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HomeMy WebLinkAbout08/17/1992 BAKERSFIELD Patricia J. DeMond, Chair Lynn Edwards Mark Salvaggio Staff: Maureen Cotner .. AGENDA PERSONNEL COMMITTEE Monday, August 17, 1992 12:00 Noon City Attorney's Conference Room 1. Health Care Consultant Contract 2. Revision of Job Specifications A. Principal Planner/Airpark to Airport Supervisor (Salary Change) B. Construction Inspector 1/11 3. CreatiOn of Job Specifications A. Chief Assistant City Attorney 4. Salary Adjustment for Fire Captain/Training 5. Correspondence from Chuck Waide A. Ordinance 2.84.490, Sick Leave - Policy (B) B. Ordinance 2.72.230, Layoff or Demotion Consultant'' s Agreement MILLER MASON & DICKENSON AGREEMENT NO. CONSULTANT' S AGREEMENT THIS AGREEMENT, is made and entered into as of , 1992, by and between CITY OF BAKERSFIELD, a California charter city (hereinafter called "City"), and MILLER MASON & DICKENSON, a wholly-~ .owned subsidiary of AON CORPORATION, a corporation qualified to do business in California (hereinafter called "Consultant"). RECITALS A. City has issued a "Reques= for Proposals." In response, Consultant has tendered to City a "Proposal For Health Care Consulting," the four "Sections" of which City and Consultant attach as Exhibit "A;" B. Consu, ltant represents it is professionally- experienced and well qualified to analyze and assist City in connection with health care services; C. City does not presently have, but Consultant does have, expertise on staff to analyze, recommend, and implement a multi-year strategy to control health- care costs for active employees and retirees; and D. Consultant is aware that certain forms of information may come into Consultant's possession which may impact City's legal position if such information were to be released to outside parties; and E. City desires to employ Consultant and Consultant wishes to be employed to: a) analyze data, and present alternatives to City's present health-care system; b)facilitate discussion, of alternatives; and c) make recommendations respecting the possible alternatives. Page 1 of Twelve Pages Consultant' s Agreement MILLER MASON & DICKENSON NOW, THEREFORE, incorporating the foregoing recitals herein, City and Consultant agree as follows: 1. SCOPE OF WORK. Consultant shall a) review and analyze City's medical- and dental-benefit plans for active and retired employees; and b) come to Bakersfield once each · month and meet with persons designated by City's Contract Administration; and c) prepare meeting materials and perform research necessary to facilitate such meetings; d) recommend changes to current benefit plans; e) if necessary, prepare requests for proposal from alternate health- and dental- benefit vendors; f) analyze proposals from vendors and compare the present to proposed programs (when City requests, to various "City groups"); g) recommend procedure for selection among alternate vendors. Consultant's written reports in support of the foregoing tasks shall be in a mutually-agreed format and shall include a "summary" report to City by such date and dates as shall be agreed upon between City and Consultant. Consultant's services shalI include all procedures and work necessary to properly and professionally complete the tasks Consultant hereby undertakes to perform, whether specifically included in the "scope of work" or not. Consultant shall complete Phase I and Phase II (as described in Section 3 of Exhibit "A") during the first contraCt year (that is, the first one-year term), except Phase I activity "Wellness Evaluation" (Section 2 item I, pp 8-10), and. the Phase II activity "Communication of Benefits" (Section 2 item D, page 12). These two "excepted" activities can be reinstated as originally proposed at City's option at any time while this Agreement is in effect. Page 2 of Twelve Pages Consultant's Agreement MILLER MASON & DICKENSON 2. BEGINNING DATE/RENEWALTE~S Consultant's engagement shall begin on August 27, 1992, and shall terminate on August 26, 1993. City shall have the option to extend the term of this Agreement for two additional one-year terms. If City -wishes to exercise an option for an additional one-year term, it shall do so, in writing. Such writing shall be mailed to Consultant at the address set forth hereinbelow, by Certified Mail, return receipt requested. To be an effective exercise of option, such writing must be received by Consultant at least one month before the end of the then-current one-year term. 3. COOPERATION. Upon request, City (and its officers and employees) shall provide Consultant with information necessary but not available to Consultant from other sources. City shall not be obligated to provide such information unless it is reasonably required by Consultant to perform the services within the "Scope of Work" in paragraph 1, above. 4. COMPENSATION. Consultant attaches, as Exhibit "B", a list setting forth the job title and function of the persons it proposes do the work described in paragraph 1 ("Scope of Work") hereinabove. Schedule "B!' also sets forth the. hourly rate of compensation City shall pay to Consultant for the services of each job title listed. City shall pay for the work described in paragraph 1 ("Scope of Work") pursuant to Exhibit "A", Section 3); provided, however, the total amount payable by City hereunder shall not exceed $25,000. during the first one-year term. Should City act to terminate this contract, as permitted herein, City's obligation to pay for' work done to date of termination shall not exceed the reasonable value of services it received. Consultant shall provide a detailed and itemized billing, setting forth the work done and the time spent by Consultant's personnel during the preceding billing period. Page 3 of Twelve Pages Consultant's Agreemen~ MILLER MASON & DICKENSON During any option term, the maximum monthly amount City shall become obligated to pay is $2,000. The maximum amount City shall be obligated to pay during any option year shall not exceed $24,000. The figures set forth in this paragraph are not to be. construed as any form of "warranty" that the City will employ Consultant to the extent of those amounts or of any amounts at all. The compensation set forth in this paragraph 4. ("Compensation") shall be the total compensation for the services provided by Consultant including all out- of-pocket cost incurred by Consultant. City shall pay no fee other than the compensation listed in this paragraph unless otherwise agreed in writing by City and Consultant. City agrees, however, it will reimburse Consultant for actual costs of meals and lodging up to a maximum of $1,000 during ~he first contract year. 5. PAYMENT PROCEDURE. As set forth in Section 3 of Exhibit "A" Consultant shall tender to City an itemized invoice (on a monthly basis) for services rendered. City shall pay such invoice after City approves the work and within'30 days after City approves Consultant's itemized invoice. An invoice will be deemed "approved', if, within ten working days after City receiVes the invoice, City has not informed Consultant of any disputed amount. City shall pay any "non-disputed" amount within 30 days after City receives the invoice. City and Consultant shall, within a reasonable time after City "disputes" any amount, negotiate in good faith to resolve the matter; thereafter either City shall pay-the "diSputed'' amount or Consultant shall cancel the amount. 6. TITLE TODOCUMENTS. All documents, plans, and drawings, maps, photographs, writings (as writings are defined by California's Evidence Code Section 250), and other papers, or copies thereof, prepared by Consultant pursuant to or in connection with this Agreement, shall, upon preparation, become the exclusive property of City. Page 4 of Twelve Pages Consultant's Agreemen~ MILLER MASON & DICKENSON 7. CONFIDENTIALITY. During the term of this Agreement, Consultant will obtain, and be dealing with, information of a legal, and confidential nature. Such information could severely damage City if any~of it becomes disclosed to outside parties. Consultant, therefore, will not disclose to anyone, directly or indirectly, either during the term of this Agreement or at any time thereafter, any such information or use such information other than as necessary to perform the ° services to City under this Agreement. All writings that Consultant prepares, and confidential information that. City might give to Consultant. in the course of providing services under this Agreement, are the exclusive property of City and shall remain such. Under no circumstances shall Consultant remove any such information or documents from City's possession without City's written consent first being obtained. 8. NEWS ~.~SES/INTER"~/EWS. Consultant shall not participate in, or provide comment for, news releases, media interviews, testimony at hearings, or public comment, unless expressly authorized in writing and in advance, by City's Contract Administrator. 9. WAIVER OF.DEFAULT. If either party should fail or neglect to, enforce any provision of this Agreement against another party, such failure or neglect shall not constitute a waiver of that party's right to enforce such provision at a later time, and shall not serve to vary the terms of this Agreement. 10. FORUM. Any lawsuit pertaining to any matter arising under, or growing out of, this contract shall be instituted in Kern County, California. This Agreement is to be interpreted and performed in accordance with the laws of the State of California~ 11. ARBITRATION. ~ Any controversy or claim arising out of or relating to this agreement, or the breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrator(s) Page 5 of Twelve Pages · Consultant's Agreement MILLER MASON & DICKENSON may be entered in any Court having jurisdiction thereof. Any arbitration "hearing," pursuant to the foregoing paragraph, shall be held within the City of Bakersfield, Kern County, California. 12. NOTICES. All notices relative to this Agreement shall be in writing and shall be sent by Certified Mail, return receipt requested, and shallbe effective upon receipt. The parties shall be addressed as follows, or at any other address designated by notice: City: CITY OF BAF~RSFIELD CITY HALL/PERSONNEL DIVISION 1501 TRUXTUNAVENUE BAKERSFIELD, CA 93301 Consultant: MILn~RMASON & DICKENSON 10 Universal City Plaza Suite 2250 Universal City, CA 91608 Attention: Mr. Herbert V. Kaighan, Vice President 13. ASSIGNMENT/DELEGATION. Consultant acknowledges' that one of the considerations persuading City to execute this Agreement is the skill and reputation possessed by Consultant. City is relying upon such skill and reputation to insure that Consultant performs the covenants on Consultant's part hereunder to be performed. With this in mind, Consultant may not assign or delegate this Agreement, nor any interest or obligation herein, in whole or in part, voluntarily or involuntarily,, by operation of law or otherwise, without City's previous consent in writing, which consent, however, shall not be unreasonably or arbitrarily refused or withheld; provided, however, that despite any such assignment or delegation that Consultant shall remain responsible for the faithful performance of each and every term, covenant and condition of the Agreement; and provided, further, that no assignee or delegate shall have the right to make any further assignment or delegation of any kind affecting this Agreement without first obtaining City's written consent as aforesaid. Page 6 of Twelve Pages Consultant' s Agreement MILLER MASON & DICKENSON 14. BINDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to the contract and their heirs, administrators, executors, personal representatives, successors and assigns. 