GLENDALE ELEMENTARY SCHOOL DISTRICT NO. 40
Maricopa County, Arizona
MINUTES OF REGULAR TRUST BOARD MEETING
Business Office Conference Room 4:00 p.m.
March 27, 2013
Present:
Board Members
Mr. Lee Peterson
Ms. Cathey Mayes
Ms. MaryAnn Wilson
Ms. Bernadette Bolognini
Other Attendees
Mr. Rick Conrad
Mr. Rod Petricek
Ms. Linday Lagreid
Ms. Amy Girardo
Ms. Darlene Kracht
Mr. Bill Moss
Phone Participant(s): None
Recorder: Jacquelyn Duarte
Call to Order
Mr. Peterson acknowledged a quorum was present the meeting was called to order at 4:00 p.m.
Visitor Comments
Mr. Peterson welcomed any new attendees and sought introductions. Ms. Maryann Wilson,
Glendale Elementary School District, Governing Board President was introduced as a new Trust
Board Member and everyone else was introduced.
Approval of Agenda
Ms. Bologini moved to accept and approve the agenda as presented, Ms. Mayes seconded.
Motion passed 3 - 0
Action Items
Approval of Minutes
Regular Meeting of February 13, 2013
Mr. Peterson requested approval of the minutes
Ms. Bolognini made the motion to approve the minutes, Ms. Mayes seconded the motion.
Motion passed 3 – 0
4th member arrived at 4:06 pm
Discussion Item
Recommend approval of Wellness Specialist Position increase in hours from 20 to 35 hours
Mr. Conrad explained how the increase costs were split. This will assist some of our programs
with effectiveness.
Ms. Mayes made the motion to approve the Wellness Specialist position increase in hours. The
motion was seconded by Ms. Bolognini.
Ms. Wilson arrived at 4:06 p.m. and suggested a survey from employees with regard to the
Wellness program to review the interest, and asked is there a great need for it? Ms. Wilson
recommended that more documentation would assist with this decision and maybe start the
increase in hours at the beginning of the year.
Ms. Mayes stated that Ms. Lagreid plans to speak on this topic and a survey has been taken.
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Ms. Lagreid explained that many employees do participate in the program and she ensures
constant travel to schools for Wellness program employee enrollment. In addition, Ms. Lagreid
explained, we had double the amount of employees schedule mammograms this year. The
utilization of services has increased and a total of 102 pounds to date have been lost. Incentives
like gift cards are offered for wellness points. A description of how to earn wellness point system
was explained by Ms. Lagreid.
Mr. Peterson spoke upon the fact that the program was on hiatus for a bit.
Ms. Bolognini reminded everyone that this role had been vacant for some time and we should
ensure to keep the program going for the benefit of employees. An increase in hours would
ensure that Ms. Lagreid would stay with us. Ms. Bolognini further explained that anytime we
could have anything in the workplace like a wellness program we will have better production
from employees.
Ms. Wilson expressed that it’s this time of year that concerns her. She’s not sure of the buy in
from employees and Wellness program enrollment is low. We should be presented with wellness
program information prior to making a Wellness Specialist Position increase in hours decision.
Mr. Conrad stated that the financial piece that will fund the increase is a part of the big picture
and has been accounted for. In the long run it is a cost savings. If we wait until May we may
have missed the preventative cycle. If we move at this time it will benefit the district at this time
for the future.
Mr. Peterson expressed that he does not personally see the wellness program as the wins and
preferences of the employees it is a win-win for the employees. We identify specific goals. Mr.
Peterson explained that he is not one to spend money without returns and he certainly looks
forward to an increase in employee utilization. Mr.Peterson stated that this has been thought out
appropriately and he appreciates Ms. Wilson’s questions. In addition, this continues to be
literature based what costs that we are accounting for and we are entering a cycle of this which
we have been expecting for a while. Mr. Conrad stated that effectiveness is accessed, each
program is assessed and roles are defined.
Ms. Lagreid explained that number of days missed is a large factor for the wellness program and
this has been a benefit for employees.
Mr. Peterson explained that this program is an investment.
Ms. Mayes stated that Ms. Lagreid’s presentation contains informational evidence of progress.
Ms. Mayes motioned that we approved the Wellness Program Special position hours increase,
Ms. Bolognini 2nd the motion. Ms. Wilson made the motion to postpone the increase.
Mr. Peterson requested that we review Ms. Lagreid’s presentation first.
Ms. Wilson stated that we do not have a full board here. Mr. Lee stated that the district is waiting
for a Trust Board member position to be filled and a quorum was in attendance.
