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HomeMy WebLinkAbout2014-0603 Council Agenda PACKET CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any nern on the Agenda, unless it is the subject of a public Bearing and the record is closed. Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda- AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL June 3, 2014 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Study Session of May 19, 2014 3. Executive Session of May 19, 2014 4. Business Meeting of May 20, 2014 VI. SPECIAL PRESENTATIONS & AWARDS 1. Annual Presentation by the Band Board 2. Proclamation of June 14, 2014 as Flag Day in Ashland VII. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Liquor License Application for Kevin Broadie dba Saltworks, LLC 3. Ambulance operator's license renewal 4. Award of contract to apparent low bidder for the Lori Lane Alley Connection project 5. A resolution establishing rates for the Ashland Municipal Airport and repealing Resolution 2013 - 16 6. Ratification of five-year labor contract with the Laborers' International Union of North America Local No. 121 7. A resolution exercising the Power of Eminent Domain for the Walker Avenue Safe Routes to School project COUNCIL MEETINGS ARE BROADCAST LNE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LNE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US VIII. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. All hearings must conclude by 9:00 p.m., be continued to a subsequent meeting, or be extended to 9:30 p.m. by a two-thirds vote of council {AMC §2.04.050}) 1. Public Hearing and approval of a resolution titled, "A resolution adopting a Miscellaneous Fees and Charges document and repealing prior fee resolution 2013-17" IX. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] X. UNFINISHED BUSINESS None XI. NEW AND MISCELLANEOUS BUSINESS 1. Adoption of the City's self-insurance health plan for the plan year July 1, 2014 through June 30, 2015 2. Update from the Housing and Human Services Commission regarding the development of the Strategic Social Services Grant review XII. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. Second reading by title only of an ordinance titled, "An ordinance amending AMC Chapter 2.26, Firewise Commission to Ashland Wildfire Mitigation Commission" 2. First reading by title only of an ordinance titled, "An ordinance amending the City of Ashland Comprehensive Plan to add a Normal Neighborhood Plan designation to Chapter II [Introduction and Definitions], change the Comprehensive Plan map designation for approximately 94 acres of land within the City of Ashland Urban Growth Boundary from Single Family Residential and Suburban Residential to the Normal Neighborhood Plan designations, and adopt the Normal Neighborhood Plan framework as a support document to the City of Ashland Comprehensive Plan" and First reading by title only of an ordinance titled, "An ordinance amending the Street Dedication Map, Planned Intersection and Roadway Improvement Map, and Planned Bikeway Network Map of the Ahsland Transportation System Plan for the Normal Neighborhood Plan area, and amending Street Design Standards within the Street Standards Handbook to add a new Shared Street classification" XIII. OTHER BUSINESS FROM COUNCIL MEMBERSIREPORTS FROM COUNCIL LIAISONS XIV. ADJOURNMENT OF BUSINESS MEETING In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST LIVE ON CHANNEL 180. VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US Minutes for the City Council Study Session May 19, 2014 Page I of 1 MINUTES FOR THE STUDY SESSION ASHLAND CITY COUNCIL Monday, May 19, 2014 Siskiyou Room, 51 Winburn Way Mayor Stromberg called the meeting to order at 5:31 p.m. in the Siskiyou Room. Councilor Morris, Marsh, Lemhouse, Slattery, and Rosenthal were present. Councilor Voisin arrived at 5:34 p.m. 1. Look Ahead review City Administrator Dave Kanner reviewed items on the Look Ahead. City Attorney Dave Lohman addressed the medical marijuana ordinance coining before Council June 17, 2014 and distributed a document of possible marijuana facility requirements for Council to consider. 2. Recommendation of the Downtown Beautification Committee to remove the kiosk from the Plaza City Administrator Dave Kanner explained there were three options for the kiosk at the Plaza. One would leave it where it was currently, the second was remove the structure and not replace it, and the third was having staff suggest alternative locations to Council. Replacing the kiosk roof was scheduled for 2018- 2019 and currently replacing the roof now or removing the structure would cost approximately $4,000. Council directed staff to develop alternatives for the kiosk, post the topic on the website for discussion, and bring the results to a future meeting for further discussion. 