Draft Minutes

Wednesday, September 8, 2004

10:00 am – 12:00 noon

Fairbanks location: Butrovich Building

1. Call to order and roll call

Current Members

Lisa Sporleder, President (p)

Juli Gillispie, Vice President (p)

Lori Merdes, Co-Secretary (e)

Betty Dupee, Co-Secretary (e)

Linda Harrigan (p)

Bess Rounds (a)

Michael Simmons (p)

John Mitchell (a)

Lisette Richmond (e)

Kenneth Coon (e)

Larry McGrady (p)

Jodi Bailey, alternate (p)

Alicia Wyse, alternate (p)

Others

Mike Humphrey, Director, Benefits

Jeannine Senechal, Director, Compensation

Hans Gunderson, Admin. Coordinator, System Governance

Pat Ivey, Executive Officer, System Governance

2. Adopt agenda

MOTION: passed

“The Statewide Administration Assembly moves to adopt the agenda as amended for the September 8, 2004 meeting. This action is effective September 8, 2004.”

3. Approve minutes of August 11, meeting

MOTION: passed

“The Statewide Administration Assembly moves to approve the minutes of the August 11, 2004 meeting. This motion is effective September 8, 2004.”

4. Public Comments

There were no public comments.

5. Staff Alliance Update - Sporleder

Jeannine Senechal presented the Compensation Task Force report to the Staff Alliance on September 7, 2004. The priority recommendation was an annual cost of living increase linked to the Consumer Price Index (CPI). It is likely that if the university administration implements this recommendation, the cost of living adjustment would be capped at 2 percent to prevent budgeting disasters in the event of runaway inflation. Every year the university would calculate the grid shift by the CPI.

Michael Simmons asked if the CPI has ever gone negative, and if these CPI matched increases would preclude any other form of grid increase?

Sporleder responded that she does not know if the CPI has ever gone negative and that yes, this is a replacement to the Board of Regent’s (BOR) grid increase but the annual cost of living adjustment should allow for a more regular and constant increase to the salary grid. The actual percentage of the cap has not yet been determined. Sporleder will continue to work with VP Jim Johnsen on the issue.

Sporleder reported that in conversations with Johnsen on the issue of training, they simultaneously came to the idea of implementing a peer mediation program where staff could informally resolve conflict between co-workers. Johnsen and Sporleder alsk talked about the need for supervisor training. There is some money earmarked in the FY06 operating budget for staff development, so such training is a possibility. Staff Alliance has responded favorably to the idea and will continue a discussion on the staff training and peer mediation with Johnsen. Johnsen brought up the Michigan State University model of peer mediation. See http://www.hr.msu.edu/hrsite/Complaints/.

Senechal also brought to the Staff Alliance meeting a revised probationary period document. Staff groups had requested a four-week notice before an employee can be terminated from a position. Human Resources has placed in the regulation language, which includes a period of notice at the discretion of the human resources director of up to a four-week notice.

Mike Humphrey presented an overview of a future wellness meeting.

The governance regulation has gone through a small set of changes and is to be sent out electronically to all governance groups. The largest change includes the re-establishment of a clause requiring administration to respond to governance actions within 45 days or explain why that deadline cannot be met.

6. Parking Services - Ed Foster

Ed Foster listened to SAA input regarding parking and the problems with being able to register vehicles during lunch. Foster explained that the parking services had just been moved over to his department, that both the office on campus and on Aurora Drive were supposed to be open during lunch and that he would check on it. He hopes to have an on-line order form for parking passes by the end of the year, and look into the redesign of the parking passes so that if someone needs a pass for a time period that spans more than one month, that can be done with one parking pass.

7. Butrovich building move update - Jodi Bailey

Jodi Bailey reported that the building move schedule has gone through several changes. Several problems have come up with cubicle parts and the coordination with the various contractors. The move is moving along as best as the department can manage. The posted schedule will continue to change and Bailey will continue to work with departments to keep them informed and prepared.