15. MERGER ANDMODIFICATION. This Agreement sets forth the entire Agreement between the parties and supersedes all. other oral or written representations. This Agreement may be modified only in a writing approved by City's Council and signed.by all parties. 16. EXHIBITS. If a conflict arises between the terms, provisions, and conditions set forth herein and those set forth in the Exhibits attached, the terms, · provisions, and conditions, set forth herein shall prevail. 17. CORPORATE AUTHORITY. Each individual executing this ·Agreement represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the corporation or organization on whose purported behalf he or she signs, and that this Agreement is binding upon such corporation or organization. 18. TERMINATION. This Agreement may be terminated by any party upon 30 days' written notice to all other parties. If City exercises its right of termination, City shall pay Consultant for the work completed to City's satisfaction up to the date of notice of termination, pursuant to the terms of this agreement. Upon termination, Consultant shall deliver to City all documents, plans, drawings, maps, and writings (as described in Paragraph 6. hereinabove). 19. COMPLIANCE WITH ALL.LAWS. Consultant shall, at Consultant's sole cost and· risk, faithfully comply with all municipal, state, and Federal statutes, ordinances, rules and regulations now in force, or which may hereafter be in force. Page 7 of Twelve Pages Consultant' s Agreemen~ MILLER MASON & DICKENSON 20. INDEPENDENT CONTRACTOR. This Agreement calls for Consultant to perform its duties hereunder as an independent contractor, and Consultant is not to be considered an employee of City for any purpose and is not entitled to any of the benefits provided by City to its employees. This Agreement shall not be construed as forming a partnership (or any other association) wi%h Consultant o=her than that of an independent contractor. With respect to Consultant's status as an independent contractor, City shall have no right to direct Consultant in the means or methods of doing the work called for hereunder. City's interest is in the results, that is, the final work product of Contractor, and not the technique or method Contractor uses to create such final work product. 21. INSURANCE. In addition to any other form of insurance or bond required by this Agreement, Consultant shall procure and maintain, for the duration of this Agreement, the following types and limits of insurance: a. Professional liability insurance, providing coverage on an occurrence basis for errors and omissions with limits of not less than One Million Dollars per occurrence; and b. AutomObile liability insurance, providing coverage on an occurrence basis for bodily injUry, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars per occurrence;'and c. Broad form commercial general liability insurance, providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars per occurrence; and d~ Workers' Compensation insurance with statutory limits, and employer's liability insurance with limits of not less than One Million Dollars per accident. Page 8 of Twelve Pages Consultant' s Agreement MILLER MASON & DICKENSON All policies required of Consultant hereunder shall be primary insurance as respects City, its mayor, council, officers, agents, employees, and volunteers and, additionally, any insurance or self-insurance maintained by City, its mayor, council, officers, agents, employees, and volunteers shall be excess of Consultant's insurance and shall not contribute with it. The automobile liability policies shall provide coverage for owned, non-owned, and hired vehicles. The liability policies shall provide contractual liability coverage for the term of this Agreement (and.any "option" extensions). Except for professional liability, the liability polices shall contain an additional insured endorsement in favor of City, its mayor, council, officers, agents, employees, and volunteers. All policies shall contain an endorsement giving City a minimum of ten working days advance written no~ice of cancellation or material change in policy language or terms~ If any part of the work under this Agreement is sublet, or subcontracted, similar insurance shall be provided by or on behalf of the subcontractors to cover their operations. The insurance required under this Agreement shall be maintained until all work required to be performed under the terms of this Agreement is satisfactorily completed and formally accepted in writing by City. This Agreement shall not become effective until City's Risk Manager approves a form of. "Certificate of InsuranCe" (or the equivalent) demonstrating existence of the insurance required under this Agreement. 22. INDEMNITY. Consultant shall indemnify, defend, and hold harmless City, its officers, agents and employees against any and all liability, claims, actions, causes of action, or demands whatsoever against them, or any of them, for injury to or death of persons or damage to property arising out of, connected with, or caused by Consultant, Consultant's employees, agents, or independent.contractors, or companies, in the Page 9 of Twelve Pages Consultant' s Agreement MILLER MASON & DICKENSON performance of, or in any .way arising from, the terms and provisions of this Agreement whether or not caused in part by a party indemnified hereunder. 23. EXECUTION. Subject to providing proof of insurance, this Agreement is effective upon execution. It is the product of negotiation and therefore shall not be construed against'any party. 24. CONTRACT ADMINISTRATOR/PROJECTMANA~n~. The "Contract Administrator" for City is: MS. MAUP~N COTRER PERSONNEL MANAGER Cit¥OF BAKERSFIELD/PERSONNELDIVISION 1501 TRUXTUN AVENUE BAKERSFI~T.n, ca 93301 (805) 326-3789 Consultant's "Project Manager'' shall be: MR. FRRBERT V..KAIGHAN, VICE PRESIDENT C/0 MILLER MASON & DICKENSON, SUITE 2250 UNIVERSAL CITY, CA 91600 (800) 443-9516 The Contract Administrator and the Project Manager shall be the primary contact persons for City and Consultant. It is expressly understood that only City's Council may approve modifications to the Agreement. Any modifications must be in writing and signed by City and Consultant before they become effective. 25. ACCOUNTING RECORDS. Consultant shall maintain accurate records (and other Writings) pertaining to costs incurred in performance of this Agreement. Such records shall be kept at Consultant's office during the period of this Agreement, and after the term of this Agreement for a period of three years from the date of the final payment under this Agreement. Consultant shall make such records available to City representatives, upon request, of City's Contract Administration at any time during regular business hours. Page 10 of Twelve Pages Consul~tant' s Agreement MILLER MASON & DICKENSON 26. CONFLICT OF INTEREST. Consultant warrants neither it not its principals or employees have any financial interest in any project dependen= on the results of the studies prepared under this Agreement. 27. TAX NUMBERS. Consultant's Tax Identifying Number: 770182453 -o0o Page 11 of Twelve Pages COnsultant's Agreement MILLER MASON & DICKENSON IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "City" City OF BAKERSFIELD By CLARENCE E. ~DERS Mayor · APPROVED AS TO FORM: City Attorney By COUNTERSIGNED: By GREGORY J. KLIMKO Finance Director "Consultant" Title JDC:gp:klf Attachments Exhibit "A" Exhibit "B" MISC :MISC~F~4. ~R Page 12 of Twelve Pages "EXHIBIT A" BAKERSFIELD PROPOSAL FOR HEALTH CARE CONSULTING JUNE '1992 MILLER MASON & DICKENSON TABLE OF CONTENTS PAGE Section I Description of Assignm?nt 1 Phase I Audit Phase II Alternative Phase ill Follow Up Section 2 Specific Approach to Assignment 5 Phase I Review and Evaluation Phase II Survey of Vendors Phase I and II Sample Schedule Phase III Ongoing Consulting Section 3 Fees 19 Section 4 Miller Mason & Dickenson 20' A. Brief History of MM&D B. Information Resources / C. Employee Communication D. Assignment Management E. Client References - F. Why MM&D APPENDIX A. Copy of Certificate of Insurance MILLER MASON & DICKENSON SECTION I - DESCRIPTION OF ASSIGNMENT INTRODUCTION The purpose of this assignment is to determine the present status and future direction of the City's medical and dental benef'~ programs. In this context there will be at least two phases to the assignment. Phase I will be an audit and Phase II will be an evaluation of actual alternatives. The City may need to have ongoing consulting after the January 1, 1993 implementation; therefore, we have included Phase i11. PHASE I AUDIT The purpose of this activity is to: Define management's goals for employee benefits Confirm and evaluate current costs and funding arrangements Review and consider employee and retiree needs Obtain management consensus Anticipate and address issues, problems and opportunities Determine legislative, judicial and tax compliance Management consensus is vital to the success of any benefits program. Our approach suggests including management input early in the evaluation. Any rational benef'rt plan design should evolve from -- and be responsive to -- a benefit policy that is part of a total human resources policy. Management must be involved in setting · these policies to assure support for your overall business goals. We have divided the Phase I evaluation into seven steps. We can add or delete , activities in each step, depending on management's objectives as identified early in the evaluation. A. Planninq Meeting We will begin with a planning meeting to confirm objectives, assign responsibilities, esta.blish time frames, and review data requirements. MILLER MASON &: DICKENSON B. Confirm Obiectives and Policy We will help identify the City's benefits objectives. This includes clarifying specific goals for each plan or event, your short-term and long-term contribution strategy for benefit costs, and employees' cost-sharing responsibility. Once management has approved the overall benefits objectives, they will become important elements in any future benefit program design. C. Dem0_oraohic Analysis We suggest an analysis of employee demographics and benefit participation patterns. The demographic analysis will examine such factors as age, salary level, position level, service, marital status, dependents (if available) and residence. This will give us necessary data to identify needs, facilitate future plan deSign, and. select appropriate vendors. D. Benefit Inventory It is important that everyone involved in the study have a common flame of reference-for discussing the benefit program. We suggest that benefits be summarized and evaluated in terms of the objectives in Step B. The inventory will provide management with information on the overall consistency and general competitiveness of the benefit programs. We also will evaluate the current benefit package in terms of possible new benefits. We will pay special attention to the structure of the medical plan, using demographic data, plan benefit, claim history and the City's objectives to 'develop a cost-effective plan design (incorporating indemnity, PPO, and HMO alternatives where appropriate). The demographic data (employee residence) will be used to identify the most appropriate provider networks for maximizing the cost efficiencies available in delivery of the healthcare. We will review the experience reports available from the medical and dental providers and provide a detailed analysis of how the dollars are being spent and how alternative networks and healthcare management systems might impact those dollars. We will also provide a recommendation about future reports: type, content, frequency, etc. Based on your human resource/financial objectives, the demographic analysis, and the results of the evaluation of claim experience, we will also comment on the opportunity for