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HomeMy WebLinkAbout1989-02-27 adjFebruary 27, 1989 (Adjourned Meeting) (Page 1) 293 An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held jointly with the School Board on February 27, 1989, at 8:00 A.M., Meeting Room #6, County Office Building, 401McIntire Road, Charlottesville, Virginia. The meeting was adjourned from February 22, 1989. BOARD MEMBERS PRESENT: Mr. Edward H. Bain, Jr., Mr. F. R. Bowie, Mrs. Patricia H. Cooke, Messrs. C. Timothy Lindstrom, Walter F. Perkins and Peter T. Way. BOARD MEMBERS ABSENT: None. OFFICERS PRESENT: Mr. Guy B. Agnor, Jr., County Executive. Agenda Item No. 1. Call to Order. The meeting was called to order at 8:09 A.M. by the Chairman, Mr. Way. Agenda Item No. 2a. Presentation of Medical Insurance Options and Flexible Benefits Program. SCHOOL BOARD MEMBERS PRESENT: Messrs. William W. Finley, Clifford W. Haury, Charles S. Martin, Charles R. Tolbert, and Roger R. Ward. Also present were Mr. N. Andrew Overstreet, Division Superintendent, and Mr. David Papenfuse, Assistant Superintendent for Finance. Dr. Carole A. Hastings, Director of Personnel, said that over the last several years the premiums for medical insurance coverage through Blue Cross/Blue Shield have risen dramatically despite cost containment efforts, such as implementing KeyCare in January, 1986~ These increases are attrib- uted to the inflation in the medical industry and do not appear to be due to abnormal usage. The County solicited bids ffom insurance vendors in the Fall of 1988 to assure that the present carrier is~cost effective. The most competitive bid of the three vendors responding was from Blue Cross/Blue Shield. There is a projected increase for July ~,~ 1989, of about 34 percent. Some employees have expressed dissatisfaction with the KeyCare coverage provision of having to use certain providers ito receive full benefits. Blue Cross representatives have said they could offer County employees a choice among three medical plans effective July 1, 11989. One choice would be Key- Care coverage, while the other two would have,higher deductibles with lower premiums. In order to work out the details Of such a proposal, Dr. Hastings recommended the development of a joint local government/school division committee to work with Blue Cross. The detai~s of the proposed choices could be brought back to the Boards for approval in the Spring. Dr. Hastings said there would be no budget implications since the annual rate provided by the County for insurance would be used by the employee toward one of the choices. Dr. Hastings said the idea of choice in determining benefits can be expanded to a flexible benefits program, whereby employees are provided benefit vouchers which they can apply among a~ array of benefits most suited to each employee. The effect on employees is !positive because they have an active part in their benefit program. In addition, under current tax laws, dollars expended in flexible benefit programs !are tax exempt. Thus, the employee would receive an added tax advantage, and the County would recoup its share of social security costs for the monies!!put into the plan. The estimated costs of planning, designing, communicating, and implement- ing such a plan (including software) would range between $175,000 and $200,000. Before beginning such a large effort, a feasibility study would need to be conducted at a cost of $18,000 to ~27,000. If a feasibility study indicated that a flexible benefits program could work in Albemarle County, the next phase would include a detailed plan design and communication program. This phase would have to be funded in the 198gZ90 budget for a July, 1990 implementation. The final phase would requir~ibetween $70,000 and $90,000 for design of computer software and consultant set'Vices in actually administering the plan. This phase could be budgeted in the~1990-91 budget. Dr. Hastings requested approval to seek bids and engage a cpnsultant for the feasibility study. She said funds exist in this year's budget to cover the cost of this portion of the project. .~ 294 February 27, 1989 (Adjourned Meeting) (Page 2) Dr. Tolbert said the County is essentially self-insured with Blue Cross acting as the agent. He asked Dr. Hastings if the administrative fee was going up. Dr. Hastings said it was not. Dr. Tolbert asked if the bids were for the administrative fee. Dr. Hastings said essentially they were, and Blue Cross was the low bidder. Mr. Bowie said he had checked his personal medical bills, and they have not gone up more than ten to fifteen percent over the last two years. No area of medical service has gone up 34 percent. He wondered if Blue Cross is using a national average. Dr. Hastings said that Blue Cross costs are based on what doctors are charging. She said the 34 percent increase r~flects the increase in what doctors are charging to provide their services. She went on to say that there is no indication of abuse of the plan. Dr. Hastings said there are more outpatient claims and less in-hospital claims. Dr. Tolbert said he agreed with Mr. Bowie. He could not see that medical costs have gone up to that level. Dr. Hastings said the County was unable to break even on