City health insurance debate devolves into accusations
Published 1:00 am Wednesday, September 14, 2016
NATCHEZ — The Natchez Board of Aldermen renewed its health insurance plan Tuesday, but not before accusations of immaturity and questions of ethics were hurled among the aldermen.
As soon as the health insurance matter was opened for discussion at Tuesday’s aldermen meeting, Ward 3 Alderwoman Sarah Smith asked if there was any reason the city could not delay a decision on health insurance, given how busy the aldermen have been working through the budget and other matters.
“It seems like every year, we’re trying to cram to get the budget done, and although we wanted to started insurance discussions earlier, it just didn’t happen,” she said.
Smith’s idea would involve going to month-to-month coverage with the current carrier and revisiting the insurance issue in January, and putting the health insurance plan on a calendar year cycle, instead of the aldermen having to evaluate budget and health insurance proposals at the same time.
Ward 6 Alderman Dan Dillard said he thought it was a good idea to look at changing the timeframe of the insurance renewal, but said the “matter at hand is we have run out of time this fiscal year to get insurance for city employees.”
Dillard made a motion to renew the city’s contract with Leslie “Les” Smith of LS & Associates of Southaven.
Mayor Darryl Grennell expressed shock at the motion, noting representatives from Ross & Yerger insurance agency were present in the audience.
“You’re not going afford the other company (the opportunity to make a presentation)?” Grennell said to Dillard.
Alderwoman Smith said Les Smith had previously made a presentation to the city and also questioned why Ross & Yerger would not be given the same opportunity.
“We’ve had no discussion on this as a board,” she said.
Dillard said he would have no problem with the presentation or discussion. Smith attempted to amend the motion to allow Ross & Yerger’s presentation, but did not get a second. Sarah Smith further said she would like to see Dillard’s motion withdrawn, “unless we just don’t care about making the most informed decision.”
“I think it’s very sad for our employees. … I apologize on behalf of this board for you all and … to our taxpayers,” Sarah Smith said. “This blows my mind. There’s been some wining and dining that’s gone on, and I don’t agree with … this process.”
After the meeting, Sarah Smith, Ward 1 Alderwoman Joyce Arceneaux-Mathis, Ward 5 Alderman Benjamin Davis, Ward 6 Alderman Dan Dillard said they did not have private meetings or meals with Les Smith or any of his associates. Dillard said Les Smith bought him lunch last year when Les Smith came to the city with his first proposal.
Ward 2 Alderman Billie Joe Frazier said he had no comment for any questions pertaining to whether he had dined with any insurance agents or if he had been made any offers in exchange for his vote.
Ward 4 Alderwoman Felecia Irving said she had a conversation with Les Smith at a restaurant, but made a point to say she was not at the restaurant to meet Les Smith, but was dining with someone else. She did not provide further details to clarify the interaction.
The motion then passed 5-1, with Sarah Smith voting against it.
Before a roll call vote was taken, a representative from Ross & Yerger said from the audience that the city was essentially passing on nearly $1 million in savings. Sarah Smith echoed the sentiment.
Following the vote and after further comments from Sarah Smith urging employees and taxpayers to contact their aldermen, Dillard told Sarah Smith her actions were immature.
“With all due respect … this dissatisfaction with not getting your way on something is a little bit immature to begin with,” Dillard said.
After a back and forth between Sarah Smith and Dillard, Dillard eventually made a motion to allow Ross & Yerger to make a presentation.
Les Smith and the city’s former longtime agent Randy Hazlip made presentations at an August meeting, but the aldermen ultimately deferred action to allow proposals from any interested insurance agencies.
Parker Brumfield and Davis Bond represented Ross & Yerger Tuesday, with Bond summarizing the Blue Cross Blue Shield proposal.
Based on the city’s insurance claims data from the past year from the city and Natchez Water Works, Bond said the city could have save a little more than $900,000 with the plan his firm was proposing.
“I’d say that is very compelling,” he said. “That’s worth not having a 5-1 vote.”
Bond went on to say Ross & Yerger’s plan from BCBS could cut some costs for employees by 10 percent.
The board allowed Les Smith to rebut Ross & Yerger’s presentation, with Les Smith saying there were more “inaccuracies and misrepresentations” in Bond’s proposal than he had ever heard in a proposal.
The two agents went back and forth for a bit, in an exchange Dillard would later characterize after the meeting as “throwing rocks at each other” and say it was in bad form for the city to have allowed the exchange to happen.
Brumfield with Ross & Yerger urged the board to consider the savings the city could see and pointed out that a document Dillard had been referencing in the meeting was not Ross & Yerger’s proposal, but a summary of an ancillary service.
“I mean no disrespect … but it sounds like you didn’t try and look at (our proposal),” he said.
Eventually, Ward 4 Alderman Benjamin Davis offered a motion to rescind the aldermen’s motion to award the contract to LS & Associates so the proposals could be evaluated by an independent consultant, saying he wanted what is best for the city.
Dillard argued that a motion to rescind had to come from an aldermen on the prevailing side of the motion in question, but City Attorney Robert “Bob” Latham said that was the case with a motion to reconsider, not a motion to rescind.
The motion failed, with only Davis and Sarah Smith voting for it.
When asked if he felt comfortable voting without evaluating whether the city could actually save $900,000 on insurance, Dillard said he would be open to further discussion.
If the city could have the proposals independently evaluated thoroughly, Dillard said he could be open to another potential motion to reconsider, but would likely not make the motion.
The board voted in September 2015 to go with Smith’s firm, with Sarah Smith abstaining from that vote.
At the Sept. 22, 2015, meeting Les Smith made a presentation to the aldermen despite not being on the agenda for the meeting. Dillard recognized Les Smith at the meeting, allowing him to make a presentation. Dillard asked the presentation be made in a closed-door executive session, but was advised by then city attorney Hyde Carby that the health insurance contract discussion needed to happen in open session.
A motion was made by then Ward 2 alderman Ricky Gray, now a county supervisor, to award the contract to Les Smith. Sarah Smith expressed concern then that the city would be making a decision without evaluating two other proposals that had been submitted.