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HomeMy WebLinkAboutAGENDA REPORT 1987 1216 CC REG ITEM 11LJOHN GALLOWAY Mayor ELOISE BROWN Mayor Pro Tern CLINT HARPER, Ph.D. Councilmember JOHN PATRICK LANE Council member MAUREEN W. WALL City Clerk THOMAS P. GENOVESE City Treasurer TO: FROM: DATE: SUBJECT: MOORPARK M E M O R A N D U M The Honorable City Council Maureen W. Wall, City Clerkf/;v December 10, 1987 ITEM //,LI STEVEN KUENY City Manager CHERYL J. KANE City Attorney PATRICK RICHARDS, A.I.C.P Director of Community Development A.DENNIS DELZEIT City Engineer ,JOHN V GILLESPIE Chief of Police Consideration of the Health Benefit Plan for City Personnel The written material for this item was not available at the time the packet was published. It will be transmitted for your review as soon as possible. 799 Moorpark Avenue Moorpark, California 93021 (805)529-6864 //.LI MOORPARK 3.-'8 4.;).... -=================================== STEVEN KUENY JOHN GALLOWAY Mayor ELOISE BROWN Mayor Pro Tern CLINT HARPER, Ph.D. City Manager CHERYLJ.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Councilmember JOHN PATRICK LANE Councilmember MAUREEN W. WALL City Clerk Director of Community Development R. DENNIS DELZEil City Engineer THOMAS P. GENOVESE City Treasurer JOHN V. GILLESPIE Chief of Police M E M O R A N D U M TO: The Honorable City Council FROM: DATE : Thomas P. Genovese, Deputy City Manag~~ ) December 16, 1987 SUBJECT: Health Benefit Plan As the City Council is aware, the calendar year of 1987 is the first year the City of Moorpark utilized its own contract with providers for its Health Benefit Plan. Prior to this, the City contracted with the City of Simi Valley for Health Benefit coverage. During the review of the alternative plans available for the calendar year 1987, the City Council selected the Blue Cross Prudent Buyer Plus and various components as addressed in the attached Staff Report dated December 22, 1986. The rates for the existing contract for the Health Benefits Plan were effective for a 12 month period and such contract is in need of renewal. The City has been working with the City's broker to obtain new quotes for the upcoming year. Although the broker contacted over 14 agencies, during this quote process the City has been able to obtain only two quotes. Additionally, the City contacted the Moorpark Unified School District to investigate the possibility of an insurance program through their Joint Power Agreement (JPA) and has been informed that this option is not available due to the arrangement of their JPA. The two quotes received are from Blue Shield and the current provider, Blue Cross. The rate increase for the current provider is 10.6% on the Health and Dental components. Additionally, the Vision component, currently provided by Blue Shield, has a rate increase of 10.6%. All other components of the Health Plan will maintain the current rates in effect. The quote for Blue Shield would entail a rate increase of 18.7% to 33.9% depending on the number of dependants covered. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 After receipt of the above-mentioned quotes, the City has proceeded with the "meet and confer" process with the employees, pursuant to the Memorandum of Understanding with the Public Employees Association of Ventura County. The employees have unanimously reconmended the continuance of the current Health Benefit Plan. The City Staff is requesting authorization from the City Council to continue with the current Health Benefit program. In su11111ary, the current plan will have an approximate rate increase of 10% with all components included. The rate increase of 10% is under the projected rate increase that was formulated and included in the budget. Therefore, authorization to continue with the current plan will not require any additional appropriation of funds. It is important to note that the rates currently quoted are effective for only a six month period and, therefore, it may be necessary for this subject to be addressed again during the budgetary process. Reco11111endation: Authorize Staff to proceed with the current Health Benefit Plan. I. MOORPARK THOMAS C. FERGUSON Mayor STEVEN KUENY City Manager CHERYLJ.KANE DANNY A. WOOLARD Mayor Pro Tern ELOISE BROWN Councilmember JOHN GALLOWAY Councilmember CUNT HARPER Council member THOMAS P. GENOVESE City Treasurer TO: FROM: DATE: Honorable City Council Thomas P. Genovese, Administrative Assistan~\~/ December 22, 1986 SUBJECT: Health