Minutes of a Special Called Meeting of the Town Council of the Town of Marion, Virginia held in the Council Chambers of the Municipal Building on July 23, 2007 at 4:00 pm

COUNCIL MINUTES:

Minutes of a Special Called Meeting of the Town Council of the Town of Marion, Virginia held in the Council Chambers of the Municipal Building on July 23, 2007 at 4:00 pm.

PRESENT: Mayor David P. Helms; Eugene Hendrick, Mel Leaman, Mark Warren, Herbert Clay, Ken Heath, and Suzanne Jennings, Town Council Members; Town Manager John E. B. Clark, Jr.; Town Engineer/Assistant Town Manager Cecil Hicks; Town Attorney Mark Fenyk and Town Clerk/Director of Finance Dixie O. Sheets.

INVOCATION/PLEDGE TO THE FLAG: Mr. Warren rendered the invocation. Mayor Helms led the Pledge to the Flag.

VISITORS: Walter Norman and Linda Pennington

LOCAL CHOICE HEALTH AND DENTAL CARE CLARIFICATION: Mr. Hendrick moved that pursuant to Code of Virginia, as amended Section 2.2-3711 (a) that Town Council enter into Closed Session to discuss personal business related to insurance matters. Mrs. Jennings seconded the motion. Council approved the same by a vote of 6 AYES and 0 NOES. Mr. Hendrick moved that Town Council return to Open Session and that it be known that only those matters exempted from Open Session were discussed during the Closed Session just completed. Mrs. Jennings seconded the motion. Town Council approved the motion by a vote of 6 AYES and 0 NOES. Ms. Sheets polled the members and Messrs Hendrick, Heath, Leaman, Warren, Clay, and Mrs. Jennings voted affirmatively.

Mr. Walter Norman, Local Choice representative, was present to answer questions concerning eligibility and coverage for the Anthem KeyCare 300 program offered by the Town to certain elected, appointed and regular employees. Upon review of the Town’s eligibility, elected officials are eligible if the Town agrees to participate in the cost of the plan at 40% of the premium. Council members fall into a Special Class under the plan. Currently, the Town had offered the plan to elected officials providing that the official pay 100% of the premium. The plan was also offered to the Town Attorney. Based upon the most recent information, the Town Attorney would be eligible based upon working 20 hours per week and that he receive a W-2 form for tax purposes instead of a Form 1099. The Town Attorney would not be eligible for coverage unless the criteria are met. Currently, the Town Attorney does not meet the criteria. It was noted that the Town offered the benefit in error, due to information received from Anthem.

Mr. Norman explained that the deadline for renewal of the Town’s insurance program was 7/1/07. However, based upon the issues that have arisen the deadline has been extended to 7/31/07. He added hat no punitive action is anticipated as he believes that the error was made in good faith. However, if the Town elects to discontinue coverage for elected officials, Mr. Warren, the only Town Council participant, would fall into the COBRA provision which would allow him to continue on the Town’s program for up to 18 months. Mr. Warren is also covered by Medicare insurance. If he chooses to elect COBRA coverage, Medicare would become primary and the KeyCare 300 would be secondary. Mr. Fenyk’s coverage will terminate on July 31, as he does not meet the criteria and is therefore not eligible for the Town’s plan.

Mr. Hendrick stated that it was the intention of the Town Council that insurance provisions provided to Town Council members would be borne by the member at 100% as informed by Anthem representatives. Now that as the Town has now been advised that the Town would incur a cost of 40% of the premium, he moved that as of July 31, 2007, the Town’s insurance plan no longer offer health insurance coverage to Town Council Members. Mr. Clay seconded the motion. A lively discussion ensued. The motion was denied by a vote of 2 AYES (Hendrick, Jennings), 2 ABSTENTIONS (Leaman, Warren) and 3 NOES (Clay, Heath and Mayor Helms voted to break the tie).

PERSONNEL COMMITTEE: Upon motion, duly seconded and vote of 4 AYES and 2 ABSTENTIONS (Warren, Leaman) the Personnel Committee will review the Attorney’s position that he may be covered by KeyCare 300.

BUDGET AND FINANCE COMMITTEE: Upon motion of Mr. Hendrick, seconded by Mrs. Jennings and vote of 6 AYES and 0 NOES, the Finance Committee will discuss funding of the 40% unbudgeted amount to pay for Mr. Warren’s health insurance.

Upon motion, duly seconded and vote of 6 AYES and 0 NOES, the meeting was adjourned.