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20190924
Welcome to the September 24, 2019, Prosper Town Council Meeting. Call to Order/Roll Call. Invocation, Pledge of Allegiance, and Pledge to the Texas Flag. Pledge to the Texas Flag Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible. Announcements of recent and upcoming events. Presentations. Agenda Item 1. Presentation of a Flag Certificate by members of the Edmund Terrell Chapter of the Sons of the American Revolution. (RB) Presentations. Agenda Item 2. Presentation of a Proclamation to members of the Prosper Police and Fire Departments declaring October 1, 2019, as National Night Out. (RB) Agenda Briefing Questions About Items Listed on the Regular Meeting Agenda. Discussion Items. Agenda Item 3. Discussion on Downtown Empowerment Zones and Architectural Standards. (JW) Neighborhood Empowerment Zone (NEZ) Authorization & Purpose o Authorized by Chapter 378 of the Texas Local Government Code o Must Satisfy the Requirements of the Texas Tax Code, which Includes the Requirement that Incentives for Residential Development be for the Purpose of Providing Affordable Housing o Incentives for Non-Residential Development can be used to Promote Economic Development Adopted November, 2009 In Effect for 10 Years Adopted January, 2014 In Effect for 10 Years Current Neighborhood Empowerment Zone (NEZ) Incentives o Automatic Waiver of 75% of Building Permit Fees including Electrical, Plumbing, Mechanical, and Certificate of Occupancy o Automatic Waiver of 75% of Roadway, Water, and Wastewater Impact Fees o May abate 100% of Municipal Property Taxes for 10 years o May refund 60% of Municipal Sales Taxes for 10 years Neighborhood Empowerment Zone (NEZ) Incentive Examples New 7,300 sq. ft. Office Building Fee Current Amount With NEZ Reduction Building Permit $5,285.00 $1,321.00 Impact Fees $35,047.00 $8,762.00 Subtotal $40,332.00 $10,083.00 Optional 10-year Town Property Tax Abatement $6,094.00/yr $60,940.00 savings Neighborhood Empowerment Zone (NEZ) Proposal o Renew NEZ No. 1 for Non-Residential Development o Repeal NEZ No. 2 for Residential Areas due to State Law-Imposed Limitations o In response to HB 2439 (Pre-empting Building Materials) Voluntary Agreement between Property Owner/Developer and the Town to Meet Development Standards to Receive Incentives Property Tax Abatement and Sales Tax Refund on case-by-case consideration Proposed Neighborhood Empowerment Zone No. 1 Expanded Area –But Incentives Limited to Nonresidential Uses Downtown Office (DTO) Zoning District Permits up to 90% Hardie-Board Façade –Continued Allowance? Downtown Core Retail Area Proposed Architectural Standards/Images Heavier Materials BelowUndulating Roof Line Operable Windows/Overhead Doors Awnings and Window Areas Cornices Roof Top Dining Balconies over Sidewalk Consideration of Unique Design/Alternate Materials on a Case -by-Case Basis Neighborhood Empowerment Zone (NEZ) Questions? Agenda Item 4. Discussion on the Downtown Open Space. (DR) Town Council Briefing -September 24, 2019 PROSPER TOWN HALL OPEN SPACE ENHANCEMENTS Meeting Overview •Overview-Downtown Open Space Best Practices •Staff Workshop Overview •Existing Downtown Improvements •Overview of Alternative Scenarios •Next Steps Overview –Downtown Open Space Best Practices Function of Urban Open Space •Provides space for physical activity / exercise •Encourages social interaction •Supports cultural activities •Provides needed space for rest and restitution Outcomes of Urban Open Space Multiple studies occurring over many decades have cited significant benefits of open space on communities and individuals including: •Physical Health Benefits •Psychological Health Benefits •Social Benefits •Economic Benefits Outcomes of Urban Open Space Klyde Warren Park Threats to Urban Green Space •Urban green spaces often become threatened in an environment where there is a shortage of housing and land available for development; •Urban green space costs money to maintain; •Where green space is perceived as being run down, it may be at greater risk of being developed rather than refurbished; •Fear of crime and, to a much lesser extent crime itself, can deter people, not just vulnerable