11-10-98313
Board of Directors Room
City Hall - 500 W. Markham
Little Rock, Arkansas
November 10, 1998 - 4:05 P.M.
The Board of Directors of the City of Little Rock, Arkansas, reconvened from the
November 2, 1998 regular meeting with Mayor Jim Dailey presiding. City Clerk Robbie
Hancock called the roll with the following Directors present: Directors Wilson, Hinton,
Hodges, Cazort, Keck, Joyce, Wyrick, and Kelly - total 8; Absent - Directors Adcock and
Kumpuris - total 2. (Note: Director Wilson was in communication by telephone while
viewing the meeting on the government access cable television channel in her home.
Ordinance No. 17,854, passed November 2, 1998, defined the word present to include
attendance by electronic means from within the City. Mr. Bruce Moore, Assistant to the
City Manager, was present with Director Wilson pursuant to Section 1(b) of the
Ordinance.)
With a quorum present, Mayor Dailey declared the Board of Directors in session
and stated the purpose of the reconvened meeting was to consider the Resolution to
provide health insurance coverage for City employees, which had been deferred from
October 20, 1998 and November 2, 1998; and to consider a Resolution regarding Village
Square Apartments.
At 4:06 P.M. Directors Keck, Wyrick, and Kelly recused themselves from the
meeting due to a conflict of interest regarding the health insurance issue. Director Keck
is employed by St. Vincent Infirmary Medical Center, Director Wyrick is on the Board of
Southwest Hospital, and Director Kelly's wife is a physician. Director Adcock enrolled
at 4:07 o'clock P.M. and immediately recused because she is also on the Board of
Southwest Hospital. Director Kumpuris enrolled at 4:10 o'clock P.M. and recused
because he is a physician.
Consideration was then given to the proposed Resolution entitled:
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH HEALTH ADVANTAGE TO PROVIDE HEALTH
INSURANCE COVERAGE FOR CITY EMPLOYEES FOR A ONE YEAR
PERIOD EFFECTIVE JANUARY 1, 1999.
Following the reading of the Resolution, City Manager Cy Carney explained the proposal
of Health Advantage to provide health insurance coverage for City employees for a one
year period. He said that earlier in the year the City staff visited with the three organized
employee bargaining units regarding the need to continue the employee insurance
coverage and given the fact that the current provider (Prudential) had indicated there
would be a major increase in premium cost for 1999, staff determined that the City
should proceed with the formal competitive bidding process for health insurance
coverage. In conclusion he said staff believes this provider meets the specifications and
he recommended that the Board award the contract to Health Advantage. There are two
choices for the Board - either approve this competitive low bid or reject all bids. This
low bidder will provide no additional increase for the City. Mr. Gene Tucker, a Little
Rock firefighter, spoke in support of the Resolution from an employee's standpoint, and
urged the Board to vote for Health Advantage. Mr. David Johnson, Marketing Director
with United Health Care, said he was not speaking as a disgruntled bidder, but wanted to
recommended a dual option. He said there is language in the RFP that indicates there is a
possibility that a dual option could take place. That is what he requested. He then
explained the proposal of United Health Care and compared it to the plan the City now
has and pointed out that St. Vincent Hospital and UAMS would be utilized under United
Health Care but will not be with Health Advantage. His request was that the Board allow
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Minutes - Reconvened Meeting
November 10, 1998
Health Advantage and United Health Care as two options for City employees. That
would encompass every hospital and every physician in the City of Little Rock. He said
St. Vincent and UAMS would not be included in Health Advantage. He asked the Board
to allow Health Advantage and United Health Care to provide the insurance coverage.
Mr. Jim Bailey, representing Health Advantage, said he hoped the Board would select
Health Advantage and enjoy the same relationship as with Prudential the last 17 years.
Health Advantage has met all the requirements for HMO and also point of service plan.
