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City Council

Regular Meeting

Idaho Falls, ID · May 6, 2019

AgendaMinutes

Minutes

May 6, 2019 The City Council of the City of Idaho Falls met in Special Meeting (Council Work Session), Monday, May 6, 2019, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:00 p.m. Call to Order and Roll Call: There were present: Mayor Rebecca L. Noah Casper Councilmember Thomas Hally Councilmember Jim Francis Councilmember John Radford Councilmember Michelle Ziel-Dingman Councilmember Shelly Smede Councilmember Jim Freeman Also present: Chris Fredericksen, Public Work Director Jason Minzghor, Idaho Transportation Department (ITD), District 6 Engineer Karen Hiatt, ITD, District 6 Engineering Manager Kelly Hoopes, Horrocks Engineers, Project Manager Ryan Day, ITD, District 6 Project Manager Brad Cramer, Community Development Services Director Rick Cloutier, Airport Director Ryan Tew, Human Resources Director AJ Argyle, Insurance Broker Dave Radford, Bonneville County Commissioner and Targhee Regional Public Transportation Authority (TRPTA) Board Member Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:01 p.m. with the following items: Acceptance and/or Receipt of Minutes: There were no minutes to accept. Calendars, Announcements and Reports: May 7, Budget Watch May 9, City Council Meeting May 11, Community Park Playground Build; and, Stamp Out Hunger Day May 13, Arbor Day Celebration May 14, Budget and Levy Training; and, Domestic Violence and Sexual Assault Center (DVSAC) Event May 15, Bonneville Metropolitan Planning Organization (BMPO) Policy Board Meeting; Public Works Construction Public Meeting; 23rd Annual Peace Officer Memorial; and, School District 91 (SD91) Master Plan Community Meeting May 16, Idaho Falls Power (IFP) Board Meeting; and, ITD I-15/US-20 Public Meeting I and II May 20, City Council Work Session; and, BMPO Community Ride May 21, TRPTA Stakeholders Meeting May 23, City Council Meeting May 24, Ribbon Cutting for Community Park May 25-27, Field of Honor Events May 27, Memorial Day (City offices closed) May 28, Idaho Falls Police Department (IFPD) Community Meeting, Strategic Plan 1 May 6, 2019 Mayor Casper stated her Executive Assistant, Kami Morrison, last day with the City will be May 10. A temporary employee, Annel Rice, will be assisting in the Mayor’s Office for several weeks. Liaison Reports and Concerns: Councilmember Hally had no items to report. Councilmember Smede stated the Library Board contract is receiving final approvals. She also stated several plats with Community Development Services Department will be forthcoming. She noted Teacher Appreciation Week. Councilmember Freeman stated RECreateIF survey results are being calculated, more surveys have been received than anticipated. He also stated discussion is occurring with ITD and SD91 regarding the Broadway crosswalk, and, summer construction preview will occur at Budget Watch. Councilmember Francis noted the May 15 Public Works Public Meeting will be informative for the neighborhood street paving and water line installation. Councilmember Radford stated there is a video presentation available of the hydro plant operations. He also stated the pavement project will be occurring in the near future at Community Park. Councilmember Dingman had no items to report. US20/I-15 Project Update with ITD: Director Fredericksen introduced ITD personnel. He then turned the presentation to Mr. Hoopes. Mr. Hoopes stated a public meeting for the next phase of the US20/I-15 Project will be held May 16. Approximately 13,000 flyers were distributed for this meeting and the meeting format will include guided tours. Mr. Hoopes then presented a Planning Environmental Linkages (PEL) video. He stated ITD is still in the National Environmental Policy Act (NEPA) planning process. He then presented an additional introduction video. Mr. Hoopes reviewed Level 2, No-build, Alternatives. Alternative B will allow slip ramps for traffic to bypass Exits 118 and 119 and then merge back into traffic with US20. This alternative was removed from further consideration. Alternative C is similar to Alternative B although this alternative will extend the slip ramps beyond the City Center/Riverside Exit. This ramp will provide an additional Snake River crossing to the north. The current Lindsay Boulevard Exit would close. This alternative has been advanced to Level 3. Alternative D did not change the current US20 alignment although it included an additional alignment north of Exit 119. This caused additional weave issues. This alternative was removed from further consideration. Alternative E avoids weave issues although it still has fluid connectivity. Grandview would not be connected as an interchange and would become an overpass structure for local traffic. There would be a proposed new interchange north of Exit 119. The number of interchanges for the City would not change. Alternative E.1 would encourage more traffic at the Lewisville Exit, traffic would need to be determined at Science Center Drive. Alternative E.2 would allow an extra half mile and would separate the weave from Broadway and US20. Both E Alternatives have been advanced. Alternative F would allow couplets. This alternative was removed. Alternative G would separate the through traffic and the local traffic. This alternative was removed. Alternative H is very similar to Alternative G although Alternative H is a connectivity to US26. This alternative advanced. Mr. Hoopes stated any of these alternatives do not resolve the US20/I-15 exit. A split diamond interchange was also discussed. Alternative I is a continuation of Alternative H and encourages traffic to the west side to Exit 113. This alternative was removed as part of this project. Alternative J (came in at Level 2) would minimize the impacts of crossing the Snake River and would push I-15 traffic to the east side in the vicinity of the Hatch Pit. There was a loss of connectivity for in-town approach. This alternative was removed. Alternative K pushed traffic to the north. This alternative was removed. Mr. Hooped stated ITD has been working with BMPO for overall and projected traffic/growth through 2045. He indicated these are very preliminary phases. The greatest good, greatest benefit, and, the least amount of impact is current being reviewed. He also noted the area surrounding the Airport