actual intervention by the City in terms of "Wellness" planning and opportunities for employee education. - 2 MILLER MASON & DICKENSON E.. Tm and Legislative Comoliance Issues We will provide an up-to-date assessment of your current compliance status and legislative developments that affect current and future benefit plan design. F. Fundino and Pricin(3 There are several methods of funding employee benefits: fully insured, partially insured, or fully self-funded. We will evaluate the current funding arrangements and appraise each component of each program. G. Preliminary Recommendations for Plan Changes Based on the findings from Steps A through F, we will make initial recommendations for changes to your benefits program. Our preliminary recommendations will address key questions such as: o Is it appropriate to implement changes gradually, or all at once? o What is the role of employee contributions? o Should total benefit costs remain at the current level, decrease, or ' assume some rate of increase in the future? o How should future increases in benefits costs be absorbed by the City? By employees? o How should tax implications be factored into plan design? o Is there sufficient data to determine the need for a particular form of wellness program? o Do current vendors represent the most effective resources in the marketplace to support the City's benefits objectives? PHASE !1 ALTERNATIVES The purpose of this activity is to obtain costs on alternative arrangements, define the world of the practical and implement all decisions by 1-1-93. It will include: Prepare specifications for Request For Proposal (RFP). Identify vendors and release RFP. 3 MILLER MASON & DICKENSON Receive and evaluate proposals. · Prepare and deliver comprehensive analysis of proposals, including recommendations. Arrange vendor presentations. Assist in implementing decisions including development of employee communications strategy and first draft of employee communications material. Obtain, review and finalize all contracts, booklets, administration manuals, etc. PHASE I11 ONGOING CONSULTING Once the health and dental benefits have been thoroughly reviewed, revised and implemented the balance of the employee benefits may need a similar treatment. In addition, there may be a variety of activities required to support the management of the health and dental benefit plans during the first six months of 1993. 4 MILLER MASON &: DICKENSON SECTION 2 - SPECIFIC APPROACH TO ASSIGNMENT PHASE ! .REVIEW AND EVALUATION A. Meetinq Consultants and City personnel meet to define financial and human resources employee benef'~ philosophy and objectives. B. Audit of Medical and Dental Plans 1. Obtain and Review Plan Information. Obtain all plan documents, insurance contracts, SPDs, booklets, and premium billing statements from insurance carriers/administrators. Review each plan document, insurance contract, SPD and booklet: to make sure documents are consistent with the' City's objectives and with each other to identify, analyze, summarize and compare the provisions, benefits, limitations and exclusions of each document Review premium billing statements: to confirm existing rates to establish employee/dependent participation trend Evaluate the appropriateness and adequacy of each plan's design components according to the City's objectives and competitive practice. Audit plans for Federal and State compliance issues (i.e., OBRA, COBRA, ADEA, etc.). 5 MILLER MASON & DICKENSON 2. Review Plan Provisions In Regard To: Definition of employee and dependents Termination provisions: .employment, disability, retirement, 'sick leave, layoff, etc. Class of employees and dependents covered by each plan Probationary period before an employee/dependent becomes eligible for benefits 3. Review Design of Medical Benefis: Type of Plan Indemnity Fee-for-Service PPO HMO/EPO Benefits, Maximums, Limitations Including: Deductibles Coinsurance Stop Loss Hospital Inpatient versus Outpatient Chemical Dependency/Substance Abuse. Nervous and Mental Preexisting Conditions Provision Preventative/Wellness Provision Prescription Drug Cost Reduction Provisions: subrogation, coordination of benefits, non-duplication of benefits, reasonable and customary State mandated benefits (fully insured plan only) Utilization Review Programs Including: Preadmission and Concurrent Review Discharge Planning Focused Surgical Review Large Case Management Audit of Hospital and Physician Services Psychiatric and Substance Abuse Treatment Review Pretreatment Review. of Targeted Services (i.e., CT Scans) Benefit Alternatives - Carve Out Specialties ~ 6 MILLER MASON ~r DICKENSON 4. Review Design of Dental Benefits: Type of Plan Indemnity Fee-for-Service Prepaid . PPO Benefits, Maximums, Umitations including: Calendar Year Maximum Deductibles Covered Services Coinsurance Orthodontics Waiting Periods C. Underwriting Information Obtain claims data from eaCh insurance carrier/administrator for a minimum three year period for each program. This will include specific claim data identifying employee versus dependent, inpatient versus outpatient, mental and nervous, chemical dependency, and prescription drugs. We will review this data and other specific diagnosis data to evaluate the need'for, and approach to a wellness strategy. Obtain insured rate or accrual rate history for a minimum three year period for each benefit. . Obtain three year history of employee/dependent participation in each plan. Obtain most recent renewal report from each insurance carrier/ administrator. D. Financial Arrangements Evaluation We will identify and evaluate the financial arrangements for ali current plans and review all cost elements including: Premium rate or accrual levels/attachment points Reserve liabilities 7 MILLER MASON & DICKENSON Retention components (administration and risk charges) .High amount individual claim pooling and/or stop loss arrangements Utilization patterns Appropriateness of level of risk assumption by the City. E. Ernplovee Data Obtain employee data including name, sex, age, dependents, occupation, earnings, plan in which employee is enrolled, home zip code, employee status, etc. This information can be provided electronically or by hard copy. F. Funding Arrangements We will evaluate the current funding arrangements relative to alternatives, e.g., fully insured, minimum premium and self funding. Suitable alternative funding methods depend on a number of factors: employer's size, plan size, availability of administrative services, employer's financial ability to manage ~adverse fluctuations in claims or the investment of plan assets. G. Management Reports Evaluate the usefulness, flexibility and availability of management reports and graphs from current carriers. H. Evaluation of Cost Sharing Methods We will identify and evaluate the City's current premium contribution strategy for each plan in terms of absolute dollars and as a percentage of cost. I. Wellness Evaluation 1. Based on the City's objectives and the data developed above: 8 MILLER MASON & DiCKENSON Review and evaluate the variety of wellness and healthy lifestyle programs currently in place. Examine the progress on measurement of results e.g. Southern California Edison Co., already committed to an extensive wellness-health promotion program, is Working with UCLA, USC, and ,MIT to develop data on the impact of their program. Determine if the City wants to proceed with a healthy lifestyle promotion plan on an employee productivity basis only, or if the City should steer enrollees to one or the other of the medical plans to obtain financial accountability and credit, for health solutions. 2. Potential Programs for Development. Determine if the City wants to: Financially reward employees in health coverage contribution structure for targeted test resultS and continued measurable efforts on health risk factors that can be modified: high blood pressure elevated blood sugar elevated cholesterol level obesity smoking Use City's Department of Health Services for screening, testing and monitoring of results. Subsidize athletic club memberships for employees. Develop claim experience benchmarks for measuring long term savings results. Provide cash payment incentives to City employees to encourage them to leave City provided health plan and enroll as a dependent in working spouses' group coverage (where available). Provide catastrophic health coverage onlv option for .employees with health coverage available elsewhere through their spouses' employment. 9 MILLER MASON &: D{CKENSON Provide a financial incentive to employees to use any available' City system for specific categories of healthcare, i.e., routine physicals, substance abuse and mental health, immunizations, physical therapy, etc. J. Timing This process will result in a report with recommendations within 45 to 60 days from the date of assignment approval. PHASE II SURVEY OF VENDORS We will develop specifications based on the conclusions developed and agreed upon in Phase I above. These will include design and funding alternatives. After approval of the specifications, we will submit the RFP to the mutually agreed upon vendors (assumes a maximum of 10). We will receive and review all proposals and conduct the preliminary vendor interviews. We will then prepare a report summarizing the results of this RFP process which will include specific recommendations: A. Type of Plan Any plan recommendations made would be based on: A clear definition of the City's financial and human resource employee benefit philosophy and objectives. An evaluation of benefits to determine if they are: consistent with your 'philosophy and objectives meeting employee needs meeting the City's financial objectives competitive funded in a manner consistent with the City's ability to accept, risks associated with adverse fluctuations in claims administratively efficient in compliance with government regulations required for each plan 10 MILLER MASON ~: DICKENSON B. Type of Carrier/Administrator One of the most crucial services required is claims administration. Prompt and accurate claims service is necessary for cost control and employee morale. We will review such factors as: Location of claims office(s) Computerization of claims operation Internal claims controls (e.g., automatic audit of all claims over $10,000) Claims administrator's willingness to comply with performance standards and claims audit reviews Current client references C. Implementation We fully support our clients in the implementation of changes to current programs or new programs: Arrange vendor presentation Assist in selection of vendors Prepare plan documents and enrollment material: booklets, SPDs, enrollment forms, claim forms, COBRA notification forms, etc. Coordinate all administrative and claims processing functions between the City and vendor(s) (e.g., PPO, utilization review, case management and claims) Review all agreements (e.g., vendor's service agreements, stop ~ loss insurance contract, legal plan documents, funding arrangements, etc.) Establish management report formats -. Arrange for =transfer of appropriate data from current vendors to new vendors Notify vendors of termination of current contracts 11 MILLER MASON &:: DICKENSON Assist in enrollment meetings D. Communications of Benefits We will assist the City in the development of an overall communications strategy. Corr].municating employee benefits is successful only if the employees know and understand the benefits offered. Employee benefits are technical, and the rules to implement them change frequently with new laws and regulations. MM&D's communications practice offers a full range of employee benefits communications services. Please refer to Section 4c. for 'an illustration of support systems. ~ E, Timing This activity will