HomeMy WebLinkAbout2008-10-13 - Personnel-Risk Management Committee Meeting Agenda Packet0 EYorba Linda
Water District
PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING
Monday, October 13, 2008, 4:00 p.m.
1717 E. Miraloma Avenue, Placentia, CA 92870 - Tel: (714) 701-3020
ITEMS DISTRIBUTED TO THE BOARD COMMITTEE LESS THAN 72 HOURS PRIOR
TO MEETING
Pursuant to Government Code section 54957.5, non-exempt public records that relate to open session agenda items and
are distributed to the Board Committee less than seventy-two (72) hours prior to the meeting will be available for public
inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during
regular business hours. When practical, these public records will also be made available on the District's internet
website accessible at htto://www.vlwdna vlwd.com.
AGENDA
COMMITTEE: STAFF:
Director Ric Collett Michael A. Payne, General Manager
Director John W. Summerfield, Alternate Gina Knight, HR Manager
• INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Any individual wishing to address the committee is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for their
comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are
limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to
five minutes.
ACTION ITEMS:
This portion of the agenda is for items where staff presentations and committee discussions are needed prior to
formal committee actions.
None.
DISCUSSION ITEMS:
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or
similar items for which staff is seeking the advice and counsel of the Committee Members. This portion of
the agenda may also include items for information only.
2. ACWA/Health Benefits Authority (HBA) 2009 Health Plan Rating Restructure
3. Status of Recruitments.
is 4. Status of CalPACS 2008 Salary Survey.
5. Status of Personnel on Administrative Leave.
6. Status of Risk Management Activities.
•
ADJOURNMENT:
The next meeting of the Personnel-Risk Management Committee meeting is scheduled
for November 10, 2008 at 4:00 p.m.
Accommodations for the Disabled:
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning Michael A. Payne, District Secretary, at (714)701-3020 or
writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the nature
of the disability and the type of accommodation requested. A telephone number or other contact information should
be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-related
accommodation should make the request with adequate time before the meeting for the District to provide the
requested accommodation.
•
is
2
ITEM NO.
•
Date:
To: ACWA/Health Benefits Authority (HBA) Members
RE: 2009 Health Plan Rating Restructure
Dear Member,
ACWA HBA continually strives to provide health insurance coverage that is fair, equitable and
financially beneficial to all participating employers. As health care costs continue to escalate,
ACWA HBA has been examining ways to minimize future premium increases. After review of
the current health plan rating structure, it became clear that a change in the rating structure was
necessary.
Beginning January 1, 2009, the current rating structure of Core rates and 5 additional rating
options will be condensed into two rates; Standard and Incentive. All employers participating in
the health plans will automatically be enrolled in the Standard Rate. The premium differential
between the Standard and Incentive rates will be 3%. All participating employers will be
encouraged to apply for the Incentive Rates. Any Application/Affidavit's received prior to
October 31, 2008 will be reviewed and if approved, the Incentive rates will appear on the January
1, 2009 monthly billing statement.
is Enclosed is a Frequently Asked Questions insert that provides further details regarding the Rating
Restructure as well the qualifications for the Incentive Rates. Also, enclosed is the
Application/Affidavit that must be completed and returned to the ACWA Benefits Department.
Due to the expected number Application/Affidavit's that will be received, it is imperative that the
Application be completed in it's entirety with any requested documentation attached.
Although we are sensitive to the fact that the 2009 health plan rates and/or premium increases are
not yet available, we feel it is important to provide the opportunity for those employers who feel
they will qualify for the Incentive Rates the ability to apply and subsequently receive a 3%
reduction from the Standard Rates beginning January 1, 2009. It is anticipated that the 2009
renewal packet with rate information will be mailed during the week of October 6, 2008.
In an effort to address all questions and concerns, HBA will be holding a Conference Call on
Thursday, October 09, 2008 at 10:00 a.m. Interested parties should send an email to
cvnthiaha,acwa.corn to receive the call in information and materials. The Conference Call will
not permit for interactive questions. Please email any questions to cvnthiahna,acwa.com prior
to October, 06, 2008 to insure that they are addressed in the conference call.
Please review the documentation provided and should you have any questions, please contact,
ACWA Benefits Department, 1-800-736-2292.
0
_r
ACWA Health Benefits Authority
Health Plan Rating Restructure
Frequently Asked Questions
Page I
•
Q #1: What is the current Rate Structure on the health plans?
A: The rates for the Anthem Blue Cross health plans are composed of Core rates and 5 additional Option
rates (over 25 rating combinations). The Core rate was established to provide employers whose policies
did not create Adverse Selection with lower premiums than those employers whose policies did create
Adverse Selection. Each of the Health Plan Options contained a surcharge for the associated risk
pertaining to a policy established regarding employer contribution or enrollment. Unfortunately, this
structure created administrative complexity for both employers and ACWA as well as a "Don't ask
don't tell" mentality. Ultimately this Rating Structure failed to achieve the intended goal.
