Sparks City Council Workshop 3/18/2013 12:00:00 PM

    Monday, March 18, 2013 12:00 PM
    Sparks City Hall, Lower Level, 431 Prater Way, Sparks, NV

Item Number: 8

Title: Consideration and possible approval to fund a Wellness Program for City of Sparks employees and City of Sparks Group Health enrolled retirees and spouses.
Petitioner/Presenter: Shaun D. Carey, City Manager/Jill Valdez, SPHR, AIC, Human Resources Analyst I
Recommendation: Recommend funding in the budget for Fiscal Year 2013-2014 for a City of Sparks Wellness Program.
Financial Impact: $275,000
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: The City faces projected inflation in the cost of delivering workers compensation, group health and Heart/Lung/Cancer/Hepatitis Act benefits. Numerous studies show that the return on investment for wellness prevention is a far superior approach to cost reduction as compared with reactionary disease management after conditions develop. Furthermore, wellness adds benefits to employees, retirees, spouses and the community. This agenda item provides funding in the budget for Fiscal Year 2013-2014 to support a wellness program.

Background: Wellness programs are being used across the country by employers and public entities that choose a proactive approach to managing workers compensation and group health care costs. A review of 56 published studies showed an average return of $5.81 for each dollar spent on wellness as reported in 2012. Also in 2012, Alliance for Innovation spotlighted 13 public entities across the country that implemented wellness programs and saw reductions in costs of operation plus benefits to the employees and the community. The City of Reno, reported in December of 2012 a return of $21.00 for each dollar spent on wellness for police officers eligible for the Heart/Lung/Cancer/Hepatitis benefits through workers compensation. The grand total was $10.8 million dollars in projected savings. In addition, this proposal supports the City of Sparks goal of becoming financially sustainable going forward into the future.

Analysis: Changes in healthcare laws over the past few years have resulted in more preventative services being offered through the group health plan. The wellness proposal seeks to build upon existing services. It will provide expert speakers to educate individuals about the importance of knowing and understanding their risk factors. The City also wants to support employees once their risk factors are identified in their efforts and actions to reduce health risks and improve quality of life. For example, through the wellness plan the City would offer online opportunities to track progress, participate in challenges, and earn rewards. In addition, the City would provide hands on demonstrations of healthy living and cooking plus onsite fitness and nutrition counseling. Through these types of offerings, the City would support risk factor identification, plus the implementation of critical next steps to risk reduction.

Alternatives: 1. The City Council may approve the item as recommended. 2. The City Council may reject the recommendation of staff. 3. The City Council may choose not to approve the funding for the wellness program for Fiscal Year 2013-2014, but direct the City Manager further.

Recommended Motion: I move to approve funding in the amount of $275,000 for the budget for Fiscal Year 2013-2014 for the wellness proposal.

Attached Files:
     Wellness Proposal FY 2013-14.pdf
     Executive Summary - Wellness Proposal FY 13-14.pdf
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