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HomeMy WebLinkAbout10/01/2014� BAKERSFIELD /�/ st�� r � 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 --- -i n � ♦ r�r_ r� _.tt� r�i- - - - -- - 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.