20130625tcmTown of Prosper
Town Council Meeting
June 25, 2013
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Town of Prosper
Agenda Item 1.
Call to Order/Roll Call.
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Agenda Item 2.
Invocation, Pledge of Allegiance and
Pledge to the Texas Flag.
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Salute to the Texas Flag
Honor the Texas flag;
I pledge allegiance to thee,
Texas, one state under God,
one and indivisible.
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Agenda Item 3.
Announcements of upcoming events.
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Agenda Item 4.
Presentations
Presentation of a meritorious service medal to a Town of
Prosper police officer. (GM)
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Agenda Item 5.
Consent Agenda
(Items placed on the Consent Agenda are considered routine in
nature and are considered non-controversial.The Consent Agenda
can be acted upon in one motion.A majority vote of the Council is
required to remove any item for discussion and separate action.
Council members may vote nay on any single item without
comment and may submit written comments as part of the official
record .)
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Agenda Items 5a.-5b.
5a.Consider and act upon minutes from the following
Council meeting.(RB)
•Regular Meeting –June 11 ,2013
5b.Consider and act upon authorizing the Town
Manager to execute the amended Memorandum of
Understanding (MOU)by and between the Town of
Prosper,Texas,Police Department and the Prosper
Independent School District Police Department.
(GM)
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Agenda Item 5c.
5c.Consider and act upon an Assignment of
Development Agreement by and among PDC 380
Prosper,Ltd .,John E.Papagolos ,and Barry T.
Milton;and adopting Resolution No .13-41
authorizing the Town Manager to acknowledge
same.(HW)
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Agenda Item 6.
Citizen’s Comments
(The public is invited to address the Council on any topic.However,the Council is unable to discuss or take actiononanytopicnotlistedonthisagenda.Please complete a“Public Comments Form”and present it to the TownSecretarypriortothemeeting.)
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Regular Agenda
If you wish to address the Council during the regularagendaportionofthemeeting,please fill out a “SpeakerRequestForm”and present it to the Town Secretary priortothemeeting.Citizens wishing to address the CouncilforitemslistedaspublichearingswillberecognizedbytheMayor.Those wishing to speak on a non-publichearingrelateditemwillberecognizedonacase-by-casebasis,at the discretion of the Mayor and Town Council.
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Agenda Item 7.
Consider and act upon all matters incident and related to
the issuance and sale of the Town of Prosper,Texas,
General Obligation Refunding Bonds,Series 2013,
including the adoption of Ordinance No.13-42
authorizing the issuance of such Bonds,approving an
Official Statement,a Bond Purchase Agreement,a Paying
Agent/Registrar Agreement,and an engagement letter of
Bond Counsel.(HJ)
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Agenda Item 8.
Consider and act upon all matters incident and related to
the issuance and sale of the Town of Prosper,Texas,
Combination Tax and Surplus Revenue Certificates of
Obligation,Series 2013,including the adoption of
Ordinance No.13-43 authorizing the issuance of such
Certificates,approving an Official Statement,a Bond
Purchase Agreement,a Paying Agent/Registrar
Agreement,and an engagement letter of Bond Counsel.
(HJ)
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Agenda Item 9.
Consider and act upon authorizing the Town Manager to
accept in writing an Agreement by Independent Bank to be
bound by the terms and conditions of the Town’s Bank
Depository Services Request for Proposal.(HJ)
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Evaluation Criteria
Ability to perform / provide the required &
requested services;
Reputation of bidder and quality of services;
Cost of services;
Funds availability;
Interest paid on interest bearing accounts and
deposits;
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Evaluation Criteria Cont’d
Earnings credit calculation on accounts balances;
Completeness of bid and agreement to points outlined in
the RFP;
Convenience of locations;
Previous service relationship with Prosper; and
Financial strength and stability of the institution.
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Financial Impact
Estimated Monthly Fees $0
Monthly Average Earnings Credit Rate $0
Net Monthly Fees $0
Estimated Monthly Earnings $
14,531
24-Month Initial Term $
348,744
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Interest Rate Comparison
Organization Rate
Independent Bank (Current)1.0000%
Independent Bank (Proposed)0.7500%
Collin Bank CDs 0.4500%
TexStar 0.1125%
TexPool 0.0920%
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Agenda Item 10.
Consider and act upon authorizing the Town Manager to
enter into contracts for employee benefits with United
Healthcare for medical and dental group insurance and
Alliance Work Partners to include WellCoach resources
and services.(BR)
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Presented By:
Brent Weegar, MBA
Principal
IPS Advisors, Inc.
Health Plan –United Healthcare
Renewal: +29% Increase or $133,982
Renegotiated to +18.1% or $83,520
Best Market Alternative: Aetna +24%
Dental Plan –Ameritas
Renewal:+27% Increase or $6,885
Renegotiated to +27% Increase or $6,885 (no change)
Move UHC for -4.29% reduction
Ancillary Benefit Plan –Sun Life –Rate Guarantee (Except STD)
Basic Life –AD&D
Voluntary Life –AD&D
Short Term Disability –Renewed at Rate Pass
Long Term Disability
Claims %Δ Premium %Δ Loss Ratio
2007-2008 $3,183 n/a $4,607 n/a 69.1%
2008-2009 $2,723 -14.5%$3,450 -25.1%78.9%
2009-2010 $2,338 -14.1%$3,761 9.0%62.2%
2010-2011 $3,392 45.1%$4,318 14.8%78.6%
2011-2012 $3,611 6.4%$4,631 7.3%78.0%
2012-2013 $6,549 81.4%$5,431 17.3%120.6%
$3,183 $2,723 $2,338
$3,392 $3,611
$6,549
$4,607
$3,450 $3,761
$4,318 $4,631
$5,431
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Claims Premium
Per Capita Claims Vs. Per Capita
Premium By Year
$37,459.95
$6,220.19
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
$40,000.00
MERP BUY UP MERP CORE
Note: 2012 –2013 Annualized claims and annualized budget based off current months enrollment
Claims %Δ Budget %Δ
2008-2009 $42,363 n/a $40,770 n/a
2009-2010 $36,502 -13.8%$46,980 15.2%
2010-2011 $48,826 33.8%$48,950 4.2%
2011-2012 $46,533 -4.7%$44,050 -10.0%
2012-2013 $52,416 12.6%$57,201 29.9%
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Claims Budget
Health Plan:
Elimination of Buy Up Plan to offer dual plan with Core Plan and HSA Plan
Buy up plan participants make up 85.8% of all MERP claims. Buy Up plan out of Pocket cost of $950 is well beneath normative data.
