Human Resources Committee Meeting Douglas County, Nebraska

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1 Human Resurces Cmmittee Meeting Duglas Cunty, Nebraska Mnday, May 18, 2015 The meeting cnvened at 2:01 p.m. in Rm 903 f the Omaha-Duglas Civic Center, 1819 Farnam Street, Omaha, NE A cpy f the Open Meetings Act is lcated n the wall near the entrance f the rm. A ntice f the meeting was published in the May 11, 2015 issue f The Daily Recrd. Cunty Cmmissiners present at the meeting were Mary Ann Brgesn, Mike Byle, James Cavanaugh, Marc Kraft, and Chris Rdgers. Others present at the start f the meeting were Patrick Blmingdale, Je Lrenz, Diane Carlsn, Catherine Hall, Marcs San Martin, Jan Jhnsn, and Karen Cle f Administratin; Karen Buche, Tim McNally, and Kathy Adair f Human Resurces/Civil Service Cmmissiner (HR); Dan Esch f the Clerk/Cmptrller s ffice; Tracy Krause f An; and Cara Kirsch f SilverStne. Cmmissiner Brgesn cnducted the meeting. 1. Discussin n Benefits Cnsultant RFP IT Crdinatr Dianne Wallace entered the meeting during this item. Speaking during this item were Mr. Blmingdale, Cmmissiner Byle, Cmmissiner Cavanaugh, Cmmissiner Brgesn, Cmmissiner Kraft, Ms. Kirsch, Ms. Krause, Mr. Lrenz, Ms. Carlsn, Ms. Adair, Ms. Buche, and Cmmissiner Rdgers. Highlights frm the discussin included the fllwing: Mr. Blmingdale said the Cunty is currently in its furth year f using An as its benefits cnsultant. Mr. Blmingdale said the Cunty pays An abut $35,000/year. Mr. Blmingdale said An s cntract expires n June 14, Mr. Blmingdale said the Cunty Bard decided t d an RFP fr a benefits cnsultant. Ms. Carlsn said the RFP was fr a three-year bid. Mr. Blmingdale said the RFP received respnses frm three cmpanies: An SilverStne The Creel Grup Mr. Blmingdale prvided a handut with infrmatin abut the prpsals received frm An, SilverStne, and The Creel Grup (see Attachment #1). This handut included these cmpanies prpsed fees, names f sme f their staff members wh d wrk n the Cunty s accunt, and a list f sme f their clients. Mr. Blmingdale said a review cmmittee was set up cnsisting f himself, Ms. Carlsn, Mr. Lrenz, Ms. Buche, and Ms. Adair. Mr. Blmingdale said the review cmmittee interviewed An and SilverStne. Mr. Blmingdale said An and SilverStne bth did a great jb interviewing.

2 The prpsed fees frm An and SilverStne were the fllwing: Year One An: $37,000 SilverStne: $30,000 Year Tw An: $38,110 SilverStne: $30,900 Year Three An: $40,000 SilverStne: $31,800 Mr. Blmingdale said the staff recmmends selecting An. Mr. Blmingdale said the Cunty wuld save between $7,000 - $8,000 per year with SilverStne, but in staff s mind that wasn t enugh t prpse changing cmpanies. Mr. Blmingdale said Ms. Krause (f An) has dne a great jb fr the Cunty. Mr. Blmingdale said in his time, this is the first time an RFP was dne after the first g arund with a cmpany the Cunty Bard was happy with. Cmmissiner Brgesn said she s inclined t g alng with staff s recmmendatin because there wasn t an issue with being unhappy with An s services. Cmmissiner Byle said he believes the Cunty Bard ught t make a change. Cmmissiner Byle said the purpse in ging ut fr a bid was t see if the Cunty culd get a better price. Cmmissiner Byle said bth cmpanies are prfessinal, extremely cmpetent, and d the kind f wrk the Cunty needs, but SilverStne gave the Cunty a better price. Cmmissiner Byle said the Cunty Bard ught t take advantage f the chance t save mney. Cmmissiner Kraft said he agreed with Cmmissiner Byle. Mr. Blmingdale said there is a cmfrt level with An, and he desn t think the Cunty wants t lse that, particularly since there is wrk needed t be dne with premium equivalencies in abut tw mnths. Mr. Lrenz said what he gets wrried abut is the learning curve. Mr. Lrenz said if there s smething that isn t learned r cmmunicated, the savings frm a lwer bid can g in a heartbeat. Mr. Lrenz said the Cunty has sme majr prjects ging n and is in midstream n a lt f things. Mr. Lrenz said when decisins are made, it usually invlves lking at things that can save the Cunty at least six figures, smetimes seven figures. Mr. Lrenz said when lking at the ttal perspective, he gets very cncerned abut what culd happen in midstream n a transitin, and it culd end up csting the Cunty.

