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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1993-03-23 - Adjourned Regular Meeting1 03/23/93 City Council, Adjourned Regular Meeting City Hall Conference Room A 760 Parkview Avenue Redding, California March 23, 1993 6:00 p.m. The meeting was called to order by Mayor Moss with the following Council Members present: Anderson, Arness, Dahl, Kehoe and Moss. Also present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Electric Utility Operations Manager Ryan, Personnel Director Bristow, Airports Director Ruff, Public Information Officer Bachman, City Clerk Strohmayer, and Secretary to the City Council Rudolph. The City's Contract Negotiator Ron Reynolds was also in attendance. PUBLIC COMMENT (B-080-100) Ginnie Mistal, Chair of the City's Airports Commission, commented that there have been rumors circulating regarding the status of City commissions and the possibility of eliminating certain commissions or reducing the number of members. She explained that the Airports Commission is concerned about this and wanted to convey to Council the Commission's importance. She stated that the Commission's membership represents a good cross section of the community and thereby provides for well-informed recommendations. Airports Commissioner Dick Gulack noted that some of the concern stems from an article in the newspaper approximately a year ago which indicated that Council would re-evaluate the Airports Commission in approximately a year. City Attorney Hays advised that Council is precluded from discussing an item under the public comment section of the agenda. He added that there is a bill currently pending, which if passed, would expand Council's ability during public comment. At the present time, however, Council may only ask a question which is for informational purposes. Ms. Mistal noted the importance of seeing Council representation at the commission meetings, thereby acknowledging the Commission's value. Mayor Moss stated that he would be making an appointment to the Airports Commission at the Council meeting of April 6, 1993, which will afford further discussion on the matter. RESOLUTION - re Preferred Provider Organization (P-100-150-030) Council Member Anderson abstained from discussion and voting on this matter. Personnel Director Bristow reviewed the Report to City Council dated March 18, 1993, incorporated herein by reference. He noted that the City has been able to achieve substantial health care discounts at the two major health care providers through the "OUCH Program." In the 1991-92 plan year, savings of $322,448.00 were recognized. The OUCH/Affordable Hospital Network Organization (OUCH) charges the City one-third of the savings generated by OUCH, thereby eliminating up-front charges. Staff is of the opinion that more savings can be accomplished in this area by controlling health care costs to a larger degree, while at the same time maintaining the quality of health care for City employees. Mr. Bristow explained that the City's broker consultant, Charles Bertolina, has received specific proposals from the two major health care providers in the area. Mr. Bertolina provided a report for Council's consideration dated March 16, 1993, incorporated herein by reference, which was divided into four areas: 1) Current cost containment strategy with OUCH discounts showing the specific savings achieved; 2) Entering into direct negotiations with the two health care providers for what is termed "non-exclusive" contracts. Anticipated savings over and above the OUCH discounts are $21,841 from Mercy Hospital and $79,269.00 for Redding Medical Center.; 3) Entering into a "quasi exclusive" arrangement with one of the two health care providers. Anticipated savings over and above the OUCH discounts are $65,186.00 from Mercy Hospital and $79,269.00 from Redding Medical Center; and 4) Pooling health care plan with other major employers in the area in order to obtain more leverage in the health insurance market. 2 03/23/93 It was noted that pursuing the "quasi exclusive" option would necessitate meeting and conferring with the City's recognized bargaining units since the City would be proposing to modify the current design of the health plan. Some of the current labor contracts contain language authorizing the City to enter into a Preferred Provider Organization which creates financial incentives but does not reduce any current benefit, nor impose a penalty for employees using a non-preferred provider organization facility. It is the recommendation of staff that Council authorize staff to pursue the greatest cost savings in negotiating a "quasi exclusive" arrangement with one of the two health care providers in the area. In addition, it is recommended that staff be authorized to continue informal discussions with Shasta County and other major employers, but that no formal relationships be established until the precise nature of Federal health care reform is known. Charles Bertolina explained that there are methods of controlling the rising cost of health care. He summarized his letter dated March 16, 1993, which outlined the previously stated four options for Council's consideration. Mayor Moss noted that the prices between the two local providers for some services are substantially different. He asked whether it would be possible to reflect the actual costs of services. Mr. Bertolina replied that it would be possible to reflect the actual costs of services but that an