By KALEY CONNER

kconner@dailynews.net

When it came time to renew employee health insurance, city staff was presented with a 44.5 percent rate increase in premiums from its current provider, Preferred Health Systems.

Anticipating a significant raise in 2010 rates, the city hired a consultant to negotiate rates. At next week's Hays City Commission meeting, commissioners will consider contracting with a different company.

The consultant, Julie Yarmer of Freedom Claims Management, and city staff have recommended a full-coverage policy from Blue Cross Blue Shield of Kansas. The city commission discussed the issue at Thursday's work session.

This change would result in a 16.7 percent premium increase from the city's 2009 premiums, equating to $8,795 per employee. The amount is 7.7 percent higher than was budgeted for in 2010.

"We have contractual obligations with three groups of employees, and we're going to keep those obligations. We're going to provide this kind of insurance," Commissioner Henry Schwaller IV said. "Going forward, we need to re-evaluate, because we cannot afford to pay these premium increases."

The significant increase is partly due to large claims that adversely affected overall claims for 2009.

Commissioners also agreed the city should explore initiatives to help keep employees healthy and take proactive measures.

"You have to be proactive instead of reactive, or you have the large dollar claims," Yarmer said.

In other business:

* The commission discussed a possible ordinance to revise current legislation regulating solicitors and peddlers within city limits. Commissioners agreed such an ordinance might not be necessary at this time and will be presented with an ordinance to repeal the legislation at next week's meeting.

The commission also discussed the possibility of an education initiative so the public is informed of how they can control solicitation at their residences.

* An engineering study for sewer services at the sports complex site will be on next week's agenda for action.

* An updated master plan for Hays Regional Airport will be presented at next week's meeting.

* Commissioners heard an update on the 2010 swim season.

* Revisions to the garbage collection and disposal ordinance will be acted on next week.

* The purchase of new bleachers for Stramel and Glassman ball fields will be acted on next week.

* Vice Mayor Chris Channell was absent.