has been discussed. Mr. Hoopes reviewed the PEL schedule, this planning and environmental study is expected to take about 18 months. He also reviewed the Post-PEL project schedule: 2020-2023 – NEPA Environmental Preliminary Design (pending project funding), 2024-2025 – final design, 2026-beyond – construction. Mr. Hoopes encouraged utilizing the web site and attendance at the public meeting. General comments followed. Ms. Hiatt indicated this project would be Federal/State funded. She also noted the procurement process has not yet been determined. Moratorium Discussion and Update: 2 May 6, 2019 Director Cramer indicated actions to lift the moratorium are scheduled for the May 9, 2019, Council Meeting. He stated lifting the moratorium will be considered as a resolution and will follow three (3) public hearings including amendment to the Comprehensive Plan Map, adoption of a new zoning ordinance of the Airport Overlay Zone, and, rezoning of properties that are impacted by the Airport Overlay Zone. Director Cramer stated adjustments have been made since the April 2, 2019, Planning and Zoning (P&Z) Commission meeting following public outreach meetings and recommendations. Amendments include a shift of the green belt and mixed use areas rather than low density residential. These adjustments were due to investment and planning previously made for the area, wanting to stay within the restricted area guideline, and, adjustments to size. Director Cramer noted a longer-range plan for this area is still being discussed. He compared Snake River Landing, which is just under 600 acres, to the Comprehensive Plan change, which is just over 600 acres. He believes there is adequate space for growth. Mayor Casper believes Community Development Services (CDS) has devised a plan that is as responsive as it can be. Director Cramer stated CDS has tried to respect property rights while protecting the airport. He stated this code has been reviewed by the airport, the airport consultants, and, the Federal Aviation Administration (FAA). Councilmember Freeman questioned the southern end of the airport. Director Cramer stated this area was previously anticipated so there was no need to modify the area at this time. He also stated there is no development pressure for the area at this time. Director Cramer noted the Comprehensive Plan Map does not follow property lines and has room for adjustments. Mr. Fife clarified the effect of these changes is only within City limits. Director Cramer and Director Cloutier reviewed the uses and restrictions in the Off Airport Land Use Map. General discussion and comments followed. City Employee Wages and Benefits Discussion, Part 2: Mayor Casper stated this discussion will include medical benefits. She indicated the preliminary wage and benefits discussion will assist with future department budget discussions. Director Tew concurred. She then turned the presentation to Director Tew and Mr. Argyle with general discussion throughout: 2019-2020 Medical/Dental/Vision Insurance Increase – City Share $784,295 Employees Share $138,870 Total $923,165 Director Tew stated the City has experienced a sizeable increase in the rates. He noted there has been no increase in the previous two (2) years. Mr. Argyle stated there was a significant decrease in the overall rates in the previous year which has caused a significant increase in the current year. The average of five (5) years has been a 2.4% increase. Mr. Argyle stated the loss ratio is currently running at 85%, the Preferred Provider Organization (PPO) Plan was running at 100% loss ratio (these rates do not include the 15% administration fee that Blue Cross is allowed to take). He indicated the experience includes the City’s cost to Blue Cross versus claims paid out. Due to this increase Mr. Argyle does not recommend self-insurance at this time. Potential methods for shifting costs – Change employer/employee previous splits - affects all covered employees Change PPO Plan Design - affects PPO plan users only Combination Premium increase with different split scenarios – PPO HSA City + Employee = Total Increase Current Split $784,295 $138,870 $923,165 1. 90/10 97/3 $829,576 $93,589 $923,165 2. 88/12 96/4 $630,915 $292,250 $923,165 3. 85/15 95/5 $344,443 $578,722 $923,165 Mr. Argyle briefly reviewed Health Savings Account (HSA) and PPO benefits and deductibles. He stated PPO is driving the health care costs. He also stated the City has a one-way retention agreement. This agreement allows almost all of the benefits with none of the risks. The disadvantage of the one-way retention agreement is the premium tax. Mr. Argyle stated no other carriers will bid a one-way retention agreement. Potential PPO Plan Design Changes 1. Increase office visit co-pay (0.9% reduction in total PPO cost) 2. Increase deductible (1.6% reduction) 3. Increase medical out-of-pocket maximum (1.3% reduction) 3 May 6, 2019 4. Add brand RX deductible (2.5% reduction) Director Tew reviewed recommended changes. He believes these recommended changes are the least impactful to the employees. Some changes would affect all employees while some changes would only affect certain employees.  Office visit co-pay, change to $40, -0.9% impact on premium, $72,877 difference  Deductible, change to $1,250 individual/$3,750 family, -1.6% impact on premium, $129,559 difference  Medical out-of-pocket, change to $1,750 individual/$5,250 family in-network change to $2,250 individual/$6,750 family out-network, -1.3% impact on premium, $105,267 difference  Prescription drugs, add $250 brand Rx deductible (per person), -2.5% impact on premium, $202,436 difference Councilmember Francis questioned the cost of name brand prescriptions. Mr. Argyle stated if a general prescription were not available, the employee would end up paying the higher amount. Councilmember Hally stated he is in favor of spreading any costs equally to all employees. Councilmember Francis requested data showing the impact to the lower step and grade employees. Councilmember Smede believes health care benefits are beyond the City. Councilmember Radford believes general health care benefits are out of control. Mr. Argyle stated Blue Cross insures 70% of businesses in the State, therefore they are able to negotiate costs/discounts. Mayor Casper stated a decision will be needed for a cost of living adjustment (COLA) as well as insurance benefits by