Loading...
HomeMy WebLinkAbout04272011 MinutesCrrYQF SEBASTIAN HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, APRIL 27, 2011 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Hill called the regular meeting to order at 6:30 p.m. 2. Pastor Richard Jones of the Sebastian United Methodist Church gave the invocation. 3. Council Member Wolff led the Pledge of Allegiance. 4. ROLL CALL City Council Present: Mayor Jim Hill Vice -Mayor Don Wright Council Member Andrea Coy Council Member Richard H. Gillmor Council Member Eugene Wolff Staff Present: City Manager, Al Minner City Attorney, Robert Ginsburg City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Records Program Manager, Donna Cyr Airport Director, Joseph Griffin Administrative Services Director, Deb Krueger Building Director, Wayne Eseltine Growth Management Director, Rebecca Grohall Growth Management Manager, Jan King Deputy Police Chief, Greg Witt Police Captain, Bob Lockhart Police Officer, Paul Graves Parks Supervisor, Chris McCarthy MIS Systems Analyst, Rob Messersmith 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members The City Manager asked that item 6D be carried forward to the May 11 meeting. There were no objections. 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 11.056 B. Presentation of Plaque to City Employee of the 4 Quarter Mayor Hill read and presented the plaque to Rob Messersmith, MIS Systems Analyst. Regular City Council Meeting April 27, 2011 Page Two 11.057 C. Presentation by the Gehring Group "Health Plan Overview and Updates" Christian Bergstrom, Gehring Group, said with the recent changes in health care reform and the City's claims performance he wanted to address what to expect upon renewal of the employee's health care plan. He presented a PowerPoint presentation depicting the claims experience, the benefit changes, renewal projections, and the impact of medical inflation. (see attached) Mr. Wright said since most of the last five years have been a good experience, despite one bad year we should be able to get competitive bids; noted the Florida League of Cities has a program and someone might consider the last year an aberration and we shouldn't waste any time finding alternatives to the existing plan. He said we should look into consolidating plans with other groups such as the County or School Board. The City Manager asked Mr. Bergstrom to respond to the positives and negatives of possibly partnering with the County and Vero Beach. Mr. Bergstrom said the Gehring Group also represents Vero Beach, Indian River County (IRC), and Fellsmere. He said Vero Beach did not consolidate with IRC because of unique differences in their bargaining agreement for retiree benefits; and their Council did not feel the clinic program was feasible for their employees. He said in Indian River County does have multiple groups combined such as employees from the Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections office and usually the big members rule what goes on and the smaller groups benefit from the buying power. He said with Sebastian's size, Sebastian would be in the middle and they have seen middle groups run really good for several years, but when middle groups run bad, the larger groups want them out of the consortium. He said the Gehring Group could talk to the County and City Manager. Mr. Wright said they should consider all the options. Ms. Coy said one slide indicated penalties imposed for employees who do not provide an affordable plan and asked if anyone has defined "affordable." Mr. Bergstrom said while they are still waiting for Health and Human Services to come out with their definition of affordable, the essential benefits plan will look similar to a health savings account plan with a $1500 deductible for individual /$3000 for family and a 70/80/90% coinsurance but they may adjust it based on annual income and employers will be penalized for a worse plan. 11.058 D. Barber /Schumann Intersection Improvcment Presentation (City Manager 5 Transmittal, Conceptual Curc Plan, Schumann Drive Alignment) 11.020 A. Certificate of Appreciation to Charles Cardinale Planning Zoning Service Mayor Hill announced Mr. Cardinale arrived and invited him to the podium. He read and presented the certificate to Mr. Cardinale. 2 Regular City Council Meeting April 27, 2011 Page Three Brief Announcements Mayor Hill introduced Southampton, Long Island Village Board of Trustee Paul Robinson and his wife. Trustee Robinson said his friend, Charter Review Committee Member Carolyn Sartain- Anderson, invited them down to see the space shuttle launch and a "real" Council meeting. Mr. Gillmor cited crime going up in Indian River County but in Sebastian it dropped 13% as noted in today's Press Journal and suggested Sebastian's decrease should have been the paper's headline and gave kudos to our Police Department. Mr. Wolff reminded everyone of the May 21 Community Shredding Day to be held from 10 a.m. to 1:00 p.m. in the City Hall parking lot. Mayor Hill said Indian River County held their Mighty Mu Math competition today and Osceola Magnet School's fourth and fifth grade Explorers took first place overall, which is special to him because his daughter, Kendra Hill, is on the fourth grade team. 7 CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he /she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his /her hand to be recognized. 