HomeMy WebLinkAboutCity Council Committees - Operations - 03/06/2012 (3) • Operations Committee Agenda
KENTCouncilmembers: Les Thomas, Chair * Jamie Perry * Dennis Higgins
WASH NOTON
March 6, 2012
4:00 p.m.
Item Description Action Speaker Time Page
1. Approval of Minutes YES 1
Dated February 21, 2012
2. Approval of Check Summary Reports dated YES Bob Nachlinger
February 1 through February 15, 2012
3. Stop Loss Insurance Amendment YES Becky Fowler 10 Min. 3
4. Technology Fee Update NO John Hodgson 10 Min. 9
(INFORMATION ONLY) Jeff Watling
Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the Is' and 3r' Tuesdays
of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895.
Dates and times are subject to change. For information please contact Pam Clark at (253) 856-5723.
Any person requiring a disability accommodation should contact the City Clerk's Office at
(253) 856-5725 in advance.
For TDD relay service call the Washington Telecommunications Relay Service at
1-800-833-6388.
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KENO
W/9XINOTOH
OPERATIONS COMMITTEE MINUTES
February 21, 2012
Committee Members Present: Les Thomas (chair), Dennis Higgins, Jamie Perry
The meeting was called to order by L Thomas at 4:00 p.m.
1. APPROVAL OF MINUTES DATED FEBRUARY 7, 2012.
J. Perry moved to approve the Operations Committee minutes dated January 17, 2012.
D. Higgins seconded the motion, which passed 3-0.
2. APPROVAL OF CHECK SUMMARY REPORTS DATED JANUARY 1 THROUGH
JANUARY 31, 2012
D. Higgins moved to recommend Council approve the Check Summary Reports dated
January 1 — 31, 2012. J. Perry seconded the motion, which passed 3-0.
3. MOVE TO RECOMMEND COUNCIL APPROVE THE ADOPTION OF AN ORDINANCE
ESTABLISHING A BIENNIAL BUDGET BEGINNING JANUARY 1, 2013.
To date, the budget has been on an annual basis. After discussion at the Operations Committee,
Council workshop and the Council retreat, it is being proposed to convert to a biennial budget. This
process will save in efficiencies and provide a more long-range view. It will be presented as two
annual allocations. T Brubaker created a new Kent city code section that establishes the biennial
budget. All Operations Committee members are in favor of the change with mid-biennial review
and modifications. The mid-biennial review will allow for modifications and the public can weigh in
through public hearings on proposed modification, which will be passed by ordinance. Moving
forward, council will work with staff on additional policy and procedures then bring them back
through the Operations Committee. This Ordinance will go in front of the next City Council
meeting.
J. Perry moved to recommend Council approve the adoption of an ordinance establishing a
biennial budget beginning January 1, 2013. D. Higgins seconded the motion, which passed
3-0.
4. INFRASTRUCTURE FUNDING PROCESS (INFORMATION ONLY)
This is to continue the conversation for a funding package for Parks and Street infrastructure. An
ad hoc Council committee consisting of D. Higgins, D. Ralph (Parks committee) and E. Alberston
(Public Works committee) will be formed to work with staff and report back to the Operations
Committee. D. Higgins will chair the ad hoc committee. Two separate committees consisting of
community members, one representing Parks and the other representing Public Works/streets have
been or will be formed to verify and prioritize projects then eventually present together to the
council findings and multiple revenue sources. The Parks group is scheduled to meet on March 13.
The meeting was adjourned at 4:38 p.m. by L. Thomas.
Pamela Clark
Operations Committee Secretary
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3
KENT
WASHING-ON
BENEFITS DIVISION
Becky Fowler
Manager
400 West Gowe
Kent, WA 98032
Fax: 253-856-6270
OFFICE: 253-856-5290
DATE: March 6, 2012
TO: Kent City Council Operations Committee
FROM: Becky Fowler, Benefits Manager
THROUGH: John Hodgson, Chief Administrative Officer
SUBJECT: Amendment to LifeWise Assurance Company
2012 Stop Loss Contract
MOTION: I move to recommend to amend the LifeWise Assurance Company
contract for the city's stop loss coverage.
