1965-05-11 Special CC MinutesSPECIAL MEETING OF THE COUNCIL OF THE CITY OF ALAMEDA
HELD TUESDAY EVENING MAY 11, 1965
Before the meeting convened, Mayor Godfrey stated that, upon authorization of the Council, he
had attended the conference in Washington, D. C., at the invitation of Vice President Hubert H.
Humphrey. This embraced the Mayors of the /Wedium-size" cities in the United States. Mayor Godfrey
gave a brief oral report and announced that he would submit a written report thereon for the informa-
tion of the Councilmen. He thanked the Council for having instructed him to attend this very worth-
while conference which had been most educational for him.
The special meeting convened at 7:40 o'clock p.m. with President Godfrey presiding.
ROLL CALL:
The roll was called and Councilmen Bartley, La Croix, Jr., McCall, Rose and President Godfrey,
(5), were noted present. Absent: None.
NEW BUSINESS:
1. Receipt of the Notice and Agenda of the special meeting had been acknowledged by the Councilmen
and was on file. The purpose of said meeting was for a discussion of City participation in a hospi-
talization insurance program and to take action on the matter if so desired.
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2. President Godfrey referred to the memorandum from the City Manager, dated April 27, 1905, sum-
marizing the results of many months of study, work and effort by Personnel Director Forrest V. Routt,
Jr., the City Manager and a private consultant, covering the several types of group health insurance
programs.
He stated that, evidently, the City employees were completely satisfied with the present two plans,
"Kaiser" and au6 "Blua Cross". He expressed his opinion, however, that better insurance plans per
dollar coverage could be obtained.
The President also pointed out that specifications for the City employees health plan had been sent
to nineteen companies who had well-known health and accident plans and bids had been received from
four companies. They were the New York Life Insurance, the Aetna Insurance Company, the California
Physicians and Surgeons and the Blue Cross. Be explained that the Kaiser Plan could not meet the
specifications and, therefore, did not come in as a bid but there was a separate letter written indi-
cating what its coverage and costs would be, and it was accompanied by its pamphlet.
He pointed up there were not more bids presented because insurance companies generally were not
interested in "dual-choice' pIaoa'`,
Upon request, Mr. Routt reviewed the history of the Kaiser Plan and how it originated with the City.
Mr. Cunningham supplemented his remarks with the information that in 1947, Resolution No. 3515 had
been adopted by the City Council, which authorized the application for the Blue Cross Plan and the
payroll deduction for the employees' premium payments.
Councilman Rose commented on another type of health and welfare plan with which he was affiliated
and familiar - provided by the New York Life Insurance Company. He said he would agree that the
dual choice of the City employees should be continued if only because the employees desired these
two existing plmna. Be emphasized, however, that he felt the employees should realize they were not
getting the best coverage through these particular plans.
Councilman McCall raised the question as to why all of the groups in the various public agencies pre-
sently having health plans - for example, the City, the County and the Alameda Unified School District,
could not join together and thus procure one health plan at a lower cost. It was pointed out this
was not possible for the common insurance carriers, under State statute.
Mr. Routt also explained that the group under the local School District, which could join with a
statewide organization - the California Teachers Association - would not accept the City employees.
He remarked, further, that each City had its own individual plan with its slightly different benefits.
Be agreed, however, this idea might be worth exploring in the future to ascertain if it would be pos-
sible to develop a plan which would broaden the insurance base. The big problem would be to get all
of the cities to agree on any one plan of group health insurance.
Mr^ Weller added that there was some consideration being given to legislation in Sacramento which | |
would add to the State Employees Retirement System a certain hospitalization and medical program. '
He, personally, felt this was wrong - but admitted there was oome,proopect of its materializing. Be
pointed up the fact that the consolidation into the larger coverage groups was not necessarily the
best thing for all concerned, due to respective good or bad experience.
Many facets of health insurance plans were discussed and compared with the City's existing program.
It was developed that there were approximately one hundred employees who did not ,belong to either Blue
Cross or Kaiser under the City group plan and Councilman McCall inquired what their remuneration would
be, instead of the benefit of having the City pay whatever amount toward this insurance was to be
determined upon by the Council. ---
In response to this thought, the belief was expressed that the City was offering financial assistance
only toward procuring adequate health iuouranoe. The benefit was available to all employees if they
wished to take advantage of the opportunity.
Mr. Clifford Dutrow, Lieutenant in the Alameda Fire Department, commented that most of the employees
not presently members of the existing plans were covered through their spouses' insurance programs.