9 -21 A. Approval of Minutes April 13, 2011 11.059 B. Approve Craft Club of Sebastian Show Dates and Rain Dates for 2011 -2012 at 23 -31 Riverview Park and Authorize 50% Reduction of Applicable Fees (Parks Transmittal, Application, Letter) 11.060 C. Award Bid to Maxwell and Son, Inc. to Design and Install a Lift Station at 33 -96 Riverview Park in the Amount of $53,700.00 and Authorizes City Manager to Execute Contract (Growth Management Transmittal, Bid Tabulation, Pre -Bid Meeting Attendance Sheet, Agreement) 11.009 D. Authorize City Manager to Execute Modified Powerline Road Agreement with 97 -156 Timothy Rose Construction (City Manager Transmittal, Agreement) 11.061 E. Approve and Accept the Florida Fish and Wildlife Conservation Commission 157 -207 Boating Improvement Grant Agreement for the Sebastian Mooring Field (City Manager Transmittal, (City Manager Transmittal, Agreement) Mr. Wright asked to pull item E. MOTION by Ms. Coy and SECOND by Mr. Gillmor to approve items A -D. Result of the roll call AYES: All NAYS: None Passed 5 -0 3 Regular City Council Meeting April 27, 2011 Page Four Item E Mr. Wright said typically grants provide a high percentage of money with a low City participation and this one provides $21,000 with a $57,500 City contribution. He cited the grant agreement with scope of service, inspection, dedication, reporting requirements and questioned whether, with the additional documentation and everything else, it made sense to accept the grant or if the City could do something with our own funds. Mayor Hill said he had the same reaction; and he asked the City Manager how much it would cost to comply, and how restrictive the grant would be in going forward. The City Manager said the grant is slightly problematic but Council wanted staff to move forward with the improvements and staff did anticipate the funds were designed based so the $21,000 would apply to professional services and he hoped other jurisdictions could put together a match for the dock costs. He said if Council would like to move forward they could make due, or look to the recreation impact fees to cover the design (with the derivative giving up a grant) but gaining time and coming up with a project that they want. Mr. Gillmor asked if the $21,000 would have to be used for engineering anyway. The City Manager said yes, but it is not a simple project, it is in the estuary area, there are protected grasses, a lot of engineering work would have to be done so staff thought to acquire a professional design and use recreational impact fees or another grant to build the dock. Mr. Gillmor reiterated the professional fees would be $21,000 and asked what would be the time table if the grant is accepted. The City Manager said it must be completed by September 2012. Mr. Wolff confirmed the grant would affect the construction aspects and asked if it wasn't a risk to put it on the consent agenda. The City Manager said with all due respect the grant was driven by Council. MOTION by Mayor Hill and SECOND by Ms. Coy to reject the FFWC boating grant agreement. Public Comment Damien Gilliams, 1623 US Highway 1, thanked the Council member who pulled it off the consent agenda, the City should maintain full control of the moorings, he recommended a "no" vote and readdressing the project with recreation fee money. Ben Hocker, Sebastian, thanked Mr. Wright, noting we already have a mooring area in front of Capt. Hiram's and Capt. Butchers, with piers at the Park with boat slips but he has never seen them utilized. He asked if the slips can be utilized, and if there will be time limits, otherwise it turns into a Key West. Result of the roll call AYES: All NAYS: None The motion to reject the grant passed 5 -0 4 Regular City Council Meeting April 27, 2011 Page Five 8. COMMITTEE REPORTS APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 11.020 A. Planning Zoning Commission 209 -224 i. Fill Two Regular and One Alternate Member Positions (City Clerk Transmittal, Four Applications, Press Release, Board List) Mayor Hill said Mr. Hansen has withdrawn his application from consideration. Mr. Carter said he has been an alternate member for several months and would like to be a regular member. Mr. Kayser said he has been a resident for five years and he would like to do his civic duty. Mr. Qizilbash said "Bash" is his nickname, he is a professional civil engineer, and general contractor, is mostly retired, and would like to give back to the City. MOTION by Ms. Coy and SECOND by Mr. Gillmor to have Mr. Carter and Mr. Qizilbash serve in the permanent positions and Mr. Kayser in the alternate position. There were no objections, therefore they were appointed as recommended. 