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Home My WebLink About07/07/2009 S A K E R S F I E L D City Council members: Staff: John W. Stinson Ken Weir, Chair Irma Carson Assistant City Manager Zack Scrivner SPECIAL MEETING OF THE PERSONNEL COMMITTEE Tuesday, July 7, 2009 1 :00 P.M. City Hall South - Caucus Room 1501 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 1 :20:00 PM 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Zack Scrivner Councilmember Irma Carson was absent City staff: Alan Tandy, City Manager John W. Stinson, Assistant City Manager Rhonda Smiley, Assistant to the City Manager/ PIO Steven Teglia, Administrative Analyst- City Manager's Office Rick Kirkwood, Management Assistant- City Manager's Office Robert Sherfy, Deputy City Attorney Pamela McCarthy, City Clerk Nelson Smith, Finance Director Javier Lozano, Human Resources Manager Ginger Rubin, Benefits Technician Derek Tisinger, Fire Captain / BFLO Brian West and Todd Dickson, Police Detectives / BPOA Retired employees: Margaret Ursin Others present: Marlene Valdez and Chuck Waide, SEIU Local 521 Chris Kim and Tom Morrison -Segal Company S:\Council Committees\2009\Personnel\July\July 7 ASR.doc J WS:al Page 1 2. ADOPTION OF MARCH 11, 2008 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Update re ardin q :lty Proposals to Insurance Committee for Health Insurance Renewals and Health Plan Cost Reduction O Lions - Lozano Tom Morrison with Segal summarized the contents of information distributed at this meeting and that of the Insurance Committee earlier in the day. a. Renewal of Active plans with no benefit changes i. Anthem HMO ii. Anthem PPO iii. Kaiser HMO Active employees would see a rate decrease of 4.8% in the Anthem HMO plan; a decrease of 0.9% in the Anthem PPO plan; and a 9.6% increase in the Kaiser HMO plan. b. Renewal of Retiree plans with no benefit changes i. Anthem HMO - Under 65 ii. Anthem PPO - Under 65 Kaiser HMO - Under 65 Retirees under the age of 65 would see a rate increase of 41 .6% in the Anthem HMO plan; a 22.6% increase in the Anthem PPO plan, and a 2.3% increase in the Kaiser HMO plan. The rates for the Blue Cross Senior Secure and Kaiser HMO Senior Advantage will not be available until the fall when it comes up for approval by the Center for Medicare CMS. There would be no change in the vision rates for any of these plans. Additionally, the basic life insurance plan rates would decrease by 28.6%. The accidental death and dismemberment insurance rate would not change. SACouncil Comm ittees\2009\Personnel\July\July 7 ASR.doc JWS:aI Page 2 C. Elimination of Duplicate MH/SA under Anthem PPO Beginning January 1, 2010, the City must comply with the Mental Health Substance Dependency Parity Act. Neither Active employees nor retirees will see an increase in rates. Approximately I% will be built into plan costs in order to be compliant with Federal law. There will be no differentiation in reimbursement levels, or frequency or duration of visits. d. Acceptance of Metropolitan bid regarding Dental RFP Segal sent out an RFP to dental program providers, both preferred providers and pre-paid plans. Based on the proposals received, Segal recommends the following: Replace Anthem with Metropolitan Life Insurance Company as the preferred provider; retain United Healthcare as the pre-paid plan; and replace DDS with United Healthcare as the lower-cost pre-paid plan. e. Alternative Plans for Retirees 1. Riverside Retiree JPA ii. AARP Voluntary Group Plan for Medicare Eligible Retirees The County of Riverside, by use of a Joint Powers Agreement, operates a plan that draws from a pool consisting of multiple entities. Costs are kept low due to the large number of participants. The Insurance Committee will continue to explore and discuss this plan as a possible option for the future, as well as a plan administered by AARP. This may be a viable option to reduce costs for both the City and the retirees. City Clerk Pam McCarthy spoke on behalf of the Insurance Committee. She reported that, by unanimous vote of those in attendance, the Insurance Committee endorses Segal's recommendations, and they will continue to review the Riverside Retiree JPA and AARP options for retirees. Committee member Scrivner made a motion to approve Items a, b, c and d, and to continue to investigate Item e. It was unanimously approved, with Committee member Carson absent. S. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting was adjourned at 1:47:06 PM SACouncil Committees\2009\Personnel\July\July 7 ASR.doc JWS:al Page 3