HomeMy WebLinkAbout12/09/2008 23 Group Insurance Premium Cost Sharing; YMC Amendment 2.04 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
• AGENDA STATEMENT --11
Item No.4 ,,1.3
•
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employees and updating outdated sections.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 Zabel], 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
basis of 75% by the City and 25% by the employee. The effect of this change is cost neutral to the City of
Yakima. This change is reflected in the amendments to YMC Section 2.040.030D attached.
411P sIC Sections 2.04.010, 2.04.030, 2.04.040 and 2.04.050 have not been updated for many years and
erefore 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.
•
BOARD /COMMISSION RECOMMENDATION:
41pUNCIL ACTION:
4110 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
e l 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, 1 975;
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 healthcare 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
-2-
•
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, sen n
Y , 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.
-3-
SECTION 4. This ordinance shall be in full force and effect 30 days after its passage,
IIP 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:
• Effective Date:
•
-4-
• 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
Rally 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.
• . • ' - - - - - - - - -e - •e-e.• - ' - 4 • - - -
e . •' - -- - - -- --- - - -- - •e-e-•, -
-- - - - • - _ . - -
ar - - - - - - -- - -• - -- • - -•.- -- _•• e -- e_ - ••-• -
authorized to cntcr into a contract with said companies for such insurance. (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 BD 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 • f+• - -• •-- - ee - • - • - - -- - -- • -- - -- -•.. -. __•_- - -- -•e
sergeants.
(3) Effective January 1, 1981, the city shall provide a fully paid ten thousand dollar
l+fe insurance policy for all fire department employees except the chief of the
d epartment, •€-- - - • - - - - - - • - - - - - • - _ . - - , e _ _ , - - - - -
employees defined by the policy as bcing eligible for coverage.
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: - - - • - - e _ _ - _ _ _ - _ - , • - _ ' . January 1, 1979, the city shall contribute, towards the payment of the premium for the
g e - e - - -' - - -• - - • - _ • - suraflcc pla-R adopted by Sest+en 2.84.010 of this chapter,
tk- - - - - - - - - - - - - - - - • - e e _ e e -• _ _. -- - e-. • -
1. Represented Employee Contributions. For all employees covered by a collective
410 bargaining agreement, the city shall pay its portion of the total monthly cost of coverage
-2-
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. • - - -- -•• -- __ .. _ - •- -
G• , - • - e_ - e• - , - -- - -- s- - - -..- • - _- - - - -
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
41) 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 the fire department and their dependents; and for the chief, captains and
-3-
the city shall pay the full •
0 p .. -. - --e - e- -_ •• - -_ - - r. - •e e .
sftaptcr.
/1. For ach other employee enrolled in the plan, the city shall pay the full premium;
other employee and the employee's speuce and/er dependents -enrolled in the plan,
C. Dental Plan. Effective January 1, 1978, the city shall contribute, towards
p - ' ••• e - - •• e - e _ e e - e - . e e : e - - e .1•.9 9 _ •. . . . . . . . . . . . . . . . . . .•
a e e a ee • e e e e -e e _. --
fespectively:
1. For all fire department employees and their dependents, except thc chief, deputy • p - ' - - • - - - e - • - - - _ .e -_'.- -- e_ -•. __ _ .._. •
2. For police department personnel and their dependents, except thc chief,
eaptains and lieutenants, the city shall pay the amount of nineteen dollars and fifty
s -. -• _ - • - - • •; - e e e, _e....--_ e __ , ! -- - e• - -
3. For all employees in the exempt classification, as specified by Section 2.20.100
chiefs in the fire department and their dependents; and for the chief, captains and
premium, except as otherwise provided in Section 2.04.030(D)(5)(4)--and (7) of this
chapter.
,
fc •" • - - - , ' a _ •e - - - - -:-.; - - e - - - -• - e -- - • ..e
W elfare Trust. • aeee - e e ••-•-e-••-• - -' _ •" e - - -- - e • - ..-e•-- - -
Such plan shall be on file in the office of the personnel division.
1. "Cost of coverage" means the average monthly cost of coverage for the plan as
e•
2. Effective February 1, 1001--thc-city s • _ -e- _ _ - -e _ - _ _ • _ e •1:1-1..e - - ee - - - - - •" e - -e e - -- e -
- - -• - -• -• _ _. -- - - - - - - •
3. "Management employee" , mctians any non temporary employee in the
management series as defined by Section 2.20.110 of the city of Yakima Municipal
bargaining unit recognized by the city.
/1. "Member of thc city council" means any person holding the office of city of
ID ¥ a kima health care plan
-4-
5. Except for the chief, deputy chief, and battalion chiefs in the fire departments
provided, however, that -in the event the cost of coverage, as calculated herein, exceeds
three hundred dollars per month, the city and each management employee shall
equally share the excess above three hundred dollars per month.
6. The city shall pay the cost of coverage under thc health care plan for the chief,
deputy chief, and battalion chiefs of thc fire department; provided, however, that any
cost of medical coverage for the dependents of the chief, deputy chief, and battalion .
a. From January 1, 199-7 through -December 31, 199-7, the employee shall pay
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 dependent unit
cost and the city shall pay the balance of the dependent unit cost..
captains, and lieutenants of the police department; provided, however, that any cost of
e „. _ _ • . _ e e , : e .. _.- , to. .. .- -.. e -- ._ e _ .9 . . _
0 .. 7 , _
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.
410
-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:
411/ Effective Date:
1
-6-