031191-Work Session492
MINUTES
City Commission, Sanford, Florida
~hRCH 1!,
The cxty commlssxon oI ~ne GlSy Or ~anrora, ~'-orZoa, met in wor~ ~sion on mu~,d~,
March ll,
Florida.
1991 at 5:00 P.M. in the City Manager's Conference Room, City Hall, Sanford,
Present: Mayor-Commissioner Bettye D. Smith
Commissioner Whitey Eckstein
Commissioner Robert B. Thomas
Commissioner A. A. McClanahan
Commissioner Lon Howell
City Attorney William L. Colbert
City Manager William A. Simmons
City Clerk Janet R. Donahoe
The Chairman called the meeting to Order.
The first item of business was a discussion regarding Health Insurance.
City Manager reported that the purpose of this presentation is to discuss possible
alternatives designed to deal with escalating health care costs, and at the same time insure
that the quality of health care benefits are not diminished, and that Staff would like
direction from the City Commission.
Director of Personnel Tim McCauley reported that the first section of the Insurance
Briefing Document addresses cost containment, and briefly reviewed four sample cost
containment models as follows: _
Tier System for Retiree Benefits: Currently, retirees receive the same benefits
as all other employees, and that there is no difference in price or coverage. Further, if the
Comr~ission opts to go with longevity in terms of percentage of payment, the issue still
remains of what will happen when the retiree reaches the medicare eligibility age.
Medicare Supplement Concept: This plan rarely provides prescription riders, and
when available, the premiums are very expensive. Also, the provider claims to use group
rates, however, rates are age based, and vary depending upon participant's place of
residence. Further, the City would take on the characteristics of an insurance company
thereby trying to meet the individual needs of all employees, and that he would not recommend
taking said approach.
H.M.O Concept: If this plan was implemented last year, the City would have saved
$264,000.00. Further, employees must use provider's facilities and services, which are
limited, that up until last year there was only one primary facility, which is located in
Maitland (15 miles from Sanford), however, another center is being built in Enterprise, and
that there is a negative perception regarding the quality of care.
Self Insurance Concept: This is a good concept for a small work group, that the
larger the group (City of Sanford has 450 employees including retirees), the more liability
extends, that the plan would require a substantial cash reserve in estimated amount of
$750,000.00 to pay claims, that the initial liability could be in excess of what the City is
currently paying, that the City would be forced to make medical decisions, and that he does
not recommend this approach.
Director of Personnel further stated that he has some Legislative Concerns, that there is a
very good possibility that the state and the federal government will tell the City how to
administer insurance programs, and that there is a good chance the Kennedy/Waxman Bill will
pass this year.
MINUTES
City Commission, Sanford, Florida
Hatch 11,
493
19 91
Personnel Director distributed Health Insurance Recommendations regarding
Retirement and Sample Cost Containment Model for Health Insurance, and stated that the first
issue that needs to be addressed is how to define retirement in terms of health insurance
benefits to be received at the time of retirement. Currently, an employee can be considered
eligible for continuation of City paid health insurance benefits at age 62, with 10 years of
service, and that the long term impact would be considerable. Further, the tier system is
a feasible alternative. He suggested that the City Commission consider a flat definition of
retirement whereby the employee would become eligible for continuation of City paid health
insurance benefits upon completion of 25 years of service, that current retirees with the
City would be grandfathered in, and that upon attainment of age 65 all entitlement to City
paid health insurance would cease. Further, the proposed plan could negate an anticipated
18% to 20% in industry increased premiums, and possibly decrease both City cost and employee
cost for dependents.
Commissioner Howell proposed that members of the Commission be considered eligible
for continuation of City paid health insurance upon completion of 10 years of service with
the City, rather than the proposed 25 years of service. Commissioner McClanahan concurred.
Mayor Smith and Commissioner Eckstein were opposed.
Commissioner McClanahan asked when projected rates will be available for next year.
Personnel Director reported that projected rates will be available in April, 1991.
Commissioner Eckstein reported that he supports proposed recommendations A through
D, that said plan will save the City money and will help City employees as well.
Commissioner McClanahan reported that he is opposed to proposed recommendation C,
and that the City should provide some type of allowance for those persons age 65.
Director of Personnel reported that the City Commission could authorize a stipend
at age 65, whereby retiree could purchase his/her own supplemental insurance plan.
The City Commission directed Staff to prepare figures for present and proposed
employee health insurance plans, and for a retiree stipend at a~e 65.
The next item of business was a discussion regarding Drug Screening Contract with
Roche Biomedical Laboratories for FY 91/92.
City Manager recommended continuation of said Drug Screening Contract with Roche
Biomedical Laboratories.
Commissioner Howell proposed that the Mayor and City Commissioners be required to
test as well. Mayor Smith and Commissioner Eckstein were opposed. The Commission took no
action.
The Commission next discussed CDBG Emergency Repair Program.
City Manager reported that in 1988, the City Commission adopted the City Housing
Rehabilitation Program Guidelines and Operational Manual, that the portion regarding the
emergency repair program was left blank, that said program would allow for a portion of CDBG
funds acquired from Seminole County to be utilized for emergency repairs to facilities that
for one reason or another could not be reached on the regular rehabilitation. Further, said
program will provide up to $7,500.00 for houses that have become unsafe and/or are
deteriorating at an accelerated rate, which will provide greater flexibility and remedy
problems on a more timely basis, and recommended approval of said emergency repair program.
The Commission took no action.
· -:,'. - .':...:......... ':.:
City Commission, Sanford, Florida
March 11,
19 91
Mayor Smith asked for comments regarding the request submitted by Helen Stairs for
a variance for the property located at 606 Park Avenue.
Commissioner Howell reported that said property was rezoned, that he believed it
would be appropriate to have mixed uses in some areas, and that he is in favor of granting
said variance.
Mayor Smith reported that she has received complaints regarding Condemnation Report
#89-15, 2018 Mellonville Avenue, Sara Jacobson, owner, and asked Staff what can be done to
remedy the problem.
City Manager reported that on January 14, 1991, the Commission authorized a 60 day
extension regarding said property, with the condition that owner complete exterior repairs
before any additional extensions are granted, that said extension expires March 14, 1991, and
suggested that said item be placed on the March 25, 1991 Regular Meeting Agenda for
Commission consideration. The Commission concurred.
City Manager proposed that a budget Work Session be tentatively scheduled for June
24, 1991, and that other Work Sessions regarding same be scheduled as needed. The Commission
concurred.
Public Works Director Jerry Herman reported that on February 11, 1991, the City
Commission authorized the donation of 800 crepe myrtle trees for Chamber of Commerce Annual
Plant Sale (400), and for Adopt a Tree Program (400); that Staff has received an offer to
purchase 500 trees, and requested approval to sell an additional 100 to 150 trees. The
consensus of the Commission was to approve said request.
There being no further business, the meeting was adjourned.
'lq A~Y O R
Attest:
//City Clerk