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HomeMy WebLinkAbout2021-08-24 - Agendas - Revised SpecialCity of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 City Council Final Agenda Tuesday, August 24, 2021 5:30 PM City Hall Room 219 City Council Members Council Member Sonia Gutierrez Ward I Council Member D'Andre Jones Ward I Council Member Mark Kinion Ward 2 Council Member Matthew Petty Ward 2 Council Member Sloan Scroggin Ward 3 Council Member Sarah Bunch Ward 3 Council Member Teresa Turk Ward 4 Council Member Holly Hertzberg Ward 4 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Kara Paxton City Council Special Meeting Final Agenda August 24, 2021 Call To Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions City Council Meeting Presentations, Reports and Discussion Items Proposed Agenda Additions A. Consent: None B. Unfinished Business B1 2021-0573 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE At the August 17, 2021 City Council meeting this item was tabled for one week. A Special City Council meeting will be called on August 24, 2021 to discuss this item. C. New Business: None D. City Council Agenda Session Presentations E. City Council Tour F. Announcements G. Adjournment NOTICE TO MEMBERS OF THE AUDIENCE City of Fayetteville, Arkansas Page 2 Printed on 812412021 City Council Special Meeting Final Agenda August 24, 2021 All interested persons may appear and address the City Council on Unfinished Business, New Business, and Public Hearings at City Council meetings. If you wish to address the City Council on an agenda item, please wait for the Mayor or Chair to request public comment. When the Mayor or Chair recognizes you, please start your public comment by giving your name and address. Comments are to be addressed to the Mayor or Chair. The Mayor or Chair will direct your comments to the appropriate elected officials, staff, or others for response. Keep your comments respectful, brief, to the point, and relevant to the agenda item being considered. Each speaker from the public will be allowed one turn to speak for discussion of an agenda item. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda Additions: A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda: Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If a Council Member wishes to comment upon or discuss a Consent Agenda item that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Unfinished Business and New Business: Overview Period: Agenda items at a City Council meeting shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant (city contractor, rezoning or development applicant, etc.) may present its proposal only during this presentation period, but may be recalled by a Council Member later to answer questions. City staff, Council Members and applicants may use electronic visual aids in the City Council meeting as part of the presentation of the agenda item. City staff s presentation and an Applicant's presentation whether presented by one or more than one presenter shall each be limited to a maximum of ten (10) minutes unless the City Council by unanimous consent or majority vote allows additional time. Public Comments: Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote. Courtesy and Respect: All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall City of Fayetteville, Arkansas Page 3 Printed on 812412021 City Council Special Meeting Final Agenda August 24, 2021 leave the podium. Interpreters or Telecommunications Devise for the Deaf (TDD), for hearing impaired are available for all City Council meetings, a 72-hour advance notice is required. For further information or to request an interpreter, please call 479-575-8330. A copy of the complete City Council agenda is available on our website at www.fayetteville-ar.gov or in the Office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas (479)575-8323. All cell phones must be silenced and may not be used within the City Council Chambers. City of Fayetteville, Arkansas Page 4 Printed on 812412021 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0573 Agenda Date: 8/24/2021 Version: 1 Status: Tabled In Control: City Council Meetinq File Type: Resolution Agenda Number: B.1 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 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 2022 employee benefits package as recommended in the staff memorandum attached to this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 812412021 Missy Cole Submitted By City of Fayetteville Staff Review Form 2021-0573 Legistar File ID 8/17/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/26/2021 HUMAN RESOURCES (120) Submitted Date Division / Department Action Recommendation: Staff recommends City Council approve the 2022 employee benefits renewals as proposed in the staff memo. Budget Impact: xxxx.xxx.xxxx-5108.xx Citywide Account Number Fund Project Number Project Title Budgeted Item? Yes Current Budget $ 6,146,240.00 Funds Obligated $ 3,458,417.64 Current Balance 2,687,822.36 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? No Budget Adjustment $ - Remaining Budget 2,687,822.36 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 17, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Missy Cole, HR Director DATE: July 23, 2021 SUBJECT: 2022 Employee Benefits Renewals CITY COUNCIL MEMO RECOMMENDATION: Staff recommends Council approve the employee benefits package for 2022 as outlined below and in the attached documents. BACKGROUND: Staff and Gallagher Benefit