HomeMy WebLinkAboutAgenda_GGAF_07.24.2019Notice of Meeting for the
General Gov ernment and F inance Adv isory B oard
of the City of Georgetown
July 24, 2019 at 4:30 P M
at 808 Martin Luther K ing Jr Street, Georgetown, T X 78626, Community Room
T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you
require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable
as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's
O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin
Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay
Texas at 711.
L egislativ e Regular Agenda
A C all to O rder
B R eview minutes from the June 26, 2019 G eneral G overnment and F inanc e Advisory Board Meeting -
Amy Mertink, Board Liaison
C C ons ideration and possible action to approve a purchas e with F iretrol P rotection S ystems to provide fire
sprinkler s ystem repair s ervic es through the T XMAS -17-03FAC 04 c ontract in an amount not to exc eed $
32,704.80 --Trish Long, F ac ilities S uperintendent, Eric Nuner, P arks & R ec reation As s is tant Director
D C ons ideration and possible action recommending approval to us e Vec tor C onc epts of Irving, Texas for
replac ement of a gym floor at the G eorgetown R ecreation C enter us ing Buyboard c ontract # 476-13 for
the amount of $114,881.66.--Tris h Long, F acilities S uperintendent, Eric Nuner, P arks & R ecreation
Assistant Direc tor
E Employee Benefits Update - Tadd P hillips, Human R es ourc es Direc tor
F C ons ideration and possible action to approve and recommend to C ounc il the Employee Benefits
C ommittee propos ed medic al and dental premiums for the 2020 plan year. -Tadd P hillips , Human
R esources Director
Adjournment
Adjourn meeting
Ce rtificate of Posting
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of
Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily
acc es s ible to the general public as required by law, on the _____ day of _________________, 2019, at
__________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said
meeting.
__________________________________
R obyn Dens more, C ity S ec retary
Page 1 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
C all to O rder
IT E M S UMMARY:
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
Amy Mertink, Board Liais on
Page 2 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
R eview minutes from the June 26, 2019 G eneral G overnment and F inance Advis ory Board Meeting - Amy
Mertink, Board Liais on
IT E M S UMMARY:
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
Amy Mertink, Board Liais on
AT TAC H ME N T S:
Description Type
June 2019 minutes Backup Material
Page 3 of 47
Minutes of Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
June 26, 2019
The General Government and Finance Advisory Board met on Wednesday, June 26, 2019 at 4:30 PM
in the Community Room at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas.
The City of Georgetown is committed to compliance with the Americans with Disabilities Act
(ADA). If you require assistance in participating at a public meeting due to a disability, as defined
under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon
request. Please contact the City Secretary’s Office, at least three (3) days prior to the scheduled meeting
date, at (512) 930-3652 or City Hall at 808 Martin Luther King Jr Street for additional information;
TTY users route through Relay Texas at 711.
Board Members Present: City Staff Present:
Tommy Gonzalez, Chair
Kevin Pitts
Chere’ Heintzmann, Secretary
Stu McLennan
David Morgan, City Manager
Leigh Wallace, Finance Director
Laurie Brewer, Assistant City Manager
Paul Diaz, Budget Manager
Clay Shell, Assistant Fire Chief
Chris Bryce, IT Director
Greg Berglund, Assistant IT Director
Mike Stasny, Technical Services Manager
Joe Sepulveda, GIS Supervisor
Rosemary Ledesma, Purchasing Manager
Amy Mertink, Admin Assistant
Others present:
Legislative Regular Agenda
Tommy Gonzalez called the meeting to order at 4:30 p.m.
A Review minutes from the May 29, 2019 General Government and Finance Advisory Board
Meeting - Amy Mertink, Board Liaison
No questions or comments regarding the minutes. Motion to approve the minutes by Kevin Pitts, 2nd
by Stu McLennan. Approved 4-0
B Discussion and possible action to recommend Council adopt changes to the Fiscal and
Budgetary Policy during the annual budget adoption process for Fiscal Year 2020 -- Leigh
Wallace, Finance Director
Leigh Wallace explained that the Fiscal and Budgetary policy is reviewed each year and brought to
GGAF and Council for approval. She reviewed the proposed changes and explained that some changes
are substantive and some changes are to clarify processes or add additional language about current
processes.
