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1993.09.21_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH FINANCIAL ADVISORY BOARD REGULAR MEETING - MINUTES Tuesday, September 21, 1993 9:30 A.M. Chairman S. Myron Browner called the Regular Meeting to order in Com- mission Chambers at 9:30 A.M. Deputy Town Clerk Doris Trinley called the roll. In addition to the Chairman, Vice Chairman Victor P. Hadeed and Members Fred Fristenburg and Thomas J. Reid were present. Member Frank Magarace was absent. Also present were Town Manager Mary Ann Mariano and Finance Director Michael Seaman, as were those scheduled to make presentations. MINUTES Upon MOTION by MR. FIRSTENBURG/MR. REID, the Minutes of the July 13, 1993 Regular Meeting were unanimously approved as written. OLD BUSINESS •Chairman Browner thanked Ms. Mariano and Mr. Seaman for providing him with a list of Town properties which are on the county's delinquent tax rolls and noted there was nothing of import contained therein. Ms. Mariano advised she had related the Chairman's desire to review the Long Report to the Town Commission and was advised that the Commission did not want the project undertaken at this time. NEW BUSINESS INSURANCE PROPOSALS RE HEALTH & LIABILITY Two alternative health and dental plans were presented to the members, accompanied by pertinent materials: 1. Lauri Van Loo spoke on behalf of PCA Health Plans, a health maintenance organization (HMO). 2. Joe Steen of Travelers gave the presentation for a "hybrid" plan, i.e., employee could choose to use it as a straight indemnification policy or as quasi -HMO by using Travelers "network" of health care providers. Joe Martin of Burke, Bogart and Brownell submitted . a separate dependent dental plan proposed by Guardian to accommodate those employees who might opt to carry dependent health insurance with an agency other than the Town. This plan would be included as an option in Travelers package. Financial Advisory Board Regular Meeting - Minutes . September 21, 1993 Page 2 of 4 During the course of the presentations, substantial discussion took place and members' questions were answered to their satisfaction; com- parisons regarding coverage and policy premiums with the present car- rier, Florida Municipal Health Trust Fund, also took place. Tom Salzgeber of Burke, Bogart and Brownell next gave the presentation re liability insurance (Titan); again, comparisons with the existing carrier (Florida League of Cities) were taken into consideration. A COPY OF ALL PERTINENT MATERIALS RELATING TO THE AFOREMENTIONED PRO- POSALS IS ON FILE WITH FINANCIAL ADVISORY BOARD RECORDS, WHICH ARE LO- CATED IN THE TOWN CLERK'S DEPARTMENT. Having heard all presentations, lengthy discussion took place among the members, Ms. Mariano and Mr. Seaman. Among the important points considered were the following: Liability Coverage..... .Although it was noted that Titan would most likely have no objection to the Town's using its attorney of choice if need be, Ms. Mariano pointed out that this option was not included in the language of the policy. She also noted that the present carrier, Florida League of Cities, is not only familiar with certain legal actions in which the Town has been involved, but has been supportive of Town decisions as well as very resourceful in supplying general counsel and appellate counsel. .It was pointed out that the Florida League of Cities plan did not call for any deductible but had a slightly higher yearly premium compared to Titan's lower yearly premium; however, the Titan plan also called for a $2500 deductible per incident and thus one incident could negate any savings relative to the yearly premium. Health Coverage..... .For information purposes, it was advised that the results of an informal poll of employees conducted by Mr. Seaman showed that no one was interested in an HMO approach to care. .Ms. Mariano noted that should the Travelers plan be recommended she would administratively have the Town absorb the $840 total annual difference in the cost of premium under "Employee & Family" for the only two (2) _ employees who would be affected by this category, which was the only one increased in the Travelers plan; all other categories reflected a decrease in premium rate. It was also noted that any employees opting for dependent coverage in the future would pay the premium in effect, and once the current employees reached the $840 difference through general health rate increases, no further absorption of fees would be necessary. Financial Advisory Board Regular Meeting - Minutes • September 21, 1993 Page 3 of 4 .Some major advantages of the proposed Travelers plan over the present plan (Florida Municipal Health Trust Fund) were noted as follows: 1) Approximately $30,000 savings in premium costs. 2) $15,000 life insurance, for each employeee vs. $5,000. 3) "Hyb.rid" plan whereby.employee could choose to use it as straight indemnification plan (80% reim- bursement) or use Travelers network of health care providers (90% reimbursement). Concluding review and discussion MR. FIRSTENBURG/MR. REID made the following MOTION: BASED ON REVIEW AND STAFF RECOMMENDATION, THE BOARD RECOMMENDS THAT THE TRAVELERS HEALTH AND DENTAL PLAN BE ACCEPTED AS PROPOSED. Before vote was called, Mr. Had eed noted for the record that the 30% decrease in yearly premiums as offered by Travelers was very substan- tial; because of this, he suggested the policy be checked carefully. In response to Mr. Hadeed's comments, it was noted that the Florida •Municipal Trust Fund was a state organization only, while Travelers was nationwide and thereby had the capacity to spread its risk factor to a much greater degree. The Motion was then carried by unanimous favorable vote. Some discussion was generated as to whether a Motion was necessary re- garding the two (2) employees mentioned earlier by Ms. Mariano, whose difference in premium under the "Employee & Family" category would be absorbed by the Town. It was again noted that this was an admin- istrative decision and, therefore, did not need to be voted on. How- ever, Chairman Browner wanted his opposition to such action noted for the record, since information regarding the employees' salary ranges was unavailable and, therefore, he had no way of knowing if these employees might be able to afford paying the difference themselves. Regarding liability insurance, MR. FIRSTENBRG/MR. HADEED made the fol- lowing MOTION: AFTER REVIEW, THE BOARD FEELS IT WOULD BE TO THE TOWN'S BEST INTEREST TO REMAIN WITH THE THE FLORIDA LEAGUE OF CITIES. Motion met with unanimous favorable vote. BUDGET TRANSFERS 10 Budget transfers were approved as submitted. Financial Advisory Board Regular Meeting - Minutes AftSeptember 21, 1993 Page 4 of 4 There being no further business to come before the Board at this time, the meeting was adjourned upon MOTION by MR. REID/MR. FIRSTENBURG at 12:30 P.M. dmt APPROVE: J-1 �k� A, -�'— i S. Myron B owner, Chairman 7; � v 1-ctor P. Ha ee , Vice hairman 4NOTTEST: DATE: