December 3, 2018 Commission Minutes

December 3, 2018 Commission Minutes

December 3, 2018 Commission Minutes

website_admin Minutes


Regular Meeting


December 4, 2018                                                                                                                        5:00 P.M.

Mayor Brian Linin called the meeting to order with Vice-Mayor Jay Dee Brumbaugh, Commissioner Annette Fairbanks, Commissioner John Garcia, and Commissioner Jacque Schields responding to roll call.


Also present were Rich Simon – Director of Public Works, Dustin Bedore – Director of Electric Utilities, Joni Showalter-Police Chief, Suzanne McClure – Economic Development Director, Alex Weis – Code Enforcement, Mary Volk – City Clerk, and Andrew Finzen – City Manager.


Mayor Linin led Pledge of Allegiance





  1. 11/19/18 Commission Meeting Minutes
  2. Appropriation Ordinances, 2018-23, 2018-23A, and 2018-P23

ON A MOTION by Commissioner Garcia to approve Consent Agenda seconded by Commissioner Fairbanks.  MOTION carried on a VOTE of 5-0.



  1. Resolution 1543: Designating Records Custodians – Andrew stated, resolution designates record custodians, specifically City Clerk, Police Chief and Municipal Court Clerk, for City as required by KORA.   ON A MOTION by Commissioner Garcia to approve Resolution 1543: Designating Records Custodians seconded by Commissioner Schields. MOTION carried on a VOTE of 5-0.



  1. Health Insurance Renewal – Rhonda Fernandez from PIC stated,with early renewal the City is running ahead on claims paid year to date.  The City has been self-funding for three years and have been able to put money in reserves.  When you began self-funding, the Commission discussed a five year cycle to allow reserves to build to cover difference between maximum and expected claims.  As reserves are built you have flexibility to adjust funding level.  There are approximately $148,000 in reserve fund for self-funding.  Renewal is fairly flat which is very good considering utilization.  At last meeting we talked about the captive plan we have been reviewing quarterly.  The City has three contracts exceeding $30,000 stop loss and are funding at maximum level.  I consulted a Third Party Administrator (TPA) plan, costs are neck and neck with many disclaimers.  I feel if City would like to change there should be decrease in costs.  We need claim detail to find out what causes three contracts to exceed stop loss but unable to obtain with size of your group.   I recommend the City remain stable with plan for five years.  Captive Plan is trending costs forward in unfavorable manner due to group size and unknown risks.  TPA’s, BMI and CoreSource, want information on three contracts but will not finalize until sixty days out.  Vice-Mayor Brumbaugh stated, the hospital saved $80,000 with premiums last year switching to Meritain, did you shop with them?  Rhonda stated, BMI is similar to Meritain.  What changed in the hospital plan for that amount of savings?  Your grandfather status does not change premium much but it will change your prescription plan which is saving you money now without the drug card.  That is my biggest concern with City changing grandfather status as it is saving the City money at this point.  When you change plans utilization of prescriptions will go way up.  Vice-Mayor Brumbaugh asked, does City have deductible for employees?  Rhonda stated, yes $500 then 80/20 to $1,000 times two.  There are limitations in City plan by limiting office visits to five, then costs are applied toward deductible.  Mayor Linin asked, what portion of our claims are prescriptions?  Rhonda stated, they are paid 50/50 and employee has to turn in claim to get money reimbursed from BCBS.  Many employees will not turn in claims if they do not have many prescriptions.  Total through November is $22,914.  If hospital is saving $80,000 something in benefit has shifted as claims still exist.  I have no problem shopping with others; I have many clients on insurance other than BCBS.  For groups under one hundred, BCBS will not release information.  Vice-Mayor Brumbaugh asked, what is time line?  Rhonda stated, since we asked for early enroll, latest we can go is January.  We shop the policies for you, but if someone says they are going to save you a lot of money you have to know where savings come from.  Commissioner Garcia asked, so you can get us information?  Rhonda stated, I can but will need to get health assessments on each employee.  We need to look at how out of pocket exposure goes up for employee and how plan treats out of state provider.  When write plan document, want to make sure have coverage across country.  Vice-Mayor Brumbaugh stated, we need to be good stewards so feel need to have numbers to compare.  I know there are other options out there.  Rhonda stated, I will gladly do what commission requests.  We have already seen numbers that are not helping City.  Vice-Mayor Brumbaugh stated, since numbers are flat line I am alright with what is presented.  Mayor Linin stated, I agree, nice we do not have increase.  It feels like I do not have right information to compare.  Rhonda stated, if you want to get health assessments I will but need to set a deadline.  This will be based on your group size.  Commissioner Garcia stated, I feel we need to be good stewards and get information.  Rhonda stated, I will get web site set up and the employees will have to complete assessments.  If plans fixed costs are not saving you money, it will not help.  I have shopped with TPA’s and Captive but they are not certain what information is in data with your group size.  Commissioner Schields stated, if you have assessments, it gives you more information to shop.  Rhonda stated, you have to have 100% participation by employees to avoid a disclaimer.  Commissioner Fairbanks asked, do you think if we get information and shop around, will we get $80,000 in savings?  Rhonda stated, no.  Vice-Mayor Brumbaugh stated, part of savings was when BCBS increased rates, so that was considered part of savings.  Rhonda stated, once I get census, I send to TPA based on your size.  Next year can do health assessments early to lock in numbers with other carriers or if need to redo health assessments.  Mayor Linin stated, I feel should do assessments now.  Andrew stated, we will do assessments next week, setting three day window to complete and submit.
  2. Professional Insurance Consultants (PIC) Consulting Agreement 2019 – Andrew stated, this is a demonstration why her services are necessary.  She knows the information and understands the market which is constantly changing.  She has proposed a new agreement increasing City contribution to $1,500 per month from $1,250 effective March 1, 2019.  She has been at the current rate since inception in 2015 and staff uses her services on an ongoing basis.  ON A MOTION by Commissioner Fairbanks to approve Professional Insurance Consultants (PIC) Consulting Agreement 2019 seconded by Commissioner Schields. MOTION carried on a VOTE of 4-1 with Vice-Mayor Brumbaugh casting the dissenting vote.
  3. PIC Business Associate Agreement 2019 – Rhonda stated, this agreement is HIPPA compliant agreement with group.  My attorney suggests I update agreement every three years to ensure City knows we are protecting their data.  ON A MOTION by Commissioner Garcia to approve PIC Business Associate Agreement 2019 seconded by Commissioner Fairbanks. MOTION carried on a VOTE of 5-0.
  4. Unfit Structure 418 E. 17th Street – Andrew stated, B & K Pumping has started demolition of property but has been stalled. We anticipate will be done soon so recommend tabling item until next meeting.  Commissioner Fairbanks asked, has owner been in contact with Alex?  Alex stated, B & K told me they were getting ready to start a few weeks ago, but that is all I know.  ON A MOTION by Commissioner Fairbanks to table discussion of unfit structure at 418 E. 17th Street until December 17th seconded by Commissioner Schields.  MOTION carried on a VOTE of 5-0.
  5. Library Contract 2019 – Andrew stated, this is the annual contract between Sherman County, City and the Library. ON A MOTION by Commissioner Garcia to approve Library Contract 2019 seconded by Vice-Mayor Brumbaugh.  MOTION carried on a VOTE of 5-0.



