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HomeMy WebLinkAboutOrdinance No. 2692-2013Suggested by: Administration CITY OF KENAI NO. 2692 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE SECTION 23.40.120, MEDICAL AND HOSPITAL INSURANCE TO SPECIFY THAT EMPLOYEES SHALL PAY A PERCENTAGE OF MEDICAL AND HOSPITAL INSURANCE PLAN COSTS RECOMMENDED BY THE CITY MANAGER AND APPROVED BY THE CITY COUNCIL. WHEREAS, Kenai Municipal Code 23.40.120, Medical and hospital insurance, currently provides that the City shall pay all medical and hospital (hereinafter collectively "medical ") insurance premiums for employees; and, WHEREAS, medical insurance costs for the City, as with other employers, has increased substantially over the last few years; and, WHEREAS, it is anticipated the employee medical insurance costs will continue to increase over the next several years; and WHEREAS, it is reasonable, and in line with other local municipal employers, to require employees to pay a percentage of medical insurance premiums; and, WHEREAS, the percentage paid by employees will be determined annually by the Council after a recommendation by the City Manager if this ordinance is adopted. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form: That this is a Code ordinance. Section 2. Amendment of Section 23.40.120 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.120 Medical and hospital insurance, is hereby amended as follows: 23.40.120 Medical and hospital insurance. Medical and hospital insurance shall be provided by a group policy for all employees with a percentage of plan costs FALL PREMIUMS] paid by the City and a Percentage paid by the employee unless the employee declines such coverage. Life, major medical, dental, and vision insurance are included as part of group insurance. The percentage of plan costs paid by the City and employees, respectively, shall be the City Manager. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2692 -2013 Page 2 of 2 Section 3. Severabilitv: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1. 15.070(f), this ordinance shall take effect July 1, 2013. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2013. AlnA S dr Modigh, ity Clerk Approved by Finance:! I U PAT PORTER, MAYOR Introduced: May 1, 2013 Adopted: May 15, 2013 Effective: July 1, 2013 New Text Underlined; ]DELETED TEXT BRACKETED] "Village with a Past, Gity with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 the cityW Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 V To: Rick Koch, City Manager From: Terry Eubank, Finance Director I Date: April 24, 2013 Re: Ordinance 2692 -2013 The FYI Operating Budget included a proposal to require employees with no medical insurance dependent coverage to pay 8.5% of their health care costs, the same percentage paid by any employee with dependent coverage. The change in KMC 23.40.120 is needed to implement this proposal.