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Home My WebLink About11/03/2005 B A K E R S F I E L D Harold Hanson, Chair Zack Scrivner Jacquie Sullivan Staff: Carroll Hayden SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council - City of Bakersfield Thursday, November 3, 2005 11:00 a.m. City Manager's Conference Room, Suite 201 Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT OCTOBER 4, 2005 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4, DEFERRED BUSINESS A. Review and Committee recommendation on Health Plan design changes - Hayden 5. COMMITTEE COMMENTS 6. ADJOURNMENT S:~,C\05 Personnel~P05nov03agen.doc B A K E R S F I E L"D ~ ~ Harold Hanson, Chair Staff: Carroll Hayden Zack Scrivner For: Alan Tandy, City Manager Jacquie Sullivan AGENDA SUMMARY REPORT SPECIAL MEETING · PERSONNEL COMMI'I'rEE Tuesday, October 4, 2005 - 11:00 a.m. City Manager's Conference Room, Suite 201 Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL Called to Order at 11:03 a.m. Present: Councilmembers Harold HansOn, Chair; and Zack Scrivner Councilmember Jacquie Sullivan arrived at 11:05 a.m. 2. ADOPT JUNE 13, 2005 AGENDA SUMMARY REPORT Adopted aS submitted. (Committee Member Sullivan absent) 3. PUBLIc STATEMENTS 4.' DEFERRED BUSINESS A. Review of final Health Plan rate increases City. Manager Alan Tandy spoke regarding previous Personnel Committee meetings held earlier this year. At that time Buck had preliminary figures from Blue Cross and Was anticipating their premium rates would increase approximately 9% overall for 2006. Buck has informed the City that premium increases are going to be higher than projected. Some coverage is being increased 17% and 18%, but the overall increase in premiums for 2006 is going to be 14%. The action the Personnel Committee took on June 13th to make health plan design changes to reduce the anticipated insurance premium increases by approximately $620,000 was based on the 9% increase. Staff is proposing additional plan design changes to reduce the additional 5% projected increase in premiums. After this Committee meeting, the health plan changes will need to go back to formal meet and confer with the bargaining representatives. A date has not been set as yet, but the time frame is very short to get their information before the Council. Because of the required noticing and open enrollment period for employees, the Health Plans need to be on the October 26th Council agenda. Aoencl~ Summ~ry ~epor~ DRAFT Personnel Committee Meeting Page 2 October 4, 2005 B. Review and Committee recommendation on Health Plan design changes COmmittee Member Scrivner wanted to restate the action recommended by the Personnel Committee at its June 13th meeting to deal with the 9% increase. At that time the Committee voted to recommend the City pay for 5% of the increase and to reduce the other 4% increase in premiums, make the following adjustments to the Health Plans: HMO Plans · Increase office visit copay from $10 to $15 · Add $250 per admission hospital copayment · Increase emergency room copayment from $50 to $75 (which wOUld be waived if admitted to the hospital) PPO Plan · Change coinsurance in-network'from 80-100% (depending on type of service) to 90%, and 60% for out-of-network · Increase out-of-network out-of-pocket maximum from $1,600 to $5,000 · Add $250 per.admission hospital copayment · Add $75 emergency room copayment Blue Cross Dental Plan Change prosthodontic service from 80% to 60% Committee Member Scrivner asked for staff's recommendation to reduce the unexpected additional 5% health plan increase in premiums. The additional 5% increase will raise premiums and leave the budget out of balance by $168,376, assuming the Personnel Committee's recommendations at the June 13th meeting to deal with the 9% increase in premiums are adopted by the Council. Committee Member Sullivan was in agreement with staff's recommendation to make additional plan changes to reduce the additional 5% increase in premiUms. It was noted that the Employee Insurance Committee was not in agreement with any plan changes to reduce the 9%. projected premium increases when the Personnel Committee met in May and June of this year. Committee Member Scrivner explained if no action is taken to reduce the 14% increase, premiums will increase $2.23 million for 2006. For active employees the City pays 80% of the premiums and the employees pay 20%. The retirees pay different amounts depending on coverage and years of service, but pay an average share of 27%. Committee Chair Hanson opened the floor to allow statements and questions by the employee representatives in attendance. Agenda Summary Report D AF'r Page3 Personnel Committee Meeting October 4, 2005 Chuck Waide, CCAPE, expressed that he cannot speak on the recommendation until the health plan premium rate increases go back to meet and confer. Mike Turnipseed, Kern Tax, spoke regarding cafeteria plans and letting employees decide how their individual total compensation package is spent. Committee Member Scrivner made a motion the Committee approve and forward staff's recommendation to increase the individual deductible from $200 to $250 and increase the emergency room visits from $75 to $100 to reduce the unexpected additional 5% increase in premiums, in addition to the health plan design changes the Personnel Committee recommended at its June 13~ meeting to reduce the 9% increase in premiums. Committee Members Scrivner and Sullivan voted: Aye. Committee Chair Hanson voted: Nay. Committee Chair Hanson stated he has met with staff regarding budgeting and the cost of premium increases for the Health Insurance Plans and met with representatives of the bargaining units. In order to promote good relations, he proposed that if the bargaining units buy into his proposal, he will go back to Council with a minority recommendation; however, if they do not, he will vote for the Personnel Committee majority recommendation. The cost of his recommended proposal would be 2-tenths of 1% of the General Fund. Committee Chair Hanson proposed the following: If the bargaining units agree to the original plan adjustments made by the Personnel Committee to reduce the 9% increase in premiums, he will make the following recommendations to the Council: 1. Delay the following plan changes to the HMO Plans to calendar year 2007 · The $250 per admission hospital copayment; and · The increase emergency room copayment from $50 to $75; and 2. Delay the following plan changes to the PPO Plan to calendar year 2007 · The $250 per admission hospital copayment; and · The $75 emergency room copayment; and 3. In addition, he will recommend that there be no other health plan changes to reduce the unexpected additional 5% increase in premiums for 2006. Committee Chair Hanson stated this proposal, cumulatively, would cost the City $296,350 in 2006. Agenda Summary ~eport DRAFT Page4 Personnel Committee ~eetJng October 4, 2005 Staff was requested to prepare a Majority and Minority Report for Council consideration. Committee Chair Hanson will review the Minority Report with staff before it is submitted to Council. 5. COMMITTEE COMMENTS 6. ADJOURNMENT The meeting was adjourned at 12:15 p.m. Attendees: City Manager Alan Tandy; Assistant City Manager Alan Christensen; Assistant City Manager John Stinson; City Attorney Ginny Gennaro; Human Resources Manager Carroll Hayden; Finance Director Nelson Smith; Fire Chief Ron Fraze; Deputy Fire Chief Ga~j Hutton; Police Captain Tim Taylor; Scott Monroe and Paul Smith, Fire Department; Bill Ware, Police Department; City Clerk Pam McCarthy; Ginger Rubin, Human Resources Benefits; Chuck Waide and Pete Rodriguez, SEIU-CCAPE; and Mike Turnipseed, Kern Tax cc: Honorable Mayor and City Council S:~AC~05PersonnelCommitteeP05octO4summary - AC.doc