Admin Committee Minutes 1996 03-26-96 Special Meeting UNITED CITY OF THE VILLAGE OF YORKVILLE
SPECIAL ADMINISTRATION COMMITTEE
TUESDAY, MARCH 26, 1996
The meeting was called to order by Chairman Art Prochaska at 6:35 P.M. in the City
Conference Room.
Members present were: Art Prochaska
Jeff Spang
Kathy Jones
Jerry Lynch
Tom Sowinski
Richard Scheffrahn
Anton Graff
Bob Johnson
Rich Hart
HEALTH INSURANCE
Blue Cross / Blue Shield
Tom Viemont of Country Companies presented an employee health insurance plan
to the Committee. He compared the benefits to the existing insurance plan. There was
discussion concerning the omission of Copley Hospital as a provider, pre existing medical
conditions and new hires. The premiums for 29 employees were $7,535.57 per month and
$90,426.84 annually. Mr. Viemont was asked to find out why Copley Hospital is omitted
from coverage. He estimated it would take 30 days to process the policy.
Centra Benefits
Butch Konicek of Caywood & Associates, Inc., of Plano, presented group health
insurance coverage form Central Benefits (formally Blue Cross / Blue Shield of Ohio).
There was detailed comparison with the current EPIC policy. A network plan, dental,
chiropractic coverage and life insurance were included with different options highlighted.
The monthly premium for 29 employees is $9,543.87 and the annual $114,526.44. The
rates presented reflect the known pre existing health conditions within the group. There
were questions concerning newly hired employee's eligibility for coverage. Mr. Konicek
thought it would take about 2 1/2 weeks for the applications to be processed.
Administration Committee 3/26/96
Pekin Life Insurance Comp�n
Jack Magnuson, of the Zeiter- Dickson Insurance Company, inquired what criteria
the committee was using to make their decision of what insurance plan to go with. The
committee expressed that cost, comparable coverage and viability were the issues. Mr.
Magnuson, the City's current agent, explained the difficultly there is in finding a company
to write the policy for the city. The city's current health provider, EPIC, has not been
providing satisfactory service and intends to increase the premium renewal by 42 %. Mr.
Magnuson presented the Pekin Life Insurance Company's PPO Hospital Only Plan. He
said that the services and the cost are comparable. They have a $500 deductible and a
90/10 pay basis within the network including a wellness benefit and prescription drug card.
The proposed monthly premium is $8,857.25 for 29 people. There was discussion of the
rate difference with 31 employees and the coverage for new employees. Mr. Magnuson
said that it would take time to process the application and that any money sent with the
application would be refunded if the City decided to withdraw. Mr. Graff asked for a list
of groups using Pekin now. Mr. Magnuson briefly presented a health plan proposal from
Blue Cross / Blue Shield of Illinois. Mayo and Dreyer Clinics are included in this plan, but
Copley Hospital is not. Various materials were distributed and kept for the employees to
review.
The Committee discussed the various insurance presentations. Employee
contributions were discussed as the various figures were evaluated. It was the consensus
that there would be two applications made. One will be made to Pekin Insurance through
Jack Magnuson and one to Blue Cross / Blue Shield with Tom Viemont. The final
premium quotes will determine if the employees will have to financially contribute to the
insurance cost. There is enough money available to make application to the two
companies. One fee will be refunded when the city accepts a proposal. The committee is
recommending the City Council release funds for the application to the Pekin Insurance
Company and Blue Cross / Blue Shield for one month's payment.
ADDITIONAL BU SINE SS
Recrea Budget
Mr. Prochaska reviewed the 2 year (95- 96/96 -97) budget of the Recreation
Department. Different funds and salaries were explained. The Lions Club / YMCA Pool
expense of $15,000 was discussed. Some of the budgeted improvements are payable from
Land Cash which would alter the budget. It was expressed that the funds need to be
reconciled.
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Administration Committee 3/26/96
Co nsolidation of Funds
Richard Scheffrahn reviewed the figures he will be presenting to Pandolfi,
Topolski, Weiss & Co., Ltd. showing that some fund categories are currently not in use.
He is recommending that some of these funds be consolidated. There was discussion of
"pass through" accounts and the General Fund. The procedures of governmental
accounting was explained. Mr. Scheffrahn said he wanted to consolidate funds the city is
no longer using and have them make sense and try to pay back some of the inter fund
borrowing.
ADJOURNMENT
The meeting adjourned at 9:45 P.M.,
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Submitted by,
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Sheryl Washburn
Recording Secretary
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