HomeMy WebLinkAbout11-29-1995COUNCIL PROCEEDINGS OF THE
COMMON COUNCIL OF THE CITY
OF JEFFERSONVILLE, INDIANA
NOVEMBER 2~ 1995
The Common Council of the City of Jeffersonville met in
regular session in the Multi-P~lrpose Meeting Room in the City-County
Bulldlmg~ Jeffersonvllle,
November 1995.
The meeting was
Indiana~ at 7:3~ P.M, on the 20th day of
Jr.~ with Clerk and Treasurer C. Richard Spencer
Mayor Parker welcomed all in attendance~ asking all
stand as
asked all
flag.
called to order by Mayor Raymond J. Parker
Jr, at the desk.
those present to
Councllperson Steven Stemler gave the invocation. He then
those present to 3oln him In the pledge of allegiance to the
The roll
was called
Andrew Williams III~ Donna M. Frantz,
Wilson; Steven R. Stemler, and
Absent: William Wolpert.
Council President Peggy
Council met with Clarksvil!e Town
and those present were Councilpersons
Peggy Knight Wilder~ Barbara
Robert L. Potter.
Knight Wilder explained the
Council on Monday November 25, 1995
to discuss the Interloca! Agreement~ Clarksvllle voted 5-1 on that.
Council Prsldent Wilder presented the Interlocal Agreement between the
Town of Clarksville~ Indiana and the City of Jeffersonville~ Indiana.
Clerk Treasurer Spencer said there is a letter from the MeiJer Company
concerning the land
will be opening in
aloud. (see copy)
at the corner of Allison Lane and Highway 62 and
1998. Council President Wilder read the letter
Councilperson Potter made the motion to pass the
PAGE 2
NOVEMBER 29, 1995
Interlocal Agreement between Jeffersonville and Cla~ksville seconded
by Councllperson Stemler. Councilperson Williams commented about
splitting of the cost between the two. Mayor Parker called for a roll
call vote and they are as follows:
Ayes: Councllpersons Williams, Frantz, Wi!der~ Wilson,
Stemler, and Potter.
Nays: None.
Mayor Parker commented on the Interlocal Agreement between
Jeffersonvllle and Clarksvllle; he said he thlnks we are one step
closer and one of the biggest economic steps that this City has ever
had. Mayor Parker said he appreciates the Councils help in this
project.
Mayor Parker introduced Attorney Bob Lanum who is representing
Apollo America and Attorney Lanum presented Ordinance No. 95-OR-53~
An Ordinance Of The City Of Jeffersonvllle, Indiana, Amending
Ordinance No. 91-OR-52 In Connection With The $8,0~0.~0 Principal
Amount Of "City Of Jeffersovllle, Indiana, Variable Rate Demand
Economic Development Revenue Bonds (Apollo America Corporation
Project), Series 1991"; approving And Authorizing The Execution And
Delivery Of A First Amendment To Loan Agreement Between The City Of
Jeffersonvllle, Indiana (The "Issurer") And Apollo America Corporation
(The "Company")~ An Amended And Restated Trust Indents]re Among The
Issurer, Tokai Trust Company Of New York And PNC Bank, Indiana, Inc.
And Any And All Other Related Documents. Attorney Lanum explained the
need for the amendment. Following all discussion Councllperson Potter
made the motion to suspend the rules on Ordinance No. 95-OR-53 for
PAGE 3
NOVEMBER 29, 1995
passing on all three readings, seconded by Council President Wilder.
CouDcllperson Potter made the motion to pass OrdlnaDce No. 95-OR-53,
seconded by Council President Wilder, and
on all three readings
carrled unanimously.
Councllperson
7:15pm.
Dr.
Department is
Wllllam Wolpert came into the meeting at
Kevln Burke~ representing the
appearing before the Council to
Program. Doctor Burke said he would like for
Defibrillator at each of the Firehouses and have
personnel be trained to use it. There will be
Yellow Ambulance
Firehouse and
Clark County Health
discuss First Response
the City to get a
the Fire Department
a 40 hour course,
is the County Vendor and they will actually come into
train the personnel during regular hours. The
Deflbrll!stor will cost $4~4~.~ and the cost of the training will be
covered by County Govenment~ To initiate this Dro Burke would have to
appear before the Board of Public Works and Safety. There was much
discussion on this sub3ect. Mayor Parker said he would like to have
Dr. Burke come before the Board of Public Works and Safety in more
detail and involved explainatlon and have the Fire Chief and Police
Chief there.