integral part of the negotiation process would be to find a base point for various services. He indicated that a more efficient way would be to negotiate per diem charges thereby requiring both parties to agree on an increase, versus just raising the base rate when a percent is utilized. Council Member Kehoe inquired as to the timing difference between implementing the "non-exclusive" arrangement as opposed to the "quasi exclusive" arrangement. Mr. Bertolina indicated that the only real concern at this point in time is OUCH's response to removing two major providers from the network. These two providers represent a substantial amount of the compensation OUCH derives from the City. By removing these two providers, OUCH may decide to withdraw its contract with the City for all other providers. He estimated a "non- exclusive" arrangement would take approximately one to two months to finalize. Not being familiar with the City's negotiation process, he could not provide an estimated completion time for a "quasi exclusive" arrangement. In addition, he noted another organization he just became aware of which is similar to OUCH. He stated that while he has not had an opportunity to review the organization further, it appears it might be a possible alternative if OUCH decides to withdraw its entire City contract. Council Member Kehoe inquired if a "quasi exclusive" arrangement would require unanimity from all the bargaining units. City Manager Christofferson replied that the City is required to meet and confer in a good faith effort. As long as the employees receive the same benefits, Mayors Moss asked if the "quasi exclusive" arrangement could be pursued without having to bargain with the unions. Ron Reynolds, the City's contract negotiator, explained that the issue of medical benefits is a mandatory subject of bargaining. He cited an instance which occurred a few years ago in Oakland where a company's major medical provider was changed from a nationally-accepted insurance company to a plan which was only recognized in the State of California. All other aspects of coverage remained identical. The Appellate Court ruled that this was a mandatory subject of bargaining and that the change could not be made without union negotiation. City Attorney Hays indicated that the City does not have the right to unilaterally implement a benefit. If the City were to increase the medical benefits, it would still be required to go through the bargaining process. 3 03/23/93 Mayor Moss recommended that the City not get involved in having to negotiate the matter with the unions at the present time. MOTION: Made by Council Member Kehoe, seconded by Council Member Dahl, that Resolution No. 93-92 be adopted, a resolution of the City Council of the City of Redding giving staff direction relative to exploring cost savings to the City in its health care program, specifically the possibility of entering into "non-exclusive" contracts with the two major health care providers. Voting was as follows: Ayes: Council Members - Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Anderson Resolution No. 93-92 is on file in the office of the City Clerk. MOTION: Made by Council Member Kehoe, seconded by Council Member Dahl, to direct staff to seek, if necessary, a substitute for OUCH/Affordable Hospital Network Organization. Voting was as follows: Ayes: Council Members - Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Anderson RESOLUTION - re Support for White Paper on Forest Management (A-050-060) Council Member Kehoe abstained from discussion and voting on the matter. City Manager Christofferson related that a letter has been received from Mary Schroeder of Wheelabrator, acting as a steering committee member of the Shasta Alliance for Resources and the Environment (SHARE), calling to Council's attention the expected Forest Summit in Portland, Oregon on April 2, 1993, and requesting support for the white paper. Details of the Summit have not yet been publicized, and it is presently unclear what the invitational arrangements will be for the Summit. Mr. Christofferson explained that acting favorably on the resolution would at least offer support, as Council has frequently in the past, to the objectives of SHARE. Mayor Moss conveyed that it would not be feasible for someone to attend the Summit, as it would probably not be possible to secure an invitation. The resolution, if adopted, would be transmitted to Mary Schroeder for presentation to the appropriate officials. MOTION: Made by Council Member Dahl, seconded by Council Member Arness, that Resolution No. 93-93 be adopted, a resolution of the City Council of the City of Redding endorsing the White Paper entitled, "A Vision for Resource Management" which promotes sound natural resource management programs in the forests of the northwest. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Kehoe Resolution No. 93-93 is on file in the office of the City Clerk. CLOSED SESSION (P-100) Mayor Moss announced that pursuant to California Government Code Sections 54957.6(a) and (b), Council would adjourn to closed session to discuss personnel matters. At the hour of 6:43 p.m., the meeting was adjourned to closed session. At the hour of 7:50 p.m., the meeting was reconvened to regular session. ADJOURNMENT There being no further business, at the hour of 7:50 p.m., Mayor Moss declared the meeting adjourned. 4 03/23/93 APPROVED: _____________________________________ Mayor ATTEST: ___________________________________ City Clerk