HomeMy WebLinkAbout09/17/1992A1 , C Patricia J. DeMond, Chair
Staff: Maureen Cotner/ Lynn Edwards
/
Mark Salvaggio
AGENDA
PERSONNEL COMMITTEE
Thursday, September 17, 1992
4:00 p.m.
City Manager's Conference Room
1. Update: Health Care Consultant (Cathy Williams)
2. Revision of Job Specifications (Janet McCrea)
A. Principal Planner/Airpark to Airport Supervisor (Salary
Change)
B. Law Office Administrator
3. General discussion of Reward Strategy Group study including
Personnel Manager position (Alan Tandy)
SUMMARY OF HEALTHCARE CONSULTING SERVICES MEETING
AUGUST 28, 1992
Executive Summary
The City's primary objective is to control health insurance costs because funding for
health insurance in the City's budget is limited.
Through their representatives, the 8 bargaining units and the retired employees agreed
to share in the cost of health insurance. Accordingly, the health plans' 1993 rate
increases will be shared by the employees.
MM&D's task is to develop a multi-year strategy to control health insurance costs through
plan design, funding considerations, and identification of competitive vendors.
Summary of Meeting
In attendance: Maureen Cotner, Cathryn L. Williams, Herb Kaighan, John Colvin.
This summary is presented in the same order as the agenda.
1. Organizational Structure
MM&D's reports and recommendations will be reviewed by Maureen Cotner, Alan
Tandy, the Insurance Committee, the Personnel Committee and City Council. The
Insurance Committee is comprised of representatives from the 8 bargaining units
and a representative for retired employees. A City staff representative attends the
meetings of The Insurance Committee, Personnel Committee and City Council.
2. Decision Process
The Insurance Committee makes recommendations to the Personnel Committee
that, in turn, makes recommendations to City Council. The City Manager also
reviews recommendations.
3. Primary Groups
There are two categories of active employees participating in the health plans:
a) 8 bargaining units:
Blue collar Non exempt
White collar Non exempt
Fire Non exempt
Police Non exempt
General supervisory Non exempt
Fire supervisory Non exempt
Police supervisory Non exempt
Management, Safety, Miscellaneous (non-safety) Exempt
b) 8 elected officials.
There is also a category of retired employees whose health coverage is continued
post employment.
Cathy Williams gave us an employee enrollment summary, active employees'
group health insurance rates and retired employees' group health insurance rates.
These rate sheets show the total premium, City contribution and employees/retired
employees' contributions. Elected officials make no contributions. The bargaining
units' have 'different' employee contributions negotiated by the units'
representatives.
The same medical plans are offered to all bargaining units, retired employees and
elected officials.
The same dental plans are offered to all bargaining units and elected officials.
Retired employees are not eligible for dental plans.
To be eligible for health insurance, retired employees must have at least 15 years
of service and be 50 years old. Retired employees can add dependents to the
health insurance plan after their date of retirement.
4. Any active employees excluded from coverage
Employees designated as temporary employees work less than 960 hours per
calendar year and are not eligible for health insurance.
5. Any non employees (i.e. council members)-covered
Elected officials receive health benefits at no cost.
6. Benefit plans pursuant to a collective bargaining agreement
All 8 bargaining units are eligible for the same health plans.
7. Financial and human resources employee benefits philosophy and objectives
UntiJ 6 years ago, the City paid the full cost of health benefits for employees and
their dependents. Now employees share in the cost of health insurance premiums.
Due to financial restraints the City has limited funds available for annual health
insurance rate increases; as a result, active and retired employees will be asked
to accept either more responsibility in either sharing the increasing costs of health
insurance or accepting modified benefits designed to control costs.
The City has assumed a responsibility to support family coverage and also to
subsidize the indemnity medical plan for retirees.
Employee education regarding the value of health benefits should be more actively
promoted.
MM&D's task is to develop a multi-year health plan strategy (3-5 years). This
would include rate caps, plan design, funding considerations and alternate
healthcare delivery systems.
MM&D will recommend the retention of an indemnity plan Wherein employees
retain their freedom to choose health providers.
We understand CaliforniaCare's rate increase, which will occur effective January
1, 1993, is capped at 13%; however Blue Cross' indemnity plan's rates are not
subject to a cap at renewal which is January 1, 1993.
Maureen will give us a copy of the health insurance provisions of the collective
bargaining agreements that were negotiated for either 2 or 3 years. None of the
agreements renew January 1, 1993. It is our understanding employees will share
in increases in the health insurance premiums.
The City self insures their Workers' Compensation insurance. We would like to
arrange a meeting with the City's risk manager to discuss the claims administration
for the Workers' Compensation Coverage and possible coordination with health
care administration.
8. Is there a 3 to 5 year plan in any area
There is no 3 or 5 year plan in effect.
9. Plan Implementation
The target date for implementation of any changes is January 1, 1993. The City
encourages vendor access to employees. The ideal open enrollment date is mid
November. However, mid December would be acceptable with potential
retroactive adjustments in payroll deductions.
10. Risk Philosophy, funding considerations
The inforce health plans are fully insured.
Self insurance should be considered. However, because the City has a fixed
budget for health insurance costs the City may not want the adverse risk exposure
resulting in unanticipated financial losses or precipitous fluctuations in cash flow.
MM&D will further investigate this option and report its findings and
recommendations.
If the City wants to investigate the risks involved in self funding, they should begin
with the dental and vision plans because of the predictable limited exposure.
11. Medical/Dental budget 1992; 1993; thereafter
MM&D will review letters, memos and other correspondence received from C.
Williams to familiarize themselves with the City's budget for health insurance.
12. Contribution philosophy: employee; dependent
Active and retired employees share in the costs of health insurance.
The defined benefit approach is where an employer commits to the benefit design
regardless of cost increase. The defined contribution approach is where the
employer limits its liability via a set dollar amount and future increases are decided
upon as they occur.
Lifestyle policies that penalize smokers, overweight persons etc. are discussed
widely but implemented by only a few companies. For example, Texas Instruments
makes a $10 monthly surcharge on health insurance for employees and
dependents who smoke.
13. Carrier history, predisposition for or against any carriers
Blue Cross indemnity medical and dental plans have been in force since 1965.
CaliforniaCare replaced Health Net on 3-1-92. The 2 prepaid dental plans: K&R
and HBI replaced Dental Net on 1-1-92. These two contracts need to be reviewed
and made more parallel. MM&D will do a site visit.
There is no predisposition for or against carriers. However, plans that contract
with local providers should include ail local hospitals.
14. Benefit change history, implement changes gradually or all at once
The City is conservative in making benefit changes. Historically, changes are
implemented gradually. Employees need to be educated concerning the cost of
benefits. Refer to Number 16 for benefits.
15. Competitive position: industry; public entities
Employees seem satisfied with health benefits. Medical and dental plans appear
to be comparable to competitor's plans. Rates appear very competitive. The City
wants to be and is perceived to be an employer with one of the better benefit
packages in the city.
16. Benefits - improvements, reductions, changes, adequacy
Blue Cross' indemnity medical plan is a basic plus major medical plan with a fee
schedule. There is no pre-existing conditions provision.
The CaliforniaCare Plan is Plan C.
The Blue Cross provides the indemnity dental plan and there are 2 separate
prepaid dental plans.
The following ideas were introduced into the discussion:
The indemnity plan should be revised to a state-of-the-art managed care
major medical.
There should be a pre-existing conditions provision in the indemnity medical
plan.
- Certain preventative benefits should be considered for the indemnity
medical plan:
prenatal care
well baby care
immunization
physical exam allowance to encourage periodic checkups
The City should consider a carve out plan for prescription drugs and for
mental and nervous/substance abuse benefits.
- There may be a more cost effective way of delivering dental benefits: one
organization providing both the indemnity and the pre-paid benefits.
- Retired employees should not be permitted to add or change dependents
after their date of retirement.
The Blue cross indemnity medical plan should include centers of excellence
for expensive treatments (i.e. heart transplants - Stanford University).
- Extend eligibility period from first day of the bi-weekly pay period following
date of employment to a waiting period of one or two months.
A commentary and recommendations concerning these issues and other cost
containment plan modifications will be included in our Phase I report.
MM&D will prepare a detailed comparison of benefits, limitations and exclusions
between the medical, dental and vision plans as soon as we receive the plan
materials we requested from Blue Cross, K&R and HBI.
17. Cost containment philosophy and history
The City supports cost containment provisions as a means to control the City's
health insurance costs.
The Blue Cross indemnity plan incorporates the following cost containment
provisions: hospital pre-admission review, hospital continued stay review, large
case management.
Cost containment provisions are inherent in HMO plans, like CaliforniaCare,
because physicians receive a monthly capitation fee per enrollee regardless of the
cost of medical services rendered.
Unlike medical plans, dental and vision plans do not have cost containment
provisions because these plans have maximum payment caps or scheduled
copayments.
18. Tax and legislative compliance issues
These issues involve COBRA, ERISA, ADEA, state mandated benefits for fully
insured plans, etc. Local government employee welfare plans are not covered by
ERISA. We will review each plan in light of current compliance issues.
19. Carrier satisfaction, selection of HMOs, PPOs, prepaid dental plans
The City and their employees appear satisfied with the current health plan vendors.
20. Administrative concerns
The City uses the enrollment materials provided by Blue Cross, CaliforniaCare,
K&R and HBI.
Employees are eligible the first day of the bi-weekly pay period following the date
of employment.
Billing and COBRA administration are handled by C. Williams. There are currently
29 COBRA participants.
21. Desired reports/frequency
Monthly reports are desired. One of MM&D's consulting responsibilities is to
gather all reports from Blue Cross, CaliforniaCare, K&R and HBI, analyze the
reports and prepare a summary report for the City. The format of these reports
will be tailored to respond to the City's needs.
22. Employee
For definition and categories refer to Numbers 3 and 4. The City has no problem
recruiting for open positions. Turnover is very Iow - 2-1/2%. Morale appears to
be good.
Pre-employment physicals and drug screening tests are required for all potential
employees.
23. Dependent
Definition of spouse means legal spouse. Spousal equivalents are not eligible for
coverage.
Blue Cross indemnity medical and dental, CaliforniaCare and HBI: definition of
dependent child is 19 or 23 if unmarried and declared a dependent for federal
income tax purposes. K&R unknown.
The procedure for verification of dependent eligibility needs to be reviewed.
24. Personnel policy/practice
MM&D will compare the definition of the following provisions as they appear in the
City's employee handbook and in the group health insurance contracts and
certificates:
Leave of absence
Disability
Maternity
Strike
Layoff
Retirement
Rehire
Surviving dependents
25. Eligibility
The waiting period is the time between the date an employee is hired and the time
his insurance is effective. An employee's insurance is effective the first bi-weekly
pay period following date of hire.
The Blue Cross indemnity medical and dental plans do not have a pre-existing
conditions provision.
CaliforniaCare, an HMO, cannot have a pre-existing conditions provision.
There appears to be switch enrollment, not open enrollment. Open enrollment
means an employee who elected not to enroll himself and dependents when first
eligible may enroll himself and dependents during the open enrollment period
without being subject to health underwriting.
Switch enrollment means an employee and dependents enrolled in either Blue
Cross indemnity plan or CaliforniaCare can switch plans during switch enrollment
without being subject to health underwriting. Dependents who did not enroll when
first eligible may enroll during switch enrollment. They may be required to submit
evidence of insurability.
26. Cost reduction provisions
The Blue Cross indemnity health plans have COB and subrogation. In our report,
we will explain the advantages of non-duplication which may discourage
simultaneous enrollment in 2 group health plans.
27. Choice/Flexibility
City does not have a cafeteria plan allowing employees to choose and/or trade
employee benefits. We will review the feasibility of high/Iow and opt out optio, ns.
28. Carve out plans
Carve out plans are cost effective because they monitor access to providers,
establish discount reimbursements for services rendered and provide meaningful
reports that analyze utilization of these listed services. See number 16.
29. Wellness; safety, utilize city facilities
City's risk management is involved in safety programs. The City manages no
health facilities.
30. Section 125: FSA; dependent care accounts, premium conversion
PremiUm conversion and flexible spending accounts are handled by Penn Comp
Benefits Services (Fresno).
31. Supplemental health programs, payroll deduction programs, vendor
presentations
These types of programs are offered through the unions (e.g., Police Benefit
Association).
32. · Employee education regarding knowledge of benefits, how to use plans
MM&D will offer suggestions regarding communicating the value of benefits to
employees.
33. Communication protocol; internal communications
Refer to Number I and 2 / ·
34. Time frames, activity chart, assignment of responsibilities
Refer to Phase I and II Sample Schedule (attached). No changes at present.
35. Underwriting Information (data requirements)
We reviewed underwriting data. MM&D will review claims reports and utilization
reports from Blue Cross, CaliforniaCare, K&R and HBI before contacting Maureen
Cotner and Cathryn Williams for additional information.
36. Life/AD&D Insurance
Manufacturers Life underwrites the City's Life/AD&D plan. Some companies
require a minimum amount of Life/AD&D insurance on all employees in order to
underwrite a medical plan.
37. Format of written report and summary report (page 2 Consultant's
Agreement)
MM&D will use their standard report format: executive summary, analysis and
recommendations.
38. Description of itemized billing
Enclosed is a list of engagement codes which are automatically summarized on a
monthly engagement billing memo.
CITY OF BAKERSFIELD CLASS SPECIFICATION: 208
UNIT: SUPERVISORY
EEO4: PARA-PROFESSIONALS
CLASS TITLE: LAW OFFICE ADMINISTRATOR
CLASS SUMMARY:
Under direction, provides difficult, sensitive, and confidential office administrative support
to the City Attorney's Office; provides daily supervision for a staff of Legal Secretaries,
Office Assistants, and part-time employees.
REPRESENTATIVE DUTIES:
The following typical tasks and responsibilities are representative of the position's
essential duties. They are descriptive, not limiting.
Essential Duties
Organizes, schedules, supervises, and reviews the work of assigned permanent and
temporary staff; trains staff in law office work procedures, sets priorities, and follows up
to ensure accurate and timely completion of assigned work; counsels and disciplines
employees who are not performing up to standards; assists in the selection' of office
staff; assists in establishing goals and objectives for the City Attorney's Office; compiles
budget figures and assists in administering and monitoring the annual budget; maintains
personnel records and coordinates the administration of annual performance appraisal
process for the office;, supervises and monitors purchasing functions;' researches and
assembles information from a variety of sources for the completion of forms or the
preparation of reports; makes arithmetic or statistical calculations; provides information
to the public or to City staff that may require the use of judgment and the interpretation
of policies, rules or procedures. May be required to perform confidential work for the
City Attorney.
Organizes and maintains various departmental files; proofreads and Checks materials
for accuracy, completeness, and compliance with policies and regulations; enters and
retrieves data and compiles reports from on-line or personal computer systems; attends
to a variety of office administrative details such as ordering supplies, arranging for the
repair of equipment, transmitting information, and keeping reference materials up to.
date; receives and screens visitors and telephone calls, providing information which may
require sensitivity and use of independent judgme~nt; maintains the master calendar for
the City Attorney's Office; verifies and monitors timelines for all legal deadlines and
filings; maintains strict confidentiality for office files; reviews and routes all incoming
correspondence; logs all Summons and Complaints, schedules
response dates, confers with City Attorney and routes to legal staff for assignment;
prepares and processes payroll changes; monitors all department travel arrangements.
CLASS TITLE: LAW OFFICE ADMINISTRATOR
DISTINGUISHING CHARACTERISTICS:
This is the highest level, and the first supervisory level, in the office administration series
and is equivalent to the Administrative Assistant II class in departments other than City
Attorney.
QUALIFICATIONS GUIDE:
Knowledge of:
Supervisory principles and practices; the City organization, policies, ordinances,
and operating procedures; law office administrative and management practices
and procedures; basic functions of public agencies, including the role of a City
Attorney, City Manager, an elected City Council and appointed boards' and
commissions; proper legal form for typed materials; basic budgetary practices
and business arithmetic; correct English usage, including spelling, grammar,
punctuation, and legal terminology; basic business data processing principles and
the use of word processing or personal computing equipment; record keeping,
filing methods, and purchasing procedures.
Ability to~
Organize, schedule, assign, review, and evaluate the work of others; set priorities
and meet critical deadlines; train others in work procedures and performance
standards; read and interpret rules, policies and procedures; organize, research
and maintain office legal files and calendars; compose, routine legal
correspondence from brief instructions; use initiative and sound judgment within
established guidelines; operate standard office equipment, including a word
processor and centralized telephone equipment; use tact, discretion, and
prudence in establishing and maintaining effective working relationships with
those encountered in the course of the work; maintain sensitive and confidential
law office informat on
Trainin.q and Experience:
A typical way of obtaining the knowledge, skills, and abilities outlined above is:
.Graduation from high school, or G.E.D. equivalent; and six years of progressively
responsible secretarial experience, cf ,,,~,,,,h i~i~ii~ four years ....
'in an administrative position with supervisory responsibilities.
Physical Conditions or Special Workinq Conditions:
Standard office environment and working conditions.
Approved by the Miscellaneous Civil Service BOard: 5-19-92
Approved by the City Council: 7-15-92
MISC\LAWOFF,ADM
"NEW JOB SPECIFICATION"
CITY OF BAKERSFIELD CLASS SPECIFICATION: 902
UNIT: GENERAL SUPERVISORY
EEO4: PROFESSIONALS
CLASS/TITLE: AIRPORT SUPERVISOR SALARY RANGE: $3101-$3769
CLASS SUMMARY:
Under general direction, plans, schedules and supervises the operations and functions
of the City-owned airport; develops, recommends and implements approved services to
general aviation customers; initiates and maintains public safety standards for the facility.
REPRESENTATIVE DUTIES:
The following typical tasks and responsibilities are representative of the position's
essential duties. They are descriptive, not limiting.
Essential Duties
Coordinates and conducts on-site supervision of the Municipal Airport, including some
negotiation, development, and administration of leases and rental agreements, tenant
supervision, assists in coordination of all construction and maintenance activities, and
airfield operations; recommends policies and procedures, conducts and documents
necessary inspections to ensure the safe operation of.the facility; prel~ares and
administers federal .and state grants pertaining to airport development, construction, and
operation; assists in the development of long-range plans for the airport and the
surrounding community, including capital improvements; prepares, submits, and
administers the approved airport budget; coordinates airport programs and activities with
other City departments, other governmental agencies, and private organizations or
businesses; makes decision within specified limits regarding airport usage.
QUALIFICATIONS GUIDE:
Knowledqe of:
Principles, practices, and methods of administrative and operational program
supervision; principles and techniques of facility and tenant supervision; airport
operations, promotion, 'and development; pertinent federal, state, and local
regulations, codes, and zoning ordinances; grant application funding and
administration; methods and procedures for budget development and
administration; financial and statistical analysis techniques.
CLASS TITLE: AIRPORT SUPERVISOR
Ability to:
Plan, organize, implement, coordinate, and supervise a City-owned general
aviation airport; administer, lease-hold contractS; analyze and recommend
solutions to difficult issues pertaining to the facility and its operation; prepare
clear, concise, and complete reports, documents, and correspondence; effectively
market and promote the facility to the general public; represent the City effectively
in meetings and presentations to community groups, governmental bodies, the
· media, and the public; exercise sound independent judgment and initiative within
established guidelines;
Training and Experience:
A typical way of obtaining the knowledge, skills, and abilities outlined above is:
Graduation from an accredited four year college or university with a Bachelor's
Degree in business administration, public administration, finance, or a related
field; and two years of increasingly responsible experience in business
development, and airport, operations. Additional experience in business
development and airport operations may be substituted for the education on a
year-for-year basis to a maximum of two years.