May 20. She stated this decision will be designed to help the employees and not balance the budget on the backs of the employees. Director Tew stated a 2.5% COLA plus the increase of benefits would amount to $1.7M. Councilmember Hally prefers the City benefit cost share be reduced by ~$200,000, he is in favor of changing the ratios of the premiums. Councilmember Freeman is not in favor of the $250 Rx deductible. Councilmember Francis concurred. He would be in favor of the $40 co-pay. Councilmember Dingman concurred. Councilmember Radford is in favor of the current ratio. Councilmember Dingman does not believe these recommended increases are a significant impact to the employees. Following consensus of the Council to shift some of the costs to the employees, Director Tew stated he will present additional scenarios. Mr. Argyle reviewed Mandatory Case Management stating a nurse and/or health coach would be assigned to a high risk employee, spouse, or dependent who may not be controlling a health condition; this is the best option to help curve long-term costs; and, would be included as part of the wellness. There is no additional cost for this service. There was consensus of the Council to add the Mandatory Case Management. Director Tew clarified the salary increase calculation per the April 22, 2019 COLA discussion. He stated the calculation includes the base, longevity, step increase, and, additional pay (for certain employees). Discussion and Consideration of Local Match for Public Transit: Mayor Casper stated the remaining members of the TRPTA board have been trying to resolve the recent closure of TRPTA as well as the challenges moving forward. She indicated TRPTA is focusing on past payroll for the TRPTA employees. She then turned the discussion to Councilmember Dingman. Councilmember Dingman stated on May 2, the TRPTA Board of Directors moved to terminate all employees due to the dire financial situation. The TRPTA Board of Directors also took action to handle operational duties and the proper disposal of the remaining TRPTA assets. She reiterated the priority is to pay the outstanding payroll as the employees did not receive their last paycheck(s) due to lack of funds. Councilmember Dingman stated a conference call occurred on May 3 with the Federal Transit Authority (FTA) and ITD regarding the Federal funding process. She indicated the local match describes the monies given to TRPTA by local governmental and community entities. The City of Idaho Falls, as the largest single source of local match, budgeted $140,000 with quarterly payments of $35,000. The City Council voted to withhold the third quarterly payment due to FTA sanctions. Shortly thereafter, the FTA refused to lift the sanctions, therefore, the City Council once again denied the third quarterly payment and requested a dissolution plan. Councilmember Dingman stated TRPTA currently has four (4) Board Directors, including herself, Bonneville County Commissioner Radford (acting Board Chair), City of Ammon Mayor Sean Coletti, and, City of Rexburg Mayor Jerry Merrill. She expressed her appreciation to Commissioner Radford and to the volunteer board. TRPTA currently has outstanding payroll liabilities of approximately $100,000, this represents services rendered. TRPTA has two (2) lines of credit with a total balance amount of $185,000. It is believed these lines of credit were primarily spent on payroll and other related operational expenses. Other expenses amount to $15,000 for radio communication services and 4 May 6, 2019 legal services, there may be unknown additional expenses. There is approximately $11,000 in TRPTAs bank account as of May 2 due to deposits for Medicaid reimbursements. FTA has offered TRPTA an 80/20 match, with TRPTA providing 20% of the grant match, to cover current outstanding payroll liabilities. Councilmember Dingman emphasized the only way to tap into FTA funds is for local match to be given to TRPTA. The local match scenario is the foundation for the entire annual budget. The City of Idaho Falls is the only organization that provides funds on a quarterly basis versus an annual amount. Mayor Casper indicated the quarterly payments have been occurring for several years, TRPTA did not express any concern regarding these quarterly payments. Councilmember Dingman stated FTA has partially removed the echo suspension which will allow the Board to draw down funds from the FTA grants. She requested Council approval for the release of the $35,000 quarterly payment to allow TRPTA to draw down the FTA matching funds of 80/20 ratio to allow payment to former TRPTA employees for services already provided/rendered. It was noted the City has currently paid two quarters ($70,000) of the annual $140,000 amount. Commissioner Radford reiterated additional unknown expenses. He stated TRPTA has been in partnership for 25 years and has performed services for a lot of people in need. He believes the employees should be treated fairly and quickly as possible. He indicated the TRPTA business model did not provide for any reserves. He believes there is an asset with the TRPTA building and resources available to move forward. He also believes more than the $35,000 needs to be paid in order to access the grants to pay additional debts. Councilmember Dingman stated TRPTA will not receive the majority of money from the sale of assets, this will go to FTA and ITD. Mayor Casper stated the current request is for $35,000 although there is an additional $35,000 available for future needs. She clarified withholding the City money on April 1, 2019, was not the reason for the FTA sanction. Councilmember Dingman confirmed. She stated the FTA sanctions were a direct result of operational mismanagement and financial issues of the organization. The City’s quarterly payment may have lessened the current liabilities but, TRPTA was a financially unstable organization regardless. Commissioner Radford expressed his concern for the line of credit at that time. Councilmember Freeman is in favor of paying the entire $70,000 as TRPTA incurred this debt while serving the people in the City. Commissioner Radford indicated audit issues from 2016 had not been resolved. He also indicated there was no board discussion regarding reimbursements. Councilmember Dingman stated documents must be provided in a reimbursement process. Mayor Casper stated the City will not be