Councilperson Steve Stemler, had a few comments about the
Insurance Audit Report, he explained the beginning of the Audit and
the Committee. He said they met with Authur Anderson Co.
representative~ John Brooks in the Louisville Office and the exit
audit meeting was held on November 29~ 1995 for 2 1/2 hrs..
Councilperson Stemler said the report in front of the Mayor and the
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NOVEMBER 29, 1995
Councilmembers is the exact report that was discussed in the meeting
today. Councllperson Stemler introduced Ruth Lee, Consultant with
Authur Anderson Co., Ms.
Insurance Audit Report.
Questions were also asked.
a Job description on it and
that the Agent of Record
Consultant to both
Lee explained the review and the whole
There were comments and discussion.
Councll President Wilder has a paper with
she said she has one questlon,"It says
professional services developed in 1992. Mr. Cooper would
classify yourself as a Consultant for the City of Jeffersonville?"
appointed by the Mayor serves as the
groups under the terms of the discrlption of
you
Mr.
Cooper answered
only two methods
Company,
statute,
Company,
in discussing this in the exit interview, there are
in which you can represent a client to an Insurance
and one is from a Agent of Record point of view and that by
and the other one is as a Consultant to the Insurance
based upon this report I still feel like !'am a commissioned
Agent of Record, but my duty based upon a third party person, looking
at me in comparison to other Agents of Record I would have to agree
with Ruth that ! do have expanded duties, I think I do have an
expanded office and therefore, I do perform things that would be
viewed as a Consultant but, I do not receive Consultant fees I receive
Agent Of Record commission, and therefore, I can be only one or the
other legally so to answer your question I do think I have the
expertise to be a Consultant but, I receive Agent Of Record commission
so I am only an Agent. But I do do things a normal Consultant will
PAGE 5
NOVEMBER 29, 1995
dOd I think she is going to discuss this more later in her report".
Council President Wilder said she would like to ask "is this
description of professional services approved by the Board of Public
Works, Mr. Cooper looked at the paper and said "this is a Job
description that is approved by my employer whose is the Mayor of the
City Of Jeffersonvllte. Council President Wilder said so if you're an
employee of the City Of Jeffersonville, Mr. Cooper said a Job
description, not an employee." Ms. Lee explained more of the review.
Ms. Lee said the current commission rate of 5% is very standard in the
insured market place, in fact its what we see almost all the time that
amount for an Agent that is very involved in managing the Health Plan.
The compensation is viewed as being relative to the amount of time
thats being spent on the plan. Council President Wilder asked "who
established the rates back in 1992~ Mayor Parker did you establish the
commission in 19927 Mayor Parker said basically the essence of the
conversation that I had with the Agent Of Record was that as a new
Mayor and him having served under two prior administrations was that I
would basically put him on probation to see how it would work for one
year, and in any event that that would prove beneficial to the
Community, the City then he would continue to served but we never
discussed any particular Fates, prices, fees or anything of that
nature, no." Council President Wilder said so Humana could have raised
the commission and you really wouldn't been aware of it? Mayor Parker
said "only if he would tell me that. Council President Wilder said
"because there is an increase by 4% from 1994-95, 1995-96~ who
approved that 4% increase"? Mro Cooper, said "that increase was
PAGE 6
NOVEMBER 29, 1995
approved not for myself but for claims that would be expected or the
attachment point, or the specific insurance or relnsurance~ to go one
year back, and the only person there, I hate to put him on the spot,
was Andrew Williams in 1991 the City Council actually has to get
credit for the success of this self-funded plan because the City
Council said Edward Culpepper Cooper do a report on the last 8 years
tell ~s if we will be making a mistake if we go self-funded. I came
back and did a report on self-funded for the 8 years and I said here
is the report, 4 years you would be very successful~ or 4 years you
would be making a mlstake~ so whats your recommendation, I have none,
the City Council said "we want to be self-funded" we want you to do
it, I said ok and we went through the Clerk-Treasurer because of the
consistancy of his office in being there. We dlslgned a plan, a
document went out with quotations~ we used Blue Cross Blue Shield at
that time was their name to design the plan document to be quoted by
other insurance Companies, at that time Accordia, Blue Cross Blue
Shield came back with a quote~ Great West came back with a quote,
Massmutual came back with a quote~ and Humana came back with a quote,
it was my task to recommend to at that time a new Mayor and a new
Council which I failed to do and I apologize for that because you were
a new Council and we had from January 1 to April 1, to implement a
self-funded plan that we've been told to do by the City Council. In
doing that what we did was to take the lowest and best quotation and
she addressed this there may have been someone who had a lesser
Administrative cost that they had not slgnlficiantly penetrated the
Hospital and Doctor network. Some of you will probably remember this,
PAGE 7
NOVEMBER 29, 1995
we had a contract with Clark Memorial Hospital a year later that
contract ran out~ and the Clerk-Treasurer the new Mayor~ Mr. Potter
several Doctors went to the Hospital and got a side agreement to get
the same discounts and PTO network even though Humana didn't have a
contract, and then the next year they had a contract again, but how
that commission was estsbllshed was, i said to the new Mayor and the
old City Council this is what you want me to do, I will try to make it
work, it was not my recommendation he said ok when I put this in
quotation that I receive the same commission that I receive under the
old plan as I do under the new plan quotation, and the answer was yes,
and that's how we got the commission. Council President Wilder, asked
"which would have been under the contract that you had?" Mr. Cooper
said "I don't have a contract." Council President Wilder said "this
says that you appeared before the Board of Public Works explaining the
self insurance plan, this goes back to Monday April 1. 1991,
following all discussion and answering questions, that Manager Goldman
made the motion to approve the contract as presented to be effected
April 1, 1991." Mr. Cooper said "absolutely that contract is between
Humana and the City of Jeff, its not between me and the City of Jeff
or myself and Humana, and thats what the contract means its the plan
document in your respect, all I had was a job description and
supposedly if I made this thing work I wouldn't take a cut in pay."
Council President Wilder asked "How often do you rebid these?" Mr.
Cooper said, "every year for the last three years." That as quote not
bid, legally there is a difference." Ms. Lee sald~ generally the Agent
Of Record doesn't have a contract they have a letter that they can
PAGE 8
NOVEMBER 29, 1995
provide to any carrier that states they have been appointed as Agent
Of Record and that's really all that exhists~ and what that means is
that if another Agent comes to the same Insurance Company and says we
want a quote from the City of Jeffersonvil!e that Insurance Company
will say I am sorry we cannot release a proposal to you because we
have an Agent Of Record letter from somebody else. So generally it is
not a contractual arrangement." Ms. Lee explained more of the review.
Council President Wilder~ asked "who wrote the Job description~ Mayor
Parker?" Mayor Parker said, I think the prior administration didn't it
Pepper?" Mr. Cooper answered, "what we did we took
description by at that time Mayor Orem and before
the change of Companies we reviewed what I was
additions~ deletions and there were agreed upon
think you both signed that in 1992 so they agreed
Council President Wilder said you agreed with everything in here? Mr.
Cooper said ! think we both agreed or we would not have signed it.
Council President Wilder,
accept!on to claims below
that~ don't you think you
a agreed upon Job
I actually started
doings there were
Job description I
what was in there.
Mr. Cooper said I didn't have a problem with that what I found out was
I had to pay a lot to make those decisions and thats what her (Ms.
Lee) and I talked about, because I took on that responsibility based
on the City Councils request~ my E. & O. insurance went up 20%
because I took on the Judiciary responsibility and I knew that at that
time I Just did not know how much that would cost. Ms. Lee explained
more of the review. She suggested to go to multi-year cycle for
and then start the evaluate and authorize
B10,000.00 if your having a problem with
should have taken them out at that time?
PAGE 9
NOVEMBER 29, 1995
health insurance plan. Council President Wilder asked do you have
to take q~otes from different Agent of ~ecord~ when the contract with
the hospitals are up, do those have to coincide. Mayor Parker there
are some minutes from the Board of Public Works on January 13, 1992
where Mr Olsen with Robertson and Conner came to the Board of Works
and he wanted an opportunity to bid on the the insurance benefit and
yol~ said that the current Agent of Record would be retained during the
current contract which is up for renewal in May and at that point I
think you gave the indication that you would rebld at that point does
that mean you would be rebiddlng on what you felt that was a contract
with Mr. Cooper or did you want to wait when the hospital contract was
up? Mayor Parker said, "I don't remember exactly from those notes how
that came about, I do remember Mr. Olsen coming in and asking to bid
and I told him that it would be available to anybody and everybody".