The board asked general clarifying questions on additional language being added and Leigh and David
Morgan clarified the wording used. Tommy Gonzalez asked if future updates to the policy could include
guidance for longer term contracts being reviewed separately. Leigh, David, and the board briefly
Page 4 of 47
discussed this. Stu McLennan asked about inventory moving to Workday and Leigh verified that
inventory will not be moved. He also asked about ransomware policies-Chris Bryce will look into this.
Motion to approve by Kevin Pitts, 2nd by Stu McLennan. Approved 4-0
C Consideration and possible approval of a contract with ESRI to provide geographic information
systems software to the City of Georgetown for a total of $150,000.00 over three years--Greg
Berglund, Assistant Director, Information Technology
Greg Berglund explained the need and use for this software and specified the many systems it currently
integrates with throughout the city. It is a 3 year renewal and the city has renewed several times already.
Tommy Gonzalez asked if there were options for longer renewals, Greg will ask.
Kevin Pitts motioned to approve, 2nd by Stu McLennan. Approved 4-0
D Consideration and possible action to approve the purchase of fire and rescue equipment from
Metro Fire Apparatus Specialist using the Buy Board Contract #524-17 at a total cost not to
exceed $90,000 for the fiscal year 2018-2019.--Clay Shell, Assistant Fire Chief
Assistant Chief Shell briefly described the need for this equipment and let the board know the specific
items being purchased. No questions or comments from the board.
Kevin Pitts motioned to approve, 2nd by Stu McLennan. Approved 4-0
E Discussion and possible recommendation to approve the purchase of a Dodge Ram 5500-Diesel
Wildland Interface Fire Engine from Chastang Chrysler Dodge RAM Jeep through the H-GAC
Contract FS12-17 for a cost not to exceed $242,042.00--John Sullivan, Fire Chief
This item was pulled from the agenda and will be presented at a future date.
F Discussion and possible recommendation to approve the purchase of firefighting equipment from
Siddons-Martin Emergency Group through the H-GAC Contract FS12-17 for a cost not to exceed
$17,813.25--Clay Shell, Assistant Fire Chief
This item was pulled from the agenda and will be presented at a future date.
Motion to adjourn by Kevin Pitts, 2nd by Stu McLennan. Meeting adjourned at 5:12pm.
__________________________________ ____________
Tommy Gonzalez Date
Board Chair
__________________________________ ____________
Chere’ Heintzman Date
Board Secretary
__________________________________ ____________
Amy Mertink Date
Board Liaison
Page 5 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
C onsideration and pos s ible ac tion to approve a purc hase with F iretrol P rotec tion S ys tems to provide fire
s prinkler sys tem repair services through the T XMAS -17-03FAC 04 contrac t in an amount not to exceed $
32,704.80 --Tris h Long, F acilities S uperintendent, Eric Nuner, P arks & R ecreation Assistant Direc tor
IT E M S UMMARY:
T his purchas e will be processed as a cooperative purc hase through the T XMAS -17-03FAC 04 contrac t.
T he approval of this purchas e will allow the C ity of G eorgetown, F ac ilities department to proceed with fire
s prinkler sys tem repairs needed for the R ec reation C enter. S prinkler heads in the pool area will be replac ed
due to corrosion. C orros ion on the sprinkler heads can lead to s ystem failure. F iretrol P rotec tion S ys tems
(F P S ) will perform the repairs in acc ordanc e with applic able c odes and regulations. T he T XMAS
cooperative program competitively bid this contrac t providing favorable pricing for C ity and public
government benefit.
In Dec ember 2018 the C ity awarded to F P S a contrac t for $24,490 to provide monitoring and annual life
s afety sys tem inspec tions to tes t fire alarm s ystems in various C ity fac ilities in acc ordanc e with National
and Local F ire C odes, standards and regulations . In addition, in March 2019 the C ity awarded to F P S a
contrac t for $22,331.47, for s everal inspec tion repairs. T hese previous purchas es were awarded under
approved cooperative contrac ts, and the total revis ed not to exc eed amount will be $ 79,526.27 for all
s ervic es to F P S .
Acc ording to Texas Local G overnment C ode 271.102 (c ), the C ity s atisfies any state laws requiring the
local government to s eek competitive bids for the purc hase of goods and services when purc hasing under
S ubc hapter F. C ooperative P urc hasing P rogram.
F IN AN C IAL IMPAC T:
F unding is allocated in F Y2018-19 in the F ac ilities Maintenanc e Internal S ervic e F und.
