Loading...
12-08-2014 MinutesJ L 14-0374 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS December 8, 2014 4:00 p.m. The City Commission convened at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City -County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Aaron Householter (presiding), Commissioners Jon R. Blanchard, Kaye J. Crawford, Trent Davis, and Randall R. Hardy. Also present: Rod Franz, Finance Director; Greg Bengtson, City Attorney; and Miki Orr-Muths, Administrative Assistant III. AWARDS AND PROCLAMATIONS None. CITIZEN FORUM Norman Mannel, 7532 W. Pleasant Hill Road expressed his opinion on the action that overturned the decision to demolish St. John's hospital. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve minutes of December 1, 2014. (6.2) Resolution No. 14-7160 describing the corporate limits of the City of Salina. (6.3) Resolution No. 14-7161 authorizing the City Manager to enter into an agreement for life insurance services with Reliance Standard. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 14-7158 and Resolution No. 14-7159 establishing the Urban Functional Classification System and the Urban Boundary lines for the City of Salina. Dan Stack, City Engineer, explained the updates requested by the Commission from the previous week. He stated reducing the functional classifications of some city streets and allowing them to be removed from the National Highway System (NHS), would not change the funding eligibility for any Collector or Arterial streets. Commissioner Blanchard asked if the Federal criteria that was required to be reported on would make the City exempt from doing so; does the agreement with the Kansas Department of Transportation (KDOT) permit the city from needing to follow the national requirements; and would it be possible for KDOT to make municipalities responsible for Page 1 14-0375 F upkeep or require them to pay a higher percentage. Mr. Stack responded that the City would not need to follow Federal regulations on streets taken out of the NHS and that some streets were taken out because they didn't need to be maintained at that level. KDOT receives federal dollars for projects and are required to use it. We now have the option to exchange the money for administrative reasons and oversight. Commissioner Blanchard asked if the city would allow KDOT to maintain the roads. Mr. Stack stated some cities allow KDOT to manage the roads and that for a big project the City could do the same. It would require more paperwork, KDOT certified inspectors and take a longer period of time to complete a project, which would cost more money. Staff believes that managing the roads allows for greater control of the funds for budgeting purposes. Rod Franz, Director of Finance and Administration, explained that it was more flexible in terms of what we can plan for annually because we know what we will be getting and it provides a certainty for the capital improvements program. Commissioner Davis asked about Federal and State standards for bridges and roads and if we are giving up any safety or design standards. Mr. Stack stated the design standards are similar. The difference is that we do not have to follow Federal review, mandates and generate the large amount of paperwork that is required. Mr. Stack stated that KDOT is very strict on bridge inspections and that they do a good job of oversight for the state. Commissioner Crawford stated the Federal program has more bureaucracy. Commissioner Hardy asked if Marymount Road was no longer qualified for Federal Funds. Mr. Stack responded that a short section of Marymount Road south of Cedar Ridge which runs into Great Life, is not qualified for federal funds. Dean Andrew, Planning Director, added that if Ohio Street was maintained as a principal arterial, we would then have to apply the Federal Highway Administrations Regulations for outdoor advertising. That would mean any store that wanted to advertise would need to be approved through KDOT and the Federal Highway Administration. Moved by Commissioner Hardy, seconded by Commissioner Crawford, to adopt Resolution No. 14-7158 and Resolution No. 14-7159 establishing the Urban Functional Classification System and the Urban Boundary Lines for the City of Salina. Aye: (5). Nay: (0). Motion carried. (7.2) Resolution No. 14-7163 authorizing the City Manager to renew the agreement with Delta Dental of Kansas, Inc. for dental care benefits. Natalie Fischer, Director of Human Resources, explained the current agreement, history of contract, scope of services, plan structure, funding and proposals received. Commissioner Hardy asked what the premiums were for employees and if the 515 number of contracts included dependants. Ms. Fischer stated the cost was included in the overall health care package premiums and that the 515 contracts were based on the number of employees holding the coverage. Commissioner Davis asked if there was ever a year that the premium went down. Page 2 14-0376 C ■ Ms. Fisher stated that she was aware of flat renewals, but not a decrease. Moved by Commissioner Crawford, seconded