  1. Unfit Structures 2019 – Andrew stated, as 2018 winds down we would like to know how the Commission wants to deal with unfit structures in 2019.  The big issue is Motel 7 which has not been addressed due to budget and money.  Vice-Mayor Brumbaugh asked, what is the status?  Andrew stated, will have to do title search as when dropped property last time there was a litigation case in place.  Mayor Linin asked, we got an estimate on the cost to demolish this property right?  Andrew stated, yes about $50,000 which was entire budget.  Mayor Linin stated, I feel we need to address structure because it is not going away.  Can staff help with demolition, even if have to spend overtime? We know it needs to be done, even if it exhausts the budget.  Andrew stated, it has asbestos so need certified contractor for abatement so will bid package.  Commissioner Fairbanks stated, we need to know where law suit is before plan to proceed.  Andrew stated, that is reason I want to discuss because if bids come in too high we need to look at options.  Consensus of Commission is proceed with demolition process for Motel 7 in 2019.



  1. City Managers Report- 1. The City applied to Dane Hanson Foundation for community initiative intern to complete downtown master plan.  They will find intern to begin process and we will work with Northwest Tech College to provide housing.  The foundation pays $20 per hour for study.  2. The next joint meeting with the County is December 11th at 7:00 a.m. at Wolak Building.  Dispatch renovation will be the major topic.    Offices are closed for the holidays on December 24th and 25th and January 1st4.  Santa’s Schoolhouse was successful last weekend.  It will open again this weekend then the 15th5.  Youth Entrepreneur Commission was held November 28th and was a successful event.  There are some creative projects.  6.  Second meeting in January we will have elections for Mayor and Vice-Mayor.  Vice-Mayor Brumbaugh asked, are there issues enforcing parking ordinance?  Alex stated, last conversation I had with Andrew was to put a hold on enforcement until we know how to enforce it.  Vice-Mayor Brumbaugh stated, I questioned that.  Andrew stated, we are still working through issues.
  2. Commissioners

Vice-Mayor Brumbaugh – 1.  Lights downtown look good, I know it was a lot of work.

Commissioner Fairbanks – 1.  Staff works hard on lights and they do look good.  I had a gentleman doing restoration project on Main Street indicate we have one of nicest downtowns for our size of community.

Commissioner Garcia – 1.  Thanks to the guys for all they do with lights.  2.  Good to see publicity with VanGogh filming.  3.  Kudos for grant on intern to do master plan.

Commissioner Schields – 1.  Reiterate thanks to employees for what they do with lights, they look good.

  1. Mayors Report – We spent a lot of time on insurance tonight but I feel the Commission provides good benefits to employees so important to do due diligence.


ADJOURNMENT WAS HAD ON A MOTION Commissioner Garcia seconded by Commissioner Schields.  Motion carried by unanimous VOTE, meeting adjourned at 6:40 p.m.  Next joint meeting is scheduled for December 11th and next regular meeting is December 17th.






ATTEST:                                                                               Brian Linin, Mayor





Mary P. Volk, City Clerk