ccreg 08-22-2000
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REGULAR SESSION OF THE SCHERTZ CITY COUNCIL
AUGUST 22, 2000
The Schertz City Council convened in Regular Session at 5:00 p.m. on Tuesday, August
22, 2000 in the Conference Room of the Municipal Complex, 1400 Schertz Parkway,
Schertz, Texas. The following members were present: Mayor Hal Baldwin, presiding;
Councilmembers Norma Head; Joe Potempa; Glyn D. Williams and Ken Greenwald.
Absent: Councilmember Reginna Agee. Staff present were Interim City Manager Steve
Simonson and City Secretary Norma Althouse.
#1 HEARING OF RESIDENTS
No one had signed up to speak.
#2 BID AWARD: Consider and take action awarding bid for Employee Benefit
Program.
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Mr. Simonson reported they received bids from Community First, Aetna and Pacifi~are.
Pacificare came in the lowest, but the City would prefer not to go with them because of
problems in the past regarding payment of claims. Community First increased by
approximately 31 % and it is felt the City cannot withstand another $65,000 over current
costs. Aetna came in at 2% over what was budgeted. If we go with Aetna, 85% of the
employees will not have to change doctors.
Council had received in their packets copies of a Municipal Survey, the Employee
Benefit Proposal Review, summaries of the bid sheets, and Benefits Summary charts.
Mr. Potempa, stating they need all data on bids, asked why they had not received it. Mr.
Simonson replied it was an oversight.
Mr. Simonson then mentioned that with Aetna the co-pay would go up, hospitalization
would be covered 100%, and the majority of employees would not have to change
doctors. Mr. Potempa stressed he has a real heartburn over the constant change. In the
past ten years, the City has had only one medical plan for two years. All the other years,
they have changed. Mark Marquez told Mr. Potempa they always ask for multi-year
contracts and are told by the companies they will look at the loss ratio first. Mr. Potempa
commented he has no problem with loss ratio, but wondered if the insurance broker (in
this case, Bob Feike) gets a commission for constant change.
Mayor Baldwin explained that if an insurance agent is your agent of record, no one else
could get a bid.. It's their law and that's the way they do it. Yes, the insurance agent gets
a small commission. Mr. Marquez informed Council the insurance agent saves him a ton
of time.
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Mr. Potempa then asked why go out for bids if Bob Feike is the only one who can get
one. Mr. Marquez replied they go out for bids to satisfY the legal requirements of an
invitation to bid.
Norma Head remarked that after working in school districts for thirty years, she knows
the dollar amount is the driver. Mayor Baldwin, saying he hopes Council is all working
off the same page, said the only way you can change the price is to reduce the benefits.
The City employees have a very generous benefit package.
Mr. Marquez noted that one of the concerns they always have is high dependent rates.
Mayor Baldwin pointed out Council needs to decide what kind of commitment they want
to make. Mr. Potempa felt they should take care of the City employees.
There was a brief discussion about differences in prices to other municipalities. Mr.
Marquez explained it depends on what options the other municipalities have chosen. Mr.
Potempa then asked if all benefits aren't in all packages and Mr. Marquez answered no.
Sometimes it's a tough choice.
Mayor Baldwin questioned what medically unwritten means and Mr. Marquez answered
it means they won't hold pre-existing conditions against you. Mr. Simonson added it
means they're not cutting offsomeone's benefits if they have a special medical situation.
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Mr. Simonson further stated they are obliged to inform the employees that the State
offers insurance for children of low-income families.
Both Mr. Simonson and Mr. Marquez felt it is best for the City to go with Aetna. It is a
national company and they have a list of their physicians on the web.
Mr. Williams inquired how many employees participate in dependent coverage. Mr.
Marquez estimated approximately 40%, plus it is pre-taxed money. Mr. Williams then
asked if the City offers an option to contribute to a medical fund (tax free) and was told
by Mr. Marquez they do not. Mayor Baldwin questioned if the City offers deferment of
money for childcare and was told they do not. Mr. Marquez pointed out that in the world
of insurance, the City is a small group.
Mr. Williams moved to award the bid for the Employee Benefit Program to Aetna. Mr.
Potempa seconded the motion, but stated in the future he would like to be provided all the
information. Council is put behind the power curve too many times.
The motion carried with the following votes:
AYES: Councilmembers Head, Potempa, Williams and Greenwald.
NAYS: None.
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Mrs. Head mentioned some kind of medical savings program and Mr. Marquez promised
to look into it.
Before adjournment, Mayor Baldwin brought up the death of Jack Stomackin and said he
had asked Mr. Simonson to check into the facts. According to what he heard, it took
thirty-five minutes for a back-up ambulance to arrive from Converse because they got
lost. Rumor has it that the dispatcher was told not to call Metro Ambulance. This is the
third incident and he had previously asked Mr. Sweatt to check into some things for him.
Mayor Baldwin went on to say SAFES is in worse shape than it was 25 years ago and
that's unacceptable. Something has to be done. Apparently they have lost their
volunteers.
Mr. Potempa asked why the EMS Director was not on top of this. We need a working
back-up system. Mrs. Head inquired if they have more people on the payroll than
respond and Mayor Baldwin answered no - this is all management stuff. The Mayor then
offered the suggestion of going out for bids for a back-up system. Council agreed. It was
also recommended they put SAFES under the Fire Department and get sound
management. Mr. Williams was curious if they're putting a dollar figure on peoples'
lives. Mr. Simonson indicated he would come back with answers.
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Mr. Williams wondered if there's a cause behind the volunteers quitting and Mayor
Baldwin replied they couldn't stand Kerry Sweatt. Mr. Williams then asked if we could
get them back and Mayor Baldwin answered probably not.
Mrs. Head inquired if the City has a mutual agreement with Converse and Mr. Simonson
replied they always have had. We should never have a problem with a back up. He
asked Council to give him some time to find the answers to their questions.
Mr. Simonson reminded Council they have two meetings next week. A Budget
Workshop is scheduled for 6:00 p.m. on the 29th and the usual workshop session is
scheduled for 7:00 p.m. on the 30th.
There being no further business to discuss, M. ?lor Balci in adjOur. ned the meeting at
6:46 p.m.
a~
Mayor, City of Schertz, Texas
ATTEST:
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7#~4JUL/ au~
City Secretary, City of Schertz
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