Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

MINUTES

COUNCIL OF COLUMBUS, GEORGIA

WORK SESSION

SEPTEMBER 25, 2007



The regular monthly Work Session of the Council of Columbus, Georgia was

called to order at 9:04 A.M., Tuesday, September 25, 2007, on the Plaza Level

of the Government Center, Columbus, Georgia. Honorable W. J. Wetherington,

Mayor, presiding.



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PRESENT: Present other than Mayor Wetherington and Mayor Pro Tem Evelyn Turner

Pugh were Councilors Wayne Anthony, Mike Baker, Jerry ?Pops? Barnes Glenn

Davis, Berry H. Henderson, Julius H. Hunter, Jr., and Charles E. McDaniel, Jr.,

City Manager Isaiah Hugley, City Attorney Clifton Fay, Clerk of Council Tiny B.

Washington and Deputy Clerk of Council Sandra Davis were also present.

Councilor Evelyn ?Mimi? Woodson arrived at 9:18 a.m.

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ABSENT: Councilor R. Gary Allen was absent.



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INVOCATION: Offered by Pastor Robert Girardeau, Pastor of Our Lady of Lourdes

Catholic Church.

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PLEDGE OF ALLEGIANCE: Led by students from Allen Elementary School.

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GREATER COLUMBUS FAIR:



Mr. Dale Hester of the Civic Center said it?s that time of year again when

you can become a child again, at the Greater Columbus Fair. He said we enjoy

this time of year, as there is nothing better than to come in and watch the

parents watch their children having fun. He said they have great kiddie rides

and said he would encourage the parents to bring their children down to enjoy

the Greater Columbus Fair at the Civic Center beginning this week.



Ms. Robin Walker, also of the Civic Center said the fair will start

tonight and Wednesday, Thursday is from 6:00 p.m. to midnight. Friday night

from 6:00 p.m. ? 1:00 a.m., Saturday from 11:00 a.m. ? 1:00 a.m., and Sunday

from 2:00 p.m. ? 12:00 midnight. She said also on Saturday, they will be

offering, along with the Heart Safe Board, the free CPR classes at 10:00 a.m.

12:00 noon and 2:00 p.m. She said for the first time, they will be offering a

certification class on Saturday form 10:00 a.m. ? 4:00 p.m., and completion of

any of those classes will get you free admission to the free on Saturday.

She said this year they have more inside vendors, as well as outside vendors

than they have ever had.



Mr. Hester said these are local vendors. He said we are trying to get the

old part of the fair to come back, where we have local vendors come in and

cook.

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CONSENT AGENDA:



COMMUNITIES IN MOTION DAY:



Deputy City Manager Lisa Goodwin said Communities In Motion Day is

actually the old Try Transit Day, which is celebrated annually nationwide. She

said all Transit Systems this time of the year, this day will celebrate

Communities In Motion. She said they basically want to get the word out to the

public about the importance of transit in our community, such as ours. She said

we want people to come down to the METRA transfer center, as we will have

different vendors and sponsors to come out. She said we will also recognize

what transit means to the community. She said we would like to invite the Mayor

& Council to come out and join them and take part in this day. She said if you

have not had an opportunity to ride a METRA bus she ask that you do take time

to do on this day, as we will provide you with a pass.



THE FOLLOWING RESOLUTION WAS THEN SUBMITTED AND ADOPTED BY THE COUNCIL:

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A Resolution (414-07) - Commending and congratulating the METRA Transit

System for excellence in public transportation and declaring October 4, 2007 as

Communities in Motion Day. Councilor Hunter read the resolution in its entirety

and moved for its adoption. Seconded by Councilor Anthony and carried

unanimously by those nine members of Council present for this meeting.



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YOUTH ADVISORY COUNCIL:



Clerk of Council Washington pointed out that Councilor Baker is nominating

Ms. Vashawn Ruff, as his District 5 representative and that she needs to be

confirmed. Councilor Henderson moved she be confirmed. Seconded by Mayor Pro

Tem Turner Pugh and carried unanimously by those nine members of Council

present for this meeting.



