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HomeMy WebLinkAbout07/15/1999 BAKERSFIELD Alan Tandy, City Manager Mike Maggard, Chair Staff: Alan Christensen Irma Carson Mark Sal¥aggio AG£NDA SUMMARY RI=PORT PI=R$ONN£1_ COMMITTI=I= Thursday, July 15, 199@ 3:00 p.m. Gity Manager's Conference Room 1. ROLL CALL Call to Order 3:00 p.m. Present: Councilmembers Mike Maggard, Chair; Irma Carson and Mark Salvaggio 2. ADOPT NOVEMBER 9, 1998 AGENDA SUMMARY REPORT Adopted as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None $. DEFERRED BUSINESS None 6. NEW BUSINESS A. UPDATE ON EMPLOYEE INCENTIVE PROGRAM Assistant City Manager Alan Chdstensen briefed the Committee on the Employee Incentive Plan. This plan was developed to award employees for extraordinary performance to make them feel good about their jobs outside of their normal compensation. To accomplish this APPROVED AS SIIBI~ITI'ED O. 0CTOBlgR 4, 1999~ FILE COPY AGENDA SUMMARY REPO PERSONNEL COMMITTEE Thursday, July 15, 1999 Page -2- a committee was formed, the Employee Incentive Committee, made up of a representative from each department. Mr. Christensen handed out (attached) a fact sheet outlining three on-going programs, which the employees seem to be happy with and many positive comments have been received. First, the High Five program - employees fill out a form and submit it to the committee to nominate a co-worker or supervisor they think did an excellent job, and those chosen receive token gifts such as movie tickets or gift certificates to award them for exceptional service. Second, a new Bright Ideas program, which is really an employee suggestion program. Employees submit instructive solutions to internal business problems. The Employee Incentive Committee reviews monthly, and worthy ideas which can be successfully implemented by departments are awarded with gift certificates or some token of appreciation. Third, an employee 'appreciation breakfast where employees are served breakfast.by department/division heads. The second annual breakfast was June 25th at Yokuts Park and 459 employees were served, everyone had lots of fun, and it's a good way to say thanks. The City also has Service Awards, $ awards, time off, or gift certificates, which are given to employees for each five-year increment worked as a morale booster. B. DISCUSSION OF SALARY COMPACTION/REFERRAL AND RELATED MATERIAL City Manager Alan Tandy stated this item was a referral from members of the Council. Salary compaction is a term utilized when one group of employees get something that is not necessarily passed on to all levels within the organization and, therefore, total compensation over a period of time shrinks and becomes closer between supervisors and those they supervise. In all three units of Fire, Police and Public Works special pays built into our collective bargaining agreements 'over a period of time for education incentives, certifications, and special skills have been given to employees who are represented, but not necessarily passed on to those who supervise them. Some positions require a college degree to apply for or hold the position..At the rank and file level, incentives are built in to encourage obtaining a college degree to.beable to apply for higher positions when openings. occur. This narrowing of pay levels (by approximately 5% across the board) is a very sensitive issue for employees because it relates to their perception of equity and fairness for both those they supervise as well as across departmental lines. Mr. Tandy continued that staff has been looking at the issue in order to present a proposal that is acceptable to as many or all of the people impacted as possible. An agreement was reached on this plan with management representatives from Fire, Police, and Miscellaneous. Staff is recommending a four-part plan. 1) A 5% adjustment be made to base pay for non- represented employees organizationally at Police Lieutenant level and above to correct the salary inequities caused by the compaction issue. 2) A cleanup amendment be made to the City Charter in the Fire Department. The Charter currently prescribes "the Deputy Fire Chief" and the wording is proposed to be changed to "a Deputy Fire Chief." The proposed amendment would give the Fire Chief flexibility to have more than one Deputy Chief if that was desired. The Charter amendment is proposed for the March 2000 election because if it is put on the ballot with the Mayoral election, there are cost savings. 3) Immediately undertake a wage survey for non-represented employees utilizing a group of comparable cities and using a group of employees from different departments from a cross-section of impacted levels as advisors' and researchers on the survey. If inequities are found, the issues would be presented to Council with recommendations. 