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Minutes 12-10-12 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, DECEMBER 10, 2012, @ 6:00 P.M., IN THE BOYNTON BEACH CITY LIBRARY, ROOM "A ", 208 S. SEACREST BLVD., BOYNTON BEACH, FLORIDA PRESENT: Don Scantlan, Chair Tim Howard, Finance Director Jeffrey Grady Steven Grant Terry Lonergan John Sparrell 1. Call to Order — Don Scantlan, Committee Chair • Should any members not be able to make the meeting; contact Tim Howard (HowardTAbbfl.us) or (561) 742 -6311 by 3 pm Monday as the meeting may be cancelled for lack of a quorum. Donald Scantlan, Chair, called the meeting to order at 6:00 p.m. Roll was called and five members were present. 2. Approval of November 5, 2012 Minutes Chair Scantlan advised he had changes to the minutes. On page 1, paragraph 2, last sentence states "the meeting was to kick off a new year ". He wished to add new budget year. Also on page 2, fifth paragraph it reads "Mr. Sparrell remarked the City does not run on property taxes ". Chair wished to add alone, at the end of the sentence. Minutes Ms. Lonergan moved to approve the minutes as amended. Mr. Grant seconded the motion that unanimously passed. 3. Approval of Agenda Chair Scantlan wished to add he would be making an announcement and wanted the meeting to be held in context to what will be announced. Ms. Lonergan moved to approve the agenda as amended. Mr. Grant seconded the motion. The motion passed unanimously. 4. Announcement Chair Scantlan announced that he applied for the vacant City Commissioner seat. He wanted the Committee members to know in case any member would think his decisions would be shaped in any way. There would be a special Commission meeting called to Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 10, 2012 declare the vacant Commission seat. According to the City Charter, the Commission had two meetings to fill a vacancy or call a special election. Chair Scantlan further advised if he was appointed to the Commission, he could not serve on the Committee. He suggested thought should be given to a Vice Chair and would find out if that was a position appointed by the Commission. 5. Discuss Commission Direction from November 7, 2012 Commission Meeting Chair Scantlan explained how the budget recommendations were handled in the past. This year the Commission had asked that the Committee specifically look at four of the items. The four items are: - Make or Buy Other City Services — Item 5 - Property /Casualty Insurance Costs — Item 7 - Pension Plans and Intercity Comparison of Benefits — Item 9 - Development Fees and Comparison to Other Cities — Item 12 Due to the possible appointment, Chair Scantlan would not select a topic to research at this time. 6. Review and Discuss Committee Member Study Topics and Potential Assignments for FY 2013 -2014 Mr. Grant offered to complete item 12, Development Fees and Comparison to Other Cities. Mr. Grady offered to undertake Item 5, Make or Buy Other City Services. Chair Scantlan provided a brief history of the items to the new members. He mentioned one of the big issues was whether to contract out Solid Waste collection. After a brief discussion, Ms. Lonergan took Item 12 and Mr. Grant selected Item 9, Pension Plans and Intercity Comparison to Benefits. Chair Scantlan commented that three or four of the major union contracts with the City were in negotiation. He suggested Mr. Grant contact the City Manager, Lori LaVerriere, as she may have comparative information on this topic. Mr. Sparrell would perform the comparison study on Item 7, Property /Casualty Insurance Costs by contacting other cities and researching information on his own. Chair Scantlan inquired if there were any other topics a member was interested in pursuing. Ms. Lonergan suggested the idea of the onsite health clinic. Mr. Grant stated he was at the Commission meeting that discussed the cost study that was done. It would help reduce costs because instead of the employees going to their own doctors and losing work time, the clinic would be available without down time. There would be an impact on the City's health insurance rates and time off. Mr. Howard commented that part of the dynamics of health insurance premiums are the total amount of claims that an entity has each year, which was a predictor and used to 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 10, 2012 set the premiums for the following year. The City was running between 97% and 99% of the premium costs going to claims. The employee pays their co -pay and the plan pays the difference between the doctor's visit, plus part of the prescription cost. Studies had shown that an on -site clinic decreases the time an employee was away from their job and eliminates the doctor visit claim. It would not cost the employees anything. There would be limited distribution of certain types of medications, alleviating payments to the pharmacy. A company with a doctor, nurse, physician assistant could be contracted to man the clinic, which are all governed by the HEPA HIPPA rules. The employees would go there for incidental things. In addition, incidentals do not get reported in the claims stream so the costs are less. Eventually, there would be availability for the spouse and children to use the clinic. Family coverage currently was very expensive. Preliminary numbers and data from Delray Beach that had a clinic were gathered. Ms. Lonergan wanted clarification on what the City was looking for as far as research from the Committee. Chair Scantlan advised to use it as another data point. Research that had been started could be reviewed and pulled together and also look at other sources not yet researched. Mr. Howard added that research could also be done by contacting other cities that had not been contacted to inquire as to their experience, as well as in other counties, the State of Florida and nationally. Ms. Lonergan advised she would undertake this topic. In addition, Mr. Grady would take #4, City Services other than Solid Waste and Mr. Grant would take #14, Revenues generated by other Cities. Chair Scantlan advised he would write the Executive Summary on all the recommendations, if he was still Chair of the Board. 7. Discussion of City Services Survey Chair Scantlan explained how the City Services Survey was done the prior year. The biggest problem with the survey was getting the community to participate because there was an issue with distribution. There were different suggestions on how to get citizens to participate. For example, the City could possibly award a gift card in a drawing or have dinner with the Mayor. There was no budget for the survey. Survey Monkey was utilized for the survey. Notices were distributed around the City and posted on the City website to inform the citizens that the survey was available. There was discussion on which questions to keep for this year's survey and which to amend. It was suggested to focus on the four major topics assigned to the Board to research. Other cities have transferred police protection to the Sheriff's Department. It was suggested to query the public on their opinion of this idea. Other questions were proposed and some were re- evaluated as to their value. There were some questions that were viewed as duplications and possibly rewording the question could combine two questions into one. Chair Scantlan advised he included an open -ended question last year to determine what type of input the citizens were giving on how the City could improve. He suggested removing this question. However, Mr. Grant suggested keeping an open -ended question but rewording it to be more specific on suggestions for 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 10, 2012 the Financial Advisory Committee to create ideas for the City to become more fiscally responsible and run more effectively and efficiently. The remaining questions were explained and the order was changed to reflect importance. In prior years, the survey was announced on the City of Boynton Beach web page, the City of Boynton Beach Police web page, by way of a marquee, distribution in City Hall and other facilities, and other department's Facebook pages. 8. Other Business Mr. Scantlan mentioned that in case this was his last meeting as Chair, he would like someone to consider picking up the torch. He also commented that the Financial Advisory Committee was a Board that does not allow a member to be a an alternate member of another Board. The dates of upcoming Board meetings were discussed. Bi- weekly meetings would begin after the new year. Two members announced they would be unable to attend the February 11, 2013 meeting. Chair Scantlan suggested that thought should be given to cancelling that meeting as there may not be a quorum. 9. Adjournment Motion Mr. Grant moved to adjourn the meeting. The motion was seconded by Mr. Grady and unanimously passed. The meeting adjourned at 6:59 p.m. &2 /7 ( CR Ellie Caruso Recording Secretary 4