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HomeMy WebLinkAbout07/15/1999 BAKERSFIELD Mike Maggard, Chair Irma Carson Mark Salvaggio Staff: Alan Christensen AGENDA PERSONNEL COMMITTEE of the City Council - City of Bakersfield Thursday, July 15, 1999 3:00 p.m. City Manager's Conference Room Second Floor, City Hall, Suite 201 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL 2. ADOPT NOVEMBER 9, 1998 AGENDA SUMMARY REPORT 3 PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS None 6. NEW BUSINESS A. UPDATE ON EMPLOYEE INCENTIVE PROGRAM - Christensen B. DISCUSSION OF SALARY COMPACTION/REFERRAL AND RELATED MATERIAL - Tandy C. REVIEW OF BLUE CROSS HEALTH INSURANCE PERFORMANCE - Hayden 7. COMMITTEE COMMENTS 8. ADJOURNMENT AC:jp FILE COPY DRAFT BAKERSFIELD Alan Tandy, City Manager Patricia J. DeMond, Chair Staff: Alan Christensen Mark Salvaggio Jacquie Sullivan AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, November 9, 1898 4:00 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 4:00 p.m. Present: Councilmembers Patricia J. DeMond, Chair; and Mark Salvaggio Absent: Councilmember Jacquie Sullivan 2. APPROVAL OF AUGUST 19, 1998 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None D AFT AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, November 9, 1998 Page -2- 6. NEW BUSINESS A. HEALTH INSURANCE RENEWALS - Hayden Human Resources Manager Carroll Hayden stated that the health plans were marketed a year ago and contracts were put in place. Buck Consultants, the City's health care consultants, have negotiated renewal rates with the companies. There are rate increases in most programs, and rather considerable increases in the preferred provider programs. The current agreements have caps that limit the percent of annual rate increases. Blue Cross is exercising the entire cap percent allowed by the agreement for the PPO programs. The Insurance Committee has reviewed the 1999 health plan renewal information and increases. Ms. Hayden introduced Tim Beck and Mark Orzechowski from Buck Consultants, Who gave an overview of the adjustments in rates as outlined in the handout in the Personnel Committee packet (attached). The overall renewal increase for 1999 for all health coverages is 20.2 percent. Overall medical premiums are increasing 24.7 percent. Dental premlums are decreasing while the vision and mental health premiums are not changing. The Blue Cross PPO plan increase is 38.6 percent (includes both actives and retirees added together). The Blue Cross HMO is increasing 8 percent. Kaiser HMO is increasing 11.9 percent. Secure Horizons HMO is increasing 10.5 percent. Dental Indemnity is decreasing 3.8 percent. Dedicated Dental, Pacific Dental, Medical Eye Services, and PacifiCare Behavioral Health have no changes to their current rate structures. Buck Consultants is projecting for the Blue Cross PPO and Dental Indemnity plans a 1998 year-end deficit of just over $700,000, which includes a deficit of $597,450 for the active medical PPO plan, a deficit of $156,787 for the retiree medical PPO plan, and a surplus of $52,687 for the dental plan. The existing agreement states that the deficits, which are the result of claim costs exceeding premiums, are the responsibility of the City. The deficits will be reduced gradually over time as premiums are generated in excess of claims costs. Blue Cross 1999 renewal adjustments overall for Medical PPO/Rx are 44.1 percent for actives and 28.4 percent for retirees, and a 3.9 percent decrease for dental. Buck Consultants prepared an analysis, independent of Blue Cross, evaluating the renewals that generated percentage increases just slightly higher than Blue Cross. The large increase is due to premiums having decreased over the past three years, while expenses increased. In answer to a question from Committee Chair DeMond, as the renewal requests are based on claims experience, it is highly unlikely that other companies would be able to be more competitive at this time. Buck Consultants reviewed the increased claims history and will do further analysis on QAFT AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, November 9, 1998 Page -3- utilization factors, including prescription drugs, to determine the specific reasons for the increases. This adjustment in rates represents an approximate $1.2 million annual increase for the City in calendar year 1999. Assistant City Manager Christensen stated there are funds available in the current budget to absorb the City's contribution increase for the first six months of 1999, which is about $455,000. These funds are available, in the health insurance budget because of prudent estimates made during budget preparation. Our estimates of cost assume that a higher number of employees will participate in the most costly medical programs than actually do. The premium increase of about $745,000 for the last six months of 1999 will need to be addressed in next year's budget. Mr. Christensen gave an overview of the rate summary information (attached) showing the cost to individual employees/retirees. The new rates will become effective December 21, 1998. The Committee approved staff's request to forward the Health Plan Renewal and rate-increases request to Council at the December 9, 1998 meeting. Committee Chair DeMond requested that the consultants be available by phone for questions from Councilmembers and Councilmembers-elect. (Tim Beck or Mark Orzechowski are.available at (310) 282- 8232.) 