3 Mr. Lrenz said his recmmendatin culd be different if the Cunty was at the starting line, but it s the fact f where the Cunty is and what the Cunty has ging n. Cmmissiner Byle said he desn t think there is a learning curve. Cmmissiner Byle said bth cmpanies have the depth and are cmpetent. Ms. Krause said in An s RFP, An did agree t negtiate a perfrmance guarantee n their prpsed fees. Ms. Kirsch said SilverStne s RFP included the names f the rest f their team the Cunty wuld have access t. Mr. Blmingdale said An s did as well. Cmmissiner Byle said he d like t see the ther names listed by An and SilverStne. Cmmissiner Cavanaugh said he d like t reach ut t sme f the cmpanies served by An and SilverStne befre making a decisin. Cmmissiner Cavanaugh said he s inclined t g alng with staff s recmmendatin, but he d like t have the pprtunity t make thse cntacts. Cmmissiner Cavanaugh asked Ms. Krause and Ms. Kirsch t prvide Mr. Blmingdale with cntact infrmatin fr their clients. Cmmissiner Brgesn said she liked Cmmissiner Cavanaugh s idea. Cmmissiner Brgesn said Mr. Blmingdale can cntact thse ther clients, and then reprt back t the Cunty Bard with what his findings are. 2. Discussin n Wrkers Cmpensatin RFP Speaking during this item were Mr. Blmingdale, Cmmissiner Brgesn, Mr. Lrenz, Cmmissiner Byle, Ms. Jhnsn, Cmmissiner Cavanaugh, Ms. Wallace, Ms. Buche, and Cmmissiner Kraft. Highlights frm the discussin included the fllwing: Mr. Blmingdale said the decisin was made t g with a third party administratr fr wrkers cmpensatin. Ms. Jhnsn, current Wrkers Cmpensatin Crdinatr, will be retiring smetime in the near future. Mr. Blmingdale said if the Cunty hired smene t replace Ms. Jhnsn, the Cunty wuld have t purchase a sftware prgram, which wuld be in the high six figures. Mr. Blmingdale said the Cunty did an RFP fr a third party administratr and received prpsals frm: Creative Risk Services EMC Risk Services NRMA, Inc. Mr. Blmingdale prvided a handut with infrmatin abut the prpsals received (see Attachment #2).

