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Home My WebLink About2021-08-24 - Agendas - ArchiveA. B. Council Member Sonia Gutierrez Ward 1 Position 1 Council Member Sarah Marsh Ward 1 Position 2 Council Member Mark Kinion Ward 2 Position 1 Council Member Matthew Petty Ward 2 Position 2 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Treasurer Kara Paxton City of Fayetteville Arkansas City Council Meeting August 24, 2021 Council Member Sloan Scroggin Ward 3 Position 1 Council Member Sarah Bunch Ward 3 Position 2 Council Member Teresa Turk Ward 4 Position 1 Council Member Kyle Smith Ward 4 Position 2 A Special meeting of the Fayetteville City Council was held on August 24, 2021 at 5:30 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Call to Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions: City Council Meeting Presentations, Reports, and Discussion Items: Agenda Additions: None Consent: None Unfinished Business 1. 2021-0573 2022 Employee Benefits Package: A resolution to approve the 2022 Employee Benefits Package. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 211-21. Announcements: None City Council Agenda Session Presentations: City Council Tour: None Adjournment: 6:10 PM 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting: August 24, 2021 Adjourn: 21 1-21 Res. Subject: Roll Hertzberg (W4P2) Gutierrez (W1P1) Jones (W1P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk / (W4P1) Mayor Jordan Subject: Motion To: Motion By: Seconded: Hertzberg (W4P2) Gutierrez (W1P1) Jones (W1P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Mayor Jordan City Council Meeting: August 24, 2021 Subject: a0a,Ino Iota1] Motion To: '64w t o� ►' � y� vl PhC� tD �{ A (,4 �u( /1.+ n O v1 V Motion By: r' Seconded: � 1'�fJ✓1 Hertzberg (W4P2) J Gutierrez (W1P1) Jones (W 1 P2) / Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) J Turk (W4P1) ✓ Mayor Jordan Subject: Motion To: Motion By: Seconded: Hertzberg (W4P2) Gutierrez (W1P1) Jones (W 1 P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Mayor Jordan DEPARTMENTAL CORRESPONDENCE RJ OFFICE OF THE CITY ATTORNEY TO: Mayor Jordan Kit Williams City Attorney Blake Pennington Assistant City Attorney THRU: Kara Paxton, City Clerk Jodi Batker Parnlegal FROM: Kit Williams, City Attorney DATE: August 25, 2021 RE: A Resolution prepared by the City Attorney's Office and passed at the Special City Council meeting of August 24, 2021 1. A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE Received 8/24/21 1:39 PM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Current Employee Address or Ward* Address Ward Locate Your Ward Number Address* 113 W Mountain St Ex. 113 W Mountain St Phone Number Email Meeting Body* City Council Agenda Item 2021-5372 2022 Employee Benenfits Renewals Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Comment Only Comments To all City Council Members I am reaching out to express my concerns regrading the 2022 Employee Benefits. With all insurance, my family plans for the worst and hopes for the best. Currently my family is on the HDHP plan. Currently worst case out of pocket cost to my family Is $6000.00. If the proposed plan is approved worst case out of pocket will be $11,200.00. $6000 to $11,200.00 is a huge difference my family will be out in a worst case situation. This will impact my family and many other families. We all are in a middle of a pandemic and everyone future is uncertain. To almost double the out of pocket cost any time is not a good option especially in a pandemic. I feel the 6% increase is a better option and have a much less impact on families. Also most families can not afford to contribute more money into HSA saving plans. Even if your family could afford to contribute more or the max contribution, a family could not contribute enough in one year to amount to the $11,200.00. This is crazy. Also, we are offered submittal plans to help with the cost. Most families cant afford these options on current wages and insurance cost. And defiantly will not be able to afford these options with the new proposed plan. The way this proposed plan was presented to the employees, made it sound like the premiums and deductibles are going down. At a first glance it sounded great. When you look at the negotiated insurance plans reviewed by City Staff and Gallagher Benefit Services. We see the huge impact on the employees and families. Most employees live paycheck to paycheck and still struggle to make ends meet. This negotiated plan is burden and affects many people. And makes no financial sense. Please see attachments. Please consider these thought in your decision. Attachments Benefits Renewal 2022 Legistar Packet.pdf 192.65KB 2022 Employee Benefits Program.PNG 47.43KB .PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: 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 leave the podium. Enter the text you want this field to display 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