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HomeMy WebLinkAbout02/26/1995 BAKERSFIELD ' Patricia J. DeMond Mark Salvaggio AGENDA SUMMARY REPORT PERSONNEL cOMMITTEE Tuesday, September 26, 1995 4:00 p.m. City Manager's Conference Room City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 93301 1. ROLL CALL Call to Order 4:15 p.m. Present: COuncilmembers Jacquie Sullivan, Chair; Patricia J. DeMond; and Mark Salvaggio 2. APPROVAL OF AUGUST 1, 1995 MINUTES Approved as submitted. 3. PRESENTATIONS None AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Tuesday, September 26, 1995 Page -2- 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None 6. NEW BUSINESS A. RETIREE MEDICAL INSURANCE City Manager Alan Tandy made a brief presentation to the Committee regarding the status of the Retiree Medical issue. He explained the exponential growth in the City's cost for the Retiree Medical program and the long term impacts that will have upon the City. He also indicated that there have been numerous meetings with the Insurance Committee and individual meetings with bargaining groups over the past few weeks in an attempt to come to a resolution of this issue. He explained that there are specific legal constraints unique to retiree benefits which have made the negotiation of an acceptable solution very difficult. The City has determined the actions it may legally take regarding this issue, however, those options may have significant impact on some retirees and may not be the most desirable. The Insurance Committee (made up of bargaining unit representatives) has been meeting regularly to work towards an acceptable solution, however, they are clearly not in agreement with current City proposals. There does appear to be agreement from the Insurance Committee regarding the implementation of a Medicare Risk Plan, and implementing some limitation of retiree medical benefits for new employees (those not yet hired) although the details have not been finalized. This would assist in limiting the City's future liability for retiree benefits in the future. The major issue of contention continues to be how to address the subsidies provided to the retiree Fee For Service plan. The Insurance Committee representatives indicated to the Personnel Committee that they believe a solution could be found if they have additional time to develop alternatives. It was indicated that lack of a common solution could result in prolonged labor and/or legal disputes over actions which could be taken by the City regarding Retiree Medical. Based upon the comments and concerns presented at this meeting, the Personnel Committee agreed that is unlikely that a solution would be arrived at prior to the AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Tuesday, September 26, 1995 Page September 27th City Council Meeting. The Committee supported allowing some more time for the development of a solution, however, it is important that significant progress occur before the end of 1995. The Committee requested that staff make a brief presentation to the Council outlining the current status of the issue and to indicate that more time is needed to resolve the outstanding issues. They also requested that a report on the resolution of the matter be prepared for the City Council prior to the end of 1995. Due to the only December City Council meeting being early in the month it is likely that the report would be presented for Council review at the first meeting of 1996. The Committee encouraged the Insurance Committee to quickly work towards a solution. The Personnel Committee will continue to closely monitor progress on this matter at its monthly meetings. 7. ADJOURNMENT The meeting was adjourned at 4:45 p.m. Staff present: City Manager Alan Tandy; Assistant City Manager John W. Stinson; Deputy City Attorney Michael AIIford; and Benefits Technician Ginger Rubin. Others present: Ed Watts, Jim Cecil, Don Martin, Harry Scott, Margaret Ursin, Richard Watkins, Chuck Waide, Randy Harger, Scott Monroe, Herb Kalghan, Randy Boggs. cc: Honorable Mayor and City Council c:pc