HomeMy WebLinkAbout8/29/1983Monday, August 29, 1983
The Board of County Commissioners of Indian River
County, Florida, met in Special Session at the County
Commission Chambers, 1840 25th Street, Vero Beach, Florida,
on Monday, August 29, 1983, at 10:00 o'clock A.M. Present
were Richard N. Bird, Chairman; Don C. Scurlock, Jr., Vice
Chairman; and Patrick B. Lyons. Absent were Commissioners
Margaret C. Bowman and William C. Wodtke, Jr., who were out
of town. Also present were Michael J. Wright, County
Administrator; Gary_ Brandenburg, Attorney to the Board of
County Commissioners; Jeffrey K. Barton, OMB Director; and
Virginia Hargreaves, Deputy Clerk.
The Chairman called the meeting to order and led the
Pledge of Allegiance to the Flag.
MEDICAL INSURANCE PROGRAM FOR COUNTY EMPLOYEES
Chairman Bird announced that the Special Meeting was
called to continue discussion and reach a decision regarding
medical insurance. Staff has submitted the following memo,
and the Chairman asked if the Board had any additional
questions of staff or the representatives of Aetna or Gulf
Life Insurance Companies:
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TO: The Honorable Members of DATE: August 29, 1983 FILE:
the Board of County Commissioners
THRU: C. B. Hardie Jr. Ph. D. GROUP HEALTH & LIFE INSURANCE
Asst. to County Admin./ SUBJECT.
GENERAL SERVICES DIVISION
FROM: JLois 'Hoder REFERENCES:
Personnel Manager
After several discussions with the two low insurance bidders,
Aetna C.$ S and Gulf Life, the staff considered the following:
1. Duplicate the coverage now in existence with Plan "A"
of the Gulf Life Insurance and use the "ASO Plus"
Funding arrangement (family plan monthly premium
$157.89).
2. Accept Plan "B-2" bid by Aetna C & S (family plan
monthly premium $151.91 and So. Co. Fire family
premium at $134.65). This would mean no interruption
to present personnel and handling of claims, thus
eliminating a lot of paperwork and processing of
direct claims. Aetna also has a split funding plan
whereby County could save money on their cash flow.
3. Accept Plan "B", "ASO Plus" Funding arrangement of
the Gulf Life Insurance (family plan monthly premium
$133.80). Accept life insurance rate at 56¢ per
$1,000 and if feasible, implement one times annual
earnings life insurance within three (3) months of
contract date.
Gulf Life to meet all specifications as discussed
in workshop meeting of August 25, 1983.
Staff also recommends that the pooling point be
increased to $50,000 to further lower the.yearly
costs.
Staff recommends that the low bid of Gulf Life, Plan "B"
be accepted by the Board
Commissioner Scurlock believed we have an obligation
to encourage competitiveness and look seriously at a
legitimate low bid. It appears that one of the bidders is
about $20,000 lower and he wished staff to confirm whether
that is the case or not since there appears to be some
question as to whether the month of September will be
continued at the same rate if that particular carrier is not
granted the coverage. He felt this needs to be answered.
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Dr. Hardin asked the representative of Gulf Life, Louis
Schlitt, if they can provide coverage effective 9/1/83,
including all the paperwork that goes with it, and Mr.
Schlitt confirmed that they could do so.
Dr. Hardin stated that if they can do that, he would
say the figure of $20,000 difference is correct.
OMB Director Barton noted that there is a difference
depending on whether you go straight premium or the ASO
method, and under the ASO method, he would like a response
from the Gulf Life agent as to his interpretation of how
something is handled vs. the way Aetna handles it Under
the ASO Plan, we pay approximately $10.00 per contract per
month less in premium, butunder the Aetna plan if you are
in month 3, you multiply the monthly charge times the number
of people times the number of months that you are in and
there is a stop -loss that slides -along month by month as to
the maximum you are going to pay out at any given period of
time. Under the Gulf plan, it appears if we get into month
2 and the losses are there, we havecommittedto pay up to
the maximum of the annual premium as to stop loss. It does
not move along on the monthly premium.
