HomeMy WebLinkAbout01/12/1998 BAKERSFIELD
Patricia J. DeMond, Chair
Mark Salvaggio
Jacquie Sullivan
Staff: John W. Stinson
AGENDA
PERSONNEL COMMITTEE
Monday, January 12, 1998
4:00 p.m.
City Manager's Conference Room
1501 Truxtun Avenue
Bakersfield, CA
1. ROLL CALL
2. APPROVAL OF SEPTEMBER 8, 1997 MINUTES
3 PRESENTATIONS
4. PUBLIC STATEMENTS
5. DEFERRED BUSINESS
None
6. NEW BUSINESS
A. GENERAL SERVICES DIVISION ORGANIZATIONAL ISSUES
B. 1998 PERSONNEL COMMITTEE MEETING CALENDAR
7. ADJOURNMENT
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DRAFT
BAKERSFIELD
Alan~r,~'r~y, Cit~/la~ Patricia J. DeMond, Chair
Staff: John Stinson// Mark Salvaggio
Jacquie Sullivan
AGENDA SUMMARY REPORT
PERSONNEL COMMITTEE
Monday, September 8, 1997
4:15 p.m.
City Manager's Conference Room
1501 Truxtun Avenue
Bakersfield, CA 93301
1. ROLL CALL
Call to Order 4:20 p.m.
Present: Councilmembers Patricia J. DeMond, Chair; Jacquie Sullivan and
Mark Salvaggio
2. APPROVAL OF AUGUST 11, 1997 MINUTES
Approved as submitted.
3. PRESENTATIONS
None
4. PUBLIC STATEMENTS
None
5. DEFERRED BUSINESS
A. HEALTH PLAN MARKETING
John Stinson gave a status update. This item was deferred from the last meeting
as there were several questions from the Committee and outstanding issues that
needed to be resolved. A response prepared by Herb Kaighan of Aon Consultants
AGENDA SUMMARY REPORT
PERSONNEL COMMITTEE DRAI:T
Monday, September 8, 1997
Page -2-
Was handed out (copy attached) as a follow-up to the questions from the August 11th
meeting which includes:
· A summary of responses from the carriers (included in the exhibits)
· The benefit and access differences between our current Fee for Service and the
Kaiser point of service plans with clarification dialog.
· Information regarding Blue Cross CaliforniaCare HMO negotiations with
Gemcare a current HMO physicians group.
· Information on Kaiser Medicare Risk Plan for non-California residents primarily
relating to retirees-to offer a consistent plan, the plan for California will be used
- · Information regarding plan differences between Blue Cross Senior Care and
proposed Kaiser zero-premium medicare risk coverage, and rate information on
offering coverage separately for just retirees versus coverage for the active
group.
· Information regarding dental coverages
· Cost information on orthodontia benefit maximums (for review only)
· Survey information regarding the fee-for-service dental plan annual maximum
· Confirmation of proposed rates by Blue Shield
· Clarification on point of service PacifiCare proposal
· Information on the Kaiser HMO plan and if it is added as an additional HMO,
whether or not they would carve out the mental health and substance abuse
benefits that are included, they do not do that, so there would be some
duplication of benefits
(The Committee directed Herb Kaighan to check with Kaiser to make sure this does
not cause future problems.)
° Information regarding PacifiCare and zero-premium medicare risk programs
Mr. Stinson stated that the City Manager and staff are in agreement with raising the annual
maximum dental benefit to $1,500 if the Kaiser HMO plan is added, as the cost savings to
the City by adding the second HMO would offset the increased cost of raising the
maximum dental benefit. Mr. Stinson explained that the addition of Kaiser would reduce
the years service subsidy for retirees by about $18 per month for a retiree with thirty years
service. This would mean an equivalent additional cost increase for retirees.
It was also pointed out that there will be a significant increase in the fee for service retiree
medical rates and retiree contributions due to the rates being developed from the retiree
claims experience separate from active employee experience (i.e. unblended rates).
Amounts paid by retirees for fee for service are estimated to increase by approximately
$33.86 per month for single, $65.94 per month for two-party, and $98.02 per month for
family coverages due to the separate experience rating (increase example based on 30
years service).
The reduction in the year service subsidy affects both retiree fee for service and retiree
HMO participants and is in addition to the contribution increases anticipated for retiree fee
for service rates due to separate experience rating.
