HomeMy WebLinkAbout1994 Ordinance No. 002ORDINANCE NO. &
SERIES OF 1993/1994
BY AUTHORITY
COU'iCIL BILL NO. 66
INT,LODUCED BY COUNCIL
MEMBER HABENICHT
AN ORDINANCE AUTHORIZING THE TERMINATION OF AN AGREEMENT KNOWN
A5 THE COLORADO MUNICIPALITIES EMPLOYEES' WELFARE BENEFIT TRUST.
WHEREAS, the City of Englewood, Colorado entered into the Colorado
Municipalities Employees' Welfare Benefit Trust (the Trust) in 1979 by the passage of
Ordinance No . 53, Series of 1979 ; and
WHEREAS, the purpose of the Agreement wu to reduce the cost of administration of
se1f insurance plans; and
WHEREAS, the Trust is being terminated t.y at least 2/3 of the members of the trust
effective January 1, 1994 this purpose is better attained on an inde~ndent basis;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS :
~-The Englewood City Council hereby authorizes termination of the Colorado
Municipalities Employees' Welfare Benefit Trust Agreement at the earliest possible time
consistent with the AgreemenL
1993.
1994.
Introduced, read in full, and passed on first reading on the 20th day of Dec ember,
Published as a Bill for an Ord.inance on the 23rd day of December, 1993.
Read by title and passed on final reading on the 3rd day of January, 1994 .
Published by title as Ordinance No. ,t....Series of 1994, on tl)e 6th day of January,
ATTEST :
ca~~(·,Vi,U a,~/
Patricia H. Crow, City Clerk
I, Patricia H. Crow, City Clerk of the City of Englewood , Colorado, aereby certify that the
above and foregoing is a true copy of the Ordinance passed on final reading and published
by title as Ordinance No. al, Series of 1994 . . . , a
0'"0-Uc.t v l.;f,I · ,£ ,._,,, r
Patricia H . Crow
-1-
Date
De ce mber 20, 1993
I ITIATED BY
STAFF SOURCE
COUNOLGOAL
COUNCIL COMMUNICATION
Agenda Item
12 f
Subject Colorado Municipalities
Trust Withdrawal
Depa rtm ent of Administrative Services
Randie Barthlome, Director of Administrative Services
NI A
ISS UE/ACTION PROPOSED
Staff seeks Council support for a bill fo r an ordinance approving the City 's withdrawa l fr om
participation in the Colorado Municipalities Empl oyees· Welfa re Benefit Trust.
PREVIOUS COUNCIL ACTION
On December 19, 1979, Englewood City Council approved , by Ordinance #53 , the participa·
ti on of the City of Englewood into th e afo resaid Benefit Trust Agreement.
BACKGROU N D
Under Col orado H ouse Bill 93·1 241 , self-funde d Multiple Employe r Health Trusts becam e
subject to regulati on by th e di vis ion of insuranc e. Ac ting upon th e advice of the administra·
tor , Byerly and Company, the Trust's present members• Englewood , Fort Morgan, Gle n•
da le , Littl eton , and Longmont · have ag re ed in prin ciple to terminate the Trust effective Jan•
uary 1, 1994. This proposed action is being so ught in anticipation of th e formal d isso luti on
process.
In lieu of th e Trust, Byerl y and Company ha s drafted a pros pec ti ve o p~rating agree ment
whi ch is intended to update and more precisely docum~nt the actual o perations of the pres·
en t arrange ment. This docum ent eliminates all references to a Trust per se, as well as other
p rovisions whi ch might be co nstrued as being chara cteri sti c of a Multiple Em pl oyer Heal th
Trust.
However, after careful analysis, it is staff's recommendation not to participate in the new
propoeed arrangement at this time. Continued membership will not provide the reduced A ·
administrative costs that were originally contemplated upon formation of the Colorado Mu-W
nidpalities Employees' Welfare Benefit Trust. Rather, it is believed that an equivalent or
higher level of co s t efficiencies can be achieved by maintaining our ability to act indepen-
dently in the design and administration of our health ?rograms.
STAFF ANALYSIS
Council approval is being sought in order to formally re cognize the pending termination oi
the Trust. effectiv e January 1, 1994 .
FINANCIAL IMPACT
We will continue to pursue any and all opportunities to operate and administer
Englewood 's health and welfare programs by the most cost-effective means, which would
incl ude alternative inter-governmental cooperative arrangements. Examples of recent activi-
ties which staff has initiated independent of the Trust include:
I. N egotiation of the renewal of long-term disability coverage for 1994 and assumption of
administrative responsibili ti es for this program. This provided savings of $3 ,000 while
the cov erage was renewed at 1993 premium levels.
2. Implementation of a prefe rred provider-type dental arrangement with Delta Dental and A
revision of the prescription drug benefit, effective January 1, 1994. These change5 are W
anticipated to produce a combined savings in the range of $22 ,000 to $53,000 for 1994.
3. Negotiation of a discount arrangement with a hospital which withdrew from participa ..
tion in th e Ethix /Sloans Lake PPO. Although future savings will depend on the isage of
this facility, discounts during the last three years have ranged from $5,000 to ~l :i,000 .