9. PUBLIC HEARINGS 10.031 A. Public Hearing and Final Adoption of Ordinance No. 0 -10 -06 Providing for an 225 -268 Economic Development Element in the Comprehensive Plan (Growth Management Transmittal, 0- 10 -06, DCA ORC Report w /Agency Comments) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING THE COMPREHENSIVE PLAN TO PROVIDE AN ECONOMIC DEVELOPMENT ELEMENT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR EFFECTIVE DATE. (PJ ad 4/12/11) The City Attorney read Ordinance 0 -10 -08 by title and Mayor Hill opened the public hearing at 7:24 p.m. The Growth Management Manager said this element was before Council in September last year; staff received the ORC report from DCA with no objections, and actually received some very nice comments that commended the City for memorializing economic policies. She said if adopted, it will be transmitted to the State for compliance review. MOTION by Mr. Wright and SECOND by Mr. Wolff to adopt 0 -10 -06 and transmit it to the Florida Department of Community Affairs. Damien Gilliams, 1623 US Highway 1, said the Governor is looking to curtail how cities send comp plans to the State and he wasn't sure if staff is aware of these new rules. The City Manager said staff recommended adoption, and staff hoped Governor Scott's proposed changes become law, as they will give municipalities more autonomy and be more responsive to the public. 5 Regular City Council Meeting April 27, 2011 Page Six Ms. Coy commended staff for the nice comments from DCA, noting we are a step ahead and this is right thing to do. Mr. Wolff agreed, this element is optional and we are doing our own thing very well. Mayor Hill added they have been working on this for four years now. Result of the roll call AYES: All NAYS: None Passed 5 -0 Mayor Hill called for a recess at 7:30 p.m. and reconvened the meeting at 7:43 p.m., all members were present. 11.062 B. Quasi Judicial Public Hearing of Resolution No. R -11 -11 Sebastian Charter 269 -300 Junior High School Site Plan Modification (Growth Management Transmittal, R- 11 -11, Staff Report, P Z Minutes, R- 00 -32, Application, Colored Elevation, Aerial, Site Plan, Architectural Plans, Lighting Plan) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, APPROVING A SITE PLAN MODIFICATION FOR THE SEBASTIAN CHARTER JUNIOR HIGH SCHOOL WITHIN THE CHESSER'S GAP PUD; PROVIDING FOR CONFLICTS HEREWITH; PROVIDING FOR EFFECTIVE DATE. (PJ ad 4/12/11) The City Attorney read Resolution No. R -11 -11 by title and Mayor Hill opened the public hearing at 7:43 p.m. Ex Parte Communications Ms. Coy said she had informal discussions on site and spoke to the principal in general terms. Mayor Hill said he had discussions with representatives from the school and has a child who is a student at the school. The City Attorney asked Ms. Coy and Mayor Hill if there was anything that would prevent them from considering this application on its merits and only what is presented tonight. Ms. Coy and Mayor Hill said there was not. The City Clerk swore in all those who intended to offer testimony. John Rivera, Chair of the Board of Directors and President of the Sebastian Charter Junior High recognized his mother, history teacher Susan Boyd; his high school mentor Jerome Martin; Resource Specialist Joy Curtz who has a sign that says, "All jobs begin with education and Principal Dr. Martha McAdams. He asked for permission to build the new teaching facility and they will take care of the rest. He described the school's history and curriculum. Amy Banov, Architect with Banov Architects, displayed a PowerPoint presentation depicting the current modulars with replaced buildings that will provide an attractive building enhancing the community. (see attached) Todd Howder, PE with MVB Engineering, said the school is already a great asset and there were future business leaders over his shoulder in the audience. He briefly described the drainage plan depicted on the drawings in the agenda packet. 6 Regular City Council Meeting April 27, 2011 Page Seven The Growth Management Director said staff finds the School's request to modify the site plan met all code requirements and recommended approval pursuant to conditions on circle page 271 of the agenda packet. Ms. Coy pointed out the multi purpose room called the cafegymatorium planned for phase II. Mr. Wolff asked if they anticipated using the new building as a shelter for weather emergencies. Ms. Banov said it is not currently designed for hurricane standards. Mr. Wright said there is a condo development under consideration on other side and asked if the traffic was considered so there isn't congestion. Brian Goode, P.E. said they did do a traffic impact analysis, looked at peak season, actual traffic on the road, added in the vested traffic (to be built) noting he did do the study for the multi family unit because it was not vested. He said he found the analysis met all the standards, there has been queuing wrapping around Wave Street, but quickly dissipates. In favor Martha McAdams, Principal, said they plan to have the cafegymatoriuim used by the community, and they were working on a grant to offer intergenerational opportunities to the community and thanked Council for their support in the past. Jaya Dong, 411 Kumquat Avenue said she used to worry where her daughter, Cheyenne, would go and at the time, she thought the school was just going to be a school but found they became part of a family. She asked that the school be allowed to become truly amazing. Damien Gilliams, 1623 US Hwy 1, said he had the opportunity to walk through the school and watch it grow; it's an A rated school and more are needed in the community; he hoped Council would give them what they need. There was no one in opposition of the request. Mr. Rivera reminded them that all jobs begin with education The Growth Management Director said staff recommended approval. Mr. Wolff asked about the time line for the project. Ms. Banov said they will go into Building Department review as soon as possible, do the parking lot this summer, phase I to be done by mid -year, and phase II completed in August 2012, if all goes well. Mayor Hill recognized the high school students present and noted they were not bribed with volunteer hours. MOTION by Mr. Gillmor and SECOND by Ms. Coy to approve Resolution R- 11 -11. Ms. Coy said people should see the school change periods —the cafegymatorium can be transformed in minutes and Dr. McAdams alluding to the possibility of using the building for community use will be good partnership opportunities. 