MINUTES OF THE HUMAN RESOURCES COMMITTEE MEETING
OF THE WATER WORKS BOARD OF THE CITY OF BIRMINGHAM
Wednesday, October 1, 2014
The Human Resources Committee Meeting of The Water Works Board of the City of
Birmingham was held on Wednesday, October 1, 2014, at 9:00 a.m., in the principal office of the Board,
3600 First Avenue North, Birmingham, Alabama.
The following Directors were present: Ann D. Florie and George Munchus. Directors A. Jackie
Robinson, III, and Sherry W. Lewis, non-Committee members were also in attendance.
The meeting was also attended by: Mac Underwood, General Manager; Michael Johnson, Darryl
Jones and Sonny Jones, Assistant General Managers; Grace Amison, Executive Assistant to the Board of
Directors; Cynthia Williams, George Anderson, Paul Lloyd, Joyce DuPree, Sonja Patterson, LaTasia
Sanford, Board Employees; Attorneys Mary Thompson and Kelvin Howard, Waldrep, Stewart &
Kendrick, LLC; Mark Johnson and Nicole Perry, Creative Benefit Solutions; Darell Eidson and Rick
Herring, Work-Site Benefit Services; Steven Griffin, Complete Benefit Alliance and Chris Culpepper,
Colonial Life Insurance.
The meeting was called to order at 9:08 a.m. by General Manager, Mac Underwood. The business
before the Committee today would be to hear a presentation from Work-site Benefit Services (WBS) and
Complete Benefit Alliance (CBA) to administer open enrollment communication and administration
services at no charge to the Board.
Director Florie asked for an explanation of how the decision/process was made to consider said
services. Mr. Lloyd responded that Mr. Mark Johnson, BWWB’s benefit consultant, suggested to staff
that bringing in an outside provider would be helpful during the open enrollment period. Staff liked the
idea so Ms. Dupree and the HR team moved forward and met with WBS and CBA to discuss their
approach and strategy for producing said services. After meeting with both firms, the HR team felt that
WBS would be more hands on with BWWB and would provide the desired attention during the open
enrollment communication course.
Director Florie asked HR staff to share their thoughts with the Committee regarding their
experience with WBS and CBA. Ms. Dupree stated that she felt either provider could do a good job. Ms.
Dupree also stated that it was her understanding that HR was asked to go back and inquire if WBS would
be willing to work with AFLAC. Director Florie voiced concern as to where the referenced request came
from. Mr. Underwood responded that the recommendation regarding AFLAC came out of a meeting held
September 11, 2014 with Chairman Robinson, Director Lewis, Mr. Mark Johnson and Senior
Management. During said meeting, staff and Creative Benefit Solutions (CBS) reviewed the same
information with both directors that was discussed during the Human Resources Committee Meeting held
September 9, 2014. Chairman Robinson and Director Lewis were not present during the referenced HR
Committee Meeting.
A discussion ensued as Director Florie voiced concern as to what the request referenced above
was based on. Chairman Robinson commented that the request was based on the fact that AFLAC is the
number 1 product in the market. Also, if offering a product to employees it should be the best product
available. With that in mind, AFLAC should be considered. Mr. Mark Johnson was recognized for
comments as he stated that enrollment firms choose the companies they would like to work with. Some
enrollment firms work with a number of products while some firms are limited to particular products. The
initial decision was made to use WBS. Once WBS was asked what voluntary products would be offered,
their response was a Universal Life product with a long-term rider along with an accident product. The
referenced products would be administered by Trustmark. At that time, focus was on employee
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engagement and campaign services. During the September 11th meeting, while discussing the services of
enrollment, the question was asked if AFLAC had been considered. After the meeting, CBS decided to
contact WBS regarding working with AFLAC. Mr. Mark Johnson stated that WBS informed them that
they do not work with AFLAC. Next, CBS researched products offered by AFLAC and it was determined
that AFLAC is the top in work-site space. CBS contacted CBA to ask if they work with ALFLAC; CBA’s
response was yes.
