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HomeMy WebLinkAbout07-30-2012 COW Committee of the Whole July 30, 2012 - 5:00 PM Council Chambers AGENDA I. CALL TO ORDER II. DISCUSSION ITEMS A. Association of Washington Cities Presentations (15 Minutes) Presented by Councilmembers Holman, Osborne and Wales B. Partially Self-Funded Healthcare (20 Minutes)* Presented by Director Heineman C. Return to Work Opportunities (20 Minutes)* Presented by Director Heineman D. Civic Organization Dues (20 Minutes)* Presented by Deputy Mayor Backus E. Agenda Topic Deadlines for Committee Meetings (10 Minutes) Presented by Deputy Mayor Backus F. Frequency of Committee of the Whole Meetings (10 Minutes) Presented by Mayor Lewis G. Youth City Council Status Update (10 Minutes) Presented by Director Faber H. Mary Olsen Farm and White River Valley Museum Update (10 Minutes) Presented by Director Faber III. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. *Denotes attachments included in the agenda packet. Page 1 of 26 AGENDA BILL APPROVAL FORM Agenda Subject: Partially Self-Funded Healthcare (20 Minutes) Date: July 24, 2012 Department: Administration Attachments: PowerPoint Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:July 30, 2012 Item Number:DI.B AUBURN * MORE THAN YOU IMAGINEDDI.B Page 2 of 26 Pa r t i a l l y S e l f - F u n d e d He a l t h C a r e Pr o p o s a l Re v i s e d 7 / 1 7 / 2 0 1 2 Em p l o y e r ’ s H e a l t h C o a l i t i o n of W a s h i n g t o n 1 DI.B Page 3 of 26 Be n e f i t s t o C i t y o f Pa r t i a l l y S e l f - F u n d i n g 1 • C i t y E s t a b l i s h e s R i s k L e v e l 2 • D a t a a n d C o s t C o n t r o l 3 • B e n e f i t s C o n t r o l a n d F l e x i b i l i t y 4 • H e a l t h C a r e R e f o r m 5 • E m p l o y e r ’ s H e a l t h C o a l i t i o n 2 DI.B Page 4 of 26 Pa r t i a l l y S e l f - F u n d i n g 3 Ci t y E s t a b l i s h e s R i s k L e v e l – Ci t y f u n d s u p t o “ S t o p L o s s ” l e v e l (M a x i m u m C l a i m L i a b i l i t y + P r o g r a m M a n a g e m e n t F e e ) – Ri s k f i n a n c i n g t o o l (h i g h e r d e d u c t i b l e = l o w e r c o s t b u t m o r e r i s k ) Da t a a n d C o s t C o n t r o l – Pr o v i d e s t o o l s t o d e v e l o p r i s k m a n a g e m e n t p l a n s f o r p o t e n t i a l f u r t h e r s a v i n g s No d a t a o r i n c e n t i v e w i t h A W C ( f i x e d p r e m i u m ) – 20 0 7 - 2 0 1 1 A W C P r e m i u m s h a v e i n c r e a s e d 5 2 % ($ 1 , 0 8 6 t o $ 1 , 6 5 2 / m o f u l l f a m i l y ) Be n e f i t s C o n t r o l a n d F l e x i b i l i t y – Ci t y d e t e r m i n e s c o v e r a g e DI.B Page 5 of 26 Pa r t i a l l y S e l f - F u n d i n g He a l t h c a r e R e f o r m – Li m i t s t a x c o n s e q u e n c e s , f e e s a n d s u r c h a r g e s Em p l o y e r ’ s H e a l t h C o a l i t i o n o f W a s h i n g t o n – Ex p e r i e n c e / B u y i n g p o w e r – Ca n b u i l d s u b s t a n t i a l l y s a m e p r o g r a m f o r l e s s c o s t 4 DI.B Page 6 of 26 St o p L o s s I n s u r a n c e Wh a t i s S t o p L o s s I n s u r a n c e ? – Pr o t e c t s t h e C i t y f r o m l a r g e c l a i m s t h a t e x c e e d a s p e c i f i c l i m i t wi t h i n t h e p l a n y e a r 20 1 3 I N G S t o p L o s s P r e m i u m : $7 8 0 , 0 0 3 – Ag r e e d i n w r i t i n g t o p r o v i d e a no n - l a s e r e d renewal – 12 / 1 5 c o n t r a c t (1 2 m o n t h i n c u r r e d 1 5 m o n t h b i l l e d ) Me d i c a l c l a i m s i n c u r r e d p r i o r t o D e c e m b e r 3 1 , 2 0 1 3 w i l l b e co v e r e d b y s t o p l o s s t h r o u g h M a r c h 2 0 1 4 . 