7 Regular City Council Meeting April 27, 2011 Page Eight Result of the roll call: AYES: All NAYS: None Passed 5 -0. 10. UNFINISHED BUSINESS 11.054 A. Commercial District Signs (CM /GMD Transmittal, Chamber Memo, Draft 301 -309 Ordinance, Sign Illustrations) The City Manager said the issue at hand was how they will extend or consider additional signage for the business district, he did get in touch with Beth Mitchell, Executive Director of the Chamber who took the issue to the Business Develop Committee which provided a list of recommendations on circle page 303 of the packet. He said staff provided a draft ordinance and he asked Council to note that changes would have to be considered by the Planning and Zoning Commission (P Z). He said the recommendation included that sandwich type and feather type signs be permitted; it was important to marry ambience and attractiveness of the community and achieve that middle ground, no fee permits should be required to give code enforcement officers the opportunity to remove those without permit, allow grand opening signs to be increased from 30 to 60 days, and not change any requirements for the monument type signs. Public Input Damien Gilliams, 1623 Highway 1, said there are more violations than you can shake a stick at, any time you start with more permit bureaucracy -it starts out at free, then $5, $10, $20 and so forth; maybe the City could sell A -frame signs to control conformity; his other concern was storm season, sometimes its better to let the market dictate what kinds of sign comes in, he hated to see Council rush this ordinance because businesses are suffering big time, they want to make it easy for businesses to put their signs up and should probably provide an A -frame when people open up a business, was glad to see the Chamber here, less government regulation and the businesses will flourish. Delmont Oquist, a local barber who moved here 30 years ago from Wisconsin, described the hard time he had opening his business because of sign regulations and ended up with a shop at 1413 North Central Avenue and received a compliment from City on the building change. He said he loved Sebastian, took down his non conforming signs, but was put out when he sees all kinds of signs that are dirty, falling down, propped up on bumpers, which all make a beautiful drive in Sebastian ugly. Brad White, local realtor, said his business moves from site to site and asked if he needed a permit to put up a feather sign at each site or just one permit. He said they are attractive and he would like to use something like that. Ben Hocker said he was in agreement with everything except for feather signs, they are distracting, don't fit with the decor of the town and said Council might want to eliminate them. Donna Keys, 725 Layport Drive, commercial property owner on US1, said this Council has been extremely sensitive to the business community, citing the CRA grants of thousands of dollars to make signage look nice. 8 Regular City Council Meeting April 27, 2011 Page Nine 8:43 pm In the new ordinance, she asked that grand opening signs be allowed up to 60 days, special events be allowed for two weeks and not more than four times a year, and establish more control for feather signs such as only at grand openings or special events. Mr. Gillmor said at the last meeting there was consensus of doing what was already done in the temporary ordinance, just extending it, concerned the draft ordinance would go farther than what people want, he asked when does it stop, has received calls about hand -made unattractive signs on CR512, is against anything that moves, and if businesses are allowed feather signs that is not the Sebastian he wants to live in. Mayor Hill said Council is trying to reduce creep and through the permit process it will eliminate what Mr. Gillmor is talking about it, he said doing business on CR512 is very difficult because of lack of visibility. He said the issue that better signs are needed warrants discussion, he would not want to see permanent feather signs, the A -frame is important, and the potential ordinance will go towards hand drawn and other things people are doing to attract customers. Ms. Coy said the sandwich board sign was intended to go in at night and be something special and not say the same thing everything day, a special event could be advertised on a sandwich board, and she could envision a couple of people having special events once a week. She said she was conflicted on feather flags, did not favor putting them in the residential area, and she asked that the ordinance apply to the CR512 and CRA overlay districts, as well as US1 in City limits and outside with the County's compliance to get a more uniform look on US1. She noted this