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HomeMy WebLinkAboutCity Council Meeting - Council - Agenda - 07/15/2003 iv City of Kent City Council Meeting Agenda July 15, 2003 Mayor Jim White Councilmembers Judy Woods, Council President Tim Clark Julie Peterson Connie Epperly Bruce White Leona Orr Rico Yingling KE 0 T WAS HING TON City Clerk's Office SUMMARY AGENDA KENT CITY COUNCIL MEETING KEN T July 15,2003 W.s H I M G T G N Council Chambers 7:00 p.m. MAYOR: Jim White COUNCILMEMBERS: Judy Woods, President Tim Clark Connie Epperly Leona Orr Julie Peterson Bruce White Rico Yingling 1. CALL TO ORDER/FLAG SALUTE 2. ROLL CALL 3. CHANGES TO AGENDA A. FROM COUNCIL, ADMINISTRATION, OR STAFF B. FROM THE PUBLIC 4. PUBLIC COMMUNICATIONS A. Legislative Recognition B. Proclamation—National Night Out a t'c 5. PUBLIC HEARINGS -i A. Kent Downtown Public Market Development Authority, Transfer of Property and Dissolution—Adopt Ordinance -j 6 4-qt --- B. Formation of LID 355, SE 216th& 104th Place SE Sanitary Sewers 6. CONSENT CALENDAR A. Minutes—Approve B. Bills—Approve n C. Amendment to Washington City and County Pipeline Safety Consortium Agreement—Authorize D. Kent City Code Amendment, Capital Facilities Element Yearly Update Process, Ordinance—Adopt 3 (V 5 O E. Purchase of One Replacement Fire Engine—Authorize FlexPass Contract 2003-2004—Authorize G. Group Health Cooperative Contract Renewal—Authorize H. Alexander Sewer Extension Bill of Sale—Accept I. Torklift Parking Lot Street Improvement Bill of Sale—Accept J. Kent Valley Ice Arena Utility Improvement Bill of Sale—Accept K. Proposed LID 356, 11 lth Avenue Sanitary Sewers, Set Public Hearing Date, Resolution—Adopt ((o� L. Change of City Council Meeting Time—Ordinance—Adopt 3&S� M. Tahoma Vista Rezone Ordinance—Adopt 3 fo5.2 N. U.S. Dept. of Education Grant—Authorize 0. (4UMd.P A66—'-f0, ytr1q(vnO — F*CU58J — !��Yatfer� 7. OTHER BUSINESS A. Kent Station Preliminary Plat, Closed Record Appeal (continued next page) SUMMARY AGENDA CONTINUED 8. BIDS A. Reith Road Water Main Improvements,42nd Avenue South to Pump Station#4 B. Garrison Well&East Hill Well Replacement Wells 9. REPORTS FROM STANDING COMMITTEES AND STAFF 10. REPORTS FROM SPECIAL COMMITTEES 11 CONTINUED COMMUNICATIONS 12. EXECUTIVE SESSION A. Property Acquisition 13. ACTION AFTER EXECUTIVE SESSION 14. ADJOURNMENT NOTE: A copy of the full agenda packet is available for perusal in the City Clerk's Office and the Kent Library. The Agenda Summary page is on the City of Kent web site at www.ci.kent.wa.us. An explanation of the agenda format is given on the back of this page. Any person requiring a disability accommodation should contact the City Clerk's Office in advance at (253) 856-5725. For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388. i^ 'S } CHANGES TO THE AGENDA C to address the Council will, at this time, make known the subject of inters*-,so all may be property heard. A) FROM COUNCIL, ADMINISTRATION, OR STAFF B) FROM THE PUBLIC PUBLIC COMMUNICATIONS e A) LEGISLATI ;.WNITION B) PROCLAMATION-NATIONAL NIGHT OUT 'ku ry R' Kent City Council Meeting Date July 15, 0003 Category Public Hearings 1. SUBJECT: KENT DOWNTOWN PUBLIC MARKET DEVELOPMENT AUTHORITY, TRANSFER OF PROPERTY AND DISSOLUTION— ADOPT ORDINANCE 2. SUMMARY STATEMENT: On June 25, 2003, the Kent Downtown Public Market Development Authority ("PDA") authorized the transfer of its assets and liabilities to the City of Kent. The City Council, at its July 1, 2003, meeting, authorized the Mayor to accept all property transferred to the City by the PDA, and scheduled a public hearing on the proposed dissolution of the PDA for July 15, 2003 If adopted,the proposed ordinance dissolves the Kent Downtown Public Market Development Authority, indemnifies the PDA board members as it indemnifies city board and commission members in accordance with KCC 2.96.020, and authorizes the Mayor to take any action or sign any documents which may be deemed necessary in order to dissolve the PDA 3. EXHIBITS: Ordinance f4 RECOMMENDED BY: Operations Committee (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: A Councilmember W& moves, Councilmember Qlvv seconds to close the public hearing. M 0-- B. Councilmember _moves, Councilmember 10—seconds adoption of Ordinance No.3� dissolving the Kent Downtown Public Market Development Authority, indemnifying the PDA board members, and authorizing the Mayor to take any action or sign any documents necessary to dissolve the PDA. DISCUSSION: ACTION. rn C Council Agenda Item No. SA ORDINANCE NO. AN ORDINANCE of the city council of the city of Kent, Washington, dissolving the Kent Downtown Public Market Development Authority ("PDA"), ordering the city clerk to cancel the charter of the PDA, and providing notice of the PDA's dissolution in accordance with state law. WHEREAS, on March 3, 1998, the Kent city council enacted Ordinance No. 3396 that created the Kent Downtown Public Market Development Authority ("PDA") to acquire, renovate, operate, and manage the Lumberman Barn property, located at 206 Railroad Avenue North in the city of Kent, as the home of the Kent Downtown Public Market, and WHEREAS, in order to accomplish the redevelopment of the Lumberman Barn property, the city, on May 17, 1999, recorded a Quit Claim Deed, which transferred the city's ownership interest in the Lumberman Barn property to the PDA, along with the remaining budgeted funds dedicated for that project, and WHEREAS, after renovation of the Lumberman Barn property, the PDA leased the property to the Kent Downtown Partnership for it to sublease space to various vendors, and subsequently also leased a portion of the Lumberman Barn property to the city of Kent, and 1 Kent Downtown Public Market Development Authority-Dissolution WHEREAS, the Kent Downtown Partnership advised the PDA on December 18, 2002, that it would not seek renewal of its lease with the PDA due to the difficulties of keeping the public market open, thereby allowing the PDA's lease with the Kent Downtown Partnership to expire by its own terms on December 31, 2002, and WHEREAS, the sole purpose of creating the PDA was for the PDA to maintain and manage the Lumberman Barn property in order to house a year-round, indoor public market, and since the efforts to save the indoor market at that location have failed, the need for the PDA longer exists; and WHEREAS, the PDA's charter, dated June 18, 1998, adopted in I accordance with the city Ordinance No. 3396, provides that in the event of the PDA's dissolution, title to all property or assets of the PDA shall vest in the city of Kent for its 4 use for public purposes, and I WHEREAS, in addition to the real property assets, the PDA also owned personal property assets in the amount of $25,168 61 as of June 25, 2003, which consisted of cash in the estimated amount of $1,285 00, investments in the estimated amount of$23,430 00, and prepaid insurance in the amount of$453 61, and WHEREAS, on or about June 25, 2003, the PDA transferred to the city of Kent all title and interest it had in the Lumberman Barn real property and all other real and personal property assets of the PDA, and I WHEREAS, on July 1, 2003, the city council authorized the mayor to accept all property, real and personal, that the PDA offered to transfer to the city and authorized the mayor to execute all necessary documents in order to effect the property transfer, and WHEREAS, all real and personal property of the PDA has now been transferred to the city and, as such, it is now appropriate for the city to dissolve the PDA, and 2 Kent Downtown Public Market Development Authority -Dissolution WHEREAS, on July 1, 2003, the city council scheduled a public hearing on the proposed dissolution of the PDA, and the city clerk provided appropriate public notice of the public hearing, which public hearing was held at a regular city council meeting on July 15, 2003, and WHEREAS, after the public hearing on July 15, 2003, the city council has determined that dissolution of the PDA is warranted, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION 1. — Findings The recitals set forth above are hereby adopted and incorporated by reference In addition, the city council further finds that 1 All real and personal property of the PDA has been transferred to, and accepted by, the city of Kent 2 Notice of the July 15, 2003, public hearing before the city council regarding the dissolution of the PDA was properly given, and the PDA was afforded an opportunity to present testimony regarding the dissolution 3 The PDA is no longer needed as the indoor public market has ceased to exist, therefore, dissolution of the PDA is warranted SECTION 2. — Dissolution The Kent Downtown Public Market Development Authority is hereby dissolved. The city clerk is authorized and directed to inscribe "charter canceled" on the original charter of the PDA and any duplicate originals of the charter which may exist The city clerk is further authorized and directed to provide notice of the dissolution in accordance with RCW 35 22 288 and to any other entity that has requested special notice i 3 Kent Downtown Public Market Development Authority-Dissolution SECTION 3. — Indemnification As it does with city board and commission members, the city shall provide competent legal counsel of its choosing, to defend any current or former PDA board member or officer who is a party, or is threatened to be made a party, to any threatened, pending, or contemplated action, suit, or proceeding, whether civil, criminal, administrative, or investigative, arising from or connected with that person's actions as a PDA board member or officer The city shall pay or indemnify such PDA board member or officer against all expenses, fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding, except as otherwise provided for city board and commission members under Kent City Code section 2 96 020. This indemnification provision shall survive the dissolution of the PDA. SECTION 4. — Authorization The city council specifically authorizes the mayor to take any action and to execute any documents necessary to dissolve the PDA SECTION 5. — Severabih If any one or more section, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect SECTION 6. — Effective Date This ordinance shall take effect and be in force thirty(30) days from and after its passage as provided by law i JIM WHITE, MAYOR ATTEST BRENDA JACOBER, CITY CLERK 4 Kent Downtown Public Market • Development Authority-Dissolution APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED day of 2003 APPROVED day of 2003 PUBLISHED day of 2003 I hereby certify that this is a true copy of Ordinance No passed by the city council of the city of Kent, Washington, and approved by the mayor of the city of Kent as hereon indicated (SEAL) BRENDA JACOBER, CITY CLERK 5 Kent Downtown Public Market Development Authority-Dissolution Kent City Council Meeting Date July 15, 2003 Category Public Hearings 1. SUBJECT: FORMATION OF LID 355, SE 216TH & 104TH PLACE SE SANITARY SEWERS 2. SUMMARY STATEMENT: Per Council authorization, this date has been set for the public hearing on the formation of LID 355. The Public Works Department will be making a presentation. 3. EXHIBITS: Public Works Director memorandum 4. RECOMMENDED BY: Council 6/17/03 (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES_ 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: A. Councilmember Wd o moves, Councilmember &-a seconds to close the public hearing. -niC B. Councilmember moves, Councilmember Pa&_seconds to approve the formation of LID 355, for the construction of SE 216th and 104th Place SE Sanitary Sewers project, including related improvements, and to direct the City Attorney to prepare the necessary ordinance. DISCUSSION. ACTION: C Council Agenda Item No. 5B PUBLIC WORKS DEPARTMENT Don E Wickstroin, RE Public Works Director 00 Phone 253-856-5500 K E N T Fax 253-856-6500 W.5 MIw GTO. Address 220 Fourth Avenue S Kent,1VA 98032-5895 Date: June 17,2003 To. Mayor and City Co ncd From: Don Wickstrom 04 RE LID 355 SE 216'b Street& 104`b Place SE Sanitary Sewers Formation Public Hearing July 15, 2003 has been scheduled for the formation hearing for the above referenced LID project BACKGROUND The City received a petition with 23 signatures for the installation of sanitary sewers in the vicinity of SE 216'b Street and 104'b Place SE including the residential plats of Mount View Park as shown on the attached maps Subsequently, all property owners within the project area were contacted and there appears to be adequate support to proceed with the LID formation The project area is outside of the City limits, however, it is within the City's potential annexation area and franchised sewer service area The project location is shown in the City's Sewer Comprehensive Plan to be sewered by Kent The City developed a proposal, mailed information to all property owners involved and held an informational meeting November 20, 2002 Property owners then completed a questionnaire indicating their interest of disinterest in the proposal Those responding to proceed represented 43% This is enough interest to form an LID, however, a higher support level is desirable The LID boundary was revised to delete various non-supportive properties The support level indicated by the questionnaires for the revised boundary is shown below Those responding to proceed with the LID are identified on the attached map. Proceed with LID 60 20% Do not proceed with LID 19 90% Did not respond 19 90% The proposal was reviewed by the Public Works Committee on June 2, 2003 and the Resolution of intent was passed by City Council on June 17, 2003 setting the hearing date for July 15, 2003 PROPOSED SANITARY SENVER IMPROVEMENTS The proposed project is the construction of an 8" sanitary sewer system with 6" side sewer stubs to the right-of-way line or easement line for each of the 39 properties included in the LiD boundary P iASPT%MemINL1 D 555 FGmvoon Public Hearing Mena doc The construction will include 8"sewer at the following locations ON FROM TO • 105"' Place SE SE 218'b Street Approximately 400 feet north SE 21 Sib Street 105"Place SE 105'b Avenue SE 105"b Avenue SE SE 2181b Street SE 220"Street approximately 75' West of East plat boundary SE 219" Street 105'b Avenue SE East and West to cul-de-sac Easement SE 219'b Street at end of Approximately 240 feet northwesterly cul-de-sac West of 105`b from center of cul-de-sac Avenue SE Easement End of above easement Intersection of 103'd Place SE and SE 2161b Street at existing manhole NEED FOR SEWERS The project area consists of two older residential plats (1961 and 1964) developed with septic systems A larger residential property (assessments 1 and 2 on the map) is owned by a developer who has indicated his interest in developing. it is not known how many existing septic systems are technically in a state of failure, however,we understand from the residences that there are septic problems in the area Usually it is difficult to repair septic problems, especially on small lots such as these with limited space Sanitary sewers are usually the most feasible, economical and long term method for addressing these problems, especially when numerous property owners in a neighborhood support sewer installation as is the case with this proposal The Department of Public Health has told us the life expectancy of a septic system is 20 to 30 years depending on use and maintenance and they are a short term disposal method until public seders become available The project area has greatly exceeded this time frame and the reports of failures substantiate these systems are at or are near the end of their useful life They also say that the cost of septic repairs may be as high as converting to public sewers The latest State Codes make septic repairs more difficult and expensive The soil type within the project area is poorly rated for septic system use According to the Soil Conservation Service (US Dept of Agriculture) Soil Survey for King County, the sod type as mapped is rated severe limitation for septic dram fields The soil series is designated as AmC (arents, Alderwood material 6-15% slope) This soil exhibits very slow permeability below a depth of 24-40 inches and a seasonal high water table. Effluent and drainage move laterally over the lower impetuous layers Effluent may come to the surface in the neighbors yards and in roadside ditches In addition to the need for sewers in this area to replace the failing septic systems, there are environmental concerns. The project area is located adjacent to the north bank of the middle fork of Garrison Creek Septic seepage and runoff can cause bank erosion and degrade water quality in the stream PROPERTY OWNER COMMENTS Various input from property owners has been received One owner wants the sewer because she has to measure the water table in her back yard to evaluate if her family can shower or run the dishwasher. They frequently shower at the gym She also complained about failing systems around her home and the resulting odor problem P USPT%MemMLID 355 Fomwwn Public Heannk Memo doc One non-supporter who claimed she doesn't need sewers recently called to change her position due to a septic failure which has occurred since the informational property owner meeting . One supporter can't get a building permit from King County for an addition to his house due to the septic situation. Other owners say their septic systems are failing or have failed in the past and they support the sewer project Another response summed it up as follows. "This project is long overdue These septic systems were installed in the 60's and intended to be only temporary Many of these systems have been replaced in the last 20 years. My system has failed twice, and with surface water management issues complicating an already marginal situation, this must be permanently resolved by sewers as soon as possible." Those that are non-supportive mentioned that their septic systems are currently working and they don't want the expense One man said he is retired and would have to sell his home of many years due to the additional expense of the LID assessment and sewer bill Another owner is concerned about the annexation covenant requirement. PROJECT FUNDING LLD $758,965 62 CITY 60,404 80 TOTAL $819,271 42 The total LID assessment is estimated at $758,865 62 Single family lots are estimated at $15,101 20 Several larger subdividable properties are assessed higher due to development potential beyond a single residence There are no City owned properties within the proposed project However, the proposal is for the City to contribute $60,404 80 sewer utility funds There are four parcels on 104th Place SE that \\ere deleted from the LID when the proposal was revised and the sewer on 104`b Place SE was deleted These properties will have the potential to connect to the sewer to the rear Therefore, the City will pick up the costs for these parcels as if they were assessed and establish a charge in lieu of assessment METHOD OF ASSESSMENT Each parcel's proportionate share of the total project cost is determined by the following method The assessments are based upon square footages using a zone and termini method within the assessment boundary. The assessment rate decreases with 150-foot zones back from the sanitary sewer to the rear of the properties seniced In this case there are three zones The zone rate for the first 150-foot strip of each parcel abutting the sanitary sewer is three times the zone rate for the 150-foot strip which begins 300-feet from the sanitary sewer, and so on There are a number of single-family residential lots within the LLD. These parcels can't subdmde and are limited to one residence. In this case, a variation in square footage doesn't affect benefit Each of these parcels will receive one residential side sewer connection, therefore the benefit is equal The total assessment for all of these parcels determined by the square footage calculation as described above is averaged based on the total number of single family lots thereby creating equal assessments Those portions of properties that contained steep ravines were not included in the square footage calculation assessment. The lots or portions thereof that are too low for a gravity side sewer require a pumped system and were calculated at 0 5 factor P\ASPT\WmH\LID 355 Fommun Pobhc Hnnng Mcnw dm PAYMENT OF ASSESSMENT Upon Council passing the Ordinance confirming the Final Assessment Roll, there is a 30-day period in which any portion or all of the assessment can be paid without interest charges After the 30-day period, the balance is paid over a ten-year period wherein each year's payment is one-tenth of the principal plus interest on the unpaid balance The market determines the interest rate at the time the L I D bonds are sold to the public SUPPORT FOR LID 355 To defeat an LID proposal, there must be protest from property owners representing 60% or more of the proposed LID assessments The total project cost for calculating protest percentage is $758,865 62 The 60%protest amount would be$455,319 37 As indicated previously, there appears to be substantial property owner support for the project ii ith 60 2% expressing interest through the questionnaire process. Should this level of support continue through the public hearing process, it will then be a City Council decision whether or not to proceed with the LiD formation process and approve the LID formation ordinance ANNEXATION TO CITY The proposed LID is located outside of the Kent City limits but within our sewer franchise boundary and proposed annexation area These properties will not be required to annex to the City prior to the LID formation Houever, each person applying for a sewer permit will be required to execute an Annexation No Protest Covenant This means that in the case of an annexation attempt, they will be counted as a "yes" vote and once enough covenants have been signed, an annexation could proceed MANDATORY SEWER CONNECTION The City Code states that all residences, whether within or outside the City limits, located within 200 feet of a City of Kent sanitary sewer shall be required to connect to the sewer and shall be bitted for the service. The Code provides that compliance with this provision be within 90 days after the date of official notice In the case of a public health or safety hazard, compliance shall be within 20 days of official notification. Following construction of the project should the LID be formed, the City will send each property owner an official notice that the sanitary sewer service is available to the parcel and is within 200 feet of the house Following the compliance period, all properties which have not yet applied for aside sewer permit will automatically be added to the sewer billing list EASEMENT AND RIGHT-OF-WAY ACQUISITION The construction of the project will require property acquisition in some locations to provide easements for the sanitary sewers. Each property involved will be appraised followed by negotiation between the City and owner Final settlement can be a direct payment or can be a credit toward the assessment thereby reducing the amount of the yearly payments A King County Right-of-Way Construction Permit must also be obtained. P MSPTVdem111L,D a55 Fornuuon Pob1K Hnnng Menw da S 180TH ST IT T o Q 5 192ND T / i r Y K i � % 4 P I > Z Y < u o SE zoaTH W / W S 20aTFC!/ W N < ~ b W 2 a E J16 ST a r a S 21 aTH T K CA s z :3 m ¢ � � SE 223R0 ST CITY OF KENT a S / 5 28 i r N N m / Pay ST N N ST SE NOT T / � W � N E ISMITH T a '^ SE 4411 ST CLARK i LK L.I.D. 355 L.I.D. VICINITY MAP CITT OP KENT ENGINEERING DEPARTMENT BOG W. COWS ST KENT. WA. 99033 S.E. 216TH STREET AND 104TH PLACE S.E. g .... NT PROPOSED SANITARY SEWER LID MAP .TUNE. IGOS V � 1 iSODS CREEK WATER AND 1 SEWER DISTRICT EXISTING s —KSE-NT SEWER SANITARY SERVICE AREA BOUNDARY SEWER 1 1 LID BOUNDARY 1 ' *O i * 12 LEGEND O O ASSESSMENT *O 74 NUMBER a LID PARCEL PROPOSED SANITARY f SEWER 18 ' 77 i6 NA NOT ASSESSE OUESTIONNAIRE NA O\ 20 19 * RESPONSE O21 � 31 32 33 "PROCEED' S. 9 T 22 23 24 i 36 * 34 LID BOUNDARY 37 25 36 39 26 * \ E.220TN S N R L.I.D. 355 Q L.I.D. BOUNDARY MAP p CITY Or KENT ENGINEERING DEPARTMENT 400 W OOWE ST KENT. WA. 9/033 S.E. 216TH STREET AND 104TH PLACE S.E. PROPOSED SANITARY SEWER LID MAP v CONSENT CALENDAR 6. City Council Action: Councilmember w 0WZQIO moves, Councilmember Q/v✓ seconds to approve Consent Calendar Items A through➢eO Discussion Action G 6A. Approval of Minutes. Approval of the minutes of the regular Council meeting of July 1, 2003. 6B Approval of Bills. Approval of payment of the bills received through June 30 and paid on June 30 after auditing by the Operations Committee on July 1, 2003. • Approval of checks issued for vouchers: Date Check Numbers Amount 6/30/03 Wire Transfers 1450-1460 $1,019,243.89 6/30/03 Prepays & 550074 401,194.41 6/30/03 Regular 550073 1,647,741.42 $3,068,179.72 Approval of checks issued for payroll for June 1 through June 15 and paid on June 20, 2003: Date Check Numbers Amount 6/6/03 Interim Checks 270836-270837 $ 2,81725 $ 2,817.25 6/20/03 Checks 270838-271142 $ 240,036 08 6/20/03 Advices 149348-150030 1,194,43163 $1,434,467.71 Council Agenda Item No 6 A-B • KENT Kent City Council Meeting ""s^'°°'°" July 1, 2003 The regular meeting of the Kent City Council was called to order at 7 00 p m by Mayor White Councilmembers present Clark, Epperly, Orr, Peterson, White, and Yingling Councilmember Woods was excused from the meeting Approximately 30 people were at the meeting (CFN-198) CHANGES TO AGENDA A From Council (CFN-198) Consent Calendar Item N was added by Council member Orr Martin added three additional items of land acquisition and one item of potential litigation to the Executive Session B From the Public. (CFN-198) Continued Communications Items A, Hazardous Sites List and B, 2003 Citizen Survey Report were added by members of the audience PUBLIC COMMUNICATIONS A Emplovee of the Month. (CFN-147) Mayor White announced that Paula Thayer of Fire PreN ention, has been selected as the July 2003 Employee of the Month B Proclamation —Group Workcamp Week. (CFN-155) Mayor White read a proclamation declaring the week of July 6 -13, 2003 as Group Workcamp Week, and presented it to Dim Duclos of the Multi Service Center, who explained the project C Proclamation — Pause to Remember Our Korean War Veterans. (CFN-155) Mayor White read a proclamation proclaiming 2003 as Pause to Remember Our Korean War Veterans year The proclamation x+as accepted by Korean War Veteran Bill Swmford D Recreation and Parks Month. (CFN-155) Mayor White read a proclamation declaring the month of July 2003 as Recreation and Parks Month and presented it to Parks Director Hodgson E Presentation of Century 21 Donation. (CFN-198) Representatives of Century 21 Allstate in Kent presented a check in the amount of$1,000 to the mayor to be used to improve a youth baseball field F Diversity Champion Award. (CFN-155) Mayor White then noted receipt of the AWC Diversity Champion Award for Excellence and presented it to Jed Aldridge of Employee Services PUBLIC HEARINGS A S. 259th Place Street Vacation. (CFN-102) Resolution No 1639 established this date for the public hearing on the application by Ms Phyllis M Dettler to vacate a portion of South 259th Place Because Ms Dettler rescinded her application on June 9, 2003, there was no public heating or further action by Council on this item B Sale of Surplus Utilitv Equipment. (CFN-239) Mayor White noted that the City owns certain public utility equipment which the Public Works Director has determined is no longer needed as part of the City's water system He then opened the public hearing There were no comments from the audience and ORR MOVED to close the public hearing Clark seconded and the motion carried CLARK MOVED to adopt Resolution No 1647 which declares certain public 1 Kent City Council Minutes July 1, 2003 utility equipment surplus and authorizes its sale to the highest bidder at public bid, or, if the equipment is not sold at auction, to be sold for scrap metal Peterson seconded and the motion carried CONSENT CALENDAR ORR MOVED to approve Consent Calendar Items A through N Clark seconded and the motion carried A Approval of Minutes. (CFN-198) The minutes of the regular meeting of June 17, 2003, were approved B Approval of Bills. (CFN-104) Payment of the bills received through June 15 and paid on June 17 after auditing by the Operations Committee on June 17, 2003, was approved as follows Approval of checks issued for vouchers- Date Check Numbers Amount 6/17/03 Wire Transfers 1440-1449 $1,139,995 38 6/17/03 Prepays & 549411 259,334 30 6/17/03 Regular 550073 1,220,508 43 $2,619,838 11 Approval of checks issued for payroll for May 16 through May 31 and paid on June 5, 2003 Date Check Numbers Amount 5/28/03 Interim Check 270527 $ 14698 6/5/03 Checks 270528-270835 245,788 21 6/5/03 Advices 148665-149347 1,186,85642 $1,432,791 61 C Data Center Power Supply Unit Project. (CFN-1155) The Mayor was authorized to sign purchase orders for the purchase and installation of additional power supply units for the data center using contingency funds from Technology Plan 2002 D Re-Appointment of Lodging Advisory Board Members. (CFN-1170) As recommended by the Operations Committee, the re-appointment of Kathy Madison and Andy Wangstad for additional three (3) year terms on the Lodging Tax Advisory Board was approved E Kent Lodgin¢ Association Budget. (CFN-1170) An amendment of the Kent Lodging Association budget, which extends the contract through the end of 2003 was approved, as recommended by the Operations Committee F Kent Downtown Public Market Development Authoritv, Transfer of Propertv, Set Hearing Date. (CFN-462) The Mayor was authorized to accept all property, real and personal, that the PDA offers to transfer to the City of Kent, to execute any and all necessary documents in order to effect the property transfer, and to set a public hearing on the proposed dissolution of the PDA before the City Council at its July 15, 2003, meeting 2 Kent City Council Minutes July 1, 2003 G. Declare Listed Equipment and Materials as Surplus. (CFN-239) As recommended by the Public Works Committee, equipment and materials no longer needed by the City were declared surplus and the sale thereof at the Cornucopia Days Public Auction was authorized. H Restrictive Covenant Kent Highlands Landfill. (CFN-311) As recommended by the Public Works Committee, the Mayor was authorized to sign the Restrictive Covenant Kent Highlands Landfill document and to direct staff to record the Covenant and the Declarative Statement and Cleanup Action Plan on the City's Kent Highlands property T Partial Termination and Relinquishment of Wetland Easement and Reservation. (CFN-239) As recommended by the Public Works Committee, the Mayor was authorized to sign the Partial Termination and Relinquishment of Wetland Protection Easement and Resenation document with respect to Wetland Areas G, H, M, and SW of Boeing Company Pacific Gateway Business Park J Zoning Code Amendment, Auto Repair as Home Occupation, Extension of Amortization Period, Ordinance. (CFN-131) Ordinance No 3646, extending the amortization period for auto repair as a home occupation to October 18, 2004, three (3) years from the effective date of the initial code amendment that prohibited this type of use, was adopted K Zoning Code Amendment, Auto Repair and Washing Services in M-3 Zoning District, Ordinance. (CFN-131) Ordinance No 3647, amending sections 15 04 090 and 15 04 100 of the Kent City Code to permit auto repair and washing services in the M3, General Industrial, zoning district when the property is used for heavy equipment repair and/or truck repair, and the property abuts or is split-zoned with Gateway Commercial (GWC)property, was adopted L Zoning Code Amendment, Neighborhood Convenience Commercial District, Ordinance. (CFN-131) Ordinance No 3648, amending sections 15 04 070, 15 04 080, 15 04 090, 15 04 100, 15 04 190, 15 04 195, 15 06 050, and 15 07 060 of the Kent City Code to permit accessory din e- through facilities, require design techniques to enhance compatibility betty een neighborhood com- mercial development and surrounding residential uses, and to modify the signage and landscaping requirements for Neighborhood Convenience Commercial ("NCC") properties, was adopted M Bill of Sale, Gagliardi Sewer Extension. (CFN-484) As recommended by the Public Works Director, the Bill of Sale for the Gagliardi Sewer Extension for continuous operation and maintenance of 1,342 feet of sewers was accepted N Councilmember Absence. (CFN-198) An excused absence for Councilmember Woods from tonight's meeting was approved OTHER BUSINESS A Tahoma Vista Rezone #RZ-2002-5. (CFN-121) Mayor White noted that this request by Donald L Gill-More is to rezone approximately 4 84 acres of property from SR-4 5, Single Family Residential, to SR-6, Single Family Residential Sharon Clamp of Planning Services explained the rezone and said staff and the Kent Hearing Examiner recommend approval ORR MOVED to accept the Findings, Conclusions, and Recommendation of the Hearing Examiner on the Tahoma Vista Rezone, and to direct the City Attorney to prepare the necessary ordinance Clark seconded and the motion carried 3 Kent City Council Minutes July 1, 2003 B Boeing Resolution. (CFN-198) Mayor White noted that the proposed resolution expresses Kent's commitment to the state-wide effort to recruit the final assembly of the Boeing Company's 7E7 next generation commercial Jetliner in Washington State, to keep the Boeing Company's manufacturing facilities in Puget Sound, and to sustain the Boeing Company's rank as the top commercial airplane maker in the world YINGLING MOVED to adopt Resolution No 1648, which expresses Kent's commitment to the state-wide effort to recruit the final assembly of the Boeing Company's 7E7 next generation commercial Jetliner in Washington State Epperly seconded and the motion carried. REPORTS A Council President. (CFN-198) Clark reminded Councilmembers that Kent is the host of the next Suburban Cities Association meeting B Operations Committee. (CFN-198) Orr noted that all items at today's meeting were approved Yingling concurred that the items can go on the Consent Calendar C Public Safety Committee. (CFN-198) Epperly noted that the next meeting will be at 5 00 p m on July 8th D. Public Works Committee. (CFN-198) Clark reminded the public that Highway 167 will be closed from July 18-21 E Plannin2 Committee. (CFN-198) Orr noted that the next meeting will be July 15th at 300pm G Administrative Reports. (CFN-198) Martin noted that there will bean executive session of approximately 40 minutes to discuss five items, and that no action is anticipated CONTINUED COMMUNICATIONS A. Hazardous Sites List. (CFN-198) Bob O'Brien 1131 Seattle Street, displayed a hazardous sites list put out by the State Department of Ecology and spoke about the ranking of the Borden Chemical site B 2003 Citizen Survey Report. (CFN-198) Ted Ko-is�ta, 25227 Rerth Road, opined that the 2003 Citizen Survey Report should be revisited EXECUTIVE SESSION The meeting recessed to Executive at 7 35 p m , and reconvened at 8 28 p in (CFN-198) ADJOURNMENT At 8 28 p m , PETERSON MOVED to adjourn Orr seconded and the motion carried (CFN-198) Brenda Jacober, CMC City Clerk 4 Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: AMENDMENT TO WASHINGTON CITY AND COUNTY PIPELINE SAFETY CONSORTIUM AGREEMENT—AUTHORIZE 2. SUMMARY STATEMENT: Authorization is requested for the Mayor to sign Amendment 2 to Interlocal Agreement establishing the Washington City and County Pipeline Safety Consortium. The Washington City and County Pipeline Safety Consortium was established by Interlocal Agreement in the year 2000 in response to the devastating explosion of the Olympic Pipeline in Bellingham. The current Consortium membership includes- Auburn, Bellevue, Bellingham, Bothell, Kent, Redmond, Renton, SeaTac, Seattle, Tumwater, Woodinville, Clark County and Thurston County The amendment would extend this agreement for an additional one year period as outlined in the current agreement. 3. EXHIBITS: Amendment & interlocal agreement 4 RECOMMENDED BY:Fire Chief and Public Safety Committee (3-1) (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: S SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION. Council Agenda Item No. 6C Amendment 2 to Interlocal Agreement Establishing the Washington City and County Pipeline Safety Consortium The undersigned parties to the Interlocal Agreement Establishing the Washington City and County Pipeline Consortium(the "Agreement") agree as follows: 1 In accordance with section 3.G of the Agreement, the duration of the Agreement is extended until December 31, 2004 2. The Consortium will be funded through December,2004, with a grant from the Washington Utilities and Transportation Commission and will require no additional individual jurisdiction contribution with this Amendment 2 3. No other provision of the Agreement is affected by the Amendment. IN WITNESS WHEREOF, this Amendment No. 2 has been executed and affirms and ratifies • participation in past consortium activities and for the next year by each party on the date set forth below. CITY OF KENT Approved as to form Date: Date i Amendment 2 to Interlocal Agreement Establishing the Washington City and County Pipeline Safety Consortium The undersigned parties to the Interlocal Agreement Establishing the Washington City and County Pipeline Consortium (the "Agreement") agree as follows• 1. In accordance with section 3.G of the Agreement, the duration of the Agreement is extended until December 31, 2004 2. The Consortium will be funded through December, 2004, with a grant from the Washington Utilities and Transportation Commission and will require no additional individual jurisdiction contribution with this Amendment 2. 3 No other provision of the Agreement is affected by the Amendment. IN WITNESS WHEREOF, this Amendment No. 2 has been executed and affirms and ratifies participation in past consortium activities and for the next year by each party on the date set forth below. CITY OF KENT Approved as to form Date: Date- t• INTERLOCAL AGREEMENT ESTABLISHING THE WASHINGTON CITY AND COUNTY PIPELINE SAFETY CONSORTIUM THIS AGREEMENT is entered into by and between the undersigned cities and counties. This Agreement is made pursuant to the Intedocal Cooperation Act, Chapter 39.34 RCW, and has been authorized by the legislative body of each jurisdiction. WHEREAS, concern about pipeline safety has been expressed by the member cities and counties; and WHEREAS, Cities and Counties along the Olympic Pipeline corridor have a common goal of ensuring the safety of their communities; and WHEREAS, Cities and Counties seek independent, expert third party assessments of the condition of the Olympic Pipeline and its potential hazards; and WHEREAS, Cities and Counties desire legal analysis of the pending pipeline safety legislation at the state and federal level and assistance in developing a model franchise; WHEREAS, Cities and Counties desire expert third party analysis of the procedures required to maximize the safety of the pipeline; and WHEREAS, Cities and Counties desire a unified voice relating to pipeline safety issues where Olympic Pipeline Facilities are located; now,therefore, The City and County signatories agree as follows. Establishment of the Washington City and County Pipeline Safety Consortium There is hereby created a city and county consortium hereinafter called the Washington City and County Pipeline Safety Consortium(the Consortium). The parties hereto each hereby task the Consortium with the responsibility for achieving the following goals: 1. Provide a coordinated response for member Cities and Counties on certain issues related to fuel pipeline safety in general and the activities of Olympic Pipe Line Company in particular, 2. Obtain expert independent analysis and monitoring of the Olympic Pipeline Corridor Safety Action Plan so as to ensure it provides the degree of safeguards and security that our communities demand and deserve; 3. Identify deficiencies in Olympic Pipeline's Pipeline Corridor Safety Action Plan; 4. Identify steps Olympic Pipeline should take before re-starting the flow of product through its pipeline; . 5. Provide advocacy and public relations services on behalf of cities and counties; 1 6. Monitor franchisee compliance in jurisdictions along pipeline corridors; 7. Coordinate signage and activity within pipeline corridor right of ways; 8. • Analyze and provide comment on federal and state legislative efforts with regard to pipeline safety; 9. Work cooperatively with other groups and governments mutually interested in pipeline safety; 10. Work directly with the State of Washington and any state task force established to examine pipeline safety; 11. Work to meet other goals as defined by the membership. 1. Definitions, A. Principal. A Principal is a City or County which has accepted the terms of, and is a party to, this Interiocal Agreement and has paid its share of the costs of the Consortium. The initial Principals to this Agreement are the undersigned cities and counties. Principals will receive services as offered by the Consortium according to such terms and conditions as may be established. B. General Membership. The General Membership shall consist of all the voting representatives of the Principals. C. Voting Representatives. Each Principal will designate one representative, and one alternate representative to vote on issues before the General Membership. D. Alternate Representatives. Each Principal shall be entitled to designate one alternate representative who shall serve on behalf of the voting representative during his or her absence or inability to serve. E. Administrator. The City of Bellevue shall be designated as the Consortium's Administrator. Principals shall pay to the City of Bellevue the agreed upon Financial Contribution. F. Financial Contribution. Each Principal shall make an initial$5,DD0 Annual Financial Contribution. Additional Financial Contributions shall be provided in the future on a basis and in an amount agreed by the General Membership. A Principal shall be obligated as to any future Financial Contributions only upon ratification by its respective legislative body. A Principal shall be allowed to withdraw from the Consortium and not incur any additional financial obligation N its legislative body decides against a future Financial Contribution. 2 G. Executive Board. The Executive Board shall be composed of seven representatives of 7 different Consortium members,appointed by their jurisdictions. The initial slate of Executive Board Members shall include a member from each of the following jurisdictions: The cities of Bellevue, SeaTac, Renton, Redmond, Bellingham, Tumwater,and the county of Thurston. The initial Board shall serve for a period of one year from the effective date of this Agreement Subsequent Boards shall consist of seven members elected by the General Membership from among the representatives appointed by their respective jurisdictions. 2. Roles A. GGr4pral Membership. The General Membership shall approve the budget and have final decision-making authority to approve the final budget and the work plan of the Consortium. The General Membership shall approve the members of the Executive Board. B. Executive Board. 1.) Chair. The Chair of the Executive Board shall be elected by the members of the Board from the Board membership. The Chair of the Executive Board shall process issues, organize meetings and preside over meetings of the Board,and shall have no other powers than those enumerated here. 2.) Powers of the Executive Board. The Executive Board shall meet as often as it deems necessary and shall have the following powers: (a.) To recommend periodic budgets and work plans for the Consortium for approval by the General Membership; (b.) To establish policies to carry out the work plan approved by the General Membership; (c.) To establish policies for expenditures of budgeted items for the Consortium; (d.) To hold regular meetings on such dates and at such places as the Board may designate and call for meetings of the General Membership; (a.) To authorize the Administrator to enter into agreements with other federal, state and local agencies, and private entities to receive grants and funds, and other agreements for services. C. Administrator. City of Bellevue, as Administrator, shall contract for services as necessary to accomplish the purposes of the Consortium under this Agreement subject to the approval of the Executive Board; establish a special fund or funds as authorized by RCW 39.34.030;collect from the Principals Financial Contributions due to Bellevue as Administrator for the Principals; and reimburse its Principals. In addition, the Administrator will provide for secretarial and other administrative support for the Board as the Board deems necessary. The Administrator shall not be reimbursed for expenditures made prior to the effective date of this Agreement 3 T 3. Offer Pertinent Matters A. Proportionality of Represerdtt},ionNot ng Each Principal shall be entitled to one vote on all actions required to be approved by the General Membership and each Principal which has a representative on the Executive Board shall be entitled to one vote on all actions required to be approved by the Executive Board. B. Voting Percentage Reggirements. All actions required to be approved by the General Membership or the Executive Board shall require approval of 70% of the vote of those present. Dissenting comments shall be recorded. C. Quorum. A quorum at any meeting of the General Membership or the Executive Board shag consist of the voting members or Board members (or agemates) who represent a simple majority of the General Membership or Executive Board membership. D. Additional Principals. The Executive Board may, by vote,accept new Principals who become parties to this Agreement and who have paid the agreed-upon amount as the new Principars share. The Executive Board may, by vote, accept new Principals to the consortium by approving the proposed new Principal's signed agreement. E. Finance and Budget. 1.) Acceptance of Funds. The Administrator is hereby authorized to accept all Financial Contributions of the Principals allocated to the Consortium and any federal, state or private grants in order to accomplish the purposes of this Agreement and Chapter 39.34 RCW. 2.) Budget The Executive Board shall draft a proposed initial budget for the remainder of the current calendar year and present it to the General Membership. Thereafter,the Executive Board shag draft proposed period budgets as it deems appropriate. The General Membership shall review and recommend revisions to the draft budgets as it deems appropriate. The Executive Board shag revise the draft budgets and shall present them for a vote of the General Membership.The budgets are adopted when approved by the General Membership. 3.) Delinquencies. A Principal who is six months delinquent in payment shall be considered to have withdrawn from the Consortium. Withdrawal does not extinguish the obligation to pay for services rendered. 4.) Use Guidelines. The Consortium may use any available funds for any purpose authorized by this Agreement, and included In the work plan adopted by the Consortium. Additional projects and expansion of the scope of worts are authorized, for purposes of this Agreement, when approved and funded by all the then current Principals or through any grants provided the Consortium. Consortium funds will not be used to pay for any City or County staff time. 4 F. InteMovernmental Cooperation. The Consortium shall cooperate in all practical and available ways with local, state and federal government agencies so as to maximize utilization of grant funds and to enhance the effectiveness of operations and to minimize costs. G. Duration. This Agreement shall continue in effect for at least two years from creation of the Consortium. Additional one year renewals shall be approved by agreement of the Principals. Any Principal may withdraw from this Agreement by giving 60 days written notice to the Executive Board of its intention to terminate. A Principal shall not be entitled to reimbursement for its financial contributions to the Consortium. A Principal who withdraws shall hold the remaining Principals harmless against any resultant increased costs allocated to them,for a project or contract approved by the General Membership before its withdrawal. This Agreement shall be effective until terminated as provided herein. This Agreement may be terminated at any time by agreement of Principals holding at least 70%of the vote of all the Principals hereto. Upon termination of this Agreement, any assets acquired during the Iffe of the Agreement or any financial contributions remaining shall be disposed of in the following manner. 