3. Discussion of options for local taxation of marijuana City Administrator Dave Kanner explained Council needed to provide direction on whether to draft an ordinance taxing marijuana. If Council was interested in the ordinance, he recommended a gross receipts tax for easier administration. Ballot measure language contained a local preemption that the legislative delegation would have to grandfather Ashland in if the measure passed recreational marijuana use. Staff also recommended the ordinance indicate marijuana in general and not distinguish it from medical marijuana. City Attorney Dave Lohman explained the ordinance could have a two-tiered system regarding medical and recreational marijuana or set the rates by resolution. Council wanted options that taxed medical marijuana at 0% or a nominal amount and up to 25% for recreational marijuana and information on taxing growers, producers, and distributors. Council also wanted legal analysis and the economic impact of certain type of taxes in addition to tax options. Staff noted the City could have a value added tax on the dispensary and the provider. Council could also allow the entity to retain 5% of the 5% tax collected for administering their records. Council directed staff to proceed on drafting an ordinance. Meeting adjourned at 6:25 p.m. Respectfully submitted, Dana Smith Assistant to the City Recorder Regular City Council Meeting May 20, 2014 Page I of 7 MINUTES FOR THE REGULAR MEETING ASHLAND CITY COUNCIL May 20, 2014 Council Chambers 1175 E. Main Street CALL TO ORDER Mayor Stromberg called the meeting to order at 7:00 p.m. in the Civic Center Council Chambers. ROLL CALL Councilor Voisin, Morris, Slattery, Lemhouse, Rosenthal, and Marsh were present. MAYOR'S ANNOUNCEMENTS Mayor Stromberg announced vacancies on the Airport, Conservation, Firewise, Forest Lands, Historic, Public Arts, and Tree Commissions. There was also one vacancy on the Citizen Budget Committee. Mayor Stromberg removed the Planning Commission's report regarding short-term rentals from the agenda for a future meeting and moved Public Forum after the Consent Agenda with Council consent. APPROVAL OF MINUTES The minutes of the Special Meeting of April 22, 2014, Study Session of May 5, 2014, Executive Session of May 6, 2014, and Business Meeting of May 6, 2014 were approved as presented. SPECIAL PRESENTATIONS & AWARDS Firewise Commission member Eric Olson provided the annual presentation on the Commission and shared accomplishments. CONSENT AGENDA 1. Approval of commission, committee, and board minutes 2. Award of a professional services contract in excess of $75,000 for consultant engineering of the A Street Sewer Project 3. TGM Grant application approval for Siskiyou Blvd. Pedestrian Study 4. Award of contract to apparent low bidder for the 2014 Slurry Seal Project 5. Approval of an intergovernmental agreement between Jackson County and the City of Ashland for Sobering Unit Services 6. Award of professional services contract for the Water Rate Cost of Services Study 7. Third Quarter Financial Report for year one of the 2013-2015 Biennium 8. Declare the barn located at Ashland Creek Park, 27 E. Hersey Street, as surplus property Council pulled Consent agenda items #3, #5, and 46 for further discussion. Engineering Services Manager Scott Fleury addressed the Traffic Growth Management (TGM) grant application and explained they could extend the pedestrian study parameters to Walker Street and Fire Station # 1. It would require amending the cost for the study possibly $5,000-$10,000. The grant had a 12% match the City could meet through staff time. The Downtown Multi Modal Committee was looking into pedestrian traffic issues in the downtown area. Staff also involved consultant Traffic Engineer Kim Parducci to look at pedestrian safety in the downtown corridor. Ms. Parducci conducted an analysis on the pedestrian fatality that occurred on Water Street and North Main that resulted in eliminating parking along the north side of Water Street to increase sight distance. Councilor Marsh/Lemhouse m/s to approve Consent Agenda item #3 the TGM grant application for the Siskiyou Boulevard Pedestrian Study with the area to be studied defined as that portion of the Regular City Council Meeting May 20, 2014 Page 2 of 7 road between Fire Station #1 and Walker Street. Voice Vote: all AYES. Motion passed. Councilor Marsh clarified Consent Agenda item #5 noting Jackson County contracted to the non-profit Addictions Recovery Center who provided sobering services. Public Works Director Mike Faught addressed Consent Agenda Item #6 Water Rate Cost of Services (COS) Study and explained the four additional