Loading...
HomeMy WebLinkAbout12/19/2007 B A K E R S F " I E ~ L ~ D ~.~- Harold Hanson, Chair Staff: John W. Stinson David Couch Assistant City Manager Ken Weir AGENDA SUMMARY REPORT SPECIAL MEETING of the PERSONNEL COMMITTEE Wednesday, December 19, 2007 3:00 p.m. City Manager's Conference Room 1501 Truxtun Avenue; Bakersfield, California 93301 Called to Order at 3:04:49 p.m. 1. ROLL CALL Committee members present: Councilmember Harold Hanson, Chair Councilmember David Couch Councilmember Ken Weir Staff present: Alan Tandy, City Manager John W. Stinson, Assistant City Manager Rhonda Smiley, Assistant to the City Manager/PIO Rick Kirkwood, Management Assistant -City Manager's Office Steven Teglia, Administrative Analyst -City Manager's Office Joshua Rudnick, Deputy City Attorney Robert Sherfy, Deputy City Attorney Javier Lozano, Human Resources Manager Ginger Rubin, Benefits Clerk Pamela McCarthy, City Clerk Nelson Smith, Finance Director Scott Monroe, Engineer -Bakersfield Fire Department John Patterson, Maintenance Craftworker -Bakersfield Fire Department Paul Smith, Engineer -Bakersfield Fire Department Allan Abney, Sergeant -Bakersfield Police Department Bob Bivens, Captain -Bakersfield Police Department Todd Dickson, Detective -Bakersfield Police Department Brian West, Detective -Bakersfield Police Department Brad Underwood, Operations Manager -Public Works Department Sam Russell, Communications Technician -Public Works Department Retired employees: Sandee Morris and Gene Bogart Others: Chuck Waide, SEIU Local 521 Jim Summers, BUCK Consultants Miscellaneous members of the media 2. ADOPT NOVEMBER 27, 2007 AGENDA SUMMARY REPORT 3:05:40 p.m. Adopted, with one correction. Item 4a., first paragraph, second sentence: 2007 is changed to 2008. 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS 3:07:02 p.m. A. Discussion regarding Medical Insurance Renewals -Lozano, Stinson Assistant City Manager Stinson distributed a memorandum from the City Manager with regard to health insurance renewals. He also referenced a document in the agenda packet that had been prepared by the Finance Department that reflected very poor sales tax growth and estimated shortfalls in projected revenues for development related activities. The most recent quarterly sales tax data compares the most recent quarter with same quarter last year, and it is down by 13%. The most recent four quarters compared with the prior four quarters, shows a decrease of 5%. Over the last 10 years, the City's cost for benefits has increased from 21 % to 32%, and the cost for active and retiree medical cost has increased from 6% of the General Fund to 9%. Staff attempted to contain costs; however, the rates continued to increase. Meetings were held with the Insurance Committee in an effort to reach agreement on plan changes. As of December 18, 2007, the Insurance Committee determined that the City's proposal was unacceptable. Based on that decision, impasse was declared. Impasse procedures will be followed and the matter will be brought before the City Council on January 16, 2008 for further direction. Chuck Waide, with SEIU Local 521, distributed a statement from the Insurance Committee, which he read into the record: The Joint Insurance Committee has met and provides to the Council Personnel Committee the following response to the City's two proposals: Whereas, the City failed to meet and confer with the Insurance Committee prior to October 31, 2007, in accordance with the MOU, despite numerous written and verbal requests; Whereas, the first City-scheduled Insurance Committee meeting was held on November 14, 2007; Whereas, the City requested an extension of the October 31, 2007 meet and confer deadline which was unanimously rejected by the Committee at the November 14, 2007 committee meeting. However at the request of the City, the Insurance Committee continued to meet for informational purposes only; Whereas, the City was provided with timely information by their insurance consultant and failed to share this information with the Insurance Committee prior to November 14, 2007; Whereas, the City has unilaterally implemented a number of contract plan changes without participation or knowledge of the Insurance Committee; these items include but are not limited to: S:\Council Committees\2007\07 Personnel\December 19\December 19 ASR.doc Page 2 • Prior authorization on prescription drugs • Co-pays for wellness exams • Retiree medical contribution based upon active rates rather than retiree rates Therefore based on the above facts, it is the recommendation of the Insurance Committee: • All medical insurance plans remain unchanged for the calendar year of 2008. • The City recognizes the Insurance Committee structure as proposed by the Committee. • All future insurance plan changes shall be presented to the Committee for meet and confer. • Prior Plan changes unilaterally implemented by the City shall be brought to the Committee for action. • The City to utilize the lowest "applicable retiree rate" when computing the retiree years of service contribution. Mr. Stinson verified that a wellness program has been in effect since 1994, and the outpatient drug authorization has been a requirement since 1999. In regard to the retiree medical contribution being separate from active employees, the City's policy is consistent with current Memorandum of Understandings with the bargaining units, as follows: "Received the subsidy of the lower of the HMO or Fee for Service single rate." Deputy City Attorney Sherfy stated that the purpose of this meeting is informational. Statements have been taken from the public, Mr. Waide and Mr. Stinson. He emphasized to the Committee that because the impasse procedure has been begun, any lengthy discussions about the matter should be deferred to the City Council meeting on January 16, 2008. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting was adjourned at 3:19:25 p.m. S:\Council Committees\2007\07 Personnel\December 19\December 19 ASR.doc Page 3