groups, from using even good-quality public spaces. Staff Workshop Overview Framework Plan Staff Workshop Overview •Assessed existing Publicly Owned Parcels •Staff provided overview of existing/future community events and activities in Old Town •Identified two scenarios for conceptual development Existing Old Town Improvements Existing Old Town Improvements •Enhanced pedestrian areas along Main Street and Broadway have significantly improved the corridor, creating a much stronger sense of place •Street trees and wider sidewalks make the area safer and more inviting for pedestrians •Prosper’s new Town Hall is a centerpiece of Old Town, hosting major community events such as Prosper Downtown Live Existing Aerial Existing Old Town Improvements Scenario 1 Scenario 1 •New connections between Broadway and Fifth street will enhance walkability and accessibility from surrounding neighborhoods •Streetscape improvements will allow Broadway to be used as a festival street for special events •Improvements to the alleyway north of Town Hall can be leveraged to spark development on adjacent parcels •City owned parcels along main street can be used for a new pocket park to promote development on adjacent parcels •Open Space south of Town Hall will serve as a Town Green for community events •Parcels adjacent to the Green can be developed as restaurant pads •Street enhancements to Crocket and Main St. will connect the Green and the rest of Old Town to the Gates of Prosper development to the south Scenario 1 Scenario 2 Scenario 2 •New connections between Broadway and Fifth street will enhance walkability and accessibility from surrounding neighborhoods •Streetscape improvements will allow Broadway and Main St. to be used as a festival street for special events •A new parking deck adjacent to the existing lot will allow a portion of the existing parking to become a Town Green, supporting the festival street concept along Main St •Alleyway improvements will enhance connectivity between the new Town Green, Broadway, and surrounding neighborhoods. •The open space south of Prosper’s Town Hall will initially become a playground, which can be converted to parking at a later date to offset parking that is lost to the North when the Town Green is developed Scenario 2 Next Steps •Consultant team will present Alternative Scenarios to EDC •Consultant team will incorporate feedback from Council and EDC and prepare a preferred scenario Master Plan for Council briefing Town Council Briefing -September 24, 2019 PROSPER TOWN HALL OPEN SPACE ENHANCEMENTS Consent Agenda Items placed on the Consent Agenda are considered routine in nature and non-controversial. The Consent Agenda can be acted upon in one motion. Items may be removed from the Consent Agenda by the request of Council Members or staff. Agenda Item 5. Consider and act upon the minutes from the September 5, 2019, Special Called Town Council Meeting. (RB) Agenda Item 6. Consider and act upon the minutes from the September 10, 2019, Town Council Meeting. (RB) Agenda Item 7. Receive the July Financial Report. (KN) Agenda Item 8. Consider and act upon authorizing the Town Manager to execute an Interlocal Agreement between the North Central Texas Emergency Communication District and the Town of Prosper for regional 9-1-1 service. (DK) Agenda Item 9. Consider and act upon a resolution of the Town Council of the Town of Prosper, Texas, authorizing the Town to submit a grant application to the Office of the Governor (OOG) for Prosper Police Department SWAT equipment enhancement grant and accept the award. (KB) Agenda Item 10. Consider and act upon authorizing the Town Manager to execute a Second Amended Annexation Agreement between OM Frontier Estates, LLC. and the Town of Prosper, Texas, regarding a 22.05±acre property, generally located on the south side of Frontier Parkway, west of Custer Road. (AG) Agenda Item 11. Consider and act upon authorizing the Town Manager to execute a Second Amended Annexation Agreement between Harold and Maureen Patin and the Town of Prosper, Texas, regarding a 10.59±acre property, generally located on the south side of Prosper Trail, west of Custer Road. (AG) Agenda Item 12. Consider and act upon authorizing