Mr. Schlitt confirmed that is correct - the only
limitation is the $25,000 per claim limitation.
Administrator Wright noted that, in other words, there
is a call provision on their premium.
Chairman Bird commented that it seems there is a
difference in the two plans then, and Mr. Barton agreed.
there is as to exposure.
Louis Schlitt, representing Gulf Life Insurance Co.,
informed the Board that historically the claims do not
appear to be excessive in the very beginning and we would
probably be in the third month -before there are any claims
at all. He personally felt that there is practically no
change of reaching the maximum being discussed as it could
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only result from a catastrophic situation wherein everyone
either got sick or was—in an accident in the first three
months of the policy year.
Administrator Wright asked if Gulf Life would consider
stop loss on a monthly basis, and Mr. Schlitt stated they
could not—get them to do that.
OMB Director Barton stated that he felt he had a
responsibility to let the Board know that the possibility
they could be exposed to the maximum premium does exist.
Chairman Bird wished to know if we go with either of
the plans and continue to utilize their people for most of
the paperwork for the processing of claims as we have been
doing, whether Dr. Hardin felt that we could go another year
without having to add additional personnel to handle
insurance claims at the county level.
Dr. Hardin stated that it would require some extra
effort, but he believed it could be done.
Administrator Wright compared basic rates, noting that
Aetna is $7.00 higher per month on the family rate and $5.00
on the single rate. He asked what additional administrative
work would be required beyond what we are doing now if we
went to Gulf Life, and Dr. Hardin stated that all we need to
do is verify employment.
Mr. Wright felt that is not a big problem, and
commented that there are some other minor differences, but
the policies are about 95% similar.
Commissioner Scurlock noted that Aetna is registered in
every state and Gulf Life is not and wished to know if that
would pose any problem.
Administrator Wright explained that they pay off in all
states; they just do not sell their policies in some states.
Chairman Bird was concerned about the employees' point
of view as to claims processing and asked what would happen
to claims in.process if we went with the new company on
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September lst, i.e., would Aetna continue to pay on that
illness through its cure or is there some stop point where
the new company takes over ?
Dr. Hardin stated that there is a period where they are
phased out, and he did not anticipate any problem in that
area. He felt staff would be talking to our people more and
explaining to them a bit better. He confirmed that we have
not had any problems with processing of claims by Aetna;
they have been very good.
Commissioner Scurlock commented that we are dealing
with an unknown; we know what we have and must figure what
it is worth not to have to make the change.
Commissioner Lyons wished to be sure that an employee
filing a claim with Gulf would receive the same benefits
back as they would on a claim filed with Aetna. He cited an
instance where he was covered by two insurance companies,
and because he went to one first rather than the other, he
got only $16.00 instead of about $100.00.
Mr. Schlitt agreed that payment of claims is the most
important thing. He felt in Commissioner Lyons' case where
he had to file separately, he probably had different type
benefits or otherwise he should have gotten the same check
from either company. Mr. Schlitt did not believe there is
any problem in switching since the industry is pretty well
coordinated as to that. He assured the Commission of the
cooperation of the local office and believed Gulf Life would
respond equally effectively.
Bob Allen of the South County Fire Department was
concerned about hidden factors and wished to know if Gulf
Life pays for blood and whether the deductible covered all
the family or must be reached by an individual in the
family.
Mr. Schlitt pointed out that Gulf Life's proposal was
submitted based on a set of specifications given them by the
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County staff, and he believed that staff has done an
excellent job of developing the plan and making sure the
benefits are as equal as possible.
Dr. Hardin believed the coverages are the same. He
explained that we are looking at a deductible of 200/400 to
be reached by the family as a unit.
Chairman Bird asked if Dr. Hardin envisioned that we
are going to go through this bidding on an annual basis as
he felt it could become chaotic if we kept changing yearly.
Dr. Hardin reported that staff had tried to negotiate
with Aetna, giving them ideas they thought would help them
reduce our costs, but in his estimation, Aetna did not
cooperate with this until we actually went out to bid. He
believed we would not have had to get to this point if Aetna
had been willing to sit down and negotiate.
