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10-27-2010 HUCMRegular Meeting October 27, 2010 Members present: President Dwight Bordson; Vice President Robert Hantge, Secretary Craig Lenz; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm President Bordson called the meeting to order at 3:00 p.m. The minutes of the September 29, 2010 regular meeting were reviewed. A motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the minutes as written. Motion was unanimously. The September 2010 payables were discussed. A motion was made by Commissioner Walser, seconded by Vice President Hantge to ratify the payment of bills in the amount of $2,130,793.31 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the Septemeber 2010 financial statements /budget year -to -date. After discussion, a motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the September 2010 financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm stated that he will have more information at the next meeting regarding the transmission owner membership in MISO. GM Kumm presented the parallel generation contract with Chris Renstrom. The board recommended adding the phrase `wind generation' to the contract as Mr. Renstrom has both wind turbines and a solar system on his property. After discussion, a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the parallel generation contract with Chris Renstrom subject to staff adding wind generation to the contract. Motion was unanimously carried. (Contract attached.) GM Kumm presented changes to parallel generation policy (tabled from August 25, 2010 and September 29, 2010 regular meetings). After discussion, it was decided to table again and Attorney Sebora will provide additional language regarding planning and zoning regulations. GM Kumm presented changes to exempt and non - exempt handbooks, section: employee recognition compensation. Employees receive items in recognition of their years of service and currently the years of service only go up to 35 years of employment. We have an employee who will be recognized for 40 years of service and it is our recommendation to add $300 for 40 years of service. After discussion a motion was made by Commissioner Walser, seconded by Vice President Hantge to approve changes to exempt and non - exempt handbooks, section: employee recognition compensation. Motion was unanimously carried. (Changes attached.) GM Kumm presented changes to policies and requirement booklet, sections: payment of your bill; automatic bill payment plan; budget payment plan; and explanation of billing procedure. Automatic bill payment plan and budget payment plan are for review only; no changes were recommended. The changes to `payment of your bill' are what we currently practice in our billing department. The changes to `explanation of billing procedure' are recommended changes from Attorney Sebora regarding MN Statute number 471.425 allowing governing bodies that meet at least one time a month have 35 days from the date of receipt to make payment without penalties. Discussion ensued regarding the removal of administration fees and late fees from City's billing as a result of this statute. GM Kumm recommended these minutes reflect that these fees were removed because of state statute and that HUC does comply with the by -laws in that we do not grant discriminatory rate, rebate or other special concession to any consumer serviced by Hutchinson Utilities Commission. A motion was made by Vice President Hantge, seconded by Commissioner Nordin that acknowledgement has been made that administration fees and late fees were removed from City's billings. Motion was unanimously carried. And a motion was made by Commissioner Nordin, seconded by Secretary Lenz to approve changes to `payment of bill' and `explanation of billing procedure'. Motion was unanimously carried. (Changes attached.) Jan Sifferath presented the HSA Medica insurance plan effective January 1, 2011. There is a 9.8% increase. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Walser to approve the HSA Medical insurance plan effective January 1, 2011. Motion was unanimously carried. (Plan attached.) Jan Sifferath presented the Midwest Dental Benefits contract for 2011. This is the first increase in two years. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve the Midwest Dental Benefits contract for 2011. Motion was unanimously carried. (Contract attached.) GM Kumm presented requisition #004234 for 10,000' conductor from Border States for $39,832.31. This is purchased through our long -term agreement with Border States and with long -term agreements, prices are good through the end of the year. This wire will be used as soon as the ground thaws in the spring. A motion was made by Vice President Hantge, seconded by Commissioner Walser to approve requisition #004234 for 10,000' conductor from Border States. Motion was unanimously carried. (Requisition attached.) Because of the Thanksgiving holiday in November and families on vacation, the regular November commissioners meeting was rescheduled. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to reschedule November's regular commissioners meeting for November 30, 2010 at 3:00 p.m. Motion was unanimously carried. A motion was made by Commissioner Nordin, seconded by Secretary Lenz to schedule a special meeting for December 15, 2010 at 3:00 p.m. to approve the 2011 budget. Motion was unanimously carried. GM Kumm reported on the following: • Johanna Hanneman has finished her `history piece' on Hutchinson Utilities Commission and will deliver a presentation at the November Commission meeting. • GM Kumm also reported that Lin Madson will be retiring in February. • Updated the commission board on the American Wind Energy meeting with City. Division Reports Gas — John Webster • 1300 AMI natural gas modules will be shipped October 28, 2010; will be installing base station antennae next week • Working with Roberta Yates on natural gas inventory contracts • Regulator set on School Rd is in and running, will finish up with landscaping • The BP natural gas contract is up the end of the year. Finance — Jared Martig • Working on the accounting software conversion; should run parallel in November and December; go live in 2011 with payroll Electric — Steve Lancaster • Sold the failed transformer for $21,500 • The electric service territory agreement with McLeod Cooperative Power Association has been filed with MPUC. Business — Jan Sifferath • Received the signed labor agreement • Working with AUS on programming for parallel generation billing • Will be transferring some of the CIP dollars from commercial to residential • Looking into PayPal's credit card system thru LOGIS instead of using RevTrak • Will report back to the board on the wording on bills explaining how much is going to the City for payment in lieu of taxes (PILOT); will work with LOGIS on fees associated with this programming Legal Update Nothing to report Unfinished Business Pilot: Meeting with City on November 10, 2010 at 4:00 p.m. Discussion was held as to whether or not a rate study is warranted at this time. Staff was commended on another successful Open House New Business None There being no further business, a motion was made by Commissioner Walser, seconded by Vice President Hantge to adjourn the meeting at 5:00 p.m. Motion was unanimously carried. ATTEST: Dwight Bordson, President Robert Hantge, Vice President Regular Meeting October 27, 2010 Members present: President Dwight Bordson; Vice President Robert Hantge, Secretary Craig Lenz; Commissioner Donald H. Walser; Commissioner Paul Nordin; Attorney Marc Sebora; General Manager Michael Kumm President Bordson called the meeting to order at 3:00 p.m. The minutes of the September 29, 2010 regular meeting were reviewed. A motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the minutes as written. Motion was unanimously. The September 2010 payables were discussed. A motion was made by Commissioner Walser, seconded by Vice President Hantge to ratify the payment of bills in the amount of $2,130,793.31 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the Septemeber 2010 financial statements /budget year -to -date. After discussion, a motion was made by Secretary Lenz, seconded by Vice President Hantge to approve the September 2010 financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm stated that he will have more information at the next meeting regarding the transmission owner membership in MISO. GM Kumm presented the parallel generation contract with Chris Renstrom. The board recommended adding the phrase 'wind generation' to the contract as Mr. Renstrom has both wind turbines and a solar system on his property. After discussion, a motion was made by Commissioner Walser, seconded by Secretary Lenz to approve the parallel generation contract with Chris Renstrom subject to staff adding wind generation to the contract. Motion was unanimously carried. (Contract attached.) GM Kumm presented changes to parallel generation policy (tabled from August 25, 2010 and September 29, 2010 regular meetings). After discussion, it was decided to table again and Attorney Sebora will provide additional language regarding planning and zoning regulations. GM Kumm presented changes to exempt and non - exempt handbooks, section: employee recognition compensation. Employees receive items in recognition of their years of service and currently the years of service only go up to 35 years of employment. We have an employee who will be recognized for 40 years of service and it