7. ADJOURNMENT The meeting was adjourned at 4:50 p.m.. Staff present: Assistant City Manager Alan Christensen; Human Resources Manager Hayden; and Deputy City Attorney Andrew Thomsonl Others present: Tim Beck and Mark Orzechowski from Buck Consultants; Gary Shaft; Margaret Ursin; Scott Monroe; Richard Watkins; Chuck VVaide arrived at 4:10 p.m; Clay Koerner arrived later. cc: Honorable Mayor and City Council AC:jp EMPLOYEE INCENTIVE PROGRAM FACT SHEET Approved by City Council May 20, 1998 ~.. Hicjh Five · Inception in July 1998 · Nominated for superior performance, good customer service, & special projects · 181 nominations to date · Submitted by peers, subordinates or supervisors · Prizes include movie ticket vouchers, gift certificates, and car washes · Introduced June 25, 1999 · Suggestions for constructive solutions to internal problems · The Committee reviews suggestions monthly · Those with merit may be implemented by departments · Successful ideas are rewarded with a gift certificates of choice · SubmiSsions may be from individuals or teams Employee Aporeciation Breakfast · First held June 26, 1998 at Yokuts Park · Event designed to say "thank you" City employees, permanent and temporary · Breakfast served by various City Council, department heads, & division managers · Gift certificate raffles for attendees · 459 employees attended 2n~ annual breakfast last month The Committee Alan Christensen, City Manager's Office Amber Lawrence, City Manager's Office Connie Walls, Finance Cyndee Hluza, Water Resources David Lyman, Economic and Community Development Frank Ramos, Fire Isabelle Williams, Development Services Janet McCrea, Executive John Adamson, Public Works Phil Clarke, Police Tim Ruiz, Recreation and Parks HIGH FIVE AWARD I am nominating: Name Title Dept for the HIGH FIVE AWARD because: Print Name of Nominator Dept. Signature of Nominator Date Five names will be drawn monthly from the nominations received. These winners may choose one of the following: movie ticket vouchers,~car wash gift certificates or a restaurant gift certificate. The winning employees will be notified by mail on or before -the 10~ of the following month. *Nominator - Please submit this form to the Human Resources Division to nominate the a&ove employee. Bright Ideas Let us know about your Bright Ideas. Do you have the answers to: How would we go about making a complicated task a lot simpler? What is it in our work environment that isn't as safe as it could be? If we were paying the bills, how would we go about' reducing waste? How can a task be done better through improved teamwork and allocation of resources? How can we improve our work environment, processes and procedures to be more productive and effective? Tell us what needs to be improved. Include the task and the department. Now for the Bright Ideal Give us the details on how this can be improved. Please attach additional sheets if needed. All ideas will be reviewed by the committee. Those identified as having merit will be forwarded to the appropriate department, and the employee will be rewarded with a gift certificate of choice. How do we get in contact with you? Name: Department: Ext. number Please forward this form to Employee Incentive Committee c/o City Manager's Office Program Parameters · of $50 gift certificate or 4 hfs time off 'Everyone can participate, from the field to the any department for their internal or external office! ° 15 year service - certificate of appreciation; choice of customer service; teams of employees can be $100 gift certificate or 6 hrs time off recognized for excellent teamwork. · There are 5 components implemented in 3 phases · 20 year service - certificate of appreciation; Service Award forms are available in each department and Over a two year period. Award Pin (Pin); choice of $100 gift ust be submitted to Human Resources. Each · This program has been created from the bottom up · 25 year service - certificate of appreciation; Pin; nominee will receive a nomination certificate and the using input and guidance from all levels of the choice of $150 certificate or 8 hrs time off organization, nominee's supervisor will receive a copy. · 30 year service - certificate of appreciation; Pin; All High Five nominees will become part of the · The Employee Incentive Program Committee has choice of $150 certificate or 8 hrs time off "High Five Club" for the year and will be representation from each department and all ·~ 35 year service or more - certificate of appreciation; recognized at the Appreciation Breakfast. employees from blue collar to management. Pin; choice of $200 certificate or 8 hrs time off · The City Manager reserves the right to modify, or · Recognition through public service announcements, 3. APPRECIATION BREAKFAST (Phase 1) discontinue any portion of the program as needed or and a recognition wall at City Hall to focus on long A. Objectives: based upon financial constraints, time employees. · Promote team efforts and common goals. Success Points. 