Duncan Chalmers of the Zeuch Agency, representing
Aetna, commented that their contract ran from 9/1/80 for a
three year period, and he believed the political body had to
go to bid in a three year period. He stated the only
problem they ran into was that they were asked to quote
rates all the way to 1/1/85; this would require about 20
months of rate guarantee and they would have had to pump in.
about 1h$ - 2% per month for inflation. As to negotiation,
he stated that they did have an official from Aetna come
down from Hartford who wished to have an opportunity to have
a few hours with the administration, but they only got to
the first point when it was decided we had to go to bid.
Administrator Wright informed the Board that when Aetna
said there would be a 77% rate increase, it was his decision
we had to go to bid.
Commissioner Lyons asked Mr. Wright for his
recommendation, and Mr. Wright believed the policies are
very similar. He felt we have a very good bidding process
and believed the price speaks for itself.
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Commissioner Scurlock stated that if there was only a
$3,000 differential, he would prefer to stay with Aetna as
he felt the knowledge of how they will perform is worth that
much. However, the differential is $20,000, and he,
therefore, felt we have no alternative. He pointed out that
Gulf Life is dealing through a very reputable agent and they
are not really a dark horse.
.Chairman Bird agreed that if he could narrow the gap,
he also would be inclined to stay with Aetna.
Mr .Chalmers stated that he would concede on Plan B
there is a $19,000 difference, but he wished to point out
there there are some differences in the plans that must be
considered:
- 1)- the question of.100% co-insurance payment in the second
year. The current plan assures an employee that he stays on
100% the second year and doesn't have to start all over
again on an 80/20 basis, i.e., if you hit the $5,000 level
in a given year, you are then on 100% and it carries over,
but with Gulf Life it starts all over again the next year.
Mr. Chalmers felt that factor is worth between $6,000 and
$9,000.
2) the area of pre-existing conditions for an employee or
his dependents. Mr. Chalmers noted that Aetna has a little
different philosophy on this. You obviously don't want to
be in a position where you are going to hire a new employee
with areal major problem where the County will get stuck
with a $100,000 claim, but you don't want to have to hassle
the employees too much either. The policy states that if
you have a condition you were treated for in the 90 days
prior, you have a pre-existing condition and if your
expenses go over $4,000, that clause will be invoked. Aetna
allows the $4,000, and this eliminates a lot of hassle.
Gulf Life does not pay anything in such cases
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3) re the percentage paid to the agency, Mr. Chalmers noted
that the Zeuch Agency has a service contract with the School
Board, the City of Vero Beach, the County, and the Hospital
District, and this allows them to have the expertise in
their office to help the claimants who come directly to
their of --ice. Mr. Chalmers believed that five or six County
people a week come to their office and they handle 20 or
more phone calls. He felt that all the public bodies have
benefited from their service.
Commissioner Lyons believed that Gulf Life had said
they would include the co-insurance feature for an
additional $5,000, but Mr. Schlitt explained that they had
evaluated this feature but could not add it.
Commissioner Lyons had questions relating to the
provision -for having cosmetic surgery within 12 months of an
accident, and wondered if this is a fair limitation in some
circumstances.
Mr. Schlitt noted that this is a cost containment
provision. Sometimes people have had an accident or illness
and don't decide to do anything about it for several years;
their policy would not respond to that. In the case of
severe burns, for instance, where the surgery is not
medically feasible within this time, he felt you could get a
decision from the underwriter to continue the case for an
agreed period of time. Mr. Schlitt did not believe cosmetic
surgery is covered unless it is the result of an accident.
Chairman Bird at this point wished to enter into the
record a memo from Commissioner Wodtke speaking in support
of remaining with Aetna. Said memo is as follows:
M
Board ot
TO: Commissioners County DATE: ugus FILE:
SUBJECT: medical Insurance
Coverage
FROM: William C. Wodtke, jr.REFERENCES:
Commissioner , _
After reviewing the proposals at our recent workshop, I feel the
two proposals of Aetna and Gulf Life are extremely similar,
however, I feel changing from our current carrier to a new
carrier at this time would not be in the best interest of our
employees. I have not been able to find any indication that
there are any problems as far as claims or response from the
Aetna Life and Casualty representatives.