Insurance Plan City Attorney PATRICK J. RICHARDS A.I.C.P. Director of Community Development R. DENNIS DELZEil City Engineer JOHN V. GILLESPIE Chief of Police As the City Council is aware, the City of Moorpark has been utilizing the Employee Medical Plan of the City of Simi Valley since the incorporation of the City of Moorpark. This option of insuring through the City of Simi Valley will no longer be available as of January 1, 1987. Due to this fact, City staff has investigated the alternatives available for the City's own Health Insurance plan. The City staff has met with the Budget and Finance Committee to discuss the acquisition of a City Health Plan. Health Plans discussed at the Committee level were: Health: Dental: (1) Blue Cross Prudent Buyer Plus= $2345.17 (2) Blue Cross California Care= $2002.13 (1) Blue Cross Standard Dental Care= $489.50 (2) Blue Cross Dental Net= $250 Dependent Life: (1) Blue Cross Plan I: ($1.00 per employee) Spouse 1500.00; Children over 6 months 1500.00; Infants 100.00 (2) Blue Cross Plan II: ($3.00 per employee) Spouse 5000.00; Children over 6 months 5000.00; Infants 500.00 Vision: Medical Eye Services (Blue Shield) Employee= $4.70 Employee & One Dependent= $9.55 Employee & Family= $12.20 Long-Term Disability: Reliance Standard Life Insurance Company (All Employees) Group= $150.00 Approx. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 The Honorable City Council December 22, 1986 page 2 Prescription Drug Card: Leland Wolf Plan (All Employees) Employee= $10.92 Employee & Dependents= $29.88 Also discussed was the acquisition of additional life insurance above the 15K level (as included in the health plans) for the Management Employees. The Committee raised several questions of staff at this meeting. Listed below are the questions and responses by staff: 1. Is this plan Foundation Administered? Staff has been able to get the Health Plan administered through the Ventura Foundation. This will increase the number of providers for the 80/20 plan. 2. Can we utilize the school district plan? At this time, it is unknown if this will be a possibility. City staff will continue to investigate the feasibility of this alternative. 3. What is the cancellation notice time of this policy? The cancellation notice time of the policy is 30 days. City staff has completed an analysis sheet for the City Council's review. Enclosed are exhibits that indicated the costs of the prior health plan, the costs of the proposed health plan, and the change in cost for each category. Exhibit A explains the General Unit & Supervisory/Professional Unit, which includes the following • personnel classifications: Administrative Secretary Account Clerk Code Enforcement Officer Administrative Clerk Clerk Typist/Receptionist Facilities Coordinator Maintenance Worker Associate Planner* Recreation Coordinator Senior Planner Exhibit B explains the Management Unit which includes the following personnel classifications: City Manager Director of Community Development Administrative Assistant City Clerk The Honorable City Council December 22, 1986 page 3 Also attached to each Exhibit is the proposed change in benefits for the Unit under each category of the plan. In summary, the proposed plan by the city staff is the Blue Cross Prudent Buyer Plus, Blue Cross Standard Dental Plan, Plan I Dependent Life (Blue Cross), Medical Eye Services (Blue Shield), Long Term Disability -All Employees (Reliance Standard Life Insurance, Co.), Prescription Drug Card (Leland Wolf Plan). City staff has deve- loped a projected cost analysis for the proposed plan (Exhibit C) and estimates that no additional appropriation is necessary for the purchase of the said Health Plan. Entire Plan is rated guar- anteed for one year. RECOMMENDATION: Direct staff to proceed with the purchase of the Health Plan as proposed by City staff. TPG/hdm Exhibits *Formerly in Management Unit GENERAL UNIT PLAN PRIOR PROPOSED CHANGE --- -Medical - Employee Only $ 88.62 $ 91.00 + $ 2.38 Employee + 1 175.63 182.00 + Employee + 2 279.78 228.32 - or more -Dental - Employee Only 27.91 19.49 Employee + 1 N/A 33.98 + Employee + 2 N/A 49.10 + or more -Vision - Employee Only 4.30 4.70 + Employee + 1 N/A 9.55 + Empl:o\Yee-· +.2 N/A 12.20 + or more -Life - Employee 2.00 4.05/8.40 + Dependents .50 1.00 + -LTD - Employee N/A 8.50 (Estimated average) -Prescription- Drug Card Employee N/A 10. 