Committee Report - Finance - 8-4-11 — File 191793

August 4, 2011 Finance Committee Page 1 of 2 Printed 8/11/2011 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present John M Connolly Alderman At Large Present Rebekah Gewirtz Ward Six Alderman Absent Thomas F. Taylor Ward Three Alderman Absent William M. Roche Ward One Alderman Present Sean T. O’Donovan Ward Five Alderman Present Joseph Curtatone Mayor Present Janice Delory Chief of Staff Present Omar Boukili Adminstrative Assistant Present Frank Wright City Solicitor Present Dave Shapiro Assistant City Solicitor Present Robert Collins Assistant City Solicitor Present Sarah Kloos Director of Personnel Present Michael Meehan Director of Communications Present Pat Haraden Consultant, Longfellow Benefits Present 191787 - Requesting to amend the city’s health insurance benefits by transferring to the Group Insurance Commission (GIC).: Chairman Heuston read a communication from Alderman Gerwirtz, who stated that she is disappointed with the process (regarding the GIC proposal) and that she would be out of state when the next meetings are held on this matter. Mr. Shapiro submitted a letter regarding the “Rule of Necessity” and reviewed the provisions of the State Ethics Commission’s Advisory 05-05, dealing with this rule. This rule may need to be invoked in order for members of the Finance Committee and/or the Board of Aldermen to vote on the GIC proposal. Mayor Curtatone explained a discrepancy in the deadline date and told the members that the process has not been rushed, however, in order for the city to realize a savings of $2.3 million, the proposal must be acted on by October 1, 2011. Solicitor Wright reviewed the process timeline and the steps necessary to achieve the October 1st deadline.

Committee Meeting August 4, 2011 Finance Committee Page 2 of 2 Printed 8/11/2011 Ms. Kloos explained how information is being provided to active and retired employees and stated that there are approximately 3,000 current employees and 1,600 retirees eligible. Mr. Haraden reviewed the savings of the GIC option versus a plan design option and spoke about deductibles, co-pays, rate increases and mitigation for subscribers to help offset costs. RESULT: KEPT IN COMMITTEE