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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