Licenses; Certificates; Special Requirements:
Possession of a valid CalifOrnia driver's license, Class C.
Physical Conditions or Special Working Conditions:
Standard office environment and working conditions.
Approved by the Miscellaneous Civil Service Board:
Approved by the City Council:
MISC~AIRPORT,SUP
"OLD JOB SPECIFICATION"
SALARY RANGE: #3848 - $4677
CLASS TITLE: PRINCIPAL PLANNER/AIRPARK (Option Two) 989
I
CLASS CHARACTERISTICS:
Under general direction, is responsible for the on-site management
and development of the Bakersfield Airpark. Individuals employed
in this capacity will have a variety'of tasks and responsibilities
for the development of businesses and general economic development
projects within the environs of the Airpark. They will be
responsible for the management of the Airpark facilities and must ,
interface with state and federal regulatory agencies. They will
generate and administer grants relating to the acquisition
and development of the Airpark and will be responsible for the
public relations and community relations relating to the activities
of the Airpark.
EXAMPLES OF DUTIES:
This position will provide on-site management of 'the Airpark
including the administration of leases and rental agreements
coordinating, the maintenance of the facility; assisting in the
developing of long-range plans for the Airpark and its environs
including capital improvements; and working with other City
departments or governmental agencies that are actively involved.
in the maintenance and operation of the Airpark. This position
will require interaction with companies or individuals interested
in developing businesses on the Airpark. Additionally, it will
require working as the City's representative in the South East
Enterprise Zone effort. This individual will be responsible for
the writing and coordination of grant applications dealing with
the Airpark development and Economic Development projects.
DESIRABLE MINIMUM QUALIFICATIONS:
Training and Experience: Graduation from a recognized college
with a degree in business administration, planning., finance,
or accounting or other related discipline, four years of profes-
sional, progressive experience in the fields of business develop-
ment, economic development or an airport management program' that
has had heavy emphasis in business and economic development; a
Master's degree in planning or business or a related field may
be substituted for one year of experience.
Knowledge, Abilities and Skills: Considerable knowledge in
business operation management or development; considerable
knowledge in the management of airparks is highly desirable;
knowledge of the legal requirements of planning, zoning and land
use issues is required. Experience in grant writing and adminis-
tration is highly desirable. Ability. to work with a cross-section
of conununity essential.
7/85
Approved by the City coUnci!~ 6-18-85
Approved by the'Civil Service Board: 7-16-85
B A K E 'R S ,F I E 'L D
MEMORANDUM
September 9, 1992
TO: DEPARTMENT HEADS / /
FROM: ALAN TANDY; CITY MANAGER
SUBJECT' RSG STUDY
Large·components of the RSG Study have been placed on hold pending my arrival.
I have reviewed the document and have spoken to a number of people in the
organization about specific elements contained in it. I am aware of the fact
that it contains sensitive recommendations which cut both ways; some people are
very supportive, others are strongly opposed. Being new, I do not feel
comfortable simply reading the study and making decisions relative to its
disposition. I, therefore, request your assistance with the following:
1. If there are any of the organizational issues'identified in the RSG Study
which are of short-term significance to you, or your operations, please
bring these forward to me along with written justification detailing the
actions you would like to be taken by Friday~ September 25. This would
only be for items where something is taking place where your operations
would be damaged through a delay of sixty to ninety days in implementation
of the study.
2. I would like each of you to provide me an analysis showing which of the
organizational issues identified in the RSG Study. you would like to see
implemented and which you would not. You may feel free to recommend your
own organization alternatives instead. Along with that should come your
logic and reasons behind your belief. I would like you to have these
documents submitted to me no later than Friday, October 9.
To the extent that you may need to discuss issues with me during the timePeriod
when you ·are.preparing your written reports, please feel free to contact me.
Your cooperation is appreciated.
AT.alb
cc: Maureen Cotner
John W. St~nson