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HomeMy WebLinkAboutAugust 13, 2019________________________________________________________________ C:\Users\pavalos\Desktop\August 13 ASR.docx Page 1 CH:mc 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 ________________________________________________________________ C:\Users\pavalos\Desktop\August 13 ASR.docx Page 2 CH:mc 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. ________________________________________________________________ C:\Users\pavalos\Desktop\August 13 ASR.docx Page 3 CH:mc 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