HomeMy WebLinkAbout10/04/2005 BAKERSFIELD
~' ~ Harold Hanson, Chair
Staff: Carroll Hayden Zack Scrivner
For: Alan Tandy, City Manager Jacquie Sullivan
AGENDA SUMMARY REPORT
SPECIAL MEETING · PERSONNEL COMMI'i'rEE
Tuesday, October 4, 2005 - 11:00 a.m.
City Manager's Conference Room, Suite 201
Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA
1. ROLL CALL
Called to Order at 11:03 a.m.
Present: Councilmembers Harold Hanson, Chair; and Zack Scrivner
Councilmember Jacquie Sullivan arrived at 11:05 a.m.
2. ADOPT JUNE 13, 2005 AGENDA SUMMARY REPORT
Adopted as submitted. (Committee Member Sullivan absent)
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Review of final Health Plan rate increases
City Manager Alan Tandy spoke regarding previous Personnel Committee
meetings held earlier this year. At that time Buck had preliminary figures from
Blue Cross and was anticipating their premium rates would increase
approximately 9% overall for 2006. Buck has informed the City that premium
increases are going to be higher than projected. Some coverage is being
increased 17% and 18%, but the overall increase in premiums for 2006 is going
to be 14%. The action the Personnel Committee took on June 13th to make
health plan design changes to reduce the anticipated insurance premium
increases by approximately $620,000 was based on the 9% increase. Staff is
proposing additional plan design changes to reduce the additional 5% projected
increase in premiums.
After this Committee meeting, the health plan changes will need to go back to
formal meet and confer with the bargaining representatives. A date has not been
set as yet, but the time frame is very short to get their information before the
Council. Because of the required noticing and open enrollment period for
employees, the Health Plans need to be on the October 26th Council agenda.
Agenda Summary Report Page 2
Personnel Committee Meeting
October 4, 2005
B. Review and Committee recommendation on Health Plan design changes
Committee Member Scrivner wanted to restate the action recommended by the
Personnel Committee at its June 13th meeting to deal with the 9% increase. At
that time the Committee voted to recommend the City pay for 5% of the increase
and to reduce the other 4% increase in premiums, make the following
adjustments to the Health Plans:
HMO Plans
· Increase office visit copay from $10 to $15
· Add $250 per admission hospital copayment
· . Increase emergency room coPayment from $50 to $75 (which would be
waived if admitted to the 'hospital)
PPO Plan
· Change coinsurance in-network from 80-100% (depending on type of service)
to 90%, and 60% for out-of-network
· Increase out-of-network out-of-pocket maximum from $1,600 to $5,000
· Add $250 per admission hospital copayment
· Add $75 emergency room copayment
Blue Cross Dental plan
Change prosthodontic service from 80% to 60%
Committee Member Scrivner asked for staff's recommendation to reduce the
unexpected additional 5% health plan increase in premiums. The additional 5%
increase will' raise premiums and leave the budget out of balance by $168,376,
assuming the Personnel Committee's recommendations at the June 13th meeting
to deal with the 9% increase in premiums are adopted by the Council.
Committee Member Sullivan was in agreement with staff's recommendation to
make additional plan changes to reduce the additional 5% increase in premiums.
It was noted that the Employee Insurance Committee was not in agreement with
any plan changes to reduce the 9% projected premium increases when the
Personnel Committee met in May and June of this year.
Committee Member Scrivner explained if no action is taken to reduce the 14%
increase, premiums will increase $2.23 million for 2006. For active employees
the City pays 80% of the premiums and the employees pay 20%. The retirees
pay different amounts depending on coverage and years of service, but pay an
average share of 27%.
Committee Chair Hanson opened the floor to allow statements and questions by
the employee representatives in attendance.
Agenda Summary Report Page 3
Personnel Committee Meeting
October 4, 2005
Chuck Waide, CCAPE, expressed that he cannot speak on the recommendation
until the health plan premium rate increases go back to meet and confer.
Mike Turnipseed, Kern Tax, spoke regarding cafeteria plans and letting
employees decide how their individual total compensation package is spent.
Committee Member Scrivner made a motion the Committee approve and forward
staff's recommendation to increase the individual deductible from $200 to $250
and increase the emergency reom visits from $75 to $100 to reduce the
unexpected additional 5% increase in premiums, in addition to the health plan
design changes the Personnel Committee recommended at its June 13th meeting
to reduce the 9% increase in premiums.
Committee Members Scrivner and Sullivan voted: Aye. Committee Chair
Hanson voted: Nay.
Committee Chair Hanson stated he has met with staff regarding budgeting and
the cost of premium increases for the Health Insurance Plans and met with
representatives of the bargaining units. In order to promote good relations, he
proposed that if the bargaining, units buy into his proposal, he will go back to
Council with a minority recommendation; however, if they do not, he will vote for
the Personnel Committee majority recommendation. The cost of his
recommended proposal would be 2-tenths of 1% of the General Fund.
Committee Chair Hanson proposed the following: If the bargaining units agree to
the original plan adjustments made by the Personnel Committee to reduce the
9% increase in premiums, he will make the following recommendations to the
Council:
1. Delay the following plan changes to the HMO Plans to calendar year 2007 · The $250 per admission hospital copayment; and
· The increase emergency room copayment from $50 to $75; and
2. Delay the following plan changes to the PPO Plan to calendar year 2007 · The $250 per admission hospital copayment; and
· The $75 emergency room copayment; and
3. In addition, he will recommend that there be no other health plan changes to
reduce the unexpected additional 5% increase in premiums for 2006.
Committee Chair Hanson stated this proposal, cumulatively, would cost the City
$296,350 in 2006.
Agenda Summary Report Page 4
Personnel Committee Meeting
October 4, 2005
Staff was requested to prepare a Majority and Minority Report for Council
consideration. Committee Chair Hanson will review the Minority Report with staff
before it is submitted to Council.
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting was adjourned at 12:15 p.m.
Attendees: City Manager Alan Tandy; Assistant City Manager Alan Christensen;
Assistant City Manager John Stinson; City Attorney Ginny Gennaro; Human
Resources Manager Carroll Hayden; Finance Director Nelson Smith; Fire Chief Ron
Fraze; Deputy Fire Chief Gary Hutton; Police Captain Tim Taylor; Scott Monroe and
Paul Smith, Fire Department; Bill Ware, Police Department; City Clerk Pam
McCarthy; Ginger Rubin, Human Resources Benefits; Chuck Waide and Pete
Rodriguez, SEIU-CCAPE; and Mike Turnipseed, Kern Tax
cc: Honorable Mayor and City Council
S:~AC\05PersonnelCommitteeP05oct04summary - AC.doc