Implementation of Compass Professional Health Services
Evaluate increased Annual Physical Incentive (Currently $25, estimated 57% participation)
Implementation of Tobacco Cessation
Dental:
Switching carriers from Americas to United Healthcare for reduction in price and receive a package discount on medical rate.
Ancillary Plan/STD:
Elimination of Employer Paid Short-Term Disability with Sun Life
Typically not provided as employer funded
Very low utilization rate
Town contributes $8,800 annually
Employee paid options with AFLAC
Assumes current Subsidy
levels and enrollment
Assumes All Buy-Up
employees enroll in Core
MERP and Core MERP
increased $5 for COMPASS
Town Financials Current
Re-Negotiated
Renewal Removal of Buy-Up
Medical Premium $472,520 $558,149 $552,851
MERP Cost $57,201 $67,799 $49,820
HSA Funding $21,750 $21,750 $21,750
Compass n/a n/a $5,280
Total Cost $551,471 $647,698 $629,701
% Change n/a 17.4%14.2%
$ Change n/a $96,226 $78,230
Employee Cost $147,649 $174,973 $155,158
% Change n/a 18.5%5.1%
$ Change n/a $27,324 $7,509
Town Cost $403,823 $472,725 $474,543
% Change n/a 17.1%17.5%
$ Change n/a $68,902 $70,720
% Town Cost 73%73%75%
Current Rates
Renewal Rates
(Assumes Elimination of Buy Up Strategy)
HSA Plan Core Plan Buy Up Plan
Employee Only $0.00 $25.00 $47.42
Employee + Spouse $185.89 $294.99 $382.82
Employee + Children $114.39 $191.15 $253.82
Employee + Family $300.28 $461.15 $589.21
HSA Plan
$ Δ from
Current Core Plan
$ Δ from
Current
Employee Only $0.00 $0.00 $34.40 $9.40
Employee + Spouse $223.03 $37.14 $359.31 $64.31
Employee + Children $137.24 $22.85 $236.26 $45.12
Employee + Family $360.27 $59.99 $556.18 $95.03
Other Lines of Coverage Financials
Current Renewal Recommendation
Dental Premium $25,306 $32,191 $24,613
Life $16,723 $16,723 $16,723
STD $8,881 $8,881 $0
LTD $11,630 $11,630 $11,630
Total $62,541 $69,426 $52,966
% Change n/a 11.0%-15.3%
$ Change n/a $6,885 -$9,575
Town Paid Only
Health Plan –United Healthcare
Removal of Buy Up plan is recommended.
Addition of Compass Professional Health Services is
recommended.
Wellness Program
It is recommended to continue the annual physical incentive and
increase it by $10 per month.
Add online Health Risk Assessment requirement for employee and
spouse, as applicable.
Implementation of a Tobacco cessation program is recommended
for 2013-2014 plan year to give employees the opportunity to
complete a on-line cessation program with Alliance Work Partners
for a cost of $0.10 PEPM. A Tobacco user surcharge is
recommended for the 2014-2015 plan year.
Dental Plan -Ameritas
Change carriers to United Healthcare for a decrease in cost and package
discounts on medical.
Ancillary Benefit Plan –Sun Life
Rates for Life, Optional Life and LTD are guaranteed until 8/1/14.
Rates for Short Term Disability renewed at rate pass
Removal of employer paid STD and implementation of employee paid STD
with AFLAC is recommended
Member Pays PPO Plan w/MERP
(Buy-Up)
HDHP w/ HAS
(Core)
Deductible -Individual $1,000 $3,000
Coinsurance Then 30% up to Out
of Pocket Maximum
Then 0%
Total Out of Pocket –
Individual
$2,200 –This
amount includes the
deductible
$4,000 –This amount
includes the
deductible
Maximum MERP / HSA
Reimbursement
Up to $2,800 $750
Preventive Care
PCP Copay
Specialist Copay
ER Copay
$0
$30
$60
$250
$0 no Deductible
Deductible Applies
Deductible Applies
Deductible Applies
Drug Copays $10 / $35 / $60
x 2.5 Mail
Deductible applies
then $15 / $35 / 60
x 3 Mail
Town of Prosper
Agenda Item 11.
Executive Session
Recess into Closed Session in compliance with Section 551.001 et.seq.Texas Government Code,as authorized by the Texas OpenMeetingsAct,to deliberate regarding:
11 a.Section 551.087.To discuss and consider economicdevelopmentincentives.
11 b.Section 551.072.To discuss and consider purchase,exchange,lease or value of real property formunicipalpurposesandallmattersincidentandrelatedthereto.
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Agenda Item 12.
Reconvene in Regular Session and take any action
necessary as a result of the Closed Session.
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Agenda Item 13.
Possibly direct Town staff to schedule topic(s)for
discussion at a future meeting.
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Agenda Item 14.
Adjourn
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