VBT ends lifetime medical coverage, add health savings account

As of Sept. 1, those hired by Van Buren Township will get a health savings account instead of the usual lifetime medical care coverage.
At the Aug. 20 meeting of the VBT Board, the board voted unanimously to enter a Post-Employment Medical Expense Reimbursement Plan with Burnham & Flower Group.
Human Resources Director Nicole Sumpter said the township has been looking into retiree health care coverage for some time.
She said as of Sept. 1, all new hires will receive a health savings plan, tax free, that can only be used for health care purposes. The township will put $2,500 into the individual accounts every year.
Trustee Reggie Miller said this new plan is “wonderful,” given the exorbitant health care costs. She asked if employees could add additional funds to their account to make it larger and Sumpter said she is looking into that.
Supervisor Kevin McNamara said the plan will save the township $5,000 to $10,000 per employee per year.
Sumpter said active employees will have full health care, but the township is looking at hiring eight new employees soon and the new plan will be for them.
“This will stop the bleeding,” Sumpter said, referring to the unfunded medical retirement liabilities that rise every time someone retires.
Treasurer Sharry Budd said the township has to guarantee funds for those who are active employees, but when they retire they will have the savings account which can only be used once separated from the township.
“It’s something we had to do because of the cost of health care,” said Trustee Sherry Frazier, noting people are living longer than ever before and there are remarkable drugs and things in the medical field.
“This is something we’ve been working on for a while,” said Clerk Leon Wright. He said they learned of the unfunded liabilities in the past, but now it had to start being reported in the audit and they are big numbers.
He said the new savings account drops the township’s obligations considerably. He said if you figure someone is retired for 20 years after separating from the township and it costs $20,000 a year for the medical coverage that adds up to big numbers.
“Going forward will be much better,” Clerk Wright said.
“I had a lot of questions about this at the work/study,” said Trustee Paul White, noting the board packet was huge and he did not have enough time to go over everything in detail.
He said he called Burnham & Flower and got the information he needed which alleviated many of the fears he had.
“This health savings account can be used to buy health insurance,” he said. “It won’t be that beneficial until the present employees retire.”
Trustee White said he had announced that he was going to vote against the plan, but now he’s in favor of it because it will save the township money.
In other business at the one-hour-and-20-minute meeting on Aug. 20, the board:
• Held a moment of silence in memory of George Craven, who served as VBT supervisor from 1982-84, and Loretta Speaks, who retired from VBT as election clerk and served on the Water and Sewer Commission;
• Approved the 34th District Court Funding Unit Agreement and authorized execution of the agreement;
• Approved the combination of two lots in the Seymour and Troester’s Motor City Acres Subdivision, 6911 Edwards Rd. and the lot next door which both have been purchased by William and Michelle Clawson and they want to combine them. There is a house on one lot;
• Approved a resolution setting the 2019 tax rate as .9047 allocated millage and 6.4317 extra voted millage for public safety for a total of 7.3364 mills for the December tax levy. Before the Headlee Rollbacks, the original allocated millage was 1.0 mill and the public safety millage was 6.5 mills;
• Approved reappointment of Gerald McKelvey to the Water and Sewer Commission with a term to expire on June 1, 2021;
• Approved an interlocal agreement between the Wayne County Airport Authority and the township, allowing new water and sewer lines for development on the east side of Willow Run Airport to connect to VBT lines, making the airport a customer of the township. They will disconnect from YCUA service there. The airport will construct the lines and turn them over to the township, but will maintain the lift station. Director of Water and Sewer James Taylor said the airport was able to secure bonds from the FAA;
• Approved the first reading of an ordinance that includes new provisions for Senior Housing in the township’s zoning ordinance and corrects other sections of the ordinance for consistency. The second reading and final approval of the ordinance will take place at the Sept. 3 meeting of the township board. Director of Public Service Matthew Best said the senior population is growing and this will allow more senior housing in the VBT community;
• Approved the base bid price of $29,995 from Veres Environmental Graphics and Signs (VEGAS) to design and install an electronic message sign in front of the township hall. This is for the basic sign and the special frame design will be worked out and presented to the board for approval. Those with ideas on what they would like to see on the sign frame are invited to call Director Best with their suggestions. VEGAS also is creating the Downtown Development Authority electronic sign for the Placemaking Project on Belleville Road;
• Approved hiring Plante Moran Cresa to complete a Recreation Center Feasibility Study for $52,000. This detailed report will give the board information on what the community wants, where it should be, if built, and how much it would cost before any decisions are made. Clerk Wright said he has been in favor of a recreation center since he became clerk. He said the township doesn’t have room for some of the programs it wants to offer. “We may not need a Taj Mahal, but we need something.” While other board members said they supported a recreation center, Supervisor McNamara said he would let them know his views after he sees the feasibility study;
• Approved the 2020 contract with the Suburban Mobility Authority for Regional Transportation (SMART) in which the township receives $20,000 to use for recreation transportation and $8,340 to senior transportation. Trustee Frazier said seniors and handicapped looking for transport to doctors’ appointments and other places should call transportation services for more information at (734) 699-8919;
• Approved a resolution approving the Michigan Natural Resources Trust Fund Development Project Agreement that provides $300,000 from the DNR for the .45-mile Iron Belle Trail from Edgemont to Martinsville along the south side of East Huron River Drive, with the township providing $100,000 in matching funds;
• Approved the intergovernmental agreement with Wayne county for French Landing Park improvements for $120,000;
• Approved using PEA Inc., to provide professional services for the segment of the Iron Belle Trail through Van Buren Park at the former entrance on the east side that has been closed for many years, which McNamara said is now a “goat trail” with a seven-foot jump over Willow Run Creek. This will be financed with a $50,000 DNR mini-grant;
• Was reminded the Opioid Awareness program at Wayne County Community College is at 6 p.m. on Sept. 12 and the Public Safety Day is at Menards from 10 a.m. to 2 p.m. on Sept. 14;
• Thanked Lukas Dahmen, the volunteer from Germany who has been serving in the senior department for the last year. He left the previous week for home;
• Heard Trustee White say he would like to receive his board packet a day earlier to give him and other board members adequate time to go through the information;
• Heard Clerk Wright say the work/study session was meant for board members to discuss an issue and if it wasn’t ready for consideration in a board meeting, discussed again at a future work/study. But now the work/study is just a rehearsal for the board meeting the next day. “We’re not doing it like we should be doing it,” he said. As far as the packets go, he said they get the items for the agenda at Thursday noon, put the packets together and put them out Thursday;
• Heard Trustee Miller say it would be helpful to have the packets a day early, by Wednesday night, if possible. Trustee Frazier agreed on having the packets sooner. She said that week, they had 271 pages and it took her 3.5 hours to go through the whole packet; and
• Heard McNamara say, “I like the way we do it.” Miller replied, “Your board is saying different.” McNamara said, “Do you want to take back any of your votes tonight?” and when nobody wanted that, the meeting was adjourned.