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Home My WebLink About09/02/2009�3 •�� ` ,��"` ``�F �� ,� � � �.� F = � ��:, �:��. _ � . ,� , .�m��a �,�.a ,. � .° � ��,��. ��.. ' � ' � . , \ � � City Council members: w Ken Weir, Chair Staff: John W. Stinson Irma Carson Assistant City Manager Zack Scrivner SPECIAL MEETING OF THE PERSONNEL COMMITTEE Wednesday, September 2, 2009 1 1:00 a.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 1 1:23:47 AM 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Zack Scrivner Councilmember Irma Carson 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 Nelson Smith, Finance Director Pamela McCarthy, City Clerk .lavier Lozano, Human Resources Manager Joshua Rudnick, Deputy City Attorney Ron Fraze, Fire Chief Gary Hutton, Deputy Fire Chief Bryan Lynn, Assistant Police Chief Ginger Rubin, Benefits Technician Brian West and Todd Dickson, Police Detectives / BPOA Retired employees: Margaret Ursin Others present: Jeremy Wright, State Senator Dean Florez' office Marlene Valdez and Chuck Waide, SEIU Local 521 Chris Kim and Tom Morrison - Segal Company S:\Council Committees\2009\Personnel\September\September 2 ASR.Docx Page 1 J WS:aI 2. ADOPTION OF JULY 7, 2009 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Committee Discussion and Recommendation rec1ardinq the Replacement of Anthem Blue Cross PPO and HMO with the Riverside JPA Retiree Medical Plan for Retirees - Lozano City Manager Tandy reported that with this new plan, there would be a reduction in retiree costs by $884,000 and City costs by $51 1,000, in large part due to the diligent work of the health care consultants. Human Resources Manage Lozano stated that the new plan is called Exclusive Care Select. The Insurance Committee met today and last week, and agreed with the recommendation, with stipulations. Tom Morrison with Segal Company provided background on the Riverside County plan. It was designed by Riverside County staff exclusively for its retirees and for any public entity that wished to enter into a joint powers agreement with them. Riverside County has staff solely dedicated to the administration and management of the plan, including open enrollrnent. The Blue Shield Network is used, and it provides coverage in all 50 states and all territories. A handout was distributed to the Committee that provided cost comparisons between the existing City plan and the Riverside County plan. Mr. Morrison summarized the information. The stipulations of the Insurance Committee are: • To review a proposed contract that Riverside County is currently negotiating; • To identify hospitals in Kern County; and • Address the loss of dental insurance. Retirees can choose an HMO or PPO p�an, or to go outside of the network, with no difference in premium. The plan provides no dental ins�rance. The consultant and City staff are looking for options. The Committee unanimously agreed to forward this plan to the City Council for approval. S:\Council Committees\2009�Personnel\September\September 2 ASR.Docx Page 2 J WS:aI B. Committee Discussion and Recommendation reaardina the Anthem Blue Cross PPO Surplus - Tandv City Manager Tandy reported that $2.2 million will be held in reserve to protect against future rate increases. The Insurance Committee discussed the foliowing options for the $1.3 million in surplus funds: • Reimburse 20% to the employees by reducing contribution rates until that 20% is depleted, and the City would get the other 80%; • Put it in a retiree medical liability trust account, where the majority of the City's contributions been deferred because of the drop in the economy; or • Transfer it to an account to protect against HMO plan increases. The Insurance Committee recommended putting it in a retiree medical liability trust account. The Committee unanimous agreed to support the Insurance Committee's position and forward the item to the City Council for approval. 5. COMMITTEE COMMENTS Committee member Scrivner thanked the Segal Company for work they are doing, and thanked the Insurance Committee for their recommendations. Committee Chair Weir aiso thanked the Segal Company for the high standard of work they are doing. b. ADJOURNMENT The meeting was adjourned at 1 1:39:57 AM S:\Council Committees\2009\Personnel\September\September 2 ASR.Docx Page 3 JWS:aI