10-12-04Little Rock Board of Directors Reconvened Meeting
Minutes
October 12, 2004
4:00 PM
LITTLE ROCK BOARD OF DIRECTORS MEETING
MINUTES
City Hall — 500 W. Markham
October 12, 2004
4:00 PM
The Board of Directors of the City of Little Rock, Arkansas met in a reconvened session
with Mayor Dailey presiding. The meeting was reconvened from October 5, 2004. City
Clerk, Nancy Wood called the roll with the following Directors Present: Vice Mayor
Hinton, Keck, Adcock, Hurst, Graves, Wyrick, Cazort, Kumpuris and Mayor Dailey.
Director Stewart was absent. Director Pugh enrolled at 5:20 pm.
1. RESOLUTION NO. 11,841 - To authorize the City Manager to execute a contact
extension with Health Advantage to provide 2005 health care coverage from city
employees; and for other purposes. (Deferred from 9 -21 -04 for discussion purposes.)
There was lengthy discussion both for and against the renewal of the health insurance
contract. Mr. Ed Adcock, representing Farris Hensley, city employee whose dependent
was excluded for treatment of an eating disorder, and Don Meyers, Pat Planek, Don
Zimmerman, Executive Director of the Arkansas Municipal League, spoke in opposition
to the renewal, asking the Board to choose a self - funding plan that would offer lower
employee premiums than Blue Cross' Health Advantage plan. Mr. Zimmerman, stated
they were a not for profit organization. This would be a chance for the city to have a self -
funding insurance. He stated that all the hospitals in Little Rock were in their network.
Health Advantage representatives, in response to a question asked at the last meeting,
told the Board that medical conditions arising from eating disorders are specifically
excluded from coverage. They used the example of a person suffering form anorexia
nervosa that experienced kidney failure; Health Advantage could not cover the treatment
because it is an excluded coverage. They also looked at the example of an alcoholic
having liver failure and needing a liver transplant, saying that Health Advantage would
cover the transplant because alcoholism isn't an excluded condition under the company's
contract. Mr. Ed Jaros, representing Fire Department Union Local 34, encouraged the
board to renew the contract. He cited an example of a colleague whose young child is in
need of three organ transplants and the family had racked up more that $1 million in
medical bills. He stated that the Municipal League plan does not fully cover annual
wellness examinations for people under 45, that the Municipal League's Plan has caps on
its catastrophic coverage, $200,000 annually, $1 million lifetime, $100,000 on organ
transplants and $100,000 on newborns, where as Health Advantage's coverage is
Little Rock Board of Directors Reconvened Meeting
Minutes
October 12, 2004
4:00 PM
significantly higher and there is no annual maximum. He stated that the Municipal
League has exclusions for anything that deals with alcoholism and alcohol related illness,
so they do have exclusions in their policy. Mr. Jaros, stated, not to disrespect to his
fellow city employee, Mr. Hensley, but there are a lot more issues with alcohol problems
in the city that with eating disorders. Mr. Jaros stated that all three employee groups
after meeting, said they wanted to stay with Health Advantage, but they did want to look
at options during the coming year, and would like for the insurance committee to meet
and work throughout the year to find solutions for the problems. He asked the Board to
extend the contract for another year and work on the difference over the next year, and
take a closer look next year, and to start the process early. Mr. Silas Roaf and Cory
Burk, City employees were in support of the extension, but stated they would like the
committee to look at options in the coming year. Mr. Bruce Moore, City Manager,
stated the City is in the second year of a contract bid with Health Advantage, and for the
past two years, even with the opportunity to renew, recommended to the Board that the
City go out for bids, which was done. This year after review of the proposal to renew
from Health Advantage, he recommended that the City extend this contract for one more
year. Mayor Dailey stated the Board can either adopt the extension or turn it down. If
it's turned down, that opens up several choices, one being to open this up for bid and take
proposals from various companies that are out there, including the plan from the
Municipal League. The other would be to give policy directive from the Board that
would be contrary to the City Attorney's opinion but would be in concert with the
Attorney Generals Opinion, and to say move forward with the Arkansas Municipal
League. Mayor Dailey stated he would love to see, and has for several years felt there
was wisdom and maybe value in moving forward with the Arkansas Municipal League,
however, tonight in the best interest of questions that are still out there, as well as
different sentiments that are here, would support the recommendation to go forward with
the resolution which would extend the Health Advantage Contract for one year. In
addition to that, which he stated he had discussed with Director Hurst earlier today, asked
her if she would be willing to lead a committee that could include Board members, and
others, possibly the city committee, and by the second quarter of next year, have
discussion with the League, with city staff, bring in to the discussion the Cities of Ft.
