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.Cfty OF SAN BERNARD1HO -
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From: councilma~i~.!hk Reill~ 1.S
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Dept: Council of~~i\)"
Dau: November 14, 1988
REQUEST FOR COUNCIL ACT_ON
SU~Kt: Personnel Committee Report
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Synopsis of Previous Council action:
Recommended motion:
That minutes of Personnel Committee meeting held November 10,
1988 be received and filed.
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Signaf~
Phil Arvizo
Contact person:
Supporting data attached: Yes
Phone:
384-5208
Ward:
N/A
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Nous:
75-0262
Agenda Item No
-3
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PERSONNEL COMMITTEE
November 10, 1988
ATTENDEES:
Councilman Jack Reilly - Chairman
Councilman Tom Minor
Councilwoman Valerie Pope-Ludlam
Acting City Administrator - Jim Robbins
Sr. Asst. City Attorney - Dennis Barlow
Deputy City Attorney - Diane Roth
Parks, Recreation & Community Services
Director - Annie Ramos
Parks, Recreation & community Services
Admin. Operations Supervisor - Tom Boggs
Personnel Director - Gordon Johnson
Water Department Director: Administration
& Finance - Bernard Kersey
Finance Director - Andrew Green
Chief Examiner - Roger DeFratis
Personnel Analyst - Doug Chandler
Council Executive Assistant - Phil Arvizo
Mayor's Executive Assistant - Richard Bennecke
1. REQUEST TO FILL VACANCY - DEPUTY CITY ATTORNEY II -
Item continued at the request of the City Attorney represen-
tative.
2. EMPLOYEE MEDICAL INSURANCE PROGRAM EVAWATION - The
Committee recommended acceptance of PERS coverage for city
employees after a briefing by Mr. Johnson. The Committee
requested a comprehensive matrix be brought to the full
Council at the meeting of November 21. (Brief evaluation
attached) .
3. FULL TIME CLERICAL POSITION FOR SENIOR COMPANION
PROGRAM/RETIRED SENIOR VOWNTEER PROGRAM - PARKS, RECREATION
AND COMMUNITY SERVICES DEPARTMENT - The Committee recommended
approval. (Supporting information attached.)
..
4. DISCUSSION OF EMPLOYMENT CONTRACTS - The Committee
recommended continuation to special meeting at 10:00 a.m.,
~ovember 17 in Council Conference Room. Mr. Johnson will
provide the pros and cons of employment contracts. The
Committee will have time to review the proposed policy
presented by the Acting City Administrator.
Meeting adjourned.
R~~fully submitted,
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~cilman aC~ReillY
, Chairman ,
Personnel C~ittee
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Attch.
C I T Y 0 F ~ A N B ERN A ~ DIN 0
INTEROFFICE MEMORANDUM
8811-2705
TO:
Council Personnel Committee
FROM:
~~}IJ
Gordon R. Johnson, Director of Personnel /U~
Employee Medical Insurance Program Evaluatio
SUBJECT:
DATE:
November 8, 1988
~
COPIES:
City employees eligible to participate in health insurance
programs choose between two options: Kaiser and a self-
insured fee-for-service plan where John Hancock processes the
claims. The 1988 rates for these two plans are very similar,
however, we are facing an average increase of 46% in the John
Hancock rates for 1989, much higher than the 10% increase
Kaiser has quoted us.
The major reasons for the large increase in the self-insured
plan, according to Mike Baker of the Wyatt Company, our
insurance consultant, include:
o Claims and expenses for 1988 projected to exceed
funding by 25%
o Medical utilization increased by 31% over 1987
o Annual medical care inflation increased to over 20%;
a trend rate of 14% was assumed in performing last year's
projection for active medical claims
o 1988 PCS drug claims costs are up 45% over last
year's projection
o The experience of retirees, who make up 1/3 of the
plan enrollees, is 2-3 times worse than for active employees.
Mike Baker recommended several medical and PCS plan design
changes including:
o Increasing medical plan deductible and the annual
out-of-pocket limit
o Changing the PPO medical providers' reimbursement
percentage back to 90% from 100%
o Increasing the PCS deductible from $2 to $5 per
prescription.