2. HIGH FIVE (Phase 1) · Say thank you to employees and show our · appreciation for their hard work. Train managers in proper use of the program and A. Objectives: B. Description: monitor for overuse or under use. · Encourage employees to treat citizens, fellow · Managers serve an annual catered breakfast to all · Meaningful rewards that benefit the individual, the employees and departments as customers non-management employees. team and the organization. · Stimulate willingness to undertake extra work for · The High Five Club for the year are recognized. · Recognition and participation by all levels of short periods when necessary · Bright Ideas recipients are recognized and are employees from blue collar to management · Encourage employees to produce quality work and invited to put up a display at the breakfast featuring 1. SERVICE AWARDS (Phase 1) high levels of productivity their winning proposal. A. Objectives: B. Description: · All employees, including temps, are invited! · Enhance the current Service Awards Program · Award includes a Nomination Certificate and entry 4. BRIGHT IDEAS (Phase 2) · Recognize long and faithful service into a monthly drawing for 5 gift certificates A. Objectives: B. Description: redeemable for lunches, for movie tickets, or car · Stimulate individuals and teams to develop creative washes. · · proposals for cutting costs, improving efficiency or 5 year service - certificate of appreciation; choice of An Employee can be nominated once monthly, service, or making working conditions safer. $50 gift certificate or 4 hrs time off · All employees, including temps can participate · Encourage teamwork within departments and across · 10 year service - certificate of appreciation; choice · Any employee can recognize another employee from departmental lines. · Stimulate cooperation rather than competition over · The program can stimulate employees to ask the good ideas. ~:it following questions: · Add value for the teams and the organization by ' ~* ~ How would we go about making a providing discretionary funding for improving complicated task a lot simpler? operations, morale and/or expertise. ,,~ ~* What is it in our work environment that isn't B. Description: 'i as safe as it could be? ~' If we were paying the bills, how would we go B A K E R S F I E L D · Recognition by the City Manager and award of gi~t about reducing waste? certificates redeemable for car washes, movie I} ~* How can a task be done better through tickets, etc. to each team member. ~ improved teamwork and allocation of EMPLOYEE INCENTIVE PLAN · Quarterly recognition from Mayor at City Council ! resources? meetings. ~' How can we improve our work environment, · Recipients will receive discretionary funds to processes and procedures to be more Brought to you by your Employee Incentive Committee: budget for training, conferences, equipment or ~ productive and effective? capital improvements. The individual or team, in i Connie Walls, Finance consultation with the appropriate managers, will 5. EXCELLENCE IN ACTION (Phase 3) Frank Ramos, Fire Services decide how to allocate the funds. ~ A. Objectives: Phil Clarke, Police Services · Suggestions can come from any individual or team · Reward long-time, peak performing employees John Adamson, Public Works of two or more employees either within a :i · Sustain a high level of productivity and quality. Janet McCrea, Executive department or as part of a multi-departmental effort. · Stimulate superior job performance. Tim Ruiz, Recreation and Parks · Qualifications for award include: improved service; Cyndee Hluza, Water Resources cost savings/avoidance, efficiency and B. Description: Linda Cohen, City Attorney's Office effectiveness; or health and safety issues. ° Recognition is for an employee that consistently goes Isabelle Williams, Development Services · Proposals should be submitted to the Employee above and beyond required job duties, as validated by David Lyman, Economic and Comm. Development Incentive Committee to be forwarded to the the annual performance evaluation. Amber Lawrence, City Manager's Office appropriate Department. Proposals will be ~ · All employees at top step are eligible. Alan Christensen, City Manager's Office evaluated by the Department Head who has 