S UB MIT T E D B Y:
Tris h Long, F acilities S uperintendent, Eric Nuner, P arks & R ecreation Assistant Direc tor
AT TAC H ME N T S:
Description Type
Proposal Backup Material
Page 6 of 47
BILL TO:
Attention:
We are pleased to provide our proposal in the amount of plus tax to
Description QTY EACH TOTAL
292 112.00$ 32,704.00$
-$
32,704.00$
32,704.00$
Exclusions:
Unforeseen conditions within walls/floors/ceilings
Sheetrock, patchwork, painting
Fire Watch on inoperable systems
Shift work, work stoppages, overtime, or delays
Lift rental not included. If lift is needed cost will be $325.00 per day.
Any additions required by the AHJ
Sincerely,
Jamie Comstock TXMAS-17-03FAC04
jcomstock@firetrol.net
Accepted By:
Signature/Printed Name:
Title:
Date:P.O. #:
Labor to replace heads at TXMAS Blended Rate
CITY OF GEORGETOWN
512-687-0120 Fax
512-815-8097 Cell
Integrity of the existing system
Thank you for allowing us the opportunity to provide you with our services. Pricing below shall be good for 30
(thirty) days. Please feel free to contact me on my cell if you have any questions (512) 815-8097.
GRAND TOTAL EXCLUDING TAX:
PERMITTING AND DESIGN EXCLUDED
Georgetown, TX
Total quotation:
Replace (90) Correded sprinkler heads in pool area with (90) stainless steel sprinkler heads due to corrosion,
expedited materials with manufacturer, scaffolding, lift, viking vk339 sprinkler heads and misc materials included
32,704.00$
Keith Peterson
Rec Center
1003 N Austin Ave
Georgetown, TX 78626
July 8, 2019
JOB LOCATION:
4616 W. Howard Lane, Suite 700, Texas 78728 Phone:512-687-0115 Fax:512-687-0120 www.firetrol.net*
Fire Protection and Life Safety Specialist
ACR-2034B ECR-1600 SCR-0292Page 7 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
C onsideration and pos s ible ac tion rec ommending approval to use Vector C oncepts of Irving, Texas for
replacement of a gym floor at the G eorgetown R ec reation C enter using Buyboard contrac t # 476-13 for
the amount of $114,881.66.--Trish Long, F ac ilities S uperintendent, Eric Nuner, P arks & R ec reation
As s is tant Director
IT E M S UMMARY:
T his item is to replace the sec ondary gym floor at the R ecreation C enter. T his floor was part of the original
1994 R ec reation C enter and was not replac ed during the 2008 renovation and expans ion. Vec tor C onc epts
provided the C ity a proposal bas ed on a BuyBoard C ompetitive P urchas ing C ontrac t. T his propos al
inc ludes demolition of the exis ting wood floor and ins tallation of Teraflex s port flooring.
Taraflex is a pure vinyl, rolled, cus hioned bac ked s ports floor. T he material has a permanent, factory
applied, finish that never needs to be waxed or re-c oated res ulting in reduced maintenance cost and
interruptions to operation. T he us eful life of this product is 20+ years. Vec tor C onc epts has completed
numerous local installations to include the gymnasium floor at the P flugerville R ec reation C enter, the
aerobics room floor at the C has co YMC A, and the gymnas ium floor at S unfield S tation in Buda. Vector
C onc epts is a full s ervic e c ommercial flooring provider that has been in bus iness for 27 years.
S taff is rec ommending approval to use Vector C oncepts for replacement of the s econdary gymnasium
floor in the amount of $114,881.66.
F IN AN C IAL IMPAC T:
T he total amount of gymnas ium floor replac ement is budgeted in the 2019 F acilities Internal S ervic e F und.
S UB MIT T E D B Y:
Tris h Long, F acilities S uperintendent, Eric Nuner, P arks & R ecreation Assistant Direc tor.