meetings would analyze different conservation levels and tiers. Councilor Rosenthal/Voisin m/s to approve the Consent Agenda with the exception of the previously approved Consent Agenda Item #3. Voice Vote: all AYES. Motion passed. PUBLIC FORUM Jonny Boulton/165 East Main Street/Provided an update on a group that consisted of Mayor Stromberg, Councilor Marsh and citizens for and against the gun ordinance. He asked Council to add the gun ordinance to a future agenda for a final decision. Jackson Bangs/632 Chestnut/Jackson County Fuel Committee/Explained the Committee's mission to provide heat to low income households. He opposed the utility rate increases and described the affect it had on low income household. Robin Haptonstall/341 Beach Street/Stated that his liberty was very important to him and wanted the gun ordinance to come before Council as soon as possible. PUBLIC HEARINGS 1. Public Hearing and approval of five resolutions proposing utility rate increases and repealing prior resolutions City Administrator Dave Kanner explained there were five resolutions to increase utility rates for the transportation utility fee, the storm drain utility fee, water rates, wastewater rates, and electric rates. The rate increases totaled a 6.5% increase to the average residential customer. The Electric rate was 3.6% and would build up the Electric Department's working capital that had decreased over the past three years. The City would use the funds for system wide improvements and capital projects. The water and wastewater increase would fund capital projects identified as necessary in the Water and Wastewater Master Plans. The community was dealing with antiquated infrastructure that needed updating. He acknowledged the increase was painful and noted programs that provided assistance. Electric Director Mark Holden addressed the electric service increase and explained the 3.6% would apply across all rate classes. The rate increase involved four components, personal services, materials, Bonneville Power Association (BPA) costs specifically the new Oversupply Management Protocol (OMP) charge, and increased transmission costs. The contribution to the Ending Fund Balance (EFB) would stabilize the decline experienced over the past years. Mr. Holden clarified the Electric User Tax (EUT) was not in the Electric Department, collected separately by the City for the General Fund and subsequently not included in the 3.6% rate increase. The rate increase would build the EFB up to $1,800,000 over the next 2-3 years. Mr. Kanner explained the electric utility did not include the EUT or the franchise fee in the rate calculations. The EUT was 25% of the electric bill whether Council raised electric rates or not. That 25% did not change and the franchise fee was a percentage of gross revenue. If gross revenue decreased, the franchise fee revenue to the General Fund went down as well and Council would have to cut a project to offset the loss of revenue. Mr. Kanner would review and bring options to modify the franchise fees and EUT to Council at a future Study Session. Regular City Council Meeting May 20, 2014 Page 3 of 7 Utility Billing Supervisor Bryn Morrison addressed requirements for electric utility assistance and explained the program was income based at 60% of the state median income. Public Works Director Mike Faught and Financial Analyst Ray Bartlett from Economic & Financial Analysis explained the rate increases for water, sewer, the transportation fee, and the storm water fee. Increases included 10.8% for water, 10% for wastewater, and 2.57% each for transportation and storm drain. The rate increase for water snatched the Water Master Plan. The TAP project came in higher than the $2,000,000 allocated in the Water Master Plan due to construction and an unexpected $3,000,000 System Development Charge (SDC) to the Medford Water Commission to use the water. Mr. Bartlett revised the master plan to accommodate the cost overrun in the TAP project by moving $2,700,000 in projects further out. Another change was $26,000,000 of capital improvement projects over the next 10 years originally financed at 5% over a 20-year period. Staff was working with the State to change that to 1% over a 30-year period along with a grant. These revisions enabled the rate increase to remain at what the Water Master Plan initially recommended. The Wastewater Master Plan was on track. The Transportation and Storm Drain rate increases matched the increase in capital costs. The Transportation Master Plan was complete and the financing was still pending. The Storm Drain Master Plan was underway. The City was spending 99% of the revenues in the transportation system on operations leaving very little for capital improvements. The