5 DI.B Page 7 of 26 St o p L o s s C o v e r a g e “I n d i v i d u a l o r S p e c i f i c ” D e d u c t i b l e ( $ 1 0 0 , 0 0 0 ) – Re i m b u r s e s t h e C i t y w h e n a c l a i m a n t ’ s c o s t s e x c e e d t h e i n d i v i d u a l li m i t ( $ 1 0 0 , 0 0 0 ) w i t h i n t h e p l a n y e a r . Ex a m p l e - E m p l o y e e w i t h k i d n e y t r a n s p l a n t i n c u r s $ 5 0 0 , 0 0 0 ov e r t w o y e a r t i m e p e r i o d . 1 st ye a r h a s $ 2 5 , 0 0 0 i n m e d i c a l bi l l s & 2 nd ye a r h a s $ 4 7 5 , 0 0 0 . – St o p L o s s w i l l r e i m b u r s e t h e C i t y $ 3 7 5 , 0 0 0 . Ye a r 1 = $ 0 ( b e l o w t h e $ 1 0 0 , 0 0 0 s t o p l o s s ) Ye a r 2 = $ 3 7 5 , 0 0 0 ( $ 4 7 5 , 0 0 0 - $ 1 0 0 , 0 0 0 d e d u c t i b l e = $ 3 7 5 , 0 0 0 ) 6 DI.B Page 8 of 26 St o p L o s s C o v e r a g e Ag g r e g a t e D e d u c t i b l e ( $ 5 , 8 2 7 , 5 0 2 ) – Pr o v i d e s a c e i l i n g b y s e t t i n g t h e C i t y ’ s m a x i m u m f i n a n c i a l l i a b i l i t y f o r me d i c a l e x p e n s e s . – Se t a t 1 2 5 % o f t h e a c t u a r i a l l y de t e r m i n e d e x p e c t e d c l a i m s o r t h e Ci t y ’ s M a x i m u m C l a i m L i a b i l i t y ( $5 , 8 2 7 , 5 0 2 ). – Ex c l u d e s c o s t s a l r e a d y r e i m b u r s e d u n d e r t h e “ I n d i v i d u a l ( S p e c i f i c ) St o p L o s s ” b y c a r r i e r ( n o d o u b l e i n d e m n i t y ) . Ex a m p l e – A n e m p l o y e e h a s a $6 , 0 0 0 , 0 0 0 c l a i m o n l y $ 1 0 0 , 0 0 0 c o u n t s to w a r d t h e $ 5 , 8 2 7 , 5 0 2 a g g r e g a t e d e d u c t i b l e a s $ 5 , 9 0 0 , 0 0 0 w i l l b e p a i d un d e r t h e “ S p e c i f i c ” s t o p l o s s d e d u c t i b l e . Mu s t h a v e o v e r 5 9 i n d i v i d u a l $1 0 0 , 0 0 0 c l a i m s t o e v e r r e a c h t h i s l a y e r . 7 DI.B Page 9 of 26 Re s e r v e s : W A S t a t e R e g s Of f i c e o f R i s k M a n a g e m e n t re g u l a t e s “ s e l f - f u n d e d ” p l a n s an d r e q u i r e s w i t h i n t w o y e a r s : – Ap p r o v e d W r i t t e n P l a n – 16 W e e k s o f C l a i m s Re s e r v e s – 8 W e e k s o f F i x e d C o s t s Ci t y P r o j e c t i o n s : – Me e t 9 4 % o f r e s e r v e re q u i r e m e n t i n y e a r 1 – Re m a i n i n g 6 % i n y e a r 2 8 $0 . 0 $0 . 5 $1 . 0 $1 . 5 $2 . 0 WA S t a t e R e g s C i t y P r o j e c t i o n s Millions 8 Wks of Fixed Costs 16 Wks of Claims ReservesYear 2 Year 1 $1 , 6 0 7 , 5 6 1 $1,607,561 DI.B Page 10 of 26 Es t i m a t e d 2 0 1 3 C o s t s Li n e o f C o v e r a g e 20 1 3 A W C (F u l l y I n s u r e d Re n e w a l ) 2013 EHCW (Partially Self-Funded) Me d i c a l Fu l l y I n s u r e d M e d i c a l P r e m i u m ( A W C ) $7 , 6 4 7 , 4 7 3 NA EH C W P a r t i a l l y S e l f - F u n d e d b u d g e t * $7,287,673 TO T A L % d i f f e r e n t i a l c o m p a r e d t o 2 0 1 2 A W C R a t e $ 6 , 8 9 9 , 8 0 7 +1 1 % +6% 1 t i m e c o s t d i f f e r e n t i a l ( A W C P r e m i u m – E H C W b u d g e t ) +359,890 Fi r s t Y e a r N e t C l a i m s R e s e r v e s N/A$1, 147,841 Fi r s t Y e a r G r o s s C l a i m s R e s e r v e s ( i n c l u d e s 1 t i m e c o s t d i f f e r e n t i a l ) N/A$1,507,732 *E H C W P a r t i a l l y S e l f - F u n d e d B u d g e t = A c t u a r i a l l y p r o j e c t e d ma x i m u m c l a i m l i a b i l i t y ( $ 5 , 8 2 7 , 502) + fixed costs ($1,138,393) + H M O P r e m i u m ( $ 3 3 5 , 0 3 0 ) . 