Q #2: What is the "New" Rating Structure?
A: The Core rates and additional 5 Option rates will be condensed into 2 rates; Standard and Incentive.
Employers are encouraged to apply for the Incentive rates which premiums will be 3% less than
the Standard Rate premiums. Employer practices and policies will be used as criterion for lower
rates. The new Rating Structure will be simpler and will allocate risk better than the current
structure.
Q#3: What are the criteria to be eligible for the Incentive Rate?
A: Employers wishing to apply for the Incentive Rate must meet all of the following criteria:
• • Only ACWA Health Plans are offered.
• District contributes 100% of the employee only premium and at least 50% of the dependent
premium.
• All active employees are enrolled in one of the district sponsored ACWA health plans.
• "Cash-in-Lieu" of health plan enrollment is not permitted.
• Employer can not have any policy/anion contract in place that creates adverse selection.
• Retiree Policies:
• Early retiree population (under age 65) is than 20% of total enrollment.
• Medicare eligible retirees are required to enroll in Medicare Parts A&B.
• Employer contributes 100% of the retiree only premium.
Q#4: How were the qualifications for the Incentive Rate established?
A: The qualifications are based on employer policies / practices that create little or no risk to the
pool thus not creating an Adverse Selection situation. Employers that currently structure or implement
policies / practices around the above-stated criteria assist the pool in maintaining viability and financial
integrity.
Q#5: What is the intended goal of the Rate Restructure?
A: The overall goal is allocate risk appropriately. The lower the risk, the less financial impact the
employer should absorb. Proper risk allocation will improve the long term viability of the ACWA
health plans.
•
ACWA Health Benefits Authority
Health Plan Rating Restructure
Frequently Asked Questions
Page 2
•
Q#6: What is the rating differential between the Standard and Incentive Rates and how was that
differential established?
A: The rate differential will begin with a 3% spread between the Standard Rate and the Incentive Rate.
This premium differential will be reviewed by the ACWA Insurance and Personnel Committee (I&P)
and the trustees of the Health Benefits Authority (HBA) and may adjusted on an annual basis. The
I & P Committee as well as the HBA Trustees felt it was imperative to give employers ample time to
apply and/or modify policies in order to access the Incentive Rate before implementing a larger spread
than 3%.
Q#7: What is Adverse Selection?
A: Adverse Selection is the process in which one insurance pool is comprised of healthy people
while another insurance pool retains the unhealthy people. This process can lead to escalating
premiums in the pool that contains a disproportionate number of unhealthy people.
Q#S: How can an employer apply for the Incentive Rate?
A: Employers will need to complete an Application/Affidavit and submit any required documentation
to the ACWA Benefits Department. All applications will reviewed within 30 days after receipt.
• Q#9: When is the deadline for applications to be received in order for the Incentive Rates to begin?
January 1, 2009?
A: All applications received prior to October 31, 2008 will be reviewed and if approved, Incentive
Rates would be reflected on the January billing statement.
Q#10: Can we submit an Application/Affidavit for enrollment into the Incentive Rate after October 3151'
A: Yes, applications/affidavits may be submitted at any time. All applications will be reviewed within
30 days. Once approved, the Incentive Rates would be instituted the first of the month following the
next billing cycle.
Q#I1: What if the employer does not complete the Application/Affidavit?
A: All employers participating in the ACWA HBA Health plans will automatically be enrolled
in the Standard Rate if an application/affidavit is not received. ACWA HBA will assume that the
employer policies / practices do not meet the Incentive Rate qualifications.
0
INCENTIVE:RATEAPPLICATION/AFFIDAVIT, .
•
•
Ernployer..lnformation (Pleaseaype or'print clearly)
District Name:
Address: Number, street, city, zip
Contact Name/Title:
Phone Number:
Email Address:
Fax Number:
I
Do you offer any Health Insurance Carriers outside of the ACWA HBA plans? OYes []No
Will the employer be contributing 100% of the employee only premium and at least
50% of the dependent premium? OYes ONo
Will all eligible active employees be enrolled in one of the ACWA HBA Health Plans? OYes ONo
Do employees have the option of receiving "Cash-In-Lieu" of Health Plan Enrollment? OYes ONo
Do you have any policies/union contracts in place regarding Health Insurance? OYes ONo
If yes, please attach a copy of the policy/contract to this application.
