VILLAGE OF ORLAND PARK

Transcription

1 VILLAGE OF ORLAND PARK 147 Ravinia Avenue Orland Park, IL Meeting Minutes Monday, 5:3 PM SPECIAL MEETING Village Hall Finance Committee Chairman Brad S. O'Halloran Trustees James V. Dodge and Patricia A. Gira Village Clerk David P. Maher

2 CALL TO ORDER/ROLL CALL The meeting was called to order at 5:32 PM. Present: APPOINT TEMPORARY CHAINMAN In the absence of, Trustee Dodge moved to appoint Trustee Gira as Temporary Chairman for this meeting. matter be APPROVED. The motion carried by the following vote: FY212 Liability Insurance Renewal - Approval The Horton Group has provided the Village with its renewal premium amounts for Fiscal Year 212 for all property and liability insurance policies, including Excess Worker's Compensation. A summary renewal packet is attached to this agenda item for reference purposes. Overall, the Village s FY212 liability and property premiums increased approximately $3,4 (.39%) as compared to FY211 premiums. All premiums remained constant with the exception of Excess Worker's Compensation. Although premium increases in the market are running at approximately 3%, the Village's premium increases were substantially less based on our good loss history, high deductible format and the years of continuity with our current carriers. The increase in the Village's Excess Worker's Compensation premium is applicable to NCCI base rate increases and medical inflation in Illinois (2nd highest in nation). The Village's deductible/retention amounts have remained constant, with the exception of Excess Worker s Compensation, which increased from $4, to $425,, a requirement of our carrier, Safety National. Mr. Michael Gleason from the Horton Group was present at tonight s Finance Committee to explain the renewal process and answer any questions. I move to recommend to the Board to approve the property and liability insurance carriers and premiums, in the amount of $867,79, as presented by the Horton Group. matter be RECOMMENDED FOR APPROVAL to the Board of Trustees. The motion carried by the following vote: VILLAGE OF ORLAND PARK Page 2 of 6

3 Village of Orland Park Employee Insurance Renewal FY212 The Horton Group has completed the market analysis on behalf of Village of Orland Park and has provided final recommendations for the renewal of the following benefit programs effective 1/1/12: Medical/RX Dental Vision Life and AD&D STD - ASO Flexible Spending Account (FSA) Employee Assistance Program (EAP) Crisis Response Program (Community) Virgin Health Miles (Wellness Initiative) CHC Biometric Screenings (Wellness Initiative) A summary of these recommended options was attached to the committee packet for reference. Based on the final analysis provided by The Horton Group, we recommend the following carriers/vendors associated with each benefit offering effective 1/1/12: Aetna (Medical/RX) Delta Dental of Illinois (Dental) Eye Med (Vision) Dearborn National (Life/AD&D) Guardian (STD - ASO) Allied Benefit Systems (Flexible Spending Account Administration) Metro Family Services (Employee Assistance Program) Metro Family Services (Crisis Response Program - Community) Virgin HealthMiles (Pedometer and Rewards Program - Wellness Initiative) CHC (Biometric Screenings - Wellness Initiative) The Horton Group (Benefit Consultant) A summary of the projected annual cost for each benefit offering is provided below. Our FY212 Medical/Rx insurance renewal proposal from Aetna represents a 12.2% increase over FY211. This increase is attributable to stop loss and VILLAGE OF ORLAND PARK Page 3 of 6

4 claims trends, as well as to replenish reserves. This proposal includes maintaining our current PPO (Gold and Silver), Managed Care (Select), and HDHP/HSA plan designs. Aetna continues to provide competitive pricing and has transitioned effectively as our new medical/rx carrier in 211. As a result, staff recommends to remain with Aetna as our Medical/RX carrier. Effective 1/1/212, non-union and IBEW employee premium contributions will be based on a percentage of the overall premium cost. Non-union and IBEW employee contributions are as follows for each medical plan offering: HDHP/HSA 3% Select 1% PPO (Silver) 1%. PPO (Gold) 24.5% (Employees will contribute the difference between the cost to the Village of the PPO (Silver) and the current PPO (Gold) which equates to approximately 24.5% for the current PPO (Gold). In addition, non-union and IBEW employees and their spouses who do not participate in the free biometric health screening, the employee s monthly medical insurance premium share will be increased by 1% of the full employee only premium rate of the plan in which they participate. Negotiations with the other bargaining groups are ongoing. Summary of Expected Annual Costs: Medical/Rx: $ 5,834, (12.2% overall increase 1% fixed cost & claims trend 2% replenish reserves) Dental: $ 284, (2.7% increase to administrative fees, 9.3% claims trend decrease) Vision: $ 38,845.8 (% fee increase) Life and AD&D: $ 72, (% fee increase) FSA: $ 2,76. (% fee increase, assumes 4 participants at 5.75 per employee) STD - ASO $ 2,331. (% fee increase) Virgin Health Miles $ 27,846. (Current program with 2% participation growth & fee restructure 7/1/212) CHC Wellness $ 2,9. (assumes 22 participants at $95 - $1 increase per screening, and increased participation by 8 to account for the spouses of non-union and IBEW employees and increased participation) EAP $ 19,5. (same as 211) Crisis Response $ 3,. (same as 211) Horton Retainer $ 57,5. (quarterly payments of $14,375) (same as 211) Mr. Michael Wojcik from the Horton Group was present at the Special Meeting of the Finance Committee to explain the renewal process and answer any questions. VILLAGE OF ORLAND PARK Page 4 of 6

