HomeMy WebLinkAbout09/04/1991 D A K E R $ F I E L D
Lynn Edwards, Chair
Patricia J. DeMond
Mark Salvaggio
Staff: Maureen Cotner
AGENDA
PERSONNEL COMMITTEE
MEETING
Wednesday, September 4, 1991
4:15 p.m.
City Manager's Conference.Room
1. Comprehensive Classification Study Update:
Recommendation of Survey Cities for Compensation Analysis
2. Discussion of Promotional Recruitments
3. Employee Recognition Programs
4. Selection of Health Care Consultant
AUe 8 t991
Grl'Y MANAGEWS
DATE: August 28, 1991
TO: J. DALE HAWLEY, CITY MANAGER
FROM: MAUREEN COTNER, PERSONNEL MANAGER"~,~
SUBJECT: PROMOTIONAL RECRUITMENTS
Included on the agenda for the September 4, 1991, Personnel
Committee meeting is a discussion regarding promotional
recruitments. The enclosed information may be beneficial in
facilitating this discussion; it includes excerpts from the City
Charter and Police, Fire and Miscellaneous Civil Service Rules and
Regulations that pertain to promotions.
MC/kef
Enclosures
MEMO\HAWLEY\RECRUIT.PRO
Miscellaneous Civil Service Rules:
5.02 COMPETITIVE EXAMINATIONS
All examinations shall be competitive. An examination shall be deemed to be
competitive when applicants are tested as to their relative qualifications and abilities or
when a single applicant is scored against a fixed standard.
Types of examinations are:
(a) OPen Examinations: Open examinations shall be open to'all applicants as
" provided by these rules and who have .not been disqualified for' cause in
accordance with the provisions of said rules.
(b) Promotional 'Examinations: Promotional .examinations are open to City
employees who have attained permanent Civil Service status and possess the
minimum qualifications of the class. In addition, the applicant must possess
at least an overall "Standard" rating on his/her most recent performance
evaiuation report.
ExaminatiOns for the Creation of eligible lists for promotional positions in the City
service shall be ordered as often as may be necessary to meet the needs for such lists.
Such examinations shall be known'as:
1. Interdepartmental Promotional: Open to eligible employees in the citY
Service.
2. Department, Division, or Section Promotional: Limited t° eligible employees
in the department, division or section in which the positi°n exists.
Police Civil Service Rules
RULE 3: ANNOUNCEMENT AND ADVERTISEMENT OF AL1. EXAMINATIONS
'3.01 ANNOUNCEMENT OF EXAMINATION
Upon request by the Chief of police, the Chairman of the Civil Service Board may
announce examinations to establish eligible lists for promotion and for employment
in the 'Police Department.
RULE 5: APPLICATION FOR PROMOTIONAL EXAMINATION-
5.01
Any qualified applicant who has 'personally filed a written request to take a
promotional examination, as prescribed in the public notice thereof, shall be
permitted to do so.
5.02 GENERAL QUALIFICATIONS:
1. All applicants must be permanent employee o f the Bakersfield Police
Department.
2. All applicants must have completed the probationary period of their current
classification prior to the date of the examination, except detectives applying
for the position of sergeant and senior police officers applying for the position
of detective need not have Completed their probationary period.
3. Any person who has been demoted to a lower classification, as a disciplinary
measure, is not qualified t take nay promotional examination for a period of
one year from the date of demotion.
Fire Civil Service Rules:
RULE 1 h' ELIGIBLE LISTS
11.01 OPEN EXAMINATIONS
Candidates obtaining the required grade in any open examination shah have their
names placed on an eligible list for the class for which they were examined in the
order of their final earned grade including veteran's preference. Candidates of equal
standing at the completion of all testing shall be certified as a tie score and all such
candidates shall have their names placed on the eligible list as a tie. When said'
candidates' names appear within the top three positions on the eligible list, the
appointing authority shall have the right to select any candidate from this group.
11.02 PROMOTIONAL EXAMINATIONS
The names of candidates who have obtained the required' passing grade in a
promotional examination shall be placed on a promotional list for the class for which
they were examined in the order of their final scores. Whenever two or more
employees shall have the same score, they shall be certified as a tie score and all
such employees shall have their names placed on the eligible list as a tie. When said
employees' names appear within the top three positions on the eligible list, the
appointing authority shall have the right to select any employee from this group.