8. Compensation Task Force Recommendations

Sporleder said that even though the report has DRAFT written across it, it is the same report as the final report Jeannine Senechal gave Sporleder yesterday. On the last page of the report, there is a grid that shows the overall priorities and ranking. The majority of things identified are long-term items that will require discussion in the context of the overall benefits strategy and where the money will come from. Sporleder has already discussed the cost of living adjustment to the CPI in her chair’s report.

The number two priority issue, limiting employee health care deductions, is an ongoing issue. The HR benefits department monitors the health care costs constantly to make sure the employee health care costs are kept as low as possible. It’s part of the reason the UA Choice plan came into being and part of the reason the Wellness Task Force has come into being and is going to meet for the first time next week. It is why the university has a preferred provider network to keep costs down.

Regarding the number three issue, market comparisons for job families, as the job reclassification project moves along and comes closer to completion, market comparisons will continue. The university has already begun to participate in market studies for those job families that have already gone through reclassification. As more job families are reclassified, they will be added to the studies.

Regarding a squared salary grid and review of geographic differentials, the thought of the task force was that if the annual cost of living increase based on CPI were implemented, these two issues would be resolved.

Flexible schedules came in at number seven. Some managers think flexible schedules are only allowed in the summer when the president sends out a memo, but there is nothing in regulation that says flexible schedules are prohibited.

Increased supervisor training could help clarify this kind of misconception.

Johnsen is working to earmark funds in the FY06 budget for staff training.

The final Compensation Task Force Report report will be posted to the web as soon as received electronically.

9. Wellness Task Force Status

Mike Humphrey reported that because we are part of the Blue Cross network, the university actually avoids between $5 - 6 million per year of mostly employee costs. That works out to about $1,300 per year per employee. The university also has a disease management program with Blue Cross that looks at breast cancer, lung cancer, kidney failure and diabetes, etc., to intervene with the dependent or employee as soon as possible so that not only can costs be controlled but also the overall state of health is higher.

Humphrey’s office is also looking at generic drug usage. University employee use of generic drugs is about ten percent less than where Blue Cross says the university should be. If university employees would increase their use of generic drugs by ten percent, that might save another $500,000. Some drugs do not have a generic component, but when there is one, employees are encouraged to choose it.

Regarding the pharmacy program, the university is looking at its relationship with Medco Health through Blue Cross to see if the university is getting the best deal it possibly can. It may be that the university will issue an RFP within the next twelve to 22 months to a pharmacy benefit management company. If there is a change in providers, it would probably be July 1, 2006. This might mean university employees would have to carry two cards; one for accessing health care and one for accessing pharmacy services.

Humphrey is also looking at working with a company called Medstat. Medstat is a research group that specializes in analyzing health care claims, to get a better understanding of how employees are using the plan.

Next week, the Wellness Task Force is meeting with Summex, a company that specializes in health care appraisals. The group will look at trends and determine the kinds of preventative assistance that can be offered to employees to reduce risk and costs.

Human Resources is looking at the current supplemental pension program that the university funds entirely. Perhaps new university employees should wait for a couple of years before being able to participate in the plan and then implement a graduated schedule so that at the end of five years, employees would be 100 percent vested. Money the university could save by doing this could be shared with the benefit program to offset future costs or used in other ways to enhance benefits or to contain health care costs.

The university has a new relationship with the Alaska Club where employees new to the Alaska Club can sign up and not have to pay the initiation fees, and receive a one-month free membership.

Next week, the Employee Assistance Program will be here giving some orientation presentations.

12. Other Items of Interest

Sporleder and Salganek will be working on a joint wellness effort.

Sporleder will call the ASUAF President on how SAA can aid in the student government voter registration drive.

13. Agenda Items for Next Meeting, Wednesday, October 13, 2004

Agenda items for the next meeting may include, but may not be limited to the Thanksgiving and Christmas potlucks, the annual canned food drive and Love, Inc.

14. Member Comments

There were no additional comments.

15. Adjourn

The meeting was adjourned at 12:12pm.