HomeMy WebLinkAbout2008-057 Group Insurance; YMC Amendment 2.04.010, 2.04.030 and Adding New Definitions 2.04.020 ORDINANCE NO 2008 -57
AN ORDINANCE relating to Group Insurance for employees of the City of Yakima; amending
Chapter 2 04 entitled "Group Insurance" of the City of Yakima Municipal
Code, specifically sections 2 04 010, "Plan Adopted" and 2 04 030, "City
Contributions ", adding a new definitions Section 2 04 020; and updating
municipal code provisions to be consistent with collective bargaining
agreements, making other housekeeping amendments, and amending the
group medical premium cost sharing formula for management group
employees.
BE IT ORDAINED BY THE CITY OF YAKIMA.
SECTION 1 Section 2.04 010 of the Yakima Municipal Code is amended to read as follows:
Chapter 2.04
GROUP INSURANCE
2 04 010 Health Care Plan.
The city is self- insured for its medical and dental insurance plans (hereafter referred to in
Sections 2 04 010, 2.04 020 and 2.04 030 of the Yakima Municipal Code as the "health care
plan ") The health care plan includes medical, dental and vision coverage for city employees as
defined in the health care plan and for members of the city council. The medical and dental
insurance plans are administered for the city by third party administrators The city manager of
the city of Yakima is authorized to enter into a contract or contracts with third party administrators
to administer the medical and dental insurance plans The health care plan shall be on file in the
Human Resources division of the city (Ord. 1757 § 1, 1975, Ord. 1750 § 1, 1975, Ord. 1744 § 1,
1975, Ord. 758, 1965 Ord. 149 § 1, 1960).
SECTION 2. A new section is added to chapter 2.04 of the Yakima Municipal Code to read as
follows
2 04 020 Definitions
A. "Cost of coverage" means the average monthly cost of coverage for the health care plan
as determined from time to time by the city's health care administrator, the city's employee
benefits broker, and /or the city manager The final decision on the cost of coverage shall be
made by the city manager Such determination shall be final and binding
SECTION 3 Section 2.04 030 of the Yakima Municipal Code is amended to read as follows
2 04 030 City contributions
A. Life Insurance Plan.
1 Effective October 24, 1991, the city shall provide a fully paid life insurance policy in an
amount equal to the annual salary for all management employees as defined in subsection B of
this section, as well as for the chief, deputy chiefs and battalion chiefs of the Yakima fire
department and the chief, deputy chief, captains and lieutenants of the Yakima police
department.
2 For all employees covered by a collective bargaining agreement, the city shall provide a life
insurance policy in the amount required in the applicable collective bargaining agreement.
B Health Care Plan The city shall contribute toward the payment of the monthly cost of
coverage of the health care plan in the following manner for each group of employees or
positions, respectively.
1 Represented Employee Contributions For all employees covered by a collective
bargaining agreement, the city shall pay its portion of the total monthly cost of coverage under the
health care plan as provided in the applicable collective bargaining agreement, and the employee
shall pay his or her portion of the total monthly cost of coverage under the health care plan as
provided in the applicable collective bargaining agreement.
2 Management Employee Contributions
a. "Management employee" means any non - temporary employee in the management series,
executive support series and executive series as defined by Section 2.20 100 of the city of
Yakima Municipal Code, in the public safety management series as defined by Section 2.20 110
of the city of Yakima Municipal Code, and any other non - temporary employee in Section
2.20 100D of the city of Yakima Municipal Code who is not a member of any collective bargaining
unit recognized by the city
b "Member of the city council" means any person holding the office of city of Yakima council
member, who elects to pay the entire cost of coverage of the city of Yakima health care plan.