Director Florie voiced concern as to why the focus on products was not a part of the initial
process. AGM Michael Johnson responded that originally, assistance with employee engagement as well
as the open enrollment process was valued over insurance products. Mr. Mark Johnson added that
Trustmark and AFLAC would like to offer different products. For the first year, WBS would like to bring
in a Universal Life product with a long-term care rider administered by Trustmark. CBA would like to
bring in a critical illness policy with a cancer rider. This policy is different from the product offered to
BWWB today. CBA would also like to offer an accident plan for the first year.
Director Florie asked if the Board had any input in which voluntary products to offer. Mr. Mark
Johnson responded yes; staff could decide which voluntary benefits they would like offered. There was
concern as to the timeline in choosing a firm to assist with open enrollment communication. Mr. Lloyd
commented that the goal would be to engage a firm as soon as possible in order to complete open
enrollment in November and to provide needed information to Blue Cross and to be ready for roll-out
January 1, 2015.
Director Florie asked if the proposed contract would be need to be revised. Mr. Mark Johnson
responded revision would be needed only if a long term contract/agreement was desired.
Director Munchus asked if the term of the contract/agreement could be for three years being he
would like to see stability. Board Attorney Mary Thompson responded that contracts are normally
approved for one-year with an option to renew upon Board approval.
Next, Mr. Rick Herring and Mr. Darrell Eidson with WBS were recognized to give a brief
presentation. A copy of the presentation and supporting documents were distributed. Mr. Rick Herring
commented that he and Mr. Eidson started WBS approximately twelve and a half years ago. WBS is a
group communication benefits firm. Said firm provides communication and education to
employers/employees on their benefits. WBS’ mission is to provide communication, benefit and human
resource services through value added processes that are both meaningful and impactful. If engaged,
WBS would educate employees on the plan design and features of benefits during face to face meetings
with employees. WBS would communicate changes to benefit programs by focusing on the value of the
changes. HR initiatives would be re-enforced and enrollment materials would be developed and printed
on postcards to distribute to employees. Human Resources would have access to WBS’ custom video
library. Employees would be educated on how to utilize the current benefit administration system. An 800
phone number would be provided for use after the face to face meetings with employees. WBS would
provide ongoing customer service to staff and employees after the enrollment process. A six-week
timeline would be implemented leading up to the enrollment process. WBS could provide custom built
videos for BWWB. For the first year, WBS would recommend a universal life product which would
include an accelerated death benefit along with a built-in long term care benefit. The second suggested
voluntary benefit product would be an accident plan. This product would provide benefits for covered
accidents, initial care, injuries and follow-up care. The referenced plan features guaranteed issue with no
medical questions. A wellness benefit plan could be built into the accident plan. The accident plan is
portable. If chosen, employees would not have to forfeit their policy upon leaving BWWB. Said benefits
listed above would be administered by Trustmark Voluntary Benefit Solutions. Trustmark is a triple A
rated firm which was founded in 1913. Trustmark is privately owned by its policyholders. Said firm
provides services to many county and city agencies. WBS has a long track record in working with
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Trustmark. The recommended voluntary product for year 2 or 3 would be implementation of a critical
illness benefit. In closing, Mr. Rick Herring recommended Trustmark as the company/firm to work with.
(copies of referenced documents are on file with Diligent Boardbooks.)
Following, Mr. Steven Griffin with Complete Benefit Alliance (CBA) entered the meeting as he
was recognized to give a brief presentation. A copy of the presentation and supporting documentation was
distributed. Mr. Griffin commented that he is the President and CEO of CBA. Said company was started
in 1997 and it is located on First Avenue North and 20th Street, here in in Birmingham. CBA is the largest
enrollment organization in the state of Alabama and they are ranked in the top 5 to 6 nationally. CBA also
has a call center with approximately 50 employees. CBA has clients in all 50 states. CBA’s objective and
goal is to educate employees on benefits via face to face meetings. Approximately 150 salaried benefit
counselors are on hand to meet with employees. The average time to meet with each employee would be
approximately 22 minutes. Time would be extended if needed. CBA has successfully enrolled over
800,000 employees nationwide. In addition to being an enrollment firm, CBA is a communications
company. An overview of the services provided by CBA includes enrollment services, employee
communication, administration services and benefit plan portfolio management and recommendations.
