FINANCE COMMITTEE OF COUNCIL

                                             CITY HALL, 100 LOCKVILLE ROAD

                                             WEDNESDAY, NOVEMBER 11, 2009

 

                                                            SPECIAL MEETING

 

                                                                      6:00 P.M.

 

1.         ROLL CALL.  Mr. Fix called the meeting to order at 6:00 P.M., with roll call as follows: Mr. Sabatino, Mrs. Hammond, Mr. Smith, Mr. Fix, Mr. Sauer, and Mr. Wisniewski were present.  Mrs. Sanders arrived at 6:20 P.M.  No members were absent.  Others present were Chief Mike Taylor, Mayor O’Brien, Lynda Yartin, Linda Fersch, Chris Schornack, Ed Drobina, Greg Bachman, Eric Vannatta, Tony Barletta, and others.

 

Mr. Smith stated prior to getting into the agenda he would like to express his appreciation for everyone that had wished him a happy Veterans Day today and to extend his appreciation to the various employees of the City who are veterans. 

 

2.         SCHEDULED MATTERS:

 

A.        Review and request for motion to approve draft ordinance approving the Employee Pay Plan and Authorized Strength for 2010.  Mrs. Fersch stated she had provided a memorandum summarizing all of the changes in the Pay Plan.  She stated all of the changes are highlighted in green and she would be happy to answer any questions.  Mrs. Fersch stated the major changes included replacing the Building Regulations Administrator position with the position of CBO/Building Regulations Director and the Arborist position has been deleted.  Mrs. Fersch stated this would require three readings at the next Council meeting in order to avoid having to pass it as an emergency since it must be effective by the first pay of the new year.  Mr. Wisniewski moved to approve and forward to Council; Mr. Sauer seconded the motion.  Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Sabatino, Mr. Smith, Mr. Sauer, and Mrs. Wisniewski voting “Yea.”  Motion passed, 6-0.   

 

B.         Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a contract for health insurance for City employees.  Mrs. Fersch stated if we want to utilize the savings, we will need to change insurance carriers.  She stated our current carrier, Medical Mutual, came in with a quote of a 32 percent increase.  She stated Anthem Blue Cross/Blue Shield presented a 13 percent increase over our current buy up plan and an 11 percent increase on the high deductible HSA.  She stated the Committee had received a handout showing the differences between the current plan and the proposed Anthem Blue Cross/Blue Shield plan.  Mrs. Fersch stated on the HSA plan portion, the $3,000 deductible for family would go toward both medical and prescriptions; once you reach the $3,000, medical would be covered at 100 percent.  She stated, however, drugs would have another deductible of $2,000, but you would not be paying the actual cost of the drug; you would be paying a co-pay depending on the type of drug.  She stated once that $2,000 deductible has been met, drugs would be covered at 100 percent.  Mrs. Fersch stated they buy up plan will still be offered as required by our union contracts, and is similar to the plan we currently offer.  Mrs. Fersch she is recommending the City fund the HSA accounts at $1,400 for single and $2,800 for family.  She further stated we would be changing the bank for the accounts to 5/3rd Bank as our current bank will begin charging a fee for the accounts.  Employees may transfer any funds remaining in their current account to the new account or they can leave it where it is and spend it down.  Mrs. Fersch stated going with the Anthem proposal would cost the City approximately $126,000 more than we are currently paying.  Mrs. Fersch stated it is her recommendation that we go with the Anthem Blue Cross/Blue Shield plan.  Mr. Sabatino ascertained that other municipalities also fund a portion of the HSA account.  Mr. Smith stated even if the City fully funded the deductible, it was still cheaper for the City to go with the HSA.  Mrs. Fersch stated because of the timing of getting everyone signed up and to allow the transition to go smoothly on the first of January, and to allow the Manager to sign the contract, she would request this legislation be passed as an emergency.  Mr. Wisniewski moved to approve the health insurance plan with Anthem Blue Cross/Blue Shield and forward it to Council with emergency language; Mr. Sauer seconded the motion.  Roll call was taken with Mr. Sauer, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Smith, Mr. Wisniewski, and Mr. Sabatino voting “Yea.”  Motion passed, 7-0. 

 

C.        Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a two-year contract with VSP.  Mrs. Fersch stated to renew the current plan there is an 11 percent increase, however, it is for a two-year guarantee.  Mrs. Fersch stated she had also received a quote from Eye Med, however, most of the local eye doctors do not take that insurance.  Mrs. Fersch stated the second option from VSP would be a slightly lower premium but the frequency of replacing frames would be every two years rather than every year.  Mr. Wisniewski stated he would prefer to go with VSP Option 2, and Mr. Smith stated he agreed as that would keep the premium basically the same.  Mrs. Fersch stated she would request three readings on this legislation at the next Council meeting.  Mrs. Hammond moved to approve and forward the legislation for VSP Option 2 to Council; Mr. Wisniewski seconded the motion.  Roll call was taken with Mrs. Sanders, Mr. Sauer, Mrs. Hammond, Mr. Wisniewski, Mr. Sabatino, Mr. Fix, and Mr. Smith voting “Yea.”  Motion passed, 7-0.  

 

D.        Review and request for motion to approve draft ordinance adopting a Capital Improvements Plan (CIP) for 2010-2014.  Mr. Bachman stated he had distributed the Capital Improvements Plan for review by Council and he had not received any comments.  Mr. Bachman gave a brief review of the CIP projects and stated he would answer any questions anyone might have.  Mr. Fix clarified that the $25,000 shown as Project P&R-05 and $25,000 shown as Project P&R-09 are not projects that are included in the budget and should not be included in the CIP for 2010.  Mr. Bachman stated he would make those changes to the Parks and Recreation portion of the CIP for 2010.  Mr. Wisniewski moved to approve the CIP and forward to Council with the two deletions; Mrs. Sanders seconded the motion.  Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Smith, Mr. Sabatino, Mr. Wisniewski, Mrs. Sanders, and Mr. Sauer voting “Yea.”  Motion passed, 7-0.

 

3.         ADJOURNMENT.  There being nothing further, Mr. Smith moved to adjourn; Mrs. Hammond seconded the motion.  Mrs. Hammond, Mr. Sauer, Mr. Sabatino, Mr. Smith, Mr. Fix, Mr. Wisniewski, and Mrs. Sanders voted "Aye."  Motion carried, 7-0.  The Special Finance Committee adjourned at 6:45 P.M., November 11, 2009.

 

RESPECTFULLY SUBMITTED:

 

 

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Lynda D. Yartin, Municipal Clerk