receiving services for the fourth quarter of payment, she recommended holding the fourth quarter funds for future TRPTA needs or future investment of public transit. Councilmember Dingman noted program and administration costs are 80/20 match, operating costs could be reimbursed at 50/50. It was then moved by Councilmember Hally, seconded by Councilmember Freeman, to release the third quarter of payment for TRPTA for public match. Commissioner Radford stated the Board of Director will work closely to protect the assets. Councilmember Francis stated the information presented is what was requested by the Council. He believes the money could have been previously released. Roll call as follows: Aye – Councilmembers Dingman, Radford, Francis, Smede, Hally, Freeman. Nay – none. Motion carried. Commissioner Radford expressed his appreciation to Councilmember Dingman. There being no further business, it was moved by Councilmember Radford, seconded by Councilmember Smede, to adjourn at 6:27 p.m. and move into Executive Session. The Executive Session is being called pursuant to the provisions of Idaho Code Section 74-206(1)(f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated, but imminently likely to be litigated. The Executive Session will be held in the City Annex Conference Room. At the conclusion of the Executive Session the Council will not reconvene into Regular Council Meeting. Roll call as follows: Aye – Councilmembers Radford, Freeman, Smede, Francis, Dingman, Hally. Nay – none. Motion carried. The City Council of the City of Idaho Falls met in Special Council Meeting (Executive Session), Monday, May 6, 2019, in the City Annex Conference Room in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 6:32 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Shelly Smede Councilmember Michelle Ziel-Dingman Councilmember Jim Francis 5 May 6, 2019 Councilmember John Radford Councilmember Thomas Hally Councilmember Jim Freeman Also present: Pamela Alexander, Municipal Services Director Bear Prairie, Idaho Falls Power General Manager Chris Fredericksen, Public Works Director Michael Kirkham, Assistant City Attorney Randy Fife, City Attorney The Executive Session was called pursuant to the provisions of Idaho Code Section 74-206(1)(f) to communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated, but imminently likely to be litigated. There being no further business, the Executive Session concluded at 7:00 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 6

Agenda

City Council Rebecca Casper May 6, 2019 Recent Proclamations Attached please find copies of official Proclamations prepared and released by the Mayor’s Office for April and May 2019.  Earth Day (April 27)  Worker’s Memorial Day (April 28)  Letter Carriers’ Nationwide “Stamp Out Hunger” Food Drive Day (May 11)  Red Poppy Days (May 20-27) PROCLAMATION WHEREAS, eastern Idahoans are fortunate to live in an area that is blessed with awe-inspiring beauty and natural wonders; and WHEREAS, surrounded by the unique treasure of the Snake River Plain, the majestic Tetons and the spectacular Yellowstone Plateau, Eastern Idaho provides a dynamic blend of outdoor beauty and recreational opportunity; and WHEREAS, the South Fork and the Henry’s Fork of the Snake River, Yellowstone and Grand Teton National parks and Craters of the Moon are known the world over, conjuring up majestic images of rugged mountains, spectacular forests, lakes, wetlands and more – all of which deserve our vigilant protection; and WHEREAS, eastern Idahoans are joining others throughout our country and the world to observe this day by participating in events and activities that promote respect for and protection of our planet; and WHEREAS, federal, state and local governments, non-profit organizations, businesses and concerned citizens everywhere are adopting policies and practices to improve our environment – not only on Earth Day, but every day; and WHEREAS, Earth Day provides an opportunity to more fully appreciate our natural heritage, increase our ecological awareness and preserve our environment. THEREFORE, I, REBECCA CASPER, MAYOR of the City of Idaho Falls, do hereby proclaim April 27th, 2019 as the day residents of the City of Idaho Falls shall enthusiastically celebrate EARTH DAY and invite all citizens to visit the booths and displays, ask questions, learn about our environment and consider the role they may play in preserving the natural beauty of our city and the surrounding region. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of Idaho Falls to be affixed on this 27th day of April, Two Thousand and Nineteen. _____________________________________ Rebecca L. Noah Casper, Mayor City of Idaho Falls PROCLAMATION WHEREAS, every year tens of thousands of American workers are killed by workplace injuries and occupational disease; and WHEREAS, tens of thousands more are permanently disabled; and WHEREAS, renewing our efforts to seek stronger health and safety protections, better standards and enforcement, and fair and just compensation helps to prevent such tragedies; and WHEREAS, improving safety and health in every American work place is the responsibility of concerned Americans; and WHEREAS, April 28th is a day set aside to remember victims of workplace injuries and disease. THEREFORE, I, REBECCA CASPER, MAYOR of the City of Idaho Falls, do hereby proclaim April 27th as WORKER’S MEMORIAL DAY in recognition of workers killed, injured and disabled on the job and encourage everyone to consider thoughtfully the role each of us can play in promoting safer working environments even as we remember and celebrate the precious lives that have been lost including TROY D. HIGGINS IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of Idaho Falls to be affixed on this 27th day of April, Two Thousand and Nineteen. ____________________________________ Rebecca L. Noah Casper, Mayor City of Idaho Falls PROCLAMATION WHEREAS, the need to serve the less fortunate – including America’s children, elderly, and working poor will ever be with us; and WHEREAS, hunger is a very real problem for many individuals and families; and WHEREAS, all across the country local food banks that feed the hungry run frighteningly low on critical supplies just before the summer months, which, ironically, is a time when many people look to food banks for assistance as school breakfast and lunch programs