Mr. Russ Harrington, representing Baptist Medical Center, said he was pleased that
the City recommended Health Advantage and Baptist. We are committed to the City of
Little Rock. Mr. Mike Verkler, a Little Rock Police Officer, said employee concerns are
quality care, customer service, and cost; and he believed that Health Advantage could
provide those needs. He was not in favor of a dual option. Director Cazort said he would
like to begin the bidding process earlier in the year, possibly July or August, so the Board
would have more time to review the proposals. Director Hinton said he wished the Board
had more time to review the proposals; he thought a dual plan would give better
coverage; and he was not comfortable with the number of hospitals Health Advantage
provides - employees should have a larger choice. Mr. Bailey said Arkansas Children's
Hospital is an integral part of the network. Also, Health Advantage has an agreement
with UAMS to provide services that are not typically provided by Baptist. Following the
discussion, Director Hodges moved for adoption of the Resolution and the motion was
seconded by Director Cazort. A roll call vote was taken on adoption of the Resolution as
follows: Ayes - Directors Wilson, Hodges, Cazort, Joyce, and Mayor Dailey - total 5;
Noes - Director Hinton - total 1; Absent - Directors Keck, Wyrick, Kumpuris, Kelly, and
Adcock - total 5. Since the Resolution did not receive the required six (6) votes, Mayor
Dailey announced that the Resolution had FAILED.
City Manager Cy Carney expressed his disappointment that the Resolution failed.
He explained that the City Board must by six affirmative votes approve some sort of
health care coverage for City employees before the end of the year. Our health care
coverage for all city employees will end on December 31, 1998. He asked for direction
from the Board as to what to do next. Mayor Dailey said he didn't see an option to
continue the present coverage because of the cost factor ($449,000 increase). He said
there had been some discussion regarding an Attorney General's Opinion that, as a
member of the Arkansas Municipal League, the City could be covered by Arkansas
Municipal League without going through the bidding process. Mr. Carney responded that
he had consulted with City Attorney Tom Carpenter, and his opinion was that the City
could not just do nothing and continue under the present contract, nor was it an option to
subscribe to the Arkansas Municipal League service without taking bids. Mayor Dailey
then asked Director Hinton if there is anything that we can do to answer his questions and
move this issue forward. Director Hinton's concern was that there were not enough
hospital outlets. Mr. Bailey noted that hospitals in Conway, Cabot, and Saline County
are in the network because not all employees live in the City. Director Hinton said he had
talked to a lot of employees that said they would not be covered under Health Advantage
medical facilities. Mr. Bailey responded that employees have the flexibility of using
other facilities, but the reimbursement will not be the same. Director Hodges noted that
this contract is only for one year and suggested that Director Hinton chair a committee to
begin in January to become very active in the renewal of the health insurance coverage
next year. Mayor Dailey was supportive of Director Hodge's suggestion. After further
discussion, Director Hinton agreed to reconsider the health coverage issue at the
regular meeting on Tuesday, November 17, 1998.
P.M.
Directors Wyrick, Kumpuris, Kelly and Adcock re- enrolled at 4:58 o'clock
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November 10, 1998
The next presentation was Resolution No. 10,404, described as:
A RESOLUTION AUTHORIZING THE CITY MANAGER TO PROCEED
WITH THE PROCESS TO DESIGNATE PHILANDER SMITH COLLEGE
COMMUNITY DEVELOPMENT CORPORATION (CDC) AS THE ENTITY TO
ENTER INTO A SALE CONTRACT WITH U.S. HOUSING AND URBAN
DEVELOPMENT (HUD) FOR ACQUISITION OF VILLAGE SQUARE
APARTMENTS. (Located at 1509 Chester Street.)
City Manager Cy Carney that the Village Square Apartments have been of concern to the
community for some time, and recommended that the City act as facilitator. HUD has
recognized the City's competitive bidding process, so title will transfer from HUD to
Philander Smith College CDC; therefore, the City does not have a liability now or in the
future related to asbestos or any other title issues. Director Hodges emphasized that the
City is not in the chain of title on this property and will not have any exposure in terms of
the transition. Dr. Trudie Kibbe Reed said Philander Smith College is very excited
about sharing in a partnership with Philander Smith CDC and this is a strong partnership.
Mr. Robert Pruitt, Executive Director of the Philander Smith Community Development
Corporation (CDC), said the title will be between Philander CDC and HUD, thereby
leaving out the City of Little Rock in the liability chain. He said the CDC will continue
to have a very close working relationship with Philander Smith College. Following the
reading of the Resolution, Director Kumpuris moved for its adoption. The motion was
seconded by Director Kelly and the Resolution was unanimously adopted by the
following roll call vote: Ayes - Directors Wilson, Hinton, Hodges, Cazort, Joyce,
Wyrick, Kumpuris, Kelly, Adcock, and Mayor Dailey - total 10; Noes - None; Absent -
Director Keck - total 1.
There being no further business to be presented, the reconvened meeting was
adjourned at 5:10 o'clock P.M.
ATTEST:
City Clerk Robbie Hancock
3
APPROVED:
j4A - j or Jim Dailey