c. From January 1, 2009 on, except for the chief, deputy chiefs, and battalion chiefs in the fire
department and the chief, deputy chief, captains and lieutenants in the police department, or
unless otherwise provided in the applicable collective bargaining agreement, the following
provisions apply All management employees shall pay the first fifty dollars ($50) of the total
monthly cost of coverage under the health care plan for the employee through a monthly payroll
deduction. If an employee only is covered in the health care plan and the employee has no
spouse or dependents in the health care plan, then the city shall pay the balance of the employee
only unit cost in excess of the first fifty dollars ($50) that the employee pays For a management
employee with a spouse and /or dependents in the health care plan, any cost of coverage for the
management employee with a spouse and /or dependents in the plan in excess of the first fifty
dollars ($50) that the employee pays shall be paid by the management employee through a
monthly payroll deduction based on the following percentages on the remaining balance above
the first fifty dollars ($50) the employee shall pay at the rate of 25% of the balance of the
remaining total monthly cost of coverage, and the city shall contribute the remaining 75% of the
balance of the total monthly cost of coverage
d. For the chief, deputy chief, captain and lieutenants of the Yakima police department and
the chief, deputy chiefs and battalion chiefs of the Yakima fire department, unless otherwise
provided in an applicable collective bargaining agreement, the city shall pay the total monthly cost
of coverage under the health care plan for the employee If the chief, deputy chief, captain and
lieutenants of the Yakima police department and the chief, deputy chiefs and battalion chiefs of
the Yakima fire department have a spouse and /or dependents in the health care plan, then the
employee shall pay through a monthly payroll deduction at the rate of 50% of the monthly
dependent unit cost of coverage for the employee's spouse and /or dependents, and the city shall
contribute the remaining 50% of the total monthly dependent unit cost of coverage for the
employee's spouse and /or dependents, unless otherwise provided in an applicable collective
bargaining agreement. (Ord 97 -28 § 1, 1997, Ord. 96 -66 § 1, 1996, Ord. 93 -84 § 1, 1993 Ord
3403 § 1, 1991, Ord 3325 § 1, 1990; Ord. 3252 § 1, 1990; Ord. 2688 § 1, 1983, Ord 2266 § 1,
1979; Ord 2265 § 1, 1979; Ord. 2153 § 1, 1978; Ord. 1750 §§ 2, 3, 1975, Ord. 1744 §§ 2, 3,
1975, Ord 1614 § 1, 1974 Ord. 1474 § 1, 1972: Ord. 1081 § 1, 1968 Ord. 758, 1965 Ord. 319 §
1, 1962: Ord. 149 § 3, 1960)
SECTION 3 If any section, subsection, paragraph, sentence, clause or phrase of this ordinance
is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of
the remaining portions of this ordinance
SECTION 4 This ordinance shall be in full force and effect 30 days after its passage, approval,
and publication as provided by law and by the City Charter
PASSED BY THE CITY COUNCIL, signed and approved this 9 day of December, 2008
J / 1//
w David Edler, Mayor
ATTEST
iac--h tt%** errs
City Clerk
Publication Date 12/12/08
Effective Date 1/11/09
•
ORDINANCE NO. 2008 -
AN ORDINANCE relating to Group Insurance for employees of the City of Yakima,
amending Chapter 2 04 entitled "Group Insurance" of the City of
Yakima Municipal Code, specifically sections 2 04 010, "Plan
Adopted" and 2 04 030, "City Contributions ", adding a new
definitions Section 2 04 020, and updating municipal code
provisions to be consistent with collective bargaining agreements,
making other housekeeping amendments, and amending the
group medical premium cost sharing formula for management
group employees
BE IT ORDAINED BY THE CITY OF YAKIMA.
SECTION 1 Section 2 04 010 of the Yakima Municipal Code is amended to read as
follows
Chapter 2 04
• GROUP INSURANCE
2 04 010 Health Care Plan adopted
The city is self- insured for its medical and dental insurance plans (hereafter referred
to in Sections 2 04.010, 2.04.020 and 2.04.030 of the Yakima Municipal Code as the
"health care plan ") The health care plan includes medical, dental and vision coverage
for city employees as defined in the health care plan and for members of the city
council The medical and dental insurance plans are administered for the city by third
party administrators. The city manager of the city of Yakima is authorized to enter into
a contract or contracts with third party administrators to administer the medical and
dental insurance plans. The health care plan shall be on file in the Human Resources
division of the city.
A. The proposal submitted by Dougan Eadcs, Reynolds & Wheller, Inc., to be
AM
medical insurance plan for employees of the city of Yakima, is accepted and the city
manager and city clerk of the city of Yakima arc authorized to entcr.into a contract with
said insurance companies for the same.
B. The dental care insurance program proposed by Dougan, Eades, Reynolds &
Wheeler, Inc., to be underwritten by the Gr at Wes - ' - - -- -=•••e•-• ,
0 -- - . - - - - • - - - - - - • - - --.. -- ' - -- • • —'-'. (Ord 1757§
1, 1975, Ord 1750 § 1, 1975, Ord 1744 § 1, 1975, Ord 758, 1965 Ord 149 § 1, •
1960)
SECTION 2 A new section is added to chapter 2 04 of the Yakima Municipal Code to
read as follows
2 04.020 Definitions.
A. "Cost of coverage" means the average monthly cost of coverage for the health
care plan as determined from time to time by the city's health care administrator, the
city's employee benefits broker, and /or the city manager. The final decision on the cost
of coverage shall be made by the city manager. Such determination shall be final and
binding
SECTION 3 Section 2 04 030 of the Yakima Municipal Code is amended to read as
follows
2 04 030 City contributions
A Life Insurance Plan
1 Effective October 24, 1991, the city shall provide a fully paid life insurance policy •
in an amount equal to the annual salary for all management employees as defined in
subsection E31) of this section, as well as for the chief, deputy chiefs and battalion chiefs
of the Yakima fire department and the chief, deputy chief, captains and lieutenants of
the Yakima police department.