the Town Manager to execute a Second Amended Annexation Agreement between Y-C Nurseries, Inc. and the Town of Prosper, Texas, regarding a 12.38±acre property, generally located on the north side of US 380, west of Dallas Parkway. (AG) Agenda Item 13. Consider and act upon an ordinance rezoning 11.0± acres from Planned Development-65 (PD-65) to Planned Development-98 (PD-98), located on the south side of future Prairie Drive, west of future Mahard Drive, to facilitate the development of a Retirement Housing Complex, consisting of one (1) and three (3) story buildings. (Z19-0005). (AG) Agenda Item 14. Consider and act upon an ordinance rezoning 5.7± acres from Planned Development-65 (PD-65) to Office (O), located on the southwest corner of future Prairie Drive and Mahard Parkway. (Z19-0006). (AG) Agenda Item 15. Consider and act upon an ordinance rezoning 16.1±acres of Planned Development-43 (PD-43) and Specific Use Permit-9 (SUP-9), and 3.3±acres of Planned Development-65 (PD-65) to Planned Development (PD-99), located on the northwest corner of MahardParkway and US 380, to facilitate the development of a Major Automotive Repair Facility (Toyota/Penske). (Z19-0007). (AG) Agenda Item 16. Consider and act upon authorizing the Town Manager to execute a Development Agreement between Prosper Villages at Legacy, LLC, and the Town of Prosper, Texas, related to the Prosper Center development. (AG) Agenda Item 17. Consider and act upon whether to direct staff to submit a written notice of appeal on behalf of the Town Council to the Development Services Department, pursuant to Chapter 4, Section 1.5(C)(7) and 1.6(B)(7) of the Town’s Zoning Ordinance, regarding action taken by the Planning & Zoning Commission on any Site Plan or Preliminary Site Plan. (AG) Citizen Comments The public is invited to address the Council on any topic. However, the Council is unable to discuss or take action on any topic not listed on this agenda. Please complete a “Public Meeting Appearance Card” and present it to the Town Secretary prior to the meeting. Regular Agenda If you wish to address the Council, please fill out a “Public Meeting Appearance Card” and present it to the Town Secretary, preferably before the meeting begins. Pursuant to Section 551.007 of the Texas Government Code, individuals wishing to address the Council for items listed as public hearings will be recognized when the public hearing is opened. For individuals wishing to speak on a non-public hearing item, they may either address the Council during the Citizen Comments portion of the meeting or when the item is considered by the Town Council. Items for Individual Consideration Agenda Item 18. Presentation of service plan and first Public Hearing to consider the voluntary annexation of 6.8±acres, generally located 1,000±feet south of First Street, 4,000±feet west of Custer Road. (A19-0001). (AG) Agenda Item 19. Conduct a Public Hearing, and consider and act upon a request to rezone 0.2±acres from Downtown Office (DTO) to Planned Development-Downtown Office (PD- DTO), located on the northeast corner of Church Street and Second Street, to allow for the development of an Assisted Living Facility. (Z19-0013). (AG) Agenda Item 20. Consider and act upon a resolution of the Town Council of the Town of Prosper, Texas, accepting grant funds from the U.S. Department of Homeland Security for grant funding under the 2016 Staffing for Adequate Fire and Emergency Response (SAFER) grant program to create six (6) new, paid, full time, firefighter positions (SB) Discussion Items. Staffing for Adequate Fire and Emergency Response (SAFER) grant award Fiscal year 2020 Fiscal year 2021 Fiscal year 2022 Totals: FY20-FY22 Federal Share-75%Federal Share-75%Federal Share-35%Federal $372,672.00 $372,672.00 $173,913.60 $919,257.60 Local Share -25%Local Share -25%Local Share -65%Local $124,224.00 $124,224.00 $322,982.40 $571,430.04 Agenda Item 21. Discussion of Amendments to the FY 2019-2020 Budget. (CS) Firefighter Positions and SAFER Grant Amend budget to add General Fund expenditures for 6 firefighter positions at $791,689 (includes $38,912 one-time costs) Amend budget to add $372,672 in General Fund revenue for SAFER Grant 99 Fund Year 