AT TAC H ME N T S:
Description Type
Proposal Backup Material
Page 8 of 47
General Information / DescriptionQuantity
GEORGETOWN PARKS AND REC
1003 N AUSTIN AVENUE
GEORGETOWN, TX 78627
Acct # 1539
512 930-3595 Fax 512 930-3595
GEORGETOWN PARKS AND REC / ROBERT
GAYLOR
1003 N AUSTIN AVENUE
GEORGETOWN, TX 78627
Contact: ROBERT GAYLOR
3/5/2019
Chad Warthan
21119
For:Job Site:
Unit
Proposal #
Customer PO
Date
Sales Person1
Project Manager
Contract #
Proposal
DEMO WOOD INCLUDING ADHESIVE DEMO EXISTING WOOD FLOOR TO INCLUDE ADHESIVE REMOVAL6782SF
DUMPSTER1EA
GERFLOR TARAFLEX SPORT M+ W/DRY-TEX - MAPLE DESIGN 6381 GERFLOR TARAFLEX SPORT M + DTX7229.96 SF
GERFLOR GERPATCH - 10LB BAG FLOOR PREP - GYMNASIUM (200 SF PER BAG)36 EA
LABOR TO PAINT GAMELINE(S) - PER CUSTOMER LABOR TO PAINT GAMELINE(S) - PER CUSTOMER1EA
ARMSTRONG BASE - RUBBER - COVE - COIL - 4" X 1/8" X 120' - TBD STANDARD 4” RESILIENT WALL BASE360LF
FREIGHT1EA
OPP. #50801 - GEORGETOWN PARKS & REC - GYM RENOVATION
ADD $1,385.00 TO RE-STRIPE ELEVATED TRACK
EXCLUDES:
-MAJOR FLOOR PREP
Proposal # 21119 3/5/2019 2:41:16 PMQ2-12Page 1 Page 9 of 47
General Information / DescriptionQuantity
Continuation For: GEORGETOWN PARKS AND REC, Quote # 21119
Unit
1926.1153 RESPIRABLE CRYSTALLINE SILICA
OSHA COMPLIANCE FOR TABLE 1 ONLY
"NOTE" PROPOSAL IS FOR ONE COLOR INSTALLATION UNLESS NOTED
OTHERWISE
LEAD TIME:
*10-12 WEEKS FROM ORDER DATE UNLESS CURRENT STOCK IS
AVAILABLE (MATERIALS ARE CURRENTLY IN STOCK WITH 7-10 DAY LEAD TIME)
INCLUDED:
*2 YEAR LABOR WARRANTY
*2 YEAR INSTALLATION WARRANTY
*15 YEAR GERFLOR MANUFACTURER WARRANTY
*INSTALLATION OF MOISTURE KITS AS REQUIRED
*ONE BAG FLOOR PREP PER 500 SF OF FLOORING FOR
NORMAL FLOOR PREP (SAW CUTS, EXPANSION JOINTS, SMALL
HOLES & CRACK NOT FLOOR LEVELING)
TERMS:
*50% DEPOSIT TO ACCOMPANY ORDER
*BALANCE DUE UPON COMPLETION OF THE INSTALLATION
*ALL ORDERS ARE FINAL & NON-CANCELABLE
EXCLUSIONS:
*3RD PARTY MOISTURE TESTING REQUIREMENT
ALLOWANCE ADD $2500.00
*$2.50 SQFT FOR ISOLSPORT TO ADDRESS MOISTURE EMISSIONS
IF REQUIRED PER MOISTURE TEST RESULTS
*PROVIDE AND INSTALL OF VOLLEYBALL SLEEVES
JOBSITE CONDITION REQUIREMENTS:
*CONCRETE FIT FOR PURPOSE
*JOBSITE CONDITIONS REPORT (PROVIDED BY VECTOR CONCEPTS)
MUST BE FILLED OUT AND RETURNED PRIOR TO INSTALLATION OF
MOISTURE KITS.
*PERMANENT DOORS, WINDOWS, AND WALLS MUST BE COMPLETE
*75 DEGREES HVAC CLIMATE CONTROLLED CONDITIONS MUST BE
MAINTAINED FOR ONE WEEK PRIOR TO MOISTURE KITS BEING
INSTALLED, DURING INSTALLATION PROCESS, AND ONE WEEK
AFTER INSTALLATION IS COMPLETE .
*ALL OTHER TRADES WORK MUST BE COMPLETE INCLUDING ALL
OVERHEAD WORK (i.e. basketball goals, lighting, painting, etc....) PRIOR TO
FLOOR INSTALLATION
*SLAB FLATNESS OF 1/8" IN 10' IS REQUIRED
*NO TRAFFIC (FOOT, ROLLING, ETC) FOR 72 HRS AFTER
COMPLETION OF INSTALLATION
Buyer_______________________________________Date_____________Seller_______________________________________Date____________
$114,881.66
Deposit
Date Ck #
Total
Grand Total
Proposal # 21119 3/5/2019 2:41:16 PMQ2-12Page 2 Page 10 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
Employee Benefits Update - Tadd P hillips , Human R esources Director
IT E M S UMMARY:
Human R esources s taff will give an overview of the C ity’s employee benefit program. T his is not an ac tion
item.