92 1- Prior: Medical -Blue Cross (General), Dental -Pacific Mutual Vision -Medical Eye Services 6.37 51.46 8.42 11.07 21.19 • .40 5.25 7.90 4.22 .50 10.92 (Actual increase over 27.91) (Actual increase over 27.91) (Actual increase over $4.30) (Actual increase over 4.30) (Actual average increase) Proposed: Medical -Blue Cross Prudent Buyer Plus, Dental -Blue Cross Prudent Buyer Plus, Vision -Medical Eye Services EXHIBIT "A" PROJECTED HEALTH PLAN EXPENDITURES PROJECTED BUDGET DEPARTMENT ACCOUNT EXPENDITURE AMOUNT +/- City Manager 112 4,589 5,140 -551 City Clerk 113 2,080 2,460 -380 Finance 116 2,912 3,960 -1,048 Administrative Services 117 5,637 7,816 -2,179 Planning 131 10,953 14,970 -4,017 Community Services 134 1, 330_ 4,000 -2,670 Public Works Streets 142 2,061 2,976 -915 Landscape Maintenance 143 566 792 -266 Parks Maintenance 147 2,017 2,142 125 Recreation 148 5,329 5,310 + 19 Community Center 149 1,656 2,376 -720 -$12,852.00 EXHIBIT "C" MEDICAL PLAN The proposed Medical Plan for the General & Supervisory/Professional Unit is an 80/20 Plan comparable to the plan utilized by this unit in the past. DENTAL PLAN The proposed Dental Plan for this unit is an 80/20 Plan with depe- dent coverage. This plan is expected to be of greater value than the plan previously utilized by this unit (the prior plan was a fee schedule basis plan which incorporated a low fee schedule). Additionally, dependent coverage was not offered in the previous Dental Plan for this Unit. VISION The proposed Vision Plan is the same as the previous plan; however, this proposal allows for dependent coverage for this Unit which previously was not offered. LIFE The proposed Life Plan increases coverage for each employee in this Unit from $6,000 to $15,000. DEPENDENT The proposed Dependent Life Plan increases coverage from $1,000 to $1,500 for primary dependent. LONG TERM DISABILITY The proposed Long Term Disability Plan was not offered to this Unit previously, but must be retained to offer such a plan to the Management Unit due to the size of the Moorpark City Staff (15 authorized positions). PRESCRIPTION DRUG CARD The proposed Prescription Drug Card was not offered to this Unit previously, but must be retained to offer such a plan to the Management Unit due to the size of the Moorpark City Staff (15 authorized positions). City will offer for employee coverage only. MEDICAL PLAN The proposed Medical Plan for the Management Unit is an 80/20 Plan. It is less beneficial than the plan previously offered to this unit. The previous plan utilized by this unit is no longer available. DENTAL PLAN The proposed Dental Plan for this unit is an 80/20 Plan with dependent coverage. This plan is expected to be of approximately equal value when compared to the previous plan. VISION Theproposed Vision Plan is the same as the previous plan. It offers dependent coverage, as was offered previously. LIFE The proposed Life Plan increases coverage for each employee in this Unit as follows: City Manager $50,000 to $100,000 Director of Community Development $33,000 to $50,000 Administrative Assistant $33,000 to $50,000 City Clerk $10,000 to $50,000 DEPENDENT The proposed Dependent Life Plan increases coverage from $1,000 to $1,500 for primary dependent. LONG TERM DISABILITY The proposed Long Term Disability Plan is the same as the previous plan. PRESCRIPTION DRUG CARD The proposed Prescription Drug Card Plan is the same as the previous plan. PLAN -Medical - Employee Only Employee+ 1 Employee+ 2 or more -Dental - Employee Only Employee+ 1 Employee+ 2 or more -Vision - Employee Only Employee+ 1 Employee+ 2 or more -Life - Employee Dependent -LTD - Employee -Prescription- Drug Card Employee Employee & Dependents PRIOR $ 95.37 187.05 291. 66 43.95 43.95 43.95 8.70 8.70 8.70 MANAGEMENT UNIT PROPOSED $ 91.00 182.00 228.32 19.49 38.98 49.10 4.70 9.55 12.20 11.22 (Estimated average) .so 1.00 CHANGE - $ 4.37 5.05 63.34 24.46 4.97 + 5.15 + + + 4.00 . 85 3.50 .so 30.00 (Estmd. Avg.) 30.00 (Estmd. Avg.) -0- Part of Mgt. Health Part of Mgt. Health 10.92 29.88 + 10.92 + 29.88 Prior: Medical -Blue Cross (Mgmt.), Dental -Principal Mutual Vision -Medical Eye Services (Mgmt.) Proposed: Medical -Blue Cross Prudent Buyer Plus, Dental -Blue Cross Prudent Buyer Plus, Vision -Medical Eye Services (Mgmt.) Additional Life Insurance (Above $15,000 Level) AMOUNT $100,000 50,000 50,000 50,000 50,000 POSITION City Manager Director of Community Development Adm. Asst./Community Services Adm. Asst./Administrative Servs. City Clerk Coverage is provided by Transamerica. EXHIBIT "B" COST $ 13.33 9.83 11.50 8.12 8. 12