is our recommendation to add $300 for 40 years of service. After discussion a motion was made by Commissioner Walser, seconded by Vice President Hantge to approve changes to exempt and non - exempt handbooks, section: employee recognition compensation. Motion was unanimously carried. (Changes attached.) GM Kumm presented changes to policies and requirement booklet, sections: payment of your bill; automatic bill payment plan; budget payment plan; and explanation of billing procedure. Automatic bill payment plan and budget payment plan are for review only; no changes were recommended. The changes to 'payment of your bill' are what we currently practice in our billing department. The changes to 'explanation of billing procedure' are recommended changes from Attorney Sebora regarding MN Statute number 471.425 allowing governing bodies that meet at least one time a month have 35 days from the date of receipt to make payment without penalties. Discussion ensued regarding the removal of administration fees and late fees from City's billing as a result of this statute. GM Kumm recommended these minutes reflect that these fees were removed because of state statute and that HUC does comply with the by -laws in that we do not grant discriminatory rate, rebate or other special concession to any consumer serviced by Hutchinson Utilities Commission. A motion was made by Vice President Hantge, seconded by Commissioner Nordin that acknowledgement has been made that administration fees and late fees were removed from City's billings. Motion was unanimously carried. And a motion was made by Commissioner Nordin, seconded by Secretary Lenz to approve changes to 'payment of bill' and 'explanation of billing procedure'. Motion was unanimously carried. (Changes attached.) Jan Sifferath presented the HSA Medica insurance plan effective January 1, 2011. There is a 9.8% increase. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Walser to approve the HSA Medical insurance plan effective January 1, 2011. Motion was unanimously carried. (Plan attached.) Jan Sifferath presented the Midwest Dental Benefits contract for 2011. This is the first increase in two years. After discussion a motion was made by Secretary Lenz, seconded by Commissioner Nordin to approve the Midwest Dental Benefits contract for 2011. Motion was unanimously carried. (Contract attached.) GM Kumm presented requisition #004234 for 10,000' conductor from Border States for $39,832.31. This is purchased through our long -term agreement with Border States and with long -term agreements, prices are good through the end of the year. This wire will be used as soon as the ground thaws in the spring. A motion was made by Vice President Hantge, seconded by Commissioner Walser to approve requisition #004234 for 10,000' conductor from Border States. Motion was unanimously carried. (Requisition attached.) Because of the Thanksgiving holiday in November and families on vacation, the regular November commissioners meeting was rescheduled. A motion was made by Vice President Hantge, seconded by Commissioner Nordin to reschedule November's regular commissioners meeting for November 30, 2010 at 3:00 p.m. Motion was unanimously carried. A motion was made by Commissioner Nordin, seconded by Secretary Lenz to schedule a special meeting for December 15, 2010 at 3:00 p.m. to approve the 2011 budget. Motion was unanimously carried. GM Kumm reported on the following: • Johanna Hanneman has finished her 'history piece' on Hutchinson Utilities Commission and will deliver a presentation at the November Commission meeting. • GM Kumm also reported that Lin Madson will be retiring in February. • Updated the commission board on the American Wind Energy meeting with City. Division Reports Gas — John Webster • 1300 AMI natural gas modules will be shipped October 28, 2010; will be installing base station antennae next week • Working with Roberta Yates on natural gas inventory contracts • Regulator set on School Rd is in and running, will finish up with landscaping • The BP natural gas contract is up the end of the year. Finance — Jared Martig • Working on the accounting software conversion; should run parallel in November and December; go live in 2011 with payroll Electric — Steve Lancaster • Sold the failed transformer for $21,500 • The electric service territory agreement with McLeod Cooperative Power Association has been filed with MPUC. Business — Jan Sifferath • Received the signed labor agreement • Working with AUS on programming for parallel generation billing • Will be transferring some of the CIP dollars from commercial to residential • Looking into PayPal's credit card system thru LOGIS instead of using RevTrak • Will report back to the board on the wording on bills explaining how much is