9 DI.B Page 11 of 26 Pr o j e c t e d R e s e r v e s Ac c u m u l a t i o n Mo n t h Gr o s s C l a i m s Re s e r v e s Pr o j e c t e d Cl a i m s Ne t C l a i m s R e s e r v e s Cumulative Net Reserves Ja n 48 5 , 6 2 5 $ 44 , 1 4 8 $ 4 4 1 , 4 7 7 $ 441,477$ Fe b 48 5 , 6 2 5 $ 26 4 , 8 8 6 $ 22 0 , 7 3 9 $ 662,216$ Ma r 48 5 , 6 2 5 $ 39 7 , 3 3 0 $ 8 8 , 2 9 5 $ 750,511$ Ap r 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 794,659$ Ma y 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 838,807$ Ju n 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 882,955$ Ju l 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 927,102$ Au g 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 971,250$ Se p 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 1,015,398$ Oc t 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 1,059,545$ No v 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 1,103,693$ D e c 48 5 , 6 2 5 $ 44 1 , 4 7 7 $ 4 4 , 1 4 8 $ 1,147,841$ Su b t o t a l 5, 8 2 7 , 5 0 0 $ 4, 6 7 9 , 6 5 9 $ 1, 1 4 7 , 8 4 1 $ 35 9 , 8 9 0 $ To t a l R e s e r v e s 1, 5 0 7 , 7 3 1 $ 1 T i m e C o s t D i f f e r e n t i a l 10 DI.B Page 12 of 26 1st Ye a r P r o j e c t i o n s $- $2 0 0 , 0 0 0 $4 0 0 , 0 0 0 $6 0 0 , 0 0 0 $8 0 0 , 0 0 0 $1 , 0 0 0 , 0 0 0 $1 , 2 0 0 , 0 0 0 $1 , 4 0 0 , 0 0 0 Ja n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c Gr o s s C l a i m R e s e r v e s Pr o j e c t e d C l a i m s C u m u l a t i v e N e t R e s e r v e s Cu m u l a t i v e N e t  Re s e r v e s :   $1 , 1 4 7 , 8 4 1 11 DI.B Page 13 of 26 AW C & E H C W T o t a l C o s t Co m p a r i s o n 12 AW C (A l l    Fu l l y  In s u r e d )                                                            . (PPO‐Self fu HMO Remain InsuredEHCWnded, s Fully ) 20 1 2 in c 20 1 3 2013 LE O F F ‐1 PP O $8 3 3 , 8 8 1   11 1 % $9 2 5 , 6 0 8   $6,952,643 Ac t i v e s PP O $5 , 7 8 0 , 6 0 0   11 1 % $6 , 4 1 6 , 4 6 6   GH C HM O $2 8 5 , 3 2 6   10 7 % $3 0 5 , 3 9 9   $335,030 $6 , 8 9 9 , 8 0 7   $7 , 6 4 7 , 4 7 3   $7,287,673 20 1 3  AW C  Fu l l y  In s u r e d  Pr e m i u m $7 , 6 4 7 , 4 7 3   EHCW Funding$7,287,673 Th i r d  Pa r t y  Ad m i n  (T P A ) $139,844 Pr e s c r i p t i o n  Dr u g  Me m b e r s h i p $12,000 St o p  Lo s s  Pr e m i u m $780,003 Ma x i m u m  Cl a i m s  Li a b i l i t y $5,827,502 Su b  To t a l $6,759,349 Pr o g r a m  Ma n a g e m e n t  Fe e  (P M F * ) $193,294 To t a l  EH C W  PP O  Co s t s $6,952,643 *P M F  In c l u d e s :    EA P ,  CO B R A ,  Underwriting, Client Support,  Em p l o y e e  Su p p o r t ,  Co m p l i a n c e ,  Online Administration, On  Li n e  En r o l l m e n t ,  Un i f i e d  Bi l l i n g ,  Wellness Program. DI.B Page 14 of 26 20 1 3 A c t i v e P P O P r e m i u m Co m p a r i s o n ( E s t i m a t e s ) AW C  Fu l l y  In s u r e d   Pr e m i u m  (C o s t ) EH C W  Pa r t i a l l y  Self‐Funded  Fu l l y  In s u r e d  Equivalents  (M a x  Li a b i l i t y ) Mo n t h l y Mo n t h l y Em p l o y e e $6 9 9 $5 9 9 Em p l o y e e & S p o u s e $1 , 4 0 4 $1 , 2 5 8 Em p l o y e e & C h i l d $1 , 0 4 5 $9 2 9 Em p l o y e e & C h i l d r e n $1 , 3 3 0 $1 , 2 5 8 Em p l o y e e , S p o u s e & C h i l d $1 , 7 4 9 $1 , 5 2 8 Em p l o y e e , S p o u s e & Ch i l d r e n $2 , 0 3 5 $1 , 8 8 8 13 DI.B Page 15 of 26 AGENDA BILL APPROVAL FORM Agenda Subject: Return to Work Opportunities (20 Minutes) Date: July 24, 2012 Department: Administration Attachments: PowerPoint Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:July 30, 2012 Item Number:DI.C AUBURN * MORE THAN YOU IMAGINEDDI.C Page 16 of 26 Workers’ Compensation Stay at Work Reimbursements Department of Labor & Industries Return to Work Opportunities DI.C Page 17 of 26 Workers’ Compensation Provides medical aid and time loss benefits for on-the-job injuries Time off work increases an employer’s workers’ compensation insurance rate Earlier an employee returns to productive