045-19 - Ordinance - Providing Additional Benefits Offered for Non-Union EmployeesORDINANCE NO. 045.19
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
PROV D NG ADDIT ONAI BENEF TS OFFERED FOR NON.UN ON
EMPLOYEES; PRov DING FoR sEvERABlLlrY AND PUBLICAT oN; AND
SETT NG AN EFFECTIVE DATE.
WHEREAS, the City of Port Orchard has established certain employment benefits for non-
union employees; and
WHEREAS, the City Council recognizes the importance of a healthy workforce and
encourages all employees to participate in the City's wellness efforts; and
WHEREAS, the City recognizes that the insurance needs of each employee vary from
employee to employee; and
WHEREAS, the Association of Washington Cities (AWC) offered a high deductible medical
insurance option under both Regence and Kaiser Permanente plans; and
WHEREAS, the City Council has determined offering the high deductible plan option to
non-union employees is in the city's best interest; now, therefore,
THE C TY COUNC L OF THE C TY OF PORT ORCHARD, WASHINGTON, DO ORDA N
AS FOLLOWS:
SECTION 1. Effective Janua ry L, 2020, non-union represented employees will be eligible
to enroll on the AWC Regence High Deductible Medical Plan orthe AWC Kaiser Permanente High
Deductible Medical Plan.
SECT ON 2. Effective January L,2O2O, employees choosing to enroll on a high deductible
medical plan will receive benefits as provided for in Appendix A, attached.
SECT ON 3. The benefits provided under Ordinance No. O26-L9, Appendix A, related to
the part-time employees as defined in personnel policies wilt remain in effect, requiring a targer
employee share of the medical insurance premium even if an employee setects one of the high
deductible medical plans offered by the City.
SECTION 4. This ordinance shall not chan ge or limit other benefits not listed that covered
employees currently have through their employment with the City, inctuding but not timited to
those provided in ordinance No.010-19 and ordinance No.02G-19.
Ordinance No. 045-19
Page 2 of 4
SECTION 5. Severabilitv. lf an y section, sentence, clause or phrase of this ordinance
should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this Ordinance.
SECTION 6. Publication This Ordinance shall be published by an approved summary
consisting of the title.
SECT ON 7. Effective Date. This Ordinance shalltake effect and be in full force and effect
five days after publication, as provided by law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the Clerk in authentication of such passage this 22nd day of October 2OLg.
Robert Put nsuu, Mayor
ATTEST:SPONSOR:
Brandy Rinearson, MMC, City Clerk nCl auson, Counci lmember
APPROVED AS TO FORM:
Cates, City Attorney
PUBLISHED:
EFFECTIVE DATE:
November 1, 2OL9
November 6, 2OL9
APPENDIX A
For those full-time eligible employees, as defined in personnel policies, who are offered and
enrolled in the AWC Regence High Deductible medical plan or the AWC Kaiser Permanente
High Deductible medical plan:
The employer shall establish and enroll employees in an HRA VEBA account stating with their
first covered month. The employee shall be responsible for all fees charged by HRA VEBA for
his/trer respective account. The employer shall deposit for those employees that meet the criteria
above, on a monthly basis, amounts as established below.
HRA VEBA Contributions per month
Regence High Deductible Medical PIan 2020 202r
Employee Only
Emp/Spouse
Employee Spouse / I Dependent
Employee Spouse I 2 Dependent +
Employee and I Dependent
Employee and 2 Dependents
Employee and 3 Dependents
s 100
s200
$300
$400
$200
$300
$300
$ 100
$200
$300
$400
$200
$300
$300
Kaiser Permanente High Deductible
Medical Plan
2020 2021
Employee Only
Emp/Spouse
Employee Spouse / I Dependent
Employee Spouse I 2 Dependent +
Employee and I Dependent
Employee and 2 Dependents
Employee and 3 Dependents
$6s
$1 s0
$ 180
$2l s
$100
$ l2s
$11s
$6s
$1 s0
$ 180
$21s
$ 100
$12s
$1 1s
Well City Incentive Program:
For those eligible employees who are offered and enroll in the AWC Regence High
Deductible medical plan or the AWC Kaiser Permanente High Deductible medical plan:
The City participates in the AWC Well City Wellness Program. Each year AWC awards a
discount off medical premiums for cities that participate and receive the Wellness Award. The
City encourages employees to participate in wellness activity throughout the year to promote
health and wellness. Those employees who are enrolled in the AWC Regence High Deductible
medical plan or the AWC Kaiser Permanente High Deductible medical plans during January l st
of the awarded year will be eligible for a wellness incentive bonus to be deposited to their
established HRA VEBA accounts. If an employee doesn't have an HRA VEBA account already
established, the employer shall establish and enroll said employee in an HRA VEBA of the
City's choosing. The employee shall be responsible for all fees charged by HRA VEBA for
his/her respective account.
