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HomeMy WebLinkAbout10/26/1999 B A K'E R S F I E L D Mike Maggard, Chair Irma Carson Mark Salvaggio Staff: Alan Christensen SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield Tuesday, October 26, 1999 4:00 p.m. City Manager's Conference Room Second Floor, City Hall 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT OCTOBER 4, 1999 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. DISCUSSION AND COMMITTEE RECOMMENDATION ON HEALTH PLAN RENEWALS FOR 2000 (Buck Consultants) - Hayden B. DISCUSSION AND COMMITTEE RECOMMENDATION ON SALARY STUDY/REFERRAL - Tandy 5. ADJOURNMENT AC:jp DRAFT BAKERSFIELD A an Tandy, C~ty Manager Mike Maggard, Chair Staff: Alan Christensen Irma Carson Mark Salvaggio AGENDA SUMMARY REPORT PERSONNEL COMMITTEE MEETING Monday, October 4, 1999 4:00 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 4:05 p.m. Present: Councilmembers Irma Carson and Mark Salvaggio Absent: Councilmember Mike Maggard, Chair 2.ADOPT JULY 15 AND AUGUST 19, 1999 AGENDA SUMMARY REPORTS Adopted as submitted. 3.PRESENTATIONS None 4.PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. DISCUSSION AND COMMITTEE RECOMMENDATION ON THE CITY PHYSICIAN CONTRACT At the August 19th Personnel Committee meeting, the Committee wanted to ensure that employees be given the option to pick or identify the physician of .their choice, so if they were injured on the job, they could go to that physician. Staff was directed to check with the service providers and return to the Committee with a recommendation. Risk Manager Scott Manzer stated that staff is recommending that service contracts go to Southwest Urgent Care for Fire personnel, Bakersfield Occupational Medical Group for Police personnel, and W. B. Chdstiansen M.D., Inc. for all other personnel. Due to expertise in this field of medicine, all non- treatment services such as pre-employment physicals and drug screening would go to AGENDA SUMMARY REPORT PERSONNEL COMMITTEE DRAFT October 4, 1999 Page -2- Dr. Chdstiansen. For industrial injury treatment, employees will be given an option to pre-select any of the three choices if they so desire, or employees may pre-designate their personal physician. In addition, these pre-selections of physicians would not only be for treating .workers' compensation, but for return to work and fitness for duty physicals. This recommendation has been reviewed by city departments and employee union representatives and has their support and concurrence. The medical facilities have been notified and are in agreement with providing these services. The Committee approved staff's recommendation and recommended forwarding to the Council for approval (Councilmember Maggard was absent). 6. NEW BUSINESS A. DISCUSSION AND COMMITI'EE RECOMMENDATION ON HEALTH PLAN RENEWALS FOR 2000 Human .Resources Manager Carroll Hayden stated we have received rate information on health plan renewals for the next calendar year. The rates have been taken to the Joint Employee/City Insurance Committee for their review and recommendations and they have met, but their formal recommendations have not been received as yet. Tim Beck and Mark Orzechowski from Buck Consultants were introduced to present the renewal information that was shared with the Insurance Committee. Mr. Orzechowski stated renewal premiums for 2000 for the City's medical, dental, vision and metal health coverages are projected to increase 12.3% overall ($885,457) fo.r an expected total annual premium of $8,099,306. This increase does not include Blue Cross Medicare Risk program as this premium information has not been received, but is expected by the middle of October. Overall, medical premiums are increasing 13.3%, overall dental premiums are increasing 9.7%, while the vision and mental health premiums are not changing. Blue Cross' overall medical PPO/Rx renewal increase is 15.1% (active's premiums are increasing 6.8% and retiree's premiums are increasing 35.4%, both based on claims experience). Blue Cross' overall HMO renewal increase is 8.3% (active's premiums are increasing 3.5% based on actives' demographics and retiree's premiums are increasing 95.9% based on specific demographics of those enrolled). Kaiser HMO overall renewal increase is 19.7%, Secure Horizon's PacifiCare Medical Risk overall renewal increase is 326.1%, and the Blue Cross dental indemnity increase is 16.8% and the balance of the coverages did not change. Overall, Medical risk premiums are increasing for all managed care organizations. With the Balanced Budget Act of 1996 (BBA), the HCFA financing strategy shifted, which has resulted in most managed care organizations eliminating Medicare risk services in certain geographic locations locally and nationally. This service area shift and BBA provisions have drastically. impacted Medicare risk premium rates. Mr. Orzechowski concluded with an overview of claims, loss ratios, and information on plan alternatives. DRAFT PERSONNEL COMMITTEE October 4, 1999 Page -3- Margaret Ursin, retiree, spoke against the proposed increase of the co-payment for an office visit from $5 to $10 for retirees. The City Manager stated that the renewal information is still being reviewed at the Insurance Committee level and it is subject to gathering more information. We have been asked to look at the issue of re-blending the active and retiree groups and will be getting that information. Another significant issue needing to be resolved is that the current budget is about $1001000 short in being able to pay for the projected increase in premiums for the last six months of the fiscal year, as the new rates will be in effect January Ist. The Committee thanked the representatives from Buck Consultants .for their presentation. Committee member.Salvaggio stated he was willing to review, but did not support proposed plan alternatives that cut services to the employees. Committee member Carson said she would like staff to provide a breakdown of what the proposed actual increases would be for employees, the retirees and the City, before making a decision. The Committee requested staff to provide information on the history of why we unblended rates and the City Attorney's opinion at the time, before consideration of going back to blending the rates. Committee member Carson requested the time frame for making a decision. Carroll Hayden responded within the next 30 days if possible, as the rates need to be approved by Council, so that we can have the contract in place and disseminate the information to employees and retirees in order to have an open enrollment prior to the first of the year. 7. COMMITTEE COMMENTS None 8. ADJOURNMENT The meeting was adjourned at 5:30 p.m. cc: Honorable Mayor and City Council AC:jp Staff present: City Manager Alan Tandy; Assistant City Manager Alan Chdstensen; City Attorney Bart Thiltgen; Human Resources Manager Carroll Hayden; Scott Manzer, Risk Manager; Deputy City Attorney Andrew Thomson; Fire Chief Ron Fraze, Lance Bowman, Fire Department; and Benefits Technician Ginger Rubin. Others present: J. R. Carrera, Department Manager, Bakersfield Occupational Medical Group; Thomas Watkins, Public Relations, Bakersfield Family' Medical; Ward Wollesen, Central Californian Association of Public Employees; Dale Hawley, Retiree Representative; Richard Watkins, Fire Department retiree/B-FLAG; Scott Monroe; Margaret Ursin; and Harry Scott. BAKERSFIELD SALARY SURVEY - COMPARABLE CITIES 1. The study would consist of a market questionnaire sent to public agencies. This includes a brief description of the position, minimum qualifications, bargaining unit, and Iow and high pay ranges. 2. Human Resources staff would be responsible for sending salary questionnaires to the survey cities and ensuring that they were returned. The survey will require the Human Resources Office to personally contact the Survey Cities for clarification and validation. This may require site visits. A group of impacted employees would review the mailer and material before distribution. If site visits are required, a representative from the Review Committee may accompany the Human Resources Representative. 3. The raw data would be returned to Human Resources. A Review Committee of impacted employees will review the raw data. 4. A cumulative, big picture look at the data will be performed to determine if it is consistent or inconsistent with our experience. This analysis would be available to the Review Committee for review and comments. It should be noted that, due to Bakersfield's Iow cost of living, we are normally about 7% to 12% below the survey city average. Thus, 7% to 12% below would be used as a benchmark number. This is the same standard used each year with the Police and Fire bargaining units. Thus, for example, if the data showed a general trend of 15% below the average, it would indicate a need for planning, when affordable, an adjustment. If it showed a general trend as being 9% under, no adjustment would be in order. 5. Separate and related would be a position by position analysis performed by staff to determine individual consistency or inconsistency with overall trends. Again, the Review Committee would have an opportunity for review and comments. Similar to Item ~4 above this may result in adjustments to individual positions if the 7% to 12% threshold justifies. 6. Recommendations would be made by the City Manager's staff based on the data collected, analySis performed, and input provided by the Committee. Any recommendations would be made on an individual classification basis. 7. A plan would be developed to increase pay for positions that seem to be below the benchmark level theY should be, based on market and equity considerations. Salary Survey Page Two 8. Those classifications that appear t° be compensated too highly in comparison to the benchmark level will be adjusted only when vacant. In the case of multiple incumbent classifications, no new hire or promotion will be made to the unadjusted salary range, but to the 'recommended range. Additionally, no general wage increase will be given to those positions compensated too highly in comparison to the survey benchmark level, if the study produces a general overall increase. 9. The survey will also determine if there is a general practice to have a predetermined percentage level between related classifications. 10. At all phases of the study, the Committee would have access and input to any study materials, analysis and recommendations made by City Manager's staff. Assumptions: · The market analysis portion of the salary study will use the 10 cities historically used as our Survey Cities. They will be contacted for the purposes of comparing competitive positions for salary. · All Management and General Supervisory positions will be surveyed for salary data. This includes approximately 80 positions. · A Review Committee consisting of Alan Christensen, Carroll Hayden, and Darnell Haynes, and two management and two supervisory employees would be organized to review and analyze the data collected by the market study and suggest areas where a study of internal relationships would occur. 10/15/99 BAKERSFIELD 'MEMORANDUM October 13, 1999 TO: Alan Tandy, City Manager ,.... FROM: Rhonda Barnhard, General Supervisory Representative~__O~ .. Mike Connor, General Supervisory Representative SUBJECT: Salary Survey The General Supervisory Unit has reached a decision concerning the impending salary study and have voted not to participate in the salary study with comparison to the 10 survey cites. Supervisor's met on October 4, 1999 to discuss and vote on the issue. There are 80 total supervisor's, 30 were in attendance of which 24 voted not to participate in the study. As an alternative, they recommended consideration of an internal study of only those positions which appear to have compaction issues (ie., Supervisor I's & Il's).. Subsequent to the meeting, several supervisor's present at the October4th meeting, expressed their concerns about the outcome, in particular the voting method which was by a show of hands. In addressing these concerns, we decided to make a final attempt in obtaining votes from all 80 supervisor's via e-mail, telephone or any means available as some field supervisor's do not have access to e-mail. The final vote.was 36 in opposition to 31 in favor of the Salary Study with comparison to the l0 cities as proposed (13 supervisor's could not be reached). This is the same outcome as determined at the October 4th meeting. c: Members, General Supervisory Unit