increase in the fee would add another $33,500 for capital improvements for the future. The Storm Drain fund ran at a deficit. Mr. Faught clarified the Transportation Utility Fee Study was in the current budget but due to the TAP project would not move forward until the fall. He confirmed annual 10% rate increases for wastewater through 2017 with annual 10% increases for water through 2016 where it would drop to 7.9% in 2017 then 3.7% in 2018. Public Hearing Open: 8:24 p.m. Sue Crader/2957 Barbara Street/Explained she was the Executive Director of Ashland Supportive Housing and Community Outreach, and spoke on behalf of the non-typical utility user. She shared utility rates incurred since 2008 that totaled an increase of $3,475 or 24% and noted salaries had not increased. Her agency and other businesses were getting squeezed tighter and tighter. She urged Council to examine what they could do to alleviate the impact of the increases for non typical users, low-income or fixed income. Pamala Joy/472 Walker Avenue/Ran the Ashland Food Angels and noted that the people she worked with struggled to make ends meet. Recently Food Angels became part of Partners for a Hunger Free Oregon. She read statistics that stated the cost of living in Oregon was higher than the national average, 500,000 Oregonians had struggled to get enough food to eat. Hunger was a symptom of lack of sufficient income to pay basic expenses and an indicator of systemic issues in the economy. She went on to read a poem she wrote. Ron Roth/6950 Old 99 South/Understood the need to raise the water rates. The TAP project cost a lot of money. One of his concerns was the idea of going to curtailment rates before it was necessary. Curtailment rates should not go into effect until mid September. As far as the overall rate increase, he speculated that more than 1% of Ashland residents were part of the "1%." There was also a large population of low-income people and that is where the City should be concerned. He liked the assistance programs and thought the City should expand them. He also thought Ashland had more water than people thought. Emma Barry/659 Fordyce Street/Spoke on behalf of Jackson County Fuel Committee (JCFC) who encouraged Council to reject any utility rate increase until the City had exhausted all alternatives. Of the 178 families the JCFC helped 40 faced shut offs from the City. Statistic showed low-income families reduced their food budget $9 a month when there was a 10 degree drop in temperature while wealthier families increased their food budget $11 per month. The increase would harm the poor. The JCFC understood the Regular City Council Meeting May 20, 2014 Page 4 of 7 reasons for the increase in rates, shared ways the City assisted JCFC, and listed questions they wanted answered for the community. She went on to ask Council to enact a moratorium for shut offs for low income residents from November 1 through March 31 and establish a year round 30% discount for low-income households as well. Public Hearing Closed: 8:39 p.m. Councilor Rosenthal/Marsh m/s to approve Resolution #2014-02 for Water Service. DISCUSSION: Councilor Rosenthal thought it was responsible to increase the fee based on the amount of research and calculations done on water infrastructure needs going forward. The state revolving loan fund would require this adjustment in order to be eligible for loan forgiveness. Councilor Marsh added this was the most responsible path to develop a sustainable water system. The 1% loan from the state would help pay for a portion and required a contribution from the community. Councilor Lemhouse noted the aging infrastructure and now everyone was facing rising costs because action not previously taken and he was not willing to do that to the future residents of the town. Not taking these steps would create more difficulty for the future. Councilor Voisin commented water use paid for infrastructure and the General Fund and alternately Council had a goal to make Ashland affordable. She knew that conservation was the best and most reliable way of securing water supply and wanted the City to do more. Roll Call Vote: Councilor Marsh, Rosenthal, Morris, Slattery, and Lemhouse, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Voisin/Slattery m/s to reopen the Public Hearing on utility rates. Voice Vote: all AYES. Motion passed. Public Hearing Opened: 8:47 p.m. Kristin Dilling-Conand/65 Woolen Way #2/Explained that at this point with utility rates it was a choice of food and utilities for herself and her tenants. She was disabled and during the winter could not buy food because of her electric bill. The rates just went up in December and the City explained they had used more power and she claimed they did not