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HOSPITAL AUTHORITY:



Clerk of Council Washington pointed out that Councilor Davis said two

nominees that he needs to make for the Hospital Authority in order that we may

forward these nominees over to the Hospital Authority for them to select

someone to succeed Mrs. Evelyn Turgeon. She then asked for a motion to allow

her to forward these two nominees over to the Hospital Authority for the

authority to select its member. Mayor Pro Tem Turner Pugh so moved. Seconded by

Councilor Barnes and carried unanimously by those nine members of Council

present for this meeting.

October 4, 2007, as COMMUNITIES IN MOTION DAY in Columbus, Muscogee, Georgia. I

call upon all citizens to support public transportation and COMMUNITIES IN

MOTION DAY, and to become more active in education and advocacy efforts to

promote the vital role that public transportation plays in shaping the fabric

of Columbus, Muscogee, Georgia and across the United States.

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WORK SESSION AGENDA:



FINANCE UPDATE:



Director of Finance Pam Hodge said this finance report was emailed to the

Mayor & Council earlier this week, but said a copy is now being distributed

around the Council table this morning.



She said this report takes us through the end of August, the second month

of the fiscal year for FY-08 and shows a comparison to where we were at the end

of August last week.



Ms. Hodge said something important to note here is that most of the

revenues that we collect in July and August is actually shown as revenue for

FY-07. She said when we receive the sales tax this month in September; it

really applies for sales tax collected in July. She said when you see our

revenues in the general fund to be $4 million; those are $4 million of revenue

that is credited to FY-08. She said any other revenue that we had received is

actually credited to FY-07.



She said in comparison to where we were last year, we are up slightly in

the general fund 5.93%. She said it?s somewhat early in the year to start using

that number as what we expect growth to be in the general fund from last year

to this year; which is only two months of revenue and most of that revenue

applies to FY-07.



Ms. Hodge said most of the revenue that we collect we have not collected

it as of the end of August. She said taxes come in during October and December,

which is a major source of revenue for the general fund.

She said occupational taxes mostly come in during April. Franchise payments

come in quarterly or annually; so we haven?t received the first quartet of

franchise payments. She said that number of 2.93% of budget is not alarming

because that?s another reason that we keep a fund balance to get us to the

first quarter until we do see those revenues come in.



She said the sewer and paving fund are up slightly from where we were at

this same time on last year. She said the reason why we see such an increase is

that this is two months of motor vehicle ad valorem taxes, where during last

year we only had one month recorded by this date. She said we also see a

dramatic increase in the integrated waste fund; which is due to the issues that

we were having at this time last year; and those issues have been corrected now

and we do see the revenue coming in the way it should be.



E911 Fund where we are down 30% going back and looking at the details of

which company have transmitted payments, some of the payments we did receive

the first week of September; so they are not recorded by the end of August.



Ms. Hodge said Economic Development, Debt Service Funds; those increases

are tax related for the motor vehicle tax where we reported one month this year

and by this time last year, we had two months reported. She said we do see a

decrease in the transportation fund; which is METRA and is due to the timing of

the receipt of grant funding. She said by this time last year, we had received

some grant funding from the Federal Government; however, we do not have that

payment in this year. She said that?s just a timing issue on grants.



Parking Management Fund ? Ms. Hodge said we are seeing a decline in the

Parking Management Fund for a couple of reasons. She said one reason is that

we had some free parking offered in the downtown area; therefore, we have not

been collecting as much revenue on the parking side because of all the

streetscapes. She said we have also seen some changes in lease payments from

our parking garage to the new parking garage; so we are not collecting as much

in these payments as we had on last year. She said we are going to be looking

at that and making some recommendations on some changes that we might want to

make.



City Manager Hugley said we have opened the new parking garage because CSU

is downtown. He said CSU were leasing parking spaces in the RiverCenter parking

garage and once the new parking garage was opened; then those lease payments

went away because they are now occupying the new garage.



City Manager Hugley and Director of Finance Pam Hodge then responded to

questions of members of the Council regarding the new parking garage.



After the conclusion of her presentation, Ms. Hodge then responded to

questions of members of the Council.



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BLUE CROSS/BLUE SHIELD-MEDICARE ADVANTAGE:



City Manager Hugley said Director of Human Resources, Mr. Tom Barron

and Director of Finance Pam Hodge have been working with Blue Cross/Blue Shield

on an Advantage Presentation and said a representative

from Blue Cross/Blue Shield is here this morning to make a presentation.