RULE 16: PROMOTION
16.01 CHARTER PROVISION
In accordance with Section (185)3 of the Charter, members of the Fire Department
shall not be eligible for promotion until they have served at least three yea, rs in the
Department. For subsequent promotions members must have held the rank from
which they are seeking promotion at least one (1) year. Promotions shall be made
only to the next higher grade in the service and no grade shall be skipped; however,
any member of the Fire Department, who has served not less than three years in tn
such Department, may be appointed Chief of the fire Department. The cut -off
date for purposes of calculations of time served shall be the clOsing date for filing
applications for the promotional examination.
16.02 PROMOTIONAL EXAMINATIONS
The rules governing promotional examinations shall be the same as for open
· examinations. Under no circumstances shall any promotional examination be
administered to any applicant who is not eligible for promotion.
CIVIL SERVICE FOR 'THE FIRE DEPARTMENT
Section (186) 4
It shall be the duty of the Civil Service Board to hold examinations and to administer
other suitable tests to those desiring positions or who are applicants for or who may
have been. recommended for promotion in the classified service of the Fire
Department for such purposes of determining, their fitness for such positions or their
qualifications for such promotions, and from the results of such examinations and
tests, the Board shall prepare a list of eligible for all positions in the classified Service
of the Fire department...
CIVIL SERVICE FOR THE POLICE DEPARTMENT OF THE CITY OF
BAKERSFIELD
Promotions: Qualifications for Promotion
Section (230) 10
The Commissioners shall provide for promotion in the Department on the basis of
ascertained merit and standing vacancies shall be filled by promotion. All
examination for promotion shall be competitive among such members of the
department, as established by the Commissioners; as desire to submit themselves to
such examination...
1992 CLASS AND COMP STUDY
COMMENTS ON RECOMMENDED SURVEY CITIES
S.E.I.U. BLUE and WHITE COLLAR
1. "Municipalities" should be the same as those used for Management
classifications; the cities listed are not comparable to Bakersfield, and the
reason we attract applicants is because we offer more competitve
compensation.
2. "Other Government Agencies" are appropriate, other than:
o Kern High School District should replace Community College
District
o Tulare County is not comparable
o State of California (CalTrans) should be included
3. "Private Sector Employers" may be difficult to obtain data which can be
validated
GENERAL SUPERVISORY
1. Agree that organizations listed are within our labor market
2. "Municipalities" are not comparable: i.e., they do not have positions which
supervise a comparable number of employees. Like positions will not be
identified.' The reason we attract applicants is because we offer more
competitve compensation.
3. The same cities used for comparison purposes for Management or Safety
should be used for General Supervisory positions.
4. The cost of living in the designated municipality should be factored into
any compensation comparison
POLICE
1. Tulare County not comparable
2. Not real happy with Ontario
POLICE SUPERVISORY
1. Agree with tiered approach to designated survey cities
2. Tulare County is not comparable; should be replaced with Fresno County,
Stanislaus County.
FIRE/FIRE SUPERVISORY
1. Agree with tiered approach to designated survey cities
2. Tulare County is not comparable; should be replaced with Fresno County,
Stanislaus County.
MEMORANDUM
July
TO: J, DALE HAWLEY, CrTY MANAGER //~...,,. _
FROM: MAUREEN COTNER, PERSONNEL MANAGER
SUBJECT: EMPLOYEE MOTIVATION PROGRAMS
The Personnel Committee has requested a follow up to their suggestion that the City develop an
Employee Motivation Program. I'd like to summarize our' findings on this issue, and make a
recommendation for expanding the existing programs we have.
FINDINGS
The C~ currently has in place a vadety of programs which serve to increase the recognition of
employees' efforts, and to encourage the well being of our employee population. They include:
o Service Awards
o Firefighter and Police Officer of the Year Awards
o Participation Programs
o Employee Assistance Program (EAP)
o Wellness Program
o Safety Incentive
o Ridest~are Program
o Tuition and Book Reimbursement
The attacl3ed page summarizes each of these programs.
RECOMMENDATIONS
I have researched additional types of employee incentive programs, including Suggestion Programs,
Performance Bonuses, and Gainsi3aring Plans. While each of these approaches to employee motivation
offer a means to recognize employee effort, their implementation would not be readily applicable, or
a~ie, within our organization.
As an alternative, I am recommending that we aclopt the City of Bakersfield Employee of the Month
Program, an Award of Achievement. In addition to the pmgrarns we currently support, this program will
centribute to the objective of increasing employee motivation and improving employee performance.
This program'will formalize the recognition of an inclividual employee for outstanding service in the
performance of their duties, or to recognize an exceptional effort to accomplish a significant goal.
Nominations for Employee of the Month will be solicitecl City-wide, ancl can be submitted by Department
heads, supervisors,' subordinates, or fellow employees, from their own or other Departments. An
employee can not nominate themselves. There are no limits on the number of times an employee can be
nominated.
A committee, composed of representative members from each Department appointed by the City Manager
will evaluate all nominations, and make a final determination as to who will be selected, basecl on the
following criteria:
MC
CITY OF BAKESFIELD
EMPLOYEE MOTIVATION PROGRAMS
o Service Awards: Employees With ten, fifteen, twenty, twenty five and thirty
years of service are recognized with a certificate of appreciation and a gift
certificate; employees with five years of service are given' a certificate of
appreciation presented by their Department head.
o Firefighter and Police Officer of the Year Awards: The Exchange Club of
Bakersfield honors individuals nominated by the Chief of their reSpective
Departments, in recognition of outstanding service to the community during
the year.
o Participation Programs: At City Hall and the Corporation Yard, Coffee
Committees offer employees a voluntary opportunity to participate in a
group social activity which plan events such as group luncheons and an
annual picnic. Employees are also encouraged to participate in outreach
programs such as the United Way campaign, Utter Clean-Up Day, Plant-a-
Tree Day, and the annual Christmas Can Tree canned food drive.
o Employee Assistance Program (EAP): The City provides for the emotional
well being of employees through the Employee Assistance Program.. The
EAP staff provides counselling for crisis intervention, stress reduction and
referrals for the employee or their family members twenty-four hours a day.
Employees may seek the confidential assistance of the EAP free of charge.
o Wellness Program: Programs aimed at improving health and well-being
are offered several times each year, include blood pressure and cholesterol
screenings, mammograms, body fat screening, and wellness seminars.
o Safety Incentive: Since October, 1989, this Program has awarded four hours
paid time off to all eligible employees, when employees in the Program work
60 consecutive calendar days without a lost time work injury. After adoption
of the program, lost time days dropped from 474 to 243 per year.
Additionally), the Safety Committee hold award ceremonies to honor those.
employees who have an accident-free year, and to recognize the Safety
Person of the Year with a $100 award.
o Rideshare Program: A $20 cash incentive is given to employees who
reduce fuel emissions by carpooling, biking, walking to work or riding the
bus 75% of their workdays during the month.
o Tuition and Book Reimbursement: To maximize their development,
employees are encouragecl to pursue their education, and are affordect the
opportunity with the City contributing the cost for tuition and books.
NOMINA'RON
for
CITY OF BAKERSFIELD
EMPLOYEE OF THE MONTH
An Award for Employee Achievernent
The purpose of the City of Bakersfield EMPLOYEE OF THE MONTH award is to
recognize and reward an individual employee for outstanding service in the performance
of their duties, or to recognize an exceptional effort to accomplish a"significant goal.
Nominations for Employee of the Month will be solicitec City-wide, and can be submitted
by Department heads, supervisors, subordinates, or fellow employees, from their own or
other Departments. An employee can not nominate themselves. There are no limits on
· the number of times an employee can be nominated.
To nominate, complete the following information and provide answers as directed below
on a separate sheet of. paper. (not to exceed one page). Submit the form and
supplemental information to the to the Personnel Office. Forms must be received no later
than the fifteenth of the montl~ for consideration for the following montlYs award.
Name of Nominee:
Job Title:
Division and Department:
Please provide, on a separate sheet,
o A description of the employee's act~ievement, including the nature of
the' service provided, or of the specific project or goal accomplisi~ed
o A description of how the accomplishment contributes to the standard
of excellence in the City, and to the City's commitment to
professionalism, responsiveness and quality customer service
o A description of the initiative, commitment or innovation exl~ibited by
the employee
NOMINATED BY:
(Note: This information must be submitted with nomination form for consideration)
Name of Nominating Employee:
Job Title:
Division and De!oartment:
Date of Nomination:
NOMINATION ·
for
CITY OF BAKERSFIELD
EMPLOYEE OF THE MONTH
An Award for Employee AChievement
The purpose of the City of Bakersfield EMPLOYEE OF THE MONTH award is to
· recognize and reward an individual employee for outstanding service in the performance
of their duties, or to recognize an exceptional effort to-accomplish a significant goal.
Nominations for Employee of the Month will be solicited City-wide, and can be submitted
by Department heads, supervisors, subordinates, or fellow employees, from their own or
other Departments. An employee can not nominate themselves. There are no limits on
the number of times an employee can be nominated.
To nominate, complete the following information and provide answers as directed below
on a separate sheet of paper (not to exceed one page). Submit the form and
supplemental information to the to the Personnel Office. Forms must be received no later
than the fifteenth of the month for consideration for the following month's award.
Name of Nominee:
Job Title: '
Division and Department:
Please provide, on a separate sheet,
o A description of the employee's achievement, including the nature of
the service providea, or of the specific project or goal accomplished
o A description of how the accomplishment contributes to the standard
of excellence in the City, and to the City's commitment to
professionalism, responsiveness and quality customer service
o A description of the initiative, commitment or innovation exhibited by
the employee
NOMINATED BY:
(Note: This information must be submitted with nomination form for consideration)
Name of Nominating Employee:
Job Title:
Division and Department:
Date of Nomination:
DATE: SEPTEMBER 4, 1991
TO: MAUREEN COTNER, PERSONNEL MANAGER
FROM: SCOTT I~M~ZE~I~~RISK I~d~IAGER
SUBJECT: SELECTION OF CITY HEALTH CARE CONSULTANT
On August 20, 1991, representatives from 3 firms were interviewed
in the process to select a Health Care Consultant for the City.
Interviewed were:
Alliance Brokers and Consultants
Lee Insurance Services
The Henderson Group
The oral board consisted of Mike Connor, a Streets Supervisor,
Richard Watkins from the Fire Department, Scott Manzer from Risk
Management, and Bill Douglass from the Benefits section at the
County of Kern.
The representatives were rated on various items, including
experience with government entities, technical ability,
professionalism, cost of service and accessibility.
Following the interviews, the oral board rated the candidates. Lee
Insurance Services and The Henderson Group were each recommended by
2 of the oral board members. Because of the deadlock, the oral
board ranked the candidates in order from 1 to 3. Lee Insurance
Services received 2 first place and 2 second place votes. The
Henderson Group received 2 first place votes and 2 third place
votes. A final issue was that of location. Lee Insurance Services
· is from Fresno, while The Henderson Group is from Bakersfield.
Attached is a list of the questions asked in the oral process.
1. WHICH OF THE ITEMS LISTED BELOW .WOULD HAVE NO EFFECT ON AN
INSURANCE COMPANY'S BID PROPOSAL?
2. NOT TAKING INTO CONSIDERATION ANY OTHER FACTOR, IMRLEMENTATION
OF WHICH ITEM(s) WOULD RESULT IN THE BIGGEST COST REDUCTION?
WHY?
3. NOW CONSIDERING THAT EMPLOYEES AND MANAGEMENT MUST HAVE A
MEETING OF THE MINDS IN IMPLEMENTING ANY BENEFIT CHANGE, WHICH
OF THE ITEMS LISTED WOULD BE MOST EFFECTIVE IN SATISFYING BOTH
THE EMPLOYEE AND ALSO CUT COSTS? WHY?
ITEMS FOR QUESTIONS 1-3
Adopt Pre-existing Conditions Clause
Eliminate year-end carryover of deductible
Increase deductibles
Increase stop-loss limit
Raise employee contributions
Decrease psychiatric and substance abuse coverage
4. WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF AN HMO PLAN FROM
THE STANDPOINT OF THE CITY, AND THE EMPLOYEE?
5. IN THE PAST, THE CITY HAS CONSIDERED SELF-INSURING DIFFERENT
TYPES OF INSURANCE. OF HEALTH AND DENTAL INSURANCE, WHICH DO
YOU FEEL SHOULD BE CONSIDERED TO BE SELF-INSURED, AND WHY?
6. A COURSE OF ACTION RECOMMENDED ~BY A CONSULTANT MAY NOT BE
UNDERSTOOD, MAY NOT BE COST EFFECTIVE, AND MAY NOT BE POPULAR
WITH THE INSURANCE COMMITTEE. HOW AGGRESSIVE DO YOU FEEL THE
coNSULTANT SHOULD BE IN RECOMMENDING A COURSE OF ACTION?
7. AN EFFECTIVE RETIREE INSURANCE PLAN HAS ALWAYS BEEN AN AREA OF
CONCERN FOR THE CITY. SHOULD RETIREES BE SEPARATED FROM
ACTIVE EMPLOYEES IN AN INSURANCE PLAN OFFERED? WHY OR WHY
NOT?
8. IN ANALYZING PROPOSALS FROM POTENTIAL HEALTH OR DENTAL
PROVIDERS, WHAT ARE THINGS THE CONSULTANT SHOULD CONSIDER THE
MOST IMPORTANT?
9. DO YOU HAVE ANY TIE TO A PARTICULAR INSURANCE COMPANY OR
INSURANCE PLAN?
10. WHY SHOULD YOU BE CHOSEN AS~THE-CITY'S CONSULTANT INSTEAD OF
THE OTHER CANDIDATES?
LEE INSURANCE SERVICES
Employee Benefits Specialists
August 5, 1991
Mr. Scott Manzer. Risk Manager
CITY of BAKERSFIELD
1501 Truxton Avenue
Bakersfield, CA 93301
Dear Mr. Manzer
Thank you for your letter and opportunity to work with you and the City of Bakersfield in
regard to your group benefits programs. I have enclosed the following documents for your
review:
1 - Analytical Program review - this is the approach that I would use to serve the City
and it's employees to assist you in managing your benefits program.
2 - References - this list includes clients that are similar to the City, specifically the
Madera Schools Benefits Group which includes 8 schools districts in the Central
California area. Please feel free to contact any group listed.
3 - Fees - my fee for the services listed would be $2.000 per month, paid on a
monthly basis.
4 - Resume' - this outlines my work experience within the insurance industry
As I mentioned. I have clients in the Bakersfield and Los Angeles areas and would be.willing
to meet with the City on an "as needed" basis. I also assist my clients in keeping current on
local and national trends within the benefits industry through my monthly-newsletter and
periodic mailings (I've enctsed the last three issues for your review).
I would be pleased to meet with you and your staff and the City. Insurance Committee should
yoti find my qualifications of interest.
Sincere~.~ ·
P.O. Box 14165. Pinedale. CA 93650 t209) 438-9109 * Fax 1209) 435-4914
ANALYTICAL PROGRAM REVIEW
for
CITY OF BAKERSFIELD
The analytical program review includes:
· 1. An Initial interview to determine your specific goals and objectives
2. Overview of various health care delivery systems (i.e. HMO's,
EPO's, Fee for Sevice contracts, PPO's etc.).
3. Provide overview of various funding alternatives.
4, Outline current benefit plan.
5. Compare current plan to current industry trends.
6. List suggested changes if any (benefit.eligibility etc.).
7. If currently shopping, provide benefit and cost comparison summary.
of plans currently under consideration.
8. A verbal and written report detailing items 4 through 7.
Revised 7/1/91
INTRODUCTION
The approach used involves a number of phases to analyze the internal and external
factors affecting your current benefit program and to consider any and all working al-
ternatives. The current program and any alternatives are examined as to cost effec-
tiveness, ease of execution based on the City's particular goals and objectives.
During this process I would work with the City to ensure:
1) An understanding of the City's current programs
2) An understanding of available alternatives
3) Communications support in the event changes are in order.
4) Administrative systems are in place.