the plan. The projected deficit for the end of this year will have to be recouped. Dr. Tolbert said it bothers him that employees will be forced to pay 34 percent more and make up the difference that the County could not fund. Mr. Bain asked how much employees would have to pay when the premiums go up. Dr. Hastings handed out a 1989-1990 Medical Insurance Premium Projection form. Currently, employees pay $13.55, and the County pa~s $69.82 per month. The projected increase would mean $32.66 for the employee~i and $75.00 for the County. Mr. Bowie said he was surprised to learn that only 40 percent of employees are enrolled in the BenePlus plan. Mr. Lindstrdm said he thinks it is important to find out why people have not taken advantage of the present plan before going into another plan. Mr. Martin said he thinks the choice of benefits is al good idea. He said more people are willing to look at insurance plans than are willing to look at tax plans. He asked how much the feasibility study would'cost. Dr. Hastings said between $18,000 and $27,000. Mr. Agn-or said there are really two issues under disdussion. One is a three tier health plan which has nothing to do with taxes or salary deduc- tions. It would simply give employees a choice. The $900i contributed by the County for each employee could be applied to one of these Choices. The employee would pay any additional premium beyond the $900.}~! Mr. Perkins said other localities must be going through the same type of rate increase. There should be some way that localities could join the State program. Mr. Agnor said he thinks recent legislation on this applies to only localities who do not have enough employees to obtain thei~ own group plan. He pointed out that this legislation applies only to health insurance. He said he also believes our group rates are less then those Df the State. Dr. Hastings said the County could join the State plan. However, Blue Cross had looked at the feasibility and found that it would be less beneficial because of the higher experience rate the State has. Mr. Bowie asked if there would be any savings by goin~ to a flexible benefits plan. Dr. Hastings said there would be a social becurity savings of 7.5 cents on each dollar. 1 Mr. Bowie said he has a feeling that there are more c~itical funding needs than this feasibility study. He would like to see what the return on the money would be. Mr. Agnor said that would be determined by the feasibility study. ~ Mr. Lindstrom asked what the in-house study is going ~o determine. Dr. Hastings said a three tier plan to suit the needs of employees would be designed for implementation on July 1, 1989. She said thei'~committee would have information for the Board within a month as a result ~f their study. She February 27, 1989 (Adjourned Meeting) (Page 3) 295 said Personnel would do a survey also to determine why there is so little interest in the current BenePlus plan. Mr. Lindstrom said he does not mind spending money for a program if it makes sense. However, he understands that the insurance package is of concern to employees as much as their salary. He feels the Board should look at the possibilities. Mr. Bain said he agrees that this can mean a lot to employees, and he would like to look at it as well. Mr. Agnor asked what information Mr. Bowie wanted staff ~o gather regarding the use of theSe funds. Mr. Bowie said he would check into it himself. Mr. Way said the matter could be placed on the agenda for March 8. Mr. Lindstrom said the question of whether there are more important needs for the funds is not a concern he has. But since the question has been raised, he feels the staff should address the question and provide the infor- mation to the entire Board, rather than having one Board member do that. Dr. Hastings said by March 27, a proposed three tier plan could be designed and brought back to the Board for their review. Motion was offered by Mr. Bain and seconded by Mr. Lindstrom to authorize the expenditure of between $18,000 and $27,000 from the General Fund for a feasibility study on a flexible benefits program as requested by the Personnel Department. Roll was called and the motion cmrried by the following recorded vote: ~ AYES: Mr. Bain, Mrs. Cooke, Messrs. Lindstrom and Way. NAYS: Messrs. Bowie and Perkins. Agenda Item No. 2b. Discussion of a Standardized School Building Design. Mr. Tolbert said as a result of previousldiscussions, he had put together his thoughts on this subject, a copy of which!he had distributed to the Boards. i~ Mr. Lindstrom said that in addition to Standardized school plans there is the need for a coordinated construction process. The real question is what can be done to make the process smoother. Someone has to be familiar with the whole process of what actually happens at each step. Mr. Tolbert said an example of a problem/on school construction can be seen in the Crozet project. The original figure from two years ago was $2 million. Now the figure is up, and everyone is surprised. He said the original figure was a construction cost figure rather than total project cost. If that had been understood clearly, it would ~be easier now to determine if the current figure is reasonable or unreasonaSle. Mr. Bain said he thinks the process is important. He said it is neces- sary to start with real figures before putting them in the budget the first time. Mr. Tolbert said it is important to agree early in the project on the scope of the project, then hire an architect and tell him exactly what is expected Beginning with a seat of the pantJ estimate and then trying to hold an architect to it is what has been done!