become less available to children; and WHEREAS, every year on the second Saturday in May, Letter Carriers across the country work together to help alleviate hunger throughout the country by carrying out the nation’s largest one-day food drive, distributing the donations to local food banks; and WHEREAS, this food drive has been fighting food insecurity in our community for 26 years; and WHEREAS, all of the food collected in our community stays in our community; and WHEREAS, we commend our local letter carriers, represented by the NALC Branch 1364, Idaho Falls, Idaho, for their diligence and commitment to serving the Idaho Falls public to the best of their ability on this day and every day. NOW, THEREFORE, I, REBECCA L. NOAH CASPER, MAYOR of the City of Idaho Falls, do hereby proclaim May 11, 2019 as, LETTER CARRIERS’ NATIONWIDE “STAMP OUT HUNGER” FOOD DRIVE DAY in the City of Idaho Falls, and urge all citizens of the community to participate in this worthwhile endeavor to help those in need by leaving nonperishable food items out near their mailboxes on Saturday May 11th, 2019 IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of Idaho Falls to be affixed on this 6th day of May, Two Thousand and nineteen. _____________________________________ Rebecca L. Noah Casper, Mayor City of Idaho Falls PROCLAMATION WHEREAS, America is a land of freedom, preserved and protected willingly and voluntarily by citizen soldiers; and WHEREAS, millions who have stepped forward to answer the call to arms have died on the field of battle; and WHEREAS, from time to time, a nation at peace must be reminded of the price of war and the debt owed to those who have given their lives; and WHEREAS, the American Legion Auxiliary has pledged to remind Americans annually of this debt through the distribution of the memorial flower; and WHEREAS, the red poppy is recognized the world over as a symbol of peace and sleep as it beautifully represents the sacrifice of all lives in all wars. THEREFORE, I, REBECCA CASPER, MAYOR of the City of Idaho Falls, do hereby proclaim May 20-27 as RED POPPY DAYS in Idaho Falls and request that all Idaho Falls citizens pay tribute to those who have made the ultimate sacrifice in the name of freedom by wearing the Red Memorial Poppy on this day. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of Idaho Falls to be affixed on this 13th day of May, Two Thousand and Nineteen. ___________________________________ Rebecca L. Noah Casper, Mayor City of Idaho Falls PARKS & RECREATION SHADE TREE COMMITTEE MINUTES Tuesday February 26 , 2019 Activity Center 12:00 Noon ATTENDEES: Delbert Lloyd, Matt Hill, Ronnie Campbell, Lee Washburn, PJ Holm, Brian Stevens, Kim Johnson and Terrie Safford APPROVAL OF MINUTES No Quorum PUBLIC COMMENTS We had some visitors from Idaho Falls High School STREET TREES ON LINDSAY CONFERENCE CALL Matt, Lee And Kim are still making a plan for Fairbridge Motel to present to Mayor and Council EDUCATE THE MAYOR AND CITY COUNCIL Jim will talk with Mayor and find out what she wants from Shade Tree so we can show them why Shade Tree is important to our community. PLAN FOR 2019 BUDGET Delbert suggest we contact other cities to see how they work their budget and get training for Committee Members. PJ suggest we bring training to us or try to meet with other communities. Lee and Brian suggest we talk to Gerry Bates on this matter. Kim suggest we educate public by having a town hall meeting to listen to the community. GOALS FOR MAYOR Jim was not present to give us any info he got from Mayor. DOWNTOWN PROJECT We will be removing and replacing all the trees and structural soil will be added Delbert will start on Memorial and work their way to Yellowstone and new self-watering flower pots will be added. We will be taking out 64 trees and putting in more than 64 new trees. CALL FOR AGENDA ITEMS How can we build a budget for Shade Tree Plan for trees at Fairbridge Motel Goals for Mayor Recorded by Terrie Safford PARKS & RECREATION SHADE TREE COMMITTEE MINUTES Tuesday March 26, 2019 Activity Center 12:00 Noon ATTENDEES: Matt Hill, Ronnie Campbell, Lee Washburn, PJ Holm, Jim Freeman, Kami Morrison, Gerry Bates, Randy Westergard and Terrie Safford APPROVAL OF MINUTES Matt Hill and Randy Westergard second PUBLIC COMMENTS The tree letters and brochures we sent out, people are thinking they are in violation already so we have gotten many calls. STREET TREES ON LINDSAY ( FAIRBRIDGE HOTEL) Lee has a plan for the trees and is still working on a plan, he is worried if we dig out the old trees we may run into power. Gerry brought a tree appraisal so we could see what the cost of the trees are and what it will cost to replace them. Kami’s wonders if we (the City) could pay half and the business can pay half of the expense. Jim said it would be nice to have the same size trees as the rest of Lindsey Blv. Matt said maybe make this an Arbor Day project. HOW TO BUILD A BUDGET FOR SHADE TREE COMMITTEE Gerry suggests we do a training/ conference for South East Idaho with a charge of some sort, he said he could possibly do the training. GOALS FOR MAYOR Kami and Jim are going to talk with Mayor about goals. CALL FOR AGENDA ITEMS Arbor Day Schedule. Maybe do a scout project. When do we want to do a training conference? City of IF will sponsor it and include lunch. Ordinance for Shade Tree Recorded by Terrie Safford Ryan Tew Thursday, May 2, 2019 Wages and Benefits Discussion Item Description Attached are materials for discussion with City Council regarding the medical, dental, and vision insurance renewal for fiscal year 2019 – 2020. Purpose Inform Council of upcoming increase to City benefit plan costs and discuss options on how to proceed. This discussion pertains to the PBB category of good governance and the desired result of attracting, developing, rewarding, and retaining a high quality, engaged, and productive workforce. Fiscal Impact / Financial Review Increase of approximately $923,165 to Employee Benefit Insurance Plan Premiums in 2019 – 2020. The City share and employee share of the increase will be determined by City Council. Legal Review Has been reviewed and approved by City Attorney’s Office. Interdepartmental Review Has been reviewed by Mayor’s Office, Municipal Services and Human Resources Departments Recommended Action No action at this time. ☐ Economic ☒ Governance ☐ Growth ☐ Learning ☐ Livable ☐ Safety ☐ Sustainability ☐ Transportation CITY EMPLOYEE BENEFITS DISCUSSION May 6, 2019 2019 - 2020 Medical/Dental/Vision Insurance Increase City Share $784,295 Employees Share $138,870 Total: $923,165 Note: This City/Employee ratio assumes current premium structure and plan design. 