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Home My WebLink About12-09-2002MINUTES OF THE BOARD OF PUBLIC WORKS AND SAFETY OF THE CITY OF JEFFERSONVILLE, INDIANA DECEMBER 9, 2002 Mayor Galligan called the meeting to order at 9:30 a.m. and on call of the roll those members present Were: City Engineer Miller and Councilperson Waiz. Also present were: Wastewater Treatment Dir. Crawford. Safety Director Rodden, Vehicle Maintenance Director Drury, Larry. Decker who sat in [br Building Commissioner Gavin, Personnel Director Ellis, Animal Shelter Director Wiider~ Administrator Rich Davis, Planning and Zoning Director Padgett, Engineer Dixon, Animal Shelter Office Manager Gartelman, Police ChiefPavey, Fire Chief Mike Smith, and Clerk Lynne Mayfield. HEALTH INSURANCE Edward Culpepper Cooper of the Culpepper Group appeared betbre the Board to present Health Insurance quotes from Anthem and Humana for January' 1, 2003. He said Stewart Miller was also asked to quote a price changing the contract from April 1, 2003 to January 1~ 2003. The best quote is from Humana as they meet all of the city's needs. Humana also gave a fully insured quote and Anthem would not. Cooper said the problem with changing is leaving Ullico with three months to go on the contract because the City would be responsible t~or paying Ullico back for not meeting our contractual obligation of 12 months. If the city changes insurance companies noxv the City would be responsible for paying runoff claims from Stewart Miller and those run off claims would be counted as run in claims for the new contract with Humana Cooper said Cindy Wise with Humana sent an E-mail stating that it does not make sense to change carriers at tbis time because of the current attachment point. Cooper said he doesn't know what the City should do but said that Humana's quote is good tbr the next twelve months Councilperson Waiz said that we've gone too far into the policy to make a switch at this time When he got the quote from Anthem we were at 1.8 million in claims liability plus they were going to give us free administration fees. We should have taken it then said Councilperson Waiz, as it is too late jump on board now. Mayor Galligan asked Mr Cooper to present this information to the City Council. The Mayor said that while he doesWt disagree with Councilperson Waiz, he doesn't think it would have made much difi'erence to move a month sooner. Councilperson Waiz said the City had never been in this situatio~ o['being under funded until a year and a half ago. He also said that we haven't gotten the discounts that we had with Humana. Mr. Cooper said we could go over this again starting in Februa~' to prepare for March. 2003 HOLIDAY SCHEDULE Engineer Miller made the motion to approve the 2003 Holiday Schedule, seconded by Councitperson Waiz and carried unanimously. SALE OF 1991 DODGE SPIRIT City Attorney Galligan told the Board that a city owned Gray 1991 Dodge Spirit with approximately 80,000 to 90,000 miles on it needs to be disDosed of. She said the trade-in value s $869.00. An offer has been made for the value of $869.00 Engineer Miller made the motion to approve the sale of the 1991 Dodge Spirit. seconded by Councilperson Waiz and carried unanimously. GLENN LEWIS CONDEMNATION City Attorney Galligan told the Board that by re-doing the Glenn Lewis condemnation the City is in no way admitting anything improperly done or any wrongdoing. She said litigations are pending and the lawsuit doesn't have to be answered until the beginning of the year. ATTEST: CLEP~-)F~,~ SURER Diahe Swank From: To: Cc: Sent: Attach: Subject: "Cindy Wise" <cwise@humana.com> <dswank@culpeppergmupinc.com> "Christina Collins" <ccollins@humana.com>; "Susan Beach" <sbeach@humana.com> Tuesday, No. vember 26. 2002 10:00 AM City of Jeffersonvilie Fully Exhibit.xls; City of Jeffersonville SF Claims.xls; City of Jeffersonville SF Exhibit. xls City of Jeffersonville Quote from Humana The following message was fi.om our underwriter who rated the case, and thought it may be of interest to you. Good luck This case is nmning over their current attachment point (Claims $1,191,350...attachment $1,094,904). Since they are over their current attachment point, they will not have to pay claims out of their pocket, they will be paid by the stop loss carrier assuming they stay on the same pace. Due to this fact, it does not make sense to chan~e carriers. I have attache~ffour self fanded quote and have provided rates for our ;/0/60 and 70/64 standard plans. Those plans are .988 and .957 to the current plan design respectfully. I have attached the self funded claims work up for the comparable plan and the fully insured claims exhibit for the 70/60 which reflects a plan change of .988 fi.om the current design. The discount factor used was .814. 