REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
March 10, 2020
FROM
GARY McBRIDE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Side Letter Agreement with Teamsters Local 1932 and Business Associate Agreement with Zenith American Solutions, Inc.
End
RECOMMENDATION(S)
Recommendation
1. Approve the proposed Side Letter Agreement between the County of San Bernardino and Teamsters Local 1932 representing the employees in the Administrative Services Unit; Clerical Unit; Craft, Labor, & Trades Unit; Management Unit; Nurses Supervisory and Management Unit; Supervisory Unit; and Technical and Inspection Unit.
2. Approve the business associate agreement between the County of San Bernardino and Zenith American Solutions, Inc. for the purposes of exchanging certain protected health information for employees who chose Teamsters-sponsored health plans.
(Presenter: Bob Windle, County Labor Relations Chief, 387-3101)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain and Grow Jobs and Economic Value in the County.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The County will transfer to the healthcare trust (Trust) from the County’s Dental Preferred Provider Organization (DPPO) dental reserve account funds up to the amount of $3,635,775 ($297.45 per participant) upon receiving confirmed DPPO open enrollment results from the Trust for the 2020/2021 benefit plan year. The County will also transfer to the Trust from the County’s medical and dental performance guarantee reserve account funds up to the amount of $450,000 based on the tiered plan enrollment table specified in the side letter upon received confirmed enrollment (per tier) from the Trust for the 2020/2021 benefit plan year.
The Trust will transfer to the County funds for initial and ongoing administrative costs incurred by the County for work performed in support of the Trust. The initial cost of $79,000 is expected to be transferred from the Trust to the County in July of 2020. The ongoing cost will vary and is based on the tiered plan enrollment table specified in the side letter, which will be deducted from the transfer of premiums on a bi-weekly basis.
BACKGROUND INFORMATION
On September 10, 2019 (Item No. 27), the Board of Supervisors approved a successor Memorandum of Understanding (MOU) between the County of San Bernardino (County) and Teamsters Local 1932 (Teamsters) for employees in the Administrative Services Unit; Clerical Unit; Craft, Labor, & Trades Unit; Management Unit; Nurses Supervisory and Management Unit; Supervisory Unit; and Technical and Inspection Unit. As part of those negotiations the parties agreed that upon the establishment of certain agreed-to parameters, Teamsters Local 1932 members will have the option to select the County-sponsored health plans or the Teamsters-sponsored health plans that are offered through a Teamsters healthcare trust.
Over the last several months, the County and Teamsters have met and conferred on those parameters. As a result of that meet and confer process, the parties reached an agreement on a proposed Side Letter establishing the terms and conditions of the Teamsters healthcare trust. The proposed Side Letter includes such things as establishment of administrative fees that Teamsters shall pay to the County for certain trust-related start-up costs and ongoing administration, joint periodic reviews of the trust administration, the option for the County to perform trust audits, eligibility requirements for employees to participate in the trust, and an agreement that the County shall make a one-time transfer of certain funds to the Trust on a pro rata basis. If approved by the Board, the parties anticipate that Teamsters Local 1932 members will have the option to select the Teamsters-sponsored health plans starting Benefit Plan Year 2020/2021. Recommendation No. 2 approves the business associate agreement between the County and Zenith American Solutions, Inc. (ZAS). ZAS is a third party administrator for the Teamsters healthcare trust to administer the healthcare trust’s benefit plans that will be offered to Teamsters Local 1932 members. The agreement allows for the exchange of certain protected health information in accordance with applicable law (e.g., Health Information Patient Protection Act). The County will exchange with ZAS eligibility and contribution files containing information for plan members in accordance with the side letter agreement and business associate agreement.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Cynthia O’Neill, Supervising Deputy County Counsel, 387-5455) on February 25, 2020; Labor Relations (Bob Windle, County Labor Relations Chief, 387-3101) on February 24, 2020; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on March 3, 2020; County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on March 3, 2020.