The URL can be used to link to this page

Home My WebLink About03-24-03 Personnel & Finance • t nitmtttu .leport 1 *i zottttui att Pita= toututitat The March 24, 2003 meeting of the Personnel and Finance Committee was called to order by its Chairperson, Council Member James Aranowski at 4:10 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, Pfeifer, Kelly, Coleman, Kirsits, Aranowski, King,Kuspa and White; Bob Case,Susan Wallace, City Controller Rick O1lett,Keith Crane, Kevin Webber, Greg Downs, Terry Bland of the §klUth VIVO triblritt and Kathleen Cekanski-Farrand, Council Attorney. Council Member Aranowski called for a presentation on three (3) resolutions, namely Bill No. 03- 33 addressing an interest in purchasing 52600 Olive Road, Bill No. 03-34 addressing an interest in purchasing 52650 Olive Road, and Bill No. 03-35 expressing its interest in purchasing 24514 Cleveland Road. Council Member Coleman inquired of the Council Attorney whether it was appropriate to hear the three(3) resolutions together. Mrs. Cekanski-Farrand stated that since the three (3) parcels are dealing with the same project that it would be appropriate to hear them together by the Committee. Robert D. Case, Senior Economic Development Planner with Community & Economic Development made the presentation. He noted that he is acting as a purchasing agent for the acquisition of these three (3) properties are necessary for a public improvement project. He noted that he has been in contact with all of the affected property owners and that they are all in favor of having their properties acquired. Following discussion, Council Member King made a motion, seconded by Council Member Kelly that Bill Nos. 03-33, 03-34, and 03-35 be recommended favorably to Council. The motion passed. Council Member Aranowski then asked for a presentation on the City's Self-Insurance Program, noting that this is a continuance of the discussion held last Fall. City Controller Rick 011ett and Kevin Webber then provided a 16-page handout which tracked the power point presentation (copy attached). It was noted that 2002 is the "new worst year ever". They are forecasting high costs. The current contract was for five (5) years, and their are many uncertainties for 2004. It was noted that they have studied trends in the industry. They noted that it is "critical"to have reserves and that they must restore reserves. Mr. Webber noted that these are the same slides that were shown to the Council last November,except that they have been updated. In response to a question from Council President White, it was noted that the reserves should be $2 million in the General Fund. It was noted that many pro-active measures have been implemented such as "rapid scans"and other diagnostic testing. Susan Wallace noted that their are many health club options such as O'Brien, etc at discounted rates,and that the flex dollars are on a"use it or lose it basis". • Council Member Pfeifer inquired whether the Y-programs are included. Ms. Wallace stated that - i S Personnel and Finance Committee March 24, 2003 Page 2 only those companies which have payroll deduction are currently used. Council Member King noted that the huge spikes are in other areas. He inquired whether the city's efforts are hitting the fight targets. Susan Wallace stated that in the infectious category it was one (1) claim, and in the injury category it was for one(1) child. Dr. Varner inquired whether there is any movement to have a program where there would be a general pool of employees and a high risk pool of employees. Greg Downs stated that this is a very complex issue legally. The city has been very pro-active however the jury is out whether such programs work. He noted that Abbot Laboratories and Johnson &Johnson are conducting studies. Council Member Pfeifer cautioned that the impact on infectious diseases or morbid obesity are far beyond just what the city pays out. Council Member Coleman noted that often specific behavior results in detrimental effects. He inquired whether the city should offer incentives to overcome unhealthy behavior. • Susan Wallace noted that there is a program in place that would pay up to $500 if an employee successful quits smoking,noting that only one person has qualified for the incentive. Greg Downs stated that there is no"silver bullet". He stated that the city has to face the facts that it has an aging workforce and the costs of medicines are not going down. Council Member King thanked everyone for their information, but inquired as to what the city is trying to accomplish. He noted that the Administration has given two (2) presentations. He questioned whether is was just for information sharing or whether we should be trying t o move into another direction. He suggested that perhaps a fundamental choice should be made. For example, the City of South Bend can not afford to continue to pay for growing costs and that a set dollar amount be placed, such as a$5 million cap. What would have to be done to break the cycle of going over budget by almost$2 million. Greg Downs noted that the city has taken steps over the past ten (10) years such as instituting various incentives and PPO, noting that the figures may be worse if they were not taken. Now the city as at a point where it will be forced to take unpopular steps such as shifting the percentages of cost-sharing. Council Member King suggested that perhaps there could be tiers of coverage,instead of providing a Cadillac version for all employees at taxpayers expense. He stated that the trend is not going to go away and that the city must look at alternatives. He suggested that alternatives be prepared for the next Committee meeting when this topic is discussed. Kevin Webber stated that it is "all about the spectrum of paying". Dramatic shifting in costs may • be necessary,often with the first year shift being so large that the employees would"choke on it". Susan Wallace noted that currently a single employee is paying 18% of the cost when it should be Personnel and Finance Committee March 24, 2003 Page 3 25%;and that an employee wanting family coverage should be paying 50%. City Controller Rick O1lett suggested having another meeting scheduled on this topic in June. Council Member Kirsits noted that several Fast Coast cities have to sign a contract that they will not smoke. He suggested looking toward hiring a smoke-free employees. Council Member Kelly noted that cost shifting has taken place in the private sector. He noted that he and his wife experienced major medical expenses and that he would be happy to put out more money for coverage. Council Member Kirsits requested a breakdown of costs by department, noting that since the mandatory physical program has been in place in the Fire Department that many improvements have resulted. Susan Wallace stated that that information can be provided. Council Member Aranowski stated that he would schedule another meeting on this topic in June. Greg Downs announced that Kevin Webber will be moving on and that Mike Balson would be coming on board. • There being no further business to come before the Committee, Council Member Aranowski adjourned the meeting at 5:07 p.m. Respectfully submitted, Council Member James Aranowski, Chairperson Personnel and Finance Committee KCF:kmf Attachments •