going to the City for payment in lieu of taxes (PILOT); will work with LOGIS on fees associated with this programming Legal Update Nothing to report Unfinished Business Pilot: Meeting with City on November 10, 2010 at 4:00 p.m. Discussion was held as to whether or not a rate study is warranted at this time. Staff was commended on another successful Open House New Business None There being no further business, a motion was made by Commissioner Walser, seconded by Vice President Hantge to adjourn the meeting at 5:00 p.m. Motion was unanimously carried. VIA ATTEST: Dwight B rdson, President Contract for Parallel Generation facilities This contract is entered into October 27, 2010 by Hutchinson Utilities Commission (hereafter called "Utility ") and Chris Renstrom (hereafter called "customer ") RECITALS The customer has installed electric generating facilities, consisting of Grid Tied Wind Generation and Photovoltaic System rated at 0_5 kilowatts of electricity, on property located at 37 5th Avenue Northwest. Hutchinson. Minnesota 55350. The customer is prepared to generate electricity in parallel with the Utility. The customer meets the requirements of the Utilities rules on parallel generation and any technical standards for interconnection the Utility has established that are authorized by those rules. The Utility is obligated under federal and Minnesota law to interconnect with the customer and to purchase electricity offered for sale by the customer. AGREEMENTS The customer and the Utility agree: 1. The Utility will sell electricity to the customer under the rate schedule in force for the class of customer to which the customer belongs. 2. Payment per KWH for Energy delivered to HUC, in Excess of Energy Used by the customer. $0.054 /kwhr see, #3 in Parallel Generation (40KW or less). 3. The rates for sales and purchase of electricity may change over the time this contract is in force, due to actions of the Utility. The customer and the Utility agree that sales and purchases will be made under the rates in effect each month during the time this contract is in force. 4. The customer must operate its electric generating facilities within any rules, regulations, and policies adopted by the utility, which provide reasonable technical connection and operating specifications for the customer (Hutchinson Utility Commission's rules and regulations applicable to parallel generation are attached). 1 5. The customer will operate its electric generating facilities so that they conform to the national, state, and local electric and safety codes, and will be responsible for the costs of conformance. 6. The customer is responsible for the actual, reasonable costs of interconnection which are estimated to be $40. The customer will pay the Utility in this way: HUC will invoice Chris Renstrom 7. The customer will give the Utility reasonable access to its property and electric generating facilities if the configuration of those facilities does not permit disconnection or testing from the Utility's side of the interconnection. If the Utility enters the customer's property, the Utility will remain responsible for its personnel. 8. The Utility may stop providing electricity to the customer during a system emergency. The Utility will not discriminate against the customer when it stops providing electricity or when it resumes providing electricity. 9. The Utility may stop purchasing electricity from the customer when necessary for the Utility to construct, install, maintain, replace, remove, investigate, or inspect equipment or facilities within its electrical system. The Utility will notify the customer before it stops purchasing electricity in this way. HUC will notify Chris Renstrom with a phone call: 763- 354 -6054 10. The customer shall keep in force liability insurance, of at least $300,000.00, against personal or property damage due to the installation, interconnection, and operation of its generating facility. 11. This contract becomes effective when signed by the customer and the utility. This contract will remain in force until either the customer or the Utility gives written notice to the other that the contract is canceled. This contract will be canceled 30 days after notice is given. 12. This contract contains all the agreements made between the customer and the Utility. The customer and the Utility are not responsible for any agreements other than those stated in this contract. 