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Home My WebLink AboutO-2004-2779-A e e ORDINANCE NO. 2004-2779-A AN ORDINANCE AMENDING ORDINANCB NO. 2004-2779, AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMBNT WITH JIlJMAHA INSURANCE COMPANY, FOR ADMINISTRATIVE SERVICES OF THE CITY'S MEDICAL PLAN, BFFECTlVE JAHl1ARY 1, 2005, ADOPTING nHEALTH SERVICE PLAN DESIGNn OPTIONS, APPROVING AN EMPLOYEB CONTRIBUTION SCHEDULE, APPROPRIATING THE SUM OF $130, 000 . 00 , TO FUND SAID ADMINISTRATIVE SERVICES AGREEMBNTS, MAlCING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPBN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes an agreement with Humana Insurance Company, for administrative services of the City's Employee Medical Fund Plan, a copy of which agreement is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum of $130,000.00 from City of La Porte Employee Health Services Fund Account No. 014-6144-515-6011, to fund said administrative services agreement for the 2005 calendar year, subject to network cost guarantee. Section 2. The City Council approves and adopts the four plan design options recommended by Humana Insurance Company, for the City of La Porte Employee Medical Fund (Coverage First 1500, Coverage First 1000, PPO 500 AND PPO 300), in form attached hereto and incorporated herein by this reference. Council also approves and adopts the Employee Contribution Schedule by Plan Design effective January 1, 2005, with twenty percent (20%) of plan cost shared with employees, in form attached hereto and incorporated herein by this reference. e e Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 25th of October, 2004. ,.... ,..:' ........... -:: By: CITYrf~ .LA ~O~TE ~~~ Alton E. Porter, Mayor " ATTEST: . ~0tuwJ <4ft Mart: a A. Gillett, City Secretary APPROWD" ~ " ~~M . ~Askins, City Attorney 2 . e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 10-25-04 Appropriation Requested By: ~~herri Samp~on Source of Funds: Medical Fund Department: BURIan Reliouruli Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: $3,403,235 Exhibits: Ordinance 2004-2779-A Amount Requested: $3,403,235 Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION This amendment to Ordinance 2004-2779 would update the emplovee contribution schedules beginning January 01, 2005. The City of La Porte is self-funded for medical benefits for employees, retirees and their dependents. Due to the rising cost of health care services Council approved a 3% increase of the City's contribution for the medical fund for retirees and employees as part of the 2004-2005 budget. This change still leaves approximately 1.2 million dollars in plan expenses to be paid by the employees and retirees. The City has been subsidizing between half a million and a million dollars a year for numerous years and can no longer continue. Any dollars not funded by the members of the plan will need to be paid from the Medical Fund or the General Fund. The Welch Company, The Chapter 172 Board, and Staff, recommend adopting new contribution schedules advocating cost sharing for all active employee plan members. Numerous scenarios have been provided to City Council Members to offer alternatives to the original proposal. The effects on fund balance have also been provided. Action Required bv Council: Amend Ordinance 2004-2779 authorizing redesign ofthe employee contribution schedules of the medical plan. ~14 De - - -ozelle, CIty Manager JIl!)?/ Or Date { . e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 10-11-04 Appropriation Requested By: Sherri Samp~on Source of Funds: Medical Fund Department: BURl3R Reliourc:eli Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: $3,403,235; Exhibits: Ordinance 2004-2779-A Amount Requested: $3,403,23; Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION This is a companion to item #12. This amendment to Ordinance 2004-2779 would update the emoloyee contribution schedules beginning January 01,2005. The City of La Porte is self-funded for medical benefits for employees, retirees and their dependents. Due to the rising cost of health care services Council approved a 3% increase of the City's contribution for the medical fund for retirees and employees as part of the 2004-2005 budget. This change still leaves approximately 1.2 million dollars in plan expenses to be paid by the employees and retirees. The City has been subsidizing between half a million and a million dollars a year for numerous years and can no longer continue. Any dollars not funded by the members of the plan will need to be paid from the Medical Fund or the General Fund. The Welch Company, The Chapter 172 Board, and Staff, recommend adopting new contribution schedules advocating cost sharing for all active employee plan members. Numerous scenarios have been provided to City Council Members to offer alternatives to the original proposal. The effects on fund balance have also been provided. This ordinance has a "blank" which will be filled in with your decision Monday night. Action Required bv Council: Amend Ordinance 2004-2779 authorizing redesign of the employee contribution schedules of the medical plan. ~~e:aW~~~ · 1.1{~1 ~ ORDDlAJJCB NO. 2004-2779-A It 10,\1\0 AN ORDINANCB AMENDING ORDINANCE NO. 2004-2779, AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT WITH JlUMANA INSlJRAHCE COMPANY, FOR ADMINISTRATIVE SERVICBS OF THE CITYIS MEDICAL PLAN, BFFECTIVE JAHl1ARY 1, 2005, ADOPTING DHEALTH SERVICE PLAN DESIGN. OPTIONS, APPROVING AN BMPLOYEE CONTRIBUTION SCHEDULB, APPROPRIATING THE SUM OF $130,000.00, TO FUND SAID ADMINISTRATIVE SERVICBS AGREEMENTS, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPBN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes an agreement with Humana Insurance Company, for administrative services of the city's Employee Medical Fund Plan, a copy of which agreement is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum of $130,000.00 from City of La Porte Employee Health Services Fund Account No. 014-6144-515-6011, to fund said administrative services agreement for the 2005 calendar year, subject to network cost guarantee. Section 2. The City Council approves and adopts the four plan design options recommended by Humana Insurance Company, for the City of La Porte Employee Medical Fund (Coverage First 1500, Coverage First 1000, PPO 500 AND PPO 300), in form attached hereto and incorporated herein by this reference. Council also approves and adopts the Employee Contribution Schedule by Plan Design effective January 1, 2005, with % of plan cost shared with employees, in form attached hereto and incorporated herein by this reference. . e Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this of October, 2004. CITY OF LA PORTE By: Alton E. Porter, Mayor ATTEST: Martha A. Gillett, City Secretary APl247/ L Kriox W. Askins, City Attorney 2