Council President Wilder, "but it wasn't in writing". Ms. Lee said
that the multi-plan year contract to conincide with the end of year
plan which would be the same time that you would have your contract
with the hospitals. Council President Wilder said the Board of Works
m~nutes don't refleck that it was ever opened for bids." Mayor Parker
said, he does not recall that he has not seen those minutes". Ms. Lee
discussed the reserve that is the plans also discussed the age limit
for dependents on the plan. Ms. Lee stated that we have a rich plan,
a very good plan of bendfits for the employees. There are a lot of
100% benefits, and they do not see that very much anymore. Clerk
Treasurer Spencer told Ms. Lee that the finincial point that as of
January 1993 there was $257,000.00 balance plus that we started the 93
PAGE 10
NOVEMBER 29~ 1995
year in, the 92 records are all stored, and at the end of this year we
will have excess of $600~000.~0 in the non-reverting health insurance
account and it could possibly be $70~,0~.0~ with 2 months to go. and
one year the Council under planned by S100~0~.0~ so if you add that
in there it would be a little bit more. Mayor Parker said that he has
listened to this twice today and I want to compliment you its a very
thorough report and I learned more about insurance this morning and
this evening than I have known in my life and I think it is very
thorough and as a Consultant let me ask you this question. As a
Consultant looking at public sector employee benefits packages would
you consider the one that I have been able to offer the City
employees~ the Board of Public Works~ Clerk Treasurer, the City
Council's backing as excellent plan~ do you think it's a good plan?"
Ms. Lee responded "as ~ said that it is a very rich ptan, many many
employers are cutting back on benefits there putting in higher
copayments and deductibles to be met to maintain the thoughts for any
number of reasons so I would classify it
set of credentials. Mayor Parker said
better since being the ultimate person
asked questions. Mayor Parker said that
curtainly as a broad and rich
that makes him feel a little
responsible for that. Ms. Lee
the other question I have is
with the understanding of the part of the Agent Of Record commission
or consulting service that I have contracted for do they appear to be
reasonable in your opinion as an expert so to speak?" Ms. Lee
answered, as I stated in my report they are very standard for an
insured plan and what you've done is transferred an insured rate of
commission over into a self-insured plan and as long as the City is
PAGE 11
NOVEMBER 29~ 1995
comfortable with their range of duties and functions that are being
performed Justify the rate of compensation and thats fine~ you know if
you have a 1~% rate of commission in there I would say no thata
outrageous. Council President Wilder said that don't you state on
page 18 that in another area of cost savings is reduced commission
that physically commissioned on the insured plan thats based on total
premiums. Ms. Lee answered, yes. She said there a whole range of
insurance agents, this is the whole range of consultants and what we
do to the program. You will find insurance Agents or Brokers who only
show up once a year and they deliver your renewal and you either smile
and shake his hand and he or she is out the door and you don't see
them again unless they invite you to play golf a couple of times. You
don't get any advice on plan designs, you don't get any advice on
types of agreements you all chance for him to and from the preferred
provider arrangement they don't do any negotiating on your behalf with
Insurance Companies and take a look at other options. Would that type
of person be worth this type of money NO, and its really up to you all
to decide on an annual basis as you review whats going on, how much
you want in terms of services and how much those services are worth to
you. There was more discussion on the review. Councilperson Stemler
told Ms. Lee that he really appreciated her presentations and he would
recommend final recommendation from the Insurance group that we take
this information and implement those points that we should have the
authority to the lmcoming Mayor, the Council picks up and does the
necessary things to. Thank You very much. Council President Wilder
said she would like to say briefly before we adJourn~ that I
,,,~ NOU 28 '95 11:88 FR MEIJER REAL ESTATE 6i6 991 2412 TO 918122856468 P.02/02
MEqER
Senior ~ ~state Reuresemative
pla: 616/791-3409
FX: 616FTP1-2412
November 21{, 199:5
Hon. Raymond J. Parker, Ir.
City of 1effersonville
501 t/. Co,an Ave. - Room 416
J¢ffersonvill¢, Indi:ma 47130
Re:
Proposed Meijer Store
Jeffersonville, Indiana
Dear Mayor Parker:
Please be advised that Meijer, Inc. has exercised its option to purchase approximately SS acres of
land at the northeast corner of Allison Lane and S.R. 62. A dosing will most likely occur in the
first week of December.
As I've indicated in the past, M¢ij~r plans to open its first stores in the Louisville/Southern
Indiana market sometime in 1997. Although I cannot reveal si~cifi¢ dates for store ol~nings at
this tim~, our current schedule indicatas that our Seffersonville store will open in 1998.
I rh~nk you for your aasistanc~ regarding this project and, I look forward to continue working
with the City as this development go~s forward. If you have any questions, or would !il~e
additional information, please contact me at the number listed above.
Sin~rely,
Senior Real Estate Representative
MeiJer, inc. 2929 Walker Avenue, N.W,, Grand Rapids, Michigan 49504 - g428 Telephone (616) 4.5.3-6711