Smith and Fayetteville, which are considering the League Plan and ways to address a self
funded plan through the Arkansas Municipal League; to bring an even larger number of
City employees and North Little Rock into the fold to be part of the discussions. Director
Cazort said he agreed that Health Advantage is a fine company, and had no problems
with their insurance, but did not think that the City had fully explored the options of self -
funding at this point. He said he had read the Attorney General's Opinion, and did not
think there is an answer as to what the City's options are in detennining to self fund
without bidding. He stated it was probably too late to put this out for bidding in time to
get anything put in place for next year that September and October is still not early
enough to work through this. He stated it appeared that the major concern with the
Municipal League Plan is the cap limits and in the past had suggested looking into
creating a self reserve fund for the City, or using the premium savings to buy catastrophic
policies with high deductibles that match the cap limits on the Municipal League.
Director Cazort stated he did not believe everything has been looked at, and if it was
something to be voted on tonight, his vote would be no. Director Adcock stated
Little Rock Board of Directors Reconvened Meeting
Minutes
October 12, 2004
4:00 PM
insurance and CATA always comes to the Board too late. She stated she had heard from
three union groups, and heard from a group made up of city employees, and said she
would support this tonight because she felt the employees should have the say in which
plan to choose. She stated she was reluctant to vote for this but since Mr. Moore had
assured the Board that this issue would be looked into in depth before it comes to the
Board again, she would be voting in favor of the extension Director Adcock asked that
CATA funding be discussed within the second quarter of the coming year. She wanted to
look at the insurance issue with all the unions, the employee group, and with Director
Hurst's group to be sure the city is getting the best insurance coverage for the employees.
Mr. Moore stated he and the Mayor had visited today, and was supportive of reviewing a
self - insured plan. Mr. Moore stated he had noted to the Board, that the "any willing
provider" issue will be decided in the next few months, and felt it would impact health
care dramatically and concurred with the Mayor on working with Director Hurst and
various employee committees to study and make a recommendation by the end of the
second quarter of 2005. Vice Mayor Hinton stated he is in favor of looking at
alternatives for health insurance, but would be in support of voting in favor of the
recommendation the City Manager has made to extend the Health Advantage contract for
one year. Director Pugh stated she would be supporting the extension of the Health
Advantage contract due to employee support for the extension, but was in favor of
looking at various sources in the coming year. The resolution was read. Director Hurst
moved for the adoption of the resolution, Vice Mayor Hinton seconded the motion. A
roll call vote was taken and recorded as follows: Director Pugh, yes, Hurst, yes, Cazort,
no, Wyrick, no, Graves, yes, Adcock, yes, Vice Mayor Hinton yes, Mayor Dailey, yes.
The resolution was adopted. Director Stewart was absent. Directors Keck and
Kumpuris recused.
2. MOTION - Z -7672 — To set the date of public hearing for 11 -23 -04 on a petition to
rescind the Planning Commission's action in denying a special use permit for a day care
family home located at 8701 Verbena Drive. Planning Commission: 4 yes, 6 no, 1
absent. Staff recommends denial of the special use permit.
A motion was made by Director Cazort, seconded by Director Adcock to adopt the
motion to set the date of public hearing. By unanimous voice vote of the Board members
present, being two - thirds in number, the motion carried.
Director Hurst, seconded by Vice Mayor Hinton moved to adjourn the meeting. By
unanimous voice vote of the Board members present, the meeting was adjourned.
ATTEST:
r CSC/
Na y Wood City Clerk
APPROVED:
Jim iley, Mayor