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HomeMy WebLinkAbout11/18/2013� BAKERSFIELD /s/ S-f�%tr�w Te,�L,i,a� Steve Teglia, Assistant to the City Manager City Council m Ken Weir, Chai Terry Maxwell Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Monday, November 18, 2013 10:00 a.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 10:00 a.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Terry Maxwell Councilmember Harold Hanson, Absent City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Ginger Rubin, Benefits Technician Retired employees Fred Baugher, Tim Taylor, Patti Phoenix, Margaret l and BCARE: Others present: Johnny Wu, Robert Mitchell, Tom Morrison: Segal C Billy Owens and John Patterson, SEIU Representati� Todd Dickson and Brian West, BPOA Representati� Florn Core, Insurance Committee, Retired EmployE Members of the media 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Continued Discussion and recommendation reqardina 2014 Heali renewals � Assistant to the City Manager Teglia provided some backgrounc regarding what transpired at the October 28, 2013 Personnel Commii Subsequent to that meeting, staff inet with the Insurance Corr recommended approving all of the Segal recommendations, excludinc related to the Anthem PPO plan for active employees. The recomme include approval of switching the mental health benefit from Optum to � Tom Morrison with the Segal Company gave an overview of the informc been distributed to both bodies, which included a compar recommendations made by Segal and those made by the InsurancE Survey data that compares the City's current and proposed rates California cities was also included. Assistant to the City Manager Teglia said that staff has placed this upcoming City Council agenda, in anticipation of it being apprc Committee. Staff would request that the City Council approve all contr exception of the Anthem PPO contract, and transferring the mental r from Optum to Anthem. City Manager Tandy reminded the Committee that 4�0 of all cost.< associated with the Affordable Care Act. The motion to place all contracts with the exception of the Anthem F including transferring the mental health benefit from Optum to Antherr City Council agenda for consideration was unanimously approved. Mr. Morrison reported that the Insurance Committee recommends lec insurance in-network costs at 90�0, instead of lowering it to 80� as recoi Segal. Both parties recommend lowering the out-of-network co-insuran 60� to 50�. The Insurance Committee does not recommend limitinc employees to an HMO plan, as recommended by Segal. recommendations will cumulatively reduce the City's costs by $880,0 Insurance Committee's recommendations lower the City's costs by $740, Assistant to the City Manager Teglia noted that the Insurance Comrr believed that as the enrollment decreased, costs would increase; wanted employees to have the flexibility to choose their own physician. Todd Dickson, with the Bakersfield Police Officers Association (BPOA), Association agreed that it was important to keep the Anthem PPO plan to the modifications suggested by Segal. Committee member Maxwell stated that it is possible that PPO's may be over time, forcing all employees into HMO's. He asked if the Insuranc had considered that costs may rise regardless of whether employers cor PPO's or not. Mr. Dickson said that they had; but under the current circumstances, it v to make some concessions to keep the PPO. Committee member Maxwell said that it was important to keep the freedom of choice. Committee Chair Weir noted that the long-term savings by eliminatinc new hires is $10-12 million. Mr. Morrison noted that the savings realized by eliminating the PPO would gradually increase over the years, as employees left the City. H� would take about 16 years for those currently in the PPO to cycle througl Robert Mitchell, with Segal Company, reported on a survey conducted 10 other cities in California. All cities offered a PPO, but one combined with a Healthcare Savings Account with a high deductible. Bakersi deductible is low compared to the other cities, as are the out-of-poc Additionally, Bakersfield's contribution ratio of 80/20 is more generous thc other cities surveyed. City Manager Tandy reported that it is always necessary to meet with � Committee, as that body is the official collective bargaining entity, and to reach an agreement with them before healthcare options can be c employees during the open enrollment period. This period is typically hE of the year, so that employees can decide which option works best for new rates go into effect at the beginning of the next year. Any delay difficulties for employees, and the administration could incur additional c Committee Chair Weir suggested that staff ineet with the Insuranc� again to continue negotiations, and then return the item to the Personn� for additional discussion. Committee member Maxwell said that a Special Meeting of Committee could be held afterwards. Committee Chair Weir added that any Special Meeting would be another meeting of the Insurance Committee. Assistant to the City Manager Teglia said that the difference between � Committee's recommendations and Segal's suggestions is approximatel Committee Chair Weir made a motion for staff to return to negotiations � matter for a Special Meeting to be scheduled at a later date. The m with Committee member Hanson absent. 3. COMMITTEE COMMENTS Committee member Maxwell thanked the Insurance Committee for working with City staff on these issues. Committee Chair Weir thanked the Insurance Committee for making good � Fred Baugher asked what budget shortfall might occur if the item goes forw City Manager Tandy said the range would be $1.49 -$1.63 million. Mr. Baugher asked if anything else could have been done to help the City funds for healthcare. Committee Chair Weir said there was no way that the dramatic increasE been foreseen. Based on historical averages, a good faith effort w budget a sound amount. City Manager Tandy said that the largest share of discretionary r allocated to hire additional police personnel as a result of the impa realignment. Florn Core noted that healthcare rates are established by calendar year budget is formulated on a fiscal year basis. Mr. Baugher asked about grandfathering in the retiree plan. Mr. Morrison said grandfathering does not apply to retirees. d �I�.I(�IIRNMFNT