would exclude Roseland Road. Mr. Wright said he was concerned with getting too restrictive, suggested limitations on height or size of feather signs which are visible and do attract customers. He said some businesses don't have a monument sign such as the Villages who feel they don't have enough exposure to attract customers and the purpose of the ordinance is to allow business to be recognized when someone drives past a business. He said it would be appropriate to send the ordinance to P &Z, and limit special events to a week. In response to Ms. Coy, Mr. Wright described special events. Mayor Hill pointed out the idea is to limit businesses going out of business for five years. Mr. Wright said the business community is severely challenged, the stability is not there yet, so Council should be careful about restricting their business. Mr. Wolff thanked everyone who came to speak to Council, commercial enterprises are always going to promote, over years towns have asked them to mute their colors, and with regard to feather flags, he didn't think they worked in trying to promote a spontaneous purchase, noting not every business is conducive to spontaneous business. He said he found it far fetched that a previous speaker said he needed his sign to be visible to rent a U -Haul truck. He said if you didn't know what Metro was, the big purple feather sign becomes invisible, and there are some instances that spontaneous purchases are part of a plan, but the key component does not lie with having a feather flag outside. 9 Regular City Council Meeting April 27, 2011 Page Ten 9:17 pm He said Indian River Realty has a thousand members, so there is the potential to have thousands of feathers flags, the hope of us keeping the flags respectable is slim, the cluttered look is not scarce in Florida, what Sebastian has can't be found, visitors won't come if its look like SR192, they need to maintain the charm and feel of the town. Mayor Hill said he couldn't see how they could allow the permanent use of feather flags, did agree there is a place, and finding that place, is Council's job. Mr. Wright said that might be grand openings and special events. Mayor Hill said the idea of everyone having the option to use the flags is very scary and would easily transform the community into something that it isn't, discussion is leading us in the right direction, and it will help formulate the ordinance, then send it to P Z. Mr. Gillmor said he hoped they would look at this and ask "what if" we allow this everywhere, allow every business to have one; if feather flags are allowed, every business will have one. He said a business advertising they are "new" with a banner for 60 days could attract customers. The City Manager said the LDR doesn't permit a feather flag in the residential area for a house sale, not even for open houses. Mr. Wolff asked about commercial property for sale. Mr. Wright said special events would control that. Ms. Coy said she didn't believe there are special events and when you open a business its tough, and we have been blind to the signage and been good to the businesses. She said there is a happy middle noting when you open a business and have a plan that is dependent on the size of your sign, you didn't do your homework. Mr. Wright said people are talking about cardboard signs, and have gone way beyond what our code allows. Ms. Coy asked what a special event sign look like. Mr. Wright said it typically a banner, and certain businesses depend on them. Mayor Hill said they are all agreeing in the direction they want to go, get cleaned up, special event signs need to continue but we need to define what is a special event sign, the compromise could be a time limit and how many businesses do it, noting it will go to P &Z and suggested having a definition of a special event. The Growth Management Director said a special event defined in the LDA is for 10 days such as Earth Day, Pelican Island Wildlife Festival, or a florist shop's valentine special. The City Manager said staff will tweak the ordinance with the changes discussed tonight such as sandwich board size, how feather flags will be displayed, it will go before P Z, and come back to Council in July and August; and in the interim he will work with Code Enforcement in removing some of the nuisance signs and work with businesses. 11.063 B. Ocean Concrete Update (City Manager Transmittal) 311 9:23 The City Manager stated he was seeking direction to prepare an appeal for Council approval even though the County Attorney has not made a decision on Ocean Concrete. 10 Regular City Council Meeting April 27, 2011 Page Eleven Mr. Wright said he has followed this closely, Council has been consistently against the project, it would be nice if we didn't have to pursue it, however, we need to be prepared. Mayor Hill agreed. There was no public input. Mayor Hill said the direction should be to prepare ourselves for an appeal. There was no objection. 