4) A parallel study will be done to review automatic adjustments to management pay grades so compaction issues are not recreated. AGENDA SUMMARY REPO PERSONNEL'COMMITTEE Thursday, July 15, 1999 Page -3- The funding for the staff recommended 5% adjustment to base pay for non-represented employees would be from Council Contingency funds. These funds would be replaced from State budgetary actions as soon as the State disburses the funds. The Committee agreed that the compaction issue has created salary inequities and needed to be resolved. Committee member Carson expressed that fairness between the ranks is necessary and that the compaction issue should be studied and dealt with so that it does not reoccur. When questioned by the Committee, union representatives that were present at the meeting approved sending the staff recommendations to the Council for approval. In addition, the Committee provided further direction: 1) staff is to ensure that the language in the proposed Charter amendment does not delete the position of Deputy Fire Chief and 2) as Committee member Carson requested, a simultaneous study be done on guaranteed separation of pay between the ranks, with staff reporting back to the Committee on a monthly basis. C. REVIEW OF BLUE CROSS HEALTH INSURANCE PERFORMANCE Human Resources Manager Carroll Hayden stated that we have had an extraordinary rate increase for 1999 on BlueCross. Based upon claims experience, overall for both retiree 'and ', employee health insurance, we will have a projected 13.9% increase in our rates for 2000. The actives is higher and will be approximately .15.4% based.on projected claims experience through March 1997; however, since we have-received that projection,, we have had a couple '~ · .-. of extremely significant claims that are going to raise our claims experience a great deal. On our Kaiser Contract, our consultant projects the increase to.be about 10 to 15%. CalifomiaCare, which is our HMO. through Blue Cross, will probably go upabout8 to 10%. We have analyzed our expenses on Blue Cross and why our rates are going up, and in the past we have not had a significantly large, number of claims that are:considered large (over $10,000), so it has justbeen steady usage. The largest section of our claims cost are the - -- charges for physicians. Our pharmaceutical charges have also gone up. We could lower the costs by increasing the utilization of our mail order pharmacy instead of local drug stores. The mail order program is more cost efficient, but there has been some resistance to it. The City's health consultant has been asked to look at the plan to cost out what could be done for some cost savings, so we do not have to pass on such large increases to the employees. The City will be getting renewal information next month and the Committee will need to make decisions in September because open enrollment is in January. Committee member Salvaggio, gave an update for those attending the meeting who may not know, the City has an Insurance Committee which is made up of representatives from the three bargaining units: Police, Fire, and Miscellaneous, with representatives from Supervisory and Managements groups, and a retired representative. The Insurance Committee works to reach agreement with management and then forwards recommendations on to the Personnel Committee. Also, any design changes in the plans are subject to the Meet and Confer process. AGENDA SUMMARY REPO PERSONNEL COMMITTEE Thursday, July 15, 1999 Page -4- Committee member Carson asked on the rate changes, what type of consideration has been given to the retirees who pay more when they have had large rate increases. Ms. Hayden responded that the retirees on Blue Cross do pay more and there were small increases on the HMO's. The City added the Medicare Supplement Plan as a way to address these concerns. Also, there are two HMO's that are available if they are not Medicare eligible. Committee Chair Maggard stated some type of education plan to control the costs could be used, especially educational information on using mail order pharmacies. He suggested some type of wellness program to keep people healthy that would translate into savings by prevention of illnesses. In response to a question, City Manager Alan Tandy said there has been some frustration with the way medical claims are processed, but the quality of the health insurance program is very good and there are a vadety of altematives in several areas, including a supplemental 125 Plan. Also, there are options and alternatives from HMO's to Fee For Service. Committee Chair Maggard requested that the 125 Plan be.put on a future Personnel. Committee agenda. 7. COMMITTEE COMMENTS None 8. ADJOURNMENT The meeting was adjourned at 4:55 p.m. Staff present: City Manager Alan Tandy; Assistant City Manager Alan Christensen; City Attorney Bart Thiltgen; Human Resources Manager Hayden; Dennis Fidler, Building Director; Steve Hamblet, Bakersfield Fire DepartmentJB-FLAG; Neil Mahan, Police Department; Alan Daniel, Assistant City Attorney; Ron Fraze, Fire Chief; Michael Rogers, Public Works/General Services; Eric Poore, Building Division; Bill Rector, Police Department. Others present: Richard Watkins, Fire Department retiree/B-FLAG; Jim Deem, Police Department retiree; and Barbara Fowler. cc: Honorable Mayor and City Council AC:jp