result in a report with recommendations within 60 to 90 days from approval of specifications and vendor list. 12 MILLER MASON &: DICKENSON PHASE i AND II SAMPLE SCHEDULE This sample schedule, developed for an effective date of January 1, 1993 for · plan changes, is intended to illustrate the relative time frames for the vadous tasks and events. It can be modified to fit the City's actual requirements. Week of July 6 Consultant decision confirmed July 13 Meeting between consultant and the City to discuss: Philosophy/strategy Data sources Time frames Priorities Specific assignments Reporting relationships Communications protocol July 20 Request for data to the City, vendors and insurance carriers July 27 Deliver to the City summary of first meeting. August 10 Data to be returned to MM&D August 17 Meet with the City to finalize resUlts of first meeting and status of data September 8 Draft of Phase I report available for review by the City September 14 Final Phase I report delivered to the City .September 21 Meet with the City to review report, to discuss recommendations and decide specific actions required including marketing September 28 Prepare specifications to conduct market survey and define list of vendors to be solicited October 5 Submit Request For Proposal and vendor names to the' City for review and approval October 5 Distribute Request For Proposal to proposed vendors 13 MILLER MASON &: DICKENSON November 2 Proposals due to MM&D November 16 Report of marketing results' with recommendations delivered to the City November 16 Meeting with the City todiscuss report and determine actions required November 23 Vendor presentations and vendor decision by the City November 30 Notification to selected vendors; Meeting to finalize Benefit decisions Funding decisions Contribution strategy Implementation process Communication strategy December 7 Meeting to approve communication material December 14 Enrollment January-February Obtain, review and finalize all contracts, booklets, administration manuals, etc. Note: This is a sample schedule which illustrates the major events and an estimate of the normal time frames. A specific timetable would need to be developed with City personnel to recognize the City's actual internal administrative and human resource requirements. ' The December 14th date may not allow sufficient lead time for the enrollment process. 14 MILLER JV[ASON ~: DICKENSON ,' PHASE III ONGOING CONSULTING If desired, we will assist the City in the day-to-day management of all the employee benefit plans. Phase I and II were only concerned with the medical and dental benefits. Phase III would include ongoing assistance with the management of the health plans and would also include an audit and evaluation of all other health and welfare plans: Life, Accident, Vision, Disability, EAP, etc. 'A. Audit of Employee Benefit Plans We would approach each program as we did the medical and dental benefits described in Phase I. In addition, we would specifically review: 1. Life Insurance: Type of Plan Amount of Benefit Covered Persons Active Employee Dependent Retired Benefit Maximum Guarantee Issue Limits Premium Waiver Provision Age Reduction (ADEA Compliance) IRC Section 79 Imputed Income Implications Supplemental Ufe Settlement Options 15 MILLER MASON & DICKEN$ON 2. Accidental Death & Dismemberment Insurance: Type of Plan Basic AD&D, Business Travel AD&D, Voluntary AD&D Amount of Benefit · Covered Persons Active Employee Dependent Retired Benefit Maximum Definition of Loss, Umitations and Exclusions Age Reduction (ADEA Compliance) / 3. Vision Insurance: Type of Plan Indemnity Fee-for-Service PPO (i.e. Vision Service Plan) Benefits, Maximums, Umitations 4. Short Term and Long Term Disability Insurance: Integration of the City's sick leave policies; short and long term disability benefits Short term disability benefits, maximums, limitations and funding alternatives Long term disability benefits, maximums and limitations including: Definition of total disability and partial disability Type of benefits (% of salary, fiat amount etc.) Duration of benefit MILLER MASON & DICKENSON Continuation of benefit (accumulation of pension benefits, group life and 'medical expense) Partial disability benefrts Elimination period Exclusions Chemical dependency/substance abuse; Nervous and mental Rehabilitation Survivor benefit Cost-of-living provision Preexisting conditions Benefit integration provisions: Social Security Workers Compensation State Temporary Nonoccupational Disability Plans Sick Leave Other Insurance B. Underwritinq Information Obtain claims data from each insurance carrier/administrator for a minimum three year period for each benefit. Obtain insured rate history for a minimum three year period for each benefit. Obtain three year history of employee/dependent participation in each plan. Obtain most recent renewal report from each insurance carrier/administrator. 17 MILLER MASON & DICKENSON C. Onaoina consultincj services to Include: 1. Health Plans (Medical and Dental) Obtaining monthly experience data from carriers and third- party administrators. periodic "mock renewals" (at least one-mid-year) to avoid surprises at annual health plan ~renewal. annual in-depth carrier renewal analyseS and negotiations. providing annual financial information: for self-funded , benef'~s (includes accrual rate setting and reserve requirements) or dividend 'accounting analysis if fully insured. periodic review of claim analysis reports (to coincide with "mock renewal" process) to identify and track health plan utilization patterns driving aggregate plan cost, reviewing diagnoses / type of service / high amount claim data available. 2. All Health & Welfare Plans periodic review of new marketplace products and approaches. continual review of new legal developments potentially impacting the benefits plans and their administration. periodic review of benefit design and contribution issues. day to day assistance with administrative problems, questions, regulatory issues, and claim disputes. assistance in preparation of ERISA compliance reports. conduct meetings as required with the City Finance and Human Resources personnel and benefit vendors to develop and provide accurate information about the benef'r[ programs. periodic audit of employee communication 'materials. 18 MILLER MASON & D[CKENSON SECTION 3 - FEES Our fees are based on the value of our services as determined by the number 'of consulting hours and the level of experience required to perform the agreed upon work. Our hourly rates include computer time, postage, telephone calls and photocopying. Travel expenses are billed separately. Our fees will be billed monthly as they are incurred. We maintain a diverse staff so that employees with appropriate experience and skill levels complete assignments at the lowest hourly rate commensurate with efficient service. Each staff member keeps a strict account of time spent on an individual client's work, as well as incurred travel expenses. We estimate the cost of these projects to be: Phase I Review and Evaluation $12,500 to $15,500 Phase II Survey of Vendors $17,500 to $19,500 Phase III Ongoing Consulting $2,000 to $2,500/month We guarantee that our consulting costs will not exceed these ranges. MILLER MASON & DICKENSON SECTION 4 - MILLER MASON & DICKENSON A. BRIEF HISTORY Since 1960 MM&D has provided a full range of consulting, aCtUarial, administrative and communication services for employee benefit programs of industrial and financial companies of all sizes. You have previously received a copy of our marketing brochure which describes all of the services' which we provide. ' In 1987, MM&D became a wholly owned subsidiary of Aon Corporation, a holding company of insurance and financial service companies headquartered in Chicago and traded on the New York Stock Exchange. Aon Corporation has assets of over $9,000,000,000 and more than 16,000 employees. MM&D has approximately 700 employees located in offices in Chicago, New York, Philadelphia, St. Louis, Houston, Minneapolis, Tampa, Oakland, Palo Alto and Los Angeles. Our Los Angeles office was established in. 1989 and is staffed with 22 employees, 8 of whom are health and welfare consultants, each with over 10 years' experience in benefits consulting. Each of our consultants is supported by a service/administrative person with a Life and Disability. license. One of our consultants is a benefits attorney (bar admitted in California) ' who leads both our Communications and Flexible Benefits practices. MM&D is an energetic and exciting firm working in a dynamic and challenging field. It is our mission to provide services of only the highest caliber to our clients. We believe that we are of the ideal size to serve you. We are large enough to match the capabilities of our largest competitors, yet small enough to assure you of the pr. iority treatment, responsiveness and access to senior professionals appropriate for our most valued clients. We do not bring pre-packaged solutions; rather we develop the approach that will provide the most time efficient solution. MILLER MASON & DICKENSON B. INFORMATION RESOURCES An extensive information center is maintained in Chicago by our National Technical Services unit which is comprised df three employee benefits attorneys and staff support. This Center is part of a network throughout the United States that collects and distributes information on all phases of benefits and compensation. NTS subscribes to all major employee benefits services and publications: . Employee Benefit Research Institute International Foundation of Employee Benefit Plans Commerce Clearing House Spencers Research Reports on Employee Benefits Prentice Hall Employer Council For Flexible Compensation Bureau of National Affairs Inc. NTS' information network maintains close contact with the insurance industry, 'management and labor groups, government authorities and the business community in general. Input from the Information Center keeps our consultants up-to-date on items affecting our clients benefit programs including: Interpretation and implementation of new federal and state government regulations Innovative methods of funding methods for employee benefits plans Court decisions affecting benefit and personnel practices Labor trends determining industrial relations and human resource strategies Changes in systems and procedures used to manage employee benefits Our Los Angeles Office meets weekly (8:00 a.m. - 9:30 a.m.) to discuss current client problems and developing benefit issues. We monitor the rapid changes in employee benefit issues. This weekly exchange of information enhances' each of our consultant's abilities to proactively assist clients in the management of their benefit programs. 21 MILLER MASON & DICKENSON C. EMPLOYEE COMMUNICATION Communicating employee benefits is successful only if the employees know and understand the benefits offered. Employee benefits are technical, and the rules to implement' them change frequently with new laws and regulations. MM&D's communications practice offers a full range of employee benefits communications services. Our Los Angeles office operates both: Mac Iix Pagemaker 4.0 Illustrator 3.0 Persuasion 2.0 Word 4.0 ComDaa 386s/20 Lotus 1-2-3 Windows 3.0 Harvard Graphics Wordperfect 5.1 The Mac II system has many features: Low cost "desk top" communications Readable by virtually all production houses, in-house communications departments, etc. Easily stored, edited and updated. Multiple out-puts: 35mm slides Overheads Video Poster/Blow-ups Print, Color/Black/White MILLER MASON & DICKENSON D. ASSIGNMENT MANAGEMENT MM&D will commit a team of professional consultants to the City. Herb Kaighan, Vice President and Manager of the, Los Angeles Office, will be the managing consultant whose responsibility is to oversee the assignment and completion of the many project tasks among the team members: 'John Colvin, MBA, CLU, Principal. John will be the primary consultant. Judy Anderson, PrinciPal - Judy is a managed care specialist and will assist John in identifying the most effective design and provider network for the City's employees. Chris Wadley, J.D., ARM, Vice President. Chris will provide his expertise on legal issues, flexible benefits and communications issues. Mike Gaide, B.A., Principal. Mike will provide his expertise in underwriting and financial issues. Administrative assistants, communications specialists and technical staff will provide support in their respective areas of expertise. BIOGRAPHIES Herbert V. Kaighan Vice President and Manager .Herb has extensive experience helping major corporations and public sector clients in the development of strategic plans aimed at benefit plan cost containment. Herb received 'his undergraduate degree at Immaculate Heart College and completed graduate work for a Master's Degree in experimental psychology at California State University at Los Angeles. Herb's commentaries on Health Care Cost Management have been published in Business Insurance, Pension World, and Occupational Health and Safety. He is a frequent speaker and has made presentations to Risk Insurance Managers, UCLA's Annual Industrial Relations Conference, and a variety of Personnel and Industrial Relations associations. John S. Colvin Principal 23 MILLER MASON & D[CKEN$ON John started his career in employee benefits in 1972 with a major national insurer. His experience in health and welfare plans includes underwriting and financial analysis, administration, claims, contract review, marketing, plan design, managed care services, account responsibility, and new business development. John earned an undergraduate degree in history and a Master's in Business Administration from the University of Utah. In 1975 he earned his Chartered Life Underwriter (CLU) designation. Judy Anderson Principal Judy specializes in the design and implementation of managed care strategies for health benefits and workers' compensation programs. Before joining MM&D, Ms. Anderson was a co-founder of Managed Health Care Services, Inc., and served as Assistant Vice President of Strategic Planning. Managed Health Care Services was a highly successful managed care services firm which supported the development of over 60 managed care programs nationwide. In addition to her corporate planning 'responsibilities, she performed managed care network development functions, such as provider contract negotiations and project planning and management. Ms. Anderson has also served as consultant for Advanced System Applications, Inc., a leading insurance software firm, and Oberfest Associates, a hospital consulting'firm. Previously, Ms. Anderson was the DRG System Manager for Stanford University Medical Center. Ms. Anderson received a B.A. from Stanford University and an M.B.A. from the Wharton School, University of Pennsylvania. Christopher A. Wadley Attorney/Vice President Chris has over 26 years of employee benefits experience and has served a wide variety of private and public sector clients. He holds a B.A. from Yale University and a J.D. from Golden State University School of Law. He is a member of the State Bar of California and holds an Associate in Risk Management degree. Michael Gaide Principal Michael's responsibilities include providing a complete range of health and welfare consulting services for clients in the Los Angeles office, including financial analyses, carrier/administrator selections and negotiations, 24 MILLER MASON & DICKENSON contract/document review, provider arrangements and plan administration assistance, Michael has over 16 years of professional experience in the employee benefits field, including underwriting and management positions with insurance carders and consultant positions with major brokerage/consulting firms. He earned a B.A. degree from the University of California at Los Angeles in 1969 and pursued graduate studies at California State University'in Northddge in 1971- 1972. He has 'completed courses in the Life Office Management Association program and the Certified Employee Benefits Specialist program. 25 MILLER MASON & DICKENSON E. CLIENT REFERENCE LIST Current Clients Contact Cortsultant($) Scooe of W<)rk ARB, Inc. Sam Polichino Herb Kaighan All Welfare (Bakersfield) Risk Manager Benefits (805) 589-5070 City of Pasadena Dave Jacobs Chris Wadley Life, LTD, Risk Manager Dental (818) 405-4186 Mike Loeser ~. Human Resources (818) 405-4126 Custom Control Robert L. Powell John Colvin All Welfare Sensors, Inc. Executive V.P. Benefits (San Fernando (818) 341-4610 Valley) Giumarra Bill Butler, CFO Bob Alexander All Welfare Vineyards (805) 395-7020 Benefits (Bakersfield) SCS Engineers Elayne Welch John Colvin All Welfare (Long Beach) Human Resources Benefits Manager (213) 426-9544 Bill Schubert V.P. Finance (213) 426-9544 26 MILLER MASON & DICKENSON F. WHY THE CITY OF BAKERSFIELD SHOULD CHOOSE MM&D We are uniquely positioned to serve the City of Bakersfield. MM&D is a national benefits consulting firm that provides its expertise and resources to companies throughout the United States. MM&D is small enough to tailor its response to the City's needs and to Place our most senior professionals on your account. MM&D's Los Angeles office currently serves several prominent Bakersfield employers. MM&D Los Angeles has the professional experience, technical resources, and state-of-the-art computer technology to provide quality, timely and cost effective service: · Professional experience 8 health and welfare consultants each with no less than 10 years experience. Bar admitted attorney on staff · Technical resources A technical services unit staffed with senior underwriters whose responsibilities are: identification of competitive vendors and innovative insurance company products, and maintenance of effective working relationships preparation of bid specifications to conduct market surveys of product competitiveness maintenance and analysis of monthly or quarterly emerging claims experience for both insured and self funded plans Flexible benefits administration capabilities .. State-of-the-art computer technology 27 MILLER MASON'& DICKENSON Desk top publishing PC and Macintosh hardware used to produce creative, Iow-cost employee communications 28 MILLER MASON & DICKENSON CERTIRCATE OF. INSURANCE ,.uE DA'",M.,DD Y, FRODUCE" I THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE RolljJl$ Burdick HLEiI:er of IllJ_T~Oi$ ~ DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED ElY THE 123 North ~¥acker Drive POLICIES'BELOW. ChicagO, IL 60b06 COMPANIES AFFORDING COVERAGE ATTN: H. Nebel COMPANY A '""~" Continental Casualty comPany COMPANY ,~,',~R B Transportation insurance Company INSURF~ .ADh. Corporation and COMPA.Y .,Xliiler ?Jason fi Bickenson m'mR ¢ Lloyd's of london 1ZS North Wacker Drive COMPA.Y Chicago, IL 00606 COMPANY LE'['rER E COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. co ~OUCY £~'~C~VE FOUCY ~XPIRATION LTR TYPE OF INSUI~M~CE POUCY NUMBER DATE (MMIOO/YY) DATE MMIODIYY) LIMITS GENERAL UABIUTY GENERAL AGGREGATE Si., U U U, U U ~' COMME.ClAL Ga,~L U~lUr, FROOUCTS-COMP~OP AGG. :A C~MSMADE X OCCUR. GL 20 741 3S24 9-1-90 9-1-95 ,ERSONAL&ADV.~mURY OWNER'S & CONTRACTOR'S PROT. EACH OCCURRENCE $ FIRE DAMAGE (Any one fire) $ MED. EXI=~SE (~ one m~enl $ AUTOMO,,.~ UABlUTY COMEINED SINGLE Sl, 000,000 X AI~Y AUTO LIMIT X AU. OWNED AUTOS EODILY INJURY $ .,~ SCHEDULED AUTOS (Per Derson) X' H,RE~ AUTOS ~OD,L¥ ,NJURY X .O~OW.EO^UTOS BUA ~0 741 551S 9-1-90 9-1-95 I,'.,.*=~... s GARAGE LtABIMTY PROPERTY DAMAGE HCES~ UABIUTY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE OTHER THAN UMBREU. A FORM STATUTORY LIMITS WORKER'S COMPENSATION' B A.O ~¥C 10 741 5516' ~¢H ACCidENT $1,000, 000 oTHER G Errors and Ohnissions 91I~'I042 5-1-92 5-1-95 $$,000,000 per occurrence l~mir OESCRIPTION OF OPERATIONS~I.OCAllONS/VEHICt. E~SPECIAL ITEMS CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City o~:: ~kers£ie~d EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO 1S01 Truxton ,Avenue MAIL .~0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE i~akersfie:Ld, O\ 9350~ LEFT. BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON' THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25-S (7190} ©ACORD CORPORATION 1990 Hourly Job Title Billin~ Rate Vi~ President/Office Head $300 Vice President $27:5 Principal $230 Consultant $170 Senior Benefits Analyst $125 Benefits Analyst $100 Account Manager $100 Administration Clerk $ 75 MMeD 10 UNIVERSAL CITY PLAZA SUIT~: 2250 UNIVERSAL CITY, CA 91808 818-508-4300 , FAX.818-509-3341 800.443-9S1§ August 6, 1992 Ms, lanet McCrea Acting Personnel Manager City of Bakersfield . 1501 Tmxtun Avenue Bakersfield, California 93301 Re: Supplement to June 1992 £roposal for Consulting Services Dear Janet: In response to your confirmation that the City budget is limited to $25,000, we will modify our proposal to delete the Phase I activity "Wellness Evaluation" (Section 2 Item I pp. 8-10), and the Phase II activity "Communication of Benefits" (Section 2 Item D p, 12), These activities can be added and separately priced when and if deemed useful to the City. Enclosed is a revised sample schedule based on the City's appointment of a consultant on August 26 and a target implementation date of December 14. As our Proposal confirmed, our fee includes our cost of computer time, postage, telephone calls and photocopying. Travel expenses are billed separately. Given the shortened time frame, it may be necessary to incur expenses for meals and lodging. We look forward to meeting with you on August 11 at 1 P.m. Sincerely, ler~an V~ice President HVK:Idm .. MILLER MASON & DICKI::.NSON PHASE I A~D II SAMPLE SCHEDULE This sample schedule, developed for an effective date of January 1, 1993 for plan changes, is intended to illustrate the relative time frames for the various tasks and events. It can be modified to fit the City's actual requirements. August 26 Consultant decision confirmed Meeting between consultant and the City to discuss: Philosophy/strategy Data sources Time frames. Priorities Specific assignments RePorting relationships Communications protocol August 27 Request for data to the City, vendors and insurance carriers September 4 Deliver to the City summary of first meeting. September 11 Data to be returned to MM&D September 17 Meet with the City to finalize results of first meeting and status of data September 28 Draft of Phase I report available for review by the City October. 2 Final Phase I report delivered to the City October 6 Meet with the City to review report, to discuss recommendations and decide specific actions required including marketing October 9 Prepare specifications to conduct market survey and define list of vendors to be solicited October 12 Submit Request For Proposal and vendor names to the City for review and approval October i4 Distribute Request For Proposal to proposed vendors November 4 Proposals due to MM&D November 18 Report of marketing results with recommendations delivered to the City November 20 Meeting with the City to discuss report and determine actions required November 23-25 Vendor presentations and vendor decision by the City November 30 Notification to selected vendors; Meeting to finalize - Benefit decisions Funding decisions Contribution strategy Implementation process Communication strategy December 7 Meeting to approve communication material December 14 Enrollment January-February Obtain, review and finalize all contracts, bOoklets, administration, manuals, etc, Note: This is a sample schedule which illustrates the ma~or events and an estimate of the minimum time frames, fi, specific timetable would need to be developed with City personnel to recognize the City's actual internal administrative and human resource requirements. The December 14th date may not allow sufficient lead time for the enrollment process. MASON & DICI<I~N$ON MEMORANDUM DATE: AUGUST 14, 1992 TO: JANET MCCREA; ACTING PERSONNEL MANAGER FROM: CATHY WILLIAMS, BENEFITS TECHNICIAN SUBJECT: SELF-INSURANCE SURVEY OF CALIFORNIA CITIES Of eleven cities contacted re whether or not they had implemented a self-insurance program, only three, Modesto, Visalia and Glendale, have this type of self-funding insurance. These cities implemented this plan in the early 1980's, therefore, were unable to relate what.the actual cost savings were; however, they were convinced there were savings because of the absence of a broker fee. Third Party Administrators (TPAs) were instrumental in putting together these plans for the cities,' and are currently the administrators of the plans for claims processing, administration, etc. Surveyed city representatives related they were pleased with this program and encountered few problems once the plan was under way. These cities 'had consultants advise them of the benefits and procedures to enter into a self-insurance program: Personnel Benefits Systems for Glendale, Robert Dryer Associates for Visalia, and'The Wyatt Company for Modesto. I spoke with Harvey Bogenwright of the Kern Foundation for Medical Care to inquire about the steps the City would take to start a self-insurance program. (1) must know our experience rating for the last three years for re-insurance; (2) rate history for the current year, past three years, and renewal, if known; (3) what our benefits are; (4) subscriber census - dates of birth for employees,' retirees and dependents; (5) what our stop loss insurance should be after individual claims reach a certain amount. The lower the Stop loss, the more our re-insurance costs will be; (6) determine what'kind of plan we want - what can be deleted or added. Since self-insurance plans are not state-mandated, the City may determine we would want in our health/dental benefit plan. The last step would to go out to bid for the re-insurance and see what the quotes look like. I am attaching an article from Health Benefits Newsletter which relates to a downward trend in self-funding insurance for your information. Projecting from 1991 estimates by .u. A .-..-. the General Accounting Office, the ~'~UU billion is a conservative estimate of the amount the U.S. could save roughly $70 billion · this year'by switching from our health care system will waste thisyear. fragmented and inefficient insurance · system to a single-payer system-- one in which all citizens receive countries, the savings would be those now shut out of the system-- health care from private doctors and greater. Moreover, we have not without increasing the total outlay hospitals that.are paid by a single added in the cost of fraud--a factor for health care and without restrict- insurance entity, that the General Accounting Office lng the availability of $100,000 bone- Adding those two figures to- estimates could eat up a full 10 marrow transplants or $40,000 heart gether--$130 billion plus $70 billion-- percent of the total health care operations to those relatively few gives an estimate of $200 billion for budget. Since we have not counted who need them." ~ the annual waste in the U.S. health the cost of these fraudulent prac- care system, rices---or of the high price scale for Copyright 1992 by Consumers Union of U.S. Inc., Yonkers, NY 10703-1057. Adapted by permission This estimate, however, leaves out health care providers in the U.S.-- from Consumer Reports, July 1992. Additional several important elements: physi- our 5200 billion figure is truly a information will be available in a book, Health Care clans' fees and the cost of technol- ' minimum estimate. Crisis ($4.95) that will be released by Consumer Reports Books sometime in September 1992. ogy, drugs and procedures. If those If the wasted money could be Contact Consumer Reports Books, 101 Truman were brought into line with reim- redirected, the U.S. could include Ave., Yonkers, NY 10703, (914) 378-2000. bursement standards in other Independent Third' Party Administration Statistics FOr Year Ending Dec. 31,1991 Spencer's Research Reports, June 12. 1992 1989 for 146 respondents. 'There seems to be a continuing The 1991 statistics reveal a consolidation in the industry.; "Third party claims administra- significant shift from self-funding to smaller TPAs seem to be disappear- tors paid $19 billion in claims in full insurance in TPA-administered lng,' observed Tom Barcelona, 1991 for welfare plans covering plans (Figure 3). Continued approximately 31 million employ- ees; dependents and retirees, Figure 3. The shift from self-funding to insurance in according to 200 respondents to TPA-administered plans. Charles D. Spencer & Associates' seventh annual survey. The claims dollars paid in 1991 represented an increase of 15% from that reported by 191 TPAs in' 1990 for plans covering approximately 2 million fewer individuals. The average number of clients each TPA served [in 1991] was 209 and the average number of plans was 188. The 134 administrators that disclosed claims administrative : income in 1991 garnered $506.1 '; Totally million in administrative fees, an average of $3.8 million per TPA · 13% reporting administrative income and $16.50 per participant overall, 1990 1991(0 ta compared with $517.6 million in 1990 for [ 34 TPAs reporting admin- ' Figures oo not sum to 100 due to rounclinCl istrative income and $540 million in Soutco: sponcor~ ~esoarcn Roooas. 1992 3 7/3¢)/q2 Independent 171ird party Administration Statistics ered to days available--73% of 1991 Annual Survey available clays were delivered in executive director of the National , 1991 compared with 68% in 1990- Association of Employee Benefit National Association of Private Psychiatric demonstrates increasingly effective Administrators (NAEBA). Mr.' Hospitals, June 1992 ' resource management in the indus- Barcelona commented on two trends try." ~ occurring in the industry. 'Because "Length of stay (LOS) [in hospi- self-funding seems to bi moving tals belonging to the National ro obtain a ooDy o~t,~e ~-oage NAPPH. Suite 1000. 1319 F St. NW. Washington. DC down to smaller groups, many TPAs Association of Private Psvchiatric 20oo,11s4. (2021393-s~00. are serving these small groups. At Hospitals (NAPPH)] continues its the same time, many TPAs are substantial downward trend. competing for the larger groups~ Overall, LOS decreased bv 20% these have struck alliances with between 1989 and 1991, tfte year in Figure 4. Average length of stay which the most current data were ~n private psychiatric hospitals collected. Programmaticallv, LOS for by program service area, 1989 , ere seems to be a children and adolescents fill by and 1991. about 25% (Figure 4). Diagnostically, patients with affective disorders Length of stay Jn days continuing consolidation in the - (who account for nearly half the 10 20 30 40 50 patients admitted) spent 25% fewer indu~to;' smaller TPAs seem days as inpatients in 1991 than thev~~. to be disappearing,' patients with schizophrenia fell bv about 20%. , ~?~:~'-'.~ ~:~ ~.. · In 1991, 71% of those admitted to .?~:,~~~~:~. local HMOs and preferred provider private psychiatric hospitals needed organizations or they are combining preadmission approval bv an out- their resources with managed care side reviewer, and 70% o~ them also and utilization review firms, creating were subject to outside review to · a one-stop shop.' However, he added extend their stays. More than 90% of .... : ~.i~, ::~ ,-.?..~.~,~¥,. '??.:.... -.- ..... :. ~.~., .; ..... that there are not as many new denied requests for continued stav .:'~'-":= , ..... companies going into the industry as were appealed, and NAPPH hosl3i- ' ' :'.-,:~.~'-~:%. there were a number °f years ag°~ tals succeeded in 61.9% of theseof the $1% of respondents to the appeals. Spencer survey that specified The newest trended NAPPH data . . . additional claims-related services, show that the [prevalence of dis- .... the most prevalent service provided, charges of children] dropped from 'i'~'?':id:':i'~?:}':'"!~: by far, was actuarial (offered by 88% 7.0% in 1989 to 4.6% in 1990. The Olderadult · '.' of these respondents, compared with drop in discharges may result partlv 17% in 1990), followed bv case from a new willingness of payers ti3 management (79%), an~ data reimburse care in other settings, ':i ~-] 1989 management and reporting (74%). such as residential treatment .'.. The same proportion each (72%) programs. Although 86% of 1991 Al~°h°l & drUg offered COBRA notification and admissions to private psychiatric 1991 premium collection, consulting, and hospitals were to inpatient pro- ~!!'. '. precertification programs (compared grams, trended data show [a 100~i with 65%, b2%, and 67%, respec- percent] increase---from 3.2% to . tivelv, in last year's survev)." ~ b.4%~in admissions to partial ' '~'~'"'"";':'""" .... Total inpatient ,.. programs between 1989 and 1991. Total inpatient davs of service delivered in NAPPIai hospitals declined bv 9% between 1990 and 1991, and davs of service available in 1991 fell bv more than 14% compared with those available in ' 1990. The high ratio of davs deliv- so~,o.: N^P~.. 199~ 4 7,'30/t~2 "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; prepares 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 Workinq Conditions: Standard office environment and working conditions. Approved by the Miscellaneous Civil Service Board: Approved by the City Council: MISC~,IRPORT.SUP "OLD JOB SPECIFICATION" SALARY RANGE: #3848 - $4677 CLASS TITLE: PRINCIPAL PLANNER/AIRPARK (Option Two) 989 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 gra~ts 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 cosununity essential. 7/85 Approved by the City coUncil: 6-18-85 Approved by the Civil Service Board: 7-16-85 · "NEW, JOB SPECIFICATION" CITY OF BAKERSFIELD CLASS SPECIFICATION:525/526 ' UNIT: WHITE COLLAR EEO4: TECHNICIANS CLASS TITLE: CONSTRUCTION INSPECTOR 1/11 (Flex) CLASS SUMMARY: Under general supervision, performs detailed inspection of public works construction projects; interprets plans and specifications to ensure contract compliance; prepares and recommends change orders and cost estimates. REPRESENTATIVE DUTIES: The following typical tasks and responsibilities are representative of ail positions in the class. They are descriptive, not limiting. Essential Duties Inspects a variety of public works construction and street maintenance projects, such as sidewalks, structures, driveways, sewer mains and lateral installations, curbs and gutters, retaining walls, earthwork, street excavation and patchwork, and drainage facilities to determine compliance with contract standards and specifications, state laws, and local ordinances; may inspect major architectural and engineering projects;interprets construction plans and specifications; prepares and makes recommendations on change orders; prepares cost estimates; maintains necessary records of daily operations, including manhours, equipment hours, and materials on site; meets and confers with representatives of utility companies, contractors, engineers 'and other public agencies regarding construction plans and specifications; answers citizen complaints and requests for information; makes on-site safety and accident investigations and posts locations scheduled for repair; may perform duties on a survey party for construction survey projects. DISTINGUISHING CHARACTERISTICS: Construction Inspector I is the entry level class in this series. Initially under close supervision, incumbents learn proper inspection techniques and perform a variety of duties involving the inspection of construction projects. This class is alternately staffed with Construction Inspector II, and incumbents may advance to the higher level after gaining experience and demonstrating proficiency which meet thequaiifications for the higher level class. Construction Inspector II is the skilled, working level class in this series. Under general supervision, incumbents perform the full range of'assigned duties and assist in the orientation and training of the lower level class. CLASS TITLE: CONSTRUCTION INSPECTOR 1/11 (Flex) · QUALIFICATIONS GUIDE: The level and scope of the knowledge and abilities listed below vary according to the I versus II levels distinguished in the previous section. Knowledge of: Laws, statutes, and ordinances governing engineering construction projects; common engineering construction methods; proper use of transits and levels; surveying principles and practices; proper usage of construction materials and equipment; safe work practices; mathematics. Ability to: Analyze and interpret complex engineering construction plans and specifications; make quantity calculations and prepare estimates; inspect common engineering construction; enforce and interpret regulations with firmness, tact, and impartiality; establish and maintain effective working relationships with contractors, property owners and 'the public; work independently in the field. Training and Experience: A typical way of obtaining the knowledge, skills, and abilities outlined above is: Construction.Inspector I: Graduation from high school or G.E.D. equivalent; and two years of experience in sub-professional engineering work including construction inspection, design drafting, design, engineering calculations, surveying, soils lab testing, or related area; or two years of college including engineering related courses and one year exPerience as an Engineering Technician or an Engineering Aide II. Construction Inspector I1: In addition to the above, two years of experience at a level equivalent to the City's Construction Inspector I class. Licenses; Certificates; Special Requirements: Possession of a valid California driver's license, Class C. Physical Conditions or Special Workinq Conditions: Must be willing to work out doors in all weather conditions. Promotion to Construction Inspector I1: Promotion to Construction Inspector II from Construction Inspector I is made on a merit basis, without examination, subjeCt to recommendation by the department head and approval'of.the City Manager. · Approved by the Miscellaneous Civil Service Board: Approved by the City Council: MISC\CONS.INS "OLD JOB SPECIFICATION" CLASS TITLE:~ cONSTRUCTION iNSPECTOR I 525 CLASS CHARACTERISTICS: Under close supervision, performs work of routine difficulty as an entry le'vel position to secure compliance with municipal regulatory standards affecting various aspects and phases of engineering con- struction; learns techniques related to the proper inspection of engineering construction standards and specifications; does sub- professional surveying work on a survey party crew; assists with laboratory and field materials testing; does other, work as required. Work is subject to periodic checks and reports may be reviewed for completeness in form. EXAMPLES OF DUTIES: Does engineering inspection work on street maintenance and construc- tion projects to insure compliance with approved standards and speci- fications; answers inquires from the public, in person or by telephone, concerning work in progress; assists with preliminary and control high- way material testing; works on a survey field party working on pre- liminary and construction survey projects. DESIRABLE MINIMUM QUALIFICATIONS: Training and Experience: Graduation from an accredited high school; two years experience in sub-professional engineering work in a public works department including drafting experience or two years of college, and two years experience as an Engineering Aide II, or an. Engineering Drafter, or any equivalent combination of training and experience necessary to perform the required duties. Knowledge~ Abilities and Skills: Some'knowledge of the laws, statutes, and ordinances governing engineering construction projects; knowledge of the proper use of transitsand levels. Ability to assist with highway soil tests; ability to make inspections of engineering construction projects; ability to interpret engineering construction plans and specifications; ability to make quantity cal- culations and prepare estimates; ability to prepare concise reports; ability to deal tactfully and effectively with contractors, and the general public. Licenses or Certificates: Possession of a valid-Class 3 California driver's license. Promotion to Construction Inspector II: Promotion to Construction Inspector II from Construction Inspec$or I is made on a merit basis, without examination, subject to recommendation by the department head and approval of the City Manager. .. 2/82 Approved by the City Council: 2-3-82 Approved by the Civil Service Board: 2-16-82 "OLD JOB SPECIFICATION" CLASS TITLE: CONSTRUCTION INSPECTOR II 526 CLASS CHARACTERISTICS: Under general supervision, performs work of average difficulty requiring specialized and technical skills in the inspection of engineering con- struction projects involving the enforcement of municipal regulatory standards affecting various aspects and phases of engineering construc- tion; does professional and sub-professiOnal surveying work on a survey party crew; performs laboratory and field materials testing; and to do other work as required. EXAMPLES OF DUTIES: Does engineering inspection work on street maintenance and construction projects to insure .compliance with approved standards and specifications; answers inquiries from the public, in person or by telephone, regarding engineering information; performs preliminary and control highway mater- ial testing; works on a survey field party working on preliminary and construction survey projects; assists in training of Construction Inspec- tor I; prepares concise reports. DESIRABLE MINIMUM QUALIFICATIONS: Training and Experience: Graduation from an accredited high school; five years of experience in sub-professional engineering work including at least two years as a Construction Inspector I. Knowledge~ Abilities and Skills: Considerable knowledge of the laws, statutes, and ordinances governing engineering construction projects; knowledge of common engineering construction methods and ability to make inspections of such work; knowledge of the proper use of transits and levels and skill in their use; knowledge and ability to perform various required highway soil tests. Ability to analyze and interpret complex engineering construction plans and specifications; ability to make quantity calculations and prepare estimates; ability to supervise; ability to prepare concise reports; ability to enforce and interpret regulations with firmness, tact, and impartiality; ability to establish and maintain effective working re- lationships with contractors, property owners, and the public. Licenses or Certificates: 'Possession of a valid Class 3 California driver's license. / 2/82 Approved by the City Council: 2-3-82 ~ Approved by the Civil Service Board: 2-16-82 ~' CITY OF BAKERSFIELD CLASS SPECIFICATION: 809 UNIT: MANAGEMENT EEO4: OFFICIAL/ADMINISTRATORS CLASS TITLE: ~i~i!i~ ASSISTANT CITY ATTORNEY CLASS SUMMARY: : :.:. :.: :..~ :... :: . ...: ... :: -: .,:::::-:-.:¥. :¥. ::::::::::::: .:: .:: ================================================ ¥.::¥:...::::. :::::::::::::::::::::::::::: :::::::::::::::::::::::: ::.;.;::::.:: ~: Under general direction, ~i~?~l~ii~~ii~ii~i~~ii performs civil and criminal legal work in representing the City and providing advice and counsel to City staff, Boards and Commissions; conducts legal research and drafts legal documents; performs related work as required. REPRESENTATIVE DUTIES: The following typical tasks and responsibilities are representative of all positions in the class. They are descriptive, not limiting. Essential Duties ~!~!iii~~!i acts as legal adviso~r to assigned City departments concerning their respective duties, powers, functions and obligations; researches legal issues and statutory and case law and drafts and reviews opinions, ordinances, resolutions, contracts, leases, permits and other legal documents; court cases encompassing a variety of subject matter, including performing all phases of pretrial, trial and appellate work; represents the City in administrative hearings before City Boards and Commissions and state and federal agencies; prosecutes litigation where the City is plaintiff; assists other attorneys in all phases of legal work; attends meetings of the City Council, boards and commissions ~~il or as requested by the-City Attorney; recommends selection of consultants; monitors and prepares comments on proposed federal and state legislation and regulation; answers correspondence and public inquiries on legal matters related to City business; may conduct criminal prosecutions for the City and/or other agencies as required; ' CLASS TITLE: ~iHi!i~ ASSISTANT CITY ATTORNEY DISTINGUISHING CHARACTERISTICS: ,-i,~,-,o,+,-.,~,~+ol ..... +;,.,,.o They .... i~,,., ,~ .... ,,.a +,-, '+ their _v~. ............. r- ................... ~. ....... carry e'... respenzlb!!!t!ez wiLl, QUALIFICATIONS GUIDE: Kn°wled.qe of ~i~i!~iii~i~~iiii~i~~iii~iii principles and procedures of civil, criminal and administrative law, especially as they relate to municipal governments; pleading and practices and effective techniques in the presentation of court cases; judicial procedures and rules of evidence; principles, methods and techniques of legal research and investigation; responsibilities and obligations of public officials and administrative agencies; municipal government organization, structure and functional responsibilities; the Brown Act, the Fair Political Practices Act and other state laws and court cases applicable to municipalities and public bodies. Ability to: i~!~~~ii~iiii~~~~i~iiii~~ii define issues, perform legal research, analyze problems, evaluate alternatives and make sound conclusions and recommendations; present statements of fact, law and argument clearly and logically; exercise sound, independent judgment within general policy guidelines and legal parameters; interpret state and federal laws, regulations, legislation and constitutional provisions affecting municipal operations; establish and maintain effective working relationships with those contacted in the course of work; represent the City effectively in hearings, courts of law and meetings; prepare clear, concise and competent resolutions, ordinances, contracts, leases, permits, reports, correspondence and other written materials. CLASS TITLE:-~!~ ASSISTANT CITY ATTORNEY Training and Experience: A typical way of, obtaining the knowledge, skills, and abilities outlined above is: A minimum of four ~i~ years experience in the practice of civil and criminal law and litigation defen$'~'i preferably in,a municipal s~ttingiiiiiiii~!~ii~iii~ili~ii~ LicenseS; Certificates; Special RequirementS: A valid California Driver's License, Class C Active member of the California State Bar Association Physical Conditions'or Special Workinq Conditions: Standard office environment and working conditions. Approved by the Miscellaneous Civil Service Board: Approved by the City Council: MISC\CHF-ASST.ATY PROPOSED SALARY CHIEF ASSISTANT CITY ATTORNEY 8/20/92 Step 1 Current Assistant City Attorney: $62,616 $5,215 Proposed Chief Asst City Atty: $69,120 $5,760 10.4% Current City Attorney: $79,416 $6,618 14.9 % *Note: RSG proposed that the Chief Assistant City Attorney be placed in the same salary range as Water & Sanitation Manager. Following is the data using current Water & Sanitation Manager salary range for the proposed Chief Assistant City Attorney. ClassitlChfasst. Wkl MEMORANDUM "WE CARE" -''"": --- .-~ .... "-i 5! May 22, 1992 ~!?i ~ " .... "- TO: J. Dale Hawley, City Manager FROM: Stephen D. Johnson, Fire 'Chief SUBJECT: SALARY FOR TRAINING AND FIRE SAFETY CONTROL DIVISION CAPTAINS Prior to negotiations with our'Supervisory Unit, I asked Maureen Cotner to include a 5% incentive pay increase to our Training Division Captain as part of the negotiated package. The Union quickly abandoned this position, and as such it is not being pursued. I strongly favor this increase for the following reasons: 1} Foremost is the need to make the Training Captains position attractive to compete with suppression positions and attract motivated personnel. This can best be'accomplished byequalizing the reportable PERS compensation Suppression Captains receive holiday pay, whereas the Training Captain forfeits it when taking this position. 2} The Training Chief receives the same 5% incentive. ~3) The Fire Marshal receives the same 5% incentive. The proposed 5% incentive pay is $2,333.15, comparable to the holiday pay give- to suppression personnel, which is $2,600 or 5.57% of a top Captain's salary. A second issue which I have spoken briefly with John Stinson about is the possibilityof incorporating the standby pay for our four Captains in Fire Safety Control into their normal base salary. To meet the requirements of pERs, it could no longer be called standby pay, but should be "bonuses for normally required duties, Government Code Section 20022{al{b)". In essence, this is similar to how F.L.S.A. was handled for sup- pression CaPtains. Currently Fire Safety Control Captains receive $160 every fourth week for standby pay. During negotiations the City offered $180 every fourthweek. This calculates out to an increase in their base salary by 5%. An overall summary for staff personnel in Fire Safety Control and Training would be that everyone would be receiving a base salary §% higher than suppres- sion personnel. However, all personnel would have the same reportable'income to PERS. ' Page 2 May 22, 1992 SALARY FOR TRAINING AND FIRE SAFETY CONTROL DIVISION CAPTAINS APPROXIMATE COST Training Captain (1) $2,333.15 annual Fire Safety Control Captains (4) $2~240.00 annual TOTAL $4,673.15 Thank you for your consideration and help in this matter. I know this will be a great aid in retaining experienced and motivated people in these jobs and elimi- nate some small inequities. SDJ:ps 5:Incentive C, EMPL 1001 SEVENTEENTH STREET, SUITE A, BAKERSFIELD, CALIFORNIA 93301 TELEPHONE (805) 325-7~7 · FAX (805) 325-7814 O June Z$, 199£ OCAL1 J. Dale Hawley, Manager City of Bakersfield 1501 Truxtun Ave. Bakersfield Ca 93301 Dear Mr. Hawley: Today I learned of an employee who had submitted a sick leave request to care for a seriously ill parent who was residing with the employee. The employee had to take time off since there was no one else available to care for the parent. The sick leave request was properly rejected since the City's ordinance did not provide for the care of a parent. We strongly feel the ordinance should be changed to cove~ such an occurence. The Union proposes the followiag modification to' ordinance 2.84.490 sick leave - Policy [B.): Sick leave shall be allowed in case the employee's spouse, minor children or parent are ill or injured and in need of medical attention provided, that they reside with the employee and no one else is readily available to care for them. Your assistance in-securing such a change would be appreciated. Sincerely, Charles G. Waide, Jr. Assistant General Manager JUN. 1992 CITY MANAGERS OFFICE REPRESENTING PUBLIC EMPLOYEES SINCE 1939 JUN 2 199 2.84.430---2.84.500 2.84.430 Annual vacation leave- :2.84.470 Annual vacation leav~ Sick leave during vacation Fractional balances. period. Unused balances of less than one full day or A. Employees who become seriously ill or one full twenty-four-hour duty shift shall disabled while on vacation are entitled to take automatically be carried forward to the nest accumulated sick leave upon presentation of a calendar year. (Priorcode § 3.18.190(n)). certificate fwm a licensed physician, or pre- sentation of other proof-satisfactory to the 2.84.480 Reserved.* department head, showing the necess/ty for the sick leave. 2.84.490 Sick leavt~Policy. B. Thh certificate or other proof must be A. Sick leave shall not be considered as a right presented to the department head concerned not which an emplo~yee may use at his discretion, but later than the date on which the employee is shall be allowed only in case of necessity and scheduled to return to duty, together with a actual sickness or disability. Medical and dental request Jo reachedule or extend h/s vacation appoinlments qualify for sick leave. leave for a period covered by the illness. (Prior' B. Sick leave shall be allowed in case the code § 3.18.190(j)). employee's sPOuse or minor children are itl or injured and in need of medical attention: provided, 2.84.440 Annual vacation leave- that they l~de with the employee and no one else Loss for nonuse, is readily ava/lable to care for them. In the event an employee fails to use his C. Employees may utility: one eight-hour day annual vacation leave and deferral is not or its shift equivalent per year as personal requested b~/ the employee and recommended by the department head nor approved by the necessity leave chargeable to sick leave. Such city manager, the vacation leave shall be con- leave is designed to permit employees time off sidered lost and no other compensation as during normal working time to conduct personal recognition of the lost vacation will be-made, business. Pex~onal necessity leave shall require (Prior code § 3.18.190(k)). prior approval of the depamnent head and shall be taken in minimum of two hours. (Ord. 2782 § 13, 2.84.450 Annual vacation leave- 1982: Ord. 2567 § 4 (pan), 1980: prior code § Vacation at termination. 3.18.200(a)). · An employee shall be allowed his regular compensation at his final rate of pay for any 2.84.$00 Sick leave-- 'vacation due on the effective date of termina- Proof of illness. tion. (Prior code § 3.18.190(1)). A. In order to receive compensation while absent on sick leave, the employee shall notify his 2.84.460 Annual vacation leave- immediate supervisor prior to the beginning of his Vacation benefits for daily duties as soon as possible. deceased employees. A. An employee who is eligible for vacation leave and who dies wlfile in the municipal service *Editor's Note: Former Section 2.84.480-- shall have the amount of any accrued vacation Axinualvacation leave--Tenneco West employees, paid to his estate within thirty days. previously codified herein and containing prior B. This proration will be computed at his last code Section 3.18.195 was repealed by Ordinance regular hourly rate of pay. (Prior code § No. 3426. $. 18. I 90(m)). 1001 SEVENTEENTH STREET, SUITE A, BAKERSFIELD, CALIFORNIA 93301 TELEPHONE (805) 325-7487 · FAX (805) 325-7814 O O July 2, 1992 'UOAL7 6 1992 " J. Dale Hawley, Manager CI?%'MANAGER'$ OF~OE City of Bakersfield 1501Truxtun Ave. Bakersfield Ca 93301 Dear Mr.. Hawley: Hopefully the City of Bakersfield will not find it necessary to lay off employees due to shortage of funds. However to answer questions, I reviewed section 2.72.230 - Layoff in the Ordinance Code. I find this section'unclear when it states, "the youngest employee in point of time-in-service in the department or class affected shall be the first employee demoted or laid off". One employee may have more seniority by class, when another has more seniority in the department. I feel we should' clarify the lay off procedure prior to any need for its use. Sincerely, Charles G. Waide Jr. Assistant General Manager CGWjr:rf REPRESENTING PUBLIC EMPLOYEES SINCE 1939 2.72.210m2.72.240 2.72.210 Change of positions, in-sewice in the depanmem or class affected A. Promotions. In the event of a promotion to shall be the first-employee demoted or laid off. a higher grade during the probationary period C. When two or more employees have the within a division, the department head may same seniorityrating~ the employeewhoatmined ., reduce the employee to his former grade with the the highest grade in the dvil service board exam- approval of the city manager, ination for the position held at the time of layoff ,B. Change of Position. All employees, except or demotion shall be deemed to have greater employees in the police department, changing seniority. (Prior code § 3.14.220). from one class or position to a different class or position shall be required to undergo a six-month 2.72.240 Disciplinary action. probafionaryperiod. Police departmentemploy- Disciplinary. action shall be taken against ecs shall be required to undergo a one-year pro- employees for infractions of the city Charter, bationary period. Civil service status shall be municipal code, administrative rules and regula- determined at the time of change, fions, administrative practices, and departmen- C. Transfer. Employees within the same class tal procedures or policies. of the city may be transferred from one depart- A. Reprimand. A department head may ment or division to another, subject to the cause a reprimand to be fried in an employee's approval of the heads concerned, and with the personnel ftc .upon sufficient cause. The repfi- authorization of the city manager. (Ord. 2782 § 3, mand shall be in the form of an employee per- 1982; prior code § 3.14.200). formance evaluation form and/or a deficiency notice. A copy of the reprimand shall be fur- 2.72.220 Reinstatement. nished the employee. A. Certification. Employees who have volun- B. Suspension. The department head 'may tarily left the city service and who have attained a suspend from duty for cause, any employee satisfactory employee performance evaluation within his department for a period'not to exceed upon termination, may be certified for reinstate- thirty, days in any one instance, subject to appeal ment by the 'appropriate civil 'service board for and review of the city manager. Notice of the appointment to the position last held, a lower suspension stating the cause will be fried on the class series position, or a position formerly held. change of employee status form and a copy fur- B. Credits. Employees may be reinstated at nished the employee., the salary, step in the salary, range assigned to theC. Reduction in Salary,. A department head class or positioh last earned. The reinstated may recommend the movement of an employee employee's prior service shall not be credited from one salary step-within a salary, range to a towards sick leave, vacation, or time-in-service lower salary step for performance less than start- within the class or department. (Ord. 3142 § 1, dart. The recommendation will be fried on an 1988; prior code § 3.14.210). employee performance evaluation form with a copy furnished to the employee thirty days in 2.72.30 Layoff or demotion, advance of the salary reduction. Recommenda- A. When in a department having ten or more tions for salary reductions must receive the subordinate positions, the department head, approval of the city manager. with the approval of the city manager, may D. Right of Appeal. An employee shall have reduce, by layoff or demotion, the personnel of the right to appeal to the city manager, any disci- that department because oflack ofwork or short- plinary action, other than discharge, taken age of funds, against him. Appeals must be in writing and B. The youngest employee in point of time- must be fried with the city manager within five days of the action taken. Failure to appeal shall b~ 65 , (Bakersfield 748)