~in the past. He said that results in bad feelings among those involved in the process which could be avoided. Mr. Lindstrom said it would be helpful to him to get a chronology of the Meriwether Lewis, Crozet and Southside Schooli~projects showing exactly the sequence of decisions from the conception of the idea all the way through. The common elements among these could be used to implement standardized building plans. Mr. Tolbert said he would try to get that information. (Mr. Way left at 8:55 A.M., and Mrs. Cooke took the Chair.) Mrs. Cooke said that Mr. Tolbert's repor~ spoke to the fact that even having a standardized plan, the architect stiil has to adapt it to the site. The point Mrs. Cooke said she had been trying to make all along is that it escalates the cost to start all over on each project. She said it is neces- sary to have a definite plan and basic design {to start with. Then give the 296 February 27, 1989 (Adjourned Meeting) (Page 4) architect directions rather than having the architect come up with the ideas. This would eliminate so much of the preliminary work being done on projects now. Mrs. Cooke said she fully understands that no one can project the cost of a building ten years in the future. However, she said the discussion is as much about attitudes of conserving money as it is about building. She said she did not have a problem spending $5 or $6 million if that is what the real cost is and it is needed. She does have a problem, she said, spending that money when it is not necessary. She said she thinks Mr. Lindstrom's sugges- tion is valid and worth the effort. Mr. Lindstrom said one thing about having a standard design is that it would be familiar to the Board. If changes had to be made to it to conform to a site, it would be easier to understand the cost changes. Mrs. Cooke said a standardized plan puts the Board in a position of being able to compare apples to apples. New Board members would also have a point of reference from which to keep everything in proper perspective. Mr. Finley said he agrees. For example, he said he was on the committee to select an architect but knew nothing about the process. He said the idea of standard- ized plans could be carried to furniture and equipment that could be trans- ferred from school to school as well. Mr. Tolbert said he has no objection to standardization to that level. He thinks it is wise. However, his concern regarding the building design is how to pick the best one. He said there are some elementary school plans which have been used for years, and there is a knowledge of how they work. However, it is not known what they would cost in today's ~arket. There is no knowledge as yet regarding how well the new school designs that are being built will work. He said he wants to standardize the pro~ess, but stan- dardization of. the building has to be based on usefulness.l Mrs. Cooke said she is not sure that particular type!iDf information will ever be available because new designs are constantly bein~ developed. She said the process has to start somewhere. A few years int~ the future archi- tects might suggest a new design or variation. She said t:hat could work to the County's benefit if there is something to compare it kith. She said starting over with each new project is not the way to do ft. Mr. Ward said the architects could be given a basic list of criteria from which they would make suggestions. He said members of the~Boards may not have the expertise to make decisions on building design that a~ architect would have. -: Mr. Lindstrom said part of the problem is there is no~ formal process. The Board says how much can be spent in terms of an estimate. Someone else hires an architect who meets with people who have nothing!.to do with that original figure. Mrs. Cooke said a standardized process Would eliminate late night committee meetings of parents and teachers who wanti~a "cadillac" school and whose "wants" list turns into needs. Mr. Haury said standardization could be sacrificing ~he parent and teacher input element. He suggested that if a standardized plan is developed, there should be several choices available, such as includihg a computer room, an art room, and music rooms. Mrs. Cooke said she did not disagree with that. She expects that specific needs will occur and did hot intend that all possibilities be eliminated by use of standardized plans. Mr. Lindstrom asked staff to put together a chronology on the three recent projects he had mentioned and make it available to the Board in advance of the next joint meeting. Mr. Tolbert said he agrees that it is important to see what happened in the past. He said it might be more appropriate to talk about a standardized scope of work rather than a drawing o~ what the building will look like. Mrs. Cooke said that is a starting point.! Mr. Lindstrom