F IN AN C IAL IMPAC T:
To be disc ussed in pres entation.
S UB MIT T E D B Y:
Tadd P hillips, Human R es ourc es Direc tor
AT TAC H ME N T S:
Description Type
Pres entation Backup Material
Page 11 of 47
FY2020 Annual Budget
GGAF
July 24, 2019
FY 2020 Budget
Employee
Benefits Update
Page 12 of 47
FY2020 Annual Budget
Benefits History
•Self-Insurance began January 1, 2014
•Plan year begins January 1, Fiscal year October 1
•United HealthCare Administrator since January 1,
2016, Renewed in 2019
–Significant reduction in stop-loss and administrative costs
–Employee experience has continued to be positive
•Expenses significantly under budget in Fiscal 14 & 15
–Right at budget in FY 16, FY 17, & FY 18
–Expected to be at budget for FY19
Page 13 of 47
FY2020 Annual Budget
Benefits History
•The largest and most volatile expense to the fund are medical
and pharmacy claims. Fluctuations occur both seasonally and
episodically. Reinsurance, conservative budgeting, and fund
reserves are essential to a healthy program.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Jan Feb Mar April May Jun July Aug Sept Oct Nov Dec
12 months Net Claims 2018
Page 14 of 47
FY2020 Annual Budget
Employee Benefits Program Goals
1.Maximize employee health
2.Assure competitive and current plan offerings and
design
3.Maintain program affordability for City and
employees
4.Facilitate employee plan navigation and
consumerism
5.Compliance and administration
•Staff is working tactical plan built from goals
Page 15 of 47
FY2020 Annual Budget
Self Insurance Fund Reserve
•Strong reserve policy and balance
Reserve
Fiscal Year As of September 30th, 2019
Beginning Balance $3,488,229
Revenues $8,617,739
Expenses $8,845,739
Ending Fund Balance $3,260,229
IBNR $650,000
10% of annual expense*$7,707,739
Premium Stabilization Reserve $1,532,000
10-20% of annual expenses*$1,541,546
Remaining Balance $1,078,229
*Annual expenses = claims, admin, and S/LPage 16 of 47
FY2020 Annual Budget
Benefits Update
•Contracts through 2021
–Dental with Ameritas
–Medical, Pharmacy, COBRA Administration, Retiree
Administration, Flexible Spending Account
Administration, Voluntary Vision, Stop Loss Insurance
with United Healthcare
–Voluntary Life and AD&D Insurance -MetLife
–Benefits Concierge Service -Compass
–Employee Assistance Program –Alliance WorkPartner
–Short Term Disability/Long Term Disability -Dearborn
Page 17 of 47
FY2020 Annual Budget
FY2020 Expenses
•2020 Medical/Dental
–Upward Trend
•Claims 9%,
•Stop/Loss 15%
•Administrative Fees -Flat
–Thorough analysis of rate tiers by Benefits
Consultant (Gallagher)
•Proposed 5% Increase through ER/EE premiums
Page 18 of 47
FY2020 Annual Budget
Fund Schedule FY2020
Thursday, July 18, 2019
FY2018 Actual
FY2019
Budget
FY2019
Projected
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Beginning Fund Balance 3,343,251 3,476,229 3,488,229 3,260,229 - 3,260,229
Revenues FY2018 Actual
FY2019
Budget
FY2019
Projection
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Dental Contributions 415,904 440,000 450,650 470,000 - 470,000
HDHP Contributions 2,843,930 2,950,000 2,950,000 3,256,796 - 3,256,796
Other 418,945 430,000 450,000 450,000 - 450,000
PPO Contributions 4,162,117 4,477,739 4,477,739 4,569,734 - 4,569,734
Stop Loss Reimbursement - 500,000 300,000 400,000 - 400,000
Grand Total 7,840,896 8,797,739 8,628,389 9,146,530 - 9,146,530
Expenses FY2018 Actual
FY2019
Budget
FY2019
Projection
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Dental Claims 428,913 480,000 480,000 494,400 494,400
Fees 348,068 413,000 233,000 220,260 220,260
H.S.A. Contributions 317,508 360,000 360,000 317,600 317,600
Medical Claims 5,745,698 6,777,739 6,777,739 7,400,000 7,400,000
Other 212,740 275,000 275,000 280,500 280,500
Stop Loss Fees 654,990 750,000 720,000 825,000 825,000
Grand Total 7,707,917 9,055,739 8,845,739 9,537,760 9,537,760
FY2018 Actual
FY2019
Budget
FY2019
Projected
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Ending Fund Balance 3,476,230 3,218,229 3,270,879 2,879,649 - 2,879,649
CAFR Adjustment 11,999 - - - - -
IBNR 631,140 650,000 650,000 650,000 - 650,000
Rate Stabilization 1,262,280 1,532,000 1,532,000 1,650,000 - 1,650,000
Available Fund Balance 1,594,809 1,036,229 1,088,879 579,649 - 579,649
2:57:34 PM 590 - Self Insurance
Page 19 of 47
FY2020 Annual Budget
Questions or Comments?
Page 20 of 47
FY2020 Annual Budget
Medical & Dental
Premium Increase
•GGAF
•July 24, 2019
Page 21 of 47
FY2020 Annual Budget
Fiscal and Budgetary Policy
•VI. C. 3
–Employee Premiums –Annual premiums will be recommended to City Council through
a collaborative process between the City’s Employee Benefit Committee and external
Health Benefits Consulting firm using historical data and other analytical analysis.
Page 22 of 47
FY2020 Annual Budget
Premiums
•Medical & Dental –Self Insured
•Recommending 5% increase for both employee and employer to mitigate rising
claims costs
•Employee Benefits Committee discussed options –given 5 options for medical and
3 options for dental
Page 23 of 47
FY2020 Annual Budget
Employee Benefits Committee
•Bert Witcher –Police
•Delta Jolly –Police Association
•Daniel Bilbrey –Fire
•Denny Herrin –Fleet
•Jamie Beran –Parks
•Sally Bernier –Library
•Mike Stasny –GUS
•Paul Diaz/Erica Weitman –Finance
•Chris Foster –GUS
Page 24 of 47
FY2020 Annual Budget
Medical Premium Increase
•Employee Benefit Committee
Recommended Model
•Chosen out of 5 models by the employee benefits committee
5% increase on employee side is roughly $68,500 –proposed model would bring in $68,425.80
Plan Current Monthly
Premium
Proposed Monthly
Premium ~% Increase Annual Difference
HSA –E $13.00 $13.65 5%$7.80
HSA –EC $73.00 $76.65 5%$43.80
HSA –ES $290.00 $304.50 5%$174.00
HSA –EF $290.00 $304.50 5%$174.00
PPO –E $79.00 $82.95 5%$47.40
PPO –EC $144.00 $151.20 5%$86.40
PPO –ES $577.00 $605.85 5%$346.20
PPO -EF $577.00 $605.85 5%$346.20
Page 25 of 47
FY2020 Annual Budget
Dental Premium Increase
•Recommended Model
–Chosen out of 3 models by the employee benefits committee
5% increase on employee side is roughly $7,500 –proposed model would bring in $7,503.60
Plan Current Monthly
Premium
Proposed
Monthly
Premium
% Increase Annual
Difference
EE $2.00 $2.10 5%$1.20
EC $17.00 $17.85 5%$10.20
ES $20.00 $21.00 5%$12.00
EF $41.00 $43.05 5%$24.60
Page 26 of 47
FY2020 Annual Budget
•Consideration and possible action to approve and
recommend to Council the Employee Benefits Committee
proposed medical and dental premiums for the 2020 plan
year
•Staff recommends GGAF approval of the following:
–Proposed premium model for dental and for medical
GGAF Actions
Page 27 of 47
FY2020 Annual Budget
Questions or Comments?
Page 28 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
C onsideration and pos s ible ac tion to approve and rec ommend to C ouncil the Employee Benefits
C ommittee proposed medical and dental premiums for the 2020 plan year. -Tadd P hillips, Human
R es ourc es Direc tor
IT E M S UMMARY:
P er F isc al and Budgetary P olic y annual premiums will be rec ommended to C ity C ounc il through a
collaborative process between the C ity’s Employee Benefit C ommittee and external Health Benefits
C onsulting firm us ing his toric al data and other analys is . Monthly claims data continue to trac k right at
budget. Last summer’s R F P process has res ulted in lower fixed expenses. However, our claims cost are
expec ted to ris e. In order to s mooth increases while us ing some exc es s fund res erve, a medical and dental
plan premium inc reas e of 5% for employees , effective January of 2020, has been included in the C ity
Manager ’s proposed F Y2020 budget.
