HomeMy WebLinkAboutMinutes_GGAF_10.05.2009
MINUTES
GENERAL GOVERNMENT AND FINANCE (GGAF) ADVISORY SUBCOMMITTEE
OF THE CITY OF GEORGETOWN, TEXAS
The General Government and Finance (GGAF) Advisory Subcommittee met at 1:30 p.m. on
Monday, October 5, 2009, in the City Hall Main Floor Conference Room, located at 113 East
8th Street, Georgetown, Texas.
Keith Brainard welcomed everyone to the meeting and called the meeting to order at 1:35
p.m.
1. Review of staff recommendations on health care proposals.
Kevin Russell gave an overview presentation on the City of Georgetown’s current efforts to establish
and maintain a competitive position in its defined market. HR Staff and the Benefits Committee
reviewed the proposals from the providers for insurance coverage and Kevin presented their
recommendations that will go to Council next Tuesday October 13thwith regards to approving the
contracts for next year. Current renewal or health insurance came in at over 85.5%. He explained that a
rise in healthcare claims have risen to $3.35 million vs. $1.2 million over the prior year. That cost is
equated to about 7% of our benefit population, attributed to several large claims. Kevin explained that
in continuing with Council’s feedback over the past years, health coverage has been changed to include
a larger contribution by the employees in the areas of co-insurance and deductibles. Employee
contribution was also increased in the area of office co-pays to reduce the rates to a more manageable
percentage increase.
To ensure the City remains competitive with its benefits, City contributions were also looked at and
recommendations for increases and/or continuation/elimination of supplements/contributions are being
made in the following areas: Dependent/family supplement; opt out supplement; HAS contribution.
Council action will be required to authorize City supplements and/or incentives and to authorize the city
to enter into benefits contracts. The budget was presented with at 15% increase in benefits.
Members Present: Keith Brainard, Chair, Patty Eason, Dale Ross
Members Absent: None
Staff Present: Micki Rundell, Chief Financial Officer, Paul Brandenburg, City Manager, Laurie
Brewer, Assistant Director of Finance and Administration, Kevin Russell, Mike Stasny, Chris
Foster, Jennifer Bills,
L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2009\10.5.09\10.05.09 Minutes.doc
Staff has worked to come up with a recommendation that stays within the increases allowed for in the
budget. The City will use the previously allocated money that was going to be contributed to the
employees’ HSA account to help “buy-down” and decrease premium costs, and educate employees on
how they can contribute to their HSA and build up that account by using their longevity pay, etc. Staff
recommendation will be to go with Texas Municipal League (TML) as the City health insurance
provider.
There was discussion and explanation of the option of “opting out” of City insurance coverage and the
effects it would have.
2. Review of RFP for 457 providers.
Kevin explained that the City provides access to a 457b plan to its employees. Currently, ICMA-RC is
the only provider available to employees. Although this is a program that the City offers to its
employees and there are no City funds involved, no requirement that proposals or bids be requested
when adding providers, the City will be going out for proposal to secure the best services for its
employees. Kevin explained that this is a pass through program; there is no cost to the city.
It was discussed and decided that it should be an RFQ instead of RFP.
Keith views this initial process as a guide. He would like to have interviews with more qualified
people and allow them give demos and explain what they have to offer and to see if they can
beat the current provider, and to include the current provider. He would like to involve the
Employee Benefits Committee in the selection. Kevin asked Keith to send a list of providers.
3. Meeting adjourned at 2:25 p.m.