1.) All property contributed without charge by each Principal shall revert to the contributor, 2.) All property purchased after the effective date of this Agreement shall be distributed based on the percentage of the total annual charges assessed by the Executive Board during the period of this Agreement and paid by each Principal; 3.) All unexpended or reserved funds shall be distributed to the Principals based on their financial contribution on a pro rata basis. H. Hold Harmless. Except for acts or omissions which are dishonest, fraudulent, criminal or malicious, any loss or liability resulting from the acts or omissions of the Executive Board, or Administrator while acting within their scope of authonty under this Agreement shall be bome by the Consortium. If a claim, demand,or cause of action arises from any other negligent act or failure to act,or intentional wrongful act of one of the Principals or its agents or employees, that Principal shall hold the Consortium and other Principals harmless except to the extent that the harm complained of arises from the negligence or other fault of another Principal; provided, that 'Fault" as herein used shall have the same meaning as set forth in RCW 4.22.015. 1. Insurance. The Consortium may obtain and provide insurance for the Executive Board and the Administrator for coverage consistent with the terms of this Agreement. J. Amendments. This Agreement may be amended by written agreement of the legislative bodies of all the Principals hereto. 5 K. Severability. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this Agreement shall not affect the validity of the remainder of the Agreement. L. Effective Date. The effective date of this Agreement shall be the date of filing with the appropriate County Auditors, the Secretary of State, and the Clerk of each Principal. IN WITNESS WHEREOF, this Agreement has been executed by each party on the date set forth below. CITY OF BELLEVUE Approved as to Form: Chuck Mosher Lori Riordan Mayor C i ty of 13-awue Assistant City Attorney Date: [. Date: G I2 3 IUD COUNTY OF Approved as to Form: Donald D. Rode Wavn . Tanaka City Manager City Attorney Date: ia, FOOD Date: j4,L lad a ODO CITY OF Woodinville Approved as to Form: CaT CQi+►k4ejlt& Date: Date: CITY OF Approved as to Form: 6 Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: KENT CITY CODE AMENDMENT, CAPITAL FACILITIES ELEMENT YEARLY UPDATE PROCESS, ORDINANCE—ADOPT 2 SUMMARY STATEMENT: Adoption of Ordinance No. amending Chapter 12.02 of the Kent City Code, to add provisions for considering city initiated amendments to the comprehensive plan more than once per year and providing for a public hearing before the City Council rather than the Land Use and Planning Board for certain amendments to the Capital Facilities Element 3. EXHIBITS: Ordinance; Staff report; Land Use & Planning Board minutes of 5/27/03; and staff memo dated 7/8/03 4. RECOMMENDED BY: Planning Committee is (Committee, Staff, Examiner, Commission, etc.) 5 UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6 EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION- Council Agenda Item No. 6D COMMUNITY DEVELOPMENT Fred N Satterstrom, AICP, Director PLANNING SERVICES . K EN T Charlene Anderson,AICP, Manager W/�SMINGTON Phone 253-856-5454 Fax 253-856-6454 Address 220 Fourth Avenue S Kent, WA 98032-5895 DATE: JULY 8, 2003 TO: MAYOR JIM WHITE, COUNCIL PRESIDENT JUDY WOODS AND CITY COUNCIL MEMBERS FROM: CHARLENE ANDERSON, AICP, PLANNING MANAGER THROUGH: PLANNING COMMITTEE, LAND USE & PLANNING BOARD SUBJECT: KENT CITY CODE AMENDMENT #CPA-2003-1 CAPITAL FACILITIES ELEMENT YEARLY UPDATE PROCESS SUMMARY: At their June 171h meeting, the Planning Committee recommended approval of the Land Use & Planning Board's recommendation to amend Kent City Code Sections 12 02 010 and 060 and to delete Section 12 02 035 as proposed by staff The amendments provide for consideration of city- initiated amendments to the comprehensive plan more frequently than once per year and provide for a public hearing before the City Council rather than the Land Use & Planning Board for certain amendments to the Capital Facilities Element BUDGET IMPACT None MOTION: Adoption of Ordinance No amending Chapter 12 02 of the Kent City Code, to add provisions for considering city initiated amendments to the comprehensive plan more than once per year and providing for a public hearing before the city council rather than the land use and planning board for certain amendments to the Capital Facilities Element BACKGROUND: RCW Section 36 70A 130 states that amendments to the comprehensive plan can be considered by the goveming body no more frequently than once every year except under a limited number of circumstances, which include an amendment of the capital facilities element that occurs concurrently with the adoption or amendment of the city budget The capital facilities plans of the Kent and Federal Way School Districts are part of the Capital Facilities Element of the Kent Comprehensive Plan, as is the City's Capital Facilities Plan For the past several years both the school districts and the Kent Finance Department have submitted updated plans as part of the annual comprehensive plan amendment process The updated plans have been considered by the Land Use & Planning Board and have been forwarded to the City Council along with applications from the private sector As provided for in RCW 36 70A 130 and Kent City Code 12 13 070, the proposed amendments to Kent City Code allow the City Council to hear and consider the City's 6-year financing plan and the capital facilities plans for the school districts concurrently with the annual budget The code amendment details of the proposal are provided in the ordinance The proposed procedural amendments are categorically exempt under the provisions of SEPA Rules per WAC 197-11-800(20) CA\pm S�Pemit�Plan20NECODEAMEND\2003\2031290-2003-Icc doc Eric Ordinance Minutes of 5/27/03 LU&PB hearing 5+19/03 Staff Report to Board COMMUNITY DEVELOPMENT Fred N Satterstrom, C D Director PLANNING SERVICES Charlene Anderson,AICP, Manager KENT Phone 253-856-5454 Fax. 253-856-6454 Address 220 Fourth Avenue S Kent,WA 98032-5895 LAND USE & PLANNING BOARD MINUTES PUBLIC HEARING MAY 27, 2003 The meeting of the Kent Land Use and Planning Board was called to order by Chair Ron Harmon at 7 00 p.m on Monday, April 28, 2003 in Chambers West of Kent City Hall LUPB MEMBERS PRESENT: STAFF MEMBERS PRESENT: Ron Harmon, Chair Charlene Anderson, AICP, Planning Manager Nicole Fincher, Vice Chair Gloria Gould-Wessen, Planner, GIS Coordinator Steve Dowell William Osborne, Planner Deborah Ranniger Kim Adams-Pratt, Asst City Attorney Pamela Mottram, Administrative Secretary LUPB MEMBERS ABSENT: Jon Johnson, Excused David Malik, Excused Greg Worthing, Excused • APPROVAL OF MINUTES Nicole Fincher MOVED and Deborah Ranniger SECONDED to approve the Minutes of April 28, 2003 Motion CARRIED ADDED ITEMS: None COMMUNICATIONS Planning Manager Anderson stated that the Planning Committee considered zoning code amendments #ZCA-2003-1 Auto Repair as Home Occupations, #ZCA-2003-3 Auto Repair and Washing Services in M-3 Zoning District, and #ZCA-2002-2 NCC, Neighborhood Convenience Commercial District at their May 20, 2003 meeting unanimously recommending approval to the City Council Ms Anderson stated that these amendments will be placed on the Consent Calendar for the July 1, 2003 City Council meeting NOTICE OF UPCOMING MEETINGS Ms. Anderson stated that a joint meeting will be held with the City of Sea Tac and the Land Use and Planning Board at Sea Tac City Hall on June 16 at 6 00 pm. #CPA-2002-1 COMPREHENSIVE PLAN UPDATE CH 5 COMMUNITY DESIGN Planner, William Osborne stated that the Community Design Element has been in the process of revision for over a year A number of changes have been made with consideration to recommendations made by staff, citizens, and the Board. All changes made to the onginal Comprehensive Plan document have been tracked, and are indicated with strikethroughs for deletions and underlines for insertions. Each succeeding revision to an element of the Comprehensive Plan has indicated the most recent changes, including removal of previously suggested additions or deletions. Mr. Osborne stated that the Community Design Element is the policy guide for the physical manifestation of several comprehensive plan elements including the Land Use, Capital Facilities and Transportation Elements. Mr. Osborne articulated the changes made since the Board's March 240'workshop. He stated that the term pedestrian oriented" was replaced with "pedestrian friendly" in the first paragraph of the Introduction as suggested by Board member Johnson. Mr. Osborne stated that throughout the element, reference to the Parks Element has been changed to"Parks and Open Space Element", to reflect the new title for that element Mr. Osborne stated that attention has been brought to the topical sections in the introduction of this element with the addition of text stating "As noted in each of the topical sections below,..." Mr. Osborne stated that most of these issues were raised ongmally in 1992 In the Community Forum on Growth Management and Visioning Mr Osborne stated that the reference to automobiles has been generally changed to motor vehicle, to incorporate other forms of motor vehicles such as trucks, motorcycles or mopeds, if one wanted to consider these as a motor vehicle rather than a bicycle. Mr. Osborne stated that there are language changes to Policy CD-2 3 referring to streets He stated that the language "in consideration of existing budding features" was added to Policy CD-2.4 as suggested by former Board member Thomas. Mr. Osborne stated that staff has added language "appropriate opportunities"to Policy CD-2 6. Mr. Osborne stated that the term motor vehicle"replaces automobile"In Goal CD-3 Mr. Osborne stated that the term "landscaping" has been removed from CD-3 2 to acknowledge other permeable barriers Mr. Osborne stated that one of the concerns of the Board was the coordination of amenities for transportation mode connections. Mr. Osborne said that staff changed language to say that the City would encourage the location of transit type facilities, rather than to coordinate the location of those facilities, as there may be a responsible agency such as Sound Transit or King County Metro to provide those facilities. Mr. Osborne stated that although Board member Dowell voiced concern with reference to Policy CD-5 1, staff has not made any changes He stated that staff feels that the existing policy language addresses the avoidance of blank walls. Mr. Osborne stated that the term activity centers"has been replaced with "activity areas". He stated that Transit Agencies are encouraged to provide attractive and distinctive shelters that are tied to the identity of the city. Mr. Osborne stated that CD-6 4 addresses Mr. Dowell's concerns regarding street walls He stated that this policy has been added to the Community Design Element and reads "Encourage ground floor budding fagade treatments and activities that generate pedestrian interest and comfort. Large windows, canopies, arcades, plazas and outdoor seating are examples of such amenities " Mr. Osborne stated that language was changed in Policy CD- 11.2 with some of this language replicated In CD-6 4 He stated that CD-11.4 is changed, incorporated and copied into CD-6 4. Mr. Osborne stated that the term"mixed use" as been removed from Policy CD-8.5 Mr. Osborne stated that the phrase "by encouraging structured parking" has been removed from CD-11.8 because the city has regulations encouraging structured parking. He stated that Land Use and Planning Board Minutes staff desires to reduce the visual impact of off-street parking in the downtown area without discouraging parking for downtown businesses Mr. Osborne stated that a reference to the Kent Downtown Design Guidelines has been added to Goal CD-12. Mr. Osborne stated that in the Residential Development section, the term "and fencing" has been added to acknowledge that many problems with the larger apartment complexes was that they were basically isolated with undesirable design features Mr Osborne stated that in the Residential Development section, it acknowledges that multifamily complexes "comprise a large amount of Kent's housing stock" At this time single family housing is outpacing the development of multifamily housing in Kent. Mr. Osborne stated that Goal CD-14 is redefined to reflect the City's desire to lay out neighborhoods oriented to the pedestrian and fostering a sense of community The changes to the Policies under CD-14 address these issues and the concerns of the Board members about the block length issue. Mr Osborne stated that there are regulations limiting block lengths to 500 feet with flexibility in the design review and application review process Mr Osborne stated that the revisions to Policy CD-14 2 reflect a connection with community Mr Osborne stated that Policy CD-14 3 has been moved to CD-15.5, where it is more representative of that goal referring to setbacks. Mr. Osborne stated that Goal CD-15 refers to residential site design and architecture and addresses setbacks. He pointed out changes to CD-15 2 which includes limiting the repetitive character of new development. Mr Osborne stated that terminology "Establish flexible standards for small lot design " has been removed from Policy CD-15 3 Mr Osborne stated that the intent of this policy is to address garages, where to site them, and how to organize them to maximize the efficiency and use of the overall site area. Mr Osborne stated that Policy CD-15 5 has been moved from Goal CD-14 He stated that parking"has been included in Policy CD-15 6 as one of the amenities that could be commonly owned within clustered, cottage or attached single family residential housing types Mr. Osborne stated that in Policy CD-15 7 the term "pleasing addition " was changed to "complimentary to neighborhoods...", Mr. Osborne stated that in regards to Board member Malik's concern over Planned Unit Developments, no change was made to Policy CD-15 11 as the language is general and states that the city would "utilize the PUD process where appropriate to realize the benefits of desirable community design"which would be addressed through development regulations. Mr. Osborne stated that "public spaces' was rephrased to "public open spaces" in CD-18 to acknowledge that the city is referring to spaces that can be used for passive or active recreation. Mr. Osborne stated language has been both added and deleted to the "Environmentally Sensitive Design and Construction" section, explanatory of the Built Green Program which is the Master Builder's Association of King and Snohomish County, a voluntary incentive based certification program, the Leadership in Energy and Environmental Design (LEED) sponsored by the US Green Building Council, a voluntary consensus based program that sets national standards for passive energy use; and Low Impact Development is an approach to minimizing the impacts on land. Land Use and Planning Board Minutes Mr. Osborne referenced the following goals and policies added to the "Environmentally Sensitive Design & Construction section of the Community Design Element: Goal CD-21, Policy CD-21.1, Policy CD-21 2, Policy CD-21.3, Goal CD-22, Policy CD-22 1, Policy CD-22 2 and Policy CD-22.3. Mr. Osborne defined a "rain garden" per Deborah Ranniger's request Ms Fincher spoke about her concerns with vehicular movement as it is stated in Policy 14.1. Mr. Osborne stated that the intent of this policy is to support safe pedestrian, bicyclist and vehicular movement. Chair Harmon questioned the intent of Policy 15.1 and 15.6 & 7. Mr. Osborne stated that this policy encourages the development of cluster, cottage, attached single-family and multifamily housing within a neighborhood context The intent of the language is to establish design standards so that when this type of housing is developed, it will fit into the existing neighborhood context. Chair Harmon declared the Public Hearing open Seeing no speakers, Steve Dowell MOVED and Nicole Fincher SECONDED to close the Public Hearing Motton CARRIED. Steve Dowell MOVED and Deborah Ranniger SECONDED to accept CPA-2002-1, Comprehensive Plan Update, Chapter 5 Community Design Element, as recommended by staff. Motion CARRIED #CPA-2003-1 CAPITAL FACILITIES ELEMENT YEARLY UPDATES PROCESS Planning Manager, Charlene Anderson stated that this proposal comes before the Board as a result of issues in the past with the annual comprehensive plan amendments. She stated that the City receives private requests for amending the comprehensive plan and zoning, as well as capital facilities updates from the Kent and Federal Way School District, and the City itself as required annually Ms Anderson stated that the capital facilities updates include suggestions regarding school impact fees that are implemented as code Ms. Anderson stated that the State requirements in GMA allow these capital facilities updates to occur with the annual budget Ms. Anderson stated that this proposal is a request to allow the City Council to hold a public hearing at the time they consider the annual budget to address the City's Six Year Capital Improvement Program as well as consider the School Districts Capital Facilities Plans which include impact fees. Chair Harrison declared the Public Hearing open. Seeing no speakers, Steve Dowell MOVED and Nicole Fincher SECONDED to close the Public Hearing. Steve Dowell MOVED and Nicole Fincher SECONDED to approve #CPA-2003-1 Capital Facilities Element, Yearly Update Process, as recommended by staff, sending this on to City Council. Motion CARRIED Ms Anderson stated that this item will be considered by the Planning Committee on June 17th and will possibly be considered at the July 15'" City Council meeting. The sixty day State notification prevents this item from being moved to Council sooner ADJOURNMENT Chair Harmon adjourned the meeting at 7 50 p m Respectfully Submitted, Charlene Anderson, AICP, Planning Manager Secretary, Land Use and Planning Board S 1PennR�PIanXLUP0\2003V.4mutes%052703mm doe Land Use and Mannino Board Minutes COMMUNITY DEVELOPMENT Fred N Satterstrom,AICP, Director PLANNING SERVICES K E N T Charlene Anderson,AICP,Manager W"s"'""TD" Phone 253-856-5454 Fax 253-856-5454 Address 220 Fourth Avenue S Kent, WA 98032-5895 DATE: MAY 19, 2003 TO: CHAIR RON HARMON AND MEMBERS OF THE LAND USE AND PLANNING BOARD FROM: CHARLENE ANDERSON,AICP,PLANNING MANAGER SUBJECT: CAPITAL FACILITIES PLANS—UPDATES TO COMPREHENSIVE PLAN LUPB Public Hearing May 27, 2003 INTRODUCTION: At their March 18, 2003 meeting, the City Council Planning Committee directed staff to move forward with a proposal to explore options for updating the Capital Facilities Element of the Kent Comprehensive Plan concurrent with the annual budgeting process Staff introduced at the May 12th Land Use & Planning Board workshop proposed amendments to Kent City Code to allow updates of the Capital Facilities Element of the Comprehensive Plan to include updates of the School District Capital Facilities Plans and the City's Capital Facilities Plans concurrent with adoption of the city's budget BACKGROUND- RCW Section 36 70A 130 states that amendments to the comprehensive plan can be considered by the governing body no more frequently than once every year except under a limited number of circumstances, which include an amendment of the capital facilities element that occurs concurrently with the adoption or amendment of the city budget. Kent City Code (KCC) Section 12 02 010 states the City Council shall consider amendments to the Kent comprehensive plan no more than once each calendar year, except if an emergency exists Kent City Code currently does not provide for an exception for the annual budget or other exceptions allowed by the Growth Management Act In March 1996,Ordinance#3281 adopted the school districts' capital facilities plans as part of the Capital Facilities Element of the Kent Comprehensive Plan and established an impact fee schedule KCC 12 13 060 requires school distracts on an annual basis to submit their updated capital facilities plan, and KCC 12.13 070 requires Council review of the updates in conjunction with any update of the Capital Facilities Element of the Kent Comprehensive Plan. RCW Section 36.70A 070 requires Capital Facilities Elements to contain an inventory of existing public facilities, a forecast of future needs, the location and capacity of proposed facilities, and a six-year financing plan with projected funding capacities, and to coordinate the land use element, capital facilities element, and financing plan. The City Council reviews the 6-year financing plan annually during the budget cycle. The school districts capital facilities plans also address 6-year financing. Staff believes both the City's 6-year financing plan and the capital facilities plans for the school distncts may be considered by the City Council concurrently with the annual budget. LUPB Public Hearing 5/27/03 Capital Facilities Plans—Updates to Comprehensive Plan Staff Report Page 2 RECOMMENDATION: Following are the specific amendments for which staff is recommending Board approval. Code Amendment Details• 1) Amend KCC 12 02.010 as follows. "The city council shall consider amendments to the comprehensive plan no more than once a year except as pi:Ewlded .n KGG „ 02 rn c under the following_circumstances, which may be processed separately and in addition to the standard annual update: a) If an emergency exists, (An emergency is defined as an issue of community-wide silznificance that promotes the public health, safety,and general welfare) b) To resolve an appeal of a comprehensive plan filed with a growth management hearings board or with the court. c) The adoption or amendment of a shoreline master program under the procedures set forth in chapter 90 58 RCW: d) The initial adoption of subarea plan,and e) The amendment of the capital facilities element of the comprehensive plan that occurs concurrently with the adoption or amendment of the city budget 2) Amend KCC 12.02.060, Hearing procedures — Notice requirements, to read, "The planning depaHnient services office shall prepare a report and recommendation on proposed plan amendments which shall be presented to the planning eemmissiefiland use and planning board at a public hearing For amendment of the capital facilities element of the comprehensive plan that occurs concurrently with the adoption or amendment of the city budget, the city council will hold the public hearing instead of the land use and planning board 3) Delete KCC 12 02 035. Staff will be available at the May 27'h hearing to present the proposal. CAVni S.1Penmt%Plan\ZONECODEAMEND12003icapfacihueslupbpb dm cc Fred N Sanerstrom,AICP,CD Director Charlene Anderson,AICP,Planning Manager Project File ORDINANCE NO. AN ORDINANCE of the city council of the city of Kent, Washington, amending Chapter 12 02 of the Kent City Code, to add provisions for considering city initiated amendments to the comprehensive plan more than once per year and providing for a public hearing before the city council rather than the land use and planning board for certain amendments to the Capital Facilities Element. WHEREAS, in accord with RCW 36.70A 130, the city council desires to amend chapter 12 02 of the Kent City Code, to add provisions for considering city initiated amendments to the comprehensive plan more than once per i year and providing for a public hearing before the city council rather than the land use and planning board for certain amendments to the Capital Facilities Element, and WHEREAS, after providing appropriate public notice, the city held a public hearing on this modification proposal at the regular land use and planning board meeting held on May 27, 2003, and WHEREAS, the planning committee considered this matter at the regularly scheduled meeting on June 17, 2003, and 1 Captial Facilities Plans— Comprehensive Plan Update WHEREAS, on May 5, 2003, the city provided notification to the State of Washington under RCW 36 70A.106 of the city's proposed amendment to add provisions for considering city initiated amendments to the comprehensive plan more than once per year and providing for a public hearing before the city council rather than the land use and planning board for certain amendments to the Capital Facilities Element, and WHEREAS, the sixty (60) day notice period under RCW 36 70A 106 has elapsed, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION I. — Amendment Chapter 12 02 of the Kent City Code is amended as follows. CHAPTER 12 02 PROCEDURES FOR AMENDMENTS TO COMPREHENSIVE PLAN Sec. 12.02.010. Amendments. The city council shall consider amendments to the Kent comprehensive plan no more than once each calendar year, except as pre..,aed in KCG 12 02 035.under the following circumstances, which may be processed separately and in addition to the standard annual update• a If an emergency exists which is defined as an issue of community wide significance that promotes the public health safety, and general welfare,• b To resolve an appeal of a comprehensive plan filed with a growth management hearings board or with the court, c To adopt or amend a shoreline master program under the procedures set forth in chapter 90 58 RCW: 2 Captial Facilities Plans— Comprehensive Plan Update d The initial adoption of a subarea plan, and e The amendment of the capital facilities element of the comprehensive plan that occurs concurrently with the adoption or amendment of the city budget Sec. 12.02.020. Concurrent review. In considering annual amendments to the comprehensive plan, city staff, the planning eammissilanland use and planning board, and the city council shall consider all proposed amendments concurrently so as to assess their cumulative impact. I Sec. 12.02.030. Time of filing. Annual amendments to the comprehensive plan shall be submitted to the Kent planning services office depaftment-by September 1 of each calendar year Requests for amendments shall be submitted on forms prescribed by the planning services officedepartmeet Incomplete amendment applications will not be accepted for filing. Requests received each year after • September I shall be considered in the following year's comprehensive plan amendment process I I See 12.02.035. Emergeney amendments. The city e eel m sidef i i u d adopt RF r@VjSj8HS tO the eOffiffelieRsive pia fnere than eflee a yea i if anemergeney eg fists An emergeney is-defiAcd as an—issue-of eemmunity wide signifieanee that p metes the ,.ublie health, t..,saf and g r-al wel faFe Enief:geney eompFeliensive plan a end..,ents ni be p sed s tel. and in „dd.tiOR t.. thstandard annual update See. 12.02.040. SEPA review. After September I of each calendar year, the city's responsible official shall review the cumulative anticipated environmental impact of the proposed comprehensive plan amendments, pursuant to the Washington State Environmental Policy Act (SEPA) If the responsible official determines that a draft final or supplemental environmental impact statement (EIS) 3 Captial Facilities Plans- Comprehensive Plan Update or other appropriate environmental review is warranted, applicants may be responsible for a full or proportionate share of the costs of preparing the EIS as 11 determined by the responsible official I' See. 12.02.050. Standard of review. The planning services officedepaAme»t may recommend and the city council may approve, approve with modifications or deny amendments to the comprehensive plan text or map designations based upon the following criteria Ij 1 The amendment will not result in development that will adversely I affect the public health, safety and general welfare, and 2. The amendment is based upon new information that was not available at the time of adoption of the comprehensive plan, or that circumstances have changed since the adoption of the plan that warrant an amendment to the plan, and 3 The amendment is consistent with other goals and policies of the comprehensive plan, and that the amendment will maintain concurrency between the land use, transportation, and capital facilities elements of the plan See. 12.02.060. Hearing procedures— Notice requirements The planning depafErrlent-services office shall prepare a report and recommendation on proposed plan amendments which shall be presented to the planning ,,,... miss.,.., land use and planning board at a public hearing For an amendment of the capital facilities element of the comprehensive plan that occurs concurrently with the adoption or amendment of the citLQet, the city council will hold the public hearing instead of the land use and planning board For proposed text amendments, notice of public hearing shall be given in at least one (1) publication in the local newspaper at least ten (10) days prior to said hearing. For plan map amendments, notice of public hearing shall be given both by publication in the local newspaper as prescribed above, and by notification of all property owners within two hundred (200) feet of the affected property Affected property is defined as the parcels identified by the applicant, plus any additional parcels contiguous to the applicant's property which 4 Captial Facilities Plans— Comprehensive Plan Update . the planning manaeerdiieeteF determines should also be considered The following criteria should be used in deciding whether to expand the geographic scope of a proposed amendment I The effect of the proposed amendment on the surrounding area, i I 2. The effect of the proposed amendment on the land use and circulation pattern of the area, and 3. The effect of the proposed amendment on the future development of the area. i Following a tlpubhc hearing by the land use and plannmg boardpg eemmissien, the planning services office dePTrecommendation shall be forwarded to the city council for action I Sec. 12.02.070. City council action. Within sixty (60) days after receipt of the planning services office depaARmit-recommendation, the city council shall either affirm, deny, or modify or return the application to the planning department for further consideration In the event the city council modifies the recommendation, it shall make its own findings and set forth in writing the reasons for the action taken I Sec. 12.02.080. Standing. Comprehensive plan amendments may be initiated by the city planning services officedepanment or other administrative staff of the city, private citizens, or the city council Sec. 12.02.090. Fees. Application fees for comprehensive plan amendments shall be the same as the fee established for rezones Sec. 12.02.100. Appeals. Appeals from a decision of the Kent city council shall be pursuant to Chapter 36.70A RCW. 5 Captial Facilities Plans— Comprehensive Plan Update SECTION 2. — Savtnzs The existing chapter 12.02 of the Kent City . Code, which is amended by this ordinance, shall remain in full force and effect until the effective date of this ordinance SECTION 3. —Severability If anyone or more section, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect SECTION 4. — Effective Date This ordinance shall take effect and be in force thirty (30) days from and after passage as provided by law. JIM WHITE, MAYOR I ATTEST: BRENDA JACOBER, CITY CLERK i APPROVED AS TO FORM TOM BRUBAKER, CITY ATTORNEY PASSED- day of July, 2003 APPROVED day of July, 2003. PUBLISHED- day of July, 2003 I 6 Captial Facilities Plans— Comprehensive Plan Update I hereby certify that this is a true copy of Ordinance No passed by the city council of the city of Kent, Washington, and approved by the mayor of the city of Kent as hereon indicated (SEAL) BRENDA JACOBER, CITY CLERK PIGvd0Mtpe ce 1202-CapwlFuilme$Upda din I 7 Captial Facilities Plans— Comprehensive Plan Update . Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: PURCHASE OF ONE REPLACEMENT FIRE ENGINE— AUTHORIZE 2. SUMMARY STATEMENT: Authorization for the Mayor to sign the contract between the City of Kent and Pierce manufacturing for the purchase of one (1) replacement fire engine. Staff requests authorization to purchase one (1) fire engine to replace a 1990 Pierce fire engine (apparatus 732) that has 94,175 miles, from the previous vendor, Pierce Manufacturing, which is also the manufacturer of the four(4) newer fire engines purchased in 2001. Due to safety, maintenance and efficiency issues a request was made, and approved by the Mayor that the bidding process usually required by Kent City Code, Section 3.70.030 and .040 was not in the best interest of the City and that the Fire Department be allowed to enter into direct negotiations with Pierce Manufacturing for the purchase of this replacement fire engine. 3 EXHIBITS: Letter to Mayor 4. RECOMMENDED BY: Fire Chief and Public Safety Committee 7/8/03 (3-0) (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $490,000 SOURCE OF FUNDS: Fire Dept Apparatus Replacement Fund 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6E • KENT WASHINGTON May 21, 2003 FIRE TO: Mayor Jim White Jim Schneider Fire Chief FR: Jim Schneider, Fire Chief Director ofEmerwncyMgmt RE- Purchase of a Fire Engine 220 Fourth Ave S Kent,WA 98032-5895 Dear Mayor White, Administration 253-856-4300 Prevention 253-8564400 This is a request to allow the Fire Department to purchase one (1) Pierce Quantum fire engine using a contract similar to the previous contract for Pierce Quantums, three (3) of which were purchased by the City and one (1) that was purchased by King County Fire District#37. The Kent Fire Department has purchased Pierce fire engines since (at least) 1978, and the reliability has been excellent Due to a decision by the sales representative of Pierce Manufacturing, Inc , the company did not bid in 1995 when we purchased two (2) fire engines Without a bid from Pierce, the bid was awarded to Boise Mobile Equipment (BME) Our experience with the two (2) BME engines cost the City a tremendous amount of money and repair time, resulting in a refection of the fire engines after having them for two (2) years Of the two (2) years we had the fire engines, they were out-of-service for one (1) year, and only in- service for one (1) year That caused a great deal of frustration and lost maintenance time In 2000, we were given permission by the Kent City Council to purchase three (3) fire engines and at the same time, King County Fire District #37 authorized the purchase of one (1) engine. We were able to "piggy-back" on a bid at that time, from Mesa, Arizona As a result, the Department purchased four (4) first-rate fire engines that were placed in service in late 2001 It is our request that we be authorized to purchase one (1) fire engine from Pierce Manufacturing, Inc that is substantially the same as the previous four (4) engines. The primary reasons for this request deal with safety, cost savings and efficiency of operation. Currently our Department has nearly 100 firefighters who are qualified as fire engine driver/engineers. With that number, it is very difficult to maintain proficiency because they do not individually get the chance to drive often enough, which is a definite safety issue We have two(2) basic styles of engines with their own, unique pump panels and other features critical to the operating efficiency by a pump operator. As mentioned above, it is difficult to maintain proficiency when a firefighter does not drive an apparatus very often, and when he/she does (under emergency conditions), it is challenging with two (2) different styles and arrangements of fire engine. We have been able to work around this issue up to this point However, if we were to add another type of apparatus, built by a company with their own, unique style, it would definitely complicate the matter. Another cost efficiency consideration, is having our mechanics maintain different apparatus, and the need to stock parts from a different manufacturer. Currently they deal with one company and stock parts that are often consistent between engines The purchase of an engine from a different manufacturer may result in the need to stock different parts from different manufacturers. In addition, it is much more efficient for city mechanics to become familiar with, and maintain, engines produced by the same manufacturer Although not the least expensive, we believe that Pierce Manufacturing, Inc., makes the best fire engine for our application, and the benefit of having consistency with our fire engines, provides a safer and more efficient operation. Authorization of this purchase would be advantageous to the interest of the City and the Fire Department By this memo, the Fire Department requests that you determine that the bidding process usually required by Kent City Code Section 3 70 030 and 040 is not in the best interest of the city. The Department requests that the Mayor authorize the city to enter direct negotiations with Pierce Manufacturing, Inc for the purchase of one (1) engine. In the event that the Department successfully negotiates a purchase contract, the contract will be brought before the Public Safety Committee and the City Council for approval. Signed, `tJiar OSGV.✓�-�.A�w� Jim Schneider, Fire Chief I, Mayor Jim White, find that, in lieu of the formal bid or request for proposal process, negotiating with Pierce Manufacturing for the purchase of one (1) fire engine would best serve the interests of the city. Therefore, I hereby authorize the Fire Department to negotiate a contract for the purchase of one (1) fire engine from Pierce Manufacturing, Inc , that is substantially similar to the previous four (4) engines purchased in 2001 Ji White, Mayor Date tity of Kent Approved by 6 4pa4trik Date Deputy City Attorney • Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: FLEXPASS CONTRACT 2003-2004—AUTHORIZE 2. SUMMARY STATEMENT: Authorize the Mayor to sign the administrative contract with King County and Sound Transit effective July 1, 2003 through June 30, 2004, to renew the City of Kent contract with King County and Sound Transit for the F1exPass Program The F1exPass Program will be available to approximately 442 eligible CTR affected, benefited employees at a cost of$25,858 per year for the twelve month period (July 1, 2003-June 30,2004). 3. EXHIBITS: Contract . 4 RECOMMENDED BY: Operations Committee 7/l/03 (3-0) (Committee, Staff, Examiner, Commission, etc.) 5 UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: General Fund 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6F OFFICE OF THE MAYOR Jim White, Mayor Phone 253-856-5700 Fax 253-856-6700 KEN T Address 220 Fourth Avenue S WA5HINGTON Kent,WA 98032-5895 DATE: July 1, 2003 TO: Kent City Council Operations Committee FROM: Ellen Bradley-Mak, Employee Transportation Coordinator THROUGH Sue Viseth, Employee Services Director SUBJECT: Flexpass Contract 2003-2004 SUMMARY: Renewal of the City of Kent contract with King County and Sound Transit for the F1exPass Program The F1exPass Program will be available to approximately 442 eligible CTR affected, benefited employees at a cost of$25,848 per year for the twelve month period(July 1, 2003 —June 30,2004) BUDGET IMPACT $25, 000 is allocated in the CTR budget MOTION: I move to recommend that council authorize the Mayor to sign the administrative contract with King County and Sound Transit effective July 1, 2003 through June 30, 2004 BACKGROUND: In 1991, the State Legislature passed the Commute Trip Reduction or CTR law, which was incorporated into the Washington Clean Air Act The goals of the CTR program are reducing traffic congestion, air pollution, and petroleum consumption through employer-based programs that decrease the number of commute trips made by people driving alone Counties that are affected by CTR, and the cities within those counties, are required to provide support to local employers in implementing CTR programs The Public Works department is responsible for administering and enforcing the City wide program that is comprised of over 40 employers within the City limits. Employee Services is responsible for administering our organizational CTR program Our City ordinance requires that employers make a good faith effort to comply with CTR goals The results of our last employee survey, which was conducted in March of this year, indicate that we have reduced the number of single occupancy vehicle trips from the baseline of 85%to 68% Our goal is to reduce the number of single occupancy trips to 55% by 2005 FlexPass Costing 2003-20M Contract Year As of June, 2003 • For 2002- 2003 Total cost of FlexPass program: $44,300 For 2003 - 2004 King County/Sound Transit proposed cost: $49,811 Less Employee Cost sharing: $25,768 Less VanPool expansion grant: $12,000 Total Net Cost of FlexPass: $13,763 AGREEMENT FOR SALE OF FLEXPASSES BETWEEN KING COUNTY, SOUND TRANSIT AND CITY OF KENI This Agreement(hereinafter,"Agreement")is made and entered into by and between King County(hereinafter individually, "KING COUNTY"),Sound Transit(hereinafter individually,"SOUND TRANSIT"), or collectively referred to hereinafter as"TRANSPORTATION PARTIES", and City of Kent(hereinafter, "CITY") RECITALS A CITY and TRANSPORTATION PARTIES share the desire to provide a comprehensive transportation pass program that will reduce single occupant vehicle(SOV)commute trips and improve the mobility of CITY employees B KING COUNTY and SOUND TRANSIT are authorized to provide public transportation and generally promote alternatives to SOV commuting in King County,Pierce County and Snohomish County C CITY has a desire to provide incentives and benefits to its employees,which promote non-SOV commuting to its worksite D CITY and TRANSPORTATION PARTIES desire to create a single pass media that can be used to access a variety of services and benefits,which enable CITY employees to commute,by non-SOV modes AGREEMENT NOW,THEREFORE, in consideration of the terms,conditions and covenants herein contained,the sufficiency of which is hereby acknowledged, the parties hereto agree to the following I PURPOSE if Purpose . This Agreement establishes a cooperative arrangement between TRANSPORTATION PARTIES and CITY for sale and distribution of FlexPasses to CITY's Eligible Employees at the rate set forth herein. 2 DEFINITIONS 21 Eligible Employees Eligible Employees shall mean only those employees of the CITY who meet the following criteria All CTR-affected eMplovees 22 FlexPass Card A FlexPass Card is a pass of predetermined duration,usually twelve (12)months,that allows each Eligible Employee,as defined in Paragraph 2 1,to choose from a variety of non-SOV commute options provided by CITY or TRANSPORTATION PARTIES. Each FlexPass Card shall bear the inscriptions"FlexPass,"CITY's narne,each TRANSPORTATION PARTIES' logo,or an agreed to regional logo and beginning and expiration dates in a design and color scheme mutually agreed upon by TRANSPORTATION PARTIES and CITY FlexPass Cards shall also bear a fare amount on the face of the card,the amount of wluch shall be agreed upon by TRANSPORTATION PARTIES and CITY prior to the start of this Agreement TRANSPORTATION PARTIES or their designated contractor shall produce FlexPass Cards FlexPass Card's are non-refundable by TRANSPORTATION PARTIES, except as set forth in Paragraph 8 2 Eligible Employees may be asked to present a valid CITY identification card when using a FlexPass,if available 23 Trip Revenue Trip revenue shall mean the cost of a single bus trip taken by a CITY's employee as set forth in Attachment A In the event of a generally applicable fare increase adopted by KING COUNTY or SOUND TRANSIT,the amount of the cost may be increased at such time as a generally applicable fare increase is implemented by KING COUNTY or SOUND TRANSIT,and CITY shall be required to pay the amount of such adjustment to the appropriate party FlexPass Agreement Page I of 13 City of Kent July 2003-June 2004 24 Baseline Trips Baseline Trips shall mean the estimated number of transit trips taken by CITY's Eligible Employees,as defined in Paragraph 2 1,in the twelve(12)months preceding execution of the CITY's new FlexPass Agreement Baseline Trips shall be calculated using the most current transit ridership data available on Eligible Employees,at the time said Agreement becomes effective Baseline Trips shall be used,in part,to calculate the price of the transit cost set forth in Attachment A Baseline Trips shall not change during the life of this Agreement,unless agreed toby TRANSPORTATION PARTIES for reasons such as a significant change in the number of Eligible Employees or a change in location of CITY's worksrte. 25 Added Trips Added Trips shall mean those trips taken by CITY's Eligible Employees that have exceeded Baseline Trips,as defined in Paragraph 2 4,during the period since Baseline Trips was established Added Trips shall be calculated using an estimate,based on a survey or other agreed upon equivalent data source,of current transit ridership by Eligible Employees Added Trips shall be used,in part,with Baseline Trips to calculate the price of renewing this Agreement for another term 3 EMPLOYEE CONTRIBUTIONS AND COMMUTE BENEFITS AND INCENTIVES 3 1 Eligible Employee Contributions CITY may require Eligible Employees to contribute toward the cost of a FlexPass Card, in the amount specified in Attachment B 32 CITY-Provided Incentives and Benefits CITY shall provide at least two(2)additional non-single occupant vehicle commute mode incentives or benefits, listed in Attachments A or B,as a condition of participating in TRANSPORTATION PARTIES'FlexPass program 4. CITY RESPONSIBILITIES 4.1 Eligible Recipients Of A FlexPass Card CITY shall ensure that only Eligible Employees,as defined in Paragraph 2 1,receive FlexPass cards 4.2 Ordering FlexPass Cards CITY shall provide to TRANSPORTATION PARTIES' representative,as listed in Section 16,the number of FlexPass Cards that CITY shall provide to Eligible Employees The number of FlexPass Cards shall be listed in Attachment A CITY shall allow TRANSPORTATION PARTIES at least four(4)weeks in advance of the cards' effectry a date to fulfill the request for FlexPass Cards CITY understands that failure to provide the number of FlexPass Cards destred at least four(4)weeks in advance, may incur additional and extraordinary costs Such costs may be related to,but are not linuted to,overtime staffing,additional manufacturing charges and express delivery charges. These additional and extraordinary charges shall be borne solely by CITY 43 Ordering Additional FlexPass Cards CITY shall retain the right to purchase additional FlexPass Cards for distribution to Eligible Employees,over and above the number specified in Attachment A,during the term of this Agreement CITY shall allow TRANSPORTATION PARTIES at least four(4)weeks to fulfill the request for additional FlexPass Cards Requests shall be made to the TRANSPORTATION PARTIES'representatne,as listed in Section 16 The cost for a single additional FlexPass Card shall be the Monthly Rate for Additional FlexPass Cards specified in Attachment A,tunes the number of whole and partial months remaining in the Agreement. 