In developing this proposal, I recognize the issues particular to union labor, specifi-
cally in the area of employee perceptions of benefits versus contractual obligations.
IL ANALYSIS OF CURRENT PROGRAM
Once the City's philosophy concerning benefits has been established, a meaningful ap-
praisal of the present programs can be conducted. The purpose of this phase will be to
determine whether the present programs fulfill the objectives of the City and whether
they will produce the desired results. This phase includes determining whether the
existing benefit plan is at a "competitive" level and/or whether any new plans should.
be introduced.
llI. DEVEI.OPING ALTERNATE PROGRAMS
Assuming parts of your employee benefits program are not consistent with the City's
objectives, I will develop detailed descriptions of suggested revisions or new plans,
and the considerations of each. The results of this analyses will be reviewed with the
city.
The City will then be in a positon to make the most appropriate choices among avail-
able 'alternatives and to decide on those alternatives for which more detailed cost esti-
mates shoud be prepared.
During this process I would serve as a reference source. I am able to reflect on prior
experience, what other employers are doing, state current industry wends and provide
a cost/benefit analyses of the choices. My role should be to Provide you with as much
knowledge and information as possible, as well as all reasonable alternatives so the
most intelligent and appropriate decisions can be made for the city and its employees.
We will also provide cost estimates for the proposed revisions or new plans. A com-
prehensive written report will be prepared which will contain a detailed description of
the City's current program and any recommended program changes and related costs.
IV. IMPI~EMENTATION
AsSuming changes in the exisiting benefits program are in order I Will assist through-
out the implementation process. I will also assist your legal counsel at his request.
While it is impossible to determine, at this point, what changes might be called for we
will assist in such areas as:
1) Appearing before City representatives to expand on the analyses
and conclusions and, if necessary, make revisions.
2) AsSist your legal counsel .in the drafting of necessary legal documents.
3). Developing new administrative procedures.
4) Assist with the development of plan' specifications for insurance company
bidding and solicit insurance company proposals.
5) Assist in the communication of plan changes to employees.
Profile
of
DENNIS 0. LEE
I have spent the last 14 years specializing exclusively designing various forms of employer health plans
ranging from fully insured to fully self insured programs. I am licensed both in the States of California
and Oregon and have a comprehensive working knowledge of the benefits industry; which includes
indemnity carriers, reinsurance markets, health maintenance organizations, preferred provider organi-
zations, exclusive provider organizations, third party administrators, and current cost containment
methodologies. Additionally, I have a well rounded working knowledge of COBRA, Section 125(cafe-
teria plans), TEFRA, ERISA and additional government sponsored issues that affect Health and Welfare
plans.
1976 - 1981 Producing Agent for Tromp & McKinley, Eugene, Oregon. Tromp & McKinley is
the largest independent insurance agency in Southern Oregon, My education in
employee benefits started here. Completed all basic insurance training specializing in
self funded group benefit plans.
1981 - 1983 Owner of Northwest Benefits Inc., in Portland Oregon. Responsible for all large
group benefit consulting. Sold finn to Rollins Burdick Hunter, a national insurance
brokerage firm in 1983. During this same period was a limited panner in Third Party
Administrators Inc., Portland, Oregon.
1984 - 1988 Vice-President of Marketing, Western States Administrators Inc., Fresno, California
1989 - Health Plan Consultant affiliate of Central California Actuaries, Inc., Fresno, Ca.
Principal of Lee Insurance Services, Fresno, California
References: Scott Barnett, Director Marketing Cynthia Correia
Great West Life Assurance Co. Director of Business Services
415-882-7788 Madera County Superintendent of Schools
209-673-6051
Ms. Cinda Davidian, VP Joan Dunleavy
Guardian Life Insurance Co. Lexington Insurance Co.