AGENDA SUMMARY REPORT
DRAFT
Monday, September 8, lgg7
Page -3-
The Insurance Committee met on September 4t~ to review questions and information from
the last Personnel Committee on August 11th and City staff recommendations. Information
regarding the potential impacts on retirees regarding the addition of Kaiser as a second
HMO was presented by staff. The Insurance Committee discussed the impacts of the fee
for service rate increases and reduction of the years service subsidy due to the addition
of the Kaiser option on the retiree group. They also considered the cost impact of
increasing the maximum dental benefit. After much consideration, and input from a retiree
in attendance, the Insurance Committee unanimously recommended that: 1) The annual
maximum dental benefit be raised from $1,000 to $1,500; 2) The Kaiser HMO plan be
added as a second HMO for employees and retirees; and 3) addition of the Kaiser zero-
premium medicare risk plan be offered as a third medicare risk plan for retirees as there
is no cost to the City. After reviewing cost information, the Insurance Committee is no
longer considering increasing the lifetime orthodontia benefit maximum at this time. The
Insurance Committee recommends approval of the total health plan proposal. Employee
Representative Chuck Waide stated that it is a positive package for the employees and
good for the City as well.
Mr. Stinson stated we have additional information on renewals. As a result of the
marketing efforts, the renewal rate from MESC, the vision plan, has been confirm with no
increase (with the possibility of a 2-year rate guarantee upon evaluation in the first quarter
of 1998); and the renewal rate from Psychology Systems, the mental health and chemical
'dependancy coverage, has been confirmed with an 18 percent reduction in rates from what
they are currently.
The recommended health plan proposal includes the following:
· Renewal of Blue Cross Indemnity Fee For Service Prudent Buyer Plan. (A
reduction of rates of approximately 7.6% which equates to $216,000 savings)
· Renewal of the HMO plan with CaliforniaCare. (A reduction of rates of
approximately 1.5% which equates to $36,000 savings. 8% to 11% rate guarantee
depending on shift to Kaiser for 1999 renewal)
· Add Kaiser HMO plan as alternate HMO choice to CaliforniaCare for employees and
retirees. Would expand HMO availability outside California to a limited number of
other states and most western states for retirees. (Estimated savings due to
reductions to City retiree subsidy is $45,000. Additional city and employee savings
could occur if employees switch from more expensive plans to Kaiser. If more than
15% of City employees shift from California Care to Kaiser, there are likely to be
rate increases in CaliforniaCare HMO to offset lost enrollment impacts, these should
net out with premium savings, however.)
· Pursue option of offering Blue Cross Secure Plan III medicare risk plan as alternate
to current Blue Cross medicare risk plan. Let plan participants (6) choose
preference. (Zero-premium plans so no cost impact.)
AGENDA SUMMARY REPORT
PERSONNEL COMMITTEE
Monday, September 8, 1997 DRAFT
Page -4-
· Renew PacifiCare (Secure Horizons) medicare risk plan. (Reduction of 18.2% or
approximately $2,000)
· Offer zero premium Kaiser medicare risk plan. This adds another option for
medicare retirees and provides transition for retirees who may choose Kaiser HMO
plan when they become eligible for medicare.
· Renewal of Blue Cross Indemnity Fee For Service Dental Plan. (No change in
premium proposed) Increase plan annual maximum from $1,000 to $1,500.
(Additional cost approximately $41,000)
· Renewal of DDS prepaid dental. (Reduction of 2.4% or approximately $2,000 in
savings, three year rate guarantee)
· Renewal of HBI prepaid dental. (No change in premium proposed, three year rate
guarantee)
· Renewal of MESC vision plan. (No change in premium proposed, with the
possibility of a 2-year rate guarantee upon evaluation in the first quarter of 1998)
· Renewal of Pacificare, Psychology Systems Mental Health and Substance Abuse
plan. (Reduction of 18% or approximately $41,000 savings, two year rate
guarantee, no more than a 5% increase effective January 1,2000)
The proposed renewals are estimated to provide a net savings of approximately $300,000
to the City and its employees.
The Personnel Committee unanimously approved the health plan proposal and forwarding
it to the full Council.
Staff also gave the status of getting a retiree representative for the insurance committee.
6. NEW BUSINESS
None
7. ADJOURNMENT
The meeting was adjourned at 5:15 p.m.
Staff present: Assistant City Manager John W. Stinson Assistant City Attorney Bob Sherfy; and Human
Resources Manager Carroll Hayden who arrived at 4:30 p.m.