Although there is a slight differential in cost, I feel it is
offsmt by the fact that Aetna is also the carrier for the City of
Vero Beach, Hospital District and School Board District, and I
foresee the possibility.. in the future of an agreement being
reached between the County entities for a pooling system of funds
that could benefit all Indian River County taxpayers.
I believe Gulf Life is a good and reputable firm, but for the
small difference in dollars; the excellent service we have
received from Aetna, and knowing there is only a few insurance
companies that are continuing to write insurance coverage, I feel
we should stay with our current carrier, Aetna Life and Casualty.
This would allow our employees to continue working with the same
insurance representatives and using the same forms they have been
using for the last 3 years.
We will not have the confusion of employees requiring doctors or
hospital representatives to break down their medical expenditures
from one carrier to the other during the transition period.
As for the ASO consideration, the discussion that I heard at our
workshop causes me not to be interested in the ASO provisions,
however, I am aware of other payment.methods similar to the
method being used by one of the county governments that allows
the insured to pool their premiums and earn substantial interest
that could, in the future, be used to help reduce overall cost or
necessary personnel.
In summary, I am very pleased with the presentations made by Gulf
Life and Aetna, but I do feel they are so close that we could
select either company. Our experience with Aetna and the
convenience of our employees, and knowing the service we have
received in the last 3 years, it is my recommendation to stay
with Aetna Life and Casualty Company.
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AUG -29 1983 0009 54 PAGE
Dr. Hardin believed that the pre-existing feature for
new employees discussed by Mr. Chalmers could be provided by
Gulf Life without charge, and this was confirmed by Mr.
Schlitt.
Chairman Bird agreed the plans are very similar, but he
had a strong feeling that some of the features of the Aetna
policy and the previous experience we have had with them
must be given a value, so that there is not actually a
$19,000 gap. He noted that we have indicated to our
employees there probably will not be any salary increase
this year, and he was reluctant to do that and in addition
confront them with a new insurance company in which they may
not have as much confidence. Although competitive bidding
is good, the Chairman noted that if it is done too often, it
can work in reverse, making companies reluctant to bid on
something so complex if they will only be sure of having it
for one year.
Skip Eynon, representative of Aetna, discussed the 3%
premium difference, or $19,000 differential, noting that if
they eliminated their co-insurance second -year carry-over
benefit and quoted on the same basis as Gulf, that would be
a 1% reduction in premium, and to add the mandatory second
surgical opinion is another 1% reduction. Mr. Eynon noted
that it all comes down to claims and expenses in the long
run and eventually will work out to the same cost for either
company. He therefore, believed that the level of service
provided is an important factor to consider.
Commissioner Lyons believed that competitive bidding is
good and provides an opportunity to really evaluate what we
have and/or might have. It does present a problem, however,
because there are so many factors to consider. He
personally felt there are three things that made up his mind
in favor of Aetna:
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1) the lack of a limitation period on cosmetic surgery;
2) the co-insurance carry-over feature; and
3) the fact that he has never heard any complaints
about the service County employees have had.
He, therefore, believed the present coverage is working very
well.and felt the price differential is not that much.
Administrator Wright brought up the point that we have
on-going negotiations with the Fire Fighters and wished to
know if our rates are guaranteed in the event we should
exclude them from the group, and what the insurance rate for
their group would be.
Mr. Eynon of Aetna stated that they will keep the rates
for the fire fighters where they are, not to extend beyond
October 1st, however, and they will guarantee the rate to
the rest of the group.
Mr. Schlitt confirmed the Gulf rates would also remain
the same.
Commissioner Scurlock stated that he is somewhat in the
middle. From a personal standpoint, he is drawn towards
Aetna since he has had dealings with them, but there is a
$19,000 differential. He felt the bidding process is here
for a reason, and since the plans are the same with minor
differences and Gulf Life is the low bidder, and especially
in view of the funding cuts we -have had to make this year,
he believed we have to go with Gulf.