44 Receipt and Security of FlexPass Cards CITY agrees that all FlexPass Cards received from TRANSPORTATION PARTIES shall become the sole financial responsibility of CITY upon receipt and signature by an employee,official or agent of CITY CITY agrees that it is solely responsible for providing proper storage and security measures for any and all FlexPass Cards received by CITY while in the custody of CITY CITY shall be held liable for the equivalent value of a combination King County Metro/Sound Transit fare for each month remaining in this FlexPass Agr nwnt Page 2 of 13 City of Kent July 2003—June 2004 Agreement for each FlexPass Card that CITY cannot account for,either by distribution to an Eligible Employee, storage in a secure area,for each FlexPass Card not collected from an Eligible Employee who terminates their employment with CITY or otherwise becomes ineligible to receive and use a FlexPass Card under the terms of this Agreement,or for each FlexPass Card CITY cannot return to TRANSPORTATION PARTIES upon termination of this Agreement,as specified in Section 8 4.5 Reporting CITY shall immediately report to each of the TRANSPORTATION PARTIES any FlexPass Cards that are lost, stolen,damaged or otherwise not functioning property in TRANSPORTATION PARTIES transit coaches' electronic registering fareboxes CITY shall return any and all FlexPass Cards to TRANSPORTATION PARTIES that CITY believes to be defective. CITY shall report to TRANSPORTATION PARTIES all FlexPass usage, changes to CITY's transportation program and other details as necessary. 46 Roster of FlexPass Card Recipients CITY shall maintain a roster of Eligible Employees who have been provided a FlexPass Card by CITY Upon demand,CITY shall provide to each of the TRANSPORTATION PARTIES a copy of the roster. 47 FlexPass Employee Use Agreement Form Each Eligible Employee who receives a FlexPass Card front CITY shall be required to read,sign and return to their employee transportation coordinator or department supervisor,an agreement form stipulating the uses and conditions of a FlexPass Card The Employee Use Agreement Fortin, as set forth in Attachment C, is deemed mutually acceptable to both CITY and TRANSPORTATION PARTIES CITY shall keep use Agreement Forms on file for the term of this Agreement. 48 Collection of FlexPass Cards CITY shall return to TRANSPORTATION PARTIES all FlexPass Cards issued to CITY within five(5)days of the effective date of termination of this Agreement CITY shall be held liable for the equivalent value of a combination King County Metro/Sound Transit fare for each month remaining in this Agreement for each FlexPass Card not returned to TRANSPORTATION PARTIES upon termination of this Agreement. 49 Collection of Transit Ridership Data CITY shall survey,or otherwise collect from CITY's Eligible Employees,any and all necessary daily transit ridership and commute data that TRANSPORTATION PARTIES deem necessary to accurately and fairly estimate Trip Revenue,Baselme Trips and Added Trips TRANSPORTATION PARTIES shall provide to CITY a mutually agreed upon survey instrument or other suitable means in which to collect the most current and accurate ridership and commute data possible 410 FlexPass Program EN aluation CITY shall participate in any TRANSPORTATION PARTIES' evaluation of the FlexPass program,should such an evaluation be deemed necessary by any of the TRANSPORTATION PARTIES Evaluation maybe through such means as employee surveys, employee focus groups,and management interviews. TRANSPORTATION PARTIES shall provide CITY at least thirty(30)days advance notice prior to beginning such an evaluation 4 It Vanpool Services If an eligible employee elects to participate in KING COUNTY's vanpool program, CITY agrees to pay KING COUNTY the amount stated in Attachment A for such vanpool services As stipulated in Attachment A,Eligible Employees may use the FlexPass Card as partial or full payment of their vanpool fare If actual vanpool expenses incurred by Eligible Employees exceed the amount paid in advance by CITY,as specified in Attachment A,plus any vanpool incentive payment by KING COUNTY, also specified in Attachment A,KING COUNTY shall invoice CITY for any amount owing once total vanpool costs for the term of this Agreement are calculated by KING COUNTY 4 12 Home Free Guarantee If CITY elects to participate in KING COUNTY's Home Free Guarantee program,CITY shall fulfill all conditions and responsibilities of the Home Free Guarantee program in accordance with the terms attached hereto and made part hereof as Attachment D FlexPass Agreement Page 3 of 13 City of Kent July 2003—June 2004 5 TRANSPORTATION PARTIES RESPONSIBILITIES 5 1 Transit Access TRANSPORTATION PARTIES shall allow each CITY Eligible Employee displaying a valid FlexPass Card to nde on all parts of its regular route transportation system without additional charge,for trips up to the value punted on the card TRANSPORTATION PARTIES reserve the right to request additional payment at the time the transit trip is taken,if the cost of a trip on any TRANSPORTATION PARTY's regular transit service exceeds the fare value printed on the FlexPass Card FlexPass Cards are not valid on any Husky,Safeco Field,or other special event service TRANSPORTATION PARTIES shall honor each Flexpass Card issued under this agreement up to the expiration date on the Card or until this agreement is otherwise terminated 52 FlexPass Card Administration TRANSPORTATION PARTIES'Designated Representative shall manage production,ordering,replacement and delivery of FlexPass Cards to CITY,and other administrative tasks related to the FlexPass Card under this Agreement,other than those responsibilities stated as CITY responsibilities in Section 4 53 Replacement FlexPass Cards TRANSPORTATION PARTIES shall replace,at no additional cost to CITY,any FlexPass Cards deemed to be defective or otherwise unusable or inoperative CITY may be issued temporary full passes until TRANSPORTATION PARTIES can manufacture and deliver replacement FlexPass Cards TRANSPORTATION PARTIES shall replace a lost or stolen FlexPass Card only once at a charge of$50 00 per replacement card. 54 Confiscation of FlexPass Cards In addition to any other rights under law,TRANSPORTATION PARTIES reserve the right to cancel and confiscate a FlexPass Card which is used out of date,altered,duplicated,counterfeited,transferred or distributed to unauthorized persons or otherwise invalid under the terms of this Agreement 5 5 Collection of Transit Ridership Data TRANSPORTATION PARTIES shall provide to CITY,at no additional cost to CITY,a mutually agreed upon survey instrument or other suitable means in which to collect and measure the most current and accurate transit ridership and commute data of CITY's Eligible Employees In addition,TRANSPORTATION PARTIES shall pay for all costs incurred in processing this survey instrument,but not costs incurred by CITY in distributing to and collecting from Eligible Employees,this survey instrument TRANSPORTATION PARTIES shall make available to CITY, all data collected from CITY's Eligible Employees 56 Vanpool Services CITY's employees are eligible to access KING COUNTY's vanpool program in accordance mth established program procedures If applicable,KING COUNTY shall allow each Eligible Employee holding a FlexPass Card to register as a vanpool participant subject to the availability of vanpool vehicles and minimum ridership requirements If applicable, the FlexPass Card may be honored as full or partial payment of vanpool fares, as specified in Attachments A and B 57 Home Free Guarantee If CITY elects to participate in KING COUNTY's Home Free Guarantee program,KING COUNTY shall fulfill all conditions and responsibilities of the Home Free Guarantee program in accordance with the terms attached hereto and made part hereof as Attachment D 6 PAYMENTS AND BILLING 61 Payment for This Agreement CITY agrees to pay TRANSPORTATION PARTIES the total amount stated in Attachment A for participation in TRANSPORTATION PARTIES'FlexPass program KING COUNTY shall present an invoice for amounts due to CITY's representative listed in Section 16 KING COUNTY shall invoice CITY for the amount(s)due for SOUND TRANSIT. Payment shall be made in full by CITY according to the terms listed on the invoices,unless a payment schedule is mutually agreed upon by both parties and incorporated into this Agreement, in Attachment A KING COUNTY shall present individual invoices to CITY for additional FlexPass Cards purchased. KING COUNTY shall invoice CITY for the amount(s)due for SOUND TRANSIT for additional FlexPass Cards purchased FlexPass Agreement Page 4 of 13 City of Kent July 2003—June 2004 62 Late Payment Penalty If any scheduled payments are not made by their due date,then the entire amount due under this Agreement may become immediately due and payable Any late payment shall be subject to a penalty accruing at the maximum rate allowable by state law for each month that the payment remains due If any check made payable to any of the TRANSPORTATION PARTIES by CITY is returned to a TRANSPORTATION PARTY for insufficient funds (NSF)in CITY's checking account,then CITY shall be assessed a$25 (twenty-five)penalty by the TRANSPORTATION PARTY receiving the NSF check. 7. TERM OF AGREEMENT 71 Term This Agreement shall take effect upon the exact day and expire on the exact day specified in this paragraph,unless terminated in accordance with the terms set forth in Section 8 This Agreement shall take effect at 12 00 a m on July 1, 2003 and shall expue at 11 59 p.m on June 30,2004. 8. TERMINATION 81 Temmnation for Cause Any party may terminate this Agreement in the event the other falls to perform its obligations as described in this Agreement by providing,written notice not less than fourteen(14)days prior to the effective date of ternnauon. 82 Termination for Convenience Any party may also terminate this Agreement for convenience and without cause by providing the other party with written notice not less than sixty(60)days in advance If CITY has made payments in advance,CITY shall be entitled to reimbursement from each TRANSPORTATION PARTY for each valid FlexPass Card returned to TRANSPORTATION PARTIES Such reimbursement shall beat the monthly rate set forth in Attachment A for the full months remaining in the original term of the Agreement. If CITY has accrued additional financial obligations to any TRANSPORTATION PARTY as a result of the provisions of this Agreement,either prior to termination or as a result of terunation,CITY agrees to pay any outstanding amount due to that TRANSPORTATION PARTY The TRANSPORTATION PARTY shall invoice CITY for the amount due according to the procedures outlined in Section 6 9 RECORDS 91 Rights of Review Both CITY and TRANSPORTATION PARTIES shall retain the right to review records and documents related to this Agreement If a records review is commenced more than sixty(60)days after the termination of the contract, the TRANSPORTATION PARTY requesting the review shall give ten(10)days notice to CITY of the date on which the records review will begin 10. SUCCESSORS AND ASSIGNS 101 Written Approval This Agreement and all terms,provisions,conditions and covenants hereof shall be binding upon the parties hereto and their respective successors and assigns All parties,however,agree that they will not assignor delegate the duties to be performed under this Agreement without prior,written approval from the other parties 1 I LEGAL RELATIONS 11 1 No Partnership and No Third Party Beneficiaries It is agreed by CITY and TRANSPORTATION PARTIES that this Agreement does not create a partnership orl0int venture relationship between the parties,and does not benefit or create any rights in a third party 112 Force Maleure TRANSPORTATION PARTIES shall be excused from performance of any responsibilities and obligations under this Agreement,and shall not be liable for damages due to failure to perform,resulting directly or indirectly from causes and circumstances beyond their control,including but not limited to late delivery or nonperformance by vendors of materials or supplies,incidences of fire,flood,snow,earthquake or other acts of nature,accidents,no% insurrection,terrorism,acts of war,order of any court or civil authority,and strikes or other labor actions FlexPass Agreement Page 5 of 13 City of Kent July 2003—June 2004 113 Costs of Legal Action CITY shall be liable for any and all reasonable attorney fees,court costs and other expenses incurred by TRANSPORTATION PARTIES in the event TRANSPORTATION PARTIES pursue legal action to obtain the retina of any FlexPass Cards or amount owing under this Agreement 12 APPLICABLE LAW, FORUM 12.1 Terms This Agreement shall be governed by and construed according to the laws of the State of Washington Nothing in this Agreement shall be construed as altering or diminishing the tights or responsibilities of the parties as granted or imposed by state law. In the event that any litigation may be filed between the parties regarding this Agreement, CITY and TRANSPORTATION PARTIES agree that personal jurisdiction and venue shall rest in the Superior Court of the county where the TRANSPORTATION PARTY pursuing the action resides 13 DISPUTES 13.1 Dispute Resolution Procedure All claims or disputes ansing out of or relating to this Agreement shall be referred to a panel consisting of CITY's Benefits Manager,RING COUNTY's Division Director,Transit Division,and SOUND TRANSIT's Executive Director, or their designees If this panel is unable to reach a mutually acceptable resolution,it shall appoint another person to serve as mediator in the effort to resolve the claim or dispute Such mediation shall be required before an action may be filed to adjudicate the claimer dispute in a court of law. 14. ENTIRE AGREEMENT AND AMENDMENT 141 Entire Agreement Tlus Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations and agreements between the parties relating to the subject matter hereof 142 Amendments and Modifications This Agreement may be amended or modified only by written instrument signed by the parties hereto 15 SAVINGS 151 Definition Should any provision of this Agreement be deemed invalid or mconsistent with any federal, state or local law or regulation,the remaining provisions shall continue in full force and effect All parties agree to immediately attempt to renegotiate such provision that is invalidated or superseded by such laws or regulations 16 CONTACTPERSONS 161 Definition CITY and TRANSPORTATION PARTIES shall each designate a contact person for purposes of sending mquines and notices regarding the execution and fulfillment of tlus Agreement,as well as the ordering of all fare media and vouchers Flex Pass Agreement Page 6 of 13 City of Kent July 2003—June 2004 162 Designated Contact Persons CITY KING COUNTY, FLEXPASS CARD ORDERS &RETURNS Contact Name Ellen Bradlev-Mak Jeff Won Title Human Resource Analyst Transit Planner Address City of Kent King County Metro Transit 220 4th Avenue S 400 Yesler Way,MS YES-TR-0600 Kent,WA 98032 Seattle,WA 98104-2615 Telephone 253-856-5297 206-263-3452 Fax 206-684-2058 E-Marl EBMak ci kent wa us Jeff-mkt-dev won etrokc gov SOUND TRANSIT Contact Name Brian Brooke i; X[ � 14 - M 'ex" ^4s Title Fare Integration Project Manager ,'1 ION Address Sound Transit 401 S Jackson Street 3 Jfv Seattle,WA 98104-2826 Telephone 206-398-5229x y ;'-•} x ,"X, " s i Fax 206-398-5215 E-Marl brookeb soundtransit or 17 EXECUTION OF AGREEMENT 171 Definition This Agreement shall be executed in three(3)counterparts,each one of wluch shall be regarded for all purposes as one original In Witness whereof,the parties have executed this Agreement as of the date first wntten above CITY KING COUNTY BY BY Eric Gleason Title Title Manager,Service Development Date Date SOUND TRANSIT BY King County per Agent Agreement FlezPass Agreement Page 7 of 13 City of Kent July 2003—June 2004 FlexAass Agreement Attachment A-Agreement Costs Company City of Kent Start Date July 1,2003 KING COUNTY SERVICES BUS Baseline trips(Data source CTR Survey) 1,326 Added trips(Data source. CTR Survey) + 0 Discount of Added Tnps(Year#3 113 discount of xx inns) 0 Total trips = 1,326 Cost per trip x $ 139 King County Bus Cost = $ 1,843.00 CARD PRODUCTION Number of F1exPass Cards produced 442 Rate per card x $ 1 00 Card Production Cost = $ 442.00 HOME FREE GUARANTEE Number of covered employees 44200 Rate per covered emcee x $ 100 Home Free Guarantee Cost = S 442.00 COMMUTER BONUS PLUS VOUCHERS Prepaid Commuter Bonus Plus vouchers $ 1,0000 Commuter Bonus Plus Vouchers = $ 1,000.00 KING COUNTY PREPAID VANPOOL SUBSIDY July 2003—June 2004 $ 18,000 00 Prepaid VanpoolSubsidy = $ 18,000.00 CITY agrees to pay the vanpool subsidy rate for any and all vanpoolers over the initially covered number KING COUNTY will invoice CITY for the amount due for the additional vanpoolers CITY agrees to inform vanpooling employees of their responsrbrhty to pay vanpool bookkeepers any excess vanpool fare due,over and above the CITY monthly subsidy amount AGREEMENT COSTS FOR KING COUNTY SERVICES Bus $ 1,84300 Card production + $ 44200 Home Free Guarantee + $ 44200 Commuter Bonus Plus + $ 1,00000 Prepaid vanpool subsidy + $ 18,000 00 Total King County Services Cost = $ 21,727.00 Payment schedule:Net 60, 180 days(50%each payment) Number of FleaPass Cards provided by Transportation Parties = 442 King County Monthly Rate for ONE additional FlexPass Card = $ 051 ($2,727/442 employees/ 12 months) • Fle%Pass Agreement Page 8 of 13 City of Kent July 2003—June 2004 FlexPass Agreement Attachment A -Agreement Costs (cont.) Company City of Kent Start Date July 1.2003 SOUND TRANSIT SERVICES BUS AND RAIL Transit Trips(Data Source CTR Survey) 6,382 Cost per Trip x $ 158 Total Cost Of Sound Transit Services = $ 10,084.00 Payment schedule:Net 60, 180 days(50%each payment) Number of F1e:Pass Cards provided by Transportation Parties 442 Sound Transit monthly rate for ONE additional FlexPass Card = $ 190 ($10,084/442 employees/ 12 months) TOTAL FLEXPASS AGREEMENT COST King County $ 21,727 00 Sound Transit + $ 10,0840 Total FlexPass Agreement Cost = $ 31,811.00 TRANSPORTATION PARTIES ALLOCATION OF TRANSIT REVENUES King County $ 2,72700 Sound Transit + $ 10,0840 Total Transit Revenues = $ 12,811.00 Number of FlexPass Cards / 442 Number of months in agreement / 12 Combined monthly rate for ONE additional FlexPass Card $ 2.41 Allocation King County=$0 51 Sound Transit=$1 90 FlexPass Agreement Page 9 of 13 City of Kent July 2003—June 2004 FlexPass Agreement Attachment B - Employee Contributions and Company Provided Benefits/incentives Company City of Kent Start Date July 1, 2003 KING COUNTY I SOUND TRANSIT FLEXPASS Amount contributed by each Eligible Employee $ 0 00 VANPOOL FARE SUBSIDY Benefit per employee per month Up to$31 50 OTHER TRANSIT SYSTEM FARE SUBSIDIES Benefit per employee per month NIA EMERGENCY GUARANTEED RIDE HOME King County's Home Free Guarantee Program-See Attachment D CARPOOLERS AND NON-MOTORIZED COMMUTERS Benefit per employee per month $ TBD PARKING I OTHER Benefit per employee per month in a carpool Freepnonty parking in garage Benefit per employee per month in a vanpool Freepnonty narking in garage Other NIA FlezPass Agreement Page 10 of 13 City of Kent July 2003—June 2DO4 FlexPass Agreement Attachment C - Employee Use agreement CITY OF KENT FlexPass Use Agreement • As a FlexPass Holder, I agree to the following 1. The FlexPass is a benefit provided to me as an employee and is to be used only during the period I am employed by the City of Kent. 2. 1 will use my FlexPass for my own transportation only I will not transfer my FlexPass to any other person. 3. I will keep my FlexPass secure and in good condition. I will immediately report a lost, stolen, or damaged FlexPass to the Transportation Coordinator. I understand a lost FlexPass will be replaced only once per year at a charge of$50 00 A non-working FlexPass will be replaced free of charge. 4. I will return my FlexPass upon request or when I leave my employment with my company. If I do not return my FlexPass, I authorize the amount of$144 00 for each whole and partial month remaining on the FlexPass to be withheld from my paycheck. 5. If my employer subsidizes a fixed amount for my vanpool fare via the FlexPass card,I understand that I am responsible for the balance of the fare, payable to the vanpool bookkeeper . I acknowledge the receipt of my FlexPass, and understand and agree to the terms stated above on using the FlexPass Employee's Signature Date Employee's Printed Name FlexPass Senal # Transportation Coordinator Use Only-FlexPass returned: Employee's Signature Date FlexPass Senal # FlexPass Agreement Page 11 of 13 Gty of Kent July 2001—June 2004 FlexPass agreement Attachment D - Home Free Guarantee Home Free Guarantee(hereinafter,"HFG")is a KING COUNTY program that guarantees payment for taxi fares • incurred by employees deemed eligible by the CITY for emergency rides taken in accordance with the temis set forth below, D I DEFINTITIONS D 1 I Approved Commute Modes Eligible Employees must have commuted from their principal residence or Park&Ride to the CITY's worksite by one of the following modes Bus,carpool,vanpool,walk-on or bicycle-on ferry,bicycle,or walk. D 1 2 Eligible Reasons For Using HFG The following are the only eligible reasons for using HFG: a) Eligible Employee's or family member's unexpected illness or emergency b) Unexpected schedule change such that the normal commute mode is not available for the return commute to the starting place of their commute Unexpected means the employee learns of the schedule change that day c) Missing the employee's normal return commute to the starting place of their commute for reasons, other than weather, or act of nature which are beyond the employee's control and of which they had no prior knowledge For example,the employee's carpool driver left work or worked late unexpectedly D 1 3 Non-Eligible Reasons For Using HFG Reasons which are not eligible for HFG use include,but are not limited to,the following a) Pre-scheduled medical or other appointments. b) To transport individuals who have incurred injury or illness related to their occupation. An HFG ride should NEVER be used where an ambulance is appropriate,nor should an HFG ride replace CITY's legal responsibility under workers' compensation laws and regulations c) Other situations where,in the opinion of the CITY's Program Coordinator,alternate transportation could have been arranged ahead of time D 1 4 Eligible Destinations for an HFG Ride a) From the CITY's worksite to the Eligible Employee's principal place of residence b) From the CITY's worksite to the Eligible Employee's personal vehicle,e g vehicle located at a Park&Ride lot c) From the CITY's worksite to the Eligible Employee's usual commute ferry terminal on the east side of Puget Sound D 1.5 Intermediate Stops Intermediate stops are permitted only if they are of an emergency nature and are requested in advance by Eligible Employee and are authorized in advance of the ride by the CITY's Program Coordinator(i a pick up a necessary prescription at a pharmacy,pick up a sick child at school) D 2 CITY RESPONSIBILITIES D 2 1 HFG Program Payment CITY's payment for HFG services is accounted for in the base price for FlexPass Cards as indicated in Attachment A If a company's fare costs exceed amount listed in Attachment A at the end of 6 months,a sliding scale charge will be applied as follows a) If total fare costs average between$1 00 and$1 25/employee,Company may be charged$1 25/employee for second six months of the agreement period b) If total fare costs average between$1 25 and$1 50/employee,Company may be charged$1 50/employee for second six months of the agreement period c) and so on incrementally without lumt D 2 2 Program Coordinator CITY shall designate as many Program Coordinators as necessary to administer and perform the necessary HFG program tasks set forth below 0 FlexPass Agreement Page 12 of 13 City of Kent July 2003—June 2004 D 2 3 Number Of HFG Rides Per Eligible Employee CITY shall ensure that each Eligible Employee does not exceed eight(8)HFG rides per twelve(12)month period D 3 HFG Program Tasks D 3 1 Process To access HFG rides,Eligible Employees shall contact the Program Coordinator The Program Coordinator shall call directly an answering service provider,contracted for by KING COUNTY. The phone number shall be supplied to CITY by KING COUNTY CITY agrees to make information about how to access HFG ndes to all Eligible Employees Eligible Employees shall supply the following information to the Program Coordinator, who shall in turn provide the information to the answering service provider a) Verify the Eligible Employee has commuted to the worksite by an eligible mode b) Verify the Eligible Employee has an eligible reason and eligible destination for an HFG ride c) Ensure the Eligible Employee has valid identification to show the taxi driver d) Once an Eligible Employee takes the emergency taxi ride,the Eligible Employee shall provide a receipt from the taxi trip to CITY'S Program Coordinator e) CITY's Program Coordinator shall forward copies of such receipts to KING COUNTY at the end of each month for record keeping and accounting purposes f) The answering service provider shall arrange taxi ndes for the Eligible Employee D 4 KING COUNTY RESPONSIBILITIES D 4 1 Participating Taxi Company(s) CITY agrees that neither KING COUNTY or answering service provider is responsible for providing transportation services under the HFG program CITY further agrees that KING COUNTY makes no guarantee or warranty as to the availability, quality or reliability of taxi service,and that the KING COUNTY's sole obligation under the program is to make payment of the taxi provider for trips actually taken in accordance with the terms of this Agreement. CITY agrees it shall make no claum of any kind or bring any suits of any kind against the KING COUNTY for damages or injuries of any kind arising out of or in any way related to the HFG program Without limiting the foregoing and by way of example only,the CITY agrees that KING COUNTY shall not be liable for any injuries or damages caused by negligence or intentional acts occurring before,during or after a taxi ride or for any inlunes or damages caused by failure of a taxi to provide a ride due to negligence,intentional acts or causes beyond the taxi's control,including but not limited to incidence of fire,flood,snow,earthquake or other acts of nature,nots, insurrection, accident,order of any court or civil authority,and strikes or other Iabor actions D 4 2 Payment of Authorized HFG Taxi Fares KING COUNTY shall pay the metered fare amount of a CITY's Program Coordmator-authorized HFG ride,as defined in the DEFINITIONS section above,for a one-way distance of up to sixty(60)miles Any fare for a one- way distance in excess of sixty(60)miles shall be paid by the individual taking the HFG ride KING COUNTY shall not pay any taxi driver gratuity,which shall be paid by and at the sole discretion of the individual taking the HFG ride. D 4.3 Reporting KING COUNTY shall keep a complete record of all authorized HFG ride requests on a serm-annual basis and provide a copy of this record to the designated CITY contact person specified in Section 16 2 D 4.4 Program Abuse KING COUNTY reserves the right to investigate and recover costs from the CITY of intentional abuse of the HFG program by Eligible Employees Program abuse is defined as,but not hunted to,taking trips for inappropriate reasons, unauthorized destinations and intermediate stops,and pre-scheduled appointments not defined in the DEFINITIONS section above FlexPass Agreement Page 13 of 13 16 City of Kent July 2003—June 2004 Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: GROUP HEALTH COOPERATIVE CONTRACT RENEWAL— AUTHORIZE 2. SUMMARY STATEMENT: Authorize the Mayor to sign the Group Health Cooperative contract effective January 1, 2003 through December 31, 2003. Renewal of the Group Health Cooperative contract for the City's insured Health Maintenance Organization (HMO) The 2003 contract reflects an approximate 14.64% increase in the health care premiums and is budgeted in the Health and Welfare Fund. 3. EXHIBITS: Contract • 4. RECOMMENDED BY: Operations Committee 7/l/03 (3-0) (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: Health and Welfare Fund 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6G OFFICE OF THE MAYOR Jun White, Mayor � Phone 253-856-5700 KENT Fax 253-856-6700 w..s H H c.c u Address 220 Fourth Avenue S Kent,WA 98032-5895 DATE: July 1, 2003 TO: Kent City Council Operations Committee FROM: Becky Fowler, Benefits Manager THROUGH- Sue Viseth, Employee Services Director SUBJECT: Group Health Cooperative Contract Renewal SUMMARY: Renewal of the Group Health Cooperative of Puget Sound contract for the City's insured Health Maintenance Organization (HMO) The 2003 contract reflects an approximate 14 64% increase in the health care premiums charged by Group Health Cooperative and is budgeted in the health and welfare fund BUDGET IMPACT $ 247,751 00 (Health&Welfare Fund) MOTION I move to recommend that council authorize the Mayor to sign the contract with Group Health Cooperative effective January 1, 2003 through December 31, 2003 BACKGROUND: The City purchases insurance with Group Health Cooperative care program Group Health is a non-profit, health maintenance organization (HMO)providing primary care medical and specialty centers throughout the Pacific Northwest Approximately 93 lives are covered under our Group Health Cooperative plan which includes employees and dependents Kent Council Operations Committee ] Group Health Cooperative Agreement June 17, 2003 Enrollment Schedule The Special Enrollment Periods provision has been clarified The automatic enrollment of newborns provisions have been deleted An additional provision has been added to state that the Subscriber enroll their newbom or newly adoptive child as a dependent to avoid delays in payment of clatmc A clarification has been made to state that Subscribers and covered dependents who are eligible for Medicare(and residing inside the Medicare+Choice service area,must,effective the date T'EFRA eligibility ends or the date that Medicare would become the primary paym,enroll in Medicare Parts A and B,and must participate in GHC's Medicare plan Claims Clarifications have been made to this provision based on federal requirements Blood A benefit change has been made to include blood coverage Maternity A clarification was trade to reflect that treatment for postpartum depression or psychosis is covered under the mental health benefit The exclusion of bathing kits has also been removed. A clarification was made at the request of the Insurance Commissioner's office to state that prenatal testing is made in accordance with Board of Health standards. Plastic and Reconstructive Services A clarification has been trade to state that comphcations of covered mastectomy services,mckuding lymphedemas, are covered. Mental Health Care Services A clarification has been trade to more accurately reflect how these services are administered Clarifications to exclusions have also been made Exclusions A clarification has been made to the sexual reassignment provision The pre-existing condition provision has been clanfied to reflect HIPAA requirements regarding portability,as well as state requirements. A clarification has been made to reflect that routine ultrasound to determine fetal age,size or sex are excluded Additional clarifications include Routine foot care except in the presence of a non-related Medical Condition affecting the lower limbs,complications of non-Covered Services,missed appointment or cancellation fees,and treatment of obesity,except as otherwise noted in the agreement. @GroupHeafth COOPERATIVE GROUP MEDICAL COVERAGE AGREEMENT Group Health Cooperative(also referred to as"GHC","Group Health","GH" or the"Cooperative") is a nonprofit health maintenance organization furnishing health care primarily on a prepayment basis This Agreement states the terms of enrollment,payment and coverage under which a Group may secure GHC health benefits. The Schedule of Benefits lists the benefits to which those enrolled under this Agreement are entitled Words with special meaning are capitalized. They are defined in Section I. Accessing Care MEMBERS ARE ENTITLED TO COVERED SERVICES ONLY AT GH FACILITIES AND FROM GHC PRIMARY CARE PROVIDERS EXCEPT AS FOLLOWS. • Emergency care, • women's health care providers as set forth below, • visits with GH-Designated Self-Referral Specialists,as set forth below • other services as specifically set forth in the Allowances Schedule and Section X, • care provided pursuant to a Referral Referrals must be requested by the Member's primary care provider and approved by GHC Primary Care. Members must select a GH Primary Care Provider when enrolling under this Agreement. One primary care provider may be selected for the entire family,or a different primary care provider may be selected for each famdy member. If the primary care provider is not selected at the time of enrollment, Group Health wig assign a primary care provider,and a letter of explanation and an identification card wig be sent to the Member. Selecting a primary care provider or changing from one Primary Care Provider to another can be accomplished by contacting Group Health Customer Service, or accessing the GHC website at www.gh"rg The change will be made within twenty-four(24)hours of the receipt of the request if the selected physician's caseload permits A listing of GHC Primary Care Providers, referral specialists, women's health care providers, and GH- designated Self-Referral Specialists is available by contacting GHC Customer Service at (206) 901-4636 (or 1- 888-901-4636),or by accessing GHC's website at www.ghe.org. In the case that the Member's primary care provider no longer participates in GHC's network,the Member will be provided a written notice offering the Member a selection of new primary care providers from which to choose. Specialty Care. Unless otherwise indicated in this section, the Allowances Schedule,or Section X, referrals are required for specialty care and specialist. GH Desienated Self-Referral Specialist. Members may make appointments directly with GH-Designated Self- Referral Specialists at GH-owned or operated medical centers without a Referral from their primary care provider. Self-Referrals are available for the following specialty care areas:allergy, audiology,cardiology, PA-113302 - 0036900-C21431 1 GROUP HEALTH COOPERATIVE CONTRACT REVISIONS Effective January 1,2003 (Created 8/12/02;revised 2/26/03) This is the most current list of revisions,but this fist is subject to change at any time. CONTRACT EXPLANATION LANGUAGEIBENEFIT CHANGE General Information Numerous changes have been made throughout the agreement to reflect the fact that the agreement is an insurance document,rather than a care delivery document Introduction Information concerning "Accessing Card'has been added to this section in addition to referencing GH designated self-referral specialists,and moving access to care provisions from the Limitations section of the Agreement Table of Contents The headings for Subrogation,Gnevance/Appeal Procedures and Exclusions and Limitations has been revised,as well as throughout the Agreement Allowances Schedule The Allowances Schedule has been reformatted to combine similar coverage under one heading,and clarifications have also been made throughout the Allowances Schedule. Self-referrals to GHC providers that are licensed acupunctansts and naturopaths are now available. Five self-referred visits are available for acupuncturists,and two self-referred visits are available for natumpaths. The benefit period allowance under chemical dependency services has been increased in accordance with Washington state law The dollar amount will be reflected in the Agreement Skilled nursing facility services are now covered up to sixty(60) days per Member per calendar year(in addition to coverage in heu of hospitalization) Additional information concerning the benefit can be found in Section X Schedule of Benefits (The 60-day skilled nursing facility coverage is dependent on when the actual renewal paperwork was provided to the group ) Enrolhnent/Ehgibthry Requirements The provision concerning persons hospitalized on the effective date of coverage has been clarified to state that coverage for members admitted to an inpatient facility prior to their enrollment under this Agreement,and who do not have coverage under another Agreement,will receive covered benefits beginning on their effective date Also,GHC reserves the tight to require transfer of a member to a GH facility in the event a member is hospitalized in a non-GH facility or non-GH designated facility Definitions A new deftmtion for GH designated self-referral specialists has been added The Stop Loss definition has been redefined under Out-of-Pocket Lunit. Termination An additional provision was added under Termination of Entire Agreement to reflect that the group may be terminated if they no longer meet underwriting guidelines established by GHC in effect at the time the Group was accepted. The provision concerning persons hospitalized on the date of termination has been revised to state that the member shall continue to be eligible for covered services while an inpatient for the condition for which the member was hospitalized until the first of the following events occur the member no longer meets medical criteria to be an mpatient at the facility;the remaining benefits available under this Agreement for the confinement are exhausted, regardless of whether a new calendar year begins,the member becomes covered under another Agreement with the group health plan that provides benefits for the confinement,the member becomes emolled under an Agreement with another carver that would provide benefits for this confinement if this Agreement did not exist,or Medicare eligibility The Services provided after Termination provision has been clarified to define what the certificate of creditable coverage is, as well as to state that the group determines whether GHC or the group provides the certificate of creditable coverage to members Continuation coverage, conversion and A clarification has been made under eligibility for Group transfer Conversion stating that any Subscriber or Family Dependent not entitled to Medicare may convert to GHC's Croup Conversion plan if his/her coverage under this Agreement is terminated for any reason other than cause In accordance with Washington state law,a continuation opnon provision has been added which states"A Member no longer eligible for coverage under this Agreement(except in the event of termination for cause)may continue coverage for a period of up to three(3)months subject to notification to and self-payment of premium to the Group This provision will not apply if the Member is eligible for the continuation coverage provisions of the Consohdated Ommbus Budget Reconahauon Act of 1995 COBRA)" Coordination of benefits The definition of"Plan"has been broadened to include sources of benefits or services from individual policies The"Effect of Medicare"section has been clarified to reflect how a medicare-eligible person's benefits will be effected when the member resides outside the GH Medicare+Choice service area Subrogation and Reimbursement Rights This section has been modified to include ERISA requirements Grievance Procedures Clarifications have been added at the request of the Insurance Commissioner's office Miscellaneous Provisions The confidentiality,indemnification, and governmental approval provisions have been clarified Provisions regarding arbitration,HIPAA transactions and compliance with law have been added chemical dependency, chiropractidmanipulative therapy, dermatology, gastronenterology, general surgery, hospice, manipulative therapy, mental health, nephrologv, neurology, obstetrics and gynecology, occupational medicine*,oncology/hematology, ophthalmology,optometry, orthopedics,otolaryngology(ear, nose,and throat), physical therapy*,smoking cessation,speecklianguage and learning services*,and urology. *Medicare patients need a Referral for these specialists Women's Health Care Direct Access Providers Female Members may see a participating General and Family Practitioner, Physician's Assistant, Gynecologist, Certified Nurse Midwife, Licensed Midwife, Doctor of Osteopathy, Pediatrician, Obstetrician or Advanced Registered Nurse Practitioner who is contracted to provide women's health care services directly,without a Referral from their Prunary Care Provider, for Medically Necessary and appropriate maternity care, covered reproductive health services, preventive care (well care) and general examinations, gynecological care, and medically appropriate follow-up visits for the above services Women's health care services are covered as if your Primary Care Provider had been consulted, subject to any applicable Copayments and/or Coinsurance as set forth in the Allowances Schedule If your women's health care provider diagnoses a condition that requires referral to other specialists or hospitalization,you or your chosen provider must obtain preauthorization and care coordination in accordance with applicable GHC requirements Second Opinions The Member may access, upon request, a second opinion regarding a medical diagnosis or treatmentplan from a GHC Provider. Emergent and Urgent Care. Emergent and urgent care services are covered as set forth in Section XL. Contact the Emergency Notification Line as indicated on your GH identification card Recommended Treatment The Cooperative's Medical Director or his/her designee will determine the necessity, nature, and extent of treatment to be covered in each individual case and the Judgment, made in good frah, will be final Coverage decisions may be appealed as ser forth to Section VII. Members have the right to participate in decisions regarding their health care. A Member may refuse any recommended treatment or diagnostic plan to the extent permitted by law. In such case, GHC shall have no further obligation to provide benefits for the condition in question. Non-Recommended Treatment Members who obtain care not recommended by GHC, do so with the full understanding that GHC has no obligation for the cost,or liability for the outcome,of such care. Major Disaster or Epidemic In the event of a major disaster or epidemic, GHC will provide coverage according to its best judgment within the Bmitauons of available facilities and personneL The Cooperative has no liability for delay or failure to provide or arrange Covered Services to the extent facihres or personnel are unavailable due to a major disaster or epidemic Unusual Circumstances. If the provision of Covered Services is delayed or rendered impossible due to unusual circumstances such as complete or partial destruction of facilities, military action,civil disorder, labor disputes, or similar causes, GHC shall provide or arrange for services that, in the reasonable opinion of GHC's Medical Director, or his/her designee, are emergent or urgently needed In regard to nonurgent and routine services, GHC shall make a good faith effort to provide services through its then-available facilities and personnel. GHC shall have the option to defer or reschedule services that are not urgent while its facilities and services are so affected In no case shall the Cooperative have any Lability or obligation on account of delay or failure to provide or arrange such services. 0036900-C21431 2 Table of Contents Summary of Allowances and Enrollment/Eligibibty Requirements I. Definitions II Prermums,Fees and Copayments M. Termination IV. Continuation Coverage,Conversion,and Transfer V Coordination of Benefits VI. Subrogatioa and Reimbursement Righrs VII, Grievance Procedures for Complaints and Appeals VIII Miscellaneous Provisions IX. Enrollment Schedule X Schedule of Benefits XI Exclusions XII Claims • Medicare Endorsements(if applicable) • Premiums Schedule 0036900-C21431 3 ALLOWANCES SCHEDULE The benefits described in this schedule are subject to all provisions, limitations and exclusions set forth in the Group Medical Coverage Agreement ANNUAL DEDUCTIBLE No Annual Deductible PLAN COINSURANCE No Plan Coinsurance LIFETIME MAXIMUM No lifetime maximum unless otherwise indicated. HOSPITAL SERVICES • Covered inpatient services [medical and surgical services, including acute chemical withdrawal (deroxificanon)] Covered in full . • Covered outpatient hospital surgery(including ambulatory surgical centers) Covered subject to the outpatient services Copayment OUTPATIENT SERVICES • Covered outpatient medical and surgical services $5 Copayment per visit per Member • Allergy testing Covered subject to the outpatient services Copayment • Oncology(radiation therapy,chemotherapy) Covered subject to the outpatient services Copayment. DRUGS - OUTPATIENT (INCLUDING MENTAL HEALTH DRUGS, CONTRACEPTIVE DRUGS AND DEVICES AND DIABETIC SUPPLIES) • Prescription Drugs,medicines,supplies and devices for a supply of thirty(30)days or less When listed in the GHC drug formulary. 