He also expressed his opinion that the City was making this offer of payment on a health insurance
plan and it was up to the employees to avail themselves of the option for this purpose,
Mr. Robert Traynor, representative of the Blue Cross, addressed the Council in clarification of certain
questions which had been brought up, and which were raised during further consideration.
Following further discussion of other phases of the subject, Councilman La Croix moved the Council
approve the dual-choice health insurance program which embraced the plans of Blue Cross and Kaiser.
The motion was seconded by Councilman McCall and carried on the following roll call vote. Ayes: Five.
Noes: None. Absent: None.
It was suggested that this program be closely watched through the City Manager's office and the Council
would be informed of any proposed increases which would work adversely against the City and the Council
would, in the future, have the right to discuss the situation with the employees in the event any
changes were to be recommended. Further, it was felt the Personnel Director, too, would work very
closely with these two organizations, especially on the premium anniversary date, and the Council would
be kept advised.
Mr. Weller stated he, personally; would like to have it put somewhat more forcefully than that. He
said he also served in a policy-making capacity on the Public Utilities Board and he had made very much
the same speech to the Board four or five years ago, on which occasion the Board went along with the
idea of paying a portion of the premium. The Board took what he thought was a fairly straightforward
position on it - that it was going to pay a certain amount of money and it was not going to modify it
and a lot of other things it was not going to do -- each of which it had subsequently done. Mr. Weller
stated he thought it ought to be made as clear as possible that he felt very distinctly that the dual-
choice
plan was not as good as a single plan. He thought there were very sound technical reasons for
feeling this way about it. He gauged that most of the members of the Council felt the same way about
it. It ought to be made perfectly clear this action was being taken solely at the option of the City
Council and the City Council clearly retained the right to change its mind. He thought there was
reason for concern that the dual-choice program was not going to work out effectively and if it did
not, he thought it ought to be solemnly on the record so there could be no misunderstanding in the
future that the Council reserved the right to go to a single plan if, in its own judgment, this would
be the best thing for the City and for the employees.
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The opinion was also expressed that the Council would not have voted for the "dual-plan" if it had not
been that the City employees had asked for this type of program.
It was requested that if, at any time in the future, the Council were to consider making a change to
a single plan of health insurance, the employees' groups be informed as early as possible so they could
be brought into the discussion of the subject.
This was felt to be entirely proper and, further, the City Manager was asked to send out a memorandum
to all employees setting forth exactly what action had been taken at this meeting and what the thinking
of the City Council was in this matter.
Councilman Rose then moved the City Council authorize the contribution of a maximum of eight dollars
per employee for his group health plan with benefits equal to or better than the present coverage. The
motion was seconded by Councilman La Croix.
Speaking on the question, there was some discussion on the question of how the cost of this program
would affect the tax rate for next fiscal year. No definite answer could be given at this time. There
was also some clarification by Mr. Routt on certain details concerning benefits which might be nego-
tiated between the companies.
Mr. Weller suggested the Council establish a target date for its formal action, and prior to that time,
the Staff would submit a resume of the coverage, the cost involved and a base of comparison between the
existing and proposed benefits. He thought the Council could thus be advised of all facts and if it
were necessary to make adjustments, he would assume that representatives of both carriers would be pre-
sent at the proper time.
After further deliberation on this point, Councilman Rose amended his motion to include the date of
July 1, 1965, or as soon thereafter as practicable, for action on this matter by the Council. The
second was agreeable to the amendment. The question was then put and the motion, as amended, carried
on the following roll call vote. Ayes: Five. Noes: None. Absent: None.
President Godfrey expressed appreciation to Mr. Routt, Personnel Director, for his work in this study
and presentation and, further, for his untiring efforts on behalf of the employees of the City of
Alameda. He also thanked the City employees in attendance for their interest.
3.' President Godfrey also announced that The Reverend Father Aloys G. Selhorst of St. Barnabas Church
was leaving the City of Alameda. A reception was being given Father Selhorst by his parishioners this
evening to extend their good wishes and farewells. President Godfrey stated Father Selhorst had been
a great asset to the City during his nine years of service here. He had been not only an excellent
spiritual leader but had taken active interest in many civic affairs. He suggested the members of the
City Council pay a courtesy call at the reception following this meeting in order to extend felicita-
tions to Father Selhorst.
ADJOURNMENT:
4. There being no further business to come before the meeting, the Council adjourned.
Respe tfully subm te
City ' le