Commissioner Lyons did not see this as quite a $19,000
difference because he felt we have to put some value on the
differences just discussed..
Commissioner Scurlock felt we would be sending out a
message that will discourage competitive bidding if we do
not go with the low bid.
Commissioner Lyons did not -agree. He believed this is
the first time. he has actually seen a comparison of any
kind, and he finds it difficult to evaluate the differences.
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Administrator Wright noted there is one thing which has
not been discussed. We-have budgeted in the neighborhood of
$154 monthly for family coverage. We are reducing
coverages, and from an employee's standpoint, one of the
trade-offs he wanted to make was to increase the life
insurance -benefits to at least one times annual salary. He
continued that if we go with the low bidder, we are within
$5,000, from the taxing district budgets, of being able to
provide the health coverage plus life insurance at one times
salary.
Commissioner Lyons did feel life insurance is important
and asked what it would go to.
Administrator Wright stated that we now pay for $5,000
life insurance and it would go to one times salary. We can
do it with either, but with Aetna, it would be about $19,000
more to increase the life insurance benefit. Mr. Wright
stated that life insurance money is about the same either
way we go - one costs 56� per thousand and the other 601�.
Gulf is cheaper, and he believed it is a $19,000 split.
Mr. Barton pointed out that the present proposals are
both based on $5,000 of life insurance, and he would expect
either company to come down from those figures.
Mr. Chalmers noted that there are larger amounts of
life insurance on your young executives in the county, and
it is anticipated that the unit rate would drop, but in
checking the payroll on an annual basis with Mr. Barton, it
appears that life insurance at one times salary would work
out to roughly five million dollars of life insurance
opposed to 2.5 million currently. He believed this came to
about $1,500 a month or $18,000 a year, and if it was done
on January 1st as proposed, he was led to believe that
$12,000 would put them within the budget figure.
Mr. Wright stated we are paying in life insurance now
about $9,000-$9,300. He continued that he would like to
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have the life insurance option. He felt it is important to
give the employees something back from what we have taken
away.
Chairman Bird believed the employee might prefer the
benefit while he is alive.
Commissioner Lyons stated that he felt the life
insurance factor added a plus to the other side and he
believed we should switch to Plan."B", Gulf Life, although
he did not like their co-insurance feature.
Administrator Wright felt from the management
standpoint, you are going to pay for that feature in the
long run.
MOTION WAS MADE by Commissioner Lyons,
SECONDED by Commissioner Scurlock, to
accept the low bid of Gulf Life, Plan "B"
as recommended by staff.
Commissioner Scurlock asked if the Chairman would
rather wait to take action until the full Board can be
present.
Chairman Bird did not believe we have the time to
wait. He did feel that it is unfair to deal with something
of this magnitude with several members of the Commission
absent, but felt we have no choice.
Property Appraiser David Nolte informed the Board that
the impression he has gotten from most of his employees is
that the change would be a traumatic experience, and they
would prefer to stay with Aetna. There are 27 people in his
group, and they have had a very positive relationship with
Aetna.
Commissioner Lyons wished to know if Mr. Nolte's 27
people would be accommodated if they wished to stay with
Aetna, and Mr. Eynon agreed they could be accommodated.
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Administrator Wright asked what will happen to Aetna's
rates on September 1st if the Board does not make a decision
today, and Mr. Eynon confirmed that the rates would go up.
Commissioner Lyons wished to know if Gulf Life's rates
would remain the same if the people in the Property
Appraiser's office were not included, and Mr. Schlitt did
not believe that would affect the rates at all. He felt
people are always concerned where there is any change. He
recognized that service and coverage are important, but
believed they definitely could overcome the objections and
concerns of the County personnel. Mr. Schlitt emphasized
that, as a taxpayer, he felt the bidding process was very
important to keep.
