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HomeMy WebLinkAboutCity Council Committees - Operations - 03/02/2010 KEN, WASHINGTON OPERATIONS COMMITTEE MINUTES MARCH 2, 2010 Committee Members Present: Debbie Raplee, Jamie Perry and Ron Harmon The meeting was called to order by Jamie Perry at 4:08 p.m. Ron Harmon represented Les Thomas in his absence. 1. APPROVAL OF MINUTES DATED FEBRUARY 16, 2010 Raplee moved to approve the minutes of the February 16, 2010 Operations Committee meeting. Harmon seconded the motion, which passed 3-0. 2. MOVE TO APPROVE THE VOUCHERS DATED JANUARY 31, 2010 AND FEBRUARY 15, 2010 Harmon moved to approve the vouchers dated January 31, 2010 and February 15, 2010. Raplee seconded the motion, which passed 3-0. 3. I MOVE TO RECOMMEND THAT THE PREMERA BLUE CROSS ADMINISTRATIVE SERVICES CONTRACT FOR THE CITY'S SELF-INSURED HEALTH PLAN BE PLACED ON THE CITY COUNCIL CONSENT CALENDAR FOR THE MARCH 16, 2010 MEETING. The city contracts with Premera Blue Cross as a third-party administrator (TPA) to process claims and provide access to Premera Blue Cross's PPO network of doctors and hospitals. The city is self-insured for this program and wires the weekly claims cost to Premera Blue Cross for our medical and prescription expenses. Approximately 94% of the city's employee population is covered under the self-insured Premera Blue Cross program totaling 2,300 lives, which also includes our LEOFF I retirees and their dependents. The 2010 contract reflects a 60/c increase in administrative fees by Premera Blue Cross and is budgeted in the health and welfare fund. The employees will not be affected by the increase. The budget impact of the contract is $690,143. Raplee moved to recommend that Council place on the City Council consent calendar for the March 16, 2010 meeting, the Premera Blue Cross Administrative Services Contract for the city's self-insured health plan. Harmon seconded the motion, which passed 3-0. Operations Committee Minutes February 16 2010 Page: 2 4. MOVE TO APPROVE THE LIFEWISE ASSURANCE COMPANY FOR THE CITY'S STOP LOSS COVERAGE BE PLACED ON THE CITY COUNCIL CONSENT CALENDAR FOR THE MARCH 16, 2010 MEETING. The City is switching to Life Wise Assurance coverage for 2010 stop loss coverage. Sun Life quoted a 10% increase for 2010 stop loss insurance and LifeWise Assurance Company's quote was a 5.5% increase for 2010. Moving the city's stop loss coverage to LifeWise Assurance Company provides an approximate savings of $30,000 for 2010. All City employees and their dependents that are enrolled in the City's self-insured medical program are covered under a stop loss insurance policy. This stop loss policy provides added coverage to the City for individual medical claims exceeding $150,000 per employee or dependent for each calendar year All medical costs exceeding $150,000 per enrollee per year will be reimbursed to the City under this policy. Stop loss insurance is budgeted in the health and wellness fund. The cost of the contract is $461,369. Raplee questioned why we are getting the contracts so late if they are in place January 1. Fowler explained Sun Life's process and that that Sun Life waits to see how the City's claims are doing prior to submitting a quote. We did not get the quote until December 23 of 2009. They Mayor signs an application at that time to ensure there is coverage in the event of a loss in January, before the contracts go to council. Harmon moved to approve the LifeWise Assurance Company for the city's stop loss coverage be placed on the city council consent calendar for the March 16, 2010 meeting. Raplee seconded the motion, which passed 3-0. F v j Operations Committee Minutes February 16 2010 Page: 3 S. MOVE TO RECOMMEND THE 2010 GROUP HEALTH COOPERATIVE CONTRACT FOR THE CITY'S INSURED HMO PLAN BE PLACED ON THE CITY COUNCIL CONSENT CALENDAR FOR THE MARCH 16, 2010 MEETING. Renewal of the Group Health Cooperative of Puget Sound contract for the City's insured health maintenance organization (HMO). The 2010 contract reflects an approximate 12 29/0 increase in the health care premiums charged by Group Health Cooperative and is budgeted in the health and welfare fund Approximately 39 employees and their families are covered under our Group Health Cooperative plan. The cost of the insurance is $499,021. The cost for the insurance has been increasing every year. Fowler expressed that because