He said they identified a focus group of retirees with this government,

such as Mr. Frank Lambert, Ms. Omagene Holland, and Mr. Aubry Burt and

presented this presentation to them and said it was well received by them.

He said we thought it would be important that they bought into this and said

they have indicated nothing but support in this matter.



Mr. Richard Smith of Blue Cross/Blue Shield then came forward and made a

presentation providing the following information, as outlined below:



Examine changing Retiree Health plan from self-funded to fully insured with

enhanced benefits

Discuss the OPEB liability faced by City

Explain how the program will benefit both retirees and the City

Explore how enhanced benefits, reduced paperwork and easier administration can

actually cost less

Review proposed new benefits

Review the cost to Retirees and the City

Q & A



Snapshot of Changes

1/1/08 $100 Premium returns to current $90 monthly

$300 City plan deductible eliminated

$124 Medicare Part B deductible eliminated

Same basic benefits

Reduced paperwork

Enhanced Services



Retiree Coverage

Retired Members Under Age 65 (Not Medicare Eligible)

Retired Members Under Age 65 (Medicare Eligible due to Disability)

Retired Members Over Age 65 (Medicare Eligible)

*(Under Age 65 Dependents)

Revised Accounting Requirements

FASB 106 ? Private Sector

GASB 45/46 ? Public Sector

SOP 92-6 ? Taft-Hartley Trusts

-IMPACT-

Requires employers, during the years the employee works, to recognize the

expected cost of providing future benefits to employees, beneficiaries and

covered dependents rather than the traditional pay-as-you-go annual expense.

Who / What is GASBGASB stands for the Governmental Accounting Standards Board.

Operating from the same facilities as the FASB, this independent

(nongovernmental) authority establishes accounting principals in the United

States for Local, County, State and Federal Government organizations.



GASB 45 Issues for Public Employers

Significant, current balance sheet liability

Undefined and changing future costs of benefits

?Risk? for retiree coverage if self-funded

Inability to generate funds to match obligations and continue funding of

retiree health care benefit

Impact on Bond ratings

Misunderstood, sometimes unappreciated but anticipated retiree medical benefits

Questions you might have

Are my basic benefits changing? NO

Can I still use my current Doctors? YES

Can I still go to my chosen Hospital? YES

Can I still get Prescription Drugs from my Pharmacy? YES

Is this new coverage from a reputable company? YES

Will I have someone to call if I have Questions? YES

Is there a ?network? that I have to use? NO

Is there anything that Medicare now covers that will not be

covered by this plan? NO



What kind of Plan is this?



This Plan is called a ?PFFS? or Private Fee for Service or Medicare

Advantage Plan

This is a Medicare Intermediary program- you only work with one entity

This is a hybrid between a Medigap plan and an HMO, offering the best of both

products

Lower Premiums with more coverage relative to Medigap Plans

No network ? members see any ?willing

Medicare Provider? (deemed contracting)



Member Gains

What the PFFS Fully Insured Product Will Do for the Member

Offers the same providers as original Medicare

Uniform Benefits throughout the U.S.

Benefit and service stability with dedicated Retiree/Senior Services staffing

Single source vendor removing need for Member to file with Primary Medicare and

Supplementing Plan.

No increase in current monthly premium costs

Elimination of deductibles

Prescription co-payment reductions

Employer Gains

What the PFFS Fully Insured Product Will Do for the Employer

Offers the same providers as original Medicare

Uniform Benefits throughout the U.S.

Supplements the employer premium by the reimbursement amount WellPoint receives

from CMS for the enrollee

Single source vendor to cover entire employer population

Potential reduction in OPEB liability



Employer Saving Potential

Self Funded

Risk for all claims

Direct Admin cost

Full Internal Admin

GASB liability requires annual calculation and disclosure

Interface required for CMS reimbursements

Potential for restrictive networks for hospital, Dr. and RX

Fully Insured

No Risk for Claims

No direct Admin cost

Limited Internal Admin.