2 THE CUSTOMER AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH SIGNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT THE BEGINNING OF THIS CONTRACT. Customer S HUTCHINSON UTILITIES COMMISSION By By Date: _ /d Date: 3 EXEMPT AND NON - EXEMPT Employee Recognition Compensation In addition to any monetary remuneration that an employee may receive as part of their employment with the Hutchinson Utilities Commission and other benefits listed in this employee handbook, the employee and a guest shall be entitled to attend any annual employee recognition banquet, as compensation, sponsored by the Hutchinson Utilities Commission. Employees may also be recognized for their loyalty and years of service to Hutchinson Utilities Commission and may receive items in recognition of their years of service at the annual employee recognition banquet not to exceed the following amounts: Amount Years of Service $50 5 Years $100 10 Years $125 15 Years $150 20 Years $175 25 Years $200 30 Years $250 35 Years $300 40 Years PAYMENT OF YOUR BILL Payments are due by the date shown on the statement. Payments may be made by cash, check, money order, VISA/MasterCard, (VISA/Master Card payments can only be accepted during business hours) automatic bank payment plan, or on -line at www.hutchinsonutilities.com. Check and money orders must be for the exact amounts, no change will be given on a check, money order or credit card. No second party or post -dated checks will be accepted. Checks will not be held. A dishonored check is treated as a non - payment. If notification of the dishonored check is received by HUC, the customer will be charged a $30 processing fee. During business office hours, customers may present payments at either the business office or via HUC's drive -up window. Both options for payment are located at 225 Michigan Street SE, Hutchinson, MN. Additionally, HUC currently provides the following locations for customers to deposit payments via a drop box: Cash Wise Foods, Hutchinson City Center or HUC's business office located at 225 Michigan Street Southeast. EXPLANATION OF BILLING PROCEDURE A bill for services is sent to the address provided by the customer approximately 3 to 5 days after the meters have been read. The customer then has approximately 10 days to pay the bill in full by the due date. In accordance with state law, the City of Hutchinson and its related entities shall have 35 days to pay bills in full. Bills paid after the due date will incur the following charges: • A 1% per month late payment charge on any unpaid balance. • A $15 processing fee. A dishonored check will be assessed a $30 processing fee; plus: a. A $40 trip charge to deliver a door hanger, giving customer 24 hours to make check good with cash, money order or credit card. b. A $40 trip charge to disconnect if payment is not received with cash, money order or credit card. C. A $40 trip charge to reconnect, after payment shall be made has -been r ° ^,�c°cTVea with cash, money order or credit card. A late notice warning of pending disconnection is mailed which allows the customer approximately 10 -20 days to pay the bill or contact the Customer Service Department to make other arrangements. Examples of other arrangements may include agreement to a budget plan or payments by other agencies. Failure to make payment by the stated date and time will be considered a violation of the notice of pending disconnection. If full payment or other arrangements have not been made by the deadline, HUC personnel are sent to the meter location to disconnect utility services (see disconnection of services section). • A notice will also be on the next month's billing warning of pending disconnection; customer should refer to previously sent disconnection letter for details of date and time of disconnection. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY BILLS ON TIME AND IN FULL. IT ALSO IS THE CUSTOMER'S RESPONSIBILITY TO KEEP HUC FULLY ADVISED OF ANY CHANGE OF ADDRESS. MEDICA Fully Insured Renewal for Hutchinson Utilities Effective January 1, 2011 Current Plan(s) MIC Choice M - oving to MIC PP MN 300 -15 Rx 10/25/50 ates Renewal Rates Class 1 [Employee Only] $398.12 $689.40 Class 4 $13591.94 7.82 MIC Choice MN 2500 -100% HSA HDHP moving to MIC PP MN 2500 -100% HSA HDHP Rx Ded /Coins Present Rates Renewal Rates Class 1 [Employee Only] $398.12 $437.10 Class 4 [Family] $1,009.34 $1,108.18 q l to°' For timely implementation, please contact your Medica Sales Executive with your renewal decision a minimum of 45 days prior to the effective date. The proposed rates include broker commissions based on Medica's standard commission scale, which approximates 1.2% of paid premium. Passport proposal utilizes United Health Care Choice Plus Network HUTCHINSON UTILITIES PAGE 1 OF 7 SFPTFMBFR 30, 2010 AF IMEDICA. MIC Choice MN 2500 -100% HSA HDHP moving to MIC PP MN 2500 -100% HSA HDHP ' rf Your Out - Pocket Expenses Lifetime maximum amount payable Applies to a combined in- network In- Network per member and out -of- network benefits Unlimited $5,000,000 Out- of-Network $1,000,000 Professional Services