BY COUNCILOR KRAUSE:
RESOLVED, that the proper city officials are hereby authorized to renew the agreement with Minnesota Mutual Life to provide group term life insurance coverage for city employees and retirees in accordance with the Group Policy No. 28410-G, and amendments, on file with the city clerk’s office, during the years 2008 and 2009 at the amounts specified in various bargaining unit contracts, under which agreement the city will purchase such insurance at a rate of $.26 per thousand per month, at an estimated cost of $160,739 each year, which shall be payable from various funds and agencies.
STATEMENT OF PURPOSE: Bids were solicited through the request for proposal process and after comparison, contract renewal with Minnesota Mutual Life is recommended. This resolution renews an agreement with Minnesota Mutual Life to provide the city’s group term life insurance for the years 2008 and 2009. Last year’s rate was $.36 per thousand per month. The rate for both years is $.26 per thousand per month for an estimated cost of $160,739 each year. The reduced rate results in an estimated cost savings of nearly $60,000 in each year.