P remium models for dental and vis ion were pres ented to and disc ussed with the Employee Benefits
C ommittee on July 16th, 2019. After c onsidering a variety of options , the c ommittee rec ommends the
model shown in the pres entation, which is a flat 5% ac ros s both plans and across all of the enrollment tiers
for medic al and dental.
S taff recommends that the premium changes that align with the C ity Manager ’s proposed budget and the
Employee Benefits C ommittee’s rec ommendation be approved by the G G AF and C ity C ouncil. S taff will
then communic ate thes e c hanging to employees during the O ctober 2019 open enrollment period.
F IN AN C IAL IMPAC T:
R ecommended medic al premiums will increase revenue by approximately $68,500 per year. R ec ommended
dental premiums will increase revenue by approximately $7,500 per year. T hes e revenue increases will put
the S elf-Insuranc e F und in pos ition to meet budgeted revenue in F Y2020.
S UB MIT T E D B Y:
Tadd P hillips, Human R es ourc es Direc tor
AT TAC H ME N T S:
Description Type
Pres entation Backup Material
Page 29 of 47
FY2020 Annual Budget
GGAF
July 24, 2019
FY 2020 Budget
Employee
Benefits Update
Page 30 of 47
FY2020 Annual Budget
Benefits History
•Self-Insurance began January 1, 2014
•Plan year begins January 1, Fiscal year October 1
•United HealthCare Administrator since January 1,
2016, Renewed in 2019
–Significant reduction in stop-loss and administrative costs
–Employee experience has continued to be positive
•Expenses significantly under budget in Fiscal 14 & 15
–Right at budget in FY 16, FY 17, & FY 18
–Expected to be at budget for FY19
Page 31 of 47
FY2020 Annual Budget
Benefits History
•The largest and most volatile expense to the fund are medical
and pharmacy claims. Fluctuations occur both seasonally and
episodically. Reinsurance, conservative budgeting, and fund
reserves are essential to a healthy program.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Jan Feb Mar April May Jun July Aug Sept Oct Nov Dec
12 months Net Claims 2018
Page 32 of 47
FY2020 Annual Budget
Employee Benefits Program Goals
1.Maximize employee health
2.Assure competitive and current plan offerings and
design
3.Maintain program affordability for City and
employees
4.Facilitate employee plan navigation and
consumerism
5.Compliance and administration
•Staff is working tactical plan built from goals
Page 33 of 47
FY2020 Annual Budget
Self Insurance Fund Reserve
•Strong reserve policy and balance
Reserve
Fiscal Year As of September 30th, 2019
Beginning Balance $3,488,229
Revenues $8,617,739
Expenses $8,845,739
Ending Fund Balance $3,260,229
IBNR $650,000
10% of annual expense*$7,707,739
Premium Stabilization Reserve $1,532,000
10-20% of annual expenses*$1,541,546
Remaining Balance $1,078,229
*Annual expenses = claims, admin, and S/LPage 34 of 47
FY2020 Annual Budget
Benefits Update
•Contracts through 2021
–Dental with Ameritas
–Medical, Pharmacy, COBRA Administration, Retiree
Administration, Flexible Spending Account
Administration, Voluntary Vision, Stop Loss Insurance
with United Healthcare
–Voluntary Life and AD&D Insurance -MetLife
–Benefits Concierge Service -Compass
–Employee Assistance Program –Alliance WorkPartner
–Short Term Disability/Long Term Disability -Dearborn
Page 35 of 47
FY2020 Annual Budget
FY2020 Expenses
•2020 Medical/Dental
–Upward Trend
•Claims 9%,
•Stop/Loss 15%
•Administrative Fees -Flat
–Thorough analysis of rate tiers by Benefits
Consultant (Gallagher)
•Proposed 5% Increase through ER/EE premiums
Page 36 of 47
FY2020 Annual Budget
Fund Schedule FY2020
Thursday, July 18, 2019
FY2018 Actual
FY2019
Budget
FY2019
Projected
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Beginning Fund Balance 3,343,251 3,476,229 3,488,229 3,260,229 - 3,260,229
Revenues FY2018 Actual
FY2019
Budget
FY2019
Projection
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Dental Contributions 415,904 440,000 450,650 470,000 - 470,000