1 Year 2 Cumulative Year 3 Cumulative Total Total general 127,672$ 255,334$ 383,006$ Fire SPD 9,555$ 19,110$ 28,665$ Police SPD 9,555$ 19,110$ 28,665$ Water 19,903$ 39,806$ 59,709$ Stormwater 360$ 720$ 1,080$ Subtotal 167,045$ 334,080$ 501,125$ 1,002,250$ Total general 416,072$ 416,072$ 416,072$ Fire SPD 27,625$ 27,625$ 27,625$ Police SPD 28,506$ 28,506$ 28,506$ Water 61,233$ 61,233$ 61,233$ Stormwater 1,081$ 1,081$ 1,081$ Subtotal 534,517$ 534,517$ 534,517$ 1,603,551$ Net Difference 367,472$ 200,437$ 33,392$ 601,301$ Net by Fund Total general 288,400$ 160,738$ 33,066$ Fire SPD 18,070$ 8,515$ (1,040)$ Police SPD 18,951$ 9,396$ (159)$ Water 41,330$ 21,427$ 1,524$ Stormwater 721$ 361$ 1$ 367,472$ 200,437$ 33,392$ 601,301$ SAFER Revenue (372,672)$ (372,672)$ (173,914)$ (919,258)$ Net Impact (5,200)$ (172,235)$ (140,522)$ (317,957)$ Compensation Increase (3-year vs 1-year) 101 Year 1 Year 2 Cumulative Year 3 Cumulative Total 3- Year 127,672$ 255,334$ 383,006$ 1-Year 416,072$ 416,072$ 416,072$ Increase 288,400$ 160,738$ 33,066$ 482,204$ SAFER Revenue (372,672)$ (372,672)$ (173,914)$ (919,258)$ Net Impact (84,272)$ (211,934)$ (140,848)$ (437,054)$ Compensation Increase (3-year vs 1-year) (General Fund Only) Fire Brush Truck Supplemental Request Cost -$108,969 Purpose -The purpose of the request to is fund the shortfall in the VERF to replace the brush truck three years prior to it's original fifteen year cycle. The current price is $167,000 and is expected to increase in the Fall to $172,000. The price estimated includes the expected price increase in the Fall. The VERF shows $63,031 as of September 2019. Benefits -We would avoid paying expensive repair bills. The main benefit would be to have a brush truck that is dependable without fear of failure of the pump. We have requested through the VERF to change the schedule to a ten year cycle instead of the fifteen previously setup based on repair costs and recommendations from the manufacturer. 102 Fire Brush Truck Supplemental Request Consequences -Without replacing the truck we run the risk of having to take the brush truck out of service or sending the truck back to the manufacturer in Kansas to have a rear pump motor replaced. The estimated expense would be $15-20,000. In addition, an engine leak was noticed by Bob Tomes Ford at a recent service visit. Two years ago a similar leak cost $3,700. It would cost $200-400 to diagnose due to the fact that much of the top motor components have to be removed to get to the motor. VERF Policy In the event that a user department has not contributed enough over the life of an item to cover the cost of its replacement, the difference in funding may be derived from: a.Savings on other items being replaced according to this policy in the same department; and/or b.Funds available from total VERF balance of contributions made by the department, with the difference to be accounted for during the annual review; and/or c.Funds available in the department’s operating budget, which shall be transferred to the VERF to fund the entire replacement cost. 103 Medical Plans 104 PPO Plan Designs 105 Prosper Public Sector All Enrollment % offer a PPO -77%67% % of EE's Enrolled in a PPO 27%64%57% Benefits Individual Deductible $1,500 $1,500 $1,500 Family Deductible $4,500 $3,000 $3,000 Individual MOOP $5,500 $4,750 $4,625 Family MOOP $10,200 $10,000 $10,000 Coinsurance 80%80%80% PCP Visit Copay $30 $25 $25 Specialist Visit Copay $60 $50 $50 Emergency Room $200 $250 $250 Urgent Care $75 $50 $50 Rx copays $10 | $40 | $60 | $250 $10 | $35 | $60 | $100 $10 | $35 | $60 | $125 Mail Order 3x retail 2.5x retail 2.5x retail Actuarial Value -0.785 0.784 0%5%10%15%20%25%30% $0 $1 - $499 $500 - $999 $1,000 - $1,499 $1,500 - $2,000 $2,000 - $2,499 $2,500 - $2,999 $3,000 - $3,499 $3,500+ Individual In Network Deductible Public Sector (City, County, Schools)All 0% 10% 20% 30% 40% $0 $1 - 1,999 $2,000 - $3,999 $4,000 - $5,999 $6,000 - $7,999 $8,000 - $9,999 $10,000 + Individual In Network Max OOP Public Sector (City, County, Schools)All 0% 20% 40% 60% $0 $1 - 9 $10 - 19 $20 - 29 $30 - 39 $40 - 49 $50 +Ded + Coins PCP Copay per Visit Public Sector (City, County, Schools)All PPO Plan Premium and Contributions 106 0%5%10%15%20%25%30%35%40% $1 - 4,999 $5,000 - $7,499 $7,500 - $9,999 $10,000 - $12,499 $12,500 - $14,999 $15,000 - $17,499 $17,500 - $19,999 $20,000 + Average Plan Premium PEPY Public Sector (City, County, Schools)All 0% 20% 40% 60% 0%1% - 9%10% - 19%20% - 29%30% - 39%40% - 49%50% + Cost for EE Only Coverage as a % of Premium Public Sector (City, County, Schools)All 0% 20% 40% 60% 0%1% - 9%10% - 19%20% - 29%30% - 39%40% - 49%50% + Cost for Family Coverage as a % of Premium Public Sector (City, County, Schools)All Prosper Public Sector All Plan Cost Average PEPY $12,248 $12,774 $10,999 Plan Cost -Monthly Rate Employee Only $577 $673 $600 Employee + Spouse $1,318 $1,318 $1,270 Employee + Children $1,033 $1,235 $1,110 Family $1,724 $1,866 $1,777 Average Employee Cost - Monthly Contribution Employee Only Contribution $92 $104 $155 Employee + Spouse Contribution $493 $397 $553 Employee + Children Contribution $341 $335 $463 Family Contribution $736 $565 $806 Contribution % of Premium Employee Only 16%15%26% Employee + Spouse 37%30%43% Employee + Children 33%27%42% Family 43%30%45% % No Contribution Required -EE Only -17%8% HSA Plan Designs 107 Prosper Public Sector All Enrollment % of EE's enrolled in a CDHP -35%46% % of EE's enrolled in an HSA 73%16%21% Benefits Individual Deductible $3,000 $3,000 $2,750 Family Deductible $6,000 $6,000 $5,550 Coinsurance 100%100%80% Individual MOOP $3,000 $4,000 $4,700 Family MOOP $6,000 $8,000 $8,500 HSA Funding % Contributing -87%55% EE Account $750 $750 $500 Family Account $1,500 $1,200 $1,000 Actuarial Value w/o funding -0.744 0.698 Actuarial Value w/ funding -0.921 0.846 0% 20% 40% 60% $0 - 249 $250 - 499 $500 - 749 $750 - 999 $1,000 - 1,249 $1,250 + HSA Employer Funding -Individual Public Sector (City, County, Schools) - Individual All - Individual 0% 20% 40% 60% $0 - 249 $250 - 499 $500 - 749 $750 - 999 $1,000 - 1,249 $1,250 + HSA Employer Funding -Family Public Sector (City, County, Schools) - Family All - Family 0%5%10%15%20%25%30% $1 - $1499 $1,500 - $1,999 $2,000 - $2,499 $2,500 - $3,000 $3,000 - $3,499 $3,500 - $3,999 $4,000 - $4,499 $4,500+ Individual In Network Deductible Public Sector (City, County, Schools)All 0% 20% 40% 60% $1 - 1,999 $2,000 - $3,999 $4,000 - $4,999 $5,000 - $5,999 $6,000 - $7,900 Individual In Network Max OOP Public Sector (City, County, Schools)All HSA Plan Premium and Contributions 108 0%5%10%15%20%25%30%35% $1 - 4,999 $5,000 - $7,499 $7,500 - $9,999 $10,000 - $12,499 $12,500 - $14,999 $15,000 - $17,499 $17,500 - $19,999 $20,000 + Average Plan Premium PEPY Public Sector (City, County, Schools)All 0% 20% 40% 60% 0%1% - 9%10% - 19%20% - 29%30% - 39%40% - 49%50% + Cost for EE Only Coverage as a % of Premium Public Sector (City, County, Schools)All 0% 20% 40% 0%1% - 9%10% - 19%20% - 29%30% - 39%40% - 49%50% + Cost for Family Coverage as a % of Premium Public Sector (City, County, Schools)All Prosper Public Sector All Plan Cost Average PEPY $9,605 $10,363 $9,591 Plan Cost -Monthly Rate Employee Only $558 $582 $500 Employee + Spouse $1,257 $1,115 $1,059 Employee + Children $988 $968 $912 Family $1,687 $1,499 $1,502 Average Employee Cost - Monthly Contribution Employee Only Contribution $39 $78 $96 Employee + Spouse Contribution $289 $344 $391 Employee + Children Contribution $193 $276 $306 Family Contribution $442 $516 $586 Contribution % of Premium Employee Only 8%13%19% Employee + Spouse 30%31%37% Employee + Children 24%29%34% Family 36%34%39% % No Contribution Required -EE Only -20%12% McGriff Benchmarking –Dallas Public Sector 109 13 McGriff-Dallas Public Sector clients were reviewed. Reviewed all clients most recent 31 months of Med/Rx claims weighted average of $899.53 PEPM for all clients combined on 2019 Calendar Year Projections. ›The PEPM ranged from $668.08 to $1,283.87 Town of Prosper ranked the lowest of all clients reviewed at $668.08 PEPM. Looking at Town of Prosper claims on most recent 12 months of claims for 2019 takes us to $710.19 PEPM, still ranking us at the lower end on costs of the clients surveyed. The Town staff has budgeted a conservative $753.03 PEPM for FY 2019-20. This is based on the most recent 12 months of claims. ›The FY 2019-20 budget has no increase