15 day~ · The annual award may be a $100 Gift Certificate or 8 to respond back as to whether or not the proposal is hours time off which can be accumulated over several feasible given available resources and regulations years and may only be taken in 8 hour blocks. Approved by the City Council on May 20, 1998 and an implementation date. The Committee will ' inform the team to let them know the status of the proposal. ,BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM June 24, 1999 TO: Personnel Committee FROM: Alan Tandy, City Manager 'SUBJECT: Salary Compaction Several members of City Council have asked staff to deal with a salary compaction issue. Salary Compaction occurs when one group of employees gets a wage or benefit increase that another does not, thus, the historic spread between the levels is narrowed, causing morale problems, disincentives to seek promotion, etc. This circumstance occasionally develops in' Bakersfield, as a by-product of collective bargaining agreements. For example, a few years ago, we did not have enough people prepared for a promotional exam in the Police Department, so we bargained an educational incentive. It corrected the problem, as more are now prepared, but it closed the historic gap between a sergeant's pay and a lieutenant's, who did not get it. We had a similar problem in the Fire Department - far too few college degrees and State certified courses to become a chief officer. Again, we bargained a correction, which is working, but which also compacted salaries between battalion chief and assistant chief. Similar circumstances exist in a variety of blue and white collar areas where special pays have been granted for a variety of certificates and licenses which has compacted pay with their supervisors. One solution would be to extend the incentives upward in the Public Safety departments. That, however, creates a serious equity problem across departmental lines. Why is a Bachelor's degree worth incentive pay in the Fire Department, when a law degree, engineering degree, or Master's degree is worth nothing elsewhere? To the degree that we deal with one group at a time, we simply move the inequity and discontent from one group to another. We can give educational incentives in Fire; why is it worth money there, but not Police? If we provide for Policel why not Finance, MIS, Economic Development, etc.? Additionally, collective bargaining agreements are set at 90% of the survey City group. We have a number of management employees who are well below that target level of compensation. That also creates compression between supervisors and those they supervise. Personnel Committee June 24, 1999 Page 2 Is there an unusual or new compression problem between levels in the Fire Department beyond the above referenced education incentive? No, nothing else has changed since 1990. Although the spread between ranks is modest, there are more extreme compaction " examples in the engineering and legal operations, and similar salary spreads in other '-'" departments. In fact, no major compensation analysis of all unrepresented personnel in supervision and management has occurred since 1992 and issues identified then were not addressed. VVhat the Fire Department does have, which is unusual, is a Charter provision that makes specific reference to a "DePuty Fire Chief." The Police Department currently has two Assistant Chiefs and the exact structure varies over time. A Charter amendment to remove the specific language referring to a singular Deputy Fire Chief would allow more flexibility in that structure. The fact is that the pay is close because the duties are similar in the Charter simply does not allow flexibility wit. h the titles. Recommendations · Maintain the Council established salary structure throughout the City, by adjusting concurrently the salary levels of unrepresented personnel who currently are at the level of Police Lieutenant and above in the event any adjustment is given to Fire management personnel. The correct amount to adjust for the educational incentive and special pay would be 5%, which would be applied to the "blue and white", as well as public safety personnel. · Place "clean up" language to the Charter in the March 2000 election which eliminates reference to the singular Deputy Fire Chief. · Independent of the above salary compaction issue, a comprehensive compensation analysis should be undertaken to provide information to ensure that Council established compensation guidelines are being met and to deal with any other inequities that have developed over time. This analysis should encompass both external and internal relationships. · The analysis referenced above can be performed internally by the Human Resources department. Completion of the analysis needs to be done in an expeditious manner to address the entirety of all unrepresented employees. cc: Honorable Mayor Price City Councilmembers