HDHP Contributions 2,843,930 2,950,000 2,950,000 3,256,796 - 3,256,796
Other 418,945 430,000 450,000 450,000 - 450,000
PPO Contributions 4,162,117 4,477,739 4,477,739 4,569,734 - 4,569,734
Stop Loss Reimbursement - 500,000 300,000 400,000 - 400,000
Grand Total 7,840,896 8,797,739 8,628,389 9,146,530 - 9,146,530
Expenses FY2018 Actual
FY2019
Budget
FY2019
Projection
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Dental Claims 428,913 480,000 480,000 494,400 494,400
Fees 348,068 413,000 233,000 220,260 220,260
H.S.A. Contributions 317,508 360,000 360,000 317,600 317,600
Medical Claims 5,745,698 6,777,739 6,777,739 7,400,000 7,400,000
Other 212,740 275,000 275,000 280,500 280,500
Stop Loss Fees 654,990 750,000 720,000 825,000 825,000
Grand Total 7,707,917 9,055,739 8,845,739 9,537,760 9,537,760
FY2018 Actual
FY2019
Budget
FY2019
Projected
FY2020 Base
Budget
FY2020
Changes
FY2020
Budget
Ending Fund Balance 3,476,230 3,218,229 3,270,879 2,879,649 - 2,879,649
CAFR Adjustment 11,999 - - - - -
IBNR 631,140 650,000 650,000 650,000 - 650,000
Rate Stabilization 1,262,280 1,532,000 1,532,000 1,650,000 - 1,650,000
Available Fund Balance 1,594,809 1,036,229 1,088,879 579,649 - 579,649
2:57:34 PM 590 - Self Insurance
Page 37 of 47
FY2020 Annual Budget
Questions or Comments?
Page 38 of 47
FY2020 Annual Budget
Medical & Dental
Premium Increase
•GGAF
•July 24, 2019
Page 39 of 47
FY2020 Annual Budget
Fiscal and Budgetary Policy
•VI. C. 3
–Employee Premiums –Annual premiums will be recommended to City Council through
a collaborative process between the City’s Employee Benefit Committee and external
Health Benefits Consulting firm using historical data and other analytical analysis.
Page 40 of 47
FY2020 Annual Budget
Premiums
•Medical & Dental –Self Insured
•Recommending 5% increase for both employee and employer to mitigate rising
claims costs
•Employee Benefits Committee discussed options –given 5 options for medical and
3 options for dental
Page 41 of 47
FY2020 Annual Budget
Employee Benefits Committee
•Bert Witcher –Police
•Delta Jolly –Police Association
•Daniel Bilbrey –Fire
•Denny Herrin –Fleet
•Jamie Beran –Parks
•Sally Bernier –Library
•Mike Stasny –GUS
•Paul Diaz/Erica Weitman –Finance
•Chris Foster –GUS
Page 42 of 47
FY2020 Annual Budget
Medical Premium Increase
•Employee Benefit Committee
Recommended Model
•Chosen out of 5 models by the employee benefits committee
5% increase on employee side is roughly $68,500 –proposed model would bring in $68,425.80
Plan Current Monthly
Premium
Proposed Monthly
Premium ~% Increase Annual Difference
HSA –E $13.00 $13.65 5%$7.80
HSA –EC $73.00 $76.65 5%$43.80
HSA –ES $290.00 $304.50 5%$174.00
HSA –EF $290.00 $304.50 5%$174.00
PPO –E $79.00 $82.95 5%$47.40
PPO –EC $144.00 $151.20 5%$86.40
PPO –ES $577.00 $605.85 5%$346.20
PPO -EF $577.00 $605.85 5%$346.20
Page 43 of 47
FY2020 Annual Budget
Dental Premium Increase
•Recommended Model
–Chosen out of 3 models by the employee benefits committee
5% increase on employee side is roughly $7,500 –proposed model would bring in $7,503.60
Plan Current Monthly
Premium
Proposed
Monthly
Premium
% Increase Annual
Difference
EE $2.00 $2.10 5%$1.20
EC $17.00 $17.85 5%$10.20
ES $20.00 $21.00 5%$12.00
EF $41.00 $43.05 5%$24.60
Page 44 of 47
FY2020 Annual Budget
•Consideration and possible action to approve and
recommend to Council the Employee Benefits Committee
proposed medical and dental premiums for the 2020 plan
year
•Staff recommends GGAF approval of the following:
–Proposed premium model for dental and for medical
GGAF Actions
Page 45 of 47
FY2020 Annual Budget
Questions or Comments?
Page 46 of 47
City of Georgetown, Texas
Government and Finance Advisory Board
July 24, 2019
S UB J E C T:
Adjourn meeting
IT E M S UMMARY:
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
Amy Mertink, Board Liais on
Page 47 of 47