellogg abstaining.
Discussion regarding discrimination on the new proposed rates for
retirees. Lonnie had contacted John Holbrook at the State
Insurance commissioner's office and explained the situation to him.
Apparently Walt Menello didn't give Mr. Holbrook all of the
information when he had called him, because Mr. Holbrook told
Lonnie that there was no discrimination. Mr. Holbrook indicated
that he would call Mr. Menello and explain everything to him.
There is concern by the committee members about the retirees
insurance premium increasing, especially the life portion.
However, this policy will substantially reduce the City's cost of
insurance expense. John Alden Life does not sell a medicare
supplement. After the enrollment cards are completed and the
health statement is submitted, Lonnie will ask John Alden Life if
it is possible to reduce the retiree's health premium to the same
amount as they were paying with United of Omaha. No decision will
be made regarding the retirees life coverage until after the final
bid document is received from John Alden Life. The premium is high
for the amount of benefit received.
The next meeting is scheduled for June 28th at 5:30 p.m
The meeting adjourned at 4:11 p.m.
Respectfully submitted,
Don Hackmann
City Clerk
F
21~7WA1STSOLICE City of Laurel
PHONE: 628-8737 P.O. BOX 10
LAUREL, MONTANA 59044
CITY HALL
115 W. 1 ST ST.
PHONE: 628-8791
May 30, 1995
Councilman Chuck Dickerson
Chairman of the Insurance Committee
City Council
Subject: Conflict of Interest for Lonnie Kellogg and health insurance proposals
Chairman Dickerson,
CITY ATTORNEY
DEPARTMENT
I have been asked to respond to a question about Councilman Lonnie Kellogg's conflict of interest as an officer
of the City and having a potential, financial interest in a contract for health insurance with the City.
MCA Section 7-5-4109, deals with conflicts of interest by city officers with potential interests in contracts
with the city. It states as follows:
7-5-4109. Control of conflict of interest.
(1) The mayor, any member of the council, any city or town officer, or any relative
or employee of an enumerated officer may not be directly or indirectly interested in the profits of
any contact entered into by the council while the officer is or was in office.
(2) The governing body of a city or town may waive ~e application of the
prohibition cod~twined in subsection (1) for a city or town officer~e€ employee, or to the relative
of an officer of employee, if in an official capacity the officer e€ employee does not influence
the decision making process or supervise a function regarding the contract in question.
A governing body may grant a waiver under this subsection only after publicly disclosing the
nature of the conflict at an advertised public hearing held for that purpose. In determining
whether to grant a waiver, the governing body shall consider the following factors, where
applicable:
(a) whether the waiver would provide to a program or project a significant benefit or
an essential skill or expertise that would otherwise not be available;
(b) Whether on opportunity was provided for open competitive bidding or
negotiation;
(c) whether the person affected is a member of a clearly identified group of persons
that is the intended beneficiary of the program of project involved in the contract; and
(d) Whether the hardship imposed on the affected person or the governmental entity
by prohibiting the conflict will outweigh the public interest served by avoiding the conflict.
City of Laurel is an EEO Employer
Although the first portion of the statute would prohibit Councilman Kellogg from being involved in any way
with any potential contract with the City, the second portion allows for a waiver. This waiver would be granted
by resolution of the City Council after a public hearing. Notice of the public hearing would have to be given.
Enclosed is the proposed resolution for the City Council. If the resolution is accepted ,then the waiver to
Councilman Kellogg would be granted and he could be the beneficiary of a contract with the City. Even if the
waiver is granted, Councilman Kellogg is not able to participate in any Council action by way of vote or try to
influence the decisionmaking process.
Before the Council may consider the resolution, proper notice of this proposed action must be given. Also
enclosed is the form of notice that must be given.
If I can be of any fiirther assistance, please contact me.
Sincerely,
V. JOE LECKIE
City Attorney
cc: Donald L. Hackmann
Lonnie Kellogg
2
RESOLUTION NO.
A RESOLUTION WAIVING THE CONFLICT
OF INTEREST PROHIBITION FOR COUNCILMAN KELLOGG
PURSUANT TO THE PROVISIONS OF MCA 7-5-4109
IT IS HEREBY RESOLVED BY the City Council of the City of Laurel, as follows:
WHEREAS, the City of Laurel has requested bids on the providing of health insurance
for its employees, and
WHEREAS, Councilman Lonnie Kellogg has a potential conflict of interest in the
awarding of that contract for health insurance, and
WHEREAS, the Council after considering the factors as set forth in MCA 7-5-4109,
deems it in the best interest of the City that Councilman Kellogg by granted a waiver from the
conflict of interest prohibition; a~
NOW, THEREFORE, it is hereby resolved by the City Council of the City of Laurel
that Councilman Lonnie Kellogg shall be granted a waiver of the prohibitions against conflict of
interest as set forth in MCA 7-5-4109(1), and be allowed to have a financial interest in a contract
with the City of Laurel that provides health insurance to the City's employees.
This Resolution shall become effective immediately after passage by the City Council
and approval by the Mayor.
PASSED and ADOPTED by the Laurel City Council this day of
1995, upon motion by Councilperson ,and Seconded by Councilperson
APPROVED by the Mayor this day of , 1995.
CITY OF LAUREL
Charles G. Rogers, Mayor
ATTESTED:
Donald L. Haclanann, City Clerk
F1R.E/AMB/POLICE Cit
f L
l
217 W. 1ST. Sr. y o
aure
PHONE: 628$737
P.O. BOX 10
CITY HALL LATJREL, MONTANA 59044 -
115 W. 1ST ST. City Clerk
PHONE: 628.8791 DEPARTMENT
June 1, 1995
NOTICE OF PIIBLIC HEARING
NOTICE ZS HEREBY GIVEN that 'the Laurel City Council
will hold a public hearing on June 20, 1995 at 7:00 o'clock
p.m: at their regular scheduled council meeting, at the City
Council Chambers located aE 115 West First Street, Laurel,
Montana,: to publicly disclose. the nature of a potential conflict
of interest. The public hearing will be prior to consideration
>of a Resolution granting Councilman Lonnie Kellogg a waiver of
the conflict of interest prohibitions of MCA 7-5-4109. This
notice is given pursuant to the provision of MCA 7-5-4109.
Donald L. Hackmann, City Clerk
Pub. It 6-7-95
City of Laurel is an EEO Employer