Others present: Herb Kaighan, AON Consulting; Retiree Margaret Ursin; Clayton Koemer, Alliance Brokers
and Consultants; Rodger Gagosian, Gagosian Associates; and Chuck Waide, SEIU Local 700.
cc: Honorable Mayor and City Council
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BAKERSFIELD
MEMORANDUM
January 5, 1998
/
TO: Personnel Committee _~/
FROM: Carroll Hayden, Human Resources Manager
SUBJECT: General Services Division Organizational Issues
The recent death of the Assistant Superintendent in General Services has prompted a revision to
the reorganization recommended for the Division. Rather than replacing the vacant Supervisor II
with a Clerk Typist I and Trades Assistant, we would like to recommend deleting the Assistant
Superintendent position instead. Retaining the Supervisor II is consistent with the previous plan
to reinstate the position once the Assistant Superintendent retired.
This action will provide more salary savings because the Assistant Superintendent is compensated
at a level approximately 10% greater than Supervisor II.
S:\COUNCIL\GSREORG. WPD
ADMINISTRATIVE REPORT
I
MEETING DATE: December 17, 1997 I AGENDA SECTION: Consent Calendar
I
ITEM: R. c, c.,
TO: Honorable Mayor and Councilmembers .l\, APPROVED
FROM: Carroll Hayden, Human Resources Manager~ DEPARTMENT HEAD ~
DATE: December 3, 1997 CITY ATTORNEY ~~
CITY MANAG~"-~~
SUBJECT: Organizational Issues:
1. Replacement of vacant Supervisor II in General Services with a
Clerk Typist I and a Trades Assistant
2. Reclassification: Utility Worker to Trades Assistant
RECOMMENDATION:
Staff recommends referral to the Personnel Committee.
BACKGROUND:
Due to a retirement, there has been a vacant Supervisor II position in the Plant Maintenance Section of the General
Services Division for approximately one year. The General Services Superintendent would like to take advantage
of this opportunity to have the Assistant Superintendent assume the supervisory duties and replace the Supervisor
II with two additional positions. When the Assistant Superintendent retires, the Supervisor II position will be
reinstated as its replacement. This action will be consistent with previous restructuring that has been done
throughout the Public Works Department.
In exchange for the Supervisor II position, General Services has requested the addition of a Clerk Typist I and a
Trades Assistant. The Clerk Typist I position would be utilized pdmadly within the graffiti program tracking work
orders, answering the graffiti hotline, preparing correspondence and newsletters and assist with work in the General
Services and Streets Divisions when warranted. The Trades Assistant would be utilized in the Plant Maintenance
Section to replace the staff reassigned to graffiti abatement.
General Services has approximately $54,000 budgeted in the FY97/98 fiscal year budget for the Supervisor II salary.
This would be more than adequate to cover salades for the Clerk Typist I and Trades Assistant. There would be
additional savings this year on fdnge benefits for the two new positions because their cumulative salary is still less
than that of Supervisor II.
In addition, the current Utility Worker is working out-of-class and performing Trades Assistant duties. Therefore,
a reclassification has been requested. The Human Resources Division has reviewed the duties of this position and
concurs with the recommendation to reclassify the Utility Worker to Trades Assistant.
December 3, 1997, 4:43pm
ADMINISTRATIVE REPORT Page 2
Summary
The Clerk Typist I and Trades Assistant will be funded by salary savings from the vacant Supervisor II position.
Therefore, there should not be any budgetary impact for the current fiscal year. This will however add an additional
position to the General Services Division staff complement.
S.E.I.U. has been advised of and concurs with the proposed reclassification of the Utility Worker to Trades
Assistant. This issue will be presented to the Miscellaneous Civil Service Board at their regular meeting on
December 16, 1997.
Staff also recommends that the reclassification become effective the beginning of the first full pay period following
Council action.
December 4, 1997, 1:34pm
PERSONNEL COMMITTEE - 1998 PROPOSED MEETING SCHEDULE
ON MONDAYS AT 4:00 P.M. -- SUMMERTIME MEETINGS WILL BE AT 12:15 P.M.
COMMITTEE MEETING_ TIME
January 12 4:00 p.m.
February 9 4:00 p.m.
March 9 4:00 p.m.
April 13 4:00 p.m.
May 11 4:00 p.m.
June 22 (4th Monday) 12:15 p.m.
July 13 12:15 p.m.
August 10 12:15 p.m.
September 14 4:00 p.m.
October 12 4:00 p.m.
November 9 4:00 p.m.
December 14 , 4:00 p.m.
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