11. PUBLIC INPUT Damien Gilliams, 1623 US Highway 1, asked when the City will have commercial recycling, said events using Riverview Park should use Waste Management; and there should be bins at home with wheels. He commended the Police Volunteers for saving the City money, said the Mayor forgot to congratulate his son who was also on the Mighty Mu team; said we need to organize the Treasure Coast health care system for all employees to save money; the auditor RFP should be advertised in Martin County, Palm Beach County; we need to get a siren system for emergency warnings; allow golf carts on roads to save money and gas; and get real estate values and assessments up. 12. NEW BUSINESS none. 13. CITY ATTORNEY MATTERS 11.064 A. Proposal Indian River County "Pill Mill" Ordinance (County Attorney Memo 313 -330 dated 4/4/11, Proposed County Ordinance) The City Attorney wanted to let Council know that IRC has been working on this for the past year with the staff's assistance, the State has reversed its policy, and we don't know if something will be enacted there. He said it is possible session will end without action; and the federal government is giving attention to the problem as well. He said our provisions are in the County's proposal and this is really an FYI for Council. 11.065 B. Litigation Memo (City Attorney Memo dated 4/20/11) Like to provide 331 He said his litigation memo is provided for Council. He said the political sign ordinance will need an amendment to be effective and that will be going to the Planning and Zoning Commission and then on to Council. 14. CITY MANAGER MATTERS The City Manager said the Hurricane Harbor rehabilitation is about complete; he has done some preliminary grand opening work with Fisherman's Landing Sebastian and Council will be the first to know the date. He said the Cavcorp project has gone out to bid; the deadline is the end of May, with recommendation to come back to Council in June /July. 11 Regular City Council Meeting April 27, 2011 Page Twelve He apologized to Council for placing the grant on the consent agenda noting Mr. Gillmor will have to cut and paste a new Press Journal headline that, "City Rejects Grant," he will accept upcoming evaluation comments that he is too eager to please. Mr. Gillmor reminded him that the Press Journal credited Vero Beach with receiving the grant. 15. CITY CLERK MATTERS The City Clerk said the Charter Review Committee has wrapped up their discussions and plan to hold public hearings on May 12 and 26; and they would like to invite Council and the City Manager to their May 12 public hearing. 16. CITY COUNCIL MATTERS A. Council Member Gillmor none. B. Council Member Wolff Mr. Wolff said we have made great efforts in improving the community during this tough time and asked the City Manager to make inquiries as to status of fire house on US 1 which remains an eyesore, that it would be interesting for planning purposes, to see what is going to be done with the property, and convey a sense of urgency to go something with it as we begin to install pavers and landscaping on US 1. Mayor Hill agreed. The City Manager said he would provide a report on that, the County may have a buyer for the property and he would confirm that and provide all the information. C. Mayor Hill 11.066 i. Candidate Forums (No Backup) Mayor Hill said he put this on the agenda because they will have some requests to hold the standard forums in City Hall and it has served a great public service to get the candidates out to the public without bringing in partisanship or favoritism; however last year there were some individuals who had some not so good intentions that tried to jog the system and he wanted to have something in place to protect the integrity of what they try to do with their facility. He noted the facility costs taxpayer money and he requested Council input on where they should go. He said he was leaning on not spending taxpayer money on the broadcasts. Ms. Coy said they do have dilemma, the service has been valuable, and she would hate to see it go away, but it almost did last year. She didn't think there needed to be any more than the two groups that have applied and asked the City Attorney if they could tighten it up and not leave an open door. The City Attorney said the policy was adopted by resolution, if it was the will of Council he would look into it; as it stands, noting Council provides the final decision on events scheduled of that nature. 12 Regular City Council Meeting April 27, 2011 Page Thirteen Mayor Hill said he would like Council input and the key is that some have asked to use the Chamber so he would like to iron this out now and have a policy going forward. He said as the policy is written, if a non profit that doesn't show a political bias and a plan for their forum, it is our responsibility to approve it. Mr. Gillmor said there should be a cost factor and asked how many forums they would need -one for each candidate which would put the City on the hook for more. The City Attorney advised they should tread carefully in this area, they are not starting with a blank page, they are partially pregnant, and if it was the will of Council, he will look at a way to tighten this up. Ms. Coy said for fiscal reasons alone, she would hate to see it stop but it is a possibility and said it was like using the park- everyone uses it or no one does. Mr. Wolff asked what if the Tea Party asks for a forum, what would be the limit. Mayor Hill said the current resolution would not allow that to take place, but the other organizations' forums have taken place before City Hall was built and will continue. Mr. Gillmor suggested putting the two organizations together. Mayor Hill said that is a fair thought, they