for employee or Town contributions. Disclaimer 110 This presentation may provide information concerning relevant statutes, rules or regulations and is available for internal use only and under appropriate circumstances, for external use. The presentation is representative of the services provided by McGriff Insurance Services, McGriff Seibels & Williams or any affiliates. Information presented here is relevant with respect to current services and current statutes, rules or regulations as of the date of this presentation. Future rules may include clarifications, technical corrections or guidance on complex issues and as required. Moreover, these may change the content of the information presented or alter the answers to questions posed. In particular, it should be noted that guidance on many aspects of the Affordable Care Act (ACA) are outstanding and new guidance may be forthcoming. New guidance may have an impact as well on governing benefits legislation such as ERISA and the compliance services our affiliates provide. Our presentations are intended to provide general information. This does not constitute legal, tax or medical advice. To ensure compliance with IRS requirements, any discussion of U.S. tax matters contained herein is not intended and cannot be used to avoid IRS penalties. This material is therefore for informational purposes only. Employee benefit, retirement plan, health care insurance and compliance decisions should be made only after thorough and careful consideration and in the case of clients, only after discussion with clients’ own counsel, including tax counsel, or tax or other advisors. Compliance decisions are the sole responsibility and obligation of the client. © 2019, McGriff Insurance Services, Inc. All rights reserved. McGriffInsurance.com Agenda Item 22. Consider and act upon awarding RFP No. 2019-63-A for ASO Medical and Captive Benefits to UMR, Inc., a subsidiary of United Healthcare, effective January 1, 2020 and authorizing the Town Manager to execute all documents for the same. (KS) McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Recommendations for RFP #2019-63-A and RFP #2019-61-A Presented by: Kala Smith, Director, Human Resources Lance Pendley, Senior Vice President –McGriff, Seibels & Williams McGRIFF, SEIBELS & WILLIAMS, INC. McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Background •McGriff and Action Pharmaceutical Consulting (APC) are presenting the following presentation and recommendation of RFP’s: •RFP #2019-63-A ASO (Administrative Services Only) Medical and Captive Benefits •RFP #2019-61-A Pharmacy Benefit Management Services (PBM) Only McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-63-A •Town of Prosper received a total of seven bids for this RFP. There were six submissions for ASO Services and one for Captive Services. •ASO Bids Received Aetna Blue Cross Blue Shield of Texas (Incumbent) Cigna IBA Maestro UMR (subsidiary of United Healthcare) •Captive Bid Received Bev Cap McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-63-A •A Town evaluation committee, with assistance from McGriff, scored all proposals using the listed evaluation standards and evaluation criteria laid out in the RFP Scope of Services, Coverage, Professional Competence –30% Cost of Services, Network Discounts, Rate Guarantee –40% Reporting Capabilities, Financial Resources –15% References and Experience with Similar Clients, Qualifications –15% •Evaluation Standards Administrative Fees Provider Disruption Claims Repricing Wellness Program Offerings Administrative Functionality Industry Experience •Best and Final requests were sent to Blue Cross Blue Shield of Texas and UMR (subsidiary of United Healthcare) based on recommendations from the Benefits Subcommittee meeting on 8/20/2019. •Information provided to Benefits Committee attached to Agenda Item. McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-63-A ASO Administrator BCBS Current Plan (Carve In) BCBS Renewal Plan (Carve In) Aetna Proposed Plan (Carve In) Cigna Proposed Plan (Carve In) IBA Proposed Plan (Carve Out) Maestro Health Proposed Plan (Carve Out) UMR Proposed Plan (Carve Out) Bev Cap Proposed Plan (Carve In) Bev Cap Proposed Plan (Carve