HomeMy WebLinkAboutAugust 13, 2019________________________________________________________________
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B A K E R S F I E L D
Committee Members
Staff: Chris Huot Councilmember, Ken Weir, Chair
Assistant City Manager Councilmember, Bruce Freeman
Councilmember, Chris Parlier
SPECIAL MEETING OF THE PERSONNEL COMMITTEE Tuesday, August 13, 2019 9:00 a.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT
Meeting called to order at 12:00 p.m.
1. ROLL CALL Committee members Present: Councilmember, Ken Weir, Chair
Councilmember, Bruce Freeman Councilmember, Chris Parlier
City staff: Alan Tandy, City Manager
Chris Huot, Assistant City Managers Brianna Carrier, Administrative Analyst
Nathan Gutierrez, Management Assistant Richard Iger, Deputy City Attorney
Christi Tenter, Human Resources Manager Mari Blowers, Benefits Supervisor
Kim Gearheart, Benefits Technician
Dianne Hoover, Recreation and Parks Director
Greg Terry, Chief of Police
Retired employees Fred Baugher, Bill Descary, and Margaret Ursin
and BCARE:
Others present: Tom Morrison and Johnny Wu, Segal Company
/s/ Chris Huot
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2. ADOPTION OF AUGUST 14, 2018 AGENDA SUMMARY REPORT
A motion to receive and file the Personnel Committee’s August 14, 2018 Agenda
Summary Report was approved.
3. PUBLIC STATEMENTS There were no public statements. 4. NEW BUSINESS
A. 2020 Health Care Plan Renewals - Huot
Assistant City Manager Huot introduced Human Resources Manager Christi
Tenter who provided a summary of the annual process to prepare the rate renewal package for 2020. He stated Segal Company had worked with the
various plan providers to obtain an understanding of the rates for the new plan
year, which begins on January 1, 2020. The same information was provided to
the Insurance Committee. She introduced Tom Morrison with the Segal
Company (Segal) to present their report by way of a handout and PowerPoint
presentation.
Mr. Morrison distributed information to the Committee and gave a summary
overview. Key points are:
• The following plans experienced higher claims than in the prior year:
• Blue Shield Active PPO
• Kaiser Non-Medicare HMO
• United Concordia (UCCI) PPO
• UCCI proposed a two-year renewal premium increase of 10.2%
• Optum and Voya proposed no increase to the rates
• Unum initially proposed a 8.8% increase and after negotiation
reduced it to a 5.3% increase
• P&A Group and MES Vision are in the last year of multi-year rate
guarantees and there is no increase
• The City’s overall cost for active employee benefits increased by 9.4%
or $1,499,500 for 2020 at the current contribution level of 80%, when compared to the 2019 reduction of 2.7%
• Kaiser proposed an alternative plan in conjunction with the current plans that will reduce the proposed rate increase for the current
Active Traditional and Deductible HMO plans to 4.04% and 2.8%, respectively. The total budgeted active increase would be reduced
to 8.6% for all benefits
• The 2020 premiums for retiree benefits increased by 1.1% or $81,900
without consideration of the subsidy amount paid by the City
Mr. Morrison also provided a summary of historic active and retiree plans rate information and enrollment comparisons for the last five years.
Human Resources Director Tenter reported that after careful consideration and
thorough discussion, the Insurance Committed voted unanimously to
recommend the City accept and adopt the rate renewal package as
presented.
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Committee Chair Weir requested staff research the possibility of changing the City’s insurance contribution for employees from a percentage based plan to a
fee based plan.
Committee member Freeman requested staff research and provide information on how the proposed insurance plan compares to the plans of
comparable cities when presenting the information to the Committee.
Committee member Parlier made a motion to accept staff’s recommendation and submit the item for approval to the full City Council. The motion was
unanimously approved.
5. COMMITTEE COMMENTS
There were no comments. 6. ADJOURNMENT The meeting was adjourned at 1: 10 pm