Ms. Bolognini asked how many people participated. Ms. Lagreid replied, over 800 out of 1300
employees have participated thus far.
Ms. Lagreid stated that she expects to see an increase in wellness program registration. Ms.
Lagreid explained that the main goal is to increase registration and to make it her goal to ensure
that everyone understands their benefits. At this time, we have some employees fresh out of
college that don’t know too much about benefits or the significance. She feels strongly that
benefits and wellness can work well together.
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Mr. Peterson explained how the use of the benefit program would improve the connections and
wellness of employees. If staff appropriately chose their benefits that would benefit everyone,
Mr. Peterson added. Mr.Peterson then asked if there was any further discussion. There was no
further discussion. A vote was taken and the Wellness Program Specialist Position has increased
hours.
Claim Experience Review
Medical and Prescription Claims through February 2013
Mr. Conrad explained that at year end we incurred a 108% loss ratio. The months of January and
February were reviewed. Mr. Conrad noted that there was a black month in Feb for Cobra and a
red mark for the HSA2500 plan for December and February. Overall an 81% loss ratio was
reported Mr. Conrad explained. Mr. Peterson said that is good. Mr. Conrad stated it is hard to see
where the trend is at this point and IBN has taken this into consideration for next year’s funding.
Mr. Peterson asked if there was any other ways that anyone would like to review data. There
was no response. Mr. Conrad plans to reflect the overall effect of where we are in the next couple
of years at the next April meeting. Many fine lines will be defined stated Mr. Conrad.
Dental Claims through February 2013
Mr. Conrad stated that dental continues to look good and there was plenty of utilization over the
break. Overall, the buy up plan is doing better. Overall the dental paid loss ratio is at 86.8%
through the eighth month of the plan year.
Wellness Program Report/Ms. Lindsay Lagreid
Ms. Lagried began on a positive note by stating that we have had 233 new enrollees since
September 2012. Ms. Lagreid is in the process of following up with schools for continued
enrollment. Mr. Peterson asked how we can support Ms. Lagreid to enroll more employees. Ms.
Mayes explained that Principals are very protective of time and that afterschool would prove to
be a better venue for time. Mr. Peterson explained that this needs time and direction from the
district as to what is a priority. Ms. Lagreid explained that she has worked with schools and is
very flexible with time. Ms. Lagreid pointed out that many demands are coming up like AIMS.
Ms. Lagreid explained that she strongly feels that communication is very important.
Health Risk Assessment was very successful, 271 employees participated. This gave employees
a great picture of their health. It was a costly incentive. Mr. Conrad asked if there were any
stories that have come back to her. Ms. Lagreid stated that some employees have come to her for
advice for diabetics, etc…
Mr. Peterson asked, can we tell how many smokers there are in Glendale Elementary School
District? Ms. Lagreid explained we will have that data soon. Ms. Lagreid stated that we can
incorporate a smoking cessation program and currently nineteen people are enrolled in Weight
Watchers and have requested another ten week program. Ms. Lagreid explained the cost to
employees and how it could work during winter break. There is a fifteen person minimum and it
is something that a lot of people have expressed interest in. We doubled the number of
mammograms this year and there were plenty of positive comments made by employees. Rental
from the District Office DVD exercise library has been popular. Ms. Lagreid felt strongly that it
would be a great incentive for Support Center employees during their breaks.
We are having healthy cooking classes with plenty of positive feedback. We are also having
monthly hikes and monthly 5K runs for fun. We have an upcoming Rave Run on April 6th and
Ms. Lagreid explained that the goal each month is to have a cooking class and a 5K. Ms. Lagreid
had negotiated discounts for membership rates from the Foothills Recreation and Aquatic Center
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as well Jazzercise. At this time Ms. Lagreid is expecting to hear final discount information from
Gold’s gym.
Ms. Lagreid explained that she has the capability to email all employees at the same time by
using the e-all users email address.
Mr. Conrad asked if there are Wellness Program bulletin boards at the school. Ms. Lagreid
explained that posters and flyers are posted at schools and emails are sent out to the e-all user’s
email address. Ms. Lagreid reported that we have two additional softball teams for the Spring
league. At this time she is expecting the softball game schedule from the Glendale Parks and
Recreation department. It does encourage people to get out and get active. Ms. Lagreid reported
that she has worked hard along with Ms. Kracht to implement the pregnancy program since 80%
of our employees are women. This includes a maternity welcome basket funded by the district.
Ms. Lagreid explained that the fitness reimbursement data will give us a good picture of how
many employees are consistently active and upcoming May 2013 hike dates are to be
determined. Visions training may present an opportunity “insource” for our wellness tracking
and we are planning a Wellness Fair in the fall.