SUMMARY: The City's current administrator for our individual and aggregate stop loss
coverage is LifeWise Assurance Company. To be competitive in the market and for the
city to contain stop loss costs, the city went out to bid for the 2012 contract at the end of
the year. After reviewing the city's large claims LifeWise Assurance Company was the
only provider who agreed to continue the city's stop loss coverage for 2012. The
premium was increased for 2012 by 19.8% and is budgeted in the Health & Wellness
fund.
BUDGET IMPACT: $507,910. (Estimate)
BACKGROUND: As you are aware, the City is self-insured for all medical claims through
Premera Blue Cross. All City employees and their dependents that are enrolled in the
City's self-insured medical program are covered under a stop loss insurance policy. This
stop loss policy provides added coverage to the City for individual medical claims
exceeding $175,000 per employee or dependent for each calendar year. All medical
costs exceeding $175,000 per enrollee per year will be reimbursed to the City under this
policy.
4
SECTION 2
DEFINITIONS
Effective 01.01-12
The following definitions apply unless otherwise required by the context. With the exception of "we",
"us", "our", "you" and "yours", these definitions are capitalized throughout the policy.
2.1 Administrator means the third party administrator selected by you to perform certain functions
for your Plan. The term "administrator" as used in the Policy does not refer to the Plan
administrator used in the Employee Retirement Income Security Act of 1974, unless you have
specifically appointed the administrator as such. We are not the Administrator. We must
approve the third party administrator selected by you.
2.2 Aggregate Attachment Point is equal to the greater of:
A. The sum of the Monthly Aggregate Attachment Points for the Policy Period shown in the
Schedule; or
B. the Minimum Aggregate Attachment Point shown in the Schedule.
2.3 Annual Maximum is the maximum amount of eligible expenses you pay under your Plan, in
excess of the deductible, per Policy Period, that we will reimburse as stated on the Schedule.
The Annual Maximum will be reset each Policy Period.
2.4 Covered Benefits means those services and/or supplies received or obtained by a Covered
Person that are covered by the Plan and Incurred during the Expense Incurral Period as stated in
the Schedule.
2.5 Covered Person means an employee or his or her dependent or a Leoff 1 retiree or his or her
dependent that are enrolled in the Plan during the Expense Incurral Period.
2.6 Expense Incurral Period means the period of time as stated in the Schedule for which a
Covered Person may Incur Covered Benefits under the Plan. In the event that the Policy
terminates prior to the end of the Policy Period stated in the Schedule, the Expense Incurral
Period is modified, separately for Aggregate and Specific, to end on that date rather than at the
end of the Policy Period.
2.7 Expense Payment Period means the period of time stated in the Schedule for which you may
pay for Covered Benefits under the Plan. In the event that the policy terminates prior to the end
of the Policy Period stated in the Schedule, the Expense Payment Period is modified, separately
for Aggregate and Specific, to end on that date rather than at the end of the Policy Period plus
the length of time, if any, between the end of the Expense Incurral Period stated in the Schedule
and the end of the Expense Payment Period stated in the Schedule.
2.8 Incur or Incurred means the date on which Covered Benefits was received and/or obtained by a
Covered Person under your Plan.
2.9 Initial Effective Date means the date specified in the Schedule when the Policy first becomes
effective.
2.10 Pay or Paid means the date your check or draft for payment of Covered Benefits is issued and
mailed or electronically deposited directly to the payee, within the policy period, and that the
account upon which the payment is drawn contains sufficient funds to permit the check or draft to
be honored.
SLIP WA (10-10) 3 Definitions
5
SECTION 2
DEFINITIONS
(Continued)
Effective 01-01-12
2.11 Plan means the employee benefit plan you have adopted in writing to provide benefits to your
employees and their dependents, if applicable.
