Board of Mayor & Aldermen

MINUTES BOARD OF MAYOR AND ALDERMEN SPECIAL MEETING NOVEMBER 17, 2011 Board present Staff present Mayor Billy Paul Carneal City Manager Paul John Nutting Vice-Mayor Jerome Ellis Asst. City Manager Regina Holt Alderman James Hubbard City Recorder Jane Shugart Murphy Alderman Willie Mason Alderman Ann Schneider Alderman Bruce Head Alderman Shane Shoemaker 1.1 Mayor Billy Paul Carneal called to order the special meeting of the Board of Mayor and Aldermen at 7:00 p.m. 2.0 Administrative 2.1 Gina Holt, Assistant City Manager, opened the discussion by stating that following an extensive review of the responses received to the City’s Request for Proposal for various lines of coverage within the City’s Healthcare Plan, we have narrowed the recommendation down to two general options. The first option is to remain fully insured with Blue Cross Blue Shield of Tennessee as the provider. The recommended deductible, for single coverage would be either $2,500 or $3,500. There would remain an HRA component. The second option is a self- funded plan. Ms. Holt reminded Board members they had taken $440,000 out of the budget recommendation to balance the budget in FY11 and continued the downward trend in FY12. The challenge is to provide as good a plan as possible with the current budgeted amount. Ms. Holt introduced Mark Morgan of Sherrill Morgan, who presented the details of current plan experience for the 2011 plan year and the details of the RFP process. Mr. Morgan reminded Board members that the City had put in a HRA plan to reduce City premiums. At this point, it appears there will be approximately $200,000 of unused cash reserves. The presentation assumes use of these reserves in the 2012 plan year to lower the overall employer cost and keep the plan within budget. All board members had an opportunity to ask questions and state their opinion on the various plans and options.  Alderman Hubbard moved to approve the Blue Cross Blue Shield of TN fully insured plan with an individual deductible of $3,500 and $7,000 for family. The motion was seconded and passed by a 7-0 roll call vote. Employees will pick up the first $1,500 of the deductible, and the City will pay the remaining $2,000 through the HRA. Employees will pick up the first $3,000 of the deductible for either employee plus one or family coverage, and the City will pay the remaining $4,000 through the HRA. 2.2 Alderman Hubbard moved to direct staff to explore creating an incentive based wellness plan. The motion passed by consensus. 3.0 Adjournment With no further business to discuss, the meeting adjourned. ______________________________ Billy P. Carneal, Mayor Attest: ______________________________ Jane Shugart Murphy, City Recorder