In closing Ms. Lagreid spoke of the new P.R.E.P program and described how it encourages
prevention. She explained that it is built into our insurance and is an inherent part of our
program. She explained the program and stated that the first two items need to be done then a
third option is chosen. She requested the Board’s input on how do we want to reward people on
this? Mr. Peterson asked if a suggestion was given. Ms. Lagreid explained that one option is a
stipend, the other option is a gift card and if we chose a gift card, we would need to decide where
that funding would come from. Ms. Lagreid reported that the Insurance committee was in favor
for the funded incentive. Mr. Conrad advised to fund for everyone that is eligible. Mr. Lee asked
for suggestions from the room. Ms. Kracht explained how another school district was handling it
and gave another idea. Mr. Peterson requested that we look at it from an HR perspective. Mr.
Conrad stated that he feels we can get there and he can work the numbers to get it started.
December Financial
Mr. Conrad reported that the source use is behind what medical utilization plan reports are and at
the next meeting he plans to bring it all together to see what our reserves are. He recommended
that we need to look at what’s incurred not reported for this particular report and in April we will
see a report that bridges that difference to translate between the two. Mr. Conrad explained, no
real surprises and the last report was prior to November. Mr. Lee asked if there were any
questions. There were no questions.
Recommend the Board consider Fully Insured Property / Casualty Liability / Auto
Mr. Conrad explained the deductible analysis reports. The point of these reports is to reflect over
time at what you are saving with the deductible. It has come to about an additional 10K in
premium, and then we eliminate all that risk. As the trust has matured they brought the zero
deductible back.
Ms. Wilson asked about the freezing costs for cold weather. Mr. Petricek reminded everyone
about a broken pipe and water damaged that we had this year. Mr. Conrad stated that this
analysis shows what is reported to the trust and looking at the higher deductible items you are
ahead because you are now on a zero dollar basis. Ms. Mayes asked how long we have been selfinsured. Mr. Conrad explained that we went from a low deductible to a high deductible back
through 1989 and he was not certain when it changed and he could find out if needed. Mr.
Conrad asked if we would like to cancel that part of trust. This is something for the new
Assistant Superintendent or he can look at it if needed.
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Insurance Committee Update and Interest-Based Negotiations Update / Cathey Mayes
Ms. Mayes combined both topics and reported that our goal was to minimize impact to benefit
eligible employees but still give them the benefit coverage they expect. Ms. Mayes described the
structure of the Insurance committee team. With a Power point Ms. Mayes presented Insurance
Committee recommendations and plan design recommendations. She explained that
Recommendations were not approved by IBN since most are on the 104 plan. In addition Cabinet
and Administration reviewed a minimized impact for employees then a retirement increase was
taken into account and contributions from employees were taken into account. Mr. Conrad
explained the salary increase point illustration. Ms. Mayes gave a brief summary of calculations
on each page and the total summary calculations page to reflect a gradual curve. Ms. Mayes
reported that a vote will be taken tonight at the IBN meeting where every employee would pay
$10 a month for the health plan. Mr. Conrad explained plan design changes and how the new
information could bridge the rate difference. On a paid claim basis is down by less than half a
million, this takes all of the rate renewal into effect explained Mr. Conrad. Ms. Mayes explained
how employees that utilize HSA contributions would be affected. Wellness incentives were
discussed to add to HSA contributions. Ms. Lagreid explained how incentives for HSAs would
work. Mr. Lee stated they should look at the design of HSA. He is not surprised of this
observation stated Mr. Lee and in addition we need to tune and work on the engine as it is
moving. Mr. Lee stated that this idea has good rationale to it and it requires selling it harder. It is
not an easy sale.
Ms. Mayes spoke of Short Term Disability for a three or seven day waiting period and with
assistance from Ms. Girardo and Ms. Kracht, a cost analysis will be done on dental information.
Ms. Mayes reported that life insurance is a strong option and no design or rate plan changes for it
at this time. In closing Ms. Mayes reported that IBN is looking at employee contribution for
health coverage. Mr. Peterson asked if the attendance at these meetings has been good and if
employees have been hard at work. Ms. Mayes and Mr. Conrad reported that attendance and
participation has been great.
Trust Board Comments
Mr. Peterson asked if there were any more comments. Ms. Wilson requested that we move the
start time to Trust Board meetings to 4:15 pm. A consensus was shown and Trust Board meeting
will begin at 4:15 p.m.
Adjournment
Ms. Bolognini made the motion to adjourn the meeting. Ms. Mayes seconded the motion. The
meeting ended at 5:26 p.m.
Submitted by
Jacquelyn Duarte
Educational Services Division
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