work the faster an employee recovers 2011 State legislature passed the “Stay at Work Program” DI.C Page 18 of 26 Stay at Work Program Reimburses an employer 50% of an employee’s “light- duty” or “transitional work” wages –Up to 66 days or $10,000 per claim Reimburses for some expenses –Training fees up to $1,000 (tuition, books or supplies) –Tools up to $2,500 (special wrench or keyboard trey) –Clothing up to $400 (steel toe boots) Note: Can’t be a cost we would normally incur when hiring workers to do the same job. DI.C Page 19 of 26 Eligibility Qualifications Employer on record for the injured Develop a light duty or transitional work plan Obtain Dr.’s approval for the light duty job Up to date on L&I premiums DI.C Page 20 of 26 City’s Process Admin Policy & Procedure 200-72 Light Duty –HR will work with the injured employee, supervisor, and physician at identifying productive light duty work within the injured employee’s restrictions –Coordinate with the Finance Dept regarding paperwork necessary for the reimbursement process Copies of time cards Remittance of payments DI.C Page 21 of 26 AGENDA BILL APPROVAL FORM Agenda Subject: Civic Organization Dues (20 Minutes) Date: July 24, 2012 Department: Administration Attachments: Civic Organization Dues Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:July 30, 2012 Item Number:DI.D AUBURN * MORE THAN YOU IMAGINEDDI.D Page 22 of 26 Cit Th Cit t th t Question Posed to Surrounding Jurisdictions: Does your jurisdiction pay for Councilmember to attend various civic group meetings that are not directly part of their job requirements as councilmembers, such as dues, lunches and fees? Jurisdiction:Response: City of Orting Normally we do not. There may occasionally be something special though. City of Gig Harbor We don’t pay for dues or any other costs associated with non-city business. There is no policy in place to that effect, it’s just “always the way it’s been done.” No one has asked to my knowledge. City of Bonney Lake We’ve paid for 1 membership for the Mayor to join a service club (Young the Rotary, Johnson the Kiwanis). However, that does not extend to Councilmembers. If a councilmember were appointed to represent the Council at a service club luncheon or dinner, their meal would be reimbursable by the City. However, the councilmember would need to be sent/designated by the Council to represent them, they could not simply go on their own initiative and expect to be reimbursed City of DuPonty of DuPont The City of DuPont does not pay for expenses that are note y of DuPont does no pay for expenses at are no related to City Business. It is addressed briefly in our purchasing policies. City of Steilacoom No policy on this but: 1. If it is part of or can be linked to official duties, then yes. (AWC, PCRC, training, etc.) 2. If it is simply because they want to attend a civic meeting, not generally. (Kiwanis, Rotary, etc.) (As a specific example, for Kiwanis, the Town pays for my membership along with other staff but does not pay for the Mayor and Councilmembers who are also members. None of us put in for reimbursement for meals, etc). If requested, we would also use a facts and circumstances type test to determine if we would reimburse for any meeting, etc. Our council is paid on a per month amount regardless of the number of meetings they attend, including civic meetings, so that portion of the question is mute. DI.D Page 23 of 26 councilmember does self. We not have City of Tacoma It depends on what it is, but we typically will pay for the “event/lunch” with the City Council member’s City credit card and get a receipt. City of Federal Way We do not pay for any of it. City of Puyallup Chamber of