Mr. Chalmers stated that if the Property Appraiser were
to pull out of the policy, the unit rate Aetna has quoted
would stand. The County rate would not change; the Property
Appraiser's would have to be evaluated, of course. He noted
that the fire fighter's rates are lower than the rest of the
county, which means a savings to the County Commission. He
believed that it is planned to put on another 20 or so fire
fighters later in the year, and this is going to minimize
some of that effect because their rates are lower. He also
wished to remind the Commission of one important fact which
is that while Aetna does not have a commitment to hold to
the old rates through September if they lose the bid, they
do have such a commitment if they are awarded the bid, and
that means about $10,000 savings right there. As far as
life insurance is concerned, he noted that rounded at $1.,000
over salary is what Aetna has been pushing for the last two
years, and he wished to make sure that everybody understands
that it is in both policies.
Dr. Hardin commented that the premium we are talking
about is an annualized premium taking into consideration the
fire fighters' rates.
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Discussion ensued on the Motion to accept Gulf Plan "B"
as recommended, and Administrator Wright requested that the
Motion be expanded to include life insurance at one times
annual salary rounded to the highest thousand, and Attorney
Brandenburg asked that it also contain the provision that
the rate will remain the same regardless of union
negotiations with the fire fighters. Commissioner Lyons and
Scurlock concurred with these inclusions.
THE CHAIRMAN CALLED FOR THE QUESTION with
.the additions as stated above. It was voted
on and carried 3-0 with Commissioners Bowman
and Wodtke being absent.
Administrator Wright commented that he believed it will
be necessary to add an additional employee to handle the
newly approved ASO funding arrangement.
Commissioner Lyons felt we just got through saving
$19,000 and did not feel we would have accomplished any
saving if we turn around and hire a new employee.
Administrator Wright pointed out that if we go to the
ASO Plan the premium will drop, and OMB.Director Barton
confirmed that we will save $10.00 a month for a family plan
and $5.00 a month for a single plan, or about $35,000, but
we will need to hire one person. He stated that he intends
to bill all the entities involved once a month and put it in
a pool.
Commissioner Lyons wished to know what the new employee
would do.
Dr. Hardin stated that he would foresee doing about the
same as we are now, but each claim would come through
personnel, and either he or Mrs. Hoder would have to sign
the forms and determine they are legitimate.
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Commissioner Lyons questioned the need to pay $18,000 a
year to have someone sign 250 forms.
Mr. Schlitt stated that more is involved than just
paying a monthly bill. He explained that basically the ASO
funding plan would enable the county to utilize its funds
and inve-st them for a longer period of time, i.e., they
would collect the money from the various departments on a
normal basis, invest these funds, and pay the insurance
company as the funds are needed. This will require a closer
check on what is needed, and there is more administrative
work involved.
Chairman Bird suggested that we just approve the ASO
concept and then handle the personnel matter after this can
be evaluated better. He believed we would have a hard time
justifying this new position without a detailed job
description.
Administrator Wright concurred that we should try the
new procedure with existing staff, and then if they find
justification for new personnel, staff will come back to the
Board.
ON MOTION by Commissioner Scurlock, SECONDED
by Commissioner Lyons, the Board by a 3 to 0
vote, Commissioners Bowman and Wodtke being
absent, agreed to accept staff's recommendation
to go with the Gulf Life ASO Plus funding
arrangement without hiring an additional em-
ployee at this time.
REPORT ON CRIMINAL JUSTICE COMPLEX SITE
Administrator Wright reviewed a map of the various
parcels and discussed approaches, height restrictions, etc.
He stated that the only height problem might involve an
antenna. He noted that the Graves and Barnes property are
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both outside the City limits, and the City has said that
they prefer not to sell any property; they are willing
however, to give a right of first refusal on the ten acres
on a lease basis. Administrator Wright further noted that
there is a production well on one tract, and if a'30 acre
site were desired, that would have to be considered in the
negotiations.