0036900-C21431 4 Covered subject to the lesser of GHC's charge or a $5 Copayment for covered prescription drugs, medicines, supplies and devices • Over-the-counter drugs and medicines Not covered • Allergy serum Covered subject to the prescription drug Copayment for each 30 day supply. • Injectables Injections that can be self-administered are subject to the prescription drug Copayment • Mail order drugs and medicines Covered subject to the prescription drug Copayment for each 30 day supply • Growth hormones Covered OUT-OF-POCKET LIMIT(STOP LOSS) Except as otherwise noted in this Allowances Schedule, total out-of-pocket expenses for the following Covered Services • Inpatient Services • Outpatient Services • Emergency Care at a GH,GH Designated or non-GH Facility • Ambulance services Lirmted to an aggregate maximum of$2,000 per Member and$4,000 per family per calendar year. ACUPUNCTURE Self-referrals to a GHC Provider covered up to a maximum of five (5) visits per Member per medical diagnosis per calendar year, subject to the outpatient services copayment Additional visits are covered when approved by GHC subject to the outpatient services copayment. AMBULANCE SERVICES • Emergency ground/air transport Covered at 800/c. • Non-emergent transfer to a GH or GH Designated Facility Covered m full 0036900-C21431 5 CHEMICAL-DEPENDENCY • Inpatient Services Covered subject to the applicable inpatient Copayment • Outpatient Seances Covered subject to the applicable outpatient services Copayment • Benefit Period Allowance S11,285 maximum per Member per any 24 consecutive calendar month period Acute detoxification covered as any other medical service Not subject to 24 month maxunums DENTAL SERVICES(including accidental injury to natural teeth) Not covered DEVICES,EQUIPMENT AND SUPPLIES(for home use)- Orthopedic appliances when listed as covered in the orthopedic appliance formulary • Durable medical equipment when listed as covered in the durable medical equipment formulary • Prosthetic devices when listed as covered in the prosthetic device formulary • Ostomy supplies • Oxygen and oxygen equipment • P ost-mastectomy bras(limited to two every 6 months) Covered at 80%Coinsurance, DIABETIC SUPPLIES Insulin, needles, syringes and lancets covered under Drugs-Outpatient External msulm pumps, blood glucose monitors and supplies covered under Devices,Equipment and Supplies DIAGNOSTIC LABORATORY AND RADIOLOGY SERVICES Covered in full EMERGENCY SERVICES • At a GH or GH Designated Facility $75 Copayment per Emergency visit per Member Copayment is waived if Member is admitted directly from the Emergency department • At a non-GH Designated Facility 0036900-C21431 6 S 125 Deductible per Emergency visit per Member.Emergency care deductible is not waived sfMember is admitted to the hospital. HEARING EXAMINATIONS AND HEARING AIDS Hearing examinations to determine hearing loss are covered subject to the outpatient services copayment. Hearing aids,including hearing aid examinations,are not covered. HOME HEALTH SERVICES Covered in full.No visit limit HOSPICE SERVICES Covered in full Inpatient respite care is covered for a maximum of five(5)consecutive days per occurrence INFERTILITY SERVICES(INCLUDING STERILITY) Not covered. MANIPULATIVE THERAPY Self-referrals to a GHC Provider for manipulative therapy of the spine covered in accordance with GHC clinical criteria up to a maximum of ten (10) visits per Member per calendar year, subject to the outpatient services copayment Additional manipulation visits are covered when approved by GHC MATERNITY AND PREGNANCY SERVICES • Delivery and associated hospital care Covered subject to applicable inpatient copayment • Routine prenatal and postpartum care Covered subject to the outpatient services copayment Pregnancy termination Involuntary/voluntmy termination of pregnancy is covered subject to applicable Copayment MENTAL HEALTH SERVICES • Inpatient Services Covered up to 12 days at 80% per Member per calendar year at a GH-approved mental health care facility when authonzed in advance by GH - • Outpatient Services 0036900-C21431 7 Twenty(20) visits covered per Member per calendar year subject to $20 Copayment per mdividual/famdy/couple session and$10 per Member per group session, no coverage thereafter. Medication monitoring visits are subject to the outpatient services copayment Copayments do not apply to Stop Loss. NATUROPATHY Self-referrals to a GHC Provider covered up to a maximum of two (2) visits per Member per medical diagnosis per calendar year, subject to the outpatient services copayment Additional visits are covered when approved by GHC subject to the outpatient services copayment NUTRITIONAL SERVICES • PSU supplements Covered in full • Enteral therapy(formula) Elemental formulas covered at 80%L Necessary equipment and supplies covered under Devices, Equipment and Supplies. • Parenteral therapy(total parenteral nutrition) Covered in full. Necessary equipment and supplies covered under Devices,Equipment and Supplies. OBESITY RELATED SERVICES Banatnc surgery covered subject to applicable copayment Weight loss programs and medications and related physician visits for medication monitoring are not covered ON THE JOB INJURIES OR ILLNESSES Not covered, including mjunes or illnesses incurred as a result of self-employment OPTICAL SERVICES Routine eye exammations covered subject to the outpatient services copayment,once every 12 months Contact lens after cataract surgery covered in full when in lieu of mnaocular lens Lenses, including contact lenses, and frames are not covered. ORGAN TRANSPLANTS Covered up to a $200,000 lifetime benefit maximum subject to the applicable copayment PLASTIC &RECONSTRUCTIVE SERVICES(Plastic Surgery,Cosmetic Surgery) 0036900-C21431 8 Surgery to correct a congenital disease or anomaly, or conditions resulting from injury or incidental to surgery, covered subject to the applicable copaymenL Cosmetic surgery,including complications,is excluded. PODIATRIC SERVICES • Medically Necessary foot care Covered subject to the applicable copayment • Foot care(routine) Not covered except in the presence of a non-related medical condition affecting the lower limbs. PRE-EXISTING CONDITION Covered,after no wait PREVENTIVE (WELL ADULT AND WELL CHILD) SERVICES (Physicals, Immunizations, Pap Smears, Well-care,Mammograms) Covered subject to the outpatient services copayment when in accordance with well-care guidelines. Excluded are physicals for travel,employment, insurance, license, etc Services provided during a preventive care visit which are not in accordance with preventive care criteria are subject to the outpatient services Copayment REHABILITATION SERVICES • Inpatient physical, occupational and restorative speech therapy services combined, including services for neurodevelopmentally disabled children age six (6) and under are covered up to 60 days per condition per calendar year. Covered subject to the inpatient Copayment • Outpatient physical, occupational and restorative speech therapy services combined, including services for neurodevelopmentally disabled children age six (6) and under are covered up to 60 visits per condition per calendar year Covered subject to the outpatient services Copayment SEXUAL DYSFUNCTION SERVICES Not Covered SKILLED NURSING FACILITY(SNF) Covered up to thirty(30)days per condition per Member STERILIZATION(Vasectomy,Tubal Ligation) 0036900-C21431 9 Covered subject to applicable copayments. TEMPOROMANDIBULAR JOINT(TMJ)SERVICES • Inpatient and outpatient TMJ services. $1,000 maximum per Member per calendar year • Lifetime Maximum Benefit $5,000 per Member TOBACCO CESSATION • Individual/Group Sessions Covered at 100%of the total charges • Approvedpharmacyproducts Covered sub3ect to the Outpatient Prescription Drug Copayment for each(30)day supply or less of a prescription or refill when provided at GH Facilities and prescribed by a GHC Provider 0036900-C21431 10 Enrollment(Eligibility Requirements Effective Date of Enrollment. a Provided application for enrollment is made as ser forth in Section IXA Lb. • Enrollment for a newly eligible Subscriber and listed Dependents is effective on the date of hue • Enrollment for a newly dependent person,other than a newborn or adoptive child,is effective the first(1st) of the month following application. • Enrollment for newborns is effective from the date of birth • Enrollment for adoptive children is effective from the date that the adoptive child is placed with the Subscriber for the purpose of adoption and the Subscriber has assumed financial responsibility for the medical expenses of the child b Commencement of Benefits for Persons Hospitalized on Effective Date. Members who are admitted to an inpatient facility prior to their enrollment under this Agreement, and who do not have coverage under another Agreement, will receive covered benefits beginning on their effective date If a Member is hospitalized in a non-GH Facility or non-GH Designated Facility, GHC reserves the right to require transfer of the Member to a GH Facility or GH Designated Facility. The Member will be transferred when a GHC Provider, in consultation with the attending physician, determines that the Member is medically stable If the Member refuses to transfer to a GH Facility or GH Designated Facility, all further costs incurred during the hospitalization are the responsibility of the Member Eligibility In order to be accepted for enrollment and continuing coverage under the Group Agreement, individuals must reside or work in the Service Area and meet all applicable requirements set forth below, except for temporary residency outside the Service area for purposes of attending school,court-ordered coverage for Dependents, or when approved in advance by GHC,other unique family arrangements GHC has the right to verify eligibility 1 Subscribers Bona fide LEOFF H employees who have been continuously employed on a regularly scheduled basis of not less than twenty(20)hours per week shall be eligible for enrollment. Elected officials and council members shall be eligible for enrollment. LEOFF I employees will not be covered under this plan 2 Family Dependents The Subscriber may enroll any of the following a The Subscriber's legal spouse, b. Unmarred dependent children who are under the age of twenty-one (21), provided they reside regularly with the Subscriber or are chiefly dependent on the Subscriber for support and maintenance,provided proof of such dependency is furnished to GHC "Children" means the children of the Subscriber including adopted children, stepchildren, foster children, children for whom the Subscriber has a qualified court order to provide coverage, and any other children for whom the Subscriber is the legal guardian c Enrollment may be extended past the limiting age for an unmamed person enrolled as a Family Dependent on his/her twenty-first(21 st)birthday if 0036900-C21431 11 i the Dependent is a full-time registered student at an accredited secondary school, college, or university and under the age of twenty-three(23),or it the Dependent is totally incapable of self-sustaining employment because of a developmental disability or a physical handicap incurred prior to attainment of the limiting age as set forth in 2 b. (above), or prior to anamment of the student limiting age as set forth in 2 c (above),and is chiefly dependent upon the Subscriber for support and maintenance Enrollment for such a Dependent may be continued for the duration of the continuous total incapacity, provided enrollment does not terminate for any other reason.Medical proof of mcapacity and proof of financial dependency must be furnished to the GH upon request, but not more frequently than annually after the two (2) year period following the Dependent's attainment of the hurting age. d Dependents of LEOFF I employees are eligible for coverage under this agreement e Temporary Coverage for Newborns. When a Member gives birth, the newborn will be entitled to the benefits set forth in Section X from birth through three(3) weeks of age After three(3)weeks of age, no benefits are available unless the newborn child qualifies as a dependent and is enrolled under this Agreement All contract provisions, limitations,and exclusions will apply except Section IV Continuation of Coverage,Conversion,and Transfer Continuation of Enrollment While on a group approved leave of absence the Subscriber and listed Dependents can continue to be covered under this Agreement, provided they remain eligible for coverage, such leave is in compliance with the employer's established leave of absence policy consistently applied to all employees, the employer's leave policy is in compliance with the Family and Medical Leave Act when applicable,and the employer or Group continues to remit premiums for the Subscriber and Dependents to the Cooperative Ineligible Persons. GHC reserves the right to refuse enrollment to any person whose coverage under any Medical Coverage Agreement issued by Group Health Cooperative or Group Health Options, Inc has been terminated for cause 0036900-C21431 12 Section I. Definitions AGREEMENT: This Medical Coverage Agreement, including the Schedule of Benefits, Enrollment/Eligibility Requirements,Premiums Schedule, Allowances Schedule, Group Master Application and Medicare endorsements. ALLOWANCE: The maximum amount payable by GH for certain Covered Services under this Agreement, as set forth in the Allowances Schedule. COINSURANCE: An amount the Member is required to pay for Covered Services received under this Agreement, which is a percentage of the Allowance for such services,as set forth in the Allowances Schedule COPAYMENT: The specific dollar amount required to be paid by a Member for certain Covered Services under this Agreement as set forth in the Allowances Schedule. COVERED SERVICES: The services for which a Member is entitled to coverage under this Agreement. DEDUCTIBLE: A specific nuximum amount paid by a Member for certain Covered Services before benefits are payable under this Agreement. The applicable Deductible amounts are set forth in the Allowances Schedule EMERGENCY: The sudden,unexpected onset of a medical condition that in the reasonable judgment of a prudent person is of such a nature that failure to render immediate care by a licensed medical provider would place the Member's life in danger,or cause serious impairment to the Member's health FAMILY DEPENDENT: Any member of a Subscriber's family who meets all applicable eligibility requirements, is enrolled hereunder,and for whom the premiums prescribed in the Premiums Schedule have been paid FAMILY UNIT: A Subscriber and all his/her Family Dependents FEE SCHEDULE A fee-for-service schedule adopted by GHC, setting forth the fees for medical and hospital services GH DESIGNATED FACILITY: A facility, not including a GH Facility, which GHC has specified to provide health care services to its Members Designated Facilities may be changed by GH upon appropriate nonce GH DESIGNATED SELF-REFERRAL SPECIALISTS: A designated self-referral specialist is a GHC specialist specifically identified in the Accessing Care section of this Agreement GH FACILITY: A hospital or medical center owned and operated by Group Health Cooperative GH PRIMARY CARE PROVIDER: A provider(also referred to as "PCP"or 'primary care provider") who is employed by or contracted with or GHC to provide primary care services to Members and is selected by each Member to provide or arrange for the provision of all non-emergent Covered Services, except for services set forth in this Agreement which a Member can access without referral Primary Care Providers must be capable of and licensed to provide the majority of primary health care services mquued by each Member GH MEDICARE PLAN: A plan of coverage for persons enrolled in Medicare Part A(hospital insurance)and Part B (medical insurance) GHC PROVIDER: The Medical Staff,Clinic Associate Staff, and allied health professionals employed by GHC and any other health care professional or provider with whom GHC has contracted to provide health care services to persons enrolled under this Agreement, and who at such time is providing services which have been authorized in advance by GHC,including,but not limited to,podiatrists,nurses,physician assistants,social workers,optometrists, psychologists, physical therapists and other professionals engaged in the delivery of healthcare services who are licensed or certified to practice in accordance with Title 18 RCW 0036900-C21431 13 GROUP: An employer, union, welfare trust, or bona-fide association which has entered into a Group Medical Coverage Agreement with GHC HOSPITAL CARE: Those Medically Necessary services generally provided by acute general hospitals for admitted patients Hospital care does not include convalescent or custodial care which can, in the opinion of the GHC Provider,be provided by a nursing home or convalescent care center MEDICAL CONDITION A medical condition is a disease,an illness or an injury MEDICALLY NECESSARY: Appropriate and necessary services, as determined by the GHC's Medical Director, or hisfher designee, according to generally accepted principles of good medical practice, which are rendered to a Member for the diagnosis, care or treatment a Medical Condition Services must be medically and clinically necessary for benefits to be provided under this Agreement The cost of services and supplies which are not Medically Necessary shall be the responsibility of the Member In order to be Medically Necessary, servces and supplies must meet the following requirements (a)are not solely for the convenience of the patient,his/her family, or the provider of the services or supplies, (b)are the most appropriate level of service or supply which can be safely provided to the patient,(c)are for the diagnosis or treatment of an actual or existing Medical Condition unless being provided under GH's schedule for preventive services, (d) are not for recreational life-enhancing relaxation or palliative therapy (except for treatment of terminal conditions), (e) are not primarily for research and data accumulation, (f) are appropriate and consistent with the diagnosis and which, in accordance with accepted medical standards in the State of Washington, could not have been omitted without adversely affecting the patent's condition or the quality of health services rendered, (g) as to inpatient care, could not have been provided in a provider's office, the outpatient department of a hospital, or a non-residential facility without affecting the patient's condition or quality of health services rendered,and(h)are not experimental or investigational The length and type of the treatment program and the frequency and modality of visits covered shall be determined by the GHC Medical Director,or his/her designee MEDICARE: The federal health insurance program for the aged and disabled. iMEMBER: Any Subscriber or Family Dependent covered by this Agreement. OPEN ENROLLMENT: An annual period, specified by the Group and GHC, during which an eligible person may apply for coverage OUT-OF-POCKET LIMIT(STOP LOSS): The maximum amount of Copayments, and expenses incurred and paid, during the calendar year for Covered Services received by the Subscriber and his/her Family Dependents within the same calendar year. The Out-of-pocket Limit amount is set forth in the Allowances Schedule. Services in excess of any benefit level, and services not covered by this Agreement are not applied to the Out-of- Pocket Limit PRE-EXISTING CONDITION: A condition for which there has been diagnosis, treatment(including ptescn-bed drugs), or medical advice within the three(3)month period prior to the effective date of coverage The Pre-existing Condition wait period will begin on the first day of coverage, or the first day of the enrollment waiting period if earlier REFERRAL: A written temporary referral agreement requested in advance by a GHC Provider and approved by GHC, which entitles a Member to receive Covered Services from a specified health care provider Entitlement to such Services shall not exceed the limits of the Referral and is subject to all terms and conditions of the Referral and this Agreement Members who have a complex or serious medical or psychiatric condition may receive a standing Referral for specialist services SERVICE AREA: Western Washington Counties of Island,King, Kitsap,Lewis, Mason, Pierce,San Juan,Skagit, Snohomish, Thurston, and Whatcom, Eastern Washington Counties of Benton, Columbia, Franklin, Kimtas, Spokane,Walla Walla,Whitman,and Yakima counties,Idaho Counties of Kootenai and Latah,and any otber areas designated by GH. 0036900-C21431 14 SKILLED HOME HEALTH CARE: Reasonable and necessary care for the treatment of an illness or injury which requires the skill of a nurse or therapist, based on the complexity of the service and the condition of the patient, and which is performed directly by an appropriately licensed professional provider STOP LOSS:See Out-of-Pocket Limit SUBSCRIBER: A person employed by or belonging to the Group who meets all applicable eligibility requirements, is enrolled hereunder, and for whom the premiums specified in the Premiums Schedule have been paid. URGENT CONDITION: The sudden, unexpected onset of a medical condition that is of sufficient seventy to require medical treatment within twenty-four(24)hours of its onset USUAL, CUSTOMARY, AND REASONABLE (UCR): A term used to define the level of benefits which are payable by GHC when expenses are incurred from a non-GH Provider. Expenses are considered Usual,Customary, and Reasonable if(1) the charges are consistent with those normally charged by the provider or organization for the same services or supplies,and(2)the charges are within the general range of charges made by other providers in the same geographical area for the same service or supplies. Section H. Premiums, Fees, and Cooavments A. MONTHLY PREMIUMS PAYMENTS. The Group shall submit to GHC for each Member the monthly premiums set forth in the current Premiums Schedule and a verification of enrollment,on or before the due date, subject to a grace period of ten (10) days Premiums are subject to change by GHC upon thirty(30) days written notice In the event the group increases enrollment at least twenty-five percent (25%) or more through acquisition or merger,GHC reserves the right to require re-rating of the group B. COPAYMENTS AND COINSURANCE. 1. Copayments At the t= of service, Members shall be required to pay Copayments as set forth in the Allowances Schedule. Payment of a Copayment does not exclude the possibility of an additional billing if the service is determined to be a non-Covered Service Total out-of-pocket expenses incurred during the same calendar year shall not exceed the aggregate maximum amount (Stop Loss) as set forth in the Allowances Schedule Those out-of-pocket categories which apply toward the aggregate maximum amount are set forth in the Allowances Schedule 2. Coinsurance. Members shall be required to pay Coinsurance for certain Covered Services as set forth in the Allowances Schedule C. SUBSCRIBER'S LIABILITY. The Subscriber is liable for(1) payment to the Group of his/her contribution toward the monthly premiums, if any, (2) payment of Copayments and/or Coinsurance amounts for Covered Services provided to the Subscriber and his/het Family Dependents, as set forth in the Allowances Schedule; and (3) payment of any fees charged for non-Covered Services provided to the Subscriber and his/her Family Dependents,at the time of service Payment of an amount billed by GHC must be received within thirty(30)days of the billing date D. SELF-PAYMENTS DURING A STRIKE,LOCK-OUT,OR OTHER LABOR DISPUTE.In the event of suspension or termination of employee corripensation due to a strike, lock-out, or other labor dispute, a Subscriber may continue uninterrupted coverage under this Agreement through payment of monthly premiums 0036900-C21431 15 directly to the Group Coverage may be continued for the lesser of the term of the strike,lock-out,or other labor dispute,or for six(6)months after the cessation of work. If the Group Agreement is no longer available,the Subscriber shall have the opportunity to apply for individual Group Conversion or, if applicable, continuation coverage (see Section IV), or an Individual and Family Medical Coverage Agreement at the duly approved rates. THE GROUP IS RESPONSIBLE FOR IMMEDIATELY NOTIFYING EACH AFFECTED SUBSCRIBER OF HISMER RIGHTS OF SELF-PAYMENT UNDER THIS PROVISION Section II1. Termination A. TERMINATION OF ENTIRE AGREEMENT. This Agreement may be terminated in the following circumstances 1. Termination on Notice. This is a guaranteed renewable contract and cannot be terminated without the mutual approval of each of the parties except as set forth below(subsection 2 and 3) 2. Nonpayment.Failure to make any monthly premiums payment or comnbution in accordance with Section H A shall result in termination of tlus Agreement as of the due date 3. Misrepresentation to Obtain Insurance. Group Health Cooperative may terminate this Agreement upon written nonce in the event of material misrepresentation, fraud, or omission of information in order to obtain Group Coverage 4 The Group may terminate this Agreement by giving thirty(30)days written notice to GHC 5. May terminate or non-renew in the event the Group no longer meets underwriting guidelines established by GHC in effect at the time the Group was accepted 6. Withdrawal or Cessation of Services. a GHC may determine to withdraw from a service area or from a segment of its service area after GHC has demonstrated to the Office of the Insurance Commissioner that GHC's clinical, fitianctal, or administrative capacity to service the covered members would be exceeded. b GHC may determine to cease to offer the plan and replace the plan with another plan offered to all covered persons within that line of business that includes all of the health care services covered under the replaced plan and does not significantly Imut access to the services covered under the replaced plan GHC may also allow unrestricted conversion to a fully comparable product GHC will provide written notice to each covered person of the discontinuation or nonrenewal of the plan at least 90 days prior to discontinuation. B. TERMINATION OF SPECIFIC MEMBERS. This Agreement may be terminated as to a specific Member for any of the following reasons 1. Loss of Eligibility. If a Member no longer meets the eligibility requirements set forth in the Enrollment/Eligibility Requirements, and is not enrolled for continuation coverage as described in Section IV.A, coverage under this Agreement will terminate at the end of the month during which loss of eligibility occurs, unless otherwise specified by the Group as set forth in the Enrollment/ Eligibility Requirements 2. For Cause.Coverage of a Member may be termnated upon written notice for: a Material Msrepresentation, fraud, or omission of information in order to obtain coverage This includes failure to answer fully and correctly all questions contained in the application forms In such 0036900-C21431 16 event,the Cooperative may, within two (2)years from the date of the application, refuse to cover any service for a condition(s) to which such question was relevant, or may nonrenew or cancel the Members coverage upon ten(10)working days written notice. b Permitting the use of a GHC identification card by another person, or using another person's identification card to obtain care to which one is not entitled. c Nonpayment of charges as set forth in Section II C 3 Nonpayment of premiums or contnbution for a specific Member by the Group. 4 In no event will a Member be terminated solely on the basis of their physical or mental condition provided they meet all other eligibility requirements set forth in this Agreement. 5 The Member may appeal the termination decision through GHC's grievance process as set forth in Section VII C. PERSONS HOSPITALIZED ON THE DATE OF TERMINATION. A Member who is receiving Covered Services as a registered bed patient in a GH Facility or GH Designated Facility on the date of termnation shall continue to be eligible for Covered Services while an inpatient for the condition for which the Member was hospitalized,until the first ofthefollowing events occur: • The Member no longer meets medical criteria to be an inpatient at the facility; • The remaining benefits available under this Agreement for the confinement are exhausted, regardless of whether a new calendar year begins; • The Member becomes covered under another Agreement with the group health plan that provides benefits for the confinement • The Member becomes enrolled under an Agreement with another carrier that would provide benefus for this confinement if this Agreement dud not exist • Medicare eligibility. This provision will not apply if the Member is covered under an Agreement that provides benefas for the confinement at the time coverage would terminate except as set forth in this section, or if the Member is eligible for COBRA continuation coverage as set forth in Section IV This continued coverage will also apply to a Member hospitalized in a non-GH Designated Facility as a result of an Emergency or Referral. D. SERVICES PROVIDED AFTER TERMINATION. Any services provided by GHC after the effective date of termination (except those services covered under Section III C.) shall be charged according to the Fee Schedule The Subscriber shall be liable for payment of all such charges for services provided to the Subscriber and all Farmly Dependents Unless the Group has chosen to accept this responsibility, a certificate of creditable coverage(which provides information regarding the Member's length of coverage under this Agreement) will be issued automatically upon termination of coverage,and may also be obtained upon request Section IV. Continuation Coverne, Conversion, and Transfer A. CONTINUATION COVERAGE UNDER FEDERAL LAW. This subsection A only applies to employer groups who must offer continuation coverage under the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"),as amended,and only applies to grant continuation of coverage rights to the extent required by federal law Upon loss of eligibility, continuation of Group coverage may be available to a Member for a limited time after the Member would 0036900-C21431 17 otherwise-lose eligibility, if required by the federal Consolidated Omnibus Budget Reconciliation Act of 1985 and amendments thereto (collectively "COBRA") The Group shall inform Members of the COBRA election process and how much the Member will be required to pay directly to the Group. B. GHC GROUP CONVERSION PLAN. 1. Eligibility.Any Subscriber or Family Dependent not entitled to Medicare may convert to GHCs Group Conversion Plan if his/her coverage under this Agreement is terminated for any reason other than cause (See Section III B 2)Following termination of marriage or death of the Subscriber,all Family Dependents are entitled to make such a conversion. 2. Application. Application for conversion must be made within thirty-one (31) days following termination under this Agreement. Coverage under the GHC Group Conversion Plan is subject to all terms and conditions of such plan, including premiums payment A physical examination or statement of health is not required for enrollment in the Group Conversion Plan. The Pre-existing Condition limitation under the Group Conversion Plan will apply only to the extent that the ]imitation remains unfulfilled under this Agreement By exercising Group Conversion rights, the Member may waive guaranteed issue and Pre-existing condition waiver rights under Federal regulations Persons wishing to purchase Group Health Individual and Family coverage should contact GH Marketing C. CONTINUATION OPTION.A Member no longer eligible for coverage under this Agreement(except in the event of termination for cause) may continue coverage for a period of up to three (3) months subject to notification to and self-payment of premium to the Group. This provision will not apply if the Member is eligible for the continuation coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985(COBRA). Section V. Coordination of Benefits A. BENEFITS SUBJECT TO THIS PROVISION: As described in subsection H, benefits provided under this Agreement are subject to this provision B. PLAN: The definition of a"Plan"includes the following sources of benefits or services 1. Individual, group or blanket disability insurance policies and health care service contractor and health maintenance organization group or individual agreements, issued by insurers, health care service contractors and health maintenance organizations, 2 Labor-management trusteed plans, labor organization plans, employer organisation plans or employee benefit organization plans, 3 Governmental programs,and 4 Coverage required or provided by any statute The term'Plan" shall be construed separately with respect to each policy, agreement or other arrangement for benefits or services,and separately with respect to the respective portions of any such policy,agreement or other arrangement which do and which do not reserve the right to take the benefits or services of other policies,agreements or other arrangements into consideration in determining benefits C. ALLOWABLE EXPENSE: "Allowable Expense" means any necessary, reasonable and customary items of expense at least a portion of which is covered under at least one of the Plans covering the person for whom the claim is made When a Plan provides benefits in the form of services rather thart cash payments, the reasonable cash value of each service rendered shall be considered an Allowable Expense 0036%0-C21431 18 D. CLAIM DETERMINATION PERIOD: "Claim Determination Period" means a period beginning with any January I and ending with the next following December 31 except that the first Claim Determination Period with respect to any person shall begin on the effective date of coverage under this Agreement with respect to such person and end on the following December 31. In no event will a Claim Determination Period for any person extend beyond the last day on which such a person is covered under this Agreement E. RIGHT TO RECEIVE AND RELEASE INFORMATION:For the purpose of determining the applicability of and implementing this provision and any provision of similar purpose in any other Plan, the Cooperative may, with such consent as may be necessary,release to or obtain from any other insurer,organization or person any information,with respect to any person which the insurer considers necessary for such purpose Any person claiming benefits under this Agreement shall furnish to the Cooperative the information necessary for such purpose F. FACILITY OF PAYMENT: Whenever coverage which should have been provided under this Agreement in accordance with this provision has been provided or paid for under any other Plan, the Cooperative shall have the right, exercisable alone and in its sole discretion, to pay over to any Plan malung such other payments any amounts it shall determine to be warranted in order to satisfy the intent of this provision, and amounts so paid shall be considered to be coverage or benefits paid under this Agreement and, to the extent of such payments, the Cooperative shall be fully discharged from Inability under this Agreement G. RIGHT OF RECOVERY: Whenever benefits have been provided by the Cooperative with respect to Allowable Expenses in total amount, at any time, in excess of the maximum amount of payment necessary at that time to satisfy the intent of this provision, the Cooperative shall have the right to recover the reasonable cash value of such benefits,to the extent of such excess,from one or more of the following,as the Cooperative shall determine any persons to or for or with respect to whom such benefits were provided,any other insurers, any service plans or any other organization or other Plans H. EFFECT ON BENEFITS: 1. This provision shall apply in determining the benefits for a person covered under this Agreement for a particular Claim Determination Period if, for the Allowable Expenses incurred as to such person during such period,the sum of a. The reasonable cash value of the benefits that would be provided under the Agreement in the absence of this provision, and b The benefits that would be payable under all other Plans in the absence therein or provisions of similar purpose to this provision would exceed such Allowable Expenses 2 As to any Claim Determination Period with respect to which this provision is applicable, the reasonable cash value of the benefits provided under thus Agreement in the absence of this provision for the Allowable Expenses incurred as to such person during such Claim Determination Period shall be reduced to the extent necessary so that the sum of the reasonable cash value of benefits and all benefits payable for such Allowable Expenses under all other Plans,except as provided in subparagraph(3)of this Section,shall not exceed the total of such Allowable Expenses. Benefits payable under another Plan include benefits that would have been payable had a claim been duly made therefor In determining liability under this paragraph,the Plan is not required,and will not take into consideration, deductibles, copayments,or other cost-sharing provisions 3 If a another Plan which is involved in subparagraph (2) of this Section and which contains a provision coordinating its benefits with those of this Agreement would, according to its rules, determine its benefits after the benefits of this Plan have been deterund,and 0036900-C21431 19 b the rules set forth in subparagraph(4) of this Secuon would require tlus Agreement to determine its benefits before such other Plan,then the benefits of such other Plan will be ignored for the purposes of determining the benefits under this Agreement. 4. For the purposes of subparagraph (3) of this Section, the rules establishing the order of benefit determination are a. The benefits of a Plan which covers the person on whose expenses a claim is based other than as a dependent shall be determined before the benefits of a Plan which covers such person as a dependent. b In the case that a dependent is covered under both parents'medical Plan,the benefits of the Plan of the parent whose birthday falls earlier in the year are determined before those of the Plan of a parent whose birthday falls later in the year.This buthdate will refer only to the month and day,not the year in which a person was bom. If both parents have the same birthday, the benefits of the Plan which covered the parent longer are determined before those that covered the other parent for a shorter period of tune, except that in the case of a person for whom claim is made as a dependent child, i. when the parents are separated or divorced and the parent with custody of the child has not remained, the benefits of a Plan which covers the child as a dependent of the parent with custody of the child will be determined before the benefits of a Plan which covers the child as a dependent of the parent without custody,and n when the parents are divorced and the parent with custody of the child has remarried, the benefits of a Plan winch covers the child as a dependent of the parent with custody shall be determined before the benefits of a Plan which covers that child as a dependent of the stepparent, and the benefits of a Plan which covers that child as a dependent of the stepparent will be determined before the benefits of a Plan which covers that child as a dependent of the parent without custody Notwithstanding items (i) and (it) above, if there is a court decree which would otherwise establish financial responsibility for the medical, dental or other health care expenses with respect to the child, the benefits of a Plan which covers the child as a dependent of the parent with such financial responsibility shall be determined before the benefits of any other Plan which covers the child as a dependent child c When rules (a) and(b)do not establish an order of benefit determination, the benefits of a Plan which has covered the person on whose expenses claim is based for the longer period of time shall be determined before the benefits of a Plan which has covered such person the shorter period of time, provided that I The benefits of a Plan covering the person on whose expenses claim is based as a laid off or retired employee, or dependent of such person shall be determined after the benefits of any other Plan covering such person as an employee,other than a lard off or retired employee,or dependent of such person,and it If either Plan does not have a provision regarding laid off or retired employees, which results in each Plan determining its benefits after the other,then the provisions of(i) of this subsection shall not apply. d. If none of the above rules determines the order of benefits, the benefits of the Plan which covered an employee or Subscriber for the longer period of time shall be determined before those of the Plan which covered that person for the shorter time period 5 When this provision operates to reduce the total amount of benefits otherwise to be provided to a person covered under this Agreement during any Claim Determination Period, the reasonable cash value of each benefit that would be provided in the absence of this provision shall be reduced proportionately,and such reduced amount shall be charged against any applicable benefit limit of this Agreement 0036900-C21431 20 I. EFFECT OF MEDICARE (for those Members residing outside the Group Health Medicare+Choice service area)- For GHC Members eligible for Medicare, Medicare secondary payor guidelines and regulations will determine who is primary. When Group Health renders care to a GHC Member who is eligible for Medicare benefits, and Medicare is deemed to be the primary bill payor under Medicare secondary payor guidelines and regulations,GHC will seek Medicare reimbursement for all Medicare covered services. Section Vl. Subro¢ation and Reimbursement Rights "Injured person" tinder this section means a Member covered by this Agreement who sustains compensable injury and any spouse, dependent, or other person or entity that may recover on behalf of such Member including the estate of the Member and, if the Member is a minor, the guardian or parent of the Member. "GHCs medical expenses" means the expense incurred and the reasonable value of the services provided by GHC for the care or treatment of the injury sustained If the injured person's injuries were caused by a thud party givmg rise to a claim of legal liability against the thud parry, GHC shall have the tight to recover GHCs medical expenses from any source available to the injured person as a result of the events causing the injury,including but not limited to funds available through applicable third party liabdity coverage and uninsured/underinsured motorist coverage This right is commonly referred to as "subrogation." GHC shall be subrogated to and may enforce all tights of the injured person to the extent of GHC's medical expenses. If the injured person who receives GHC's medical expenses is entitled to receive money from any source as a result of the events causing the injury, including but not limited to any parry's liability insurance or . uninsured/underinsured motorist proceeds, then GHC's medical expenses provided or to be provided to the injured person are secondary, not primary, and will be paid only if the injured person fully cooperates with the terms and conditions of this Agreement As a condition of receiving benefits under this Agreement' the injured person agrees that acceptance of GHC services is constructive notice of this provision in its entirety and agrees to reimburse GHC for the benefits the injured person received as a result of the events causing the injury. GHC's subrogation and reimbursement rights shall be limited to the excess of the amount required to fully compensate the injured person for the loss sustained, including general damages. Full compensation shall be measured on an objective case by case basis unless the injured person settles with the at fault parry prior to trial for less than available policy limits in which case full compensation shall be the amount of the settlement The injured person and his or her agents must cooperate fully with GHC in its efforts to collect GHCs medical expenses. This cooperation shall include supplying GHC with information about any defendants and/or insurers related to the injured person's claim.The injured person and his or her agents shall permit GHC,at GHCs option,to associate with the injured party or to intervene in any action filed If the injured person takes no action to recover money from any source, then the injured person agrees to allow GHC to initiate its own direct action for reimbursement or subrogation. The injured person and his or her agents shall do nothing to prejudice GHC's subrogation and reimbursement rights. The injured person shall promptly notify GHC of a tentative settlement and shall not settle a claim without protecting GHC's interest If the Member fails to cooperate fully with GHC in recovery of medical expenses as described above,the Member shall be responsible for reimbursing GHCfor such medical expenses. To the extent that the injured person recovers from any available source, the injured person agrees to hold such monies in trust or in theirpossession until GHC's subrogation and reimbursement rights are fully determined GHC shall not pay any attorneys fees or collection costs to attorneys representing the-injured person unless there is a written fee agreement signed by GHC prior to any collection efforts When reasonable collection costs have been incurred with GHC's prior written agreement, to recover GHCs medical expenses, there shall be an equitable 0036900-C21431 21 apportionment of such collection costs between GHC and the injured person subject to a maximum responsibility of GHC equal to one-third of the amount recovered on behalf of GHC Under no circumstance will GHC pay legal fees for services which were not reasonably and necessarily incurred to secure recovery and/or which do not benefit GHC If it becomes necessary for GHC to enforce the provision of this section by initiating any action against the injured person or his or her agent, then the injured person agrees to pay GHC's attorney's fees and costs associated with the action. Implementation of this section shall be deemed a part of claims administration under this Agreement and GHC shall therefore have sole discretion to interpret its terms. Section VII. Grievance Procedures for Complaints& Appeals A grievance is a complaint or appeal as set forth below. Filing a Complaint or Appeal The complaint process is available for a Member to express dissatisfaction about customer service or the quality or availabihty of a health service The appeal process is available for a Member to seek reconsideration of a denial of benefits Complaint Handling Step 1 The Member should contact the person involved, explain his or her concerns and what he or she would like to have done to resolve the problem The Member should be specific and make his or her position clear Step 2 If the Member is not satisfied, or if he or she prefers not to talk with the person involved, the Member should call the department head or the manager of the medical center or department where he or she is having a problem. That person will investigate the Member's concerns Most concerns can be resolved in this way However, of the Member is still dissatisfied,they should call the Customer Service Center Step 3 Most concerns are handled by phone within a few days. In sorne cases the Member will be asked to write down his or her concerns and to state what he or she thinks would be a fair resolution to the problem A customer service representative or service quality coordinator will investigate the Member's concern by consulting with involved staff and their supervisors,and reviewing pertinent records, relevant plan policies and the Member Rights and Responsibilities statement. This type of complaint can take up to 30 days to resolve after receipt of your written statement. If the Member is dissatisfied with the resolution of the complaint, he or she may contact the service quality coordinator or the Customer Service Center to appeal A decision regarding the appeal will be made within 30 days and written notice of the decision will be provided to the Member Appeals Process Step 1: If the Member wishes to appeal a decision, he or she must submit a request for appeal either orally or in writing within 180 days of the denial notice he or she received. The Member must specify why he or she disagrees with the decision. GH will notify the Member of its determination or request the Member's written permission for an extension of time within 30 days of receipt of the request for appeal If the Member is located west of the of the Cascade mountains, to GH's Appeals Department, PO Box 3493, Seattle WA 98124-1593, (206) 901-7359 (toll free 1-888-9014636), or if the Member is located east of the Cascade mountains, to GH's Appeals Department, P O Box 204, Spokane, WA 99224-0204;(509) 838-9100 (toll free I- 800-497-2210). 0036900-C21431 22 If the appeal request is for an experimental or investigational exclusion or limitation,GH will make a detemunation • and notify the Member in writing within 20 working days of receipt of a fully documented request. In the event that additional time is required to make a determination, GH will notify the Member in writing that an extension in the review nmeframe is necessary Under no circumstances will the review umeframe exceed 20 days without the Member's written percussion. There is an expedited appeals process in place for cases which meet criteria or where the Member's doctor states clinical urgency exists If a delay would jeopardize the Member's life, or materially jeopardize the Member's health, the Member can request an expedited appeal in writing to the above address, or by calling GH's Appeals Department in western Washington at(206) 901-7359(toll free 1-888-9014600)or in eastern Washington at 1-509- 838-9100 (toll free 1-800497-2210)and ask to be connected with the Appeals Department The Member's request for an expedited appeal will be processed and a decision issued no later than seventy-two hours after receipt If GH fails to grant or reject the Member's request within the applicable required mneframe, the Member may proceed as if the appeal had been rejected. Step 2 If the Member is not satisfied with the decision reached by the appeals coordinator regarding a denial of benefits, he or she may request a hearing by the appeals committee by submitting the appeal within 30 days of the date of the decision letter if the Member is located west of the Cascade mountains,to GH's Appeals Department, PO Box 34593, Seattle WA 98124-1593, or if the Member is located east of the Cascade mountains to GH's Appeals Department,PO Box 204,Spokane, WA 99224-0204.' The appeals committee is the final review authority within GH Its decisions are final Members are encouraged to present their case to the appeals committee in person The hearing and written notification to the Member of the appeals committee decision,will be made within thirty working days of the Member's request Step 3 If the Member is not satisfied with the committee's decision, or if GH exceeds the timeframes stated in Step I and 1 above without good cause and without reaching a decision, his or her final level of appeal is available through an independent review organization An independent review organization is not legally affiliated or controlled by GH.* 'If the member's health plan is governed by ERISA (most employment related health plans, other than those sponsored by governmental entities or churches— ask your employer about your plan), the Member has the right to file a lawsuit under section 502(a)of ERISA to recover benefits due to the Member under the plan at any point after completion of step 1 of the appeals process Members may have other legal rights and remedies available under state or federal law. Section VHL Miscellaneous Provisions A. DISSEMINATION OF INFORMATION. The Group is responsible for disseminating to Subscribers written information concerning this Agreement which is provided by the Cooperative B. IDENTIFICATION CARDS. The Cooperative will furnish cards, for identification only, to all persons enrolled under this Agreement C. ADMINISTRATION OF AGREEMENT.GHC may adopt reasonable policies and procedures to help in the administration of this Agreement. Group Health Cooperative reserves the right to construe the provisions of this Medical Coverage Agreement, and to determine any and all questions pertaining to benefit entitlement and coverage D. MODIFICATION OF AGREEMENT. Except as required by Washington state law,this Agreement may not be modified without agreement between both parties No oral statement of any person shall modify or otherwise affect the benefits, limitations, and exclusions of this Agreement, convey or void any coverage, increase or reduce any benefits under this Agreement or be used in the prosecution or defense of a claim under this Agreement 0036900-C21431 23 E. INDEMNIFICATION. GHC agrees to indemnify and hold the Group harmless against all claims,damages, losses, and expenses, including reasonable attorney's fees, arising out of GHC's failure to perform or negligent performances of its express obligations under the Group Medical Coverage Agreement Group agrees to indemnify and hold GHC harmless against all claims, damages, losses, and expenses, including reasonable attorney's fees,arising out of Group's failure to perform or negligent performances of its express obligations under the Group Medical Coverage Agreement. F. COMPLIANCE WITH LAW Group and GHC shall comply with all applicable state and federal laws and regulations in performance of this Agreement The Medical Coverage Agreement is entered into and governed by the laws of Washington State, except as otherwise pre-empted by ERISA and other Federal laws G. GOVERNMENTAL APPROVAL CLAUSE.If GHC has not received any necessary government approval by the date when notice is required under this Agreement, GHC will notify Group of any changes once governmental approval has been received, GHC may amend this Agreement by giving notice to group upon receipt of government approved rates,benefits, limitations, exclusions, or other provisions, in which case such rates, benefits, limitations, exclusions, or provisions will go into effect required by the governmental agency All amendments are deemed accepted by group unless group gives GHC written notice of non-acceptance within 30 days after receipt of the amendment, in which event this Agreement and all tights to services and other benefits terminate the first of the month following 30 days after receipt of nonacceptance. H. CONFIDENTIALITY.Each party acknowledges that performance of its obligations under this Agreement may involve access to and disclosure of data,procedures,materials,lists,systems and information,including medical records, employee benefits mformanon, employee addresses, social security numbers, e-mail addresses,phone numbers and other confidential information regarding Group's employees(collectively the Information",� The Information shall be kept strictly confidential and shall not be disclosed to any third parry other than- (i) representatives of the receiving party(as permitted by applicable state and federal law) who have a need to know such Information in order to perform the services to be performed by such party pursuant to this Agreement, or for the proper management and administration of the receiving party, provided that such representatives are informed of the confidentiality provisions of this Agreement and agree to abide by them;(ii)pursuant to court order,or(iii)to a designated public official or agency pursuant to the requirements of federal, state or local law, statute, rule or regulation. The disclosing party will provide the other party with prompt notice of any request that the disclosing party disclose Information pursuant to applicable legal requirements, so that the other party may object to the request and/or seek an appropriate protective order. Each party shag maintain the confidentiality of medical records and confidential patient and employee Information as required by applicable law. I. NONDISCRIMINATION. Group Health Cooperative does not discriminate on the basis of physical or mental handicaps in its employment practices and services. J. ARBITRATION. Any dispute, controversy or difference between GHC and Group arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The place of arbitration shall be Seattle, Washington. Except as may be required by law, neither party nor an arbitrator may disclose the existence,conten4 or results of any arbitration hereunder without the prior written consent of both parties. K. RIPAA TRANSACTIONS. Transactions Accepted GHC win accept Standard Transactions, pursuant to HIPAA, if Group elects to transmit such transactions. If Group sends transactions to GHC that do not comply with applicable HIPAA standards, Group will be deemed by such action to be representing and warranting Mat it is not a Covered Entity or otherwise required to comply with HIPAA standards for electronic transactions, either directly, or 0036900-C21431 24 as an agent of another individual or entity. The parties agree that all the terms, conditions, representations and warranties contained in this section are express obligations of Group, and Group shall indemnify GHC for any breach of this Section as specified in Section VU1. Definition of Terms. Terms used,but not otherwise defined,in this Section shall have the same meaning as those terms have in the Health Insurance Portability and Accountability Act of 1996("HIPAA"). Section IX.Enrollment Schedule A. ENROLLMENT 1. Application for Enrollment. Application for enrollment shall be made on an application form furnished and approved by GHC.No person shall be enrolled or premiums accepted until this completed application has been received and approved by GHC. The Group is responsible for subtmtang completed application formes to GHC. a. Special Enrollment Periods. i. Loss of Coverage GHC will allow special enrollment periods for persons who (a) initially declined enrollment when newly eligible because such persons had another health care plan available through Group or other insurance coverage and have had such other coverage terminated due to cessation of employer contributions, exhaustion of COBRA continuation coverage or loss of eligibility except for loss of eligibility for cause(GHC or Group may require that when initially offered coverage such persons submitted a written statement declining because of other coverage).Application must be made within thirty-one (31) days of the termination of previous coverage or acquisition of a new dependent A New Dependents. In the event a Subscriber or person eligible to be a Subscriber acquires a person eligible to be a Family Dependent by birth, marriage, adoption or placement for adoption, GHC will allow special enrollment periods for the person eligible to be a Subscriber, his or her spouse and the newly-acquired Family Dependent Application must be made within thirty-one (31) days of acquisition of the new Family Dependen; except that sixty(60) days is permitted to enroll newborn and adopted children as described below. b. Newly Eligible Persons. Newly eligible Subscribers may make written application for enrollment to the Group within thirty-one (31) days of eligibility If the Subscriber wishes to enroll his/her eligible Dependents,application mist be made during this same thirty-one(31)day penod. Written application for enrollment for a newly dependent person, other than a newborn or newbom adopted child, must be made to the Group within flurry-one (31)days after the dependency occurs and will be subject to the Pre-existing Condition exclusion set forth in Section XI A. In the event there is a change in the monthly premiums payment as a result of the addition of a newborn child,the Subscriber must make written application for enrollment to the Group within sixty (60)days following the date of birth. In the event there is a change in the monthly prermums payment as a result of the addition of an adoptive child, including adopted newborns, the Subscriber roust make written application for enrollment within sixty (60) days from the day that the child is placed with the Subscriber for the purpose of adoption and the Subscriber assumes financial responsibility for the medical expenses of the child. When there is me change in the monthly premium payment, it is strongly advised that you enroll your newborn or newly adoptive child, including adopted newborns, as a dependent with your employer to avoid delays in payment of claims. 0036900-C21431 25 c Open Enrollment. A person not enrolled as a Subscriber or Family Dependent when newly eligible, as described above,may make written application during the Group's Open Enrollment period 2. Limitation on Enrollment This Agreement will be open for application as set forth in Section IX A 1. Subject to prior approval by the Office of the Insurance Commissioner, GHC may limit enrollment, establish quotas, or set priorities for acceptance of new applications if it determmes that its capacity, in relation to its total enrollment,is not adequate to provide services to additional persons B. PERSONS ENTITLED TO,OR ELIGIBLE TO PURCHASE MEDICARE. For purposes of thus section,an individual shall be deemed eligible for Medicare when he or she has the option to receive Part A Medicare benefits, urespective of whether the individual elects to enroll in Part B coverage under the federal regulations Under the Tax Equity and Fiscal Responsibility Act of 1982(TEFRA),actively employed Subscribers and their spouses who are eligible for Medicare benefits must decide whether to choose the benefits of this Agreement or the Medicare program as the primary source of health care coverage.The Group is responsible for providing the Subscriber with necessary information regarding TEFRA eligibility and the selection process Persons Residine Inside the Medicare+Choice Service Area. Except as defined by federal regulations (m e, TEFRA), all Members who are eligible to purchase Medicare must enroll in both Medicare Parts A and B and transfer to the GHC Medicare Plan upon eligibility and enrollment A condition of coverage under the GHC Medicare Plan requires that a Member be continuously fully qualified and enrolled for the hospital(Part A) and medical (Part B) benefits, available from the Social Security Administration, and sign any papers that may be required by GHC or Medicare. All applicable provisions of the GHC Medicare Plan are fully set forth in the Medicare Endorsement(s)attached to this Agreement(if applicable). Subscribers and covered dependents who are eligible for Medicare must, effective the date TEFRA eligibility ends or the date that Medicare would become the primary payor, enroll in Medicare Parts A and B,and must participate in GHC's Medicare plan. Failure to do so upon the effective date of Medicare eligibility will result m termination of coverage under this group Agreement Persons Residing Outside the Medicare+Choice Service Area Except as defined by federal regulations(i e , TEFRA), all Members who are eligible to purchase medicare must enroll in and maintain both Medicare Parts A and B. Failure to do so upon the effective date of Medicare eligibility will result in termination of coverage under this group Agreement C. PERSONS WHO ARE NOT ENTITLED TO, OR ELIGIBLE TO PURCHASE MEDICARE. If a Member otherwise qualifies for Medicare but is not entitled to, or eligible to purchase Medicare, the Members may continue coverage under this Agreement upon payment of the applicable premiums as set forth in the Premiums Schedule Section X. Schedule Of Benefits Subject to all provisions of this Group Medical Coverage Agreement, including, without limitation, the accessing care provisions, the Allowances Schedule, and Exclusions, Members are entitled to receive the benefits and services that are Medically Necessary for the treatment of a Medical Condition as deternuned by GHC's Medical Director or his/ber designee,and as described in this Schedule of Benefits. A. HOSPITAL CARE Hospital coverage is lurnted to the following services 1. Room and board,including private room when prescribed,and general nursing services 0036900-C21431 26 2. Hospital services (including use of operating room, anesthesia, oxygen, x-ray, laboratory, and radiotherapy services) 3. As a cost-effective alternative in heu of otherwise covered, Medically Necessary hospitalization or other covered,Medically Necessary institutional care,alternative care arrangements may be covered Alternative care arrangements in hen of covered hospital or other institutional care must be determined appropriate and Medically Necessary based upon the patient's medical condition. Such determination of medical appropriateness and necessity, and authorization of coverage must be made in advance by GHC Such care will be covered to the same extent that the replaced hospital care is covered as set forth in the Allowances Schedule 4. Dings and medications which are administered during confinement. 5. Special duty nursing(when prescribed as Medically Necessary). If a Member is hospitalized in non-GH Designated Facility or a non-GH Facility, GHC reserves the tight to require transfer of the Member to a GH or GH-Designated Facility,upon consultation between a GHC Provider and the attending physician If the Member refuses to transfer, all further costs incurred during the hospitalization are the responsibility of the Member. B. MEDICAL AND SURGICAL CARE Medical and surgical services are covered,limited to the following 1 Surgical services 2. Diagnostic x-ray,nuclear medicine,ultrasound,and laboratory services 3 Family planning counseling services 4 Hearing examinations to determine hearing loss 5 Blood and blood derivatives and their administration. 6 Preventive care (well care) services for health maintenance, including routine mammography screening, physical examinations and routine laboratory tests for cancer screening in accordance with criteria established by GHC for the detection of disease, and immunizations and vaccinations which are listed as covered in the GHC Drug Formulary (approved drug list). A fee may be charged for health education programs Services provided during a preventive care visit which are not in accordance with preventive care criteria are subject to the Outpatient Services Copayment. 7. Radiation therapy services 8. The following services are covered by GHC when performed by a GHC Provider or GH oral surgeon. reduction of a fracture or dislocation of the law or facial bones, excision of tumors or non-dental cysts of the law,cheeks,lips,tongue,gums,roof and floor of the mouth,and incision of salivary glands and ducts 9 Medically Necessary uitplants,which are not experimental or investigational,are covered as determined by GHC's Medical Director, or his/her designee Excluded are internally implanted insulin pumps, artificial hearts, artificial larynx, and any other implantable device that has not been approved by GHC's Medical Director,or his/her designee 10 Respiratory therapy 0036900-C21431 27 11. Dietary formula for the treatment of phenylketonuria (PKLn when determined Medically Necessary by GHC's Medical Director, or his/her designee Coverage for this formula is not subject to a Pre-existing Conditions waiting period,if any Outpatient total parenteral nutritional therapy, when Medically Necessary and in accordance with medical criteria as established by GHC Outpatient elemental formulas for malabsorption are covered as set forth in the Allowances Schedule Formulas for access problems are excluded. Equipment and supplies for the administration of enteral and parenteral therapy is covered under Devices,Equipment and Supplies Dietary formulas, oral nutritional supplements and special diets, except for treatment of phenylketonuna (PKU)and total parenteral and enteral nutritional therapy as set forth above,are excluded 12 Visits by GHC Providers (including consultations and second opinions by a GHC Provider) in the hospital or office. 13 Routine eye examinations and refractions we coveted, limited to once every twelve (12) months, except when Medically Necessary Services for routine eye examinations roust be received at a GH Facility and in accordance with GHC medical criteria in order to be covered. Evaluations and surgical procedures to correct refractions which are not related to eye pathology are not covered. Complications related to such surgery are also excluded. Contact lens fittings and related examinations are not covered except as set forth below, Contact lens examinations and fittings for eye pathology are covered subject to the applicable copayment When dispensed through GH Facilities,one contact lens per diseased eye in lieu of an intraocular lens,including exam and fitting, is covered for Members following cataract surgery performed by a GHC Provider, provided the Member has been continuously covered by GHC since such surgery Replacement of a covered contact lens will be provided only when needed due to change in the Member's medical condition but may be replaced only one time within any twelve(12)month period. 14 Maternity care, including care for complications of pregnancy and prenatal and postpartum visits Prenatal testing for the detection of congenital and heritable disorders when Medically Necessary as determined by GHC's Medical Director, or his/her designee, in accordance with Board of Health standards for screening and diagnostic tests during pregnancy. Genetic testing of non-Members for the detection of congenital and heritable disorders is excluded. Hospitalization and delivery,including home baths for low risk pregnancies when approved in advance and provided by a GHC Provider Buthing tubs are not covered Voluntary(not medically indicated and non- therapeutic) or involuntary termination of pregnancy is covered The Membei s physician, in consultation with the mother, will determine the mother's length of inpatient stay following delivery Pregnancy will not be considered a pre-existing condition exclusion under this Agreement Treatment for postpartum depression or psychosis is covered only under the mental health benefit 15 Transplants When authorized as medically appropriate by GHC's Medical Director or his/her designee, and m accordance with criteria established by the Cooperative,heart,heart-lung, single lung, double lung, kidney, simultaneous pancreas/kidney, comes, bone marrow, and liver transplants High dose chemotherapy and stem cell (obtained from the allogeneic or autologous peripheral blood or marrow as medically appropriate) support is covered when authorized as medically appropriate by GHC's Medical Director,or his/her designee Transplant services are lirmted to the following a. evaluation testing to determine recipient candidacy, b matching tests 0036900-C21431 28 c. transplantation procedures as follows for inpatient and outpatient medical expenses Covered procedures must be directly associated with, and occur at the time of, the transplant Transplantation procedures are subject to the organ recipient's lifetime maximum as set forth in the Allowances Schedule • Hospital charges, • Procurement center fees; • Travel costs for a surgical team; • Excision fees; • Donor costs for a covered organ recipient are limited to procurement center fees,travel costs for a surgical team and excision fees.GHC shall exclude coverage for donor costs to the extent that the donor costs are reimbursable by the organ donor's insurance d. follow-up services for specialty visits, e. rehospitalization,and f maintenance medications Exclusions Transportation expenses,except as set forth under Section X M of this Agreement,and living expenses Coverage for all transplants and any related services,items, and drugs shall be excluded until such time as the Member has been continuously enrolled under this Agreement, or any prior GHC Medical Coverage Agreement,for twelve(12)consecutive months without any lapse in coverage This exclusion does not apply to children who have been continuously enrolled at GHC since bulb,or if the Member requires a transplant as the result of a condition which had a sudden unexpected onset after the Member's effective date of coverage. 16 Self-referrals for manipulative therapy of the spme limited to one evaluation and ten (10) spinal manipulations only when provided by GHC Providers as set forth in the Allowances Schedule. Additional visits available subject to approval. The Medical Necessity for manipulative therapy must meet GHC clinical criteria as Medically Necessary Excluded are services that do not meet GHC clinical criteria as Medically Necessary, including,but not limited to, supportive care rendered primarily to maintain the level of correction already achieved, care rendered primarily for the convenience of the Member, care rendered on a non-acute, asymptomatic basis, or charges for office visits other than the initial evaluation 17. Medical and surgical services and related hospital charges, including orthognathic (law) surgery for the treatment of temporomandibu lar joint (TMJ) disorders, are covered as set forth in the Allowances Schedule when determined to be Medically Necessary and referred in advance by GHC Such disorders may exhibit themselves in the form of pam, infection, disease, difficulty in speaking, or difficulty in chewing or swallowing food TMJ appliances are covered as set forth under orthopedic appliances(Section XH1 ) Orthognathic (law) surgery, radiology services and TMJ specialist services, including fitting/adjustment of splints, is subject to the benefit limit set forth in the Allowances Schedule. The following services including related hospitalizations,are excluded regardless of origin or cause • orthognathic(law)surgery in the absence of a TMJ diagnosis, 0036900-C21431 29 • treatment for cosmetic purposes,and • all dental services(except as noted above),including orthodontic therapy. 18 When authorized as medically appropriate by GHC's Medical Director, or his/'her designee, and in accordance with criteria established by the Cooperative, treatment of growth disorders by growth hormones. 19. Diabetic training and education. 20 Detoxification services for alcoholism and drug abuse Coverage for acute chemical withdrawal is provided without pnor approval If a Member is hospitalized in a non-GH Designated Facility/program, coverage is subject to payment of the emergency Deductible shown in the Allowances Schedule, and notification of GH by way of the GH Notification Lmne within twenty-four (24) hours following inpatient admission, or as soon thereafter as medically passible. Furthermore, if a Member is hospitalized in a non-GH Designated Facility/program, GHC reserves the tight to require transfer of the Member to a GH Facility/program upon consultation between a GHC Provider and the attending physician. If the Member refuses transfer to a GH Facmhty/program, all further costs incurred during the hospitalization are the responsibility of the Member For the purpose of this section, "acute cbermcal withdrawal" means withdrawal of alcohol and/or drugs from a person for whom consequences of abstinence are so severe as to require medical/nursing assistance in a hospital setting, and which is needed unmediately to prevent serious impaument to the Members health 21 Circumcision. . 22 Banamc surgery and related hospitalizations when GHC criteria are met. All other services required (e g, prescribing and monitoring of drugs, structured weight loss and/or exercise programs, speciahred nutritional counseling)are excluded 23 Nontherapeutic sterilization procedures 24 General anesthesia services and related facility charges for dental procedures will be covered for Members under seven (7) years of age, physically or developmentally disabled persons, or for Members with a medical condition whose health would be put at risk if the dental procedure were performed in a dennst's office Such services must be preauthonzed and determined Medically Necessary by GHC, and performed at a GH or GH Designated hospital or ambulatory surgery facility GHC will not cover the dentist's or oral surgeon's fees 25. Self-referrals for Covered Services provided by hcensed acupuncturists and licensed n arm ropaths with an their scope of licensure, when provided by GHC Providers, as set forth in the Allowances Schedule. Additional visits are covered as ser forth in the Allowances Schedule when approved by GHC. Preventive care visits to acupuncturists and naturopaths are not covered Herbal supplements are not covered Laboratory services are covered only when provided at a Group Health operated or contracted laboratory. 26 Pre-existing Conditions are covered in the same manna as any other illness, except as provided under Section X B.15 of this Agreement. C. CHEMICAL DEPENDENCY TREATMENT 0 0036900-C21431 vn Subject to all terms and conditions of this Agreement, care is provided as set forth below at a GH Facility, GH Designated Facility, or GH-approved treatment program, subject to the Benefit Period Allowance as described below and as shown in the Allowances Schedule 1. Chemical Dependency Treatment Services. The GHC Medical Director or his/her designee shall make the final determination of the length and type of program and frequency of visits. For chemical dependency treatment services, Medical Necessity is defined as those services necessary to treat a chemical dependency condition that is having a clinically significant impact on an m&vidual's emotional,social,medical,and/or occupational functioning. a. All alcoholism and/or drug abuse treatment services must be: (1) provided at a facility as described above and must be authorized in advance, except for acute chemical withdrawal as described in Section X B., and (2) deemed Medically Necessary as defined above by GHC's Medical Director or his/her designee Chemical dependency treatment may include the following services received on an inpatient or outpatient basis- diagnostic evaluation and education, organized individual and group counseling,and prescription drugs and medicines(unless excluded under this Agreement) b Court-ordered treatment shall be provided only if determined to be Medically Necessary by GHC's Medical Director or his/ber designee 2. Benefit Period and Benefit Period Allowance. a. Benefit Period. For the purpose of this section, "Benefit Period" shall mean a twenty-four (24) consecutive calendar month period during which the Member is eligible to receive covered chemical dependency treatment services as set forth in this section. The first Benefit Period shall begin on the first day the Member receives covered chemical dependency services and shall continue for twenty-four (24) consecutive calendar months, provided that coverage under this Agreement remains in force All subsequent Benefit Penods thereafter will begin on the first day Covered Services are received after expiration of the previous twenty-four(24)month Benefit Period b. Benefit Period Allowance.The maximum allowance available for any Benefit Period shall be the total of all chemical dependency benefits provided and payments made for chemical dependency treatment, not to exceed the Benefit Period Allowance shown in the Allowances Schedule during the Member's Benefit Period Any Deductibles or Copayments which may be bome by the Member under the terms of this Agreement shall not be applied toward the Benefit Period Allowance D. PLASTIC AND RECONSTRUCTIVE SERVICES are covered. 1. to correct a congenital disease or congenital anomaly as determined by a GHC Provider,or 2. to correct a Medical Condition following an injury or incidental to surgery covered by GHC which has produced a major effect on the Membees appearance when in the opinion of a GHC Provider,such services can reasonably be expected to correct the condition. In the case of a congenital condition which affects appearance,an anomaly will be considered to exist if the Member's appearance resulting from such condition is not within the range of normal human variation 3. for reconstructive surgery and associated procedures following a mastectomy, regardless of when the mastectomy was performed Internal breast prostheses required incident to the-surgery will be provided 0036900-C21431 31 A Member will be covered for all stages of reconstruction on the nondiseased breast to make it equivalent in size with the diseased breast after definitive reconstructive surgery on the diseased breast has been performed. Complications of covered mastectomy services, including lymphedemas, are covered. Complmcauons of noncovered surgical services are excluded E. HOME HEALTH CARE SERVICES, as set forth in this section, shall be provided by GHC Home Health Services or by a GH-authonzed home health agency when Referred in advance by a GHC Provider for Members who meet the following criteria 1. The Member is unable to leave home due to his or her health problem or illness (unwillingness to travel and/or arrange for transportation does not constitute mabihty to leave the home), 2. the Member requires intermittent Skilled Home Health Care services,as described below,and 3. a GHC Provider has determined that such services are Medically Necessary and are most appropriately rendered in the Member's home. Covered Services for home health care may include the following when prescribed by a GHC Provider and when rendered pursuant to an approved home health care plan of treatment nursing care, physical therapy, occupational therapy, respiratory therapy, restorative speech therapy, and medical social worker and limited home health aide services Home health services are provided on an intermittent basis in the Member's home "Intermittent" means care that is to be rendered because of a medically predictable recurring need for Skilled Home Health Care services Excluded are custodial care and maintenance care, private duty or continuous nursing care in the Members home, housekeeping or meal services, care in any nursing home or convalescent facility, any care provided by or for a member of the patient's family, and any other services rendered in the home which are not specifically listed as covered under this Agreement. F. HOSPICE Members who elect to receive services from the GHC Hospice Program or GH-approved hospice program are entitled to hospice services as provided under the Hospice Program Members who elect to receive hospice services do so in heu of curative treatment for their terminal illness for the period that they are in the hospice program. To receive hospice services,the Member is required to sign the Hospice Election Form It is understood and agreed that the following fully sets forth the eligibility requirements and Covered Services for a Member who elects to receive hospice services under the GHC Hospice Program GHC Hospice Program or GH-approved hospice program 1. Eligibility.Hospice Services, as set forth below,shall be provided to Members for as long as the following criteria are met a A GHC Provider has determined that the Member's illness is terminal and life expectancy is six (6) months or less; b. the Member has chosen a palliative treatment focus (errrphasizng comfort and supportive services rather than treatment armed at curing the Member's terminal illness), c the Member has elected in writing to receive hospice care through GHC's Hospice Program or GH's • approved hospice programs, _ 0036900-C21431 32 d. the Member has available a primary care person who will be responsible for the Member's home care, and e a GHC Provider and GHCs Hospice Director, or hts/ber designee, determine that the Member's illness can be appropriately managed in the home 2. Hospice care shall be defined as a coordinated program of palliative and supportive care for dying persons by an interdisciplinary team of professionals and volunteers centering primarily in the Member's home 3. Covered Services Hospice services may include the following as prescribed by a GHC Provider and rendered pursuant to an approved hospice plan of treatment a. Home Services I Intermittent care by a hospice interdisciplinary team which may include services by a physician, nurse, medical social worker, physical therapist, speech therapist, occupational therapist, respiratory therapist, limited services by a Home Health Aide under the supervision of a Registered Nurse,and homemaker services. u Continuous care services in the Member's home when prescribed by a GHC Provider, as set forth in this paragraph Continuous care is defined as "skilled nursing care provided in the home during a period of crisis in order to maintain the terminally ill patient at home" Continuous care may be provided for pain or symptom management by a Registered Nurse, Licensed Practical Nurse, or Home Health Aide under the supervision of a Registered Nurse.Continuous care is provided up to twenty-four (24)hours per day during periods of crisis Continuous care is covered only when a GHC Provider determines that the Member would otherwise require hospitalization in an acute care facility • b. Inpatient Hospice Services for short-term care shall be provided in a facility designated by GHCs Hospice Program or GH-approved hospice program when Medically Necessary and authorized in advance by a GHC Provider and GHC's Hospice Program or GH-approved hospice program Inpatient respite care is covered for a maximum of five(5)consecutive days per occurrence in order to continue care for the member in the temporary absence of the member's primary care giver(s) c Other hospice services may include the following I Dings and biologicals that are used primarily for the relief of pain and symptom management, u. medical appliances and supplies primarily for the relief of pain and symptom management, m counseling services for the Member and his/her primary care-giver(s);and iv. bereavement counseling services for the family 4. Hospice Exclusions:All services not specifically listed as covered in tlus section including a Financial or legal counseling services b. Meal services c. Custodial or maintenance care in the home or on an mpatient basis,except as provided above d. Services not specifically listed as covered by this Medical Coverage Agreement. e Any services provided by members of the patient's family f All other exclusions listed in Section XI.,Exclusions of this Medical Coverage Agreement,apply G. REHABILITATION SERVICES are covered as set forth in this section, lumted to the following physical therapy, occupational therapy, and speech therapy to restore function following illness, injury, or surgery Services are subject to all terms,conditions,and limitations of this Agreement,including the following 0036900-C21431 33 1. All services must be provided at GHC or a GH-approved rehabilitation facility and must be prescribed and provided by a GH-approved rehabilitation team that may include medical, nursing, physical therapy, occupational therapy,massage therapy and speech therapy providers. 2. The Member must be referred for rehabilitation services in advance by a GHC Provider 3. Services are limited to those necessary to restore or improve functional abilities when physical, senson-perceptual and/or communication impairment exists due to injury,illness or surgery Such services are provided only when GHC's Medical Director, or his/her designee, determines that sigmficant, measurable improvement to the Member's condition can be expected within a sixty (60) day period as a consequence of intervention by covered therapy services described in paragraph one(1)above 4 Coverage for inpatient and outpatient services is limited to the allowance set forth in the Allowances Schedule. Services excluded under this benefit include the following specialty rehabilitation programs not provided by GHC, long-term rehabilitation programs, physical therapy, occupational therapy, and speech therapy services when such services are available (whether application is made or not) through governmental programs, programs offered by public school districts, therapy for degenerative or static conditions when the expected outcome is primarily to maintain the Member's level of functioning(except for neurodevelopmental therapies), recreational hfe-enhancmg relaxation or palliative therapy, implementation of home maintenance programs, programs for treatment of learning problems, any other treatment not considered Medically Necessary by GHC, any services not specifically included as covered in this Section, and any services that are excluded under Section XI Neurodevelopmental Therapies for Children Age Six (6) and Under. When determined to be Medically Necessary by GHC's Medical Director, or his/her designee, physical therapy, occupational therapy, and speech therapy services for the restoration and improvement of function for neurodevelopmentally disabled children age six (6) and under shall be covered Coverage includes maintenance of a covered Member in cases where significant deterioration in the Member's condition would result without the services.Coverage for mpatient and outpatient services is limited to the allowance set forth in the Allowances Schedule Services excluded under this benefit include specialty rehabilitation programs, long-term rehabilitation programs,physical therapy, occupational therapy,and speech therapy services when such services are available (whether application is made or not) through governmental programs, programs offered by public school districts, except as set forth above, therapy for degenerative or static conditions when the expected outcome is primarily to maintain the Membefs level of functioning; implementation of home maintenance programs;any treatment not considered Medically Necessary,any services not specifically included as covered in this Section, and any services that are excluded under Section M H. DEVICES,EQUIPMENT AND SUPPLIES 1. Orthopedic Appliances.When Medically Necessary, orthopedic appliances(commonly known as a brace or a splint),which are attached to an impaired body segment for the purpose of protecting the segment or assisting in restoration or improvement of its function,are covered Medically Necessary repair,adjustment or replacement of an orthopedic appliance is covered when authorized in advance by a GHC Provider Covered Services are subject to the Coinsurance set forth in the Allowances Schedule Excluded are arch supports including custom shoe modifications or inserts and them fittings except for therapeutic shoes, modifications and shoe inserts for severe diabetic foot disease, orthopedic shoes that are not attached to an appliance, or any orthopedic appliances that are not listed as covered in GHC's Orthopedic Appliance Formulary. 2. Ostomy Supplies. Medically Necessary ostomy supplies for the removal of bodily secretions or waste through an artificial opening are covered as set forth in the Allowances Schedule 0036900-C21431 34 3. Oxygen and Oxygen Equipment. When medical criteria as established by GHC are met, and upon Referral,oxygen and oxygen equipment for home use is covered as set forth in the Allowances Schedule 4. Durable Medical Equipment which is Medically Necessary,prescribed by a GHC Provider, in accordance with criteria established by GHC, and listed as covered in GHC's durable medical equipment formulary, hmited to the following: rental(or purchase, if the cost of purchase is less than the anticipated total rental charges as determined solely by GHC) of hospital beds, wheelchairs, walkers, crutches, canes, glucose monitors, external insulin pumps and other durable medical equipment as specifically listed in GHC's durable medical egmpment formulary Services are covered as set forth in the Allowances Schedule. 5. Prosthetic Devices. Prosthetic devices (which are not orthopedic appliances), commonly known as artificial hubs, etc, which are listed as covered in the GHC prosthetic device formulary when Medically Necessary and authorized in advance by a GHC Provider,as set forth in the Allowances Schedule Replacement or repair of appliances, devices and supplies that are due to loss, breakage from willful damage, neglect or wrongful use, or due to personal preference are excluded. L TOBACCO CESSATION. When provided through GHC, services related to tobacco cessation are covered, hunted to: 1 participation in one individual or group program per calendar year, 2 educational materials, and 3 one course of nicotine replacement therapy per calendar year,provided the Member is actively pamcipating in the Group Health Free and Clear Program or GH-designated tobacco cessation program Covered Services are subject to the Allowances set forth in the Allowances Schedule J. LEGEND (PRESCRIPTION) DRUGS, MEDICINES, SUPPLIES AND DEVICES FOR OUTPATIENT USE as prescribed by a GHC Provider for conditions covered by this Agreement, including off-label use of FDA-approved drugs (provided that such use is documented to be effective in one of the standard reference compendia; a majority of well-designed clinical trials published in peer-reviewed medical literature document improved efficacy or safety of the agent over standard therapies,or over placebo if no standard therapies exist, or by the federal secretary of Health and Human Services), msulm,diabetic supplies,including insulin syringes, lancets, urine-testing reagents,and blood glucose monitoring reagents,and contraceptive drugs and devices and their fitting. All drugs, supplies,medicines,and devices must be obtained at a GH pharmacy and, unless approved by GHC in advance, be listed in the GHC Drug Formulary(approved drug Itst) The prescription drug copayment as set forth in the Allowances Schedule applies to each 30-day supply Copayments for single and multiple 30-day supplies of a given prescription are payable at the tux of delivery Injectables that can be self-administered are also subject to the prescription drug copayment Drug Formulary (approved drug list) is defined as a list of preferred pharmaceutical products, supplies and devices developed and maintained by Group Heakk Generic Drugs will be dispensed whenever available Brand name drugs will be dispensed if there is not a generic equivalent. In the event the Member elects to purchase brand-name drugs instead of the generic (if available), or if the Member elects to purchase a different brand-name or generic drug than that prescribed by the Member's Provider, and it is not determined to be Medically Necessary, the Member will also be subject to payment of the additional amount above the applicable pharmacy cost share set forth in the Allowances Schedule. Generic drugs are defined as a drug that is the pharmaceutical equivalent to one or more brand name drugs. Such generic drugs have been approved by the Food and Drug Administration as meeting the same standards of safety,purity,strength and effectiveness as the brand name drug. Brand name drugs are defined as a prescription drug that has been patented and is only available through one manufacturer. 0036900-C21431 35 "Standard reference compendia" means the American Hospital Formulary Service-Drug Infomntion, the American Medical Drug Evaluation,the United States Pbarmacopoeia-Drug Information, or other authoritative compendia as identified from time to time by the federal secretary of Health and Human Services "Peer- reviewed medical literature" means scientific studies printed in healthcare journals or other publications in which original manuscripts are published only after having been critically reviewed for scientific accuracy, validity, and rehability by unbiased independent experts Peer-reviewed medical literature does not include in- house publications of pharmaceutical manufacturing companies. Excluded are over-the-counter drugs,medicines,supplies and devices not requiring a prescription under state law or regulations; dietary formulas and special diets, except as set forth in Section X B , drugs used in the treatment of sexual dysfunction disorders; medicines and mjections for anticipated illness while traveling, vitamins, including Legend(prescription) vitamins,and any other drugs, medicines and injections not listed as covered in the GHC Drug Formulary (approved drug list) unless approved in advance by GHC as Medically Necessary The Member will be charged for replacing lost or stolen drugs,medicines or devices YOUR RIGHT TO SAFE AND EFFECTIVE PHARMACY SERVICES. State and federal laws establish standards to assure safe and effective pharmacy services, and to guarantee your right to]mow what drugs are covered under this plan and what coverage limitations are in your Agreement If you would like more information about the drug coverage policies under this plan, or if you have a question or concern about your pharmacy benefit,please contact us at 206-9014636 or 1-888-9014636 If you would like to know more about your tights under the law,or if you think anything you received from this plan may not conform to the terms of this Agreement, you may contact the Washington State Office of Insurance Commissioner at 1-800-562-6900 If you have a concern about the pharmacists or pharmacies serving you,please call the State Department of Health at 360-236-4825. K. MENTAL HEALTH CARE SERVICES. GHC and state law have established standards to assure the competence and professional conduct of mental health service providers, to guarantee your right to informed consent to treatment, to assure the privacy of your medical information, to enable you to know which services are covered under this Agreement and to know the limitations on your coverage If you would like a more detailed description than is provided here of covered benefits for mental health services under this Agreement, or if you have questions or concerns about any aspect of your mental health benefits, please contact GHC at 888-901-4636. If you would like to know more about your rights under the law,or if you think anything you received from this plan may not conform to the terms of your contract or your rights under the law, you may contact the Office of the Insurance Commissioner at 800-562-6900. If you have a concern about the qualifications or professional conduct of your mental health provider,please call the State Health Department at 360-236-4902 Services that are provided by a mental health practitioner, contracted or employed, to Members diagnosed as having a mental disorder that meet GHC's clinical necessity criteria for treatment, will be covered as mental health care,regardless of the cause of the disorder. 1. Outpatient Services. Outpatient mental health services provided by or authorized under Referral from GHC Behavioral Health Services place priority on restoring the Member to his/her level of functioning prior to the onset of acute symptoms or to achieve a clinically appropriate level of stability as determined by the GHC Medical Director, or his/her designee. Treatment for clinical conditions may utilize psychiatric, psychological and psychotherapy services to achieve these objectives. GHC's Medical Director, or his/her designee, shall determine the length and type of treatment plan and/or program and the frequency Coverage for each Member is provided according to the Outpatient Mental Health Care Allowance set forth in the Allowances Schedule Psychiatric medical services including medical management and prescriptions 0036900-C21431 36 are covered as set forth in Sections X B and X.J. GHC clinics and contracted practitioner offices may have office policies that determine how missed appointments will be managed Payment for charges of missed appointments are the responsibility of the Member. 