800-438-5853 415:445-2739
Fred Lehn, Vice Pres.ident Louis Kent
U.S. America Administrators ' Director of Actuarial Services
800-533'-3373 Blue Shield of California
415-445-5576
GROUP REFERENCE ACCOUNTS
1. Ruiz Food Products, Inc. 700 employees
Contact: Fred Ruiz / Ismael Santana
(209) 688-2972
2. Madera Schools Benefits Group 1200 employees
Contact: Cynthia Corriea
(209) 673-6051 X222
3. JEM Management 170 employees
Contact: Bob Cherry
{'209) 225-6137
4. Other Group Accounts:
- Producers Dairy 280 employees
- Kings County Truck Lines(new) 180 employees
- Merced Family Health Clinic 110 employees
- Gang Nail Truss Inc. 150 employees
- City of Sanger (consultant) ~110 employees
- Clinica Sierra Vista 120 employees
- Fresno Medical Society 65 employees
- US America Administrators 60 employees
- Sturgeon & Beck 35 employees
- Ace Sprinkler Company 55 employees
- Kings Orthopedic Center 60 employees
- Stanley's Mini Marts 15 employees
S unAm~ica S~-uriti~
Member NASD ~ fil~
22~ G S~t
B~nfield. C~fo~a 93301
805) 322-2522
~--," SunAmerica Securities
~ A SunAmerica Company
THE HENDERSON GROUP
August 15, 1991
City of Bakersfield
Office of Risk Management
1501 Truxtun Avenue
Bakersfield, CA 93301
Attention Mr. Scott Manzer
Dear Mr. Manzer:
Thank you for the opportunity to prepare a proposal for the City of
Bakersfield pertaining to the need for an .insurance consultant to
analyze,, recommend and assist in the implementation of the multi-
year approach to the health and dental insurance issues that are
.facing the City's employees and its management. ·
Enclosed you will find an outline of our approach to this important
task, information about who we are and whom we serve, as well as
our proposed fees and conditions.
We look forWard to the challenge of working on this project With
the City. As concerned citizens, we too are anxious to help find
ways to minimize the expense, while maximizing the benefit dollars
of health care for its present and retired employees.
very truly yours,
Craig ~. Henderson, Owner
THE HENDERSON GROUP
BACKGROUND
THE HENDERSON GROUP has been in Bakersfield since 1984. We are an
independent agency which specializes in insurance,' investment
counseling and retirement planning. THE HENDERSON GROUP offers
their services throughout California concentrating their efforts in
Kern and Los Angeles Counties. Our business prospers through an
aggressive marketing plan and referrals from clients, attorneys,
.CPAs and other business professionals. THE HENDERSON GROUP offers
securities and investments through SunAmerica Securities, a member
of NASD SIPC, which is owned by Broad, Inc. of Los Angeles,' whose
New York Stock Exchange symbol is BRO. Broad Inc. has assets and
assets under management of twelve and one half (12 1/2)'billion
dollars.
PROPOSED FEES AND CONDITIONS
In return for the consultation services specified above, the City
of Bakersfield agrees to pay THE HENDERSON GROUP $12,000 (exclusive
of expenses).
Payment is 'to be made in two (2) equal installments of $6,000, the
first installment due September 15, 1991 and the last payment to be
made upon project completion or January 31, 1992, whichever occurs
first.
This remuneration entitles the City of Bakersfield to up to twenty-.
four (24) hours of consultation services per month. Additional
time requirements would be billed at an hourly rate of One Hundred
Twenty Dollars ($120) per hour.
Costs excluded from consultation fee include, but are not limited
to, travel, printing, express mail, fax; transportation and long
distance telephone charges (transportation and travel expenses will
be pre-approved, in writing).
Other expenses incurred on behalf' of the City of Bakersfield
relative to the project will be billed separately each month.
APPROACH OUTLINE
I ASSESSMENT PHASE
- Current coverages
- Needs and utilization review
- Aggregate costs
II ANALYSIS PHASE
- Employee and dependent usage
- Retiree and dependent usage
- Eenefits and other options
- Future budget constraints
III REQUEST FOR PROPOSAL PHASE (Packaging Phase)
- Set cost parameters
- Collate and prioritize desired benefits
- Select insurance markets and carriers
- Send out requests for proposals
IV EVALUATION PHASE
- Collect and evaluate responses
- Areas of consideration
1._ Financial strength
2. Reputation and performance 3. Timeliness of claims processing
4. Problem solving
5. Years in business
Cost containment
V SELECTION AND RECOMMENDATION PHASE
- Review and evaluate proposals
- Select and recommend companies