Out) PBM Administrator Prime RX Prime RX CVS Focused 90 CVS Value ProAct RX ProAct RX ProAct RX Envision Rx ProAct RX Network BlueChoice PPO Network BlueChoice PPO Network Aetna Open Access Managed Choice Network Open Access Plus Network Cigna PPO Network Cigna PPO Network UHC Choice Plus Network Aetna PPO Aetna PPO Annual ASO Admin. Fees (186)$76,892.40 $75,039.84 $47,898.72 $75,330.00 $99,100.80 $116,421.12 $126,799.92 $216,347.76 $216,347.76 Medical Repricing Claims Estimate $1,039,230.20 $1,093,974.92 $1,176,023.04 $1,113,557.07 $1,138,171.51 $1,138,171.51 $1,118,370.56 $1,176,023.04 $1,176,023.04 RX Claims $489,938.47 $529,133.55 $523,842.22 $539,716.22 $521,196.55 $521,196.55 $521,196.55 $529,133.55 $529,133.55 Projected Rebates / APC Fee $10,060.00 $10,060.00 $10,060.00 ($55,800.00)($126,219.00)($126,219.00)($126,219.00)$10,060.00 ($126,219.00) Run Out Admin Claims --$11,606.40 $11,606.40 $11,606.40 $11,606.40 $11,606.40 $11,606.40 $11,606.40 Rate Guarantee 1 year- Until 12/31/2019 1 year- Until 12/31/2020 3 years- Until 12/31/2022 1 year- Until 12/31/2020* 2 years- Until 12/31/2021 3 years- Until 12/31/2022 2 years- Until 12/31/2021 1 year- Until 12/31/2020 1 year- Until 12/31/2020 Estimated Total Annual Cost $1,616,121.07 $1,708,208.31 $1,769,430.38 $1,684,409.69 $1,643,856.26 $1,661,176.58 $1,651,754.43 $1,943,170.75 $1,806,891.75 $ Combined Difference over Current $92,087.24 $153,309.30 $68,288.62 $27,735.18 $45,055.50 $35,633.36 $327,049.68 $190,770.68 Combined Percent over Current (Total)5.70%9.49%4.23%1.72%2.79%2.20%20.24%11.80% $ Combined Difference over Renewal $61,222.06 ($23,798.62)($64,352.06)($47,031.74)($56,453.88)$234,962.44 $98,683.44 Combined Percent over Renewal (Total)3.58%-1.39%-3.77%-2.75%-3.30%13.75%5.78% McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-61-A •Town of Prosper received a total of eight bids for this RFP. There were four submissions for “Carve Out” Services and four for “Carve In” Services. Carve In Services, meaning the ASO Medical vendor would control the Pharmacy contract and rebates. •“Carve Out” Bids Received Capital RX Heritage Health Solutions ProAct WellDyne •“Carve In” Bids Received Aetna Blue Cross Blue Shield of Texas Cigna UMR McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-61-A •A Town evaluation committee, with assistance from McGriff and APC, scored all proposals using the listed evaluation standards and evaluation criteria laid out in the RFP Scope of Services, Coverage, Professional Competence –30% Cost of Services, Network Discounts, Rate Guarantee –40% Reporting Capabilities, Financial Resources –15% References and Experience with Similar Clients, Qualifications –15% •Evaluation Standards Administrative Fees Pharmaceutical Disruption Administrative Functionality Industry Experience •Best and Final requests were sent to Blue Cross Blue Shield of Texas (Prime RX) and ProAct based on recommendations from the Benefits Subcommittee meeting on 8/20/2019. •Information provided to Benefits Committee attached to Agenda Item. McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. RFP #2019-61-A McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Best and Final ASO Administrator BCBS Current Plan (Carve In) BCBS Renewal Plan (Carve In) BCBS BAFO 1 Renewal Plan (Carve In) BCBS BAFO 2 Renewal Plan (Carve In) UMR Proposed Plan (Carve Out) UMR BAFO Proposed Plan (Carve Out) PBM Administrator Prime RX Prime RX Prime RX Prime RX ProAct RX ProAct RX Network BlueChoice PPO Network BlueChoice PPO Network BlueChoice PPO Network BlueChoice PPO Network UHC Choice Plus Network UHC Choice Plus Network Annual ASO Admin. Fees (186)$76,892.40 $75,039.84 $70,575.84 $54,974.16 $126,799.92 $115,639.92 Medical Repricing Claims Estimate $1,039,230.20 $1,093,974.92 $1,093,974.92 $1,093,974.92 $1,118,370.56 $1,118,370.56 RX Claims $489,938.47 $529,133.55 $529,133.55 $529,133.55 $521,196.55 $521,196.55 Projected Rebates ----($126,219.00)($126,219.00) Wellness Credit - One Time $0.00 $0.00 ($15,000.00)($15,000.00)-($5,000.00) Run Out Admin Claims ----$11,606.40 $11,606.40 Rate Guarantee 1 year- Until 12/31/2019 1 year- Until 12/31/2020 1 year- Until 12/31/2020 1 year- Until 12/31/2020 2 years- Until 12/31/2021 