70/60 100Ded2,500Coin 10Ov 50Er 5/15/30Rx PCR ISingle IFamily / ~$353.47 . [:$989.06 70/64100Ded 2,500Coinl0Ov 50Er 5/15/30RxPCR ISingle [Family $342.51 [5958.40 (See attached file: City of Jeffersonville Fully Exhibit.xls) Self Funded quote and exhibit (See attached file: City of Jeffersonville SF Claims.xls)(See attached file: City of Jeffersonville SF Exhibit.xls) 12/7/02 C~,T~; OF JEFFERSONVILLE PROPOSALS: Plan Year Jan. '1, 2003 thru Dec. 31, 2003 Third Party Administrator Stewart C. Miller Current Anthem Humana Humana Benefits Current Current Similar Comparable Fully-Ins. Reinsurance Carrier: Current thru 3/3'1/0 Renewal/ULLICO Proposal Prepos'a[ 70/60 70/64 PPg Network Sagamore Sagamore Anthem Humana Humana Reinsurance Carrier: ULLICO ULLICO Anthem Humane Humana Specific Deductible $75,000 $75,000 $75,000 $75,000 Fully-ins. Contract Basis/Specific PAID PAID 15/12 15/12 No Run-In Coy. Contract Basis/Aggregate PAtD PAID 12/12 15/12 FIXED COSTS #EE ULLICO/$7$000 Renewal/575,000 Anthem Humana 70/60 70/64 Specific Premium/Single 80 $19.52 $27.33 $34.72 $24.77 P[an Most Similar Specific Prem./Family 16~3 $48.80 $68.33 $34.72 $69.36: to Current 243 1o0% InNetwork 80% In-Network Aggregate Prem./Single $3.57 $3.57 $6.50 $3.07 80% Out-Network 60% Out-Network Aggregate Pram./Family $9.99 $9.99 $6.50 $8.21 Total Premium,Wlonth $11,429.97 $15,238.16 $10,016.46 $14,871.11 Annual Stop/Loss Premium $137,t59.64 $182,857.92 $120,197.52 $178,453.32 Administrative Services 80 $23.01 $23.01 $52.93 $36.21 16~3 Monthly Admin 243 $5,591.43 $5,591.43 $12,861.99 $8,799.03 Annual Administration Fees $67,097.t6 $67,097.t6 $'154,343.88 $'105,588.36 Fixed Costs per Employee 80 $46.10, $53.91 $94.15 $64.05 163 $81.80 $101,33 $94.15 $113.78 Monthly Fixed Costs 243 $17,021.40 $20,829.59 $22,878.45 $23,670.14 Annual Fixed Costs $204,256.80 $249,955.08 $274,541.40 $284,041.68 Increase/(Decrease) over Current $45,698.28 $70,284.60 $79,784.88 % Difference over Current I 22.4% 34.4% 39.1% Increase/(Decrease) over Renewal Renewal $24,586.32 $34,086.60 CLAIMS COSTS S.Miller/$7$,0g0 Renewal/S75,000 Anthem Humana Annual Expected Claims $1,7'12,882.98 $2,65'1,539.97 $2,10'1,736.16 $1,734,385.73 Attachment Pt/Employee 80 $332.65 $514.94 $900.95 $336.83 Attachment Pt/Family t63 $931.37 $1,441.76 $900.95 $943.06 243 $178,425.31 $276,202.08 $218,930.85 $180,665.18 Fully-Insured Rates/Mo. Max Annual Claims Liability $2,'141,'103.72 $3,3'14,424.96 $2,627,170.20 $2,167,982.'16 Single & Family Humana 70160 Humana 70~64 Increase/(Decrease) overCurrent $1,173,321.24 $486,066.48 $26,878.44 $353.47 $342.51 % Difference over Current [ 54.8% 22. 7% 1.3% $989.06 $958.40 Increase/(Decrease) over Renewal Renewal ($687,254.76) ($1,146,442.80) TOTAL MAXIMUM COSTS S.Miller/$75,000 SCM Renewal Anthem Hb~ii&i~a Humana 70160 Humana 70164 (Fixed Costs + Max. Claims) Maximum Liability/Year $2,345,360.52 $3,564,380.04 $2,901,71'1.60 $2,452,023.84 $2,273,932.56 $2,203,440.00 Incraase/(Decrease) over Current $1,219,019.52 $556,351.08 $106,663.32 ($71,427.96) ($141,920.52) % Difference over Current I 52.0% 23.7% 4.5% -3.0% -6.1% Increase/(Decraase) overRenewal Jan 1. Renewal ($662,668.44) ($1,112,356.20) ($1,290,447.48) ($1,360,940.04) I I,,;~,,i~a[;onal Rates Cu,,~;.~hru 3131/¢ SCM Renewal Anthem Humana Employee Only I $378.75 $568.85 $474.40 $400.88 $353.47 $342.51 FamilyI $1,013.17 $1,543.09 $1,250.66~ $1,056.84 $989.06 $958.40 NOTES: Totals are based on Current Monthly Enrollment. Totals may vary with fluctuations in enrollment. Prepared by Culpepper Group/ds/12/06/02 OFFICE OF THE MAYOR The Honorable Thomas R. Galligan Mayor 812 - 285 - 6400 office 812 - 285 - 6468 fax Room 404 City - County Building 501 E. Court Avenue Jeffersonville, Indiana 47130 Below is the list of holidays for 2003 as approved by the Board of pUblic Works and Safety at their December 9, 2002 meeting: Holiday New Year's Day Martin Luther King Day President's Day Good Friday Election Day Memorial Day Independence Day Labor Day EIection Day Veteran's Day Thanksgiving Day and Day After Christmas Day and Day After Observed Wednesday Monday Monday Friday Tuesday Monday Friday Monday Tuesday Tuesday Janua~ 1,2003 Janua~ 20,2003 Februa~ 17,2003 April18,2003 May 6,2003 May 26,2003 July 4, 2003 September 1, 2003 November 4, 2003 November 11, 2003 Thurs. & Fri. NoV. 27 & 28, 2003 Thurs. & Fri. Dec. 25 & 26, 2003 (Instead of ChriStmas Eve Holiday we are taking Dec. 26 in order to have a four-day holiday) An equal opportunity employer.