Attorney Brandenburg confirmed that the City is not
willing to sell the ten acres immediately south of the
Graves tract, but they will extend a first right of refusal
on a written agreement for 20 years. This is subject to
City Manager Little checking with their engineer that
building on that site would not adversely impact the City's
wells. With respect to the 30 acres located between the
clear zone which fronts on the east side of 43rd Avenue,
they again would not sell this, but would give the County 20
acres under a 99 year lease for 1.0% of fair market value per
year under FAA standard lease provisions and give a first
right of refusal on the remaining 10 acres. With respect to
the property on the west side of 43rd, the City again would
not sell, but would lease 20 acres on the same conditions
and give a first right of refusal on the other 10. One
Councilman indicated he felt very strongly that area should
be reserved for future use as a golf course, but there was a
3 to 1 vote in favor of extending the option to the County.
The Administrator noted that all leases probably would
contain an escalation clause.
OMB Director Barton then evaluated leasing as opposed
to outright purchase, stating that in all discussions with
the Finance Advisory Committee, the initial step was to go
to the voters asking them to wrap around the existing Beach
Bond issue to come.up with two having a ten year level of
debt service. He therefore, figured based on a ten year
period to determine what the payment would be yearly to
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lease the 10 acres versus what it would be if they were
included in the bond issue to buy at the same figure. Under
the lease arrangement, Mr. Barton stated that he would have
to fund an escrow account today in the amount of $66,300 to
provide the future stream of money when it was needed.
Under the -outright purchase, he would have to fund an
account with $64,700. He pointed out that the lease goes on
for 99 years, however, and this is only using the 10 year
analysis.
Chairman Bird asked if we went with 20 acres, whether
we could go ahead with our preliminary planning and building
and hold the 10 acres in reserve for future planning.
Commissioner Lyons agreed this could be done. He
reported that as far as the Facilities Committee is
concerned, the Graves property received their approval -
where the adjoining property is, is another matter and we
need to know where the City's wells are.
Administrator Wright reported that we have that
information, and the only well that comes into play is the
one production well.
Commissioner Lyons believed that the only problem with
the 10 acres is the right-of-way, and Administrator Wright
agreed there is a 60' right-of-way for electric
transmission; the two properties, in essence, are split by
the right-of-way.
Administrator Wright then pointed out that there is an
additional funding issue to be considered. If we lease the
property, he did not believe we can include that cost ;in the
bond issue because of arbitrage problems whereas if we buy
the property, we can include it.
Commissioner Lyons agreed there are several factors to
be considered but whatever we do, he believed we should buy
the Graves property. He noted there is always the
possibility that we could do nothing with the Barnes
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property right now and then when we need our additional 10
acres, we can either go to the airport property or go to
condemnation.
Administrator Wright felt the 10 acres actually is
needed for the courthouse in the future; the jail and
sheriff's complex will fit adequately on the 20 acres.
Chairman Bird wished to know if we would be able to
obtain a rear entrance off of 43rd Avenue with the utility
right-of-way that exists now. He felt the more accesses the
better.
Public Works Director Davis stated that it seems to be
a multi -use easement, and he did not believe there would be
any problem using it for other purposes. He suggested that
this be clarified in an agreement.
Commissioner Lyons noted that our option agreements run
until next Wednesday. He was not sure when he asked for
this to be on today's agenda whether or not we might have to
take some action with the City before their Council met. He
felt we might ask our Attorney to prepare an agreement for
the 10 acres southofthe Graves property and also ask him
whether he wants to get involved in the access question now
or not.
Attorney Brandenburg felt we can review what access is
available. He believed the City has some forms they will
want to use on the first right of refusal, and stated he
will try to have this by next Wednesday.
Commissioner Lyons noted that he would like to expand
the amount of property on which we can get a first right of
refusal to more than 10 acres.
It was agreed that action on the Graves contract can
wait until the next regular meeting at which time we should
have a full Board present.
Frank Zorc noted that the City offered the County 30
acres on either side of 43rd Avenue and wished to know what
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Q OK 4 PAGE 498
decision the Board is making on that. He felt that a 99
year lease is tantamount to a purchase.
Mr. Zorc was informed that the Board is riot making any
decision on this matter today. It was pointed out there are
many factors to consider in regard to funding, etc.
There being no further business, the Board upon Motion
duly made, seconded and carried, adjourned at 11:50 o'clock
A.M.
ATTEST:
JL -242 OL,
-1.2 -
Clerk
--s
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Chairman
a,