by Commissioner Davis, to adopt Resolution No.14- 7163 authorizing the City Manager to renew agreement with Delta Dental of Kansas, Inc. for dental care benefits for three years. Aye: (5). Nay: (0). Motion carried. (7.3) Resolution No. 14-7162 authorizing the City Manager to renew the agreement to provide Administrative Services for a Self -Funded Health Benefit Plan and Individual and Aggregate Stop -Loss with B1ueCross B1ueShield of Kansas. Natalie Fischer, Director of Human Resources, explained the current agreement and scope of services, plan structure, funding, stop -loss proposal. Commissioner Hardy asked about a 3rd party administrator and if the City considered a fully insured plan. Ms. Fischer deferred the questions to Bob Charlesworth, Insurance Consultant at Charlesworth and Associates. Mr. Charlesworth clarified he is a consultant, not an insurance broker. He stated that a group with fewer than 250 employees would benefit from a fully insured plan and that self -funding was a more viable option for the City because of having more than 500 employees. Commissioner Hardy stated the fees seemed like a lot of money and asked how the premiums were paid by the City and its employees. Mr. Charlesworth responded that the premiums were broken down between coverage types which was approximately $500.00 for single coverage and $1600.00 for family coverage. Ms. Fischer stated the premiums are paid at 80% by the City, 20% by the employee. Mr. Charlesworth added that an employee cannot pay over 9.5% of their income for single coverage. Commissioner Hardy stated that it takes about 10% of the budget which is a lot of money and could be a place where the City could cut back and economize the costs with having a healthier work force. Commissioner Davis stated, from a physician's office point of view, that when the deductable increases to a larger amount which is paid by the employee upfront with out of pocket money, the doctor often does not get paid. Mr. Charlesworth stated that currently the City has a modest deductible and that the 50/50 share paid plan has a consumerism element that may change how people file claims. Commissioner Davis asked about a claims management program. Mr. Charlesworth deferred the question to Janet Hieger, Blue Cross Blue Shield (BCBS) Representative. Ms. Hieger stated the BCBS offers case management for those who have chronic conditions and/or high cost claims and that for some cases the program is voluntary and for some it is not. Commissioner Hardy stated he liked the idea of using Statcare vs. emergency room visits and asked how can that be encouraged. Page 3 n C 0 Ms. Hieger stated they prefer Statcare visits when that option is available and it could be benefit driven by pay structure and educating employees. Commissioner Davis asked if there was any data regarding incomes of City employees and the ability to cover the $2000/$4000 and if prescriptions were included in the $2000/$4000 share. Ms. Hieger stated she did not have any data on income and the ability to pay. She stated that the $2000 and $4000 amounts were standard in the industry and prescriptions were not covered in the premium but would be paid by the employee at 70/30 rate. Commissioner Blanchard asked for clarification on what an employee was responsible to pay and could it be possible for someone to delay or forgo treatment. Mr. Charlesworth stated that it could be possible and statistics show that health care could be delayed. Ms. Fischer stated that employees have an added benefit to use a flexible spending account which saves with using pre -taxed dollars. Commissioner Davis asked if lower paid employees set up flex accounts. Ms. Fisher stated it depends on their situation and she has not ran the numbers based on income. She also stated that use of the benefit was below 30%, along with the dependent care option. Rod Franz, Director of Finance and Administration, clarified the deductible amounts and total out of pocket expenses between the current plan and the 50/50 share plan. Commissioner Crawford asked about preventative care services that were covered. Ms. Fischer stated the list will be sent out to employees. Commissioner Hardy asked if lower paid employees would benefit from getting insurance through the Federal exchange and about varied premium levels based on income. Mr. Charlesworth explained that an employee could opt out and go with the Federal exchange, but if they were eligible for benefits through an employer, they would not be qualified for subsidies. Mr. Charlesworth stated he could discuss premium options with staff if that was a direction they wanted to pursue. Commissioner Hardy stated that an employee could opt out and then not get any coverage through the exchange, which could make it worse. Mr. Charlesworth stated that it would benefit the City to have everyone in the plan. Mr. Franz added that if we adjust pricing, we have to insure that we don't drive healthy people off the plan. Commissioner Blanchard made a motion to adopt Resolution No. 14-7162 authorizing the City Manager to execute the