HomeMy WebLinkAbout135-15 RESOLUTIONRESOLUTION NO. 135-15
A RESOLUTION TO APPROVE THE 2016 EMPLOYEE BENEFITS
PACKAGE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2016
employee benefits package as recommended in the staff memorandum attached to this Resolution.
PASSED and APPROVED this 4th day of August, 2015.
APPROVED:
ATTEST:
SONDRA E. SMITH, City Clerk Treasurer
FAYETT EVILLE.
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City of Fayetteville, Arkansas 113 West Mountain Street
(j Fayetteville, AR 72701
At a (479) 575-8323
Text File
File Number: 2015-0337
Agenda Date: 8/4/2015 Version: 1 Status: Agenda Ready
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 10
2016 EMPLOYEE BENEFITS PACKAGE
A RESOLUTION TO APPROVE THE 2016 EMPLOYEE BENEFITS PACKAGE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2016
employee benefits package as recommended in the staff memorandum attached to this Resolution.
City of Fayetteville, Arkansas Page 1 Printed on 713012015
City of Fayetteville Staff Review Form
2015-0337
Legistar File ID
8/4/2015
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Pachee Lee 7/17/2014
Human Resources/
Chief of Staff
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends that Council approve the proposed 2016 employee benefits renewals, as discussed in the memo.
Budget Impact:
xxxx.xxxx.51xx.xx Citywide
Account Number Fund
N/A N/A
Project Number
Budgeted Item? Yes Current Budget
Funds Obligated
Current Balance
Project Title
$ 4,715,899.00
$ 4,715,899.00
Does item have a cost? Yes Item Cost
Budget Adjustment Attached? No Budget Adjustment
Remaining Budget $ 4,715,899.00
V20140710
Previous Ordinance or Resolution #
Original Contract Number: Approval Date: �S`_
Comments:
CITY OF
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ARKANSAS
MEETING OF AUGUST 4, 2015
TO: Mayor and City Council
CITY COUNCIL AGENDA MEMO
THRU: Don Marr, Chief of Staff
Michele Bechhold, Sr. Human Resources Officer
FROM: Pachee Lee, Benefits Administrator
DATE: July 17, 2015
SUBJECT: Employee Benefits Renewals for 2016
RECOMMENDATION:
Staff recommends Council approve renewal of employee benefits for 2016 as outlined below
and in the attached spreadsheets.
DISCUSSION:
Staff and Gallagher Benefit Services, the City's benefits broker, have reviewed annual renewals
for employee insurance plans. Employee benefit renewals are brought forward now to ensure
the annual open enrollment may proceed according to schedule.
Health Insurance
The City's claims history for the 12 month look back period, (6/1/2014-5/31/2015), reflects a
90% utilization rate of claims paid versus premium paid. This utilization rate has helped keep
the premium increase for 2016 at a relatively low 6.4%. As a benchmark comparison, the
national medical and pharmacy annual trend factor is 7.2%. The City's benefits broker states
that 4.1 % of this 6.4% increase is driven by Health Care Reform fee requirements.
Staff recommends the 6.4% increase dollar amount be split evenly (50/50) between the City and
City employees. Please refer to the attached spreadsheets for details.
Due to the relatively low premium increase and the inherent disruption to employees anytime
their health insurance coverage changes, Staff and the broker recommend renewing with Blue
Cross Blue Shield rather than taking competitive bids for health insurance for 2016.
Flexible Spending Accounts and Health Savings Accounts
Staff recommends DataPath Administrative Services continue as the administrator for Flexible
Spending Accounts with no change to current fees and services.
Health Savings Accounts are currently administered by Simmons Bank. Simmons Bank is
implementing a monthly maintenance fee of $3 to account holders for 2016. The City is currently
evaluating proposals from Health Savings Account administrators to ensure the selected
administrator provides the services valued by City employees at the most competitive rate.
Mailing Address:
113 W. Mountain Street www.fayetteville-acgov
Fayetteville, AR 72701