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HomeMy WebLinkAbout04/30/2012 Agenda Summary Report________________________________________________________________ S:\Council Committees\2012\Personnel\April\April 30 Agenda Summary Report.docx Page 1 ST:al B A K E R S F I E L D City Council members: Steven Teglia Ken Weir, Chair Staff: Steven Teglia David Couch Assistant to the City Manager Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Friday, April 30, 2012 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:00 p.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember David Couch Councilmember Harold Hanson City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Rhonda Smiley, Assistant to the City Manager/PIO Chris Huot, Administrative Analyst – City Manager’s Office Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Retired employees/BCARE: Fred Baugher and Bill Descary Others present: Johnny Wu and Tom Morrison – Segal Company Chuck Waide, SEIU Members of the media 2. ADOPTION OF SEPTEMBER 30, 2011 AGENDA SUMMARY REPORT Adopted as submitted ________________________________________________________________ S:\Council Committees\2012\Personnel\April\April 30 Agenda Summary Report.docx Page 2 ST:al 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS Assistant to the City Manager Teglia reported that all items on the agenda were discussed by the Insurance Committee on March 14, 2012. The Insurance Committee concurred with staff’s recommendation on all of the items. A. Update regarding Request for Information (RFI) Process Human Resources Manager Tenter explained that this item is being heard by the Personnel Committee in response to a request from the City Council to look at options to resolve a dispute that arose in late 2011 between Anthem and GemCare, after which Anthem eliminated GemCare from their HMO provider network. Staff will initiate a Request for Information (RFI) to all medical insurance providers that service Kern County to determine which may be interested in participating in a Request for Proposal (RFP) process. The RFI process is estimated to take two to three weeks. Interested parties will be asked if they can offer similar plans to those that currently exist for City employees and retirees, for a list of their network medical providers, and if they can be competitive with their costs. During the open enrollment process in late 2011, approximately 70 employees made plan changes, either by changing from an HMO to PPO plan, changing physicians, or discontinuing City coverage altogether because they were covered under another plan. It is unknown if the changes were made based on the decision of Anthem to cease affiliations with GemCare. Mr. Teglia stated that employees did not seem troubled about the loss of GemCare, once they learned of it from either Human Resources staff or Union leadership. The Insurance Committee members were also unconcerned. Chuck Waide, SEIU, confirmed that any questions raised were answered to the satisfaction of the Union membership. He thanked the City for their efforts. Committee member Couch asked if two weeks would allow enough time for interested parties to respond to the RFI. Mr. Teglia responded that it is a very streamlined and simple process. Mr. Morrison said that the RFI would be sent to all competitors of Anthem. Once the process reaches the Request for Proposal (RFP) stage, then all those who responded to the RFI, any other firm that provides insurance in Kern County, any ________________________________________________________________ S:\Council Committees\2012\Personnel\April\April 30 Agenda Summary Report.docx Page 3 ST:al firm that had contacted Human Resources staff with interest, plus Anthem, will receive the RFP. It will be released publically, so any firm will be able to submit a proposal. Committee member Couch requested that staff keep the Committee informed as the process progresses, and to include the information in the General Information memorandum so that the remainder of the City Council can be kept informed. B. Update regarding Response Actions to Panama Buena Vista Medical Expense Reimbursement Plan (MERP) Human Resources Manager Tenter reported that last year, staff became aware of negotiations that were taking place between teachers and the Panama Buena Vista School District regarding health coverage. The District is proposing to implement a policy whereby teachers who were covered by their spouse’s or partner’s insurance would be required to elect the alternative coverage, and then be included in a Medical Expense Reimbursement Plan (MERP), whereby they would be reimbursed for certain expenses to help offset costs. Staff proposes to continue to offer City employees healthcare, regardless if they are eligible for coverage under another plan. However, eligibility language would be modified to state that if an employee is enrolled in a MERP, then he or she would not be eligible for City coverage. As this is not a contractual matter, Council approval is not needed. No City employee, nor their dependent, would lose their coverage. No school employee would lose their coverage, either. The District has indicated that if the City moves forward with this policy, they would recognize it; and those employees who might have lost their coverage to a MERP, would be considered ineligible for the MERP. Committee member Hanson asked if this action could save money. Mr. Teglia said that if this action is not taken, there could be an added cost as some school employees would be required to enroll in City coverage. The Insurance Committee and Union membership support staff’s recommendation. In response to a question from Committee Chair Weir, Ms. Tenter reported that the current policy for married couple where one works for a school and one for the City is that they can choose to have coverage through the City, through the school, or both. ________________________________________________________________ S:\Council Committees\2012\Personnel\April\April 30 Agenda Summary Report.docx Page 4 ST:al Mr. Weir asked if the employee has dual coverage, would the City’s costs be less, and Mr. Morrison responded that there is only a benefit when the City is in the secondary position. C. Discussion and Recommendation regarding Segal Contract Extension Assistant to the City Manager Teglia reported that in 2008, the City entered into a four-year agreement with Segal Company for a scope of work related to health care benefits. Services include consulting, cost management, health benefit renewal management, vendor marketing management, and compliance management. The fourth year of the agreement expires in June, 2012. Since 2008, Segal Company has established an excellent working relationship with staff, the Personnel Committee, City Council, and the Insurance Committee. Mr. Teglia then gave an overview of a memorandum previously distributed to the Committee that noted the company’s accomplishments. Included was their role in advising City staff on methods to reduce the unfunded retiree healthcare liability. Staff recommends entering into a second four-year agreement, and the Insurance Committee supports staff’s recommendation. Committee member Hanson acknowledged that the Segal Company has done a good job. Committee member Couch asked that the Segal Company find additional ways to reduce the unfunded liability further. The Committee unanimously approved entering into a second four-year agreement with the Segal Company. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting was adjourned at 12:37 p.m.