03-01-11 Public Safety and Human Resources CommitteeMinutes
Public Safety and Human Resources Committee Meeting
March 1, 2011
Elected Officials Present: Council Member D. J. Wilson
Council Member Diane Buckshnis
Staff Present: Police Chief Al Compaan
ACOP Gerry Gannon
Human Resources Director Debi Humann
Public Present: Reverend Jean Kim
Judge John Rutter (ret.)
Jack Loos
The meeting was called to order at 5:32 p.m.
1. Discussion of Compensation Consultant
Action: None. Discussion of this item was deferred until the April 5, 2011 Public
Safety and Human Resources Committee Meeting.
2. Discussion of new Council staff position related to
budget/financials/insurance.
Action: None. Discussion of this item was deferred until the April 5, 2011 Public
Safety and Human Resources Committee Meeting.
3. Camping Ordinance
Council Member Wilson asked ACOP Gannon to review the history of the
camping ordinance that was being presented. ACOP Gannon discussed the
history of the incident that brought the draft of this ordinance before the Public
Safety Committee. ACOP Gannon stated that the proposed ordinance is based
on ordinances currently in place in the cities of Everett and Lynnwood. He
explained that the ordinance would provide a tool for the officers to contact
people causing a neighborhood nuisance by camping/living out their car.
Several of the guests spoke on behalf of the people living in their cars. They
discussed public- private cooperation in assisting the homeless. Discussed were
the different models currently in use in other jurisdictions - the self managed
model and a tent city model. Also mentioned was the safe parking program
currently in use in Eugene, Oregon. In that model, when a complaint is received
about a person camping in their car, a person from St. Vincent de Paul is
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March 1, 2011
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dispatched to assist the persons in the car and to discuss options with them.
They are then matched to parking sites, which are operated under strict rules.
During further discussion the audience members talked about local churches
being used to provide parking, sanitation, and garbage services for people living
in their cars if police contact them. As part of this cooperative partnership,
security for the parking lots would fall on the Police Department. At a minimum
the security is for an officer to drive through the lot a couple of times during a
shift.
For the next committee meeting Council Member Wilson asked the audience to
bring back ideas to continue the conversation on the best way to assist people
living out of their cars.
Action: Hold for further discussion at the April 5, 2011 Public Safety and Human
Resources meeting.
4. Discussion on review of medical benefits
Human Resources Director Debi Humann handed out the following materials to
Councilperson D.J. Wilson and Councilperson Diane Buckshnis:
1. Memorandum to City Council from HR Director Debi Humann dated
December 16, 2010;
2. Copy of the final report from Wells Fargo regarding health insurance.
Ms. Humann explained that the memorandum detailed the work of the Health
Benefits Committee (HBC) as well as the final recommendation that was
presented to City Council in December. Also, she explained that the materials
from Wells Fargo included their final report/recommendation after going to
market on the City's behalf for new health insurance options.
Jack Loos, a volunteer member of the Health Benefits Committee, was present at
the meeting. Councilperson Wilson requested that Mr. Loos speak to the
Committee providing an overview of the market.
Mr. Loos stated that the HBC interviewed outside consultants that represented
fully funded and self -insured health plans. The HBC hired Wells Fargo to go to
market for the City to price alternative health insurance options to our current
provider, Association of Washington Cities (AWC). It was evident, and surprising
to Wells Fargo, that the market had been blocked by AWC and reasonable
quotes from the industry were not available. Wells Fargo, per Mr. Loos, did a
good job and looked at all options including self -funding (see materials provided).
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March 1, 2011
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Mr. Loos continued to state that moving from an AWC plan will be difficult due to
AWC's refusal to provide experience data. He also stated that municipalities are
held to a different standard from private corporations in regards to self-insurance
as they have to establish reserves in a set timeline which are more aggressive
than required of non -municipalities. Mr. Loos also had concerns about applying
with the State for self -funding and funding the reserves. Mr. Loos also spoke to
the difficulties of upcoming Health Care Reform and how that may change
essential benefits and lifetime maximums. The impacts are unknown at this time.
Councilperson Wilson asked Mr. Loos about funding; specifically, if Council were
to provide $1,000,000 to upfront a self -funded plan would it be viable. Mr. Loos
thought it might as long as the employee group stayed stable (no lay-offs) and
did not dip below approximately 200 employees.
Councilperson Buckshnis asked Mr. Loos if the current age of our employees
impacts our ability to self -insure. Mr. Loos stated that he didn't think it was an
issue; more of a problem if staff is reduced at a future date.
Councilmember Fraley-Monillas asked Mr. Loos how much it would cost to
administer a self -funded plan. Mr. Loos responded that it was a set fee per
employee. Councilperson Fraley-Monillas asked how the plan would be
administered. Mr. Loos responded through a third party administrator.
Mayor Cooper asked for the definition for "worst case scenario." Mr. Loos
responded that he didn't know if there was one and that the goal would be to
cover losses with adequate stop loss insurance. He stated that stop loss should
be at a breakeven point as it is difficult to lower once a plan is in place. Mr. Loos
agreed that large claims would certainly impact any self -funded plan.
The health consortium being offered to the market by ClearPoint was also
discussed. It was decided that the City should continue to watch the success (or
lack thereof) of the consortium in the future.
Councilperson Wilson requested that the PS/HR Committee meet again on April
5, at 5:30 p.m. to continue discussion of health insurance, along with the other
agenda items that were not discussed (compensation consultant and Council
financial analyst). He also requested that Mr. Loos attend the next meeting and
that the Committee "chart out where we are on self -funding" if we had the
$1,000,000 to use.
The meeting adjourned at approximately 6:58 p.m.
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March 1, 2011
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