HomeMy WebLinkAbout08/28/2006 B A K E R S F I E I~ D
(~ ~ ~%"- Harold Hanson, Chair
Staff: John W. Stinson Zack Scrivner
For:. Alan Tandy, City Manager ~Jacquie Sullivan
AGENDA SUMMARY REPORT
SPECIAL MEETING · PERSONNEL COMMITTEE
Monday, AUgust 28, 2006 - 10:00 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 10:10 a.m.
Present: Councilmembers Harold Hanson, Chair; Zack Scrivner; and Jacquie Sullivan
2. ADOPT JUNE 22, 2006 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Report on solicitation renewal results and Committee recommendation
on 2007 Medical Insurance Plan
Human Resources Manager Carroll Hayden gave a brief update. At the last
Committee meeting, the Committee voted to have Buck Consultants market
the Health. Insurance Plans to see if the City was getting competitive rates.
She introduced Tim Beck and Mike Schionning from Buck Consultants.
Committee Chair Harold Hanson confirmed with the consultants that they had
met with and provided a report to the Insurance Committee earlier in the day.
Mike Schionning, Buck Consultants, reported as a result of marketing the
plans, the consultants were able to negotiate with Blue Cross to obtain rates
that were approximately $525,000 lower than would otherwise apply.
Agenda Summary Report Page 2
Personnel Committee Meeting
Monday, August 28, 2006
2007 Renewal Results for Current Plans
Blue Cross requested the followinq increases:
- Active PPO Plan 8.0%
- Retiree PPO Plan 0.0%
- Active HMO Plan 10.7%
- Retiree HMO Plan 38.4% (A significant part of this increase is due to
the five year transition to unblended rates.)
It was also noted that the rate increases now include a 2½% increase for
an insurance premium tax.
Kaiser requested the followinq increases:
- Active 17.2%*
- Retiree 17.2%*
- Sr. Advantage -15.7%
*Kaiser has developed a new premium rate increase methodology, thus the
increases.
The Medical Plans are proposed to increase overall by 10.6%.
All of the other plans have requested minimal or no increases for 2007
- Blue Cross Dental 0.0%
- Dedicated Dental 1.5%
- Pacific Dental 2.0%
- Medical Eye Services has given the City a rate pass..
- PacifiCare Behavioral Health has given the City a rate pass.
The Dental Plans are proposed to increase overall by 0.5%.
Results of Medical Plan Marketing
Buck Consultants marketed the Health Plans to determine if the current Blue
~Cross offering was competitive.
. Quotes were requested from the following vendors:
o Blue Cross
o Blue Shield
o PacifiCare/United Health Care
o CIGNA
o Aetna
o HealthNet
· Responses were received from Blue Cross, Blue Shield, and
PacifiCare/United Health Care.
· CIGNA, Aetna, and HealthNet declined to provide a response.
Agenda Summary Report Page 3
Personnel Committee Meeting
Monday, August 28, 2006
Overall Blue Shield and PacifiCare benefits do not match the current Blue
Cross benefits. Based on the results of the marketing, Buck Consultants
recommended the City remain with Blue Cross due to the following:
· Both the Blue Shield option and the PacifiCare option .would cost
significantly more than the Blue Cross plans.
· Neither PacifiCare nor Blue Shield would match the current benefits
offered by Blue Cross. In some situations, particularly for the PPO plans,
the differences are significant.
· Changing networks would cause significant employee disruption.
Buck was also asked to provide a comparison of the City's plans to those
offered by CalPERS.
· When compared to CalPERS, the City's rates are significantly lower for
comparable HMO benefits and the City has superior PPO benefits.
City Manager Alan Tandy stated staff is recommending that the Health
Insurance Plans be renewed as proposed by Buck Consultants and that the
City pick up the increase this year as opposed to going into benefit
reductions. Rate increases are somewhat less this year than last year. Staff
feels the changes made to the medical plans last year have contributed to the
reduction in rate increases for 2007.
Assistant City Manager John Stinson explained the 2006-07 budget includes
funding for anticipated premium rate increases. Also, many of the new
positions approved in the budget are proving difficult to fill, so there are
sufficient savings as money was budgeted for health insurance for the new
positions, which can offset the 2007 health plan increases.
Human Resources Manager Carroll Hayden stated that the Insurance
Committee voted to approve the proposal from Buck Consultants.
Committee Member Jacquie Sullivan expressed the report was a masterpiece
and marketing the plans was exactly what was needed.
Committee Chair Harold Hanson commented he was very appreciative of the
work that has been done.
Committee Member Zack Scrivner made a motion the Committee approve
staff's recommendations regarding renewal of the 2007 Health Insurance
Plans. The Committee unanimously approved the motion.
Agenda Summary Report Page 4
Personnel Committee Meeting
Monday, August 28, 2006
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting was adjourned at 10:38 a.m.
Staff Attendees: City Manager Alan Tandy; Assistant City Manager John Stinson;
City Attorney Ginny Gennaro; Finance Director Nelson Smith; Human Resources
Manager Carroll Hayden; Sam Chernabaeff, Accounting Clerk, Human Resources
Benefits; Bill Ware, representing Police; Scott Monroe, representing Fire; Human
Resources Analyst Javier Lozano; and Public Works Operations Manager Brad
Underwood
Retired employees: Margaret Ursin
Others: Chuck Waide, CCAPE; Tim Beck, and Mike Schionning, Buck Consultants
cc: Honorable Mayor and City Council
S:\JOHN\Council Committees\06 Personnel\P 06 aug 28 summary.doc