5 I move to recommend to the Village Board to approve the recommended carriers and vendors and associated expenses with each effective January 1, 212. And To retain the Horton Group s services at the recommended rate for FY212. matter be RECOMMENDED FOR APPROVAL to the Board of Trustees. The motion carried by the following vote: Fifth Third Bank Loan Commitment - Approval Director of Finance Annmarie Mampe reported as previously approved by the Board, Fifth Third Bank will be providing financing of the Ninety 7 Fifty on the Park project in the form of a three (3) year adjustable rate Revolving Line of Credit, converting to a seven (7) year adjustable rate Term Loan. Attached to the Committee packet is the Loan Commitment, and accompanying Summary of Terms and Conditions, formalized the Village s agreement with Fifth Third Bank and outlines the details of our agreement. The following is a summary of the major terms and conditions: Credit Facility - Three (3) Year Taxable General Obligation Revolving Line of Credit (RLOC), converting to a seven (7) year Term Loan, up to a maximum amount of $3M. Interest Rate applicable to RLOC is 3-day LIBOR plus 9bps; interest rate applicable to Term Loan is 3-day LIBOR plus 1bps or 1-year Treasury plus 175bps. The Term Loan will be amortized mortgage style with level debt service payments required. If at conversion to Term Loan, LIBOR exceeds 1%, Village must utilize an interest rate management agreement to synthetically fix the rate. Security - General Obligation of the Village, secured by its Full Faith and Credit. Village to reserve a portion (the lesser of $3M or $65M minus the amount of bonds issued against the Master Bond Ordinance) of the issuance capacity provided by the Master Bond Ordinance adopted on September 19, 211, providing for the issuance of up to $65,, in General Obligation Bonds. Reserve Fund - The Village will establish a Reserve Fund at Fifth Third Bank, utilizing general cash balances of the Village, in the amount of $1.5M. In addition, the Village will make monthly deposits into this fund for the payment of debt service on the outstanding RLOC or Term Loan. If at any time the reserve falls VILLAGE OF ORLAND PARK Page 5 of 6

6 below the $1.5M balance, the Village has sixty (6) days to replenish the reserve. Interest earned on the Reserve Fund balance will be maintained within the Fund and can be utilized to offset required monthly deposit amounts. Fees - Commitment Fee in the total amount of $5K, $1K due upon acceptance and signing of Commitment, $15K due within one week of signing RDA, $25K due at closing. Payment of all expenses related to document drafting and closing. Exit Fee of $2K if the RLOC is not converted to a Term Loan. Extension of Banking Services - Village agrees to extend banking services for three (3) years, provided that Fifth Third continues to offer industry standard technologies and services. Other - Opinion of Bond Counsel that Credit Facility is secured on a parity basis with other Village general obligation debt. Evidence that the Village has not received notice of any adverse change in its credit rating. I move to recommend to the Board to approve execution of the Fifth Third Loan Commitment and to grant authority to the Mayor, Village Clerk and applicable Village staff to execute any and all loan documents necessary to finalize the execution of this Commitment, including but not limited to, a Note and Loan Agreement matter be RECOMMENDED FOR APPROVAL to the Board of Trustees. The motion carried by the following vote: ADJOURNMENT - 5:37 PM matter be ADJOURNED. The motion carried by the following vote: /nm APPROVED: November 21, 211 Respectfully Submitted, /s/ David P. Maher David P. Maher, Village Clerk VILLAGE OF ORLAND PARK Page 6 of 6