2 years- Until 12/31/2021 Estimated Total Annual Cost $1,606,061.07 $1,698,148.31 $1,678,684.31 $1,663,082.63 $1,651,754.43 $1,635,594.43 One time credit in Jan/Feb bill --($15,000.00)($15,000.00)-($19,273.32) $ Combined Difference over Current $92,087.24 $57,623.24 $42,021.56 $45,693.36 $10,260.04 Combined Percent over Current (Total)5.73%3.59%2.62%2.85%0.64% $ Combined Difference over Renewal ($19,464.00)($35,065.68)($46,393.88)($62,553.88) Combined Percent over Renewal (Total)-1.15%-2.06%-2.73%-3.68% This executive summary assumes the following: * Medical claims trended at 6% and repricing from carriers factored in. * Pharmacy claims trended at 10% and repricing from APC factored in. * Stop Loss cost is not factored in this analysis. RFP will go out late October. *IBNR (2.5 months of Medical & 0.5 months for RX): $495,125.95 *BCBS BAFO1: One time wellness credit of $15K. There will be an additional $15,000 admin credit for the February bill. *BCBS BAFO2: One time wellness credit of $15K. Performance Select Prescription Drug Rebate offered (It is a more restrive formulary). There will be an additional $15,000 admin credit for the February bill. *UMR BAFO: One time wellness credit of $5K. Performance Gurantee offered. One time fee: 2 months of UMR standard Medical Admin Fee waive - estimated amount $19,273.32. No stop loss integration fee, if selected a prefer vendor. McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Recommendation •McGriff and Action Pharmaceutical Consulting (APC) are presenting the following recommendations based on all criteria reviewed during this process: •RFP #2019-63-A UMR (subsidiary of United Healthcare) •RFP #2019-61-A ProAct McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Recommendation •Employee Engagement Committee reviewed the recommendations regarding UMR and ProAct and was supportive of the transition. •Recommendations more closely align with the long term objectives of Town of Prosper: Control of Pharmacy Benefit Management Contract (PBM) Less Auto Adjudication of Claims Better Case Management Engagement and Reporting Ability to remove Out of Network Benefits without changing networks •UMR (subsidiary United Healthcare) Two month premium holiday totaling $19,273.32 in administrative fee credits Added $5,000 wellness credit to help pay for Online Health Risk Assessment and additional items if money left over Added standard performance guarantees around claim administration services •ProAct Improved Mail Order pharmacy discounts by 1% for Brand and Generic medications •Risks Town will request reinsurance quotes November 2019 to be presented to Town Council for approval in December 2019 McGRIFF, SEIBELS & WILLIAMS, INC. MSW information within this document is confidential & proprietary. ©2018 McGriff, Seibels & Williams, Inc. Questions? Agenda Item 23. Consider and act upon awarding RFP No. 2019-61-A for Pharmacy Benefits Management Services to ProAct, Inc.; and authorizing the Town Manager to execute all documents for the same. (KS) Executive Session Recess into Closed Session in compliance with Section 551.001 et seq. Texas Government Code, as authorized by the Texas Open Meetings Act, to deliberate regarding: Section 551.087 –To discuss and consider economic development incentives. Section 551.072 –To discuss and consider purchase, exchange, lease or value of real property for municipal purposes and all matters incident and related thereto. Section 551.071 –Consultation with the Town Attorney relative to plat approval in accordance with Chapter 212 of the Texas Local Government Code. Executive Session Recess into Closed Session in compliance with Section 551.001 et seq. Texas Government Code, as authorized by the Texas Open Meetings Act, to deliberate regarding: Section 551.071 –Consultation with the Town Attorney relative to plat approval in accordance with Chapter 212 of the Texas Local Government Code. Reconvene in Regular Session and take any action necessary as a result of the Closed Session. Possibly direct Town staff to schedule topic(s) for discussion at a future meeting. Agenda Item 24. Discuss Development and Infrastructure Fees. (JW/HW) Agenda Item 25. Discussion on Agenda Format. (RB) Adjourn.