Meeting Information
Amended Agenda
WEDNESDAY, APRIL 27, 2011
-4:00 p.m.
-Convene
-Consider approval of a proclamation to declare April 28, 2011 as "Worker's Memorial Day." -backup to follow
CONSENT AGENDA
(1) (a) Consider approval of Commission Orders; and
(b) Consider approval of the low bid from Cargill Salt for the supply of 2,000 tons of highway de-icing salt at a total cost of $99,960.00 (Keith Browning)
REGULAR AGENDA
(2) Review and approve the Douglas County Community Corrections Comprehensive Plan Grant Application for 2012 & Review and Approve the Community Corrections Budget Summary and Narrative for 2012 (Ron Stegall)
(3) Consider extending health insurance plan coverage to domestic partners and dependent children of the domestic partner. (Sarah Plinsky)
(4) Executive Session for the purpose of consultation to discuss possible acquisition of property.
(5) Other Business
(a) Consider approval of Accounts Payable (if necessary)
(b) Appointments:
Lawrence-Douglas County Metropolitan Planning Commission 05/31/11;
Property Crimes Compensation Board 04/30/11
(b) Miscellaneous
(c) Public Comment
(6) Adjourn
Flory called the regular session meeting to order at 4:00 p.m. on Wednesday, April 27, 2011 with all members present.
PROCLAMATION 04-27-11
Don Campbell, P1 Group; Denis Wittman, Plumbers and Pipefitters Local Union; and Aaron Payne, Treasurer for Lawrence Professional Firefighters, all spoke to the Board on safety as a priority at the work place. They asked the Board to approve a proclamation declaring April 28, 2011 as "Worker's Memorial Day." Gaughan read the proclamation and moved for approval. Motion was seconded by Thellman and carried 3-0.
CONSENT AGENDA 04-27-11
Flory moved approval of the following Consent Agenda:
► Commission Order No. 11-016 (on file in the office of the Clerk); and
► Acceptance of low bid from Cargill Salt for the supply of 2,000 tons of highway de-icing salt at a total cost of $99,960.00. Bid received as listed below:
Vendor Quantity (tons) Unit Cost Total Cost
Cargill Salt 2,000 $49.98 $ 99,960.00
Independent Salt 2,000 $54.43 $108,860.00
Hutchinson Salt 2,000 $62.50 $125,000.00
Dale Brothers 2,000 $62.50 $125,000.00
North American Salt 2,000 $94.71 $189,420.00
Motion was seconded by Thellman and carried 3-0
COMMUNITY CORRECTIONS 04-27-11
The Board considered approval of the FY 2011 Quarterly Budget Adjustment Report required by the Kansas Community Corrections Act, for Community Corrections. Ron Stegall, Director of Community Corrections, presented the item. Stegall introduced Deb Ferguson as the replacement Director, upon his retirement.
Thellman asked Stegall what programs are at risk. Stegall responded the programs that are not core programs go first, then core programs such as probation officers and surveillance services. He stated all money except $4,000 g s toward personnel. Additional monies in the amount of $10,000 would allow Community Corrections to keep surveillance officers if they receive the same funding as this year.
It was the consensus of the Board for administration to look at the $10,000 in 2012 after reviewing funding received.
Flory opened the item for public comment. No comment was received.
Flory moved to approve the FY 2011 Quarterly Budget Adjustment Report and certifies that the Board of County Commissioners has reviewed and approved the Comprehensive Plan for submission for the Kansas Department of Corrections. Motion was seconded by Gaughan and carried 3-0.