2. Inpatient Services. Charges for services described in this section, including psychiatric Emergencies resulting in inpatient services, shall be covered to the maximum benefit as set forth in the Allowances Schedule Thts benefit shall include coverage for acute treatment and stabilization of psycluatric emergencies in GHC-approved hospitals. When medically indicated, outpatient electro-convulsive therapy (ECT) is covered in heu of inpatient services Payment of bills incurred at non-GH facilities shall exclude any charges that would otherwise be excluded for hospitalization within a GH Facility When authorized in advance by GHC's Medical Director, or his/her designee, partial hospitalization and outpatient electro-convulsive therapy treatments are covered subject to the maximum inpatient benefit hurt described in the Allowances Schedule Every two (2) partial hospitalization days or two (2) electro-convulsive therapy treatments are equivalent to one inpatient hospital day The total maximum annual benefit under this section shall not exceed the number of inpatient days described in the Allowances Schedule Subject to the maximum Inpatient Mental Health Care Allowance as set forth in the Allowances Schedule, services provided under involuntary commitment statutes shall be covered at facilities approved by GH Services for any court-ordered treatment program beyond the seventy-two(72)hours shall be covered only if determined to be Medically Necessary by GHCs Medical Director,or his/her designee Coverage for voluntary/mvoluntary Emergency inpatient psychiatric services is subject to the Emergency care benefit as set forth in Section X L, including the twenty-four (24) hour notification and transfer provisions All other voluntary psychiatric care must be authorized in advance by the Director of GHCs Behavioral Health, or his/her designee, the facility must be approved by the Cooperative All voluntary care not authorized in advance by GHCs Behavioral Health Service is not covered 3. Exclusions and Limitations for Outpatient and Inpatient Mental Health Treatment Services.Covered Services are hutted to those considered to be Medically Necessary by GHC's Medical Duector,or his/her designee Covered Services are limited to those provided for covered clinical conditions for which, in the opinion of GHC's Medical Director, or his/her designee,reduction or removal of acute clinical symptoms or stabilization can be expected. Partial hospitalization programs and electro-convulsive therapy are covered only under subsection K2 (Inpatient Services) Excluded from Behavioral Health coverage are all forms of day treatment (non partial hospital programs) and custodial care. Treatment specfc to and solely for personality disorders, learning, communication and motor skills disorders, mental retardation, academic or career counseling, are not covered under Behavioral Health coverage. Treatment specific to and solely for sexual and identity disorders,personal growth or relationship enhancement are not covered Specialty programs for mental health therapy which are not specifically authorized by Behavioral Health Services and approved by GHC, court-ordered treatment which is not specifically described above, or any other services not specifically listed as covered in this section. All other provisions, exclusions and limitations under this Agreement also apply L. EMERGENCY/URGENT CARE Emergency Care(See Section I for a defmmon of Emergency) 1. At a GH Facility or GH Designated Facility.GHC will cover Emergency care for all Covered Services as set forth in the Allowances Schedule 0036900-C21431 37 2. At a-Non-GH Designated Facility.Usual, Customary, and Reasonable charges for Emergency care for Covered Services are covered subject to a. payment of the Emergency Care Deductible shown in the Allowances Schedule,and b. notification of GH by way of the GH Notification Line within twenty-four (24) hours following inpatient admission,or as soon thereafter as medically possible. Outpatient medications prescribed by a non-GHC Provider are excluded 3. Waiver of Emergency Care Copayment/Deductible. a. Waiver for Multiple Injury Accident. If two or more members of the Family Unit require Emergency care as a result of the same accident, only one Emergency Care Copayment/Deductible will apply b. Emergencies Resulting in an Inpatient Admission. If the Member is admitted to a GH or GH Designated Facility directly from the emergency room, the Emergency Care Copayment is waived. However,the first day's Hospital Care Copayment,if any,will be charged. 4. Transfer and Follow-up Care.If a Member is hospitalized in a non-GH Facility, GHC reserves the right to require transfer of the Member to a GH Facility or GHDesignated Facility,upon consultation between a GHC Provider and the attending physician. If the Member refuses to transfer to a GH Facility or GH Designated Facility, all further costs incurred during the hospitalization are the responsibility of the Member Follow-up care which is a direct result of the Emergency must be obtained from GHC Providers,unless a GHC Provider his authorized such follow-up care in advance. Urgent Care(See Section I for a definition of Urgent Condition). Urgent Care.Care for Urgent Conditions received inside the GHC Service Area is covered only at GH medical centers, GH urgent care clinics,or network providers' offices Urgent care received at any hospital emergency department is not covered unless authorized in advance by a GHC Provider M. AMBULANCE SERVICES are covered as set forth below,provided that the service is authorized in advance by a GHC Provider or meets the definition of an Emergency (See Section I) 1. Emergency Transport to a GH Facility, GH Designated Facility, or non-GH Designated Facility. Each Emergency is covered as set forth in the Allowances Schedule 2. GH-Initiated Transfers GH-initiated non-emergent transfers to or from a GH Facility or GH Designated Facility are covered N. SKILLED NURSING FACILITY care in a GH-approved skilled nursing facility when full-time skated nursing care is necessary in the opinion of the attending GHC Provider, as set forth in the Allowances Schedule When prescribed by a GHC Provider, such care may include board and room;general nursing care; drugs, biologicals,supplies, and equipment ordinardy provided or arranged by a skilled nursing facility;and short- term physical therapy,occupational therapy,and restorative speech therapy. Excluded from coverage are personal comfort items such as telephone and television; and rest cures, custodial, domiciliary or convalescent care _ Section XI. Exclusions 0036900-C21431 38 In addition to exclusions listed in the previous sections,the following are excluded- 1 Except as specifically listed and identified as covered in Sections X B, X D., X H, and X J, corrective appliances and artificial aids including eyeglasses; contact lenses, including services related to their fitting, hearing devices, hearing aids and examinations in connection therewith, take-home dressings and supplies following hospitalization, or any other supplies, dressings, appliances, devices or services which are not specifically listed as covered in Section X. 2 Cosmetic services, including treatment for complications of cosmetic surgery, except as provided in Section X D 3. Convalescent or custodial care 4 Durable medical equipment such as hospital beds,wheelchairs, and walk-aids, except while in the hospital or as set forth in Section X B.,X.F or X H S Services rendered as a result of work-related injuries, illnesses or conditions,including injuries,illnesses or conditions incurred as a result of self-employment 6 Those parts of an examination and associated reports and immunizations required for employment(unless otherwise noted in Section X.B), immigration, license, travel, or insurance purposes that are not deemed Medically Necessary by GHC for early detection of disease 7 Services and supplies related to sexual reassignment surgery, such as sex change operations or transformations and procedures or treatments designed to alter physical characteristics 8 Regardless of origin or cause, diagnostic testing and medical treatment of sterility, infertility, and sexual dysfunction,unless otherwise noted in Section X B 9 Any services to the extent benefits are available to the Member under the terms of any vehicle, homeowner's, property or other insurance policy, except for individual or group health insurance,whether the Member asserts a claim or not, pursuant to- (1) medical coverage, medical "no fault" coverage, Personal Injury Protection coverage, or similar medical coverage contained in said policy, and/or (2) iminsured motorist or underinsured motorist coverage contained in said policy. For the purpose of this exclusion, benefits shall be deemed to be "available" to the Member if the Member is a named insured, comes within the policy definition of insured, is a third-party donee beneficiary under the terms of the policy,or otherwise has the tight to receive benefits under the policy. The Member and his or her agents must cooperate fully with GHC in its efforts to enforce this exclusion. This cooperation shall include supplying GHC with information about any available insurance coverage The Member and his or her agents shall permit GHC at GHC's option, to associate with the Member or to intervene in any action filed against any party related to the injury The Member and his or her agents shall do nothing to prejudice GHC's tight to enforce this exclusion In the event the Member fails to cooperate fully,the Member shall be responsible for reimbursing GHC for such medical expenses. GHC shall not enforce this exclusion as to coverage available under uninsured motorist or underinsured motorist coverage until the Member has been made whole,unless the Member fails to cooperate fully with GHC as described above GHC shall not pay any attorneys' fees or collection costs to attorneys representing the injured person where it has retained its own legal counsel or acts on its own behalf to represent its interests and unless there is a written fee agreement signed by GHC prior to any collection efforts. Under no circumstances will GHC pay legal fees jar services which were not reasonably and necessarily incurred to secure recovery and/or which do not benefit GHC If it becomes necessary for GHC to enforce the provisions of this section by 0036900-C21431 39 initmting any action against the injured person or his or her agent,then the injured person agrees to pay GHC's attorneys'fees and costs associated with the action. 10. Services or supplies not specifically listed as covered in the Schedule of Benefits. 11. Voluntary(not medically indicated and nontherapeutic) termination of pregnancy, unless otherwise noted in Section X B 12 The cost of services and supplies resulting from a Member's loss of or willful damage to covered appliances,devices,supplies,and materials provided by GHC for the treatment of disease,injury,or illness 13. Orthoptic(eye training)therapy. 14 Specialty treatment programs such as weight reduction, rehabilitation (including cardiac rehabilitation), and"behavior modification programs" 15 Services required as a result of war, whether declared or not declared Care needed for mltmes or conditions resulting from active or reserve military service 16 Nontherapeutic sterilization (unless otherwise noted in Section X B) and procedures and services to reverse a therapeutic or nontherapeutic sterilization. 17 Dental care, surgery, services, and appliances, including treatment of accidental injury to natural teeth, reconstructive surgery to the jaw in preparation for dental implants, dental implants, penodontal surgery, and any other dental services not specifically listed as covered in Section X The Cooperative's Medical Director, or his/her designee, will determine whether the care or treatment required is within the category of dental care or service. 18 Dings, medicines, and injections, except as set forth in Section X.J Any exclusion of drugs, medicines, and injections,including those not listed as covered in the GHC Drug Formulary(approved drug list), will also exclude their administration 19 Experimental or investigational services (a) A service is experimental or investigational for a Member's condition if any of the following statements apply to it as of the time the service is or will be provided to the Member The service(i) cannot be legally marketed in the United States without the approval of the Food and Drug Administration("FDA") and such approval has not been granted, or(u) is the subject of a current new drug or new device application on file with the FDA; or(ui) is provided as part of a Phase I or Phase II clinical trial, as the experimental or research arm of a Phase III clinical trial, or in any other manner that is intended to evaluate the safety,toxicity,or efficacy of the semce; or(iv)is provided pursuant to a written protocol or other document that lists an evaluation of the service's safety,toxicity,or efficacy as among its objectives, or(v)is under continued scientific testing and research concerning the safety, toxicity, or efficacy of services, or (vi) is provided pursuant to informed consent documents that describe the service as experimental or investigational,or in other terns that indicate that the service is being evaluated for its safety, toxicity, or efficacy, or As to the service (vu) the prevailing opinion among experts as expressed m the published authoritative medical or scientific literature is that(1)use of the service should be substantially confined to research settings, or(2) further research is necessary to determine the safety,toxicity,or efficacy of the service (b) In making determinations whether a service is experimental or investigational,the following sources of information will be relied upon exclusively (i ) the Member's medical records, (m) the written protocol(s) or other document(s)pursuant to which the service has been or will be provided, (in) any consent document(s)the Member or Member's representative has executed or will be asked to execute, to receive the service, (iv) the files and records of the Institutional Review Board (IRB) or sirmlar body that approves or reviews research at the institution where the service has been or will be 0036900-C21431 40 -provided,and other information concerning the authority or actions of the IRB or similar body,(v)the . published authoritative medical or scientific literature regarding the service, as applied to the Member's illness or injury, and (vi) regulations, records, applications, and any other documents or actions issued by, filed with, or taken by, the FDA, the Office of Technology Assessment, or other agencies within the United States Department of Health and Human Services, or any state agency performing similar functions. (c) GHC consults with GHC's Medical Director and then uses the criteria described above to decide if a particular service is experimental or investigational Appeals regarding denial of coverage must be submitted to your regional Member Services Department, or west of the Cascade mountains to GHCs Appeals Department at Administration and Operations Campus, PO Box 34593, Seattle WA 98124-1593 or east of the Cascade mountains to GH's Patient Relations Department at 5615 West Sunset Highway, Spokane, WA 99224. GHC will respond in writing within twenty(20)working days of the receipt of a fully documented request. An expedited appeal is available if delay would jeopardize the Member's life or health 20. Mental health care,except as specifically provided in Section X IC 21 Hypnotherapy,and all services related to hypnotherapy 22. Genetic testing and related services are excluded unless determined Medically Necessary by GHC's Medical Director, or his/her designee, in accordance with Board of Health standards for screening and diagnostic tests,or specifically provided in Section X B Testing for non-Members is also excluded 23. Follow-up visits related to a non-Covered Service 24 Routine ultrasound to determine fetal age,size or sex 25. Missed appointment or cancellation fees. 26 Routine foot care except in the presence of a non-related Medical Condition affecting the lower limbs. 17. Complications of non-Covered Services. 2& Treatment of obesity,except as set forth in Section KB. Section MI. Claims Claims for benefits maybe made before or after services are obtained To make a claim for benefits under this agreement, a Member (or the Member's authorized representative) must contact GHC Customer Service, or submit a claim for reimbursement as described below. Other inquiries, such as asking a health care provider about care or coverage,or submitting a prescription to a pharmacy,will not be considered a claim for benefits. If a Member receives a bill for Covered Services,the Member must,within sixty(60)days of the service date,or as soon thereafter as is reasonably possible, either a) contact GHC Customer Service to make a claim or b)pay the bill and submit a claim for reimbursement of Covered Services to GHC. If the Member is located west of the Cascade mountains,submit clauns for reimbursement to PO Box 34585, Seattle, WA 98124-1585,if the Member is located east of the Cascade mountains submit claims to PO Box 200, Spokane, WA 99210-0200 In no event, except in the absence of legal capacity,shall a claim be accepted later than one(1)year from the service date GHC will generally process claims for benefits within the following timeframes after GHC receives the claims. • Pre-service claims-within 15 days,or an extension of up to 15 days will be requested • Claims involving urgently needed care-within 71 hours 0036900-C21431 41 Concurrent care claims—within 24 hours . . Post-service claims—within 30 days,or an extension of up to 15 days will be requested. In some circumstances, timeframes may be wended if GHC requests additional information. 0036900-C21431 42 Medicare Endorsement 40 For Persons Covered by Parts A and B of Medicare THE PROVISIONS OF THE GROUP MEDICAL COVERAGE AGREEMENT SHALL REMAIN IN EFFECT EXCEPT AS MODIFIED BY THE ADDITION OF THE PROVISIONS, EXCLUSIONS, AND LIMITATIONS CONTAINED IN THIS MEDICARE ENDORSEMENT. IN NO EVENT SHALL THE BENEFITS UNDER THIS ENDORSEMENT DUPLICATE THE BENEFITS UNDER THE GROUP MEDICAL COVERAGE AGREEMENT. THE HIGHER LEVEL OF BENEFIT WILL APPLY. COVERAGE UNDER THIS GROUP MEDICAL COVERAGE AGREEMENT IS INTEGRATED WITH THE MEDICAL AND HOSPITAL BENEFITS ESTABLISHED BY TITLE 18 OF THE SOCIAL SECURITY ACT AS AMENDED, AND REFERRED TO AS "MEDICARE." THE BENEFITS AND EXCLUSIONS DESCRIBED IN THIS ENDORSEMENT APPLY ONLY TO MEMBERS WHO ARE COVERED UNDER BOTH PART A AND PART B OF MEDICARE. Group Health Cooperative offers two parts of Medicare arrangements for employer group members living in the Group Health service area 1) If you are a member living in the service area where the Group Health Medicare+Choice Plan is available you must have both Parts A & B of Medicare and be enrolled in this plan. Those enrolled under GH's Medicare plan, as set forth in this Endorsement, may be subject to copayment. 2) If you are a member living in the service area where the Medicare+Choice plan is not available, you must still enroll in and maintain both Medicare Parts A & B in order for your employer group plan to coordinate benefits with Medicare. 3) In order to be eligible for Part B Only benefits members must have been enrolled in Group Health prior to January 1, 1999. Except as defined by Federal Regulations, all Members entitled to, or eligible to purchase Medicare must transfer to the GH Medicare+Choice Plan upon such entitlement or eligibility A condition of enrollment under the GH Medicare+Choice Plan requires that a Member be continuously enrolled for the hospital (Part A) and medical (Part B) benefits available from the Social Security Administration, and sign any papers that may be required by GH or Medicare. For additional information, the Member may refer to "Medicare & You handbook,"which can be obtained from your local Social Security office NEITHER GH NOR MEDICARE MAY PAY FOR SERVICES PROVIDED AT NON-GH FACILITIES UNLESS THE MEMBER HAS BEEN REFERRED BY GH OR THE MEMBER HAS RECEIVED EMERGENCY OR URGENTLY NEEDED SERVICES OR OUT OF AREA RENAL DIALYSIS SERVICES ACCORDING TO SECTION V.D OF THIS MEDICARE ENDORSEMENT OR THE MEMBER HAS RECEIVED NON-EMERGENT AND/OR NON- 0036900-C21431 43 URGENTLY NEEDED CARE AT FACILITIES OUTSIDE THE SERVICE AREA UNDER YOUR POINT-OF SERVICE(POS)BENEFIT AS SET FORTH IN SECTION V.F. Tlus Endorsement does not constitute a"Medicare supplemental'contract. SECTION I. HEALTHCARE TERMS CENTER for MEDICARE and MEDICAID SERVICES (CMS) formerly known as HCFA: The Federal Agency responsible for admuustenng Medicare. CUSTODIAL CARE: Care furnished for the purpose of meeting non-Medically Necessary personal needs which could be provided by persons without professional skills or training, such as assistance in mobility, dressing, bathing, eating, preparation of special diets, and taking medication. Custodial Care is not covered by the GH M+C Plan or Medicare unless provided in conjunction with Skilled Nursing Care and/or skilled rehabilitation services. . EMERGENCY CONDITION: A medical condition manifesting itself by acute symptoms of sufficient seventy (including severe pain) such that a prudent lay person with an average knowledge of health and medicine could reasonably expect the absence of immediate medical attention to result 1) Serious jeopardy to the health of the individual or, in the case of a pregnant woman, the health of the woman or her unborn child; 2) Serious impairment to bodily functions; or 3) Serious dysfunction of any bodily organ or part EMERGENCY SERVICES: Covered inpatient and outpatient services that are furnished by a provider qualified to furrush emergency services needed to evaluate or stabilize an emergency medical condition MAXIMUM CHARGES: A term used to define the level of benefits which are payable by GH when expenses are incurred from a non-GH physician or provider Expenses are considered Maximum Charges if(1) the charges are consistent with those normally charged by the provider or organization for the same services or supplies, and(2) the charges are within the general range of charges made by other providers in the same geographical area for the same services or supplies MEDICARE. The federal health insurance program for people 65 years of age or older, certain younger people with disabilities, and people with End Stage renal Disease (generally those with permanent kidney failure who need dialysis). MEDICARE+CHOICE(M+C) COORDINATED CARE PLANS:These are M+C Plans that use a network of providers that are under contract or arrangement with a Medicare+Choice Organization to provide covered benefits. The GH M+C Plan is a Coordinated Care Plan. MEDICARE+CHOICE (M+C) ORGANIZATION• A public or private entity organized and licensed by the State as a nsk-bearing entity that is certified by CMS as meeting M+C contract requirements. M+C Organizations can offer one or more M+C Plans GH is an M+C Organization. 0036900-C21431 44 MEDICARE+CHOICE PLAN (M+C): A policy or benefit package offered by a Medicare+Choice Organization under which a specific set of health benefits offered at a uniform premium and umform level of cost-sharing to all Medicare beneficiaries residing in the service area covered by the Plan. An M+C Organization may offer more than one benefit Plan in the same Service Area. The GH Plan is an M+C plan. PERMANENT MOVE: A permanent change of residence out of the service area or an uninterrupted absence of more than six (6)months from GHC's Service Area. POINT OF SERVICE (POS): A benefit that GH offers to its M+C Members while temporarily traveling outside-of-the GH M+C Plan Service Area for non-emergent and/or non-urgently needed care. In return for this flexibility, members have higher cost-sharing requirements for these services. REFERRAL: A formal recommendation by your Primary Care Physician or his/her Contracting Medical Group that you receive care from a Specialist, Contracting Medical Provider, or Non- Contracting Medical Provider. SERVICE AREA: The geographic area comprised of parts of Grays Harbor, Island, King, Kitsap, Lewis, Pierce, parts of Mason, San Juan, Skagit, Snohomish, Thurston, and Whatcom Counties, and any other areas designated by GH and approved by the Health Care Financing Administration. SKILLED NURSING FACILITY A facility (or distinct part of a facility) which is primarily engaged in providing to its residents mpatient Skilled Nursing Care, rehabilitation services, or other related health services and is certified by Medicare The term "Skilled Nursing Facility" does not include a convalescent nursing home, rest facility, or facility for the aged which finnishes primarily Custodial Care, including traming in routines of daily living. URGENTLY NEEDED CONDITION Covered Services provided when you are temporarily absent from the GH M+C Plan Service Area(or, under unusual and extraordinary circumstances, provided when you are in the Service Area but your Contracting Medical Group is temporarily unavailable or inaccessible) when such services are Medically Necessary and immediately required 1) as a result of an unforeseen illness, injury, or condition, and 2) it is not reasonable, given the circumstances, to obtain the services through your Contracting Medical Group. SECTION 11. DISENROLLMENT Enrollment under the GH M+C Plan for a specific Member may be terminated in the circumstances set forth below. Until such time as a Member's termination of enrollment from GH is effective,neither Medicare nor any other Medicare+Choice organization shall pay for services for which GH is responsible While a Member is enrolled with GH, GH will only cover the following services provided by non-GH Providers,non GH-Facilities, or non-GH Designated Facilities: (1) Referrals authorized 0036900-C21431 45 by a GH Provider; (2) Emergency services anywhere in the world, Urgent Care, or out-of the area renal dialysis services as set forth in Section V.D., or (3) Non-Emergent and/or Non- Urgently Needed care at facilities outside the Service area under your point-of service (pos) benefit, as set forth in Section V.F. Upon termination of membership in GH,neither GH nor GH Providers shall have further liability or responsibility under this Agreement for Member's health care services. A. Voluntary Disenrollment You may choose to end your membership in the GH M+C Plan for any reason. If you want to disenroll,write a letter or complete a disenrollment form and send it to the GH Customer Service Department. You may also disenroll through any Social Security Administration or Railroad Retirement Board office or you can call 1 (800)MEDICARE. The date of your disenrollment will depend on when your request to disenroll is received In general, requests to disenroll will be effective the first day of the month after the month the disenrollment request is received Even though you have requested disenrollment, you must still get all routine services from GH Contracting Medical Providers until you are notified of the effective date of your disenrollment GH will send you a letter that confirms when your disenrollment is effective. You will be covered by Original Medicare after you disenroll from GH unless you have joined another Medicare Managed Care Plan. B. Involuntary Disenrollment. GH must disenroll you from the GH M+C Plan if. 1 You move permanently out of the service area and do not voluntarily disenroll or choose Continuation of coverage, Z You live outside the plan's service area for more than six months at a time. 3 You do not have Medicare Part A and/or Part B, or 4. The contract between GH and CMS under which the GH M+C Plan is offered is terminated,or the GH M+C Plan service area is reduced. GH may disenroll you from the GH M+C Plan under the following conditions 1. If you supply fraudulent information or make misrepresentations on your individual election form which materially affects your eligibility to enroll in the GH M+C Plan, 2 If you are disruptive, unruly, abusive or uncooperative to the extent that your membership in the GH M+C Plan seriously mipaus our ability to arrange Covered Services for you or other individuals enrolled in the plan. Involuntary Disenrollment on this basis is subject to prior approval by CMS; 0036900-C21431 46 3. If you allow another person to use your GH M+C Plan membership card to obtain Covered Services, 4. You fail to pay the Plan basic Premiums. We will notify you of a 90-day grace period to pay the premiums before you are disenrolled. Your 90-day grace period will start as of the date you are notified of the delinquent payment. C. Persons Hospitalized on the Date of Termination. A Member who is a registered bed patient receiving Covered Services in a GH Facility or GH Designated Facility on the date of termination shall continue to receive covered inpatient services, until discharge from the facility. This continued coverage will also apply to a Member hospitalized in a Medicare- certified non-GH Designated Facility as a result of Emergency or Urgently Needed Services or Referral as set forth in Section VI.B. of this Medicare Endorsement. D. Services Provided After Termination.Any services provided by GH after the effective date of termination (except those services covered under Section II.C. of this Medicare Endorsement) shall be charged according to the fee schedule. The Subscriber shall be liable for payment of all such charges for services provided to the Subscriber and all Family Dependents SECTION III. COORDINATING OTHER BENEFITS YOU MAY HAVE Who Pays First? If you are age 65 or older and have coverage under an employer group plan of an employer of twenty (20) or more employees, either based on your own current employment or the current employment of a spouse, you must use the benefits under that plan. Similarly, if you have Medi- care based on disability and are covered under an employer group plan of an employer of one hundred(100) or more employees (or a multiple employer plan that includes an employer of one hundred or more employees) either through your own current employment or that of a family member, you must use the benefits under that plan. In such cases, you will only receive benefits not covered by your employer group plan through our contract with Medicare. A special rule applies if you have or develop End-Stage Renal Disease(ESRD). If any no-fault or any liability insurance (or payment from a liable third party) is available to you, then benefits under that plan (or from that liable third party) must be applied to the costs of health care covered by this plan. Where we have provided benefits and a judgment or settlement is made with a no-fault or liability insurer (or liable third party), you must reimburse us. How- ever, our reimbursement may be reduced by a share of procurement costs (e.g , attorney fees and costs). Workers' compensation for treatment of a work-related illness or injury should also be applied to covered health care costs by thus plan. If you have (or develop) ESRD and are covered under an employer group plan, you must use the benefits of that plan for the first thirty(30)months after becoming eligible for Medicare based on ESRD. Medicare is the primary payer after this coordination period. (However, if your employer 0036900-C21431 47 group plan coverage was secondary to Medicare when you developed ESRD because it was not based on current employment as described above, Medicare continues to be primary payer.) Because of this, we may ask you for information about other insurance you may have. If you have other insurance, you can help us obtain payment from the other insurer by providing the information we request promptly. Coordination of benefits protects you from higher Plan Premiums The end result is more affordable health care. SECTION IV. APPEAL AND GRIEVANCE PROCEDURES A. Grievances. If a member is dissatisfied with care or services received at a Medical or Dental Office or Hospital, or a Member disputes amounts owed, eligibility or membership status, the Member may submit a written grievance to GHC. GH will conduct a formal review and provide a written response within 60 days of the time all pertinent materials are received B. Standard Expedited Requests for Care or Service. 1. Standard Request. The Member may request that care or a service be covered by GH on the basis that it is a Medicare covered service. GH will reach a decision within 14 days. GHC's decision may be delayed an additional 14 days if it is in the Member's best interest or upon the Member's request 2. Expedited Request If a member requests care or a service they believe is covered by Medicare and the Member believes and/or his/her physician states that a delay in making a determination about coverage could jeopardize the Member's health or ability to function, the Member may request an expedited decision In most instances, GH will reach a decision within 72 hours. GH's decision may be delayed an additional 14 working days if it is in the Member's best interest to delay a decision or upon the Member's request. GH's decision may also be postponed in the event information for a non-GH provider has not been received in a timely manner. If GH grants a Member's request for an expedited decision, GH will orally notify the Member and follow-up within two (2) working days, with a written letter. If a Member disagrees with GH's decision not to expedite his/her request,the Member may file a grievance C. Appeals. Members have a right to appeal any decision in which GH declines to provide, cover, or pay for services that the Member believes are covered by Medicare If GH declines to provide or to cover a service, GH will provide the Member with a Notice of Non-coverage containing the reason(s) for the denial and an explanation of the Member's appeal rights. Members who disagree with a decision by GH may submit a written appeal to GH. Members appealing a denied claim for payment for a service already provided or arranged may request a standard 60-day appeal. Members appealing a request for a future service may ask for 0036900-C21431 48 either a standard 30 day appeal or an Expedited (72-hour) appeal if the Member believes (or the Member's Provider states) that a delay in responding to the Member's appeal could seriously jeopardize his/her health or ability to function Appeals will be reviewed by persons not involved in the initial decision. If GH decides to uphold the original adverse decision, either in whole or in part, the entire file will be forwarded by GH to CHDR for review. 1. Standard Appeal. a. 60-Day Appeals for Claim for Payment. A member may submit an appeal requesting a second review at any time GH denies coverage for services already provided or arranged by either GH or a non-GH provider or facility, or for future services Member must submit appeals in writing to GH, or to any Social Security Office, or in the case of a railroad retirement annuitant, a Railroad Retirement Board Office, within 60 days of receiving notice of GH's initial decision After receiving all pertinent materials,GH will conduct a formal review of the appeal. GH will notify the Member of its decision within 60 days of receipt. If GH decides fully in the Member's favor, GH will pay the claim(s) within 60 days of receipt of the member's appeal If GH upholds any part of the initial denial, the entire file will be forwarded by GH to CHDR for review. CHDR will make a reconsideration decision and advise the Member of its decision, the reasons for the decision and the right to additional appeal rights. b. 30-Day Appeals for Denials of Future Services. A Member may submit an appeal requesting a second review at any time GH denies coverage for future services Members must submit appeals in writing to GH, or to any Social Security Office, or in the case of a railroad retirement annuitant, a Railroad Retirement Board Office, within 60 days of the date of GHC's initial decision. After receiving all pertinent materials, GH will conduct a formal review of the appeal GH will notify the Member of its decision within 30 days of receipt. GH's decision may be extended an additional 14 days if it is in the Member's best interest or upon the Member's request. If GH upholds any part of the initial denial, the entire file will be forwarded by GH to CMS's contractor, The Center for Health Dispute Resolution (CHDR) for review CHDR will make a reconsideration decision and advise the Member of its decision, the reason for the decision, and the right to additional appeal rights. 2. Filing an Expedited (72-hour)Appeal (does not apply to denied claims for payment) If a delay in receiving a decision could jeopardize the Member's health or ability to function, the Member or his/her Physician may submit a request for an expedited appeal either orally or in writing to GHC D. Quality Improvement Organization("QIO"). "QIO" stands for Quality Improvement Organization (these organizations used to be called "Peer Reivew Organizations" or PROs). The QIO is a group of doctors and other 0036900-C21431 49 health care experts paid by the Federal Government to check on and help improve the care given to Medicare patients. There is a QIO in each state. QIOs have different names, depending on which state they are in. In Washington State, the QIO is called Qualis Health. A Member may request a"QIO" review if GH denies coverage of a continued inpatient stay in a hospital on the basis of medical necessity. A Member may request immediate QIO review by phone or in writing. If a Member requests a QIO review by noon of the first business day after a Member has received a Notice of Non-coverage, the Member will not be financially responsible for the cost of the continued hospitalization until the QIO's determination. GH will provide the Member written notice of procedures by which to request a QIO review. If a Member requests a QIO review, the Member may not pursue the Standard Appeal Procedure and/or the Expedited Appeal Procedure with respect to denial of the same hospital stay. A Member may contact Qualis Health at PO Box 33400, Seattle, WA 98133-0400 or 10700 Meridian Ave N, Suite 100, Seattle, WA 98133-9075, telephone number(206) 364-9700 or Fax: (206) 368-2419. E. Additional Appeal Rights. If CMS upholds GH's initial determination and denies the appeal and if the amount in controversy is $100 00, or more the Member may request a hearing before an administrative law judge of the Social Security Administration. The Member may request a hearing before an administrative law judge by writing to GH, CMS, or a Social Security Office within 60 days after the date of notice of an adverse reconsideration decision. If the administrative law judge denies a Member's appeal, either the Member or GH may request a review by the Social Security Administration's Appeals Council. If a Member's appeal is denied by the Appeals Council and if the amount in controversy is $1,000 00,or greater the Member or GH may request a review by the Department Appeals Board (DAB). An initial, revised, or reconsideration determination made by GH, CMS, an administrative law judge, or the Appeals Council can be reopened (a) within twelve months, (b) within four years for just cause, or(c) at any time for clerical correction or in the case of fraud The Medicare Appeals Coordinator can be reached by writing to Group Health Cooperative, c/o Medicare Appeals Coordinator, P.O. Box 34593, Seattle WA 991324, or by calling (206) 901- 7350 or toll-free at 1-(888)-901-4636 or TTY/TDD 711 or 1-800-833-6388, for the "hearing impaired"or by fax at(206) 901-7340 . SECTION V. SCHEDULE OF MEDICAL BENEFITS 0036900-C21431 50 All benefits and services listed in this Schedule of Benefits: • are subject to all provisions of this Agreement and Medicare Endorsement; • must be approved in advance by GH except for Emergency and Urgently Needed Services as set forth in Section V.D. of this Medicare Endorsement, and • must meet Medicare guidelines and limitations unless otherwise specified. GH has procedures to assist GH Providers in establishing a treatment plan for Members with complex or serious medical conditions New Members should discuss all his/her medical concerns with the GH Primary Care Provider selected. New members may expect their health status to be assessed within 90 days of their enrollment. GH will ensure that services are provided in a culturally competent manner GH Providers will provide information regarding treatment options in a culturally competent manner and will accommodate Members with disabilities GH covers all Medicare deductibles and coinsurance. The booklet, "Medicare & You"provides additional information about Medicare benefits and can be obtained from your local Social Security office, or your Washington State Part B camer's office. Services received at facilities outside the GH Service Area may be covered for non-emergent and/or non-urgently needed care subject to the Point of service benefits set forth in the Summary of Medical Benefits. All Medicare non-covered expenses, including deductibles and coinsurance, are the responsibility of the Member. A. Skilled Nursing Facility. Upon Referral and followmg a Medicare-certified three (3) day hospital stay, GH will cover 100 days of Medicare covered Skilled Nursing Facility care per benefit period. All Medicare criteria must be met and the stay must be authorized in advance by the plan. B. Hospice. Members with Part A and Part B of Medicare who elect to receive Medicare-covered hospice services may select any Medicare-certified hospice program Members who elect to receive services from the GH Hospice Program are entitled to hospice services as provided under the Medicare Hospice Program. Members who elect to receive hospice services do so in lieu of curative treatment for their temunal illness for the penod that they are in the hospice program. To receive hospice services, the Member is required to sign the Hospice Election Form. Covered Services. In addition to the hospice services provided under the Group Medical Coverage Agreement, the following hospice services shall be provided: 0036900-C21431 51 1. Home Services Continuous care services per Member in the Member's home when prescribed by a GH provider, as set forth in this paragraph. Continuous care is defined as "skilled nursing care provided in the home during a period of crisis in order to maintain the terminally ill patient at home." Continuous care may be provided for pain or symptom management by a Registered Nurse, Licensed Practical Nurse, or Home Health Aide under the supervision of a Registered Nurse. Continuous care may be provided up to twenty-four (24) hours per day dunng penods of crisis. Continuous care is covered only when a GH provider determines that the Member otherwise would require hospitalization in an acute care facility. 2. Inpatient Hospice Services for short-term care shall be provided through a Medicare- certified Hospice Program when Medically Necessary, and authorized in advance by a GH provider. Respite care is covered for a maximum of five (5) consecutive days per occurrence in order to continue care for the Member in the temporary absence of the Member's primary care-giver(s). 3. Other hospice services may include the following: a. drugs and biologicals that are used primarily for the relief of pain and symptom management, • b. medical appliances and supplies primarily for the relief of pain and symptom management; c counseling services for the Member and his/her primary care-giver(s), and d. bereavement counseling services for the family. C. Mental Health Care, Alcoholism and Drug Abuse Treatment Services. 1. Outpatient mental health, alcoholism and substance abuse treatment services are covered for each Member in accordance with Medicare Guidelines. 2. Inpatient mental health care services are covered in full up to a 190-day lifetime benefit when such services are provided in a Medicare-certified psychiatric hospital 3. Inpatient alcoholism and drug abuse treatment services are covered in full when such services are provided in a hospital-based treatment center. Coverage for Medical Emergencies incident to alcoholism and drug abuse or for acute alcoholism or drug abuse, including acute detoxification, is provided as set forth in Section V D. of this Medicare Endorsement. 0036900-C21431 52 D. Emergency/Urgently Needed Services. When an Emergency meets the Medicare definition for Emergency or Urgently Needed Services as defined in Section I. of this Medicare Endorsement, services are covered in full,subject to the applicable copayments. E. If the Member is hospitalized in a non-GH Facility and requires continued inpatient care GH will continue to cover the non-emergent care and services at the non-GH Facility needed by the Member to remain medically stable until: (1) the Member is discharged; (2) a GH Provider arrives and assumes responsibility for the Member's care; or (3) GH and the Member's treating physician decide the member may be transferred without harmful medical consequences wluchever occurs first. A decision to transfer the member to a GH Facility is made at the discretion of GH with the attending physician's concurrence. Post-stabilization care at a non-GH facility will be covered when: (a) Pre-approved by Group Health; or (b)Not pre-approved because Group Health did not respond to the request for pre- approval within one (1) hour after being requested to approve such care, or Group Health could not be contacted for pre-approval. F. POINT OF SERVICE (FOS). Non-Emergent and/or non-urgently needed care received while temporarily traveling outside GH's Medicare Service Area is payable at Medicare benefit levels up to $2,000.00 per member per calendar year. The plan pays 80% of the Medicare allowable reimbursement schedules for Medicare covered services only. The enrollee is responsible for all Medicare deductibles and coinsurance. Coverage under this benefit does NOT include coverage of prescription drugs or traveling primarily for the purpose of seeking medical care. G. Medicare Ambulance Benefit (including air, water, or ground transport) Medically Necessary ambulance transportation to or from a hospital or Skilled Nursing Facility is covered in full Medically necessary emergency ambulance transportation outside the United States or the U S. territories is covered only if transportation by any other vehicle could endanger the patient's health. H. Medical and Surgical Care. The following medical and surgical services are covered when prescribed by GH Medical Personnel and Medicare requirements are met 1. Eye examinations and treatment for eye pathology. Evaluations and surgical procedures to correct refractions which are not related to eye pathology are not covered. Complications related to such surgery are also excluded 2. One pair of eyeglasses or contact lenses, including examination and fitting, following each cataract surgery with insertion of an introcular lens (10L). Covered eyeglasses and contact lenses must be dispensed through GH Facilities. Replacements for Members following insertion of an intraocular lens are set forth in Section H.13 below. Replacements in the absence of an intraocular lens will be provided when needed due to change in the Member's medical condition or when deemed appropriate by a GH physician. 0036900-C21431 53 3. Blood, blood derivatives, including storage, and their administration. 4 Maternity and pregnancy-related services, including visits before and after birth; involuntary termination of pregnancy; and care for any other complication of pregnancy. 5. Organ transplants, limited to those covered by Medicare when all Medicare criteria have been met. 6. Physician calls (including consultations and second opinions by a GH physician) in the hospital,office,home, Skilled Nursing Facility, nursing home, or convalescent center. 7. Restorative physical, occupational, speech and language therapy, and cardiac rehabilitation following illness,injury,or surgery. 8. Immunizations and vaccinations that are listed as covered in the GH Drug Formulary (approved drug list) or approved by Medicare. 9. Services related to dysfunction of the jaw. When referred by a GH physician, evaluation and treatment by a GHC-approved temporomandibular joint (TMJ) care provider All TMJ appliances, other than the occlusal splint and its fitting, are excluded. Treatment of jaw dysfunction, including TMJ dysfunction, will NOT be provided when the dysfunction is related to malocclusion or when TMJ services are needed due to dental work performed. All such services and related hospitalization, including orthodontic therapy and orthognathic (law) surgery, are excluded regardless of origin or cause (See Section X B.17 of the Group Medical Coverage Agreement for Covered Services not meeting Medicare guidelines). 10. Chiropractic care limited to spinal manipulations. Excluded are any other diagnostic or therapeutic services, including x-rays, furnished by a chiropractor Members must receive all chiropractor services from GHC's designated licensed providers in order to be covered A list of GHC-designated licensed practitioners is available by contacting any GH area medical center. 