1 2019 - 2020 Medical/Dental/Vision Insurance Increase ■ Causes of the large increase – Loss Ratio was running 85% on the plan at the time of renewal ■ The PPO Plan was running 100% loss ratio – These rates do not include the 15% administration fee that Blue Cross is allowed to take based on PPACA Potential Methods for Shifting Costs ■ Change Employer/Employee Premium Splits Affects all covered employees ■ Change PPO Plan Design Affects PPO plan users only ■ Combination 2 Premium Increase with Different Split Scenarios PPO HSA City + Employee = Total Increase Current Split $784,295 $138,870 $923,165 1. 90/10 97/3 $829,576 $93,589 $923,165 2. 88/12 96/4 $630,915 $292,250 $923,165 3. 85/15 95/5 $344,443 $578,722 $923,165 Potential PPO Plan Design Changes 1. Increase Office Visit Co-Pay (0.9% reduction in total PPO cost) 2. Increase Deductible (1.6% reduction) 3. Increase Medical Out-of-Pocket Maximum (1.3% reduction) 4. Add Brand Rx Deductible (2.5% reduction) 3 Example #1: Changes to Premium Split and Plan Design PPO Split - 88/12; Co-Pay $40; Deductible $1,250/$3,750 City Share of Total PPO Premium Increase $546,032 0.9% Reduction In City Cost of PPO ($64,132) 1.6% Reduction In City Cost of PPO ($114,012) Revised City Share of Total PPO Premium Increase $367,888 Example #2: Changes to Premium Split and Plan Design PPO Split: 88/12; Out of Pocket Maximum $1,750/$5,250; $2,250/$6,750 City Share of Total PPO Premium Increase $546,032 1.3% Reduction In City Cost of PPO ($92,635) Revised City Share of Total PPO Premium Increase $453,397 4 Mandatory Case Management ■ Would assign a nurse and/or a health coach to any employee, spouse, or dependent that is a high risk or not controlling a health condition ■ Best option to help curve long term cost ■ Make part of wellness – Require all employees that qualify to participate *Pocatello is making this effective this year. The state has been doing it for years. Categories Included in City Salary Increase Calculation Base $41,117,353 Longevity $732,699 Step Increase $316,064 Additional Pay $413,270 Total $42,579,386 5 Current (PPO 89.5/10.5 HSA 95/5) Current Plan Proposed Plan Difference Current PPO Monthly Monthly Monthly City Pays Current % PPO Benefits. Employee pays Current%. City Employee Total City Employee Total City Change Employee Change 65 Employee $ 540.36 $ 51.15 $ - $ 591.51 $ 582.44 $ 68.64 $ - $ 651.08 42.08 17.49 86 Employee & Spouse 1,124.90 122.59 - 1,247.49 1,230.16 144.96 - 1,375.12 105.26 22.37 19 Employee +1 Child 762.10 76.00 - 838.10 823.96 97.10 - 921.06 61.86 21.10 19 Employee +2+ Children 1,098.85 111.06 - 1,209.91 1,187.98 139.99 - 1,327.97 89.13 28.93 210 Family 1,616.21 182.23 - 1,798.44 1,771.91 208.80 - 1,980.71 155.70 26.57 Fire Union 1 Employee $ 472.00 $ 119.51 $ - $ 591.51 $ 514.08 $ 137.00 $ - $ 651.08 42.08 17.49 5 Employee & Spouse 1,056.54 190.95 - 1,247.49 1,161.80 213.32 - 1,375.12 105.26 22.37 0 Employee +1 Child 693.74 144.36 - 838.10 755.60 165.46 - 921.06 61.86 21.10 0 Employee +2+ Children 1,030.49 179.42 - 1,209.91 1,119.62 208.35 - 1,327.97 89.13 28.93 53 Family 1,547.85 250.59 - 1,798.44 1,703.55 277.16 - 1,980.71 155.70 26.57 Current Plan Proposed Plan Difference Current HSA Monthly Monthly Monthly City Pays Current % HSA Benefits. Yearly City Yearly City Employee pays Current%. City Employee Contribution Total City Employee Contribution Total City Change Employee Change 37 Employee $ 505.17 $ - $ 1,750.00 $ 2,255.17 $ 516.34 $ 15.42 $ 1,750.00 $ 2,281.76 $ 11.17 $ 15.42 8 Employee & Spouse 1,032.35 29.29 1,750.00 2,811.64 1,085.84 32.43 1,750.00 2,868.27 53.49 3.14 4 Employee +1 Child 708.13 9.92 1,750.00 2,468.05 733.25 21.90 1,750.00 2,505.15 25.12 11.98 5 Employee +2+ Children 1,014.99 24.69 1,750.00 2,789.68 1,061.02 31.69 1,750.00 2,842.71 46.03 7.00 50 Family 1,481.11 52.52 1,750.00 3,283.63 1,567.91 46.83 1,750.00 3,364.74 86.80 (5.69) Fire Union 14 Employee $ 436.81 $ 68.36 $ 1,750.00 $ 2,255.17 $ 447.98 $ 83.78 $ 1,750.00 $ 2,281.76 $ 11.17 $ 15.42 6 Employee & Spouse 963.99 97.65 1,750.00 2,811.64 1,017.48 100.79 1,750.00 2,868.27 53.49 3.14 1 Employee +1 Child 639.77 78.28 1,750.00 2,468.05 664.89 90.26 1,750.00 2,505.15 25.12 11.98 1 Employee +2+ Children 946.63 93.05 1,750.00 2,789.68 992.66 100.05 1,750.00 2,842.71 46.03 7.00 36 Family 1,412.75 120.88 1,750.00 3,283.63 1,499.55 115.19 1,750.00 3,364.74 86.80 (5.69) Current Proposed Difference City Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) $ 7,133,012.40 $ 7,807,084.15 $ 674,071.75 City Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 2,079,092.88 2,189,316.35 110,223.47 $ 9,212,105.28 $ 9,996,400.51 $ 784,295.23 City Contribution for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 283,500.00 283,500.00 - Total Estimated City Cost $ 9,495,605.28 $ 10,279,900.51 $ 784,295.23 Employee Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) 840,545.52 974,101.85 133,556.33 Employee Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 109,072.80 114,385.93 5,313.13 Total Estimated Employee Cost $ 949,618.32 $ 1,088,487.77 $ 138,869.45 Total Estimated City-Wide Costs $ 10,445,223.60 $ 11,368,388.28 $ 923,164.68 *Formulas, calculations, and totals are presented to show an estimated scenario if the health benefits allocations change. These are not intended to be recommendations or proposals and do not affect collective bargaining. Scenario 1 (PPO 90/10 HSA 97/3) Current Plan Proposed Plan Difference Scenario 1 PPO Monthly Monthly Monthly City Pays 90% PPO Benefits. Employee pays 10%. City Employee Total City Employee Total City Change Employee Change 65 Employee $ 540.36 $ 51.15 $ - $ 591.51 $ 585.97 $ 65.11 $ - $ 651.08 45.61 13.96 86 Employee & Spouse 1,124.90 122.59 - 1,247.49 1,237.61 137.51 - 1,375.12 112.71 14.92 19 Employee +1 Child 762.10 76.00 - 838.10 828.95 92.11 - 921.06 66.85 16.11 19 Employee +2+ Children 1,098.85 111.06 - 1,209.91 1,195.17 132.80 - 1,327.97 96.32 21.74 210 Family 1,616.21 182.23 - 1,798.44 1,782.64 198.07 - 1,980.71 166.43 15.84 Fire Union 1 Employee $ 472.00 $ 119.51 $ - $ 591.51 $ 517.61 $ 133.47 $ - $ 651.08 45.61 13.96 5 Employee & Spouse 1,056.54 190.95 - 1,247.49 1,169.25 205.87 - 1,375.12 112.71 14.92 0 Employee +1 Child 693.74 144.36 - 838.10 760.59 160.47 - 921.06 66.85 16.11 0 Employee +2+ Children 1,030.49 179.42 - 1,209.91 1,126.81 201.16 - 1,327.97 96.32 21.74 53 Family 1,547.85 250.59 - 1,798.44 1,714.28 266.43 - 1,980.71 166.43 15.84 TOTAL Current Plan Proposed Plan Difference Scenario 1 HSA Monthly Monthly Monthly City Pays 97% HSA Benefits. Employee pays Yearly City Yearly City 3%. City Employee Contribution Total City Employee Contribution Total City Change Employee Change 37 Employee $ 505.17 $ - $ 1,750.00 $ 2,255.17 $ 515.81 $ 15.95 $ 1,750.00 $ 677.59 $ 10.64 $ 15.95 8 Employee & Spouse 1,032.35 29.29 1,750.00 2,811.64 1,084.72 33.55 1,750.00 1,264.10 52.37 4.26 4 Employee +1 Child 708.13 9.92 1,750.00 2,468.05 732.50 22.65 1,750.00 900.98 24.37 12.73 5 Employee +2+ Children 1,014.99 24.69 1,750.00 2,789.68 1,059.93 32.78 1,750.00 1,238.54 44.94 8.09 50 Family 1,481.11 52.52 1,750.00 3,283.63 1,566.30 48.44 1,750.00 1,760.57 85.19 (4.08) Fire Union 14 Employee $ 436.81 $ 68.36 $ 1,750.00 $ 2,255.17 $ 447.45 $ 84.31 $ 1,750.00 $ 677.59 $ 10.64 $ 15.95 6 Employee & Spouse 963.99 97.65 1,750.00 2,811.64 1,016.36 101.91 1,750.00 1,264.10 52.37 4.26 1 Employee +1 Child 639.77 78.28 1,750.00 2,468.05 664.14 91.01 1,750.00 900.98 24.37 12.73 1 Employee +2+ Children 946.63 93.05 1,750.00 2,789.68 991.57 101.14 1,750.00 1,238.54 44.94 8.09 36 Family 1,412.75 120.88 1,750.00 3,283.63 1,497.94 116.80 1,750.00 1,760.57 85.19 (4.08) Current Proposed Difference City Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) $ 7,133,012.40 $ 7,854,668.52 $ 721,656.12 City Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 2,079,092.88 2,187,012.65 107,919.77 $ 9,212,105.28 $ 10,041,681.17 $ 829,575.89 City Contribution for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 283,500.00 283,500.00 - Total Estimated City Cost $ 9,495,605.28 $ 10,325,181.17 $ 829,575.89 Employee Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) 840,545.52 926,517.48 85,971.96 Employee Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 109,072.80 116,689.63 7,616.83 Total Estimated Employee Cost $ 949,618.32 $ 1,043,207.11 $ 93,588.79 Total Estimated City-Wide Costs $ 10,445,223.60 $ 11,368,388.28 $ 923,164.68 *Formulas, calculations, and totals are presented to show an estimated scenario if the health benefits allocations change. These are not intended to be recommendations or proposals and do not affect collective bargaining. Scenario 2 (PPO 88/12 HSA 96/4) Current Plan Proposed Plan Difference Scenario 2 PPO Monthly Monthly Monthly City Pays 88% PPO Benefits. Employee pays 12%. City Employee Total City Employee Total City Change Employee Change 65 Employee $ 540.36 $ 51.15 $ - $ 591.51 $ 572.95 $ 78.13 $ - $ 651.08 32.59 26.98 86 Employee & Spouse 1,124.90 122.59 - 1,247.49 1,210.11 165.01 - 1,375.12 85.21 42.42 19 Employee +1 Child 762.10 76.00 - 838.10 810.53 110.53 - 921.06 48.43 34.53 19 Employee +2+ Children 1,098.85 111.06 - 1,209.91 1,168.61 159.36 - 1,327.97 69.76 48.30 210 Family 1,616.21 182.23 - 1,798.44 1,743.02 237.69 - 1,980.71 126.81 55.46 Fire Union 1 Employee $ 472.00 $ 119.51 $ - $ 591.51 $ 504.59 $ 146.49 $ - $ 651.08 32.59 26.98 5 Employee & Spouse 1,056.54 190.95 - 1,247.49 1,141.75 233.37 - 1,375.12 85.21 42.42 0 Employee +1 Child 693.74 144.36 - 838.10 742.17 178.89 - 921.06 48.43 34.53 0 Employee +2+ Children 1,030.49 179.42 - 1,209.91 1,100.25 227.72 - 1,327.97 69.76 48.30 53 Family 1,547.85 250.59 - 1,798.44 1,674.66 306.05 - 1,980.71 126.81 55.46 Current Plan Proposed Plan Difference Scenario 2 HSA Monthly Monthly Monthly City Pays 96% HSA Benefits. Employee Yearly City Yearly City pays 4%. City Employee Contribution Total City Employee Contribution Total City Change Employee Change 37 Employee $ 505.17 $ - $ 1,750.00 $ 2,255.17 $ 510.49 $ 21.27 $ 1,750.00 $ 677.59 $ 5.32 $ 21.27 8 Employee & Spouse 1,032.35 29.29 1,750.00 2,811.64 1,073.54 44.73 1,750.00 1,264.10 41.19 15.44 4 Employee +1 Child 708.13 9.92 1,750.00 2,468.05 724.94 30.21 1,750.00 900.98 16.81 20.29 5 Employee +2+ Children 1,014.99 24.69 1,750.00 2,789.68 1,049.00 43.71 1,750.00 1,238.54 34.01 19.02 50 Family 1,481.11 52.52 1,750.00 3,283.63 1,550.15 64.59 1,750.00 1,760.57 69.04 12.07 Fire Union 14 Employee $ 436.81 $ 68.36 $ 1,750.00 $ 2,255.17 $ 442.13 $ 89.63 $ 1,750.00 $ 677.59 $ 5.32 $ 21.27 6 Employee & Spouse 963.99 97.65 1,750.00 2,811.64 1,005.18 113.09 1,750.00 1,264.10 41.19 15.44 1 Employee +1 Child 639.77 78.28 1,750.00 2,468.05 656.58 98.57 1,750.00 900.98 16.81 20.29 1 Employee +2+ Children 946.63 93.05 1,750.00 2,789.68 980.64 112.07 1,750.00 1,238.54 34.01 19.02 36 Family 1,412.75 120.88 1,750.00 3,283.63 1,481.79 132.95 1,750.00 1,760.57 69.04 12.07 Current Proposed Difference City Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) $ 7,133,012.40 $ 7,679,044.80 $ 546,032.40 City Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 2,079,092.88 2,163,975.63 84,882.75 $ 9,212,105.28 $ 9,843,020.43 $ 630,915.15 City Contribution for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 283,500.00 283,500.00 - Total Estimated City Cost $ 9,495,605.28 $ 10,126,520.43 $ 630,915.15 Employee Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) 840,545.52 1,102,141.20 261,595.68 Employee Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 109,072.80 139,726.65 30,653.85 Total Estimated Employee Cost $ 949,618.32 $ 1,241,867.85 $ 292,249.53 Total Estimated City-Wide Costs $ 10,445,223.60 $ 11,368,388.28 $ 923,164.68 *Formulas, calculations, and totals are presented to show an estimated scenario if the health benefits allocations change. These are not intended to be recommendations or proposals and do not affect collective bargaining. Scenario 3 (PPO 85/15 HSA 95/5) Current Plan Proposed Plan Difference Scenario 3 PPO Monthly Monthly Monthly City Pays 85% PPO Benefits. Employee pays 15%. City Employee Total City Employee Total City Change Employee Change 65 Employee $ 540.36 $ 51.15 $ - $ 591.51 $ 553.42 $ 97.66 $ - $ 651.08 13.06 46.51 86 Employee & Spouse 1,124.90 122.59 - 1,247.49 1,168.85 206.27 - 1,375.12 43.95 83.68 19 Employee +1 Child 762.10 76.00 - 838.10 782.90 138.16 - 921.06 20.80 62.16 19 Employee +2+ Children 1,098.85 111.06 - 1,209.91 1,128.77 199.20 - 1,327.97 29.92 88.14 210 Family 1,616.21 182.23 - 1,798.44 1,683.60 