would take place even if not at City Hall, but they are servicing different segments of the community. Mr. Wolff said the impetus was the way the forums were held and those candidates requesting last year wanted to debate each other, but he didn't think candidates would participate in such a debate. Ms. Coy said he spoke from experience, and if he looked back to when he didn't have experience to a televised forum, he might have shown up. Mr. Wright said it is a shame they have gotten away from the forums sanctioned by Council, they are non partisan, they have a history that goes back many years with two groups that are important to the community, and they should find some way to accommodate that. Mayor Hill agreed, it has served us well and he would love to see something to protect integrity and have the Attorney bring something back. Mr. Wolff advised the groups to set their forum calendars in accordance with early voting. D. Vice Mayor Wright Mr. Wright said he had been contacted by a bicycle /scooter business that is interested in opening on the waterfront but there is an ordinance prohibiting automobile sales and leasing which includes scooters. He said he did not think scooters would be a bad idea and would be looking into the ordinance. 13 Regular City Council Meeting April 27, 2011 Page Fourteen Approved at the May 11, 2011 Regular City Council meeting. ATTEST: E. Council Member Coy Ms. Coy announced the Chamber's Concert in the Park on Friday, April 29 which is to be classical rock. 17. Being no further business, Mayor Hill adjourned the regular meeting at 9:57 p.m. Sally A. Maio, ,MMC City Clerk 14 Health Plan Overview Updates City of Sebastian City Council Meeting Wednesday, April 27, 2011 Presented by: Christian Bergstrom, Director Analytical Services Items for Discussion Health Plan Overview Claims Experience Benefit Changes Renewal Projection Impact of Medical Inflation (Trend) 1 2 Items for Discussion Moving Forward Healthcare Reform How will it affect Sebastian? Preparing for Renewal Background: Claims Experience Plan Changes 4 Date MONTHLY PREII)M Total Hospital Claims Total Physician Claims Other Pharmacy Capitation CLAIMS TOTAL AIMS L oss Ratio Total October -09 $102,859.37 $4,682.26 $20,707.22 $6,264.96 $14,223.00 $132.37 $46,009.81 45% 126 November -09 $101,320.60 $53,901.36 $26,276.43 $1,223.49 $12,274.19 $137.86 $93,813.33 93% 127 December -09 $102,313.04 56,037.69 540,057.65 $2,235.84 $12,179.48 $132.37 $60,643.03 59% 126 January-10 $102,349.97 $16,402.49 $31,933.54 $4,571.86 $10,229.65 $139.69 $63,277.23 62% 126 February-10 $101,294.15 $31,401.07 $31,553.94 $3,951.99 $11,565.60 $134.20 $78,606.80 78% 125 March -10 $101,822.06 $67,081.65 $24,682.73 $9,287.87 $15,272.61 $135.42 $116,460.28 114% 125 April -10 $99,710.42 $31,257.55 $20,093.70 $3,608.30 $10,371.98 $126.27 565,457.80 66% 121 May -10 $98,754.91 535,363.35 $18,494.51 $5,422.55 $9,177.16 $123.83 $68,581.40 69% 120 June -10 $99,777.66 $20,994.64 $20,230.78 $5,130.02 $10,549.09 $119.56 557,024.09 57% 120 July -10 594,004.40 525,546.19 $19,646.84 $3,653.91 $12,754.81 $113.46 561,715.21 66% 117 2009 -2010 Total $1,190,689.05 5292,668.25 5253,677.34 545,350.79 5118,597.57 51,295.03 711,588.9 854% 1233 Date MONTHLY PREMIUM Total Hospital Claims Total Physician CLaIms Other Pharmacy Capitation T[3TALQ,AIMS L oss Ratio Total Members August -10 $91,622.92 $162,064.67 $28,607.12 55,667.14 $11,102.14 $119.56 $207,560.63 227% 118 September -10 $94,331.64 $42,302.11 $25,386.18 $7,882.06 $22,508.23 $131.15 $98,209.73 104% 118 October -10 $93,241.72 $48,204.75 $22,272.03 56,345.03 $28,503.01 $128.71 $105,453.53 113% 117 November -10 $89,723.92 $142,227.14 $27,439.22 $3,518.09 $16,719.27 $127.49 $190,031.21 212% 113 December -10 $89,713.92 $61,367.14 536,922.12 $5,223.52 $17,088.94 $128.10 $120,729.82 135% 113 January-11 $89,723.92 $39,857.47 $18,466.44 $11,821.58 $19,632.12 $123.22 $89,900.83 100% 113 February-11 $89,222.81 $60,085.13 $21,255.17 $5,256.73 $9,157.53 $125.05 $95,879.61 107% 112 March -11 $90,520.69 $37,711.96 517,357.33 $16,624.98 $17,770.77 $125.66 $89,590.70 99% 112 2010-2011 Total $728,101.54 5593,820.37 $197,705.61 $62,339.13 5142,482.01 51,008.94 $997,356.06 137.0% $1,088.82 2009 -2010 Claims Experience 2010 -2011 Claims Experience 5 6 Claim Payment Range Claimants $25,000 $49,999 7 $49,999 $99,999 5 $100,000 $199,999 0 $200,000+ 2 Claims Per Employee per Month Catastrophic Claims (12- months) ()r rr} fil rri 2rnr >rilfip r pt :1 2 .If r 8 Benefit 2009 -2010 Benefit 2010 -2011 Benefit Calendar Year Deductible (CYD) (In- Network /Out -of- Network) Single: $0 $500 Family: $0 $1,500 Single: $500 $1,500 Family: $1,500 $4,500 Coinsurance Out of Network Member pays: 40% Member pays: 50% Primary Care Physician Office Visit $15 Copay $20 Copay Specialist Office Visit $25 Copay $35 Copay Maternity Initial Visit $25 Copay $35 Copay Adult Wellness (PCP) $15 $25 Copay No Charge Adult Wellness Annual Benefit Max $250 Maximum No Maximum Emergency Room Visit $100 Copay $150 Copay Urgent Care Facility $25 Copay $40 Copay Inpatient Hospital (Option 1 2) $300 $600 Copay $600 $900 Copay Outpatient Hospital (Option 1 2) $100 $200 Copay $250 $350 Copay Ambulatory Surgical Center $75 Copay 5100 Copay X -rays at Independent Facility $75 Copay $50 Copay Advanced Imaging (MRI, PET, CT) $75 Copay $150 Copay