11. Podiatric care. Services are covered when all Medicare criteria are met and when authorized in advance by your Primary Care Provider. Excluded is treatment of flat feet or other misalignments of the feet; removal of coms and calluses; and routine foot care such as hygienic care, except in the presence of a non-related medical condition affecting the lower limbs. Members must utilize GHC's designated providers in order to be covered. • 12.Home intravenous (IV)drug therapy services. _ 0036900-C21431 54 13. Ro-atine eye examinations and refractions, limited to once every twenty-four (24) M months, except when Medically Necessary Services for routine eye examinations must be received at a GH Facility and in accordance with GH medical criteria in order to be covered and are not subject to Medicare requirements. Lenses One pair of standard glass single vision, lenticular, or non-blended bifocal or trifocal lenses, or contact lenses, will be covered subject to the GH-approved allowance once every twenty-four(24) months, and replaced as specified below, when received at a GH facility and in accordance with GH medical criteria. Frames. An Allowance of up to $100 per Member once every 24 months will be provided for frames. Replacements. Lens replacement for any reason (including loss, breakage or change in prescription) will be provided not more often than once every 24 months. Replacement of frames will be provided subject to the frames Allowance set forth above not more often than once every 24 months. 14. Hearing examinations to determine hearing loss. Hearing aids, including examinations and fitting, must be received at a GH Facility and are covered up to a maximum of$250 per Member once every 24 months. 15. Diabetic education and training, including glucose monitors testing strips and lancets for all diabetics. 16. Renal dialysis services required while temporarily away from the Service Area will be covered if provided in a Medicare-approved facility when Medicare criteria is met. I. Prosthetic Devices, such as cardiac devices, intraocular lenses, artificial joints, breast prostheses, artificial eyes, and braces, are covered. Excluded are: orthopedic shoes unless they are part of leg braces; dental plates or other dental devices, and experimental devices Therapeutic shoes for those suffering from diabetic foot disease are covered. J. Medical/Surgical Supplies, such as casts, splints, post-surgical dressings, and ostomy supplies, are covered. K. Rental or Purchase of Durable Medical Equipment, such as oxygen and oxygen equipment,wheelchairs and other walk-aids, and hospital beds, is covered. L. Health Club Services (SilverSneakers®) and/or lifetime fitness at participating network health clubs in the Service Area are provided to Members without charge. Unlimited covered services include- traditional weight and cardiac equipment,pools, aerobics, and court facilities. In addition to club member privileges, a Member may bring a guest who is Medicare eligible for one visit up to four times per year without charge. A list of participating network health clubs may be obtained from GH upon request. 0036900-C21431 55 SECTION VI. EXCLUSIONS AND LIMITATIONS A. Exclusions. 1. Investigational procedures, including medical and surgical services, drugs and devices until formally approved by Medicare unless specifically provided herein (See Section XI.19. in the Group Medical Coverage Agreement). 2. Supportive devices (shoe inserts) for the feet 3 Services directly related to obesity except as provided by Medicare. 4. Services or supplies not specifically listed as covered by Medicare or GHC. B. Limitations. Conditions and Extent of Coverage. EXCEPT AS PROVIDED IN SECTIONS V.D. AND V.F., ALL SERVICES AND BENEFITS UNDER THIS AGREEMENT MUST BE PROVIDED BY GH MEDICAL PERSONNEL AT A GH OR GH DESIGNATED FACILITY UNLESS: 1. the Member has received a Referral from GHC,or 2. the Member has received Emergency or Urgently Needed Services as defined in Section I and as set forth in Section V.D. of this Medicare Endorsement. SECTION VII.CLAIMS PROCEDURE Claims for services or supplies and explanation of Medicare benefits for services or supplies should be sent to Medicare Claims, Group Health Cooperative, P.O Box 34585, Seattle, WA 98124-1585. If you must receive Emergency or Urgently Needed Services from a non-GH provider, be sure to show your GH membership card. Although you never need to give up your Medicare red, white and blue card, you must now use your GH M+C Plan care to receive covered services It is important that you use only your GH M+C plan membership card----- NOTyour Medicare card. A The Provider must file claims for services rendered during the first nine (9) months of a calendar year by December 31 of the following calendar year. B. The Provider must file claims for services rendered in the last three (3) months of a calendar year the same as if the services had been fiunished in the subsequent calendar year. The time limit on filing claims for services furnished in the last three (3) months of the calendar year is December 31 of the second calendar year following the calendar year in which the services were rendered. 0036900-C21431 56 GH-will notify the Member and Provider of its decision within 60 days after receipt of the claim. If the claim is denied in whole or in part, GH will provide the member a reason for the denial and an explanation of the Member's right to appeal the denial, as set forth in Section IV Of this Agreement. See "Medicare & You" handbook for additional information regarding filing claims, which can be obtained from your local Social Security office, or your Washington State Part B carrier's office, or call 1-800-772-1213, or online @ www.Medicare.gov GH may obtain information which it deems necessary concerning the medical care and hospitalization for which payment is requested 0036900-C21431 57 - Medicare Endorsement For Persons Covered by Part B only of Medicare THE PROVISIONS OF THE GROUP MEDICAL COVERAGE AGREEMENT SHALL REMAIN IN EFFECT EXCEPT AS MODIFIED BY THE ADDITION OF THE PROVISIONS, EXCLUSIONS AND LIMITATIONS CONTAINED IN THIS MEDICARE ENDORSEMENT. IN NO EVENT SHALL THE BENEFITS UNDER THIS ENDORSEMENT DUPLICATE THE BENEFITS UNDER THE GROUP MEDICAL COVERAGE AGREEMENT. THE HIGHER LEVEL OF BENEFIT WILL APPLY. COVERAGE UNDER THE GROUP MEDICAL COVERAGE AGREEMENT IS INTEGRATED WITH THE MEDICAL BENEFITS ESTABLISHED BY TITLE 18 OF THE SOCIAL SECURITY ACT AS AMENDED, AND REFERRED TO AS "MEDICARE." THE BENEFITS AND EXCLUSIONS DESCRIBED IN THIS ENDORSEMENT APPLY ONLY TO MEMBERS WHO ARE COVERED UNDER PART B ONLY OF MEDICARE. Group Health Cooperative offers two parts of Medicare arrangements for employer group members living in the Group Health service area 1) If you are a member living in the service area where the Group Health Medicare+Choice Plan is available you must have both Parts A&B of Medicare and be enrolled in this plan Those enrolled under GH's Medicare plan, as set forth in this Endorsement, maybe subject to copayment. 2) If you are a member living in the service area where the Medicare+Choice plan is not available,you must still enroll in and maintain both Medicare Parts A&B in order for your employer group plan to coordinate benefits with Medicare In order to be eligible for Part B benefits members must have been enrolled in Group Health prior to January 1, 1999. Except as defined by Federal Regulations, all Members entitled to, or eligible to purchase Medicare must transfer to the GH Medicare+Choice Plan upon such entitlement or eligibility. A condition of enrollment under the GH Medicare+Choice Plan requires that a Member be continuously enrolled for medical (Part B) benefits available from the Social Security Administration, and sign any papers that may be required by GH or Medicare+Choice For additional information, the Member may refer to "Medicare & You," handbook which can be obtained from your local Social Security office. NEITHER GH NOR MEDICARE MAY PAY FOR SERVICES PROVIDED AT NON-GH FACILITIES UNLESS THE MEMBER HAS BEEN REFERRED BY GH OR THE MEMBER HAS RECEIVED EMERGENCY OR URGENTLY NEEDED SERVICES OR OUT-OF AREA RENAL DIALYSIS SERVICES ACCORDING TO SECTION V D: OF THIS MEDICARE ENDORSEMENT OR THE MEMBER HAS RECEIVED NON-EMERGENT AND/OR NON- 0036900-C21431 58 URGENTLY NEEDED CARE AT FACILITIES OUTSIDE THE SERVICE AREA UNDER YOUR POINT-OF SERVICE (POS)BENEFIT AS SET FORTH IN SECTION V.F. This Endorsement does not constitute a"Medicare supplemental'contract SECTION I. HEALTHCARE TERMS CENTER for MEDICARE and MEDICAID SERVICES (CMS) formerly known as HCFA: The Federal Agency responsible for administering Medicare CUSTODIAL CARE: Care fuimshed for the purpose of meeting non-Medically Necessary personal needs which could be provided by persons without professional skills or training, such as assistance in mobility, dressing, bathmg, eating, preparation of special diets, and taking medication. Custodial Care is not covered by the GH M+C Plan or Medicare unless provided in conjunction with Skilled Nursing Care and/or skilled rehabilitation services. EMERGENCY CONDITION: A medical condition manifesting itself by acute symptoms of sufficient severity (including severe pain) such that a prudent lay person with an average knowledge of health and medicine could reasonably expect the absence of immediate medical attention to result 1) Serious jeopardy to the health of the individual or, in the case of a pregnant woman, the health of the woman or her unborn child; 2) Serious impairment to bodily functions; or 3) Serious dysfunction of any bodily organ or part. 0 EMERGENCY SERVICES: Covered mpatient and outpatient services that are furrushed by a provider qualified to furnish emergency services needed to evaluate or stabilize an emergency medical condition. MAXIMUM CHARGES: A term used to define the level of benefits which are payable by GH when expenses are incurred from a non-GH physician or provider Expenses are considered Maximum Charges if(1) the charges are consistent with those normally charged by the provider or organization for the same services or supplies, and (2) the charges are within the general range of charges made by other providers in the same geographical area for the same services or supplies. MEDICARE. The federal health insurance program for people 65 years of age or older, certain younger people with disabilities, and people with End Stage Renal Disease (generally those with Permanent kidney failure who need dialysis). MEDICARE+CHOICE (M+C) COORDINATED CARE PLANS: These are M+C Plans that use a network of providers that are under contract or arrangement with a Medicare+Choice Organization to provide covered benefits The GH M+C Plan is a Coordinated Care Plan MEDICARE+CHOICE (M+C) ORGANIZATION A public or private entity organized and licensed by the State as a nsk-bearing entity that is certified by CMS as meeting M+C contract requirements. M+C Organizations can offer one or more M+C Plans. GH is an M+C Organization. 0036900-C21431 59 MEDICARE+CHOICE PLAN (M+C): A policy or benefit package offered by a Medicare+Choice Organization under which a specific set of health benefits offered at a uniform premium and umform level of cost-sharing to all Medicare beneficiaries residing in the service area covered by the Plan. An M+C Organization may offer more than one benefit Plan in the same Service Area. The GH Plan is an M+C plan. PERMANENT MOVE: A permanent change of residence out of the service area or an uninterrupted absence of more than six (6) months from GHC's Service Area. POINT OF SERVICE (POS): A benefit that GH offers to its M+C Members while temporarily traveling outside of the GH M+C Plan Service Area for non-emergent and/or non-urgently needed care. In return for this flexibility, members have higher cost-shanng requirements for these services. REFERRAL: A formal recommendation by your Primary Care Physician or his/her Contracting Medical Group that you receive care from a Specialist, Contracting Medical Provider, or Non- Contracting Medical Provider SERVICE AREA: The geographic area comprised of parts of Grays Harbor, Island, King, Kitsap, Lewis, Pierce, parts of Mason, San Juan, Skagit, Snohomish, Thurston, and Whatcom Counties, and any other areas designated by GH and approved by the Health Care Financing Administration. (See Service Area Map.) SKILLED NURSING FACILITY: A facility (or distinct part of a facility) wluch is primarily engaged in providing to its residents which provides inpatient Skilled Nursing Care, rehabilitation services, or other related health services and is certified by Medicare. The term "Skilled Nursing Facility" does not include a convalescent nursing home, rest facility, or facility for the aged which furnishes primarily Custodial Care, including training in routines of daily living. URGENTLY NEEDED CONDITION: Covered Services provided when you are temporarily absent from the GH M+C Plan Service Area(or, under unusual and extraordinary circumstances, provided when you are in the Service Area but your Contracting Medical Group is temporarily unavailable or inaccessible) when such services are Medically Necessary and immediately required 1) as a result of an unforeseen illness, mjury, or condition, and 2) it is not reasonable, given the circumstances, to obtain the services through your Contracting Medical Group SECTION II. DISENROLLMENT Enrollment under the GH M+C Plan for a specific Member, may be terminated in the circumstances set forth below Until such time as a Member's termination of enrollment from GH is effective, neither Medicare nor any other Medicare+Choice organization shall pay for services for which GH is responsible. While a Member is enrolled with GH, GH will only cover the following services provided by 0036900-C21431 60 non-GH Providers, non GH-Facilities, or non-GH Designated Facilities- (1)Referrals authorized by a GH Provider; (2) Emergency services anywhere in the world, Urgent Care, or out-of the area renal dialysis services as set forth in Section V.C.; or (3) Non-Emergent and/or Non- Urgently Needed care at facilities outside the Service area under your point-of service (POS) benefit, as set forth in Section V E. Upon termination of membership in GH, neither GH nor GH Providers shall have further liability or responsibility under this Agreement for Member's health care services A. Voluntary Disenrollment You may choose to end your membership in GH M+C Plan for any reason. If you want to disenroll, write a letter or complete a disenrollment form and send it to the GH Customer Service Department You may also disenroll through any Social Security Administration or Railroad Retirement Board office or you can call 1 (800)MEDICARE. The date of your dmsenrolhnent will depend on when your request to disenroll is received. In general, requests to disenroll will be effective the first day of the month after the month the drsenrollment request is received. Even though you have requested disenrollment, you must still get all routine services from GH Contracting Medical Providers until you are notified of the effective date of your disenrollment. GH will send you a letter that confirms when your disenrollment is effective. You will be covered by Original Medicare after you disenroll from GH unless you have joined another Medicare Managed Care Plan. B. Involuntary Disenrollment GH must disenroll you from the GH M+C Plan if. 1. You move permanently out of the service area and do not voluntarily disenroll or choose Continuation of coverage, 2. You live outside the plan's service area for more than six months at a time. 3 You do not have Medicare Part A and/or Part B, or 4. The contract between GH and CMS under which the GH M+C Plan is offered is terminated, or the GH M+C Plan service area is reduced GH may disenroll you from the GH M+C Plan under the following conditions: 1 If you supply fraudulent information or make misrepresentations on your individual election form which materially affects your eligibility to enroll in the GH M+C Plan; 2. If you are disruptive, unruly, abusive or uncooperative to the extent that your membership in the GH M+C Plan seriously impairs our ability to arrange Covered Services for you or 0036900-C21431 61 other individuals enrolled in the plan. Involuntary Disenrollment on this basis is subject to prior approval by CMS, 3. If you allow another person to use your GH M+C Plan membership card to obtain Covered Service; 4. You fail to pay the Plan basic Premiums We will notify you of a 90-day grace period to pay the premiums before you are disenrolled. Your 90-day grace period will start as of the date you are notified of the delinquent payment. C. Persons Hospitalized on the Date of Termination. A Member who is a registered bed patient receiving Covered Services in a GH Facility or GH Designated Facility on the date of termination shall continue to receive covered inpatient services, until discharge from the facility. This continued coverage will also apply to a Member hospitalized in a Medicare- certified non-GH Designated Facility as a result of Emergency or Urgently Needed Services or Referral as set forth in Section VI.B. of this Medicare Endorsement, D. Services Provided After Termination. Any services provided by GH after the effective date of termination (except those services covered under Section H.0 of this Medicare Endorsement) shall be charged according to the fee schedule. The Subscriber shall be liable for payment of all such charges for services provided to the Subscriber and all Family Dependents. SECTION III. COORDINATING OTHER BENEFITS YOU MAY HAVE Who Pays First? If you are age 65 or older and have coverage under an employer group plan of an employer of twenty (20) or more employees, either based on your own current employment or the current employment of a spouse, you must use the benefits under that plan Sirmlarly,if you have Medi- care based on disability and are covered under an employer group plan of an employer of one hundred (100) or more employees (or a multiple employer plan that includes an employer of one hundred or more employees) either through your own current employment or that of a family member, you must use the benefits under that plan. In such cases, you will only receive benefits not covered by your employer group plan through our contract with Medicare A special rule applies if you have or develop End-Stage Renal Disease(ESRD). If any no-fault or any liability insurance (or payment from a liable third party) is available to you, then benefits under that plan (or from that liable third party) must be applied to the costs of health care covered by this plan. Where we have provided benefits and a judgment or settlement is made with a no-fault or liability insurer (or liable third party), you must reimburse us. How- ever, our reimbursement may be reduced by a share of procurement costs (e g, attorney fees and costs). Workers' compensation for treatment of a work-related illness or injury should also be applied to covered health care costs by this plan. 0036900-C21431 62 If you have (or develop) ESRD and are covered under an employer group plan, you must use the benefits of that plan for the first thirty (30)months after becoming eligible for Medicare based on ESRD. Medicare is the primary payer after this coordination period. (However, if your employer group plan coverage was secondary to Medicare when you developed ESRD because it was not based on current employment as described above, Medicare continues to be primary payer) Because of this, we may ask you for information about other insurance you may have If you have other insurance, you can help us obtain payment from the other insurer by providing the information we request promptly. Coordination of benefits protects you from higher Plan Premiums. The end result is more affordable health care. SECTION IV.APPEAL AND GRIEVANCE PROCEDURES A. Grievances. If a member is dissatisfied with care or services received at a Medical or Dental Office or Hospital, or a Member disputes amounts owed, eligibility or membership status, the Member may submit a written grievance to GH. GH will conduct a formal review and provide a written response within 60 days of the time all pertinent materials are received B. Standard Expedited Requests for Care or Service. I. Standard Request. The Member may request that care or a service be covered by GH on the basis that it is a Medicare covered service. GH will reach a decision within 14 days. GH's decision may be delayed an additional 14 days if it is in the Member's best interest or upon the Member 7s request. 2. Expedited Request If a member requests care or a service they believe is covered by Medicare and the Member believes and/or his/her physician states that a delay in making a determination about coverage could jeopardize the Member's health or ability to function, the Member may request an expedited decision. In most instances, GH will reach a decision within 72 hours GH's decision may be delayed an additional 14 working days if it is in the Member's best interest to delay a decision or upon the Member's request. GH's decision may also be postponed in the event information for a non-GH provider has not been received in a timely manner If GH grants a Member's request for an expedited decision, GH will orally notify the Member and follow-up within two (2) working days, with a written letter. If a Member disagrees with GH's decision not to expedite his/her request, the Member may file a grievance. C. Appeals. Members have a right to appeal any decision in which GH declines to provide, cover, or pay for services that the Member believes are covered by Medicare If GH declines to provide or to cover a service, GH will provide the Member with a Notice of Non-coverage containing the reason(s) for the denial and an explanation of the Member's appeal rights 0036900-C21431 63 Members who disagree with a decision by GH may submit a written appeal to GH. Members appealing a denied claim for payment for a service already provided or arranged may request a standard 60-day appeal. Members appealing a request for a future service may ask for either a standard 30 day appeal or an Expedited (72-hour) appeal if the Member believes (or the Member's Provider states) that a delay in responding to the Member's appeal could senouslyjeopardize his/her health or ability to function Appeals will be reviewed by persons not involved in the initial decision. If GH decides to uphold the original adverse decision, either in whole or in part, the entire file will be forwarded by GH to CHDR for review. 1. Standard Appeal. a. 60-Day Appeals for Claim for Payment. A member may submit an appeal requesting a second review at any time GH denies coverage for services already provided or arranged by either GH or a non-GH provider or facility, or for future services. Member must submit appeals in writing to GH, or to any Social Security Office, or in the case of a railroad retirement annuitant, a Railroad Retirement Board Office, within 60 days of receiving notice of GH's initial decision After receiving all pertinent materials, GH will conduct a formal review of the appeal GH will notify the Member of its decision within 60 days of receipt. If GH decides fully in the Member's favor, GH will pay the claim(s) within 60 days of receipt of the member's appeal. If GH upholds any part of the initial denial, the entire file will be forwarded by GH to CHDR for review CHDR will make a reconsideration decision and advise the Member of its decision, the reasons for the decision and the right to additional appeal rights. b. 30-Day Appeals for Denials of Future Services A Member may submit an appeal requesting a second review at any time GH denies coverage for future services. Members must submit appeals in writing to GH, or to any Social Security Office, or in the case of a railroad retirement annuitant, a Railroad Retirement Board Office, within 60 days of the date of GH's initial decision After receiving all pertinent materials, GH will conduct a formal review of the appeal GH will notify the Member of its decision within 30 days of receipt. GH's decision may be extended an additional 14 days if it is in the Member's best interest or upon the Member's request. If GH upholds any part of the initial denial, the entire file will be forwarded by GH to CMS's contractor, The Center for Health Dispute Resolution(CHDR) for review. CHDR will make a reconsideration decision and advise the Member of its decision, the reason for the decision, and the right to additional appeal rights 2. Filing an Expedited (72-hour)Appeal (does not apply to denied claims for payment). If a delay in receiving a decision could jeopardize the Member's health or ability to function, the Member or his/her Physician may submit a request for an expedited appeal either orally or in writing to GH _ 0036900-C21431 64 D. Quality Improvement Organ ization("QIO"). "QIO" stands for Quality Improvement Organization (these organizations used to be called "Peer Reivew Organizations" or PROS). The QIO is a group of doctors and other health care experts paid by the Federal Government to check on and help improve the care given to Medicare patients. There is a QIO in each state. QIOs have different names, depending on which state they are in. In Washington State, the QIO is called Qualis Health. A Member may request a "QIO"review if GH denies coverage of a continued inpatient stay in a hospital on the basis of medical necessity. A Member may request immediate QIO review by phone or in writing. If a Member requests a QIO review by noon of the first business day after a Member has received a Notice of Non-coverage, the Member will not be financially responsible for the cost of the continued hospitalization until the QIO's determination. GH will provide the Member written notice of procedures by which to request a QIO review. If a Member requests a QIO review, the Member may not pursue the Standard Appeal Procedure and/or the Expedited Appeal Procedure with respect to demal of the same hospital stay. A Member may contact Qualis Health at PO Box 33400, Seattle, WA 98133-0400 or 10700 Meridian Ave N, Suite 100, Seattle, WA 98133-9075, telephone number(206) 364-9700 or Fax: (106) 368-2419. E. Additional Appeal Rights. If CMS upholds GHC's initial determination and denies the appeal and if the amount in controversy is $100.00, or more the Member may request a hearing before an administrative law judge of the Social Security Administration. The Member may request a hearing before an administrative law judge by writing to GHC, CMS, or a Social Security Office within 60 days after the date of notice of an adverse reconsideration decision If the administrative law judge demes a Member's appeal, either the Member or GH may request a review by the Social Security Admimstration's Appeals Council If a Member's appeal is denied by the Appeals Council and if the amount in controversy is $1,000 00, or greater the Member or GH may request a review by the Department Appeals Board (DAB) An initial, revised, or reconsideration determination made by GH, CMS, an administrative law judge, or the Appeals Council can be reopened (a) within twelve months, (b) within four years for just cause, or(c) at any time for clerical correction or in the case of fraud. The Medicare Appeals Coordinator can be reached by writing to Group Health Cooperative, c/o Medicare Appeals Coordinator, P.O. Box 34593, Seattle WA 981324, or by calling (206) 901- 0036900-C21431 65 7350 or toll-free at 1-(888)-901-4636 or TTY/TDD 711 or 1-800-833-6388, for the "hearing impaired"or by fax at(206) 901-7340. SECTION V. SCHEDULE OF MEDICAL BENEFITS All benefits and services listed in this Schedule of Benefits• • are subject to all provisions of this Agreement and Medicare Endorsement, • must be approved in advance by GH except for Emergency and Urgently Needed Services as set forth in Section V.C. of this Medicare Endorsement; and • must meet Medicare guidelines and limitations unless otherwise specified GH has procedures to assist GH Providers in establishing a treatment plan for Members with complex or serious medical conditions. New Members should discuss all his/her medical concerns with the GH Primary Care Provider selected. New members may expect their health status to be assessed within 90 days of their enrollment. GH will ensure that services are provided in a culturally competent manner. GH Providers will provide information regarding treatment options in a culturally competent manner and will accommodate Members with disabilities. GH covers all Medicare deductibles and coinsurance The booklet, "Medicare & You"provides additional information about Medicare benefits, and can be obtained from your local Social Security office, or your Washington State Part B carrier's office. Services received at facilities outside the GH Service Area may be covered for non-emergent and/or non-urgently needed care subject to the point-of service benefit set forth in the Summary of Medical Benefits. All Medicare non-covered expenses, including deductibles and coinsurance, are the responsibility of the Member. A. Hospice. It is understood and agreed that the following fully sets forth Covered Services for a Member with Part B Medicare only who elects to receive hospice services Members who elect to receive hospice services do so in lieu of curative treatment for their terminal illness for the period that they are in the hospice program. To receive hospice services, the Member is required to sign the Hospice Election Form. Covered Services. Hospice services may include the following as prescribed by a GH physician and rendered pursuant to an approved hospice plan of treatment 1. Home Services 0036900-C21431 66 Continuous care services per Member in the Member's home when prescribed by a GH physician, as set forth in this paragraph Continuous care is defined as "skilled nursing care provided in the home during a period of crisis in order to maintain the terminally ill patient at home." Continuous care may be provided for pain or symptom management by a Registered Nurse, Licensed Practical Nurse, or Home Health Aide under the supervision of a Registered Nurse. Continuous care may be provided up to twenty-four (24) hours per day during periods of crisis. Continuous care is covered only when a GH physician determines that the Member otherwise would require hospitalization in an acute care facility. 2. Inpatient Hospice Services for short-term care shall be provided in a facility designated by GH's Hospice Program when Medically Necessary and authorized in advance by a GH physician and GH's Hospice Program. Respite care is covered for a maximum of five (5) consecutive days per occurrence in order to continue care for the Member in the temporary absence of the Member's primary care-giver(s). 3. Other hospice services may include the following: a. drugs and biologicals that are used primarily for the relief of pain and symptom management; b. medical appliances and supplies primarily for the relief of pain and symptom management; c. counseling services for the Member and his/her primary care-giver(s); and d. bereavement counseling services for the family. B. Mental Health Care, Alcoholism and Drug Abuse Treatment Services. 1. Outpatient mental health, alcoholism and substance abuse treatment services are covered for each Member in accordance with Medicare Guidelines. 2. Inpatient mental health care services are covered in full up to a 190-day lifetime benefit when such services are provided in a Medicare-certified psycluatric hospital 3. Inpatient alcoholism and drug abuse treatment services are covered in full when such services are provided in a hospital-based treatment center. Coverage for Medical Emergencies incident to alcoholism and drug abuse or for acute alcoholism or drug abuse, including acute detoxification, is provided as set forth in Section V C. of this Medicare Endorsement. C. Outpatient Emergency/Urgently Needed Services. When an Emergency meets the Medicare definition for Emergency or Urgently Needed Services as defined in Section I of 0036900-C21431 67 this lvtedicare Endorsement, services are covered in full, subject to the applicable copayments. D. If the Member is hospitalized in a non-GH Facility and requires continued inpatient care GH will continue to cover the non-emergent care and services at the non-GH Facility needed by the Member to remain medically stable until: (1) the Member is discharged; (2) a GH Provider arrives and assumes responsibility for the Member's care; or (3) GH and the Member's treating physician decide the member may be transferred without harmful medical consequences whichever occurs first. A decision to transfer the member to a GH Facility is made at the discretion of GH with the attending physician's concurrence Post-stabilization care at a non-GH facility will be covered when: (a) Pre-approved by Group Health; or (b)Not pre-approved because Group Health did not respond to the request for pre- approval within one (1) hour after being requested to approve such care, or Group Health could not be contacted for pre-approval. E. POINT OF SERVICE (POS). Non-Emergent and/or non-urgently needed care received while temporarily traveling outside GH's Medicare Service Area is payable at Medicare benefit levels up to $2,000 00 per member per calendar year. The Plan pays 80% of Medicare allowable reimbursement schedules for Medicare covered services only The enrollee is responsible for all Medicare deductibles and coinsurance. Coverage under this benefit does NOT include coverage of prescription drugs or traveling primarily for the purpose of seeking medical care. F. Medicare Ambulance Benefit (including air, water, or ground transport) Medically Necessary ambulance transportation to or from a hospital or Skilled Nursing Facility is covered in full. Medically necessary emergency ambulance transportation outside theUmted States or the U.S. territories is covered only if transportation by any other vehicle could endanger the patient's health. G. Medical and Surgical Care. The following medical and surgical services are covered when prescribed by GH Medical Personnel and Medicare requirements are met 1. Eye examinations and treatment for eye pathology. Evaluations and surgical procedures to correct refractions which are not related to eye pathology are not covered. Complications related to such surgery are also excluded. 2 Frames and Lenses One pair of eyeglasses or contact lenses, including examination and fitting, following each cataract surgery with insertion of an introcular lens (IOL). Covered eyeglasses and contact lenses must be dispensed through GH Facilities. Replacements for Members following insertion of an intraocular lens are set forth in Section G.13. below Replacements in the absence of an intraocular lens will be provided when needed due to change in the Member's medical condition or when deemed appropriate by a GH physician. 3 Blood, blood derivatives, including storage, and their administration. 0036900-C21431 68 4 Maternity and pregnancy-related services, including visits before and after birth; involuntary termination of pregnancy, and care for any other complication of pregnancy. 5. Organ transplants, limited to those covered by Medicare when all Medicare criteria have been met. 6. Physician calls (including consultations and second opimons by a GH physician) in the hospital, office,home, Skilled Nursing Facility,nursing home, or convalescent center. 7. Restorative physical, occupational, speech and language therapy, and cardiac rehabilitation following illness, injury, or surgery. 8. Immunizations and vaccinations that are listed as covered in the GH Drug Formulary (approved drug list) or approved by Medicare. 9. Services related to dysfunction of the jaw. When referred by a GH physician, evaluation and treatment by a GH-approved temporomandibular joint (TMJ) care provider. All TMJ appliances, other than the occlusal splint and its fitting, are excluded. Treatment of jaw dysfunction, including TMJ dysfunction, will NOT be provided when the dysfunction is related to malocclusion or when TMJ services are needed due to dental work performed All such services and related hospitalization, including orthodontic therapy and orthognatluc (jaw) surgery, are excluded regardless of origin or cause (See Section X.13 17. of the Group Medical Coverage Agreement for Covered Services not meeting Medicare Guidelines) 10. Chiropractic care limited to spinal manipulations. Excluded are any other diagnostic or therapeutic services, including x-rays, furrushed by a chiropractor. Members must receive all chiropractic services from GH`s designated licensed providers in order to be covered A list of GH-designated licensed practitioners is available by contacting any GH area medical center. 11. Podiatric care. Services are covered when all Medicare criteria are met and when authorized in advance by your Primary Care Provider. Excluded is treatment of flat feet or other misalignments of the feet; removal of corns and calluses; and routine foot care such as hygienic care, except in the presence of a non-related medical condition affecting the lower limbs. Members must utilize GH's designated providers in order to be covered 12. Home intravenous (W)drug therapy services. 13 Routine eye examinations and refractions, limited to once every twenty-four (24) months, except when Medically Necessary. Services for routine eye examinations must 0036900-C21431 69 be Yeceived at a GH Facility and in accordance with GH medical criteria in order to be covered and are not subject to Medicare requirements. Lenses. One pair of standard glass single vision, lenticular, or non-blended bifocal or trifocal lenses, or contact lenses, will be covered subject to the GH-approved allowance once every twenty-four(24) months, and replaced as specified below, when received at a GH facility and in accordance with GH medical criteria. Frames. An Allowance of up to $100 per Member once every twenty-four (24) months will be provided for frames. Replacements. Lens replacement for any reason (including loss, breakage or change in prescription)will be provided not more often than once every 24 months Replacement of frames will be provided subject to the frames Allowance set forth above not more often than once every twenty-four (24) months. 14. Hearing examinations to determine hearing loss. Hearing aids, including exammations and fittmg, must be received at a GH Facility and are covered up to a maximum of$250 per Member once every twenty-four(24) months. 15. Diabetic education and training, including glucose monitors, testing strips and lancets for all diabetics. 16. Renal dialysis services required while temporarily away from the Service Area will be covered if provided in a Medicare-approved facility when Medicare cnteria is met H. Prosthetic Devices, such as cardiac devices, mtraocular lenses, artificial joints, breast prostheses, artificial eyes, and braces, are covered. Excluded are: orthopedic shoes unless they are part of leg braces; dental plates or other dental devices, and experimental devices Therapeutic shoes for those suffering from diabetic foot disease are covered I. Medical/Surgical Supplies, such as casts, splints, post-surgical dressings, and ostomy supplies, are covered. J. Rental or Purchase of Durable Medical Equipment, such as oxygen and oxygen equipment,wheelchairs and other walk-aids, and hospital beds, is covered. K Health Club Services(SilverSneakers0) and/or lifetime fitness at participating network health clubs in the Service Area are provided to Members without charge. Unlimited covered services include traditional weight and cardiac equipment,pools, aerobics, and court facilities. In addition to club member privileges, a Member may bring a guest who is Medicare eligible for one visit up to four times per year without charge A list of participating network health clubs may be obtained from GH upon request. 0036900-C21431 70 L. Skilled-Nursing Facility. Upon Referral and following a Medicare-certified three (3) day hospital stay, GH will cover 100 days of Medicare covered Skilled Nursing Facility care per benefit period All Medicare criteria must be met and the stay must be authorized in advance by the plan. SECTION VI. EXCLUSIONS AND LIMITATIONS A. Exclusions. 1. Investigational procedures, including medical and surgical services, drugs and devices until formally approved by Medicare unless specifically provided herein (See Section XI.19. in the Group Medical Coverage Agreement). 2. Supportive devices (shoe inserts) for the feet. 3. Services directly related to obesity except as provided by Medicare. 4 Services or supplies not specifically listed as covered by Medicare or GHC. B. Limitations. Conditions and Extent of Coverage. EXCEPT AS PROVIDED IN SECTIONS V D. AND V.E , ALL SERVICES AND BENEFITS UNDER THIS AGREEMENT MUST BE PROVIDED BY GH MEDICAL PERSONNEL AT A GH OR GH DESIGNATED FACILITY UNLESS: 1 the Member has received a Referral from GHC,or 2. the Member has received outpatient Emergency or Urgently Needed Services as defined in Section I and as set forth in Section V C of tlus Medicare Endorsement Section V11. CLAIMS PROCEDURE Claims for services or supplies and explanation of Medicare benefits for services or supplies should be sent to: Medicare Claims, Group Health Cooperative, P.O. Box 34585, Seattle, WA 98124-1585. If you must receive Emergency or Urgently Needed Services from a non-GH provider, be sure to show your GH membership card. Although you never need to give up your Medicare red, white and blue card, you must now use your GH M+C Plan care to receive covered services. It is important that you use only your GH M+C plan membership card----- NOTyour Medicare card. A. The Provider must file claims for services rendered during the first nine (9) months of a calendar year by December 31 of the following calendar year. B The Provider must file claims for services rendered in the last three (3) months of a calendar year the same as if the services had been furnished in the subsequent calendar year. The time limit on filing claims for services furnished in the last three (3) months of the calendar year is 0036900-C21431 71 December 31 of the second calendar year following the calendar year in which the services were rendered GH will notify the Member of its decision within 60 days after receipt of the claim If the claim is denied in whole or in part, GH will provide the member a reason for the denial and an explanation of the Member's right to appeal the denial, as set forth in Section IV of this Agreement. See "Medicare &You" handbook for additional information regarding filing claims, which can be obtained from your local Social Security office, or your Washington State Part B carrier's office, or call 1-800-772-1213, or online @ www.Medicare.gov. GH may obtain information which it deems necessary concerning the medical care and hospitalization for which payment is requested. 