2 For all employees covered by a collective bargaining agreement, the city shall
provide a life insurance policy in the amount required in the applicable collective
bargaining agreement.Effcctive January 1, 1983, the city shall provide a fully paid
fifteen thousand dollar life insurance policy for police department police officers and
sergeants.
{3) Effective January 1, 1981, the city shall provide a fully paid ten thousand dollar
life insurance policy for all firc department cmployce� cxccpt the chief of the
department
{1) Effective January 1, 1979, the city shall provide a fully paid five thousand dollar
Federation of State, County and Municipal Employees, Local 1122, and for all othcr
B Health Care Plan. The city shall contribute toward the payment of the monthly
cost of coverage of the health care plan in the following manner for each group of
employees or positions, respectively and Medicalurance Plan. Effective
1 Represented Employee Contributions. For all employees covered by a collective •
bargaining agreement, the city shall pay its portion of the total monthly cost of coverage
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® under the health care plan as provided in the applicable collective bargaining
agreement, and the employee shall pay his or her portion of the total monthly cost of
coverage under the health care plan as provided in the applicable collective bargaining •
agreement. • - - - -- - - - - - - - - - - - - - - - -
in thc applicable collective bargaining agreement.
2 Management Employee Contributions.
a. "Management employee" means any non - temporary employee in the
management series, executive support series and executive series as defined by
Section 2.20100 of the city of Yakima Municipal Code, in the public safety
management series as defined by Section 2.20.110 of the city of Yakima Municipal
Code, and any other non - temporary employee in Section 2.20.100D of the city of
Yakima Municipal Code who is not a member of any collective bargaining unit
recognized by the city.
b. "Member of the city council" means any person holding the office of city of
Yakima council member, who elects to pay the entire cost of coverage of the city of
Yakima health care plan.
c. From January 1, 2009 on, except for the chief, deputy chiefs, and battalion chiefs
in the fire department and the chief, deputy chief, captains and lieutenants in the police
department, or unless otherwise provided in the applicable collective bargaining
agreement, the following provisions apply: All management employees shall pay the
first fifty dollars ($50) of the total monthly cost of coverage under the health care plan
0 for the employee through a monthly payroll deduction. If an employee only is covered
in the health care plan and the employee has no spouse or dependents in the health
care plan, then the city shall pay the balance of the employee only unit cost in excess of
the first fifty dollars ($50) that the employee pays. For a management employee with a
spouse and /or dependents in the health care plan, any cost of coverage for the
management employee with a spouse and /or dependents in the plan in excess of the
first fifty dollars ($50) that the employee pays shall be paid by the management
employee through a monthly payroll deduction based on the following percentages on
the remaining balance above the first fifty dollars ($50). the employee shall pay at the
rate of 25% of the balance of the remaining total monthly cost of coverage, and the city
shall contribute the remaining 75% of the balance of the total monthly cost of coverage
d For the chief, deputy chief, captain and lieutenants of the Yakima police
department and the chief, deputy chiefs and battalion chiefs of the Yakima fire
department, unless otherwise provided in an applicable collective bargaining
agreement, the city shall pay the total monthly cost of coverage under the health care
plan for the employee. If the chief, deputy chief, captain and lieutenants of the Yakima
police department and the chief, deputy chiefs and battalion chiefs of the Yakima fire
department have a spouse and /or dependents in the health care plan, then the
employee shall pay through a monthly payroll deduction at the rate of 50% of the
monthly dependent unit cost of coverage for the employee's spouse and /or
dependents, and the city shall contribute the remaining 50% of the total monthly
dependent unit cost of coverage for the employee's spouse and /or dependents, unless
otherwise provided in an applicable collective bargaining agreement.
chiefs, in thc fire department and their dependents, and for the chief, captains and
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licutcnant _ —
in the police department and their dependcnts, the city shall pay the full •
1. 1
chaptcr.
4 .
. -•- • - r •_ e -•.
C. Dental Plan. Effective January 1, 1 978, the city shall contribute, towards
chaptcr, the following amounts for the- following positions or group of employees,
respectively:
provided in thc applicable collective bargaining agreement.
lieutenants in thc police department and their dependents, thc city shall pay the full
chapter
• - -- • -- - - _ -- ..• - _ _. • - - e - •- -ee --- - -e -_'.
e. - - ' - - - • _ • -- • - - -e-
- - - - - - - - - - --e 44 - - e - • e _ - -
for Dental Plan III, Washington State Council of County and City Employees Health and
Welfare Trust.
D. Management Plan Created Contributors A city of Yakima health care plan is
adopted for management employees. The plan shall consist of hospital, medical, dental
Such plan shall be on file in the office of the personnel division.
determined from time to time by the city's health care administrator or the city manager.
