April 24, 2017 Employees Benefit Trust SPECIAL MEETING OF THE CITY OF NED.ERLAND.
EMPLOYEE BENEFITS TRUST
S:33 p_rrm. April 24, 2017
1. MEETING
The meeting was called to order at 5:33 p.m. by Chairperson R. A. Nugent at the
Nederland City Office Building, 207 N. 12T" Street, Nederland, Texas.
The following statement was posted:
"PIJRSUANT TO SECTION 30.07, PENAL COD.E (TRESPASS BY LICENSE FiOLD.ER
WITH AN OPENLY CARRIED. HANE)GUN), A PERSON LICENSEE) UND.ER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT COD.E (HAND.GIJN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HAND.GIJN THAT IS CARRIED.
OPENLY_"
2_ APPROVAL OF MINUTES
A motion was made by Trustee Neal and seconded by Trustee Austin to approve the
minutes of the April 11, 2016 meeting of the Employee Benefits Trust as written.
MOTION CARRIED._
Ayes: Chairperson Nugent, Trustees Austin, Neal, and Belaire.
Noes: None.
Absent: Vice-Chairman Albanese_
3_ VISION INSURANCE
Chris Duque, City Manager, stated the City began using VSP for voluntary vision
insurance in 2011. Currently there are 106 employees and 9 retirees who are enrolled
in this voluntary product. In 2013 N/SP's quote included a 4-year guaranteed rate
ending June 30, 2017. VSP's renewal presented a 14.68% rate increase. United
Healthcare submitted a quote that represented a 7.12% rate decrease with a 3-year
rate guarantee. The United Healthcare benefits closely reflect the existing benefits.
A motion was made by Trustee Austin and seconded by Trustee Neal to award a bid to
United Healthcare for employee vision insurance. MOTION CARRIED._
Ayes: Chairperson Nugent, Trustees Austin, Neal, and Belaire_
Noes: None.
Absent: Vice-Chairperson Albanese_
4_ D.ENTAL INSURANCE
Mr. Duque, advised the renewal rate with the city's current dental provider, United
Concordia, presented an increase of 6.62%. United Healthcare quoted rates that
resulted in a 9.96% decrease with a 2-year rate guarantee.
A motion was made by Trustee Austin and seconded by Trustee Neal to award a bid to
United Healthcare for employee dental insurance. MOTION CARRIED._
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Belaire.
Noes: None.
5. HEALTH INSURANCE
Mr. Duque, said the City received a renewal from the current health insurance provider,
TML Intergovernmental Employee Benefits Pool (TML-IEBP) of a proposed rate of 10%.
This is due to the City's loss ratio being 97%. The increase is also due to large claims
many of which are on-going and will continue into the next year. The City's insurance
consultant does not believe the City would receive any competitive bids on the market
due to the high loss ratio and high risk. Also going out for competitive bids would
eliminate the TML-IEBP renewal option. With increasing the deductible from $1,000
to $1,500 and keeping the $5,000 maximum out of pocket expense, the additional
cost to the City would be $23,458.32.
A motion was made by Trustee Austin and seconded by Trustee Neal to award a bid
for employee health insurance to TML Intergovernmental Employee Benefits Pool
adjusting the City's Standard Plan to include a $1,500 deductible and $5,000 maximum
out of pocket. The City's defined contribution would be $566.62 for employee only,
$955.80 for employee + spouse, $696.80 for employee + children and $1,188.80 for
employee + family as recommended by IPS and the City of Nederland Insurance
Committee. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, and Belaire.
Noes: None.
Absent: Vice-Chairperson Albanese.
6. ADJOURN
There being no further business a motion was made by Trustee Austin and seconded
by Trustee Neal to adjourn the meeting at 6:06 p.m. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, and Belaire.
Noes: None.
Absent: Vice-Chairperson Albanese.
R. A. uge t, irperson
City of Nederla Employee Benefits Trust
ATTEST:
Creig Belaire, Secretary
City of Nederland Employee Benefits Trust