CBA would provide excellent services such as CORE and/or voluntary benefit communication and
individual face to face enrollment meetings. Pre-enrollment communication would be provided to
employees via memos, posters or payroll stuffers. Once enrolled, customized enrollment materials would
be provided to employees as well as benefit statements. A six-week timeline would be implemented
leading up to the enrollment process. If using CBA’s software for open enrollment, each enrolled
employee would receive a personalized printed benefit election authorization form. Said form would
include each employee benefit along with the level of coverage and a total deduction amount. The
referenced form would be printed and given to the employee at the end of their face to face meeting with
CBA. Also, CBA could customize an employee survey to be taken at the end of each employee
enrollment. Questions for said survey could be provided by BWWB. Survey results would be given to
BWWB for review. There would be no additional fee for said services. Mr. Griffin shared an example of
a communication brochure as well as a draft of an employee benefits guide (copy on file). Mr. Griffin
stated that a contract/agreement would be put in place to guarantee performance provided by CBA. The
cost for services would be covered by the voluntary benefits offered to employees. CBA’s goal is for
BWWB and employees to obtain a clear communication of benefits.
Subsequently, Mr. Griffin stated that recommendation would be to use AFLAC as carrier for
voluntary benefit products, being they are the world-wide and national leader in this space. Mr. Griffin
added that AFLAC has the most accounts and coverage. CBA suggested a universal life insurance product
and an accident benefit for the first year. A critical illness benefit could be added for the second or third
year. However, BWWB could decide which voluntary products they would like offered to employees. Mr.
Griffin ended his presentation and left the meeting at 10:30 a.m. (copies of the referenced documents are
on file in Diligent Boardbooks.)
Next, Mr. Chris Culpepper with Colonial Insurance was recognized to address the Committee.
Mr. Culpepper commented that Colonial Insurance is located in Birmingham on 3rd Avenue South. Mr.
Culpepper stated that some of the services discussed today are services currently provided by Colonial
Insurance. Mr. Culpepper stated that Colonial Insurance has had a working relationship with BWWB for
approximately 10 to 15 years. Mr. Culpepper stated that his firm has not had the opportunity to provide
CORE benefits to BWWB in the past, but they are capable of doing so. Mr. Culpepper added that
Colonial Insurance could also provide open enrollment services to BWWB. Mr. Culpepper asked the
Committee to consider allowing Colonial Insurance to come before the Committee to make a
presentation. Mr. Culpepper left the meeting room at 10:37 a.m.
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Following, Director Florie asked for staff’s recommendation. Ms. Dupree responded that initially
based on meetings and presentations with WBS and CBA, the recommendation was WBS. However, once
AFLAC products were addressed, she felt that CBA would be the better vendor.
Director Florie stated that the initial focus for services was related to engagement and
communication. Director Florie then asked AGM Michael Johnson for his recommendation. AGM
Michel Johnson responded that based on what he heard as well as the focus on products, AFLAC offers
the better products and has the better name brand. Therefore, CBA would be the vendor of choice.
Next, Director Florie asked Mr. Underwood for his recommendation. Mr. Underwood responded
that he would have to rely on staff’s recommendation being he had not met with either vendor.
Director Florie asked Mr. Lloyd for his recommendation. Mr. Lloyd responded that initially the
HR Team firmly recommended WBS. Mr. Lloyd stated that he felt that either vendor was capable of
performing the requested services. Mr. Lloyd added that he would recommend WBS if they would offer a
critical illness product. The Universal Life product would be competing with a current vendor, Mutual of
Omaha.
Director Munchus commented that his vote was with CBA.
Following, Director Florie voiced concern as to the way things were handled. Staff spent much
time with both vendors. Staff came to the Committee with a specific recommendation and now in
midstream the recommendation is being reversed based on a request. Subsequently, the Committee votes
were split as Director Florie stated that she would stick with the original recommendation of WBS.
After much discussion, the Committee agreed to move forward and present the referenced item to
the full Board during a Special Board of Directors’ Meeting on Wednesday, October 8, 2014. Said item
came out of the Committee with split votes.
As there was no further business to come before the Committee, the meeting was adjourned at
10:52 a.m.
__________/s/_______________
Ms. Ann D. Florie
Second Vice-Chairman
Second Vice-President
__________/s/_______________
Mr. George Munchus
Assistant Secretary - Treasurer
________/s/_________________
Mr. Mac Underwood
General Manager
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