Agenda Special 09-26-00 CITY COMMISSION
CITY OF DELRAY BEACH, FLORIDA
SPECIAL MEETING - SEPTEMBER 26, 2000 - 6:00 P.M.
COMMISSION CHAMBERS
The City will furnish appropriate auxiliary aids and services where necessary to afford an individual with
a disability an equal opportunity to participate in and enjoy the benefits of a service, program or acdvity
conducted bythe City. Contact Doug Randolph at 243-7127 (voice) or 243-7199 ClDD), 24 hours prior
to the program or activity in order for the City to reasonably accommodate your request. Adaptive
listening devices are available for meetings in the Commission Chambers.
(1)
SPECIAL MEETING AGENDA
ORDINANCE NO. 26-00 (SECOND READING/PUBLIC HEARING): An ordinance
amending Chapter 33, "Police and Fire Departments", Subheading "Pensiom", of the City Code
to comply with certain provisions of Chapter 99-1, Laws of Florida.
RESOLUTION NO. 72-00: A resolution expressing opposition to Senate Bill 1028 entitled
the "Citizens Access to Justice Act of 1999", and ILK 2372 entided the "Private Property Rights
Implementation Act of 2000" which are currently pending in the United States Senate Judiciary
Committee.
Commission comments.
Please be advised that if a person decides to appeal any decision made by the City Commission with
respect to any matter considered at this meeting, such person will need to ensure that a verbatim record
includes the testimony and evidence upon which the appeal is based. The City neither provides nor
prepares such record.
CITY OF DELRAY BEACH. FLORIDA - CITY COMMISSION
SPECIAL MEETING - SEPTEMBER 26. 2000 - 6:00 P.M.
COMMISSION CHAMBERS
AgeNDA ADD~NDi4A4
THE SPECIAL ~.TIN~' AGENDA IS AMENDED BY ADDING THE FOLLOWING
ITEM:
(3)
CITY ASSUMPTION OF INTERIM HEALTH PLAN BENEFIT CHANGES:
Consider approval of the City absorbing the costs of the changes m h/ealth ~i~surance benefits
from October 1, 2000 until the current health insurance contract expires on March 1, 2001.
The cost is estimated at approximately $100,000, with funding to be from Prior Year Surplus.
Addendum.September 26, 2000
DE[RAY BEACH
{lI-Anterica Cjt
19~3
CITY CLERK
AVENUE · DELRAY BEACHr FLORIDA 33444 · 407,'243 7000
EXECUTIVE SESSION O~V TIlE CITI/ COMMISSION
CITY OFDELP~ YB~A CH~ FLORIDA
An Executive Session of the City Com-tmssion of the City of Dekay Beach, Florida, will be held on
Tuesday, September 26. 2000, immediately following the commassion's Special Meeting scheduled
for 6:00 p.m. The Executive Session will be held m the City Manager's Conference Room at City
Hall, 100 N.W. 1" Avenue, Dekay Beach, Florida. The purpose of the Executive Session is to
discuss collective bargaining issues, pursuant to Florida Statutes 447.605.
Alison MacGregor Hart~ r
City Clerk
POSTED: SEPTEMBER 22, 2000
C: .... ' ..... THE EFFORT ALWAYS MATTERS
RESOLUTION NO. 72-00
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, EXPRESSING OPPOSITION
TO SENATE BILL 1028 ENTITLED THE "CITIZENS ACCESS
TO JUSTICE ACT OF 1999", AND H.R. 2372 ENTITLED THE
"PRIVATE PROPERTY RIGHTS IMPLEMENTATION ACT OF
2000" WHICH ARE CURRENTLY PENDING IN THE UNITED
STATES SENATE JUDICIARY COMMITTEE.
WHEREAS, S. 1028 has been proposed and is currently pending in the U.S.
Senate Judiciary Committee; and
WHEREAS, H.R. 2372 has been passed by the U.S. House of Representatives
and is also currently pending in the Senate Judiciary Committee; and
WHEREAS, S. 1028 and H.R. 2372 would allow litigants to circumvent state and
local governmental procedures and to bring property disputes regarding local issues into federal
court without the possibility of resolution at the local level; and
WHEREAS, S. 1028 and H.R. 2372 are contrary to the U.S. Supreme Court's
decision in City of Monterey v. Del Monte Dunes, 119 S.Ct. 1624 (1999); and
WHEREAS, the City Commission of the City of Delray Beach, Florida, opposes
S. 1028 and H.R. 2372 as being adverse to the interests of the City and to the interests of
residents of the City who are entitled to a local determination of land use issues.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City Commission of the City of Delray Beach, Florida,
hereby states its opposition to S. 1028 and H.R. 2372 and urges its Congressional representatives
to vote against the measure if it reaches a vote, unless it is amended to eliminate those provisions
applicable to state and local governments.
PASSED AND ADOPTED in special session on this the 26th day of September,
2000.