In- Network In- Network Office visit for acupuncture services Plan design /coinsurance No coverage Out -of- Network Out -of- Network Plan design /coinsurance No coverage Urgent Care Services Out -of- Network Out -of- Network Plan design coinsurance for non- Covered as an in- network benefit emergency services received from a non - network provider Outpatient lab and pathology Out -of- Network Out -of- Network Plan design coinsurance Covered as an in- network benefit Outpatient x -rays and other imaging Out -of- Network Out -of- Network services Plan design coinsurance Covered as an in- network benefit Prescription Drugs and Pharmacy Services OTC drugs and prescription In- Network coverage for: Plan design coinsurance In- Network • Non - sedating antihistamines Out -of- Network No coverage • Proton Pump Inhibitors Plan design coinsurance Out -of- Network • Erectile Dysfunction (ED) No coverage medications In- Network In- Network Infertility prescription drugs. Plan design coinsurance No coverage Limited to maximum benefit per Out -of- Network Out -of- Network calendar year for all infertility drugs. Plan design coinsurance No coverage Specialty Prescription Drugs Program In- Network In- Network Specialty infertility prescription drugs Preferred specialty prescription No coverage drugs: Plan design /coinsurance to a received from a designated specialty prescription drug pharmacy. Limited maximum copayment amount. to a maximum benefit per calendar Non - Preferred specialty prescription drugs: Plan design/coinsurance year for all infertility drugs. Hospital Services Outpatient services Out -of- Network Out -of- Network • Services provided in a Plan design coinsurance for non- Covered as an in- network benefit hospital emergency room emergency services received from a non - network hospital emergency room In- Network In- Network Inpatient and outpatient services for Plan design /coinsurance No coverage orthognathic surgery Out -of- Network Out -of- Network Plan design /coinsurance No coverage HUTCI IINSON UTILITIES PAGE 4 OF 7 SEPTEMBER 30, 2010 AF MEDlCA. Infertility Services (Treatment) • Office visits In- Network In- Network • E- visits Plan design /coinsurance No coverage • Outpatient services received at a Out -of- Network Out -of- Network hospital Plan design /coinsurance No coverage • Inpatient services Surgery For Weight Loss • Office visits • E- visits • Outpatient hospital services In- Network In- Network • Outpatient services received Plan design /coinsurance No coverage from a physician in a hospital Out -of- Network Out -of- Network • Inpatient services Plan design /coinsurance No coverage • Services received from a physician during an inpatient stay HUTCHINSON UTILITIES PAGF 5 OF 7 SFPTEMBER 30, 2010 AF MEWCA Renewal Predications Medica's rates are contingent upon the following assumptions: • Medica shall be the only health care plan offered by the employer. • The employer shall contribute a minimum of 50% towards the single monthly premium rate. • The minimum participation requirement is 75% of eligible employees not waiving due to other group coverage and no less than 50% of the total number of eligible employees regardless of waivers. • Renewal rates generally remain constant for twelve months; however, Medica reserves the right to make changes according to provisions in the master group contract. • If the rate sheet provided has two or more plans and with two or more sets of rates, the plans have been priced for a Custom Options arrangement, and may be offered together. If the rate sheet includes only one plan with one set of rates, the plan has been priced for a standalone offering only. • If two or more Medica plans are offered to employees and at the time of renewal any of the plans have less than 10% of the total enrollment, Medica reserves the right to terminate the plan with the low enrollment. • The renewal assumes that all new standard benefit assessment plan changes will be implemented. • If a Medica Direct HRA quote is included, the quote assumes employer funding of the HRA account at 50% of the deductible, rollover cap of 2 times the annual HRA contribution, only benefits covered under the medical plan are eligible for reimbursement, and the HRA funds are not portable. The quote is subject to change if these assumptions are modified. The vendor fees for HRA administration will be billed separately from the premium rates at the indicated PSPM rates, if the HRA account is administered by Medica. Broker commissions, if applicable, do not apply to separate fees for HRA, HSA, and FSA products. • If a quote for FSA administration is included, the fee will be billed separately from the premium rates at the indicated PSPM rate. Broker commissions, if applicable, do not apply to separate