City Council to Consider Holmes Murphy, Ethicon Proposals

San Angelo City Council will consider numerous proposals, ranging from Ethicon to area lakes, from the airport to health insurance benefit consultant Holmes Murphy.

The first regards an economic development designation for Ethicon such that it can pursue state funds.  Council approved two different incentives for Ethicon over a year ago.  The first was a $572,000 tax rebate and the second a $300,000 incentive to keep 30 jobs.

At its meeting of August 3, 2010, Council approved a resolution nominating Ethicon as an Enterprise Project. The company subsequently applied to the Office of the Governor and was denied. The company is requesting that the City of San Angelo again nominate Ethicon as an Enterprise project. This will allow the company to gain State Sales Tax and Franchise Tax abatements on the new machinery and equipment. In addition, the company will be eligible to participate in the State Tax Credit Program for Job Creation and Retention. The deadline for application to the State is September 1, 2012. Ethicon currently anticipates making a capital investment of between $12 million and $28 million in updated plant equipment.

Council will likely give Ethicon the designation such that it can reapply for Texas taxpayer money.

Another agenda item relates  to the City's health insurance benefit for employees, retirees and dependents.  The City saved $480,000 by executing an exclusive contract with San Angelo Community Medical Center.

Seeking approval from Council to negotiate a contract with ACAP Health, an affiliate company of Holmes-Murphy & Associates, to provide Clinical Care Engineering (CCE) services for the health insurance program. The contract would exist as an addendum to the existing Holmes-Murphy & Associates contract.

History:  During the health insurance negotiations during the summer of 2011, Holmes-Murphy utilized their affiliate company, ACAP Health, to assist with the complex discussions. ACAP Health was very instrumental in analyzing data used in calculating the health care benefits and costs. Last year’s negotiations with providers should be considered as Phase I in the continuing efforts to provide effective health insurance benefits. Phase II of the ACAP Health services will be to work directly with the providers to attain high value, accountable care for plan participants. This direct relationship will provide the City with a better understanding of the quality performance of the providers and of the cost of the clinical care being rendered. Evidence has shown that higher quality health care actually costs less when the right processes are in place to avoid the unnecessary waste and the complications inherent in a fragmented care continuum.

Financial Impact:  The cost is to be negotiated as part of the contract. The savings will be measured based on actual claims

ACAP will work solely with SACMC providers on Clinical Care Engineering.  I look forward to seeing what comes back to council from such negotiations.  Maybe ACAP can help the City of San Angelo revise its current budget to reflect Council's decision under Phase ! of health insurance.  So far, no city staffers have gotten the job done.

The Airport and Lake Nasworthy are the key to making San Angelo a bigger draw.  Budget revisions show $500,000 to recruit a new airline to town.

The City is ready to hire a Master Planner for Lake Nasworthy.  The group selected has extensive experience with market opportunities and public-private strategies, i.e commercializing waterside properties.  Other highlights include:

The Twin Buttes pumping station, priced at $327,000, is a budget amendment.

City Hall renovation rose another $275,000 and is now $12.6 million.

San Angelo is on the move.