HomeMy WebLinkAbout10/01/2014�
BAKERSFIELD
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Staff: Steven Teglia
Assistant City Manager
Committee M�
Ken Weir, Cha
Terry Maxwell
Harold Hansor
SPECIAL MEETING OF THE PERSONNEL COMMITTEE
Wednesday, October 1, 2014
12:00 p.m.
City Hall North - Conference Room A
1600 Truxtun Avenue
Bakersfield, CA 93301
AGENDA SUMMARY REPORT
Meeting called to order at 12:05 p.m.
1. ROLL CALL
Committee members:
Councilmember Ken Weir, Chair
Councilmember Terry Maxwell
Councilmember Harold Hanson
City staff: Alan Tandy, City Manager
Steven Teglia, Assistant to the City Manager
Chris Huot, Assistant to the City Manager
Chris Gerry, Administrative Analyst III - City Manag
Caleb Blaschke, Management Asst. - City Manag
Nelson Smith, Finance Director
Virginia Gennaro, City Attorney
Andrew Heglund, Deputy City Attorney
Christi Tenter, Human Resources Manager
Ginger Rubin, Benefits Technician
Retired employees Florn Core, Fred Baugher, Bill Descary, Margaret Ui
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2. ADOPTION OF AUGUST 15, 2014 AGENDA SUMMARY REPORT
The Report was adopted as submitted.
3. PUBLIC STATEMENTS
There were no public statements.
4. NEW BUSINESS
A. Continued Discussion reqardinq 2015 Health Care Plan Renewals
Assistant to the City Manager Teglia reported that a recent mee
Insurance Committee resulted in a recommendation to move forv
changes that had been proposed. Appreciation of their efforts was E
Tom Morrison with Segal Company distributed information to the Cc
provided an overview. If no modifications to the original pro�
insurance companies for the different plans are made, there will be
$566,013, as the City had only budgeted an additional $714,667 anc
would have totaled $1,280,680. The plan changes agreed to by 1
Committee reduce the City's contribution overall to $988,840, ther�
the increase in the City's contribution to $274,173.
The changes are as follows:
Plan
• Anthem Blue Cross HMO
Increase/Decrease
10.7�o I ncrease
• Anthem Blue Cross PPO
Active Employees 5.0� Increase
Retirees 22.98% Increase
• Anthem Blue Cross Senior Secure
• Kaiser HMO
Active Employees
Retirees/Under 65
• Kaiser High Deductible
Active Employees
Retirees/Under 65
• Kaiser HMO Senior Advantage
4.6�o Increase
9.5� Increase
9.5� Increase
5.0� Increase
15.b�o Increase
1.2�o Increase
The rates for the MetLife Dental plan will increase by 7.2�. There arE
to the Pacific Union Dental, Employee Assistance (EAP), Medical
(MES), Section 125 Flexible Benefits, Life Insurance and Long-Term C
The five-year average for each medical plan is as follows:
• Kaiser HMO 1.7�
• Anthem HMO 6.3�
• Anthem PPO 4.6�
• Kaiser DHMO 4.3�
Committee Chair Weir asked about potential changes as a
Affordable Care Act (ACA).
Mr. Morrison said that there are trends to eliminate long-term c
physicians and hospitals; for physicians to relocate their offices to hos
resulting in a dual billing for the physician and the hospital; and loc
referring patients to medical facilities in Southern California. The 1
healthcare and the ability to predict rate actions is uncertain.
Assistant to the City Manager Teglia Steve reported that the Insuranc
will continue to meet. Discussions will include the topic of alternativE
strategies for how the City provides compensation for health car
employees.
Committee member Maxwell stated that employees may migrate
cost HMO in the future. He noted that some private companies c
option, and that is an HMO.
Mr. Morrison stated that the Insurance Committee will include that i
their discussions. Another option will be to perhaps put a limit on the
is willing to pay for each employee; and if the plan costs more than t
dollar amount, the employee pays the difference. The Commi
consider a possibility where the City's budgeted increase for medicc
be considered the maximum amount to be paid out; and if a plc
than what was budgeted, the employee will pay the difference.
Committee member Maxwell asked for the information, broken c
group. Employees of a younger age generally do not require rr
care, and therefore choose the lower cost plans. He is grateful thai
offer good plans, but recognizes that the organization must consider
Mr. Morrison agreed and noted that as public employers are filli
vacancies, solutions may be to offer a cafeteria benefit or offer
amount that the employee can use to purchase health care.
City Manager Tandy noted that any change to the current systei
Committee member Hanson made a motion to forward the 2015 pla
the full Council for review and approval. The motion was unanimousl
3. COMMITTEE COMMENTS
Committee member Maxwell apologized for arriving late to the meetinc
given a proclamation on behalf of the Mayor.
Committee Chair Weir thanked Mr. Morrison and the Segal Company, 1
Committee, and staff for their efforts in reaching a reasonable conclusioi
rates and opening up talks for future changes.
4. ADJOURNMENT
The meeting was adjourned at 12:35 p.m.