INSURANCE/BENEFITS 04-27-11
Sarah Plinsky, Assistant County Administrator, made a presentation to the Board to consider extending health insurance benefits to domestic partners of employees. Regarding the financial impact to employees and the organization, for each employee that is added to our plan, the county incurs a subsidy cost. The outline below is based on the assumption most employees with eligible dependent children interested in coverage are already on the plan. Under this assumption, adding a domestic partner to the plan d s not call for any additional costs for the employee or the organization. For each employee that moves from "Employee Only" coverage to Employee plus one" coverage, the county incurs a subsidy for $4,380. See as outline below:
Current Health Insurance rates (through June 1st)
County cost per month
Employee contribution per month
Difference
Plan 1: Employee only
$543.00
$29.00
$514.00
Plan 2: Employee plus one
$1,062.00
$183.00
$879.00
Plan 3: Employee plus family
$1,518.00
$254.00
$1,264.00
Difference between Plan 1 and Plan 2 subsidies:
$365.00
Difference between Plan 1 and Plan 3 subsidies:
$750.00
Difference between Plan 1 and Plan 2 subsidies annualized:
$4,380.00
Difference between Plan 1 and Plan 3 subsidies annualized:
$9,000.00
To estimate the number of employees who might come on to the plan or switch coverage, staff used U.S.D. 497 as an example to estimate a number of users. U.S.D. 497 has1,800 employees with 1,450 employees participating in their health insurance plan. They estimate six or less active domestic partners. Staff conservatively estimates five to 10 County employees to utilize this coverage. This calculates an estimated cost of $21,900 to $43,800 to the health plan at our current rates. This cost increases $23,693.60 to $47,387.20 when employer taxes are added to the cost estimate. Because the County is self-insured, the plan would be responsible for any and all actual medical claims for an individual on the plan, up to $175,000 when the stop loss coverage activates. In addition there are tax implications for both the employee and the employer.
In order to be eligible for coverage, with the advice of legal counsel, staff would prepare affidavits to be signed and notarized by both domestic partners, and the affidavit would include documentation whether the domestic partner could be considered a dependent for tax purposes and whether dependent children would be eligible for coverage.
If a domestic partnership dissolves with signed documentation per affidavit, the domestic partner is not entitled to federal COBRA coverage under the Defense of Marriage Act (DOMA). The County may choose to voluntarily extend continuation coverage.
If the employee qualifies as a dependent, then payments for healthcare coverage and other benefits are treated in the same way as coverage for other employees with family coverage. If the domestic partner d s not qualify as a dependent, the value of the coverage is included in the gross income of the employee and the value of the coverage must be reflected on the employee's W-2 Form. The table below lists the fair market value of the subsidy as $365.00 a month or $4,380 per year. This amount would be subjected to Social Security, FICA, FUTA, and federal withholding taxes.
Current Health Insurance rates (through June 1st)
County cost per month
Employee contribution per month
Difference
Plan 1: Employee only
$543.00
$29.00
$514.00
Plan 2: Employee plus one
$1,062.00
$183.00
$879.00
Difference between Plan 1 and Plan 2 subsidies:
$365.00
Difference between Plan 1 and Plan 2 subsidies annualized:
$4,380.00
Flory opened the item for public comment.
John McFarland, 3018 Tomahawk Drive, referred to an article in the Lawrence Journal World stating the cost of adding domestic partners to the County's benefits package would add $60,000 to the budget. He is opposed to spending taxpayer dollars for this item. He feels the Board is being used to shape the community to tolerate and pay for a life style that is not ethical.
Joseph Jarvis, 414 E 13th Street, urged the Board to support this proposal. He thanked Commissioner Gaughan for taking the initiative on this and feels this is an issue of fairness and a matter of losing quality employees to the private sector.
Natalya Lowther, 1490 n 1700 Road, gave an example of a family experience where her daughter needs to provide health care for her children and her partner's children. She feels this is a step toward putting families back together and getting people off public assistance.
John Moore, 1040 E 1800 Road, stated opposition for this proposed policy change. He feels everyone will be insured under the new Obama insurance program. He mentioned the City of Lawrence has not adopted this plan.
Stacy Simmons, County Employee, stated she supports the County proposal. She looks forward to being able to offer insurance to her partner. These changes also will help bring in qualified candidates for positions. She feels Douglas County is progressive when it comes to its policies.
Scott Criqui, 416 Alabama Street, stated he works as a human resource manager and within his own company offers benefits equally to all employees and asked the Board to support this proposal.
Flory stated he tried to do an objective with his legal background as opposed to the emotional aspect. In the policy area, Domestic Partnership is not a legally recognized relationship in Kansas. There are no legal responsibilities within the relationship, unlike a marriage. The parental relationship there is a responsibility. Historically we provide for those who have legal responsibility only. He feels providing coverage for domestic partners opens up problems with other developing moral and personal relationship obligations with other relationships that are slightly different yet just as equally compelling. Flory stated policy wise these are things that trouble him. Fiscal considerations, we have gone through many cuts to our budget due to lack of funds and we still don't know what additional emergency demands might be on our finances in this fiscal year. Projected revenues for 2012 don't look any better. Private companies are using their own money. We in government when making decisions are using other people's money. Flory stated, "I admit if I were in charge of my own business, I would look very seriously at a proposal like this as something I would want to do. But I'm not in this capacity as chairman of the Board of County Commissioners, running a private business. I'm not using my own money. I'm using tax payer dollars." Due to other relationship issues and the fiscal restraint put on the budget he would decline to vote for this plan at this time. In the event the Commission d s decide to approve this, he feels it would be fiscally responsible to consider this for the next insurance year 2012 to sort the potential fiscal impact.
