HomeMy WebLinkAbout12/18/1995 B A K E R S F I E L D
Alan T ,~:1~. y,,'~,C}ty~ rvl~anager / Jacquie Sullivan, Chair
Staff: John W. Stinson~ ' Patricia J. DeMond
/
Mark Salvaggio
/ AGENDA SUMMARY REPORT
SPECIAL PERSONNEL COMMIT:TEE MEETING
Monday, December 18, 1995
3:30 p.m.
City Manager's Conference Room
1501 Truxtun Avenue
Bakersfield, CA 93301
1. ROLL CALL
Call to Order 3:30 p.m.
Present: Councilmembers Jacquie Sullivan, Chair; Patricia J. DeMond;
and Mark Salvaggio
2. APPROVAL OF DECEMBER 4 AND DECEMBER 11, 1995 MINUTES
Approved as submitted.
3. PRESENTATIONS
None
4. PUBLIC STATEMENTS
None
5. DEFERRED BUSINESS
A. RETIREE MEDICAL PLAN
The Personnel Committee met to discuss and review the issue of Retiree Medical
Insurance, Staff presented information to the Committee which showed the inequity
APPROVED AS S0-BI~TI'ED APRIL 2, 1996 FILE C[IP¥
AGENDA SUMMARY PORT
PERSONNEL COMMITTEE
Monday, December 18, 1995
Page -2-
between the fee-for-service and HMO rates due to an error which provides multiple
subsidies to the fee-for-service participants. This has resulted in rate inequities and
rapidly escalating costs to the City for retiree health insurance.
Staff reviewed with the committee the various options available given the legal
constraints related to retiree medical plans. Staff also provided a survey of retiree
medical benefits for comparable cities which showed our benefit level exponentially
greater in comparison.
Representatives from the various employee bargaining units and several retirees
were in attendance at the Personnel Committee meetings and made comments
regarding the information and options presented by staff.
After considerable discussion of available options and legal constraints, there
appear to be two alternatives. With regard to the double subsidy, the most legally
sustainable recommendation is to unblend the retiree and active experience rating.
This would occur approximately July 1, 1996 in order to provide time to notify
retirees and time for them to make decisions regarding insurance choices.
An alternative would be to have all employee groups agree to fix the 42% subsidy
at the 1995 level for each coverage level (single, two-party and family) for the fee-
for-service participants. The second alternative requires agreement by all
employee groups and if legally challenged, would then result in the city taking
action to unblend the rates.
In addition to addressing this primary issue, staff and the Committee are
recommending the following for both alternates:
· The restructuring of all the retiree rates to reflect participation in Medicare
and the concept that the two-party rates are twice the single rate and a
family rate that is three times the single rate.
· The implementation of a Medicare Risk option with the City contributing the
cost of the Medicare Risk premium and a flat dollar amount up to the
Medicare part B monthly premium at the 1996 rate (estimated at
approximately $42.50). In no case would this contribution exceed 90% of the
lowest single rate.
· The City would also investigate and develop a strategy for possible
participation in HMO plans in other states for city retiree participation. The
City would provide counseling and assistance to retirees in helping them
understand the options available to them for health care coverage.
For retirees that may be impacted by the increases to Fee-for-Service rates due to
PERSONNEL COMMITTEE
Monday, December 18, 1995
Page -3-
unblending, the City will assist them by providing information about options
available to them such as transferring to the HMO or Medicare Risk plans. Special
educational sessions, staffing or consulting efforts would be made to assist
employees with special problems.
In addition, for those persons not yet hired by the City, the City will meet and confer
with each bargaining unit to obtain agreement to language that has been agreed
to by the Blue and White Collar employees regarding participation in the Retiree
Medical Insurance plan. This would require twenty years' service to qualify for
participation and enrollment in Medicare as a condition of participation.
Councilmembers Salvaggio and DeMond voted to recommend to the City Council
that unless the alternate proposal which fixed the 42% contributions for each level
of coverage was agreed to by all the bargaining units, that the City Council should
implement staffs' recommendation to unblend the retiree rates. Councilmember
Sullivan did not support the motion and indicated a preference to just proceed with
the unblending of the rates. Staff has provided each bargaining unit the specific
proposal for their consideration.
Staff will prepare a Personnel Committee Report reflecting the above information
with attachments for each proposal for the January 10, 1996 Council meeting for
action by the full Council.
6. NEW BUSINESS
A. 1996 MEETING SCHEDULE
Approved.
7. ADJOURNMENT
The meeting was adjourned at 5:45 p.m.
Staff present: City Manager Alan Tandy; Assistant City Manager John W. Stinson;
Assistant City Attorney Michael AIIford; and Finance Director Gregory Klimko.
Others present: Retirees Margaret Ursin, Richard Watkins, Jim Dean, and Galen Chow;
Fire Captain Ed Watts; Police Detective Harry Scott; Police Detective Randy Boggs; and
Chuck Waide, S.E.I.U.
cc: Honorable Mayor and City Council
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