Prescription Drug Mail Order Program 2x Retail Copay 2.5x Retail Copay Total Lifetime Maximum Benefits $5,000,000 Unlimited Benefit Changes: 2010 -2011 2010 -2011 Employee Contributions 9 1 0 2009 -2010 Employee Contributions Employee 2010- 2011 Employee Contributions Employee Employee $0.00 0% $0.00 0% Employee Spouse $282.42 26% $268.10 25% Employee Children) $232.26 23% $220.49 22% Employee Family $574.10 34/0 34% $544.96 33% 33/0 Benefit Changes: 2010 -2011 2010 -2011 Employee Contributions 9 1 0 Question: What is Florida trend projected to be for 2011? A. 10.5 12.5% B. 12.5 15.5% C. 8.5 10.5% Impact of Trend Impact of Trend What is "Trend Trend is the forecasted change in health plans' per capita claims cost determined by Insurance Carriers, Managed Care Organizations, Pharmacy Benefit Managers and Third Party Administrators. 11 Source: Gehring Group 10/11 renewals. 12 What factors influence "Trend Price Inflation/ Adverse Selection PR E 14 REFORM Government Mandates Advances in Increased Technology Rx Costs Escalating Malpractice Premiums Source: The Segal Company- 2004 Health Plan Cost Trend Survey Impact of Trend HEALTH CARE REFORM ARRA COBRA Subsidy Factors that influence tren RFF RE Increased Utilization Aging Chronic Population ,Condition, E NE REFORM Providers Forming Groups Health Care Reform Deductible/ yFq< Copy R ry leveraging F,c C Labor Shortages (nurses pharmacists) Cost Shifting 13 14 Health Care Reform Patient Protection Affordable Care Act signed into law on March 23, 2010 Health Care Education Reconciliation Act signed into law on March 30, 2010 Estimated 32 million additional covered by 2019 What Was Effective In 2010 -2011? Effective for Sebastian for 2010 -2011 Coverage for adult children until age 26 (state mandates still apply) 15 Prohibition on lifetime limits No pre- existing condition exclusions or limitations for children under 19 Cost sharing for preventive services is prohibited No pre- authorization requirements for emergency services Coverage of essential benefits Health insurers offering new plans will have to develop an appeals process to make it easy for enrollees to dispute the denial of a medical claim 16 What's Effective In 2010-2011? Grandfathered status lost due to financial plan changes Uniform coverage documents and standard definitions developed by HHS (Dept. of Health Human Services) Employer cost of benefits reported on employees W -2 (delayed until 2012) 85% MLR for large group mandated Self insured groups (pending guidance) Medical Loss Ratio (MLR) What is a Medical Loss Ratio? Claims Premium What is a claim? Effects of MLR regulations Perception of government dictating how much profit a business /industry can make Insurers trying to work within MLR guidelines by: Categorizing as much as possible as "claims" including o Capitation o Case management pre- certification o Network access fees /Managed care fees o Broker commissions /fees May negatively impact smaller insurers 17 18 What's Effective In 2011? RESULTS TO DATE Carriers have not experienced the "huge influx" of over -age dependents No pre -ex for children to age 19 time will tell New coverage mandates have impacted fully insured premiums by about 1.7% 2.4% for: Removal of lifetime limit Removal of cost -share for preventive care Extension of coverage to dependents to age 26 What's Effective In 2013? CLASS (long term care) program implementation (delayed) New notification requirements for employers 19 Notice to employees of State Exchange Notice to employees of ability to opt out of long term care Notice of material coverage changes no less than 60 days in advance of plan effective date 20 What's Effective In 2014? "Pay or Play" mandate Employers with more than 50 employees who do not offer coverage o Free Rider penalty of $2,000 per employee if even one employee receives subsidy Employers with more than 50 employees who do offer coverage, but coverage is not "affordable" o $3,000 assessment per employee who receives subsidy Employer reporting requirements to IRS Individual coverage requirement Penalty phased in $695 by 2016 Health insurance exchange is established Limits on rating plans based on age Tax credits available for individuals and small business tax credits expanded Essential benefit plan is created (minimum benefits defined) What's Effective In 2014? 21 Pre existing condition exclusions are prohibited (now applies to grandfathered plans) CO -Ops are established Multi -state qualified health plans are created and offered through the Exchange Lifetime and annual limits are prohibited for essential benefits (now applies to grandfathered plans) Coverage for approved clinical trials is mandated Limits on out -of- pocket expenses and cost sharing No waiting period over 90 days Guaranteed issue and renewal Additional taxes on health insurance companies 22 What's Effective In 2018? 40% excise tax on "Cadillac Plans" $10,200 for single coverage (High Risk Employees: $11,850) $27,500 for family coverage (High Risk Employees: $30,950) Excludes dental and vision Includes health plan, FSA, HSA, HRA and supplemental Employers must calculate and report excess value and tax Items For Consideration Employee Benefits Budget? Plan Changes? Consumer Directed Health Plan Option? Dental, Vision, Life and Disability Programs? Request for Proposal Process? 23 24 Question Answer