Reduce GASB Liability if Defined Contribution Approach utilized

No interface with CMS required for reimbursements

No geographically restrictive provider limitations



PFFS Non-Network Plan

Provider Deeming:

A provider or supplier is ?deemed? to have a contract with a PFFS plan if the

provider or supplier knows, before furnishing service that

1.) the beneficiary is a PFFS plan member and

2.) the provider or supplier must know either the terms or conditions of plan

payment or has reasonable access to the terms and conditions of plan payment.



All Providers, deemed or non-deemed are paid at Medicare Allowable amounts



Wellness/Medical Management



Includes incentives to notify Medical Case Management upon diagnosis of certain

classes of illness

Includes 24 Hour Nurse Line

Includes Silver & Fit a structured program to encourage exercise and overall

fitness (Health Club Memberships)

Includes SeniorLink an Elder Care Advisory and Care Management program.

Tiered Management



WellPoint Rating Process

PFFS Fully Insured

Premium Calculation

Savings and Rates

HR projects this program will save retirees

$112,440 annually in premiums

$397,288 annually in deductibles

Total Retiree Savings $509,728

The City will save an additional $800,000 annually

City savings earmarked to help fund GASB 45 liabilities

Total costs: $120.50 per month per member

Before January 1, 2008

Blue Cross/Blue Shield ?1st Impressions? Call Center

For assistance prior to the plans effective date

Dedicated Customer Service Number (after January 1, 2008



Claims Filing Process

Present you new BC/BS MA Card to your provider

Physician

Pharmacy

Hospital

2. Provider will enter new numbers into their system

3. Claims will be filed by the provider to BC/BS

4. Pay your co-pay to the provider

5. No need to file with Medicare first, BC/BS will act as intermediary with

Medicare on your behalf

6. If you have questions, you will have dedicated numbers to call



BC/BS of GA-WellPoint Facts

BC/BS of GA-WellPoint?s 42,000 associates serve 34.9 million members

one in nine Americans has health coverage through WellPoint

In 2006, we handled:

more than 245million medical claims

more than 350 million pharmacy claims

answered more than 62.7 million customer calls

In 2006, operating revenue exceeded $61 billion



SUMMARY:

GASB Liability directly affects an organizations ability to manage long term

financial obligations (i.e. Bond ratings, etc.)



GASB Liability can directly affect the City?s ability continue to provide

Retiree Benefits

Utilization of a fully insured approach to Retiree Medical coverage will

positively affect the organizations GASB 45 liability.



BC/BS of GA/WellPoint has a dedicated Senior Support unit to facilitate cost

effective and efficient implementation and ongoing support.



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TRAINING:



Mr. Jamie Mack then came forward and gave an overview of the Training for

the Columbus Consolidated Government. He highlight the Current Training that?s

being offered, which includes Management Development Program, Proposed Training

and Development, Customer Service, Continuous Improvement (CI), Continuous

Improvement Status



He went into some details outlining the Impact of CI for the future, as

well as the Benefits of Training and Development Training and

Development-Incentive Based or Mandated.



He then highlighted some Current Incentives, as well as pointed out some

Recommended Incentives.



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TRAFFIC CALMING DEVICES:



Deputy City Manager Arrington, along with Mr. Ron Smith of the Public

Services Department gave a brief report on the traffic calming devices that the

City of Columbus is looking at to assist with slowing down speeders in the

community.



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EXECUITIVE SESSION:



At the request of City Manager Hugley, Councilor Baker made a motion to

allow the Council to go into an executive session. Seconded by Councilor

Woodson and carried unanimously by those eight members of Council present at

the time, with Mayor Pro Tem Turner Pugh being absent for this vote and

Councilor Allen being absent from the meeting.



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At ll:30 a.m. the meeting was adjourned to allow the Council to go into an

executive session.



At 12:18 p.m. the meeting was called back to order at which time Mayor

Wetherington pointed out that the Council did meet in an executive session to

discuss a personnel matter, but there were no votes taken.



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With there being no other business to come before the Council, Councilor

McDaniel then made a motion to adjourn. Seconded by Councilor Baker and carried

unanimously by those nine members of Council present, with the time being 12:19

p.m.







Tiny B. Washington, CMC

Clerk of Council

The Council of Columbus, Georgia





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