Services, the City's benefits broker, have reviewed the annual renewals for employee insurance plans. Employee benefits renewals are brought forward at this time to ensure the annual open enrollment may proceed according to schedule. DISCUSSION: Health Insurance The one year look back period of the City's health claims shows a 91.2% utilization rate of claims paid versus premiums paid. Under the City's current renewal rate guarantee with Arkansas Blue Cross Blue Shield, this utilization rate would result in a 6% premium increase for 2022 for the City's medical plans. Staff and the broker have reviewed the structures of the plans and utilization of the City's current offerings of both the HSA-compliant, HDHP and the PPO plan and recommend plan modifications to both plans to negate the 6% premium increase and lower premiums for both plans in 2022 as compared to current 2021 premiums. The 2022 HDHP plan will have a lower deductible ($2800 individual/$5600 family), after deductible is met coinsurance will be 80%, maximum in -network out of pocket ($5600 individual/$11,200 family). In adopting this plan structure, the overall premium will decrease by 7.4% from current year's premiums. The 2022 PPO plan will have a higher deductible ($1500 individual/$3000 family), however; this plan will provide co -pays for primary care, specialists and urgent care visits, co-insurance will be 80%, maximum out of pocket ($4500 individual/$9000 family). In adopting this plan structure, the overall premium will decrease by 0.6% from current year's premiums. Please refer to the attached document which reflects premium decreases and assumes current cost sharing percentages between employer and employee. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Staff and the broker recommend renewing with Arkansas Blue Cross Blue Shield for 2022 with the proposed plan structure changes and premium decreases of 7.4% to the HDHP option and 0.6% to the PPO option. By moving to the proposed plans, annual cost savings will be over $800,000.00 to premiums. Staff recommends changing vendors for COBRA administration to Consolidated Admin Services (CAS). The move to CAS will cost an additional $2,556 annually over WageWorks based on current enrollment. CAS is an Arkansas -based provider that will provide better communication and support for internal and external customers than the current vendor. City Paid Life and LTD Benefits OneAmerica has provided a rate hold on Employer Paid Basic Life and Employer Paid LTD products for 2022. Staff recommends renewing with OneAmerica for the same benefit coverage and current rates. Flexible Spending Accounts Staff recommends American Fidelity continue as the administrator of Flexible Spending Accounts with no cost for services. Health Savings Accounts Staff recommends First Security Bank continue as the administrator of Health Savings Accounts with no cost for services. Employee Paid Dental Insurance Delta Dental has provided a rate hold for 2022. Staff recommends renewing with Delta Dental. Voluntary Employee Paid Benefits OneAmerica has provided a rate hold for 2022 on employee paid Short Term Disability and Employee Paid Life Insurance. Staff recommends renewing with OneAmerica for these products. Supplemental Benefits Paid by Employees Staff recommends continuing to offer additional supplemental benefits to employees through American Fidelity which include: Disability Income Insurance, Accident Only Insurance, Cancer Insurance, Critical Illness Insurance, Life Insurance, AF Term Life Insurance, AAF Permanent Life Insurance and Hospital Gap Insurance. BUDGET/STAFF IMPACT: The costs of these planned insurance/benefit items are being budgeted in the City's 2022 budget. Attachments: 2022 vs. 2021 Health Plan Costs 11 2022 vs. 2021 Health Plan Costs PPO Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $678.44 $674.34 $172.92 $171.88 $555.06 $458.181 $755.461 $505.52 $502.46 25.499/6/74.51% Employee + Spouse $1,479.32 $1,470.36 $558.44 $920.88 $915.30 37.759/o/62.25% Employee + Child(ren) $1,221.16 $1,213.76 $460.981 $760.181 $755.58 37.759/6/62.25% Family 1 $2,013.42 $2,001.241 $760.061 $1,253.361 $1,245.78 37.759/6/62.25% High Deductible Health Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $352.98 $326.98 $49.62 $45.96 $303.36 $281.02 14.06%/85.94% Employee + Spouse $761.28 $705.20 $113.26 $104.92 $648.02 $600.28 14.88%/85.12% Employee + Child(ren) $576.681 $534.20 $85.801 $79.48 $490.881 $454.72 14.88%/85.12% Family $1,069.041 $990.30 $159.041 $147.36 $910.001 $842.9414.889/o/85.12% Overall Comparison of Cost Savings of Staff Proposed Plan vs. Renewal Rate Rate Tier Current HDHP Rates HDHP w/ 6% Renewal Proposed HDHP Current PPO Rates PPO w/ 6% Renewal Proposed PPO Employee Only $352.98 $374.16 $326.98 $678.44 $719.15 $674.34 Employee + Spouse $761.28 $806.96 $705.20 $1,479.32 $1,568.08 $1,470.36 Employee + Child(ren) $576.68 $611.28 $534.20 $1,221.16 $1,294.43 $1,213.76 Family $1,069.04 $1,133.18 $990.301 $2,013.421 $2,134.23 $2,001.24 Total Monthly Premium $474,711.24 $503,193.91 $439,746.01 $56,650.94 $60,050.00 $56,308.19 Annual Premium $5,696,534.88 $6,038,326.97 $5,276,952.07 $679,811.28 $720,599.96 $675,698.33 Annual Costs Savings $761,374.90 $44,901.63 Total Annual Savings on Premiums w/ Proposed Plans: $806,276.53 CITY OF FAYETTEVILLE ARKANSAS Renewal Analysis and Process Gallagher Benefit Services 1 8/17/2021 Gallagher Risk Management I Consulting © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM