CITY COUNCIL MEETING

MINUTES
SPECIAL SESSION
224 S. Jefferson Street
Perry, Florida
May 29, 2003

MEMBERS PRESENT: Shirley Scott, Richard Frith and Doug Everett

MEMBERS ABSENT: William Alexander and Pam Feagle

STAFF PRESENT: Bill Brynes, Barney Johnson, Vern Clark, Sarah Drawdy and Annette Anderson

There were a number of employees present.

SUBJECT OF MEETING: CITY COUNCIL AND STAFF TO DISCUSS CITY EMPLOYEE

HEALTH INSURANCE.

Mr. Brynes and Mayor Frith said they had been talking with the carriers throughout the day regarding
the health insurance. Mr. Brynes said there had been about four possibilities and the plan with
CoreSource, which Doctors’ Memorial Hospital and the County are with, excludes retirees for
coverage. Mr. Brynes said another is a fully insured plan with premiums at $385.00 single and $1,047.
Mr. Brynes said the problem with this is a $1,000.00 deductible for single employee and a $3,000.00
deductible for family. Mr. Brynes said some local doctors and Tallahassee Memorial Hospital were not
in the plan. Mr. Brynes said what the City does have is a similar plan with Gallagher Benefit Services,
Inc. Mr. Brynes said there are approximately 2,100 employees (from several municipalities and other
entities) in the trust group. Mr. Brynes said Gallagher would purchase the re-insurance Wednesday and
cover the back claims, if there are any, but the City would not actually sign the contract until it is
known if the City can get into that trust group.

Councilmember Everett asked how this would affect employees going to the doctor the next day. Mr.
Brynes reviewed the benefits with Gallagher. Mr. Brynes said the benefit is there, with no co-pay but
there is no insurance benefit until the employee meets a $500.00 deductible. Mr. Brynes said the plan
with Gallagher & Associates has a 10/20/40 prescription card, 80/20 in network, 60/40 out-of-network,
$500.00 deductible and has the Beech Street network. Mr. Brynes said premiums would be $366.00
for single and $795.00 family. Mr. Brynes said this plan only covers the claims received for 12
months. Mr. Brynes said the City would still have to pick up the balance of these claims (re-
insurance). Mr. Brynes said the total cost of the plan with Gallagher would be $621,000. Mr. Brynes
said the next best plan would have cost $618,000 but did not offer benefits there were as good. Mr.
Brynes said the City would be making a two-year commitment with this plan.

Councilmember Scott commented that some Councilmembers had said the City would pay the current
rate (of premiums) for the employees until November and asked if the City was going to still do this.
Mayor Frith said he thought so. Councilmember Scott asked if the City would have to look at this
issue again in November. Mayor Frith said he didn’t so--that the few dollars more would be applied to
the employees rate. Councilmember Scott asked if the insurance rates would go up after November.
Mr. Brynes said yes, but only slightly.
Page 2, May 29, 2003, Council Minutes – Special Session

Mr. Brynes said, hopefully, the City would be able to get into the group plan where the single rate is
$315.00 and the family rate $760.00 compared to the old rate of $307.00 single and $836.00 family.

Director of Finance Sarah Drawdy asked about the deductible. Ms. Drawdy expressed that employees
might be faced with two deductibles because the insurance covers a calendar year. Ms. Drawdy said
with Meridian Benefit, Inc., she ended up having to pay two deductibles. Councilmember Everett
commented the insurance company could not legally charge two deductibles. Councilmember Everett
said it is his understanding the deductible would start (tomorrow) with this new carrier and there
wouldn’t be another deductible until next June.

Mayor Frith stated the Council had voted at the regular meeting May 27, 2003, that staff proceed with
the contract with Gallagher & Associates if it came through by this date and as it did, no further action
by the Council was required at this time.

Mayor Frith said the City Manager would prepare a letter to health providers explaining the City’s
health insurance problem and requesting their patience in claims being paid.

AGENDA ITEM (10)…ADJOURNMENT.

There being no further business to come before the City Council at this time, the meeting was
adjourned at approximately 5:25 p. m.

ATTEST:

_______________________________ _________________________________
William E. Brynes, City Manager Richard D. Frith, Mayor

Recorded in Official Minute Book:

___________________________ _________________________________
Annette Anderson, Secretary Date