fees for HRA, HSA, and FSA products. • If a Medica Direct IISA quote is included, the quotc assumes that only a standard plan, as defined by Medica's preferred portfolio grid, will be offered. The vendor fees for the HSA fund will be billed separately from the premium rates at the indicated PSPM rates, if the HSA fund is administered by Medica. Broker commissions, if applicable, do not apply to separate fees for HRA, HSA, and FSA products. Please refer to the enclosed benefit plan(s) for specific details. HUTCI IINSON UTILITIFS PAGE 6 OF 7 SFPTFNIBFR 30, 2010 AF MEDICA SERVICES INCLUDED IN FULLY INSURED OFFERING Managed • Health Education Network Management: Including Excellent ■ Physician Support Negotiated Fee Discounts • Health and Wellness Coaching Pharmaceutical Vendor Management • Care Management Specialty Contracts for Centers of Excellence • Healthy Pregnancy Program Organ Transplants • Medica Behavioral Health Program Gastric Bypass • Population Health Initiatives Provider Education: Including Best Practice • Medica CallLink® Nurseline Services Guideline • Quality Programs: Including Full 3 -year Fit Choicess-1I by Medica Accreditation by NCQA Medica® Employee Assistance Program • Smokinz Cessation Pro am Claims, Enrollment + Billing Adimmstration • Electronic Submission of In- network Claims Coordination of Benefits through WebMD Average Turnaround Time for Claims from Date • Hardcoded System Logic of Receipt to Date Paid is 11 to 13 days • High -touch Monitoring for Unique Claims Financial Quality Rate for Claims Coding: 98% • Utilization Review of All Claims Paid • Subrogation Services Employer eServices Member • Identification Cards CallLink Services - 24 hours a day / 365 days a • Provider Directories year • Customer Service Employee Newsletter • Assistance for Special Needs Preventive Health Education • TDD / Translator Services Healthy AttitudesT-11 — Quarterly Newsletter • Integrated Call Tracking System www.mymedica.com • MainStteetMedica.com Find a Doctor Medica Account • ement Team & Support Res1 • Derlirsted Arrrmnt Service. Team HTPAA Compliance Support • Certificate of Coverage Preparation/ Printing Preparation / Set -up of Automated Banking • Open Enrollment Materials and Meetings Agreements • Master Group Contract Medica Service Center for employers and • Administrative Guide Brokers • Monthly Claims Report Indicators - Quarterly Employer Newsletter • Annual Health Care Utilization Report Health Education Consulting Services • Ad Hoc Reports, Dependent on Scope Communication Consulting Service • Web -based Automated Employer Reporting Onsite Workshops and Presentations System Regulatory Compliance • Legal Support • Information Services HUTCI IINSON UTILITIES PAGE 7 OF 7 SEPTEMBER 30, 2010 AF (D MDB MIDWEST DENTAL BENEFITS September 28, 2010 Jan Sifferath Hutchinson Utilities 225 Michigan Street SE Hutchinson, MN 55350 RE: Hutchinson Utilities MDB Group Number - 308 Contract Term: January 1, 2011 — December 31, 2011 Dear Jan: Midwest Dental Benefits has been pleased to provide dental benefits to your employees for this past coverage year. We look forward to the renewal of your dental program for the above noted contract effective date. In reviewing Hutchinson Utilities experience for this past year, we have determined the budget projections currently established do need to be adjusted for the next contract year. The projected claims for the new contract year are $51,048. The corresponding paid claim funding rates needed to cover the expected claims need to rise by 10.47% to $35.35 for Single coverage and $86.40 for Family coverage. Administrative Fee The administrative fee will increase from the current $4.23 to $4.80 PEPM. Options to Consider Hutchinson Utilities could consider adding an annual individual deductible for Basic & Major services. By including a deductible, this will help lower plan costs and projected claims. The following rates provide you with an analysis of your renewal options: Add $25/$75 Add $50 /$150 Current Renewal Deductible Deductible Employee: $36.23 $40.15 $38.25 $36.35 Family: $82.43 $91.20 $85.70 $82.70 These rates include the new admin fee of $4.80 PEPM. Any changes made to rates or plan design will become effective on January 1, 2011. If you would like to renew your contract with Midwest Dental Benefits for the next contract year, please sign and date below. Please circle which option you wish to have for the new plan year. If you would like to discuss these options, please contact me. We thank you for your business and look forward to servicing the fine employees of Hutchinson Utilities for the next contract period. Sincerely, Michael M. Birdman President, Midwest Dental Benefits Approved by: "- 4'J. 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