0036900-C21431 72 GROUP HEALTH COOPERATIVE By Title President GROUP Kent, City Of, #0036900 By Title This Agreement will become effective January 1, 2003 and will continue in effect until terminated as herem provided for. CA-1814R PA-113302 CA-1936 CA-1385 CA-6100 CA-107600 CA-1395 0036900-C21431 73 CITY OF KENT Group # 00369 For attachment to Group Medical Coverage Agreement BENEFIT DESCRIPTION INSIDE THE NETWORK: MANAGED HEALTH CARE $5 Outpahent/Office Visit $5 Outpatient Prescription Drugs $75 Emergency Room No pre-existing condition wait MONTHLY HEALTH CARE PREMIUM: This schedule reflects Group Health Cooperative monthly premium effective January 1,2003 and guaranteed to January 1,2004 Subscriber $230 62 permonth Subscriber and spouse $515,98 per month Subscriber and child(Ten) $465 Mr per month Subscriber and family $738 per month MEDICARE SUPPLEMENTAL HEALTH CARE DUES NOTE Medicare rates do not apply to TEFRA eligible enrollees 12 0 percent(12"/u)of each month's medical dues for each member and each family enrollee,as scheduled above,is the budgeted prepayment for cost of all pharmaceuticals and prescriptions to be dispersed on written orders of the Managed Healthcare Network providers for the next fiscal year under coverage of your medical coverage agreement Rates are quoted on a dual choice basis Regardless of the effective date of enrollment for a Subscriber and Family Dependents, the Group will not be required to submit premiums to the Cooperative for the month of enrollment, and these Members will appear on the subsequent month's billing at the regular charge. When the Subscnber's enrollment terminates,the group will submit the full amount of premiums to the Cooperative regardless of the specific date of termination for that month. GROUP HEALTH COOPERATIVE CONTRACT REVISIONS Effective January 1,2003 (Created 8/12102,revised 2/26/03) This is the most current list of revisions,but this list is subject to change at any time CONTRACT EXPLANATION LANGUAGE/BENEFIT CHANGE General Information Numerous changes have been made throughout the agreement to reflect the fact that the agreement is an insurance document,rather than a care delivery document Introduction Information contenting "Accessing Care"has been added to this section in addition to referencing GH designated self-referral specialists, and moving access to care provisions from the Linutations section of the Agreement, Table of Contents The headings for Subrogation,Gnevance/Appeal Procedures and Exclusions and Limitations has been revised,as well as throughout the Agreement Allowances Schedule The Allowances Schedule has been reformatted to combine sundar coverage under one heading,and clarifications have also been made throughout the Allowances Schedule Self-referrals to GHC providers that are licensed acupuncturists and naturopaths are now available Five self-referred visits are available for acupuncturists, and two self-referred visits are available for natumpaths The benefit period allowance under chemical dependency services has been increased in accordance with Washington state law The dollar amount will be reflected in the Agreement Skilled nursing facility services are now covered up to sixty(60) days per Member per calendar year(m addition to coverage in lieu of hospitalization).Additional information concerning the benefit can be found in Section X Schedule of Benefits (The 60-day skilled nursing facility coverage is dependent on when the actual renewal paperwork was provided to the group) Enrolhnent/Ehgibihty Requirements The provision concerning persons hospitalized on the effective date of coverage has been clarified to state that coverage for members admitted to an inpatient facility prior to their enrollment under this Agreement,and who do not have coverage under another Agreement,will receive covered benefits beginning on their effective date. Also,GHC reserves the tight to require transfer of a member to a GH facility in the event a member is hospitalized in a non-GH facility or non-GH designated facility. Definitions A new definition for GH designated self-referral specialists has been added The Stop Loss definition has been redefined under Out-of-Pocket Limit. Temmnauon An additional provision was added under Termination of Entire Agreement to reflect that the group may be terminated if they no longer meet underwriting guidelines established by GHC in effect at the time the Group was accepted Ile provision concerning persons hospitalized on the date of termination has been revised to state that the member shall continue to be eligible for covered services while an mpanent for the condition for which the member was hospitalized until the first of the following events occur the member no longer meets medical criteria to be an inpatient at the facility,the remaining benefits available under this Agreement for the confinement are exhausted, regardless of whether a new calendar year begins;the member becomes covered under another Agreement with the group health plan that provides benefits for the confinement;the member becomes enrolled under an Agreement with another tamer that would provide benefits for this confinement if this Agreement did not exist;or Medicare eligibility The Services provided after Termination provision has been clarified to define what the certificate of creditable coverage is,as well as to state that the group determines whether GHC or the group provides the certificate of creditable coverage to members Continuation coverage, conversion and A clarification has been made under eligibility for Group transfer Conversion stating that any Subscriber or Family Dependent not entitled to Medicare may convert to GHC's Group Conversion plan if his/her coverage under this Agreement is terminated for any reason other than cause In accordance with Washington state law,a continuation option provision has been added which states"A Member no longer eligible for coverage under this Agreement(except in the event of termination for cause)may continue coverage for a period of up to three(3)months subject to notification to and self-payment of premium to the Group This provision will not apply if the Member is eligible for the continuation coverage provisions of the Consolidated Omnibus Budget Reconcihanon Act of 1985 COBRA)" Coordination of benefits The definition of"Plan"has been broadened to include sources of benefits or services from individual policies. The"Effect of Medicare"section has been clarified to reflect how a medicare-eligible person's benefits will be effected when the member resides outside the GH Medreare+Choice service area Subrogation and Reimbursement Rights Rus section has been modified to include ERISA requirements Grievance Procedures Clarifications have been added at the request of the Insurance Commissioner's office Miscellaneous Provisions The confidentiality,indemnification,and governmental approval provisions have been clarified Provisions regarding arbitration,HIPAA transactions and compliance with law have been added • Enrollment Schedule The Special Enrollment Periods provision has been clarified. The automatic enrollment of newborns provisions have been deleted An additional provision has been added to state that the Subscnber enroll their newborn or newly adoptive child as a dependent to avoid delays in payment of claims A clarification has been made to state that Subscribers and covered dependents who are eligible for Medicare(and residing inside the Medicare+Choice service area,must, effective the date TEFRA eligibility ends or the date that Medicare would become the primary payor,enroll in Medicare Parts A and B,and must participate in GHC's Medicare plan Claims Clarifications have been made to this provision based on federal requirements Blood A benefit change has been made to include blood coverage Maternity A clarification was made to reflect that treatment for postpartum depression or psychosis is covered under the mental health benefit The exclusion of buthmg kits has also been removed A clarification was trade at the request of the Insurance Commissioner's office to state that prenatal testing is made in accordance with Board of Health standards Plastic and Reconstructive Services A clarification has been made to state that complications of covered mastectomy services, including lymphedemas, are covered Mental Health Care Services A clarification has been made to more accurately reflect how these services are administered Clarifications to exclusions have also been made. Exclusions A clarification has been made to the sexual reassignment provision The pre-existing condition provision has been clarified to reflect HIPAA requirements regarding portability, as well as state requirements A clarification has been made to reflect that routine ultrasound to determine fetal age,size or sex are excluded. Additional clarifications include.Routine foot care except in the presence of a non-related Medical Condition affecting the lower limbs,complications of non-Covered Services,missed appointment or cancellation fees,and treatment of obesity,except as otherwise noted in the agreement ®GroupHealth COOPERATIVE GROUP MEDICAL COVERAGE AGREEMENT Group Health Cooperative (also referred to as "GHC", "Group Health", "GH"or the "Cooperative")is a nonprofit health maintenance organization famishing health care primarily on a prepayment basis This Agreement states the terms of enrollment,payment and coverage under which a Group may secure GHC health benefits The Schedule of Benefits lists the benefits to which those enrolled under this Agreement are entitled Words with special meaning are capitalized They are defined in Section I Accessing Care MEMBERS ARE ENTITLED TO COVERED SERVICES ONLY AT GH FACILITIES AND FROM GHC PRIMARY CARE PROVIDERS EXCEPT AS FOLLOWS: • Emergency care, • women Is health care providers as ser forth below, • visits with GH-Designated Self-Referral Specialists, as set forth below • other services as specifically set forth in the Allowances Schedule and Section X, • care provided pursuant to a Referral. Referrals must be requested by the Member's primary care provider and approved by GHC. Primary Care. Members must select a GH Primary Care Provider when enrolling under this Agreement. One primary care provider may be selected for the entire family, or a different primary care provider may be selected for each family member. If the primary care provider is not selected at the time of enrollment, Group Health wig assign a primary care provider,and a letter of explanation and an identification card will be sent to the Member. Selecting a primary care provider or changing from one Primary Care Provider to another can be accomplished by contacting Group Health Customer Service, or accessing the GHC website at www.ghc.org. The change will be made within twenty-four(24)hours of the receipt of the request if the selected physician's caseload permits A listing of GHC Primary Care Providers, referral specialists, women's health care providers, and GH- designated Self-Referral Specialists is available by contacting GHC Customer Service at (106) 901-4636 (or I- 888-901-4636),or by accessing GHC's website at www.ghr-org. In the case that the Member's primary care provider no longer participates in GHC's network,the Member will be provided a wriden notice offering the Member a selection of new primary care providers from which to choose. specialty Care. Unless otherwise indicated in this section, the Allowances Schedule, or Section Y, referrals are required for specialty care and specialist GH Designated Self-Referral Specialist Members may make appointments directly with GH-Designated Selj- Referral Specialists at GH-owned or operated medical centers without a Referral from their primary care provider. Self-Referrals are available for the following specialty care areas:allergy,audiology,cardiology, PA-113302 - 0036900-C21431 1 chemical dependency, chiropracticimampulanve therapy, dermatology, gastronenterology, general surgery, hospice, manipulative therapy, mental health, nephrology, neurology, obstetrics and gynecology, occupational medicine* oncologylhematology, ophthalmology,optometry, orthopedics, otolaryngology(ear, nose, and throat), physical therapy*,smoking cessation,speech4anguage and learning services* and urology. *Medicare patients need a Referral for these specialists. Women's Health Care Direct Access Providers Female Members may see a participating General and Faintly Practitioner, Physician's Assistant, Gynecologist, Certified Nurse Midwife, Licensed Midwife, Doctor of Osteopathy, Pediatrician, Obstetrician or Advanced Registered Nurse Practitioner who is contracted to provide women's health care services directly,without a Referral from their Primary Care Provider,for Medically Necessary and appropriate maternity care, covered reproductive health services, preventive care (well care) and general examinations, gynecological care, and medically appropriate follow-up visits for the above services Women's health care services are covered as if your Primary Care Provider had been consulted, subject to any applicable Copayments and/or Coinsurance as set forth in the Allowances Schedule if your women's health care provider diagnoses a condition that requires referral to other specialists or hospitalization, you or your chosen provider must obtain preauthonzation and care coordination in accordance with applicable GHC requirements Second Opinions. The Member may access, upon request, a second opinion regarding a medical diagnosis or treatment plan from a GHCProvider. Emergent and Urgent Care. Emergent and urgent care services are covered as set forth in Section XL. Contact the Emergency Notification Line as indicated on your GH identification card Recommended Treatment The Cooperative's Medical Director or his/her designee will determine the necessity, nature, and extent of treatment to be covered in each individual case and the judgment, made in good faith,will be final Coverage decisions may be appealed as set forth in Section ViI Members have the right to participate in decisions regarding their health care. A Member may refuse any recommended treatment or diagnostic plan to the extent permuted by law. In such case, GHC shall have no further obligation to provide benefus for the condition in question. Non Recommended Treatment Members who obtain care not recommended by GHC, do so with the full understanding that GHC has no obligation for the cost,or Gabihry for the outcome,of such care. Major Disaster or Epidemic. In the event of a major disaster or epidemic, GHC will provide coverage according to its best judgment, within the limitations of available facilities and personnel. The Cooperative has no liability for delay or failure to provide or arrange Covered Services to the extent facilities or personnel are unavailable due to a major disaster or epidemic. Unusual Circumstances. If the provision of Covered Services is delayed or rendered impossible due to unusual circumstances such as complete or partial destruction of facilities, military action, civil disorder, labor disputes, or similar causes, GHC shall provide or arrange for services that, in the reasonable opinion of GHC's Medical Director, or his/her designee, are emergent or urgently needed In regard to nonargent and routine services, GHC shall make a good fauh effort to provide services through its then-available facilities and personnel GHC shall have the option to defer or reschedule services that are not urgent while its facilities and services are so affected In no case shall the Cooperative have any liability or obligation on account of delay or failure to provide or arrange such services. 0036900-C21431 2 Table of Contents Summary of Allowances and Enrollment/Eligibility Requirements I Definitions II Premiums,Fees and Copayments III. Termination IV. Continuation Coverage,Conversion,and Transfer V. Coordination of Benefits VI Subrogation and Reimbursement Rights VII Grievance Procedures for Complaints and Appeals VIII Miscellaneous Provisions IX Enrollment Schedule X. Schedule of Benefits XI Exclusions XII Clauns • Medicare Endorsements(if applicable) • Premiums Schedule 0036900-C21431 3 Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: ALEXANDER SEWER EXTENSION BILL OF SALE—ACCEPT 2. SUMMARY STATEMENT: As recommended by the Public Works Director, accept the Bill of Sale for the Alexander Water and Sewer Extension submitted by Wendell Alexander for continuous operation and maintenance of 125 feet of watermain and 117 feet of sewers. The bonds are to be released after the maintenance period. This project is located at 11808 SW 236 h Street. 3. EXHIBITS: Vicinity map . 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5 UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION ACTION: Council Agenda Item No 6H Alexander Water and Sewer Extension S.E. 208 fh ST. .� co 0 • SI TE w 4 34 ih ST S.E. 23/v th ST. JAMES ST. S.E . W W W N } > • < 4; S.E. 244 ih ST. o > Z d N L M 04Ny4iy S.E. 256 th ST. R. KENT KANG CEY RD. VICINITY MAP N. T.S. Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: TORKLIFT PARKING LOT STREET IMPROVEMENT BILL OF SALE—ACCEPT 2. SUMMARY STATEMENT: As recommended by the Public Works Director, accept the Bill of Sale for Torklifr Parking Lot Street Improvements submitted by Kay Partnership LLC for continuous operation and maintenance of 120 feet of street improvements and 51 feet of storm sewers. The bonds are to be released after the maintenance period This project is located at 524 Railroad Ave N. 3 EXHIBITS: Vicinity map 4 RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6 EXPENDITURE REOUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds • DISCUSSION ACTION: Council Agenda Item No. 6I Torklift Parking Lot Street Improvements A A rJAMESST > u N az t R Sr J 2 F SMITH ST N � a (MFLKER ST KENT x VICINITY MAP N�--� SCALE: N 7 S Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1 SUBJECT: KENT VALLEY ICE ARENA UTILITY IMPROVEMENT BILL OF SALE—ACCEPT 2. SUMMARY STATEMENT: As recommended by the Public Works Director, accept the Bill of Sale for Kent Valley Ice Arena Utility Improvements submitted by Lexi Doner for continuous operation and maintenance of 150 feet of watermain, 25 feet of sewers, 100 feet of street improvements and 120 feet of storm sewers. The bonds are to be released after the maintenance period. This project is located at 6015 S 2401h Street. 3. EXHIBITS: Vicinity map . 4. RECOMMENDED BY: Public Works Director (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds • DISCUSSION: ACTION: Council Agenda Item No. 6J Kent Valley Ice Arena Utility Improvements LAKE5'O�°G KENT W. JAMES ST iU 1 8, 167 cy W MEEKER ST � y 516 VICINITY MAP NTS Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1 SUBJECT: PROPOSED LID 356, 111TH AVENUE SANITARY SEWERS, SET PUBLIC HEARING DATE, RESOLUTION—ADOPT 2. SUMMARY STATEMENT: As recommended by the Public Works Committee, adoption of Resolution No. I LW 7 setting a public hearing date of August 190' for the LID formation. 3. EXHIBITS: Public Works Director memorandum, vicinity map and resolution • 4. RECOMMENDED BY: Public Works Committee 7/l/03 (3-0) (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION- Council Agenda Item No. 6K COMMUNITY DEVELOPMENT Mike H Martin, Deputy Chief Adnunistraum e Officer PUBLIC RORKS DEPARTMENT Don E Wickstrom, P E. Public Works Director • K E N T W•SNIMGT OM Address 220 Fourth Avenue S Kent,WA 98032-5895 Date June 26, 2003 To- Public Works Committee � From: Don Wickstrom 4 Regarding. Proposed L.I D - 1 11'h AN e Sanitary Sewers (SE 256'h Street to 850 feet north) The City received a petition for the installation of sanitary sewers in the �icimty of 1 i i i'Ave S E and SE 2561h St. in the residential plat of Coates Addition as shown on the attached map Subsequently, all property owners n ithm the project area n ere contacted and there appears to be adequate support to proceed with the L I D formation The project area is inside the City hmmts and Kent's seer service area The City deg eloped a proposal to service elem en unsewered lots All other lots on this portion of i i 1'h Ave S E. already have sewer connections The mfomiation including cost was given to the petitioner The petitioner sent the information to the neighbors in the area and confinned interest in the L I D with new signatures on a new petition Seven of the eleven lots (64%) signed the petition These parcels are indicated on the map. The total L I D assessment is estimated at $165,000 All lots are platted single family lots receiving one side sewer connection so all are assessed equally The estimated assessment is $15,000 per lot The project area consists an older residential plats (1965) developed with septic systems Fie of the eleven lots remain vacant needing sewer to be developed it is not known how many existing septic systems are technically in a state of failure, howe%er, we understand from the residence that there are septic problems in the area. One owner said his system is near total failure and needs frequent punmpng of the septic tank. He is unable to get a permit to rebuild his drain field Usually it is difficult to repair septic problems, especially on small lots such as these with lunited space Sanitary sewers are usually the most feasible, economical and long term method for addressing these problems, especially when numerous property owners in a neighborhood support serer installation as is the case with this proposal The Department of Public health has told us that the life expectancy of a septic system is tmvenly to thirty years depending on use and maintenance and that they are a short tenn disposal method until public sewets become available The piodect area has ;really exceeded this time frame andthe reports of failures substantiate that these systems are at or are near the end of their useful hi e They also say that the cost of septic repairs may be as high as comerling to public sewers. The latest stale codes make septic repairs moredifficult and expensne. The soil type within the project area is poorly rated for septic system use According to the soil Conservation Service (US Dept of Agriculture) Soil survey for King County, the soil type as mapped is rated severe limitation for septic drain fields The soil series is designated as Ag13 (Aldemood gravelly sandy foam, 0 to 6% slopes). This soil exhibits very slow permeability below a depth of 24-40 inches and a seasonal high water table. Effluent and drainage move laterally over the imperious layers Effluent may come to the surface in yards and in roadside ditches Five of the eleven lots in the proposed L I D are vacant. Sanitary sewer is needed to make these lots developable. Without sewer, the owners caimot develop the lots or realize the full valueof the property upon selling There is interest in improving these lots with sewer. However, one owner of an undeveloped lot said she doesn't want the local improvement district There are no City owned properties within the proposed project therefore no assessments to be paid by the City Hoxve%er, the proposal is for the City to contribute $91,500 sewer utility funds Nine of the twenty lots along the proposed sewer have already obtained ser%ice from a sewer east of the plat Therefore, there are only 1 i of the 20 lots remaining to share the cost of the proposed sewer If all 20 lots were included, the estimated assessment would be approximately $15,000 per lot. The proposal is for the City to fund the costs in excess of the $15,000 per lot assessment. ACTION REQUESTED Recommend adoption of the Resolution of Intent setting a public Bearing date on the formation of the L.I.D. for the 11 properties shov%n on the attached map. Attachments W II `r i II a 9E 116 ST m + S 216TH T r y z � m � SE 223RD ST D {3 a 1A CITY OF KENT � W . W ' 1 c S 26T b t m / 7 J � i ST n 1 S ST SE 40T ST b W N ✓ SMITH T a SE 44T ST CLARK r > r LK a x rn vi SE 46TH ST W w 1 b I S N ST o 110UECT r o i dC O W WAL T S S 5 T � w Y KKR a 9 a/iii/ '/„ S 2 9TH Si //vin•.,//� O� T r 6 + / R E u SE 264TH ST u / 4 / N I N a TR111 I mJi S 277 H ST7F' a CITY OE KENT ENGINEERING DEPARTMENT 400 W GOWE ST KENT. WA. 915032 � PROPOSED SANITARY SEWER L.I.D. VICINITY MAP " �JKENT 111TH AVENUE S.E. "' (S.E. 256TH STREET TO 850 FT. NORTH) JUNE. 2003 u I ' S.E. 252NO ST i I I I I - I I l� PR 6" S SkANITARY EXISTING NITA - SEWER SANITARY PROPOSED B" SANITARY SEWER I W I LEGEND *O7 Q EXISTING (D ASSESSMENT W SEWER N = _ SIDE SEWER I LJ NUMBER 6 i I LID PARCEL I — ——PROPOSED `k OS SANITARY 1 SEWER L.I.D. t BOUNDARY „ O I * SIGNED NEW PETITION *Q S.E. 256TH ST i I S a I s a CITY Of KENT CNGINEERINO DEPARTMENT l00 W. GOWE ST KENT. WA. 9E032 PROPOSED SANITARY SEWER L.I.D. BOUNDARY MAP KENT iiiTH AVENUE S.E. (S.Eo256TH STREET TO 850 FT. NORTH) u Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: CHANGE OF CITY COUNCIL MEETING TIME—APPROVE 2. SUMMARY STATEMENT: Adopt Ordinance No. _, which changes the City Council meeting time on August 5, 2003, from 7:00 p.m. to 5:00 p.m., and to direct the City Clerk to provide the necessary notices as provided by law. On August 5, 2003, the City of Kent, along with other cities all across the country, will recognize "National Night Out," an event designed to bring neighborhoods together for the purpose of community enhancement and crime prevention. The police department, City Council, and other city representatives take this opportunity to thank the citizens that make this neighborhood crime prevention program work. In order to attend this event, the Council will need to cancel its regular meeting at 7:00 p.m. on August 5, 2003, and change it to a special meeting at 5:00 p.m. on that same day. • 3. EXHIBITS: Ordinance 4 RECOMMENDED BY: Mayor (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6L I I ORDINANCE NO. AN ORDINANCE of the city council of the city of Kent,Washington,changing the time of the August 5,2003, city council meeting from 7 00 p m to 5 00 p in WHEREAS, pursuant to section 2 01 020 of the Kent City Code, the currently established time and date for regular council meetings of the city council are the first and third Tuesday of each month at 7 00 p m , and WHEREAS,National Night Out is an important function councilmembers wish to attend, and �I WHEREAS,National Night Out is scheduled to occur on August 5,2003, during the time of the city council's meeting, and WHEREAS, by scheduling the regular council meeting on that date at i 5 00 p in , instead of 7 00 p m , councilmembers will have an opportunity to participate i in National Night Out, NOW THEREFORE, I i I li 1 City Council Meeting Schedule For August 5, 2003 THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS I SECTION 1. — Meeting Tune Rescheduled The time of the regularly scheduled council meeting for August 5, 2003, is changed from 7:00 p m to 5 00 p m , i effective only for this council meeting Except to the extent it affects the city council's August 5, 2003, meeting, this ordinance does not amend Section 2 01 020 of the Kent City Code. SECTION 2. - Severabtluy If anyone or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3. - Effective Date This ordinance shall take effect and be in I force five (5) days from and after its publication as provided by law. i JIM WHITE, MAYOR ATTEST I BRENDA JACOBER, CITY CLERK I j i APPROVED AS TO FORM ' I 1 TOM BRUBAKER, CITY ATTORNEY I 2 City Council Meeting Schedule For August 5, 2003 PASSED- day of July, 2003 1 APPROVED day of July, 2003 PUBLISHED. day of July, 2003. I hereby certify that this is a true copy of Ordinance No passed by the city council of the city of Kent,Washington, and approved by the mayor of the city of Kent as hereon indicated (SEAL) BRENDA JACOBER, CITY CLERK I I I i �I 3 City Council Meeting Schedule For August S, 2003 Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: TAHOMA VISTA REZONE ORDINANCE—ADOPT 2. SUMMARY STATEMENT: Adoption of Ordinance No. relating to land use and zoning, rezoning property comprised of approximately 4.84 acres of property located at 25206 and 25230 132nd Avenue Southeast, from Single Farmly Residential (SR-4.5), to Single Family Residential (SR-6), (Tahoma Vista Rezone, #RZ-2002-5). 3. EXHIBITS: Ordinance • 4. RECOMMENDED BY: Hearing Examiner (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7 CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION- Council Agenda Item No. 6M ORDINANCE NO. AN ORDINANCE of the city council of the city of I Kent, Washington, relating to land use and zoning, specifically the rezoning of approximately 4 84 acres of I property located at 25206 and 25230 132"d Avenue Southeast from Single Family Residential (SR-4 5), to Single Family Residential (SR-6) (Tahoma Vista Rezone, #RZ-2002-5) WHEREAS, an application to rezone approximately 4 84 acres from the current zoning of Single Family Residential (SR-4 5)to Single Family Residential(SR-6) was filed on November 15, 2002 (Tahoma Vista Rezone, #RZ-2002-5), and WHEREAS,the city's SEPA responsible official issued a Determination of Nonsigmficance (DNS) for the proposed rezone on April 21, 2003, and WHEREAS, a public hearing on the Tahoma Vista Rezone was held before the hearing examiner on May 21, 2003, and WHEREAS, on June 4, 2003, the hearing examiner issued findings and conclusions that the Tahoma Vista Rezone is consistent with the city's Comprehensive ' Plan,that the proposed rezone and subsequent development activity would be compatible with the development in the vicinity, that the proposed rezone will not unduly burden the 'transportation system in the vicinity of the property with significant adverse impacts which cannot be mitigated,that circumstances have changed since the establishment of the current 1 Tahoma Vista Rezone 'zoning district to warrant the proposed rezone, and that the proposed rezone will not I� !adversely affect the health, safety, and general welfare of the citizens of the city of Kent, and WHEREAS, the findings are consistent with the standards for rezone set forth in sections 15 09 050(A)(3) and 15 09 050(C) of the Kent City Code, and WHEREAS, the Kent Hearing Examiner recommended approval of the Tahoma Vista Rezone on June 4, 2003, and WHEREAS,on July 1, 2003,the city council moved to accept the findings of the hearing examiner and the hearing examiner's recommendation for approval of the Tahoma Vista Rezone from Single Family Residential (SR-4 5) to Single Family I Residential (SR-6), NOW, THEREFORE, i THE CITY COUNCIL OF THE CITY OF KENT,WASHINGTON,DOES HEREBY ORDAIN AS FOLLOWS- SECTION 1. - Rezone The property located at 25206 and 25230 132nd Avenue Southeast, Kent, Washington consisting of approximately 4 84 acres depicted in Exhibit "A" (marked "Site"), attached and incorporated by this reference, and legally described in Exhibit"B"attached and incorporated by this reference,is rezoned as follows King County tax parcel numbers 2222059126 and 2222059031 located in Kent,Washington,shall be rezoned from Single Family Residential(SR-4.5) to Single Family Residential (SR-6) The city of Kent zoning map shall be amended to reflect the rezone granted above I 2 Tahoma Vista Rezone !I SECTION 2. - Severabahty If anyone or more sections, sub-sections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect SECTION 3. -Effective Date This ordinance shall take effect and be in force five(5)days from and after its passage,approval and publication as provided by law I JIM WHITE, MAYOR ATTEST BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM i TOM BRUBAKER, CITY ATTORNEY PASSED day of 2003 APPROVED day of 12003 i PUBLISHED day of 2003 3 � Tahoraa Vista Rezone I hereby certify that this is a true copy of Ordinance No passed by the city council of the city of Kent,Washington, and approved by the mayor of the city ,of Kent as hereon indicated (SEAL) BRENDA JACOBER, CITY CLERK P\CrvdONmvmeV czom.TNomoVismdoc I II �I 4 Tahoma Vista Rezone EXHIBIT "A" SITE � SE 249TH PL SE 248TH S �— cw SE 233RD PL w 0 d SE 253RD PL SE 256TH ST APPLICATION NAME: TAHOMA VISTA REQUEST. #SU-2001-6 (KIVA #2020890) AND #RZ-2002-5 (KIVA#2023606) EXISTING LEGAL DESCRIPTIONS FOR TAHOMA VISTA SUBDIVISION, KENT WA LOT A LOT A OF KING COUNTY SHORT PLAT NO. 874039, RECORDED UNDER RECORDING NUMBER 7412200293, RECORDS OF KING COUNTY, WASHINGTON. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. SUBJECT TO- (1) EASEMENT FOR THE RIGHT TO MAKE SLOPES FOR CUTS OR FILLS ALONG THE STREET MARGIN OF SAID PREMISES ABUTTING 132ND AVE SE, AS GRANTED BY DEED RECORDED UNDER RECORDING NOS. 4164202, 4164208, AND 7412100432,2)TERMS, COVENANTS, CONDITIONS AND RESTRICTIONS ANC CONTAINED IN SHORT PLAT NO. 874039, RECORDED UNDER RECORDING NUMBER 7412200293 LOT B LOT B, KING COUNTY SHORT PLAT NUMBER 874039, RECORDED UNDER RECORDING NUMBER 7412200293 IN KING COUNTY, WASHINGTON, BEING A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 22, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY WASHINGTON. SUBJECT TO (1) EASEMENT RECORDED UNDER COUNTY NO. 684527, (2) RIGHT FOR SLOPES, CUTS OR FILLS RECORDED UNDER NO. 4164202 (3) RIGHTS FOR SLOPE CUTS OR FILLS UNDER NO. 7412100432 EXHIBIT "B" Kent City Council Meeting Date July 15, 2003 Category Consent Calendar 1. SUBJECT: U.S. DEPARTMENT OF EDUCATION GRANT —AUTHORIZE 2. SUMMARY STATEMENT: The Public Safety Committee recommends that the Kent Police Department's application for the U.S. Department of Education, Life Skills for State and Local Prisoners Program Grant be authorized. This grant's goal is to "reduce recidivism through the department and improvement of life skills necessary for reintegration of adult prisoners into society." The Kent Police Department plans to use this funding to expand alternatives to incarceration working with New Connections and the Renton Technical Institute. The Kent Police Department total grant funding request is $161,500 per year. The project period can extend up to 36 months, with a total grant funding amount of$484,500. The deadline to apply for this grant is July 14, 2003. 3. EXHIBITS: Executive summary attachment for grant application and description of Life Skills for State and Local Prisoners Program 4. RECOMMENDED BY: Police Department (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCALIPERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS: 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds DISCUSSION: ACTION: Council Agenda Item No. 6N POLICE DEPARTMENT Ed Crawford, Chief of Police Phone 253-856-5888 Fax 253-856-6802 KEN T Address 220 Fourth Avenue S WASHINGTON Kent,WA 98032-5895 DATE: July 8, 2003 TO: Public Safety Committee SUBJECT: Kent Police Department requests authorization to apply for U S Department of Education, Life Skills for State and Local Prisoners Program Grant SUMMARY: This grant's goal is to "reduce recidivism through the development and improvement of life skills necessary for reintegration of adult prisoners into society" The Kent Police Department plans to use this funding to expand alternatives to incarceration working with New Connections and the Renton Technical Institute The Kent Police Department total grant funding request is $161,500 per year The project period can extend up to 36 months, with a total grant funding amount of$484,500 The deadline to apply for this grant is July 14, 2003 EXHIBITS: Executive Summary attachment for grant application Description of Life Skills for State and Local Prisoners Program BUDGET IMPACT None—No matching funds required MOTION I move to recommend that this item be placed on the Consent Calendar of the July 15, 2003 Council Meeting recommending that Council authorize the Kent Police Department's application for the U S Department of Education, Life Skills for State and Local Prisoners Program Grant Kent City Council-Public Safety Committee 1 U S Department of Education Grant July 8,2003 Executive Summary The City of Kent's population more than doubled from 1990 to 2000. The city's current population is estimated at 85,651. From 1998 to present the daily population at the City of Kent Corrections Facility (CKCF) has grown steadily hitting a high of 210 inmates in 2001. Currently, the Kent Jail average daily population is between 130 to 140 inmates, including the electronic home detention (EHD), work release and work time credit and work crew lad programs. In 1997, the Kent City Jail allocated one full time officer to Programs. Due to focused staff efforts, participation in these programs has increased steadily since 1997. In 1999, the jail added another officer to the Programs Division and the current program participation averages approximately 20 inmates on EHD, 12 to 14 inmates on work time credit, and 4 to 6 inmates on work release. The programs have hit a high of 35 to 40 on EHD, 20 on work time credit, and 15 on work release. The work crew program was developed in 2002. This program continues to evolve and contact additional businesses to participate in this program. The Kent City Jail Programs staff work closely with New Connections of South King County. New Connections is the only agency in the greater Kent area offering life skills classes to inmates and transitional counseling and referrals once the offenders are released from Jail. New Connections assisted 330 clients in their office in 2001. The clientele served in their office grew to 1,421 in 2002. In addition, Lana Matthew of New Connections assisted 1,854 jail inmates at the King County regional Jail in Kent and the CKCF navigate through the justice system in 2002. Criminal offenders need education and vocational training in order to succeed upon their release from custody. The Renton Technical Institute (RTI) offers vocational instruction that can create a culture of achievement, improve student achievement and enhance the quality and access to adult education. The RTI offers flagger training and food handler card classes to incarcerated offenders. Life Skills for State and Local Prisoners Program The Kent Police Department requests authorization to apply for the U.S. Department of Education, Life Skills for State and Local Prisoners Program. The grant program's goal is to "reduce recidivism through the development and improvement of life skills necessary for reintegration of adult prisoners into society." The project period can extend up to 36 months. The Department of Education estimates funding is available for 12 awards ranging from $315,000 to $475,000 annually. There are no matching funds required. The deadline to apply for this grant is July 14, 2003. The Kent Police Department plans to use this funding to expand alternatives to incarceration. This project will provide City of Kent Corrections Facility offenders with life skills training, counseling resources and vocational education. The Kent Police Department will partner with New Connections to provide life skills, stress reduction and employment skills classes to incarcerated offenders. Relapse Prevention treatment will also be offered to lad inmates. New Connections will also provide aftercare services to CKCF offenders upon their release from ]ail. The Renton Technical Institute will provide flagger training and food handler card classes to Jail inmates. Funding will also purchase additional work crew equipment and safety gear. This funding will purchase the necessary jail classroom equipment to support these additional educational programs. The Kent Police Department total grant funding request is $161,500 per year. If funding is available for three years the total grant amount would be $484,500. Life Skills for State and Local Prisoners Program CFDA#84 255A Information and Application Procedures for Fiscal Year 2003 OMB No. 1890-0009 Expiration Date: 6/30/2005 Application Deadline- 7/14/2003 Dear Colleague: Thank you for your interest in applying for a grant under the Life Skills for State and Local Prisoners Program Tlus program offers life skills training grants to eligible entities to assist them in establishing and operating programs designed to reduce recidivism through the development and improvement of life skills necessary for reintegration into society As the U S prison and Jails population has recently climbed above two million for the first time in our Nation's history, it is important to prepare institutionalized offenders for a successful return to communities. We are committed to broad implementation of the fundamental principles of the President's education reform agenda as reflected in the No Cluld Left Behind Act of 2001 in all aspects of our work. The four basic principles are stronger accountability for results, increased flexibility and local control, choice, and an emphasis on determining what educational programs and practices have been clearly demonstrated to be effective through rigorous scientific research The Department has designed this Life Skills for State and Local Prisoners Program competition to support the President's vision for educational reform Successful applicants will receive funding to establish or expand pnson-based and Jail-based instructional programs that utilize proven strategies and/or that are specifically designed to scientifically test promising strategies These programs will be characterized by rigorous accountability systems against clearly defined results and transparent reporting systems. Successful programs will demonstrate instructional practices that serve to restore inmates to productive citizenship. We look forward to receiving your application for support under the Life Skills for State and Local Prisoners Program Cordially, ���tit1T OFFdG� Judge Eric Andell A z SATES OF U.S. Department of Education Kent City Council Meeting Date July 15, 2003 Category Other Business 1. SUBJECT: KENT STATION PRELIMINARY PLAT, CLOSED RECORD APPEAL (#SU-2002-9/KIVA#RPP3-2023555) 2. SUMMARY STATEMENT: This is a closed record appeal hearing of the decision of the hearing examiner, approving a preliminary plat for Kent Station applied for by Kent Station, LLC. The hearing examiner's Findings, Conclusion, and Decision were issued on January 30, 2003. 3 EXHIBITS: Complete copy of the Hearing Examiner's record and Appellant's request for appeal are contained in a separate binder 4. RECOMMENDED BY: Hearing Examiner (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES 6. EXPENDITURE REQUIRED: $ SOURCE OF FUNDS. 7. CITY COUNCIL ACTION: Councilmember moves, Councilmember seconds to sustain/revelse/m"mod the Hearing Examiner's January 30, 2003, Fmdmgs, Conclusions, and Decision. DISCUSSION: ACTION: Council Agenda Item No. 7A Kent City Council Meeting 40 Date July 15, 2003 Category Bids 1. SUBJECT: REITH ROAD WATER MAIN IMPROVEMENTS, 42ND AVENUE SOUTH TO PUMP STATION#4 2. SUMMARY STATEMENT: The bid opening for this project was held on July 2, 2003 with four bids received. The low bid was submitted by Kar-Vel Construction Co in the amount of$212,289.96. The Engineer's estimate was $328,787.07. The Public Works Director recommends awarding this contract to Kar-Vel Construction Co. 3. EXHIBITS: 4. RECOMMENDED BY: (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL I ACT: NO X YES 6. EXPENDITURE REQUIRED: $2 12 9.96 SOURCE OF FUNDS: W20102 7 CITY COUNCIL ACTION: p Councilmember l:f Get moves, Councilmember 4 dzmm seconds that the Reith Road Watermain Improvement contract be awarded to Kar-Vel Construction Co. for the low bid amount of$212,289 96. DISCUSSION:_ ACTION: Council Agenda Item No. 8A PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director Phone 253-856-5500 Fax 253-856-6500 K E N T Address 220 Fourth Avenue S WASHINGTON Kent,WA 98032-5895 DATE: July 1 , 2 03 TO: May 1 tie and Kent City Council FRONT: Don strom, Public Works Director SUBJECT: Reith Road Water Main Improvements Project—Award Bid SUDIMARY: Bid opening for this project was held on July 2, 2003 with four bids recen ed The lowest bid was submitted by Kar-Vel Construction in the amount of$212,289 96 The Engineer's estimate was $328,787 07 The Public Works Director recommends awarding this contract to Kar-Vel Construction Bid Summary Kar-Vel Construction $212,289 96 Westwater Construction Co $265,705 92 Construct Co , LLC $271,632 52 Laser Underground S284,865 60 Engineer's Estimate $328,787 07 BUDGET IMPACT No Unbudgeted Fiscal/Personnel Impact MOTION. Councilmember moves, Councdmember seconds that the Reith Road Water Main Improvements contract be awarded to Kar-Vel Construction for the low bid amount of$212,289 96 Mayor White and Kent City Council Reith Road Water Main Improvements-Award Bid July 15,2003 1 Kent City Council Meeting Date July 15, 2003 Category Bids 1. SUBJECT: GARRISON WELL & EAST HILL WELL REPLACEMENT WELLS 2 SUMMARY STATEMENT: The bid opening for this project was held on July 7, 2003 with two bids received. The low bid was submitted by Hokkaido Drilling, Inc. in the amount of$273,196.80. The Engineer's estimate was $270,933.76. The Public Works Director recommends awarding this contract to Hokkaido Drilling, Inc. for $273,196.80, subject to contract reduction for contingency items 1084 through 1096 3 EXHIBITS: 4. RECOMMENDED BY: (Committee, Staff, Examiner, Commission, etc.) 5. UNBUDGETED FISCAL/PERSONNEL IMPAC NO X YES 6. EXPENDITURE REQUIRED: $273 196.8 SOURCE OF FUNDS: W20102 7 CITY COUNCIL ACTION: Councilmember UA4,k moves, Councilmember pR ""`m%-' seconds that the Garrison and East Hill Well Replacement contract be awarded to Hokkaido Drilling, Inc for the low bid amount of$273,196 80 subject to contract reduction for contingency items 1086 through 1096. DISCUSSION: ACTION: Council Agenda Item No. 8B PUBLIC WORKS DEPARTMENT Don E Wickstrom, P E Public Works Director • Phone 253-856-5500 K ENT Fax 253-856-6500 w.s �,o� Address 220 Fourth Avenue S Kent,WA 98032-5895 DATE: Jul&15, 2 03 TO: Maite and Kent City Council FROM: Dotrom, Public Works Director SUBJECT: Garrison and East Hill Well Replacement Project—Award Bid SUMMARY: Bid opening for this project was held on July 7, 2003 with two bids received The lowest bid was submitted by Hokkaido Drilling, Inc in the amount of $273,196 80 The Engineer's estimate was $270,933 76 The Public Works Director recommends awarding this contract to Hokkaido Dnlhng, Inc subject to contract reduction for contingency items 1084 through 1096. Bid Summary Hokkaido Drilling, Inc $273,196 80 Holt Drilling, Inc. 5327,705.60 Engineer's Estimate $270,933.76 BUDGET IMPACT No Unbudgeted Fiscal/Personnel Impact MOTION- Councilmember moNes, Councilmember seconds that the Garrison and East Hill Well Replacement contract be awarded to Hokkaido Drilling, Inc for the low bid amount of $273,196 80, subject to contract reduction for contingency items 1084 through 1096 • Mayor White and Kent City Council Garrison& East Hill Well Replacement-Award Bid July 15,2003 1 REPORTS FROM STANDING COMMITTEES AND STAFF A. COUNCIL PRESIDENT B. OPERATIONS COMMITTEE C. PUBLIC SAFETY COMMITTEE D. PUBLIC WORKS E. PLANNING COMMITTEE F PARKS COMMITTEE off" G. ADMINISTRATIVE REPORTS REPORTS FROM SPECIAL COMMITTEES �e� le Operations Committee Minutes June 17, 2003 Committee Members: Leona Orr, Tim Clark, Judy Woods, sitting in for Rico Yingling The meeting was called to order by Acting Chair Judy Woods at 4:00 PM. Approval of Minutes of June 6, 2003 Leona Orr moved to approve the minutes of the June 6, 2003, Operations Committee meeting. The motion was seconded by Tim Clark and passed 3-0. Approval of Vouchers Dated June 15, 2003 Tim Clark moved to approve the vouchers dated June 15, 2003. The motion was seconded by Leona Orr and passed 3-0. Data Center Power Supply Unit Proiect Information Technology Director Marty Mulholland said that all computers need"clean" power for smooth operations. The current UPS system is running at 90% capacity and additional equipment cannot be added unless that capacity is increased. This project would be the first use of contingency monies identified to support unforeseen projects as part of Technology Plan 2002. Leona Orr moved to recommend that Council authorize the Mayor to sign purchase orders for purchase and installation of additional power supply units for the data center using contingency funds from Technology Plan 2002. The motion was seconded by Tim Clark and passed 3-0. Lodging Advisory Board Members— Reappointment Economic Development Manager Nathan Torgelson presented the Lodging Tax Advisory Board's recommendation that Kathy Madison and Andy Wangstad be reappointed to additional 3-year terms on the Board. Tim Clark moved to recommend that Council approve the reappointment of Kathy Madison and Andy Wangstad for additional three year terms on the Lodging Tax Advisory Board. The motion was seconded by Leona Orr and passed 3-0. Kent Lodging Association Budget Nathan Torgelson presented an amendment to the Kent Lodging Association contract to add $14,120 to the contract for the continuation of services from July through December 2003. Operations Committee, 6/17/03 2 Leona Orr moved to recommend that Council approve an amendment to the Kent Lodging Association Budget, which extends the contract through the end of 2003. The amendment adds $14,120 to the budget for a total amount of $53,910. Tim Clark seconded the motion which passed 3-0. Public Market Development Authority—Transfer of Property City Attorney Tom Brubaker said that since the Public Market had ceased to exist, the Public Development Authority that was created to help the market, had lost its reason for existence. The PDA will transfer all its real and personal property assets to the City of Kent, and the PDA will then be dissolved. Mr. Brubaker handed out an amended motion. Tim Clark moved to recommend that Council authorize the Mayor to accept all property, real and personal, that the PDA offers to transfer to the City of Kent, to authorize the Mayor to execute any and all necessary documents in order to effect the property transfer, and to set a public hearing on the proposed dissolution of the PDA before the City Council at its July 15, 2003, meeting. The motion was seconded by Leona Orr and passed 3-0. The meeting adjourned at 4:15 PM. Jackie Bicknell Council Secretary • PUBLIC WORKS COMMITTEE MINUTES JUNE 169 2003 COMMITTEE MEMBERS PRESENT- Leona Orr sitting in for Chair Tim Clark , Conine Epperly sitting in for Rico Yingling, Julie Peterson, The meeting was called to order by Leona Orr at 5 00 P M Approval of Minutes of June 2, 2003 Connie Epperly moved to approve the minutes of June 2, 2003 The motion was seconded by Committee Member Julie Peterson and passed 3-0 Declare Equipment Surplus Public Works Director Don Wickstrom said the list of surplus equipment and materials are no longer of use or necessary to the City Public Works Operations requested they be declared surplus and sold at the annual Cornucopia Days Celebration Because some of the equipment is Water Utility owned a public hearing will be required on these items Julie Peterson moved to declare the listed equipment as surplus equipment and authorize Public Work Operations to place these items on the auction list for Cornucopia Days. In the event these items are not sold at the auction then they will be sold for scrap metal or disposed of as authorized by Kent City Code or those regulations governing disposal of surplus equipment. The motion was seconded by Connie Epperly and passed 3-0. Restrictive Covenant Kent Highlands Landfill- Authorize Don Wickstrom said in the early 1970's the City was deeded about 5 acres of property within Kent Highlands landfill site for park purposes. At that time the end use of landfill property for park purposes was probably standard practice Seattle subsequently bought the property and went through a voluntary cleanup and closure action They did so to avoid the site being declared as a Federal superfund site and then being ordered by EPA to clean it up and close it To complete the closure of the site certain documents must be recorded on the site to let future owners of the site know what the restrictions are regarding potential use Seattle has recoded these documents on their property and in order to finalize their closure these same documents must be recorded on the City's property Since the City could be forced to record them by court action the Public Works Department recommends that we do so Connie Epperly moved to recommend that Council authorize the Mayor to sign the Restrictive Covenant Kent Highlands Landfill document and record the Declarative Statement and the attached Cleanup Action Plan on the City's Kent Highlands property. The motion was seconded by Julie Peterson and passed 3-0. Public Works Committee, 6/16/03 2 Partial Termination and Relinquishment of Wetland Protection Easement and Reservation with Boeing Companv- Authorize . Don Wtckstrom said the Wetland Protection Easement and Reservation conveyed to the City of Kent by the Boeing Company for the Pacific Gateway Business Park may be terminated if and when a permit to fill wetlands area subject to Wetland Protection Easement has been issued by the United States Army Corps of Engineers, the COE issued the permit on August 23, 2002 allowing the wetlands areas to be filled that are designated on the Plat as Wetland Area G,H, M and SW. Julie Peterson moved to recommend that Council authorize the mayor to sign the Partial Termination and Relinquishment of Wetland Protection Easement and Reservation therein upon concurrence of the language therein by the City Attorney and the Public Works Director. The motion was seconded by Connie Epperly and passed 3-0. The meeting adjourned at 5 08 P M Janet Perschek Administrative Assistant c CONTINUED COMMUNICATIONS A. • • EXECUTIVE SESSION A) Property Acquisition i ACTION AFTER EXECUTIVE SESSION A)