METRO BOARD OF DIRECTORS

PEOPLE WORKING COMMITTEE MEETING

JUNE 17 2014

12:00 PM

ACTION

1. Authorization for the President & CEO to enter into a contract with Delta Dental to provide dental coverage under METRO’s fully insured plan for the FY2015 and FY2016. K. Kauffman

BRIEFING ITEMS

2. HR- Monthly Report K. Kauffman

3. American Diabetes Association EXPO K. Kauffman

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01.1

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01.1

Dental Insurance Contract

Presented to the METRO Board People Committee by

Karen Kauffman

Vice President Human Resources

• METRO currently provides dental coverage to its:

• Full time active employees

• Retirees (generally not eligible for Medicare)

• Retirees participating in the Kelsey Advantage program

• METRO’s dental coverage provides employees and eligible dependents with two optional forms of coverage:

• DPO

• DHMO

• METRO’s current contract to provide this coverage is with Delta Dental and is scheduled to expire after completing its two year term on September 30, 2014. This contract is a fully insured product.

• As METRO’s benefits consultant/broker, Mercer, in anticipation of the expiration of the current contract, conducted an RFP for a successor dental insurance contract.

• METRO’s goal was to obtain a contract that was cost neutral and identical or as close to its current plan design with as little disruption as possible.

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Contract Bids

While the number of dental insurance carriers offering such coverage is limited in number, the following companies were invited to bid:

• Delta Dental

• Assurant

• Guardian

• Humana

• MetLife

• United Concordia

• United Healthcare

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Contract Bids (cont’d.)

Mercer invited the three lowest bidders to re-evaluate their original bids, and provided the opportunity to submit best and final offers:

• Delta Dental • MetLife • United Healthcare

Factors considered for bid evaluations included:

• Cost • Rate guarantees • Performance guarantees/”skin in the game” • Geo-access • Potential disruptions in service • Alternative designs presented included some modest changes

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Recommendation Based upon the final bids and previously mentioned considerations, it is recommended that:

• A two year contract be awarded to the incumbent carrier, Delta Dental

• A modification in the maximum annual benefit from $2,000 to $1,500

• The two year contract be awarded in an amount not greater than $1,439,960 for FY2015 and FY2016

• The People Committee recommend to the Board that it authorizes the President and CEO to enter into this two year contract

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2014 METRO Dental RFP Results

Best and Final Offer - Delta Dental

RatesDelta Dental

Current

Delta Dental

Proposed $ Change % Change

Employee only $32.39 $32.07 ($0.32) -1.0%

Employee plus one $55.06 $54.51 ($0.55) -1.0%

Employee plus two or more $84.22 $83.38 ($0.84) -1.0%

Employee only $8.80 $8.71 ($0.09) -1.0%

Employee plus one $14.52 $14.37 ($0.15) -1.0%

Employee plus two or more $21.50 $21.29 ($0.21) -1.0%

Total 2-Year Cost

Current Proposed $ Change % Change

Current cost $1,454,443

Proposed cost with current enrollment 1,269 EE $1,439,960 ($14,484) -1.0%

Dental PPO

DHMO

Total Dental Cost

5/30/2014

BOARD BRIEFING SUMMARY

SUBJECT: AGENDA ITEM #:

AGENDA DATE:

DEPARTMENT: PRESENTER:

SUMMARY:

HR - MONTHLY REPORT

PEOPLE KAREN KAUFFMAN

Human Resources Metrics June 2014

Presented to the METRO Board People Committee by Karen Kauffman

Vice President Human Resources

WORKFORCE REPORT – MAY 2014 Total Emps PSA Sal LOA

Hourly LOA Sal Hires Hourly

Hires

PSA Hires Salaried

Terms

Hourly

Terms

%

Turn

Over

3574 11 21 59 3 13 1 9 18 0.76%

Non Exempt Exempt

Operators Maintenance

FT Hr PT Hr PT Hr

Ret

FT Hr PT Hr Ret PSA FT

Hrly

PT Hr

Non-Ex

FT Salaried FT Salaried Total

Emps

1383 164 17 765 6 11 105 472 651 3574

3446

3466 3460 3471 3489 3501

3543 3556 3576

3598 3589 3590

3574

3350

3400

3450

3500

3550

3600

3650

May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

HC

2

WORKFORCE CHART COMPARISON May 2013 TO May 2014

Date LOA Hires Turnover

May-13 89 36 34

Jun-13 94 54 34

Jul-13 96 30 36

Aug-13 89 55 44

Sep-13 96 47 29

Oct-13 87 40 28

Nov-13 74 57 15

Dec-13 76 29 16

Jan-14 57 54 34

Feb-14 64 56 34

Mar-14 64 27 36

Apr-14 70 42 41

May-14 80 17 27

0

20

40

60

80

100

120

LOA

Hires

Turnover

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Workforce Chart Comparison METRO Employees on Leave – May 2014

Total 80

Salaried (21)

Non-Salaried (59)

Leave categories:

FMLA - Family/Medical Leave

MLA - Leave of Absence Medical

LTD - Long Term Disability

ML - Military Leave

PL- Personal Leave

STD - Short Term Disability

SUS - Suspension

WC - Workers Compensation

FMLA MLA LTD ML PL STD SUS WC

0 1

6

0 1

12

0 1

FMLA MLA LTD ML PL STD SUS WC

14

22

0 0 0 0 0

23

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Disciplinary Action Reports (DAR ‘s) and Grievances March – May 2013/2014

DAR’s

Month 2013 2014

March 270 165

April 264 150

May 238 168

TOTAL 772 483

Grievances

Month 2013 2014

March 88 14

April 181 13

May 112 9

TOTAL 381 36

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BOARD BRIEFING SUMMARY

SUBJECT: AGENDA ITEM #:

AGENDA DATE:

DEPARTMENT: PRESENTER:

SUMMARY:

American Diabetes Association EXPO

Human Resources Karen Kauffman

The American Diabetes Association (ADA) EXPO is a showcase event in which businesses, health care providers, patients,caregivers and community members that specialize in diabetes management and prevention come together to provideinformation and resources for those who need it most. These events have been held throughout the country for almost two (2)decades.

As part of its commitment to educating employees and the community about diabetes, METRO is partnering with the HoustonOffice of the ADA to promote its EXPO on Saturday, July 26 at Reliant Center. We will promote this event as a wellness activityand will offer wellness points to METRO employees who participate. In addition, we will place promotional materials on thebusses, trains, rail platforms, the RideStore, Park and Ride locations and Transit Centers.

Human Resources American Diabetes Association EXPO

June 2014

PEOPLE COMMITTEE

Internal and External Promotion Marketing Proposal

American Diabetes Association EXPO

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• Diabetes is one of the most common health issues

experienced by employees at METRO.

• As part of METRO’s wellness program, METRO is

partnering with the American Diabetes Association to

promote the ADA 2014 Houston EXPO on July 26th.

• The market value of this promotion is $250,000, using

METRO real estate only. The cost to METRO will be

$11,690.

Introduction

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• Educate employees and customers about the causes and possible long term effects diabetes can have on the quality of a person’s life

• Encourage employee-specific participation to build awareness of diabetes by offering wellness points for attendance

Objectives

• Create a successful marketing campaign to encourage attendance by employees, current METRO riders and their families

Strategy

• Personal stories of individuals successfully living with diabetes

Key Messages

4

Costs

Items Market Value Cost

Email blasts to employees - -

11” X 17” break room poster

- -

22” X 28” lobby poster - -

30” X 40” METRO RideStore kiosk

- -

4” X 9” system wide flier $35,000.00 $1,840.00

950 system wide bus card $33,534.00 $8,312.00

33” X 44” park & ride and transit center kiosk

$35,200.00 $798.00

Rail station glass posters $146,800.00 $740.00

TOTAL $250,534.00 $11,690.00

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Marketing Samples

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