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HomeMy WebLinkAboutCity Council Committees - Operations - 11/03/1992 r OPERATItNS COMMITTEE tIN E LET S November 3, 1992 city Clerk COMMITTEE MEMBERS PRESENT: Christi Houser Leona Orr Jim White COUNCIL PRESENT: Jon Johnson STAFF PRESENT: Becky Fowler Roger Lubovich Tony McCarthy Alana McIalwain Devon McQuillen May Miller Rose Nelson Kelli O'Donnell Bruce Weissich MEMBERS OF THE PUBLIC: Bill Doolittle Don McDaniel Jean Parietti The meeting was called to order at 3:07 p.m. by Chairperson Houser. Approval of Vouchers No claims were approved for payment to allow the Committee members time to audit the vouchers before approval. 1993 Benefit Package Personnel Analyst Fowler informed the Committee that Human Resources is implementing a new option for health care to employees. In addition to the Blue Cross Traditional Plan, Blue Cross PPO Plan and Group Health, employees will be offered a new option which provides for some cost containments. The new p.p.o. option will have a $250 per person $750 per family deductible and will.pay 80% of medical costs with 20%picked up by the employee. Fowler noted that this was for the Council's information only. Fowler asked for approval from the Committee to authorize a third parry administrator to implement a Flexible 125 program. Fowler explained that the program is a cafeteria plan to pay�(hr medical costs with pre-tax dollars. This program allows employees to defer expenses of health premiuisn.d medical expenses as well as reimbursement for dependant care. This is a new program allowed by the Internal Revenue Services and has some strict requirements. Human Resources recommends a third party administrator to be responsible for meeting the requirements of the IRS. Committeemember White asked when a decision was required. Fowler asked for a decision today. White noted that this was a lot of information and asked what the differences were from the current base p.p.o. program. Fowler responded that the current program requires the employee to pay the first $10 of their medical visit and then covers 100% and has a$25 hospital co-payment for emergency visits. There are no claim forms and vision is included. A discussion followed comparing the programs during which it was noted that if a minimum of employees choose this option it could save the City 20%in medical 1 OP WTIONS COMMITTEE MIATES s--. November 3, 1992, Cont. contributions. Acting Finance Director Miller noted that the rapid rise in medical expenses to the City required looking at other options to keep the fund healthy. Committee Chair Houser asked if the other medical programs are going to have increased costs. Fowler replied that they would. Fowler noted that the Flexible 125 program is being proposed for implementation on January 1, 1993. Fowler introduced the Carewise program which is being looked at for implementation January 1, 1993. The program would be offered to employees at a cost to the City of$3 per employee per month. White stated that he needed to study the information presented today and look at the budget implications and requested time to study the issues until the next Operations Committee meeting. Fowler noted that the City also will save on FICA taxes if the Flexible 125 program is implemented the third party administrator will cost between eight and nine thousand dollars a year. As the discussion of medical proposals continued, Fowler noted that a meeting will be held with union officials to receive their input. Houser requested that in order to provide more time to the Committee for review, that the item be put on the next Council agenda and continued at the next Operations Committee meeting. The Committee concurred to have the item placed under Other Business on the next Council agenda and back to Committee on November 17th. Houser noted that Committeemembers would can Human Resources if they had any questions. Miller added that the financial information in the handout also includes the historical costs of the medical program and shows that by the end of 1993 there will be a deficit in the fund if the current trends continue. White asked if the $280,000 was the savings predicted. Miller replied that is the projection if 30% of the current Blue Cross members switch to the new option. Chief Administrative Officer White asked why this item was coming to this Committee. Houser asked if it was on the Council agenda for this evening. McCarthy responded that it will be at the next meeting. White requested that it be placed under Other Business. Lubovich noted that the agenda for tonights Council meeting was kept light due to the election. A discussion followed of the agenda for the next Operations Committee. It was agreed to begin the meeting on November 17th at 2:00 p.m. Orr moved to have the Chief Administrative Officer moved to the full Council without a recommendation under Other Business at the November 17th meeting. The motion was seconded and passed 3-0 in favor. Representation Before Agencies Outside City City Council Member Johnson stated that the resolution is self-explanatory. It requires anyone representing the City to consult with the Council before making policy decisions. White noted that at a meeting he attended this morning that there were things that came up for a decision that do not allow time to come back to the Council Johnson noted that it is not so much operational items as much as policy items such as at METRO and the decision of Suburban Cities Association for full time staffing on which the City needs to take a position. Lubovich noted that there was a provision stating whenever feasible as well as referring to major policy issues in the resolution. Lubovich asked in regards to the Mayor's position if his appointment to a committee is by statute as Mayor versus an independent entity would this apply. Johnson replied that it would not apply as long as it was not obligating the City or enacting policy on behalf of the City. 2 r OPIVATIONS COMMITTEE MITES November 3, 1992, Cont. Bill Doolittle asked if it would include reporting back to Council on behalf of lobbyists. Lubovich replied that is a contractual relationship. Houser noted that the resolution would be for elected officials acting on behalf of the City. After a brief discussion,White moved to approve the resolution as amended by the City Attorney, Orr seconded the motion which passed unanimously. The meeting was adjourned at 3:55 by Chairperson Houser. 