said regarding the standardization procedure, he would rather have staff err on the side of too much detail than boo little. Mr. Perkins said he thinks the message sent to the community that the Boards are concerned about the cost and are working toward!icontrolling costs is an important one. February 27, 1989 (Adjourned Meeting) (Page 5) 297 Mr. Agnor said that he and Mr. Overstreet would work on this request together. (Mr. Martin left at 9:40 A.M.) Agenda Item No. 2c. Explanation of Funding of Capital Projects. Mr. Lindstrom suggested that the memo on this subject be looked at and discussed at the next meeting. At that time the new budget cycle could be explained as well. Mr. Tolbert said he does want the School Board to under- stand the funding options because there may be a shocking figure coming from the Long Range Planning Committee. The consensus of the Boards was to have discussions regarding a new capital budget cycle and the funding options moved to next month's agenda. Agenda Item No. 2d. Discussion of Italian Student Exchange Program. Mr. Agnor said that last week a letter was received from the Italians addressed to Mayor Elizabeth Waters, and it Contained the names of twenty students who are to come to Charlottesville/Albemarle this summer for the Student Exchange Program. Mr. Agnor said he:has been told that there is no planning going on in either the City or the County for this Program, and the Chairman was going to ask if the two Bards are interested in continuing this program. Mrs. Cooke said she was in Italy at theltime the arrangements were made for this Program. This idea had been discussed for a long time, and when she and others arrived in Italy, it was made plain that the main reason for being invited was to develop plans for the Program. It was decided that the Americans would bring back an idea for a cultural exchange rather than a student exchange program. The Program was s~arted, but it is expensive on this end, and enthusiasm has waned. Mrs. Co6ke said she feels the localities need to "fish or cut bait". Mrs. Cooke said she corresponds regularly with a person on a friendship basis, and she knows ~hat the Italians want to continue the program. Mr. Lindstrom asked why a full year exchange was not undertaken rather than a summer program. Mrs. Cooke said she ~hought there was no enthusiasm on the part of the school system. She said the~e is a language barrier on our part, because they speak English, but our students do not speak Italian. .Mr. Lindstrom said he suspects there is also the !expense for the families involved. Mr. Lindstrom said he has had personal ~xperience in this regard since his wife participated in a program like this in Germany for one year. She still retains friends from that period. He ~aid he does have a question as to whether three weeks is not more of a glorified vacation. He wondered if the program should not be expanded if it is going to continue. Mr. Tolbert said it is really more than:three weeks. The American students live three weeks in Italy. Then Italian students come here for three weeks. About 20 students have spent the who~ summer together. He said the community gets very involved in the program ih Italy. Mr. Lindstrom said he is still curious about the possibility of expanding the program. His reservation is that the experience is limited to those students having the funds to be involved. He would like to see that problem addressed to make the program available to more students. Mr. Tolbert said there has been some effort to get the community to put up the funds. But it takes a lot of work. He said if the Boards ~eel that the money would be available, the school system could put.together a committee to organize a program. He said if the committee has to st ~r~ggle with getting funds, it becomes too difficult. Mr. Lindstrom asked what the time frame is for this program. Mr. Agnor said the Italian students are getting ready t~ come here now. Mr. Lindstrom said he would like to have the Board consider~iexpanding the program and would like to see more information about it. He suggested that a committee be formed and that Mrs. Cooke be the Board's representative on that committee. Mrs. Cooke said she would like to see the Chamber of Commerce involved as well. 298 February 27, 1989 (Adjourned Meeting) (Page 6) Mr. Tolbert said he does not think Italy has an attraction for our students since the Italian language is not taught in Albemarle. However, he said he would be glad to call Mrs. Jeanne Cox who has coordinated these exchanges in the past to see if she will head the committee. Mr. Agnor said Ms. Roxanne White has been involved in this, and she could be on the committee as well. (Mr. Lindstrom left at 9:55 A.M., and Mr. Way returned.) Agenda Item No. 3. Other Matters Not Listed on the Agenda. There were no other matters to come before the Board at this time. Agenda Item No. 4. Adjourn to March 1, 1989, 1:30 PiM. At 10:00 A.M., motion was offered by Mr. Bain and seconded by Mr. Bowie to adjourn to March 1, 1989, at 1:30 P.M. Roll was called and the motion carried by the following recorded vote: ~ AYES: Mr. Bain, Mr. Bowie, Mrs. Cooke, Messrs. Perkins and Way. NAYS: None. ABSENT: Mr. Lindstrom.