IRON MOUNTAIN — A change in health care coverage for city of Iron Mountain retirees is being explored, carrying a potential savings of nearly $500,000 annually.

The change for those age 65 and older would involve a switch from a Medicare supplement plan to a Medicare Advantage plan, City Manager Jordan Stanchina said. During a discussion with the city council Monday, he noted that a number of questions remain, including coverage equivalency, available providers and prescription options.

A preliminary estimate, however, shows the current $793,888 paid per year dropping to $298,977.

“Some of that savings could be reduced because there is a possibility that a switch to Medicare Advantage could raise the rates on active employees and early retirees (those under 65),” Stanchina said in a memo to the council.

Although the city began phasing out retiree health benefits for new employees in 2009, it has outstanding liabilities estimated at $38.5 million. Retiree health benefits are budgeted at $1.44 million in the current fiscal year.

In addition, to meet the requirements of a 2017 state law, a Retiree Health Insurance Trust Fund has been established by the city with annual contributions of $139,000. That allocation is rising to $239,000 annually, but the amount could be lowered if an insurance change proves fruitful, Stanchina said.

Council member Pam Maule asked if the city could move out of Medicare Advantage if rates or other factors change, and Stanchina said that must be addressed as well.

In other action, the council:

— Awarded a bid for a trailer-mounted heated pressure washer with culvert jetter hose to Midway Rentals and Sales of Kingsford for $20,510. Although Technology International Inc. offered a price of $18,450, its nearest repair facility is south of Milwaukee, Wis., Public Works Supervisor Scott Thomas said. The Landa unit offered by Midway has better reviews, quicker delivery, a superior warranty and local service, he added. The equipment is mainly used to thaw frozen sewer lines.

— Scheduled a public hearing for 6 p.m. March 21 on a proposed zoning change that reduces the minimum off-street parking requirements for drive-in restaurants. The current requirement of one parking space for every 30 square feet of usable floor area puts the city’s ordinance on the high end of minimum parking, Stanchina said. With the change, the minimum would fall to one parking space for every 45 square feet of usable floor area.

— Approved a final payment of $14,145 to Hebert Construction of Iron River for a West C Street utility upgrade that was largely completed in 2020. The project ended up $8,827 lower than the original contract price of $1,395,279. It covered five blocks of West C Street from Carpenter Avenue west to Lake Street, plus two blocks of Lake Street.

— Agreed to pay an additional $879 to P.J. Kortens and Company Inc. of Appleton, Wis., to complete water system telemetry upgrades. The original quote was $20,005 to repair damage from a December lighting strike, with the bulk of the cost covered by an insurance claim. The adjustment was due to higher labor rates after Jan. 1 and the need for an upgraded switch, Stanchina explained.

— Approved a contribution of $2,000 to the Iron Mountain-Kingsford Community Schools summer recreation program.

Jim Anderson can be reached at 906-774-3500, ext. 226, or janderson@ironmountaindailynews.com.