Such determination shat
2. Effective February 1, 1991, the city shall contribute up to a maximum of two
. .
management series, executive support scrics and executive series as defined by
Section 2.20.100 of thc city of Yakima Municipal Code, in the public safety
bargaining unit recognized by the city.
41
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• 5. Except for the chief, dcputy chief, and battalion chiefs in thc fire departments
and the chief, captains and lieutenants in the police departmcnt, any cost of coverage
provided, however, that in the event the cost of coverage, as calculated herein, exceeds
equally share the excesc above thrcc hundred dollars per month.
6. The city shall pay thc cost of coverage under the health care plan for the chief,
deputy chief, and battalion chiefs of the fire department; provided, however, that any
cost of medical covcragc for the dependents of the chief, deputy chief, and battalion
chiefs of the fire department shall be paid by thc city and the employee through a
a. From January 1, 1997 through Dccember 31, 1997, the employee shall pay
16 66% of the dependent unit cost and the city shall pay the balance of the dependent
unit cost.
b. From January 1, 1998 through Dccember 31, 1998, the employee shall pay
° - --
unit cost.
c. From January 1, 1999 on, the employee shall pay 50 00% of the dcpendent unit
cost and the city shall pay thc balance of thc dependent unit cost.
7. The city shall pay thc cost of covcragc under thc health care plan for the chief,
captains, and lieutenants of thc police departmcnt; provided, however, that any cost of
police department shall be paid by thc city and thc employee through a monthly payroll
deduction as follows. frem June 1, 1-997 oh, the employee shall-pay-50,004-of-the
- - - - - - - - - - - - - • - - - - - - - -- . (Ord
97 -28 § 1, 1997, Ord 96 -66 § 1, 1996, Ord 93 -84 § 1, 1993 Ord 3403 § 1, 1991, Ord
3325 § 1, 1990, Ord 3252 § 1, 1990, Ord 2688 § 1, 1983, Ord 2266 § 1, 1979, Ord
2265 § 1, 1979, Ord 2153 § 1, 1978, Ord 1750 §§ 2, 3, 1975, Ord 1744 §§ 2, 3, 1975,
Ord 1614 § 1, 1974 Ord 1474 § 1, 1972 Ord 1081 § 1, 1968 Ord 758, 1965 Ord
319 § 1, 1962 Ord 149 § 3, 1960)
SECTION 3 If any section, subsection, paragraph, sentence, clause or phrase of this
ordinance is declared invalid or unconstitutional for any reason, such decision shall not
affect the validity of the remaining portions of this ordinance
-5-
SECTION 4 This ordinance shall be in full force and effect 30 days after its passage, •
approval, and publication as provided by law and by the City Charter
PASSED BY THE CITY COUNCIL, signed and approved this day of
December, 2008
David Edler, Mayor
ATTEST
City Clerk
Ordinance No
Publication Date III
Effective Date
III
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t
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
III AGENDA STATEMENT
Item No 4 ,3
For Meeting Of December 9, 2008
ITEM TITLE An Ordinance Amending Chapter 2 04 Group Insurance of the City of Yakima
Municipal Code relating to insurance premium cost sharing by management
employees and updating outdated sections
SUBMITTED BY Dick Zais, City Manager; Dave Zabell, Assistant City Manager; and Sheryl M Smith,
Human Resources Manager
CONTACT PERSON /TELEPHONE. Sheryl Smith, x6090
SUMMARY EXPLANATION
The management employee group voted on November 19, 2008 to reallocate a portion of their January 1,
2009 wage increase to reduce out -of- pocket monthly premium contributions The group voted to reallocate
1 41% from the 1/1/09 wage increase of 4 68% thereby reducing the wage increase to 3 27% The new
formula includes a $50 per month base contribution by all employees for the health insurance package If
the employee enrolls family members in the plan, then the remaining total cost of coverage is shared on the
a sis of 75% by the City and 25% by the employee The effect of this change is cost neutral to the City of
kima This change is reflected in the amendments to YMC Section 2 040 030D attached
YMC Sections 2 04 010, 2 04 030, 2 04 040 and 2 04 050 have not been updated for many years and
therefore did not accurately reflect our current group insurance programs or collective bargaining
agreements The revisions in this ordinance include references to the applicable collective bargaining
agreements for employee benefits and where there is a conflict between the municipal code and the labor
agreement, the labor agreement prevails For this reason, these sections of the code have not been
updated for many years Consequently, as amendments were being reviewed in light of the change
referenced above for management employees, these sections have been updated as a housekeeping
measure
Resolution Ordinance X Other (Specify)
Contract Mail to (name and address)
Funding Source
APPROVED FOR SUBMITTAL ‘..,
City Manager
STAFF RECOMMENDATION Pass ordinance
0 OARD /COMMISSION RECOMMENDATION
OUNCIL ACTION