Ordinance No. 045-19
Page 4 of 4
The employer shall deposit $ 100 for each eligible employee as described above on an annual
basis.
Employee Premiums for AWC Regence and Kaiser Permanente High Deductible
Medical Plans
Full-time employees, as defined in the City's personnel policies, who choose to enroll on one of
high deductible medical plans offered by the City will not be required to pay aportion of the
insurance premium toward such coverage. The employee, if they qualify and attest to their
eligibility for such an account, will be able to make a payroll deduction contribution into a
Health Savings Account (HSA) offered by avendor chosen by the City.
Employees working less than 30 hours a week will share in the cost of their insurance in
accordance with the City's personnel policies.
HDHP proposal for t/llzo
as of lOl8h9
AWC Regence Medical Plans
HealthFirst 250 #
Enrolled
AWC Kaiser Medical Plans
Kaiser 200
Employee
Share City Share
HRA
VEBA
TotalCost
To CiW
Employee Only 5 59.63 602.88 25.00 627.88
Employee/Spouse 2 118.26 1 ,195.70 45.00 1,240.70
EElSp/1 Dep 1 148.17 1,498.21 50.00 1,548.21
EE/So/2 Deo 5 178.09 1,800.72 60.00 1,860.72
EE+1Dep 1 89.54 905.39 20.00 925.39
EE+2Dep 1 1 '19.46 1,207.90 20.00 1,227.90
EE+3Dep TBD 1 19.46 1,207.90 10.00 1,217.90
#
Enrolled
Proposalto add High Deductible
Proposalto add H h Deductible
Oualifiying Employ€es snrolled on a High [reduc{ible Health Plan could open a Health Savings Account (HSA) for individual contributions up to IRS Maximum ($3,550
individual, $7,100 family, plus owr age 55 catch up ol $1,000 in 2020)
2020 Kaiser Premiums are approximate. AWC has announced percentage increase but not adual 2020 calculations for Kaiser.
Employee
Share City Share
HRA
VEBA
TotalCost
To Citv
Employee Only 6 66.89 676.34 25.00 701.34
Emolovee/Soouse 12 134.34 1,358.35 40.00 1,398.35
EE/Sp/1 Dep 6 167.57 1,694.33 55.00 1,749.33
EE/Sp/2 Dep 12 195.04 1,972.09 60.00 2,032.09
EE+1Dep 3 100.12 1,012.32 10.00 1,022.32
EE+2Dep 2 127.59 1,290.08 15.00 1,305.08
EE+3Dep TBD 127.59 1,290.08 15.00 1,305.08
Employee
Share
AWC
Regence
HDHP HRA VEBA
TotalCost
To Citv
0 516.83 100.00 616.83
0 1,040.03 200.00 1,240.03
0 1,302.38 300.00 1,602.38
0 1.517 .18 400.00 1,917.18
0 779.18 200.00 979.18
0 993.98 300.00 1,293.98
0 993.98 300.00 1,293.98
Monthly
Sgyinre to
Citv
84.51
158.32
146.95
114.91
43.14
11.10
11.10
Employee
Sharc
AWC Kaiser
HDHP HRA VEBA
TotalCost
To Citv
0 551.21 65.00 616.21
0 1,091.36 150.00 1,241.36
0 1,367.38 180.00 1,547.38
0 1,643.40 215.00 1,858.40
0 827.23 100.00 927.23
0 1,103.25 125.00 1,228.25
0 1 ,103.25 1 15.00 1,218.25
Monthly
Savings
(Cost) to
ciw
City Savlngs
over Health
First 250
11.66 85.'13
(0.67)156.99
0.82 201.95
2.31 173.68
(1.8s)95.09
(0.36)76.83
(0.36)86.83
NOTICE OF CITY OF PORT ORCHARD
ORDINANCE
The following is a summary of an Ordinance approved by the Port Orchard City Council at their regular Council
meeting held October 22, 2019.
ORDINANCE NO. 045-19
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
PROVIDING ADDITIONAL BENEFITS OFFERED FOR NON-UNION
EMPLOYEES; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND
SETTING AN EFFECTIVE DATE.
Copies of Ordinance No. 045-19 are available for review at the office of the City Clerk of the City of Port Orchard.
Upon written request, a statement of the full text of the Ordinance will be mailed to any interested person without
charge. Thirty days after publication, copies of Ordinance No. 045-19 will be provided at a nominal charge.
City of Port Orchard
Brandy Rinearson
City Clerk
Published: Friday, November 1, 2019