4 The qutes received fr annual claims csts were the fllwing: Creative Risk Services: $71,000 ($39,000 fr indemnity, $32,000 fr medical nly). EMC Risk Services: $71,000 ($51,000 fr indemnity, $20,000 fr medical nly). NRMA: $93,000 ($60,000 fr indemnity, $33,000 fr medical nly). Mr. Blmingdale said the three vendrs have either an annual administratin fee r a set up fee, as well. Mr. Blmingdale said there is an annual administratin fee prpsed by EMC Risk Services f $2,750, and the Cunty wuld pay that every year. Mr. Blmingdale said this includes reprts, user access, and a licensing fee. Mr. Blmingdale said Creative Risk Services is prpsing a ne-time set up fee f $10,000. Mr. Blmingdale said this fee basically serves the same purpse as EMC Risk Services annual administratin fee. If the Cunty did a cntract with Creative Risk Services and that cntract was extended, Mr. Blmingdale said there wuld nt be a re-impsitin f the $10,000 fee. NRMA had set up fees, but the fees were prvided in hurly rates. Mr. Blmingdale said all three cmpanies prvided demnstratins f their sftware systems and they were all impressive. Mr. Blmingdale said in additin t NRMA s csts being cnsiderably mre, the backup fr all f the electrnic data is dne at a NRMA emplyee s huse. Mr. Blmingdale said this was revealed during the interview prcess. Ms. Wallace said Creative Risk Services and EMC Risk Services were slid in their data prcessing practices. Ms. Wallace als said bth cmpanies have been n their sftware fr a lng time, and they re very experienced with their sftware. Mr. Blmingdale said the recmmendatin is t g with EMC Risk Services. Mr. Blmingdale said he relied heavily n Ms. Jhnsn, and Ms. Jhnsn recmmends EMC Risk Services. Ms. Jhnsn said EMC Risk Services president is very available t talk at any time. Mr. Blmingdale said EMC Risk Services sftware is mre updated and they als have a hspital as a client. Ms. Wallace said the Cunty will nt have t buy any hardware, the third party administratr wuld take care f that. Mr. Blmingdale as sn as the third party administratr culd be put in place, Ms. Jhnsn wuld g part-time. Mr. Blmingdale said every third party administratr requires having smebdy in-huse that can act as an access between them and the emplyees. Ms. Wallace said the third party administratr will prvide training and prvide Ms. Jhnsn access t their data.

5 Mr. Blmingdale said nce Ms. Jhnsn has been wrking part-time fr a while, it ll be knwn hw much wrk this will actually entail. Mr. Blmingdale said there will likely be a request t hire a part-time persn, unless it s nt very much wrk, then it culd be assigned t smene with the Cunty already. Ms. Jhnsn said the third party administratr will nt make a determinatin f cmpensability. Mr. Blmingdale said the third party administratr can make a recmmendatin t the Cunty, but the ultimately it s the Cunty wh decides. Ms. Jhnsn said all indemnity payments are ging t have t be made frm the Cunty. Ms. Jhnsn said the Cunty will prcess current claims, and the third party administratr will handle all new claims. Ms. Jhnsn said n the date the third party administratr starts, the third party administratr will take claims frm then n. Ms. Jhnsn said the Cunty has three pending PTSD claims frm Crrectins. Cmmissiner Cavanaugh said he d like t reach ut t sme f the references listed by the vendrs and see if thse references wuld indicate hw much they pay per claim n indemnity r medical nly. Ms. Jhnsn said she did call references and the peple she spke t didn t want t share that infrmatin. Mr. Blmingdale said a cntract with EMC Risk Services culd be presented fr the Cunty Bard s cnsideratin. As far as the terms f the prpsed cntract, Mr. Blmingdale said it culd be fr as lng as the Cunty Bard decides. Mr. Blmingdale said generally the Cunty Bard des three-year terms. Cmmissiner Cavanaugh said he wuld like t review sme mre infrmatin befre frmally revisiting this item. 3. Other business. Speaking during this item were Cmmissiner Byle, Ms. Kirsch, Ms. Krause, Mr. Blmingdale, Cmmissiner Brgesn, Cmmissiner Kraft, Ms. Buche, and Ms. Adair. Highlights frm the discussin included the fllwing: Ms. Adair gave an update n the dependent audit and the scial security dependents. Ms. Adair said there are tw emplyees wh have nt cmplied with the scial security numbers fr their dependent. Ms. Adair said there were at least five ntificatins sent ut. Ms. Adair said thse dependents will be terminated ff the cverage. Ms. Adair said regarding the dependent audit, arund 300-plus dependents had nt been verified as f the end f the previus week. Ms. Adair said at least five ntificatins have gne ut frm An. Ms. Adair said n May 20 th, she will receive a list f thse wh have failed t cmply.

6 Ms. Adair said HR will send ut a letter t thse emplyees ntifying them that their dependents will be remved frm cverage n May 31 st unless the apprpriate dcuments are received by then. The meeting adjurned at 3:12 p.m.

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