3 R OPERAT - NS COMMITTEE 14INUTES November 3, 1992 City Clerk COMMITTEE MEMBERS PRESENT: Christi Houser Leona Orr Jim White COUNCIL PRESENT: Jon Johnson STAFF PRESENT: Becky Fowler Roger Lubovich Tony McCarthy Alana McIalwain Devon McQuillen May Miller Rose Nelson Kelli O'Donnell Bruce Weissich MEMBERS OF THE PUBLIC: Bill Doolittle Don McDaniel Jean Parietti The meeting was called to order at 3:07 p.m. by Chairperson Houser. Approval of Vouchers No claims were approved for payment to allow the Committee members time to audit the vouchers before approval. 1993 Benefit Package Personnel Analyst Fowler informed the Committee that Human Resources is implementing a new option for health care to employees. In addition to the Blue Cross Traditional Plan, Blue Cross PPO Plan and Group Health, employees will be offered a new option which provides for some cost containments. The new p.p.o. option will have a $250 per person $750 per family deductible and will pay 80% of medical costs with 20%picked up by the employee. Fowler noted that this was for the Councfi's information only. Fowler asked for approval from the Committee to authorize a third party administrator to implement a Flexible 125 program. Fowler explained that the program is a cafeteria plan to pay for medical costs with pre-tax dollars. This program allows employees to defer expenses of health premimmiand medical expenses as well as reimbursement for dependant care. This is a new program allowed by the Internal Revenue Services and has some strict requirements. Human Resources recommends a third party administrator to be responsible for meeting the requirements of the IRS. Committeemember White asked when a decision was required. Fowler asked for a decision today. White noted that this was a lot of information and asked what the differences were from the current base p.p.o. program. Fowler responded that the current program requires the employee to pay the first $10 of their medical visit and then covers 100% and has a$25 hospital co-payment for emergency visits. There are no claim forms and vision is included. A discussion followed comparing the programs during which it was noted that if a minimum of employees choose this option it could save the City 20% in medical 1 1 Jr OPE,MTIONS COMMITTEE MI ES November 3, 1992, Cont. contnbutions. Acting Finance Director Miller noted that the rapid rise in medical expenses to the City required looking at other options to keep the fund healthy. Committee Chair Houser asked if the other medical programs are going to have increased costs. Fowler replied that they would. Fowler noted that the Flexible 125 program is being proposed for implementation on January 1, 1993. Fowler introduced the Carewise program which is being looked at for implementation January 1, 1993. The program would be offered to employees at a cost to the City of$3 per employee per month. White stated that he needed to study the information presented today and look at the budget implications and requested time to study the issues until the next Operations Committee meeting. Fowler noted that the City also will save on FICA taxes if the Flexible 125 program is implemented the third parry administrator will cost between eight and nine thousand dollars a year. As the discussion of medical proposals continued, Fowler noted that a meeting will be held with union officials to receive their input. Houser requested that in order to provide more time to the Committee for review, that the item be put on the next Council agenda and continued at the next Operations Committee meeting. The Committee concurred to have the item placed under Other Business on the next Council agenda and back to Committee on November 17th. Houser noted that Committeemembers would call Human Resources if they had any questions. Miller added that the financial information in the handout also includes the historical costs of the medical program and shows that by the end of 1993 there will be a deficit in the fund if the current trends continue. White asked if the $280,000 was the savings predicted. Miller replied that is the projection if 30% of the current Blue Cross members switch to the new option. Chief Administrative Officer White asked why this item was coming to this Committee. Houser asked if it was on the Council agenda for this evening. McCarthy responded that it will be at the next meeting. White requested that it be placed under Other Business. Lubovich noted that the agenda for tonights Council meeting was kept light due to the election. A discussion followed of the agenda for the next Operations Committee. It was agreed to begin the meeting on November 17th at 2:00 p.m. Orr moved to have the Chief Administrative Officer moved to the full Council without a recommendation under Other Business at the November 17th meeting. The motion was seconded and passed 3-0 in favor. Representation Before Agencies Outside City City Council Member Johnson stated that the resolution is self-explanatory. It requires anyone representing the City to consult with the Council before making policy decisions. White noted that at a meeting he attended this morning that there were things that came up for a decision that do not allow time to come back to the Council Johnson noted that it is not so much operational items as much as policy items such as at METRO and the decision of Suburban Cities Association for full time staffing on which the City needs to take a position. Lubovich noted that there was a provision stating whenever feasible as well as referring to major policy issues in the resolution. Lubovich asked in regards to the Mayor's position if his appointment to a committee is by statute as Mayor versus an independent entity would this apply. Johnson replied that it would not apply as long as it was not obligating the City or enacting policy on behalf of the City. 2 OPTIONS COMMITTEE MITES November 3, 1992, Cont. Bill Doolittle asked if it would include reporting back to Council on behalf of lobbyists. Lubovich replied that is a contractual relationship. Houser noted that the resolution would be for elected officials acting on behalf of the City. After a brief discussion,White moved to approve the resolution as amended by the City Attorney, Carr seconded the motion which passed unanimously. The meeting was adjourned at 3:55 by Chairperson Houser. 3