Thellman asked Plinsky if we can't predict the cost of change in the program. Thellman asked her how comfortable she is in taking on this risk. Plinsky stated she is anticipating a rate increase for our health plan given our claims experience, not attributable to this change. The increase is due to past experience and what the actuarial says our potential expenses could be. The Health Insurance Reserve Fund is healthy and we do have stop loss coverage. She stated she feels comfortable in the financial stability of the plan. However, we do not know how the full impact the 2014 governmental changes will have on the budget.
Craig Weinaug, County Administrator, explained that any time you expand benefits, it d s permanently increase costs over time. Commissioner Flory is correct. We will have a better idea what expansion cost will be in a year. It's important to keep current revenues matched with the expenditures. You need to consider the increase in cost and be prepared to adjust it. Are we in good shape now so that we can absorb these1/2 Yes, but I don't want to absorb them. I want you to be realistic on how much you are increasing costs and be prepared to come with ways to cover them.
Flory asked if his prediction for 2012 budget is accurate. Weinaug replied it is. The Board will face difficult choices with the budget needing to shrink 1-3%. For the Health Insurance plan, we do have reserves, in fact better reserves than most local governments in Kansas. However, he advised the Board to make hard decisions when the revenues are cutting back so we never get in a position where we are in bad fiscal condition.
Thellman stated for some this is a priority and others a core value, a core value about fundamental fairness to all people, in the private or public sector. She stated she is proud of working for the County. It's a caring and thoughtful organization and she hopes fair. These are policies that need to be addressed so someone can be with their partner in a time of need or not be limited in that relationship based on domestic partner status. Thellman stated she is inclined to be supportive even knowing this is uncharted territory and will rely on staff to help us move forward.
Gaughan commented that he was approached by a department head about this issue. He regrets it has taken this long to get to this point. He feels this comes down to a fundamental issue of fairness. Employees should not be denied the same benefits other employees are afforded. This issue to him is black and white and a common sense issue. People have made tough choices about where they will work and we want to hire the most talented. If they are married we offer them benefits, if they have a domestic partner we don't. There is a cost to hiring less than the best. Gaughan stated he intends to support this and intends to extend other benefits as well.
It was the consensus of the Board with a majority to include Commissioner Thellman and Commissioner Gaughan, with Commissioner Flory in opposition, to direct staff to prepare the insurance renewal information to include Domestic Partnership as recommended by staff and bring to the Board for consideration at the May 4, 2011 meeting.
EXECUTIVE SESSION 04-27-11
At 5:30 p.m., Flory moved that the Board recess into executive session for 30 minutes (until 6:00 p.m.) for the purpose of consultation to discuss possible acquisition of property. Attendees include: Evan Ice, County Counselor; Craig Weinaug, County Administrator; Sarah Plinsky, Assistant County Administrator; and Keith Browning, Director of Public Works. Motion was seconded by Gaughan and carried 3-0.
At 6:00 p.m., Commissioner Flory extended the executive session for an additional 10 minutes (until 6:10 p.m.)
At 6:10 p.m., the Board returned to regular session. No action was taken.
ACCOUNTS PAYABLE 04-27-11
Flory moved to approve accounts payable in the amount of $233,115.66 to be paid on 04/28/11; and a wire transfer in the amount of $100,000.00 to be paid on 04/28/11, payroll in the amounts of $769,560.03 pad on 04/20/11 and $766,230.39 paid on 04/20/11; FICA in the amounts of $27,103.22 paid on 04/08/11 and $56,589.72 paid on 04/22/11; and KPERS in the amounts of $73,809.02 paid on 04/08/11 and $74,606.12 paid on 04/22/11. Motion was seconded by Gaughan and carried 3-0.
Gaughan moved to adjourn the meeting; Thellman seconded and the motion carried 3-0.
_______________________ _______________________
Jim Flory, Chair Mike Gaughan, Vice-Chair
ATTEST:
_______________________ ________________________
Jamie Shew, County Clerk Nancy Thellman, Member
Time and Date