agreement for providing administrative services for a self- funded health benefit plan and individual aggregate stop -loss with Blue Cross Blue Shield of Kansas. Page 4 N N 14-0377 M Mayor Householter asked for comments from the public. There was not any public comment. Commissioner Hardy stated he wanted to comment and asked if it would be beneficial to explore tiered premium options based on income. Commissioner Davis stated he shared the same concern that the increase could be difficult for some employees to manage. Commissioner Blanchard questioned if that was something that they wanted to look at for next year. Commissioner Crawford stated that she felt it would be better to discuss premium payments for the next year's plan. Commissioner Blanchard asked for clarification that the motion was only to approve the contract and it was not to decide the premium structure. Ms. Fischer stated that was correct and that by the direction of the Commission, staff could research other models for funding the plan. Mr. Franz reiterated the purpose of the action. It did not affect how the premiums were paid; it was to establish the third party administrator and the characteristics of the plan. Mayor Householter stated that at least three (3) of the Commissioners wanted staff to look at premium payment options and that he would like a second for the motion. Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to adopt Resolution No. 14-7162 authorizing the City manager to execute the agreement for providing administrative services for a self-funded health benefit plan and individual aggregate stop -loss with Blue Cross Blue Shield of Kansas with the non -grandfathered 50/50 cost share plan structure. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) First reading Ordinance No. 14-10759 amending Salina Code Section 31.6, definition of "Perennial Violator", within the Property Maintenance Code. Gary Hobbie, Director of Development Services, explained the Property Maintenance Code, (PMC) complaint process, and code amendment. It would go into effect on January 1, 2015 through December 31, 2015. If a property had three (3) violations in 2015, it would be considered a perennial violator in 2016. Commissioner Blanchard clarified that the purpose was to redefine "Perennial Violator" not to create the definition, and asked if it was property specific or owner spacific. Mr. Hobbie stated yes and that it would change the period of time. It was currently based on a rolling calendar, and the change was to be on a calendar year basis. The definition would state property specific for perennial violator. Commissioner Hardy asked if the policy was efficient and if owners were motivated to comply with the ordinance. Page 5 N Z a a 0 N U 14-0378 14-0379 14-0380 14-0381 F17 Mr. Hobbie stated that 75 violators was an estimate; they currently do not have an exact number of perennial violators. They have 1700 violations that came from multiple properties and owners. Greg Bengtson, City Attorney, explained that the transition was from a rolling status versus a fixed year. He also clarified that the consequence of perennial violated status was the trigger for municipal action as opposed to just the abatement and assessment. Mr. Hobbie added that it did not change the penalty for a perennial violator. Norman Mannel, 7532 W. Pleasant Hill Road, asked about the difference between a wildlife habitat and a property code violation. Mr. Hobbie responded that parameters have been put around wildlife habitat areas and they were mainly concerned about grass height. Moved by Commissioner Crawford, seconded by Commissioner Blanchard, to pass Ordinance No. 14-10759 on first reading to amend section 31.6 of the Salina Municipal Code and modify the definition of "Perennial Violator". Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS Commissioner Davis asked for a study session to discuss options for premium payments based on employee incomes, as well as educational efforts for employees. Rod Franz, Director of Finance and Administration, explained that staff was aware of the need for the discussion of the issue. Greg Bengtson, City Attorney, stated the need for an executive session to discuss attorney- client matters. Moved by Commissioner Crawford seconded by Commissioner Blanchard, to recess into executive session for 10 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 5:50 p.m. The City Commission recessed into executive session at 5:40 p.m. and reconvened at 5:50 p.m. No action was taken. Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to extend the current executive session for an additional 5 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:50 p.m. and reconvened at 5:55 p.m. No action was taken. Mayor Householter excused himself from the meeting. ADJOURNMENT Moved by Commissioner Blanchard, seconded by Commissio and at the regular meeting of the Board of City Commissioners be adjourned. A (4). Na (0). Motion carried. The meeting adjourned at 5:55 p.m. [SEAL] Aaron K.�F jouseholter, Mayor Page 6 A EST: SIicks, CMC, City Clerk J 1 rn Page 7