Commerce luncheons and the like, yes, the city pays for those. In the past we did pay duessuch as Women in Municipal Government memberships. If a councilmember wanted to attend a seminar that costs $$, the city has generally looked at that as an expense related to their duties as elected officials, and paid for those. Town of Carbonado Everything is approved by council on an individual basis. City of Fircrest We really have not had any requests for reimbursements. Also, it is not mentioned in their Council Rules. It would seem if it is not related to their job requirements as a Councilmember, we would have trouble justifying payment for it. City of Sumner I believe the Mayor and some staff attend the Rotary luncheons each week but they must pay themselves as I have never been asked to process reimbursements for those. City of Mercer Island We pay for chamber lunches and Suburban Cities Association dinners, usually because the bill the City directly when a councilmember does not pay for them self. We do not have a not pay for them do a specific policy for Councilmembers, they just follow the City policy City of Algona Yes we do, if they are representing the City of Algona. If they go for themselves, we don’t. City of Des Moines If dues, lunches or fees do not pertain to their jobs as councilmembers, we do not pay for them. I do not believe that any of them attend the Rotary Club meetings and that is about the only civic group meeting in Des Moines. Even if those things DO pertain to the councilmember’s activity, they seldom get reimbursed, by choice. Town of Yarrow Point No. We do not have a budget set up to cover Councilmember's various hobbies outside of their direct job requirement. City of Snoqualmie We do not City of Yakima The City pays/reimburses for lunches/dinners when they are invited or attend as a Council Member for civic functions other than fundraisers. City of Seatac No formal written policy, but practice has been for the City to only pay for lunches and dues for organizations related to official city business DI.D Page 24 of 26 City of Samamish We do pay for lunches when our councilmembers attend civic group meetings, however, we have no written policy authorizing this City of Renton Does not pay for any type of Service Clubs. DI.D Page 25 of 26 Question Possed:  Does your city pay for dues or lunches for staff to attend various civic group meetings  such as Rotary Club or Lions Club. City Response Federal Way We {City of Federal Way} do not have a policy preventing reimbursement, however staff, excluding Councilmembers, have not ever submitted a reimbursement request for dues or lunches associated with civil groups” Fife We have no policy to cover it - While we don’t have a set policy, we have paid for dues and lunches for a staff person to be a member of Rotary and Kiwanis…I think Lions Club in the past as well Kent The City of Kent does pay the cost for certain staff to attend local civic club meetings (cost can include dues and meals). Our Police Assistant Chiefs and Police Commanders have his benefit specified in their labor contract. No other employees have this benefit. Puyallup If it is City Related they will pay for staffs lunch  ‐ they will also pay dues upon approval.  Renton Renton Does not pay for any type of service clubs.  Sumner We do not Tukwila In the past, we have paid for Rotary, but it wasn’t without debate. Currently, no Councilmembers are involved in Rotary or Lion’s (at least that the City is paying for). I do know some staff members are though, and I believe the City is paying for them. Specifically the concern with Rotary is that it is quite expensive when compared to other organizations. DI.D Page 26 of 26