ATTEST:
City Clerk
MAYOR
To~
From:
Date:
David T. Harden, City Manager
Joseph M. ~ance Director
September 25, 2000
Subject: City Assumption of Interim Health Plan Benefit Changes
The Florida League of Cities has recently notified the City that they will be revising our
group health plan benefits effective October 1, 2000. This is being done in the middle of
a contract year since our contract does not expire until February 27, 2001. Our premium
rates however will not be changed. As you know, the problem we have is that (1) we
have several union contracts in place that would not recognize any benefit changes at this
time and (2) we have participants with scheduled office appointments and surgical
procedures that were not anticipating these additional costs.
Upon receiving this notification by the insurance carrier (unsigned), we attempted to
secure some form of formal notification. All we received was a verbal confirmation of
the notice at this point in time.
Secondly, we contacted the Florida League of Cities to question whether they could hold
off any changes to the City of Delray Beach since our contract expires February 27, 2001
and many of their clients had October 1, 2000 expirations. We were verbally informed
that these benefit changes were effective October 1, 2000 for all of their customers.
Unfortunately, the insurance carrier has little control over doctor, hospital and
pharmaceutical networks and they are incurring significant losses in claims activity at this
time. The only relief they could give us is that our premium rates would not change since
we have a fixed 2-year rate guarantee.
We discussed these proposed changes with our internal labor-management Insurance
Committee and the general consensus of the committee members was to have the City
Attorney address whether some form of legal action could be taken against the carrier. In
addition, they recommended an immediate drafting of an RFP so that we could bid out
our health plan sometime in November-December.
Next we contacted our City Attorney and our labor attorneys to determine our position
regarding the health plan changes being imposed in the middle of a contract year and the
interpretation of our labor contract language.
It appeared to be general consensus of the City representatives that the employees,
dependents and retirees would probably incur approximately $100,000 in added benefit
costs prior to the end of our current contract (October 2000-March 2001).
,5'P. S.
At a conference call in the City Attorney's office on September 20th, it was concluded
that the City would not change the existing labor contracts at this time and that the City
would absorb the costs of the change in benefits until March 1, 2001 when a new health
plan would take effect.
We would therefore recommend that the City Commission addresses this issue and
approve the budget adjustment for $100,000 to be added to our health plan projected
costs. The funds would come from Prior Year Reserves.
Please find attached several documents and schedules that further explain the changes in
benefits that are being imposed October 1~t.
Cc~
Frank Babin, Risk Manager
Susan Ruby, City Attorney
AGENDA ITEM NUMBER:
Request to be placed on:
Consent Agenda
When: ~
Description of agenda item:
AGENDA REQUEST
Date: 09-25-00
X Special Agenda
Workshop Agenda
Approving the City to absorb the costs of the changes in health
insurance benefits from October 1, 2000 until the current health insurance contract expires on
March 1, 2001. Cost is estimated to be approximately $100,000. Approval is also needed to fund
this cost from Prior Year Surplus.
ORDINANCE/RESOLUTION REQUIRED:
Draft of Resolution Attached:
YES NO X
YES NO
Recommendation: Approval is recommended by the Finance Director and Risk Manager
Department Head Signature:~ . ~--~
Determination of Consistency with hensive Plan: N/A
City Attorney Review/Recommendation (if applicable): N/A
Budget Director Review
(required on all items involving expenditure of funds):
Funding available: Yes
Funding alternatives (if applicable):
No
Account Number:
Account Description:
Account Balance:
City Manager Review:
Approved for Agenda: (~ ~ No
Hold Until:
Agenda Coordinator Review:
Received:
Action: Approved: Disapproved:
P.O. #
1 8 2000
ISK MANA MENT
FLORmA LeAGUe OV
~'~ PHBLIC RISK SERVICES
Administration/
Marketing
Risk Control
Underwriting
Property & Casualty
Health
Post Office Box 530065
135 East Colonial Drive
Orlando, FL 32853-0065
800-445-6248
407-428-9142
Suncom 344-0725
Health Claims
Post Office Box 538140
Orlando, FL 32853-8140
800-756-3042
407-245-0725
Suncom 344-0725
Workers'
Compensation Claims
Post Office Box 538135
Orlando, FL 32853-8135
800-756-3042
407-245-0725
Suncom 344-0725
Property & Liability
Claims & Litigatior~
Post Office Box 5381
Orlando, FL 32853-813~
800-756-3042~-
407-245-0725
Suncom 344-0725
Fax Numbers
forall Departments
407-425-9378
800-707-7656
TO:
Members of the Florida Municipal Insurance Trust
FROM: The Administrator, Florida League of Cities, Inc.