they are an insured plan, the City has no control over the cost of the insurance. The premium is higher for employees than Premera Blue Cross. Perry started the discussion regarding whether to continue offering this coverage when it is so expensive Fowler explained it is an additional option for the employees. It is the long-term employees that have the coverage and they have established doctors. Fowler noted that most new hires choose Premera as their insurance provider. Harmon commented on the lateness of the contract and Fowler said they will try to get them earlier next year. The committee requested the city only offer Premera Blue Cross to new h i res. Raplee moved to recommend the 2010 Group Health Cooperative contract for the City's insured HMO plan be placed on the City Council consent calendar for the March 16, 2010 meeting. Harmon seconded the motion,which passed 3-0. 6. MOVE TO RECOMMEND THAT THE WASHINGTON DENTAL SERVICE (WDS) ADMINISTRATIVE SERVICES CONTRACT FOR THE CITY'S SELF-INSURED DENTAL PROGRAM BE PLACED ON THE CITY COUNCIL CONSENT CALENDAR FOR THE MARCH 16, 2010 MEETING. The city contracts with Washington Dental Service (WDS) as a third-party administrator (TPA) to process claims and provide access to WDS PPO network of dentists. The city is self- insured for this program and will wire the monthly claims cost to WDS for our dental expenses All of the cty's employee and dependent population are covered under the self- insured Washington Dental Service (WDS) program totaling 2,300 lives Included in this coverage is our LEOFF I retirees and their dependents. The 2010 contract reflects an approximate 5.5% increase in administrative fees for 2010 and is budgeted in the health and wellness fund. This is a considerable savings from Premera Blue Cross. Harmon moved to recommend that the Washington Dental Service(WDS)Administrative Services contract for the cty's self-insured dental program be placed on the City Council consent calendar for the March 16,2010 meeting. Raplee seconded the motion,which passed 3-0. Operations Committee Minutes February 16 2010 Page: 4 7. MOVE TO AUTHORIZE THE MAYOR TO ENTER INTO A ONE-YEAR LEASE AGREEMENT WITH XEROX CORPORATION FOR ONE BLACK AND WHITE AND ONE COLOR HIGH-SPEED COPIER PRINTER(S) PER THE ATTACHED AGREEMENT. This agreement extends the expired five-year lease on two of the three copiers in the print shop - by 12 months through mid April 2011. The print shop has traditionally had one color and two black & white high-end production copier(s). Copiers are leased through an RFP process approximately every five years both in the print shop and as fleet copiers through the City The print shop lease for the existing copiers has expired and we are on a month to month lease with the remaining equipment. Raplee moved to authorize the Mayor to enter into a one-year lease agreement with Xerox Corporation for one black and white and one color high-speed copier printer(s) per the attached agreement. Harmon seconded the motion, which passed 3-0. S. MOVE TO RECOMMEND COUNCIL APPROVE THE CONSOLIDATING BUDGET ADJUSTMENT ORDINANCE FOR ADJUSTMENTS MADE BETWEEN JULY 1, 2009 AND DECEMBER 31, 2009 TOTALING $49,803,177. Authorization is requested to approve the technical gross budget adjustment ordinance totaling $49,803,177 for budget adjustments made between July 1, 2009 and December 31, 2009. The net amount, excluding transfers and internal service charges, is $48,372,778 Please note that $48,369,155 was previously approved by Council. These were primarily for 2009 Water and Drainage revenue bonds, as well as refunding the 1999 bonds. The net amount of $1,434,022 not yet approved by Council, is for the allocation of dedicated revenues and authorizing expenditures as well as Street Fund cost allocation. There was much discussion and questions from the committee regarding the adjustments. Because the committee had lingering questions they motioned to table the item Committee Year-end budget will be presented in April at the first council meeting. Raplee moved to table to the March 16 Operations Committee Meeting, the recommendation to council to consolidate the budget adjustment ordinance for adjustments made between July 1, 2009 and December 31, 2009 totaling $49,803,177. Harmon seconded the motion, which passed 3-0. The meeting adjourned at 4:38 p.m. by Perry. i Pamela Clark Operations Committee Secretary