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LE 7, 5. ./ 0.7`j 6/11 ,,Vo ,:C 20
ORDINANCE NO. o76,a0
AN ORDINANCE amending the 1979 regular budget
of the City of Port Angeles, providing for
increases to City health plans.
WHEREAS, Blue Cross of Washington /Alaska, the medical
insurance carrier for the City of Port Angeles has Petitioned
the City for reimbursement of certain medical insurance permiums
and,
WHEREAS, the request for reimbursement is consistent with
a "minimum /maximum" agreement between the City and its carrier
and,
WHEREAS, the enactment of Public Law 95 -555, Pregnancy
Discrimination Act, requires the City to provide its employees
and dependents with coverage for medical expenses arising from
Pregnancies, and
WHEREAS, funds for these purposes are not provided in the
City budget and were not reasonably forseeable at the time of
adoption of the regular City budget,
NOW, THEREFORE, be it ordained by the Council of the City
of Port Angeles that in order to meet increased health plan costs,
the 1979 budget appropriations for the following City Departments
and funds are increased as indicated:
General Fund
(a) City Manager
(b) City Attorney
(c) City Planner
(d) Fire
(e) Police
(f) Public Works Admin.
(g) Street
(h) Engineering
(i) Parks & Rec. Admin.
(j) Pool Division
(k) Parks Division
(1) Sr. Citizens Center
(m) Cemetery Division
(n) Admin. Serv. Adminis.
(o) Accounting Division
(p) Municipal Court
(q) Finance Division
$ 173.00
360.00
296.00
1,856.00
274.00
514.00
2,231.00
1,031.00
154.00
154.00
1,438.00
105.00
276.00
296.00
1,209.00
364.00
516.00
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(r) Personnel /City Clerk Div. 206.00
Total, General Fund $11,453.00
Light Fund
Water Fund
Solid Waste Fund
Sewer Fund
Equip. Rental Fund
Firemens Pension Fund
Grand Total
$ 2,697.00
1,547.00
1,203.00
924.00
507.00
42.00
$18,373.00
PASSED by the City Council of the City of Port Angeles
at a regular meeting of the Council held on the /7u day of
, 1979.
ATTEST:
Marian C. Parrish, City Clerk
APPROVED AS TO FORM:
Craig . Miller, City Attorney
P
BLISHED:
/q79
./
MEMO: April 13, 1979
TO: Ken Whorton, Mayor Haguewood and Council Members
FROM: Rob Orton, Director of Finance and Administrative Services
RE: Medical Program Rate Adjustments
This memorandum concerns certain adjustments which the City must undertake
relative to Blue Cross Health Insurance programs presently in effect for City
employees.
First, the Council will recall that in April 1978, Blue Cross made a 28.3%
medical rate adjustment to City plans. In order to defer a portion of the
increase, we negotiated a "minimum /maximum" contract under which the City
accepted an 18% increase. The balance was deferred with the speculation that
our plan might recover from large "shock" claims in 1977 - early 1978 and im-
prove its fiscal condition.
As I reported late last year, this did not occur.
Under the minimum /maximum agreement, Blue Cross is entitled to recover plan
losses up to the 10.3% which was deferred. (Actually, our coverages showed
a greater loss than the 10.3% would indicate).
Nonetheless, our liability is $10,327. The attached ordinance authorizes
the appropriate budget adjustments.
Secondly, Public Law 95 -555, which amends the Civil Rights Act to prohibit sex
discrimination on the basis of pregnancy, goes into effect on April 29,.1979.
In brief, the law now compels employers to treat pregnancy, childbirth, and
related absences just as they would other disabilities.
More importantly, however, is the fact that employer's existing medical
coverages must be broadened to cover medical expenses from pregnancy related
cases.
In order to administer the act equitably, both female employees, and female
dependents of male employees must be covered equally.
The cost to broaden our plan to include this coverage in 1979 (April -
December) is $8,046.
The attached ordinance also addresses this appropriation.
Thank your
cc: M. Parrish
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