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INTEROFFICE MEMORANDUM: 8811-2705
Employee Medical Insurance Program Evaluation
November 8, 1988
Page 2
In addition, he recommended that the current practice of
active Hancock program participants subsidizing the retirees'
rates by themselves be expanded to include the over 500
active Kaiser enrollees. This plan would have led to rate
increases of around 30-35% for everyone, both Kaiser and
Hancock enrollees.
These suggestions and many more were discussed at several
meetings of the Insurance Committee, composed of representa-
tives of the various employee bargaining units and interested
management employees. After lengthy discussion and analysis,
the majority of the Committee recommended going to the PERS
health plans and dropping the self-insured indemnity plan for
health insurance. Attached is a booklet describing the PERS
plans for the current year.
The PERS health plans are administered by the same Board of
Administration which manages the PERS retirement system. The
Public Employees' Medical and Hospital Care Act was enacted
in 1962 to provide medical insurance for active and retired
employees of the state of California. In 1967, the act was
amended to permit cities and other public agencies to parti-
cipate as well. As of July 1, 1986, all contracting agencies
may elect to contract for participation of all the agency's
members, or to contract for the members of one or more
individual employee organizations.
The types of health plans offered include a statewide
indemnity plan, numerous HMOs (ie: Kaiser, Health Net, Cigna,
and Partners), and two Preferred Provider Organizations
(PPOs). Participating cities include Lorna Linda, Rialto,
Pomona, Garden Grove, Burbank, Torrance, Carson, Barstow,
Pasadena, and Upland, as well as Cal state San Bernardino.
There are currently 276,000 households representing active
and retired public agency employees who participate in a PERS
health plan.
The City is required by law to contribute at least $16 a
month for each program participant, be they active or re-
tired. The City currently contributes $17.74 per month for
each of the 1030 participants in the Hancock plan, including
343 retirees. In addition, the City had to subsidize this
self-insured plan by $200,000 during the past year.
The City is required to contribute an administrative fee
which by statute cannot exceed 2% of the total monthly
premium to PERS to cover the cost of providing the program to
the City. The rate for the current contract year is 0.5%.
If we were to transfer to the PERS plans, there would be no
need for the City to maintain the risk it now has being self
INTEROFFICE MEMORANDUM: 8811-2705
Employee Medical Insurance Program Evaluation
November 8, 1988
Page 3
insured for health insurance since PERS would assume all the
risk and fund all their costs from the premiums assessed. The
PERS plan rates are lower than those we can obtain by our-
selves.
Don Harrington, manager of the San Bernardino PERS office,
has met with me and my staff and with the Insurance Committee
to discuss implementation of their plans. Since the increases
for the self-insured and Kaiser plans are scheduled to take
effect January 1, 1989, it is in the city's best interest to
proceed to change to the PERS plans as rapidly as possible.
We propose the following timetable for implementation:
January 1 - Police, Fire and Management since we are current-
ly in negotiations with all three groups.
February 1 AFSCME and Mid-Management since they have
existing MOUs which will require amending.
The Water Department is interested in switching over effec-
tive January 1 as well. The Redevelopment Agency's employees
currently are only eligible to participate in the Hancock
plan. The Community Development Commission would need to
consider adopting a resolution permitting their employees'
participation in the PERS plans as well or make some other
arrangements for them to have medical insurance coverage.
If you concur with my recommendation, I would like the full
Council to consider adopting resolutions (one per bargaining
unit) at their November 21, 1988, meeting, implementing the
program.
C I T Y 0 F 3 A N B ERN A A DIN 0
INTEROFFICE MEMORANDUM
8811-903
TO:
James E. Robbins, Acting City Administrator
FROM:
Fred A. Wilson, Assistant to the City Administrator
S~BJECT: Full-Time Clerical Position for SCP/RSVP
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DATE: November 8, 1988
COPIES:
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Annie Ramos indicated that the request to hire a full-time
Typist Clerk I would not impact the General Fund, as the
position would be fully funded through the Federal Action
Grant Program. She also stated that the position will not
result in an increase to the number of authorized positions
in the Park, Recreation and Community Services Department, as
the position will terminate at the time the federal funding
is no longer available.
The total annual fringe benefit cost for the position is
~~jimatelY $3,500.00.
~ILSON
Assistant to the City Administrator
FAW/dm
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CITY OF SAN BE: .NARDINO
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MEMORANOUrv.
To Jim Robbins, Acting City Administrator
Subject FULL TIME CLERICAL POSITION FOR SCP/RSVP
From Annie F. Ramos, Director
Parks, Recreation and
Date Conrnu n i ty Serv ices
October 14, 1988
Approvec
Date
~~is is a request for authorization to hire a full time Typist Clerk I to work with
the Senior Companion Program (SCP) and the Retired Senior Volunteer Program (RSVP).
7his position would not be an increase in Department manpower positions, but would
be only for the two (2) federally funded ACTION programs.
Sackground
Curing the past two and one-half years, the Senior Companion Program (SCP) has had a
;art-time clerical worker furnished through the Office on Aging Senior Employment
=rogram. While this has been a welcome help, it has only provided for minimal
clerical support.
7here has also been and continues to be assistance from the department administratipn
staff, but this has also become a very limited clerical assistance effort because of
the growing administration tasks throughout the department as the number of recreation
and community service activities have increased.
:n addition, the SCP has recently received a grant for providing companions to
individuals who have Alzheimer's and related disorders, and a new program has also
been funded to provide companions to assist homebound veterans through our local
~eterans Hospital, a program which will eventually include volunteers through the
::SVP.
~ll this has increased the clerical requirements of the two program Coordinators,
particularly in the SCP area. The numerous reports, time sheets, requests for
payments, client records, companion folders, training sessions and information,
increased phone inquiries and a myriad of tasks that are necessary to keep all
information and activities up-to-date, have required the Coordinator in both
programs to spend an inordinate amount of time in the office when they should be
in the field monitoring and promoting their programs.
The SCP Coordinator has funding to provide 16 more volunteers, raising the total
volunteer force for the programs to 68. These volunteers will provide more than
5000 hours of service to fellow senior citizens during a months time. All this
requires much record keeping and other related clerical tasks.
The RSVP Coordinator has approximately 350 registered volunteers working at more
than 60 work stations. This program has provided approximately 65-70 thousand
hours of volunteer work throughout our area. The value of this volunteer service
to our community is approaching the $300,000 level and is expected to grow as our
coordinator is able to get out into the field and promote the program.
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The two programs together, when figured at the minimum wage, are providing
more than $600,000 worth of annual volunteer service to our community. At
the same time, the goals and objectives of ACTION, which are to provide a
challenging and fuWilling life for our seniors, are being met because more
than 400 senior volunteers are serving in meaningful situations with other
seniors and in the community at large.
Recommendation
It is recommended by staff and by the ACTION representatives who monitor our
programs, that clerical assistance in the form of a dedicated full time
position be authorized for these vital ACTION programs. This provision of
a clerk will allow the Coordinators to spend more time at their primary
tasks, which are: to monitor work stations, volunteer performance and needs
and to promote the programs in order to involve more and more seniors and to
promote volunteerism as a way to assist in all segments of our society.
The Budgets for these programs are:
SCP $247,867
RSVP 70,924
Total $318,791
In addition, the SCP has received a Grant of $50,260 for a 24 month program
to provide volunteers to assist patients with Alzheimer's and related disorders.
Of this Budget, the City provides in kind services for space and administrative
assistance and a cash contribution of $35,889. Some of the expenses such as
recognition programs for the volunteers, meals at the work sites, some
transportation costs and a variety of other program related expenses are paid
for by fund raising efforts on the part of the Coordinators and by contributions
and unsolicited gifts from those who have benefitted from the programs.
The expanded efforts at promoting the program which will be made asa result of
hiring a full time clerical position, will also increase the amount of funding
from private sources in the form of gifts. Because of this, the amount of
funding increase from City General fund will be minimal and the initial
pOSition cost for the remainder of the fiscal year may be absorbed in the
current budget. It is anticipated that this position could come on board
around January or February 1989 when the current Senior Employment Program
assistance ends.
The pOSition requested is a Typist Clerk I which has a beginning salary of
$6.83 per hour plus approximately $1.70 per hour in Fringe benefits for a
total cost of $17,763, which will be shared by both the SCP and RSVP budgets.
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It is recommended that this request to hire a full time Typist Clerk I
for work with the Senior Companion and Retired Senior Volunteer Program
be approved and that the recruiting and hiring processes be authorized
to get underway as soon as possible so that there will be no delay in
meeting the administrative needs of the two programs.
Your consideration of this request is appreciated.
~l.~
ANNIE F. RAMOS, DIRECTOR
Parks, Recreation and
Community Services
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