FY 2000-2001 Medical, Dental, Life, Vision and Short-Term
Disability Premium Rates
DATE: August 11, 2000
Attached are the 2000-2001 Fund Year renewal rates. Please take a moment to
review the pricing, as it may include a sizeable increase from your current
rates. There are two main ingredients in your renewal pricing. First, after
several years of stagnant pricing, the healthcare industry is beginning to see
double-digit increases on costs from pharmaceutical firms, hospitals, and
physician groups. These costs are factored into your renewal. Secondly, your
own claims activity is also taken into account in this renewal. If your claims
were less than the premiums you paid in the prior year, then your increase will
be minimal. If however, your claims greatly exceeded the amount of premium
paid last year, then your increase may be significant. As we manage your
health insurance program w~. take advantage of every oppo;tunity to contain
costs, while still delivering on our promise to provide superior service to your
employees.
To assist in controlling health insurance costs, the Florida Municipal Insurance
y~U~ea t~t benefi~
our current plan as well as other plans that ar-Fe-availa!~
the associated costs. Please review these plans, as these changes wil~-becohe
effective October 1, 2000. One of the significant changes is in the prescrij2,l'lon
drug card program, which is administered through Express Scripts I~
'"'------..~rder ~;o help control the costs of this plan, a fo~ntroduced with
a 3-tier Co-pay. A tbrmmary listing is attache& The Mail-Order program will
now be offered through Express Scripts also; mailer envelopes will be supplied
prior to October 1.
Your decision to place your insurance with our 2~rust has allowed you to enjoy
economic benefits and pricing below the standarfl markets. No one looks
forward to rate increases and as a not-for-profit organization; the Trust only
approves an increase where it is financially prudent to do so. As always, we are
prepared to answer any questions you may have on your insurance program.
Please feel free to contact Chuck Wilde at the League Orlando office at (407)
425-9142 or (800) 445-6248.
Florida Municipal Insurance Trust
P.O.S. Gold Plan
Florida Municipal Insurance Trust
Major Plan Benefit In Network Out of Network
Calendar year Deductible:
Individual 0 $300
Family 0 $900
Maximum Out of Pocket:
Individual $1,000 $2,000
Family $2,000 $4,000
Lifetime Maximum
Unlimited $1,000,000
· Inpatient
Services
· Outpatient
Services
· Emergency Room
Services
· Preventative Care
· Routine Services
· Well Child Care
Specialty Care
· OB/GYN Care
· Allergy Injections
· Surgical Expense
· Maternity Care
Hospital Services
$100.00 Co-Pay, then 90%
of covered expenses
90% of covered expenses
$100.00 Co-Pay, then 100%
of covered expenses
Physician Services
$20.00 Co-Pay
$20.00 Co-Pay
$20.00 Co-Pay
$20.00 Co-Pay
$20.00 Co-Pay
$20.00 Co-Pay
90%
$20.00 Co-Pay,
1~t Visit, then 100%
$500.00 Deductible,
then 70% of covered
expenses
70% of covered expenses
after deductible
$I00.00 Co-Pay, then 100%
of covered expenses
Not Covered
70% of reasonable charges
70% of reasonable charges
70% of reasonable charges
70% of reasonable charges
70% of reasonable charges
70% of reasonable charges
70% of reasonable charges
Rev. 10/00
Florida Municipal Insurance Trust
Other Health Care Services In Network
Out of Network
Prescription Drugs
(Express Scripts)
Mental & Nervous Disorder
· Inpatient Services
(30 days per calendar year maximum)
· Outpatient Services
(20 visits per year limiO
$10.00 Generic
$20.00 Preferred Brand
$35.00 Non Preferred Brand
Wholesale Price, less 10%,
less In Network Co-Pay
$100.00 Co-Pay,
then 90%
$20.00 Co-Pay,
then 100%
$500.00 Deductible, then
70% of covered charges
70% of covered charges
$50.00 per visit maximum
· Alcohol and Drug Dependency
· Individual Visit
$4,000 lifetime maximum
· Hospice Care
(6 month maximum care)
$6,000 lifetime maximum
· Home Health Care
$1,000 calendar year maximum
· PhysicaITherapy
$2,000 calendar year maximum
· Skilled Nursing Facility
(75 days per year maximum)
$10,000 lifetime maximum
· Chiropractic Services
(26 visits per calendar year)
· Routine X-Rays, Lab Tests,
Diagnostic Services
$20.00 Co-Pay
90%
90%
90%
90%
$20.00 per visit
90%
70%ofcovered charges
70%ofcovered charges
70% of covered charges
70% of covered charges
70% of covered charges
70% of covered charges
$40.00 per visit maximum
70% of covered charges
· :o All surgical procedures must be pre-certified.
o:. All non-emergency hospital stays must be pre-cerUfied.
· ;. All Out of Network Benefits are covered at 70% of reasonable and customary charges, after the calendar year deductible has been met.
· :. All deductibles do not apply toward the annual maximum out-of-pocket expenses.
· :. All In Network Co-Pays apply toward the annual maximum out-of-pocket expenses.
· .'.The hospital deductible for Out of Network confinement due to an emergency does not apply.
[This Is intended as a Summary of Benefits and does not include all of the benefits, #mite tions,
and exclusions of the plan. Complete terms of the plan are contained in the Master Plan of Benefits.]
Rev. 10/00