2.12 Policy means this policy, any amendments to this policy, the policyholder application, Plan, and
Schedule.
2.13 Policy Period means the period of time that this Policy is effective as stated in the Schedule.
2.14 Schedule means the Schedule of Coverage that is part of your Policy.
2.15 We, us and our means LifeWise Assurance Company.
2.16 You and your means the Policyholder.
SLP WA (10-10) 4 Definitions
6
AMENDMENT NO. 03
This amendment becomes a part of Stop Loss Policy No. WA-518212-9999 issued to City of Kent, the
Policyholder.
It is stipulated and agreed that:
Effective January 1, 2012:
The following sections are replaced:
Section 1, Schedule of Coverage; and
Section 2, Definitions.
All other terms and conditions of the contract remain unchanged, This amendment is signed for us at
Mountlake Terrace, Washington on the policy amendment effective date.
LifeWise Assurance Company
lot�
Michael Wozny
President
Instructions: Retain copy with your policy.
SLP WA AMD (09-08) Amendment
7
SECTION 1
SCHEDULE OF COVERAGE
Policyholder: City of Kent 10FEWISE
WA-518212-9999
Life I Disability I Stop Loss
POLICY PERIOD: January 1, 2012 through December 31, 2012
COVERAGE PROVIDED (Provided if checked):
1.1 ® AGGREGATE STOP LOSS
Attachment Level: ❑ 120% ❑ 125% ® Other: 200%
Aggregate Expense Incurral Period: From January 1, 2009 through December 31, 2012
Aggregate Expense Payment Period: From January 1, 2012 through December 31, 2012
A. Covered Benefits: ® Medical ❑ Dental ❑ Vision
❑ Weekly Disability Income ® Prescription Drugs
B. Aggregate Deductible (Composite):
Composite Units Medical/Rx
Aggregate Monthly Factor $2,302.27
C. Minimum Annual Aggregate Deductible: Greater of:
$24,284,344 or 95% of the First Monthly Aggregate Deductible times 12.
D. Limit of Liability: 100% of eligible expenses you pay under your Plan, in excess of the
deductible, will be reimbursed to a maximum of$1,000,000.
E. Claim Review is ® end of Policy Period ❑ Monthly with $ threshold.
F. Monthly Premium Rate (Composite Units): $0.01 per Employee
1.2 ® SPECIFIC STOP LOSS
Specific Expense Incurral Period: From January 1, 2009 through December 31, 2012
Specific Expense Payment Period:From January 1, 2012 through December 31, 2012
A. Covered Benefits: ® Medical ❑ Dental ❑ Vision
❑ Weekly Disability Income ® Prescription Drugs
B. $176,000 Individual Specific Deductible per person.
C. $NIA Aggregating Specific Deductible per contract year.
D. Limit of Liability: We will reimburse 100% of eligible expenses you pay under your Plan in
excess of the deductible. The maximum we will reimburse you per person:
Annually: ® $1,825,000 ❑ Unlimited
Lifetime: ❑ $ ® Unlimited
E. Specific Advanced Funding: ® Yes ❑ No
F. Monthly Premium Rate:
❑ Employee Only: $ Family Rate: $
® Composite: Employee & Dependent: $49.61
1.3 ❑ TERMINAL LIABILITY PROTECTION
❑ Yes ® No If yes, number of months:
SLP WA (10-10) 2 Schedule of Coverage
8
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9
KENT
WASHING-ON
OFFICE OF THE MAYOR
Suzette Cooke, Mayor
Phone: 253-856-5700
Fax: 253-856-6700
220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: March 6. 2012
TO: Kent City Council Operations Committee
FROM: John Hodgson, Chief Administrative Officer
THROUGH: Suzette Cooke, Mayor
SUBJECT: Technology Fee Update
MOTION: Information Only
SUMMARY: City Council approved the implementation of a Technology Fee on certain
transactions at part of the 2012 Budget process. Staff will provide a status report on the
progress of this initiative.
BUDGET IMPACT: N/A
EXHIBITS: N/A