Loading...
HomeMy WebLinkAbout09/30/2011�� � � � � City Council m�mbers: Ken Weir, Chair Staff: Ste n Teglia David Couch /�ssistant to the City Manager Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Friday, September 30, 2011 9:00 a.m, City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 9;00 a.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair - Absent Councilmember David Couch Counciimember Harold Hanson City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Rhonda Smiley, Assistant to the City ManagerlPiO Chris Huot, Administrative Analyst -City Manager's Office Nelson Smith, Finance Director Josh Rudnick, D�puty City Attorney Christi Tenter, Human Resaurces Mar�ager Ginger Rubin, �enefits Technician Lyle Martin, Assistant Chief - Police Department John Patterson, Maintenance Craftworker-Fire Dept/SEIU Retired employeeslBCARE; Others present: Brian Eidenshine, Gene Bogart, Fred Baugher, Robert Ennis, and Bill Descary Johnny Wu and Tom Morrison - Segal Company Chuck Waide, SEIU Members of the media S:\Council Committees\�011 \Personnel\September\September 30 /�genda Summary Report.Docx Page 1 ST:aI 2. ADOPTION OF AUGUST 16, 2011 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Discussion and Committee Recommendation recaardina 2012 Healthcare Renewal Rates City Manager Tandy expressed his appreciation to staff, the Insurance Committee, and Segal Company for the cooperative efforts. Assistant to the City Manager Teglia provided a brief review. At the last Personnel Committee meeting, there were three issues on which the Insurance Committee had not yet reached a decis�on: 1) an increase in the payment structure for a three-month supply of prescription medications from one co-pay to two; 2) the introduction of a high-deductible insurance plan that could be utilized by either active employees or retirees; and 3) allocate surplus monies from the Anthem Rate Stabilization Fund to the irrevocable trust to make payments to unfunded liability, The Insurance Committee subsequently approved all proposals. He reported that these actions wiil help reduce the unfunded liability from an estimated $18.4 million to $19,1 million, which is approximately 20%. He expressed his appreciation to the Insurance Committee for their due diligence. Chuck Waide with SEIU asked how much the City had been in arrears and how much would be in the irrevocable trust by the end of this year. City Manager Tandy reported that the situation has improved from an outstanding balance of $9.6 million during the recession period to $1,4 million currently. Contained within the current City budget is the full amount that should be paid this year, and the intent is to continue paying the full amount in future years, barring any further raids on City finances by the State. According to Finance Director Smith, there is currently $20 million in the trust. Tom Morrison of Segal Company noted that once the City Council approves the actions, the firm will begin valuation for the fiscal year ending June 30, 2011, and it will result in a reduction of the liability, which will be reflected in this year's CAFR to the liability. S:\Council Committees\2011 \Personnel\September\September 30 Agenda Summary Report,Docx Page 2 ST:aI Mr. Waide stated that he warks with multiple agencies throughout the State, and he believes that the City of Bakersfield is way ahead in this effort. He commended staff for their efforts, Committee member Couch asked staff to prepare a memorandum that details the history of the unfunded liability, and what actions were taken to reduce it over time. The Committee unanimously approved, with Committee Chair Weir absent, a motion to forward the recommendations to the City Council 5. NEW BUSINESS 6. COMMITfEE COMMENTS Committee member Hanson thanked the Police and Fire Departments, SEIU, management and retirees for their efforts in reaching a cooperative conclusion in a professional manner, 7. ADJOURNMENT The meeting was adjourned at 9;13 a.m. S:\Council Committees�2011 \PersonneitSeptember�September 30 Agenda Summary Report.Docx Page 3 ST:aI