297.11 - 1,980.71 67.39 114.88 Fire Union 1 Employee $ 472.00 $ 119.51 $ - $ 591.51 $ 485.06 $ 166.02 $ - $ 651.08 13.06 46.51 5 Employee & Spouse 1,056.54 190.95 - 1,247.49 1,100.49 274.63 - 1,375.12 43.95 83.68 0 Employee +1 Child 693.74 144.36 - 838.10 714.54 206.52 - 921.06 20.80 62.16 0 Employee +2+ Children 1,030.49 179.42 - 1,209.91 1,060.41 267.56 - 1,327.97 29.92 88.14 53 Family 1,547.85 250.59 - 1,798.44 1,615.24 365.47 - 1,980.71 67.39 114.88 TOTAL Current Plan Proposed Plan Difference Scenario 3 HSA Monthly Monthly Monthly City Pays 95% HSA Benefits. Yearly City Yearly City Employee pays 5%. City Employee Contribution Total City Employee Contribution Total City Change Employee Change 37 Employee $ 505.17 $ - $ 1,750.00 $ 2,255.17 $ 505.17 $ 26.59 $ 1,750.00 $ 2,281.76 $ 0.00 $ 26.59 8 Employee & Spouse 1,032.35 29.29 1,750.00 2,811.64 1,062.36 55.91 1,750.00 2,868.27 30.01 26.62 4 Employee +1 Child 708.13 9.92 1,750.00 2,468.05 717.39 37.76 1,750.00 2,505.15 9.26 27.84 5 Employee +2+ Children 1,014.99 24.69 1,750.00 2,789.68 1,038.07 54.64 1,750.00 2,842.71 23.08 29.95 50 Family 1,481.11 52.52 1,750.00 3,283.63 1,534.00 80.74 1,750.00 3,364.74 52.89 28.22 Fire Union 14 Employee $ 436.81 $ 68.36 $ 1,750.00 $ 2,255.17 $ 436.81 $ 94.95 $ 1,750.00 $ 2,281.76 $ 0.00 $ 26.59 6 Employee & Spouse 963.99 97.65 1,750.00 2,811.64 994.00 124.27 1,750.00 2,868.27 30.01 26.62 1 Employee +1 Child 639.77 78.28 1,750.00 2,468.05 649.03 106.12 1,750.00 2,505.15 9.26 27.84 1 Employee +2+ Children 946.63 93.05 1,750.00 2,789.68 969.71 123.00 1,750.00 2,842.71 23.08 29.95 36 Family 1,412.75 120.88 1,750.00 3,283.63 1,465.64 149.10 1,750.00 3,364.74 52.89 28.22 Current Proposed Difference City Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) $ 7,133,012.40 $ 7,415,609.22 $ 282,596.82 City Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 2,079,092.88 2,140,938.61 61,845.73 $ 9,212,105.28 $ 9,556,547.83 $ 344,442.55 City Contribution for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 283,500.00 283,500.00 - Total Estimated City Cost $ 9,495,605.28 $ 9,840,047.83 $ 344,442.55 Employee Cost for PPO per Year (399 Regular Employees & 59 Fire Union Employees) 840,545.52 1,365,576.78 525,031.26 Employee Cost for HSA per Year (104 Regular Employees & 58 Fire Union Employees) 109,072.80 162,763.67 53,690.87 Total Estimated Employee Cost $ 949,618.32 $ 1,528,340.45 $ 578,722.13 Total Estimated City-Wide Costs $ 10,445,223.60 $ 11,368,388.28 $ 923,164.68 *Formulas, calculations, and totals are presented to show an estimated scenario if the health benefits allocations change. These are not intended to be recommendations or proposals and do not affect collective bargaining. Health Insurance Premiums Matrix PPO Plans HSA Plans City Wide Scenario City Employee Total Scenario City Employee Total TOTAL Current Current Ratio $7,807,084 $974,102 $8,781,186 Ratio $2,472,816 $114,386 $2,587,202 $ 11,368,388 90/10 7,854,669 926,517 8,781,186 97/3 2,470,512 116,690 2,587,202 11,368,388 88/12 7,679,045 1,102,141 8,781,186 96/4 2,447,475 139,727 2,587,202 11,368,388 85/15 7,415,609 1,365,577 8,781,186 95/5 2,424,439 162,763 2,587,202 11,368,388 These estimates represent the blended costs of Health, Vision, and Dental for the respective plans. City of Idaho Falls Cost Saving Alternatives PPO Only Renewal Effective 10/01/2019 - 09/30/2020 2018/2019 Medical/Rx Benefits PPO - Healthy Measures Enhanced Product Preferred Blue PPO Deductible In-Network $1,000 Ind / $3,000 Family Deductible Out-of-Network Combined In & Out Network Medical Total Out-of-Pocket In-Network $1,500 Ind / $4,500 Family Medical Total Out-of-Pocket Out-of-Network $2,000 Ind / $6,000 Family Medical Out-of-Pocket includes Deductible, Copay, Coinsurance Member Coinsurance 50% In / 70% Out Physician Copay In-Network $30 Specialist Copay In-Network $30 Prescription Drugs $15/$30/$50 Prescription Drugs Total Out-of-Pocket $2,000 Ind / $4,000 Family Benefit Change Impact to Rates % Impact on Premium Office Visit Copay Change 1.Change to $30 PCP / $60 Specialist -0.5% 2.Change to $40 -0.9% 3.Change to $40 PCP / $80 Specialist -1.3% Deductible (total out-of-pocket increases correspondingly) 4.Change to $1,250 Ind / $3,750 Family -1.6% 5.Change to $1,500 Ind / $4,500 Family -3.2% 6.Change to $1,750 Ind / $5,250 Family -4.6% 7.Change to $2,000 Ind / $6,000 Family -6.0% Medical Total Out-of-Pocket 8.Change to $1,750 Ind / $5,250 Family In-Network -1.3% Change to $2,250 Ind / $6,750 Family Out-Network 9.Change to $2,500 Ind / $7,500 Family In-Network -4.3% Change to $3,000 Ind / $9,000 Family Out-Network 10.Change to $2,750 Ind / $8,250 Family In-Network -5.2% Change to $3,250 Ind / $9,750 Family Out-Network 11.Change to $3,000 Ind / $9,000 Family In-Network -5.9% Change to $3,500 Ind / $10,500 Family Out-Network Prescription Drug (all plans with $2,000 Ind / $4,000 Family Out-of-Pocket) 12.Add $250 brand Rx deductible -2.5% 13.Add $500 brand Rx deductible -3.9% 14.Change copays to $15 / $30 / $50 / $100 -0.3% 15.Change copays to $5 / $15 / $30 / $50 / $100 / $250 -0.3% x. Change copays to $5 / $15 / $30 / $50 / 20% / 30% -0.5% PPO Plan Design Options Matrix Scenario Copay Increase (1) Deductible Increase (2) Total Out of Pocket Increase (3) RX Deductible Increase (4) City Employee City Employee City Employee City Employee Current (89.5/10.5) $ 65,225 $ 7,652 $ 115,955 $ 13,604 $ 94,213 $ 11,053 $ 181,180 $ 21,256 Scenario 1 (90/10) 65,589 7,288 116,603 12,956 94,740 10,527 182,192 20,244 Scenario 2 (88/12) 64,132 8,745 114,012 15,547 92,635 12,632 178,144 24,292 Scenario 3 (85/15) 61,945 10,932 110,125 19,434 89,477 15,790 172,071 30,365 Population 100% 15% -17% 10% -12% 70% Affected Options 1 Office Visit Copay changed to $40.00. (-0.9%) $72,877 Difference. 2 Deductible(total medical increases correspondingly) Change to $1,250 Ind/ $3,750 Family. (-1.6%) $129,559 Difference. 3 Total Out of Pocket Change to $2,500 Ind/$7,500 Family In-Network, $3,000 Ind/$9,000 Family Out-Network (-1.3%) $105,267 Difference. 4 Prescription Drug( all plans with $2,000/Ind/ $4,000 Family Out-of-Pocket) Add $250 brand Rx Deductible (-2.5%) $202,436 Difference. *All Projected savings are related to the number of employees electing various PPO plans. Any changes to the number of employees electing PPO plans would change the estimates.

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