Do you offer employer sponsored Retiree Health Coverage? OYes ONo
If yes, please complete the following:
• Is your early Retiree population (retirees under age 65) less than 20% of total enrollment? OYes []No
• Do you require Medicare eligible Retirees enroll in Medicare parts A & B? OYes ONo
• Is 100% of the retiree only monthly premium paid by the employer? OYes ONo
I represent that statements contained herein, including those made in response to the questions above and
any attachments, are true and complete, to the best of my knowledge and belief, and 1 understand that
they form the basis for approval into the reduced Incentive Rating structure. I understand that any
misstatements or failure to report information that is material to approval into the Incentive Rate structure may
be used as a basis for rescission of the lower rating structure. I agree that in the event that a rescission occurs,
the rates will be adjusted to the higher Standard Rating Structure the 1st of month following the rescission.
Authorized Signature Printed Name
Title Date
0
~J
.7
Incentive Rating Affidavit Approval Calendar
If a completed Affidavit and required documentation is received in the ACWA
Benefits Department before the date indicated in Column A, and subsequently
approved for the Incentive Rate, the rates will be adjusted and reflected on the
monthly billing statement beginning on the date referenced in Column B.
Column A Column B
Received Prior to: Rates Effective:
October 31, 2008
January 1, 2009
November 30, 2008
February 1, 2009
December 31, 2008
March 1, 2009
January 31, 2009
April 1, 2009
February 28, 2009
May 1, 2009
March 31, 2009
June 1, 2009
April 30, 2009
July 1, 2009
May 31, 2009
August 1, 2009
June 30, 2009
September 1, 2009
July 31, 2009
October 1, 2009
August 31, 2009
November 1, 2009
September 30, 2009
December 1, 2009
October 31, 2009
January 1, 2010
0
As of Uctober 9, 2008
Authorized Positions
Salary
Range
Position Classification
0 1
(Temporary Help)
12
13
14
15
(Customer Service Representative 1
16
I Meter Reader 1
17
Accounting Assistant I
Customer Service Representative II
Engineering Secretary
Maintenance Worker I
Mechanic I
(Operations Secretary
18 Meter Reader II
19 Customer Service Representative I II
Storekeeper
20 Engineering Technician I
Maintenance Distribution Operator II
Water Quality Technician I
1 Accounting Assistant II
Facilities Maintenance
Mechanic II
22 Information Systems Technician
Water Quality Technician II
23 Executive Secretary
Maintenance Distribution Operat
Meter Services Representative
1 Mechanic I I I
Personnel Technician
Plant Operator II
24 1Construction Inspector
Engineering Tech II
GIS Technician
Information Systems Technician
II/Programmer
I
or III
AUhNUA I I tM NU.__.;;l
Auth Emp
0 0
1
2
1
1
1
1
2
1
1
1
8
Start
Status/Comments Date
8
Conducting background checks on top two
candidates.
1 1
1
1 1
1
2
2
Under filled with (1) Meter Reader I
position.
12 1
2
I
111
1
1 I
0
0
8
6
Under filled with (3) Maintenance Worker I
positions.
0 I
0
2 1
1
(Recruitment on hold.
111
1
1 I
101
0
1 I
1 1 1
1
1
1 I
1
(Under filled with (1) WQT I.
1 1
1
151
4
1 I
111
1
1 I
111
1
1 I
111
1
1
Additional operator position will be
assessed by the GM after the
4
3
Instrumentation Technician is filled.
1 1 1
1
1 1
1 3 1
3
1 I
1 1 1
1
1 I
1
1
0
1
Salary
Range (Position Classification
Assistant Administrator I
26
27
28
29
30
31
a
34
Human Resources Analyst
Instrumentation Technician
Sr. Accountant
GIS Administrator
Project Engineer
Sr. Construction Inspector
Sr. Fleet Mechanic
Authorized Positions
Auth I Emp I Status
1 I 0 On hold per General Manager.
1 1
1 ~ 1
1 11
1 I 0 IOn hold per IT Director.
2 12
1 11
1 11
Sr. Maintenance Distribution Operator 1 4 I 4
Sr. Plant Operator
(Customer Service Supervisor
(Management Analyst
Water Quality Engineer
Safety & Training Officer
Sr. Project Engineer
Water Maintenance Superintendent
~SCADA Administrator
Information Systems Administrator
(Chief Plant Operator
Sr. Project Manager
35 1
36 I Human Resources Manager
37 Engineering Manager
Finance Director
Information Technology Director
Operations Manager
38 1
39 1
40 (Assistant General Manager
1General Manager
Total
1 I 1
1 11
1 11
1 1 1 1
1 0 JOn hold per HR Manager.
1 1 0 IFilled with Consultant.
1 ~ 1 1
1 11 I
1 ~ 1 1
1 I 1 I
Recruitment opened 09/05/08 and closes
1 0 10/17/08.
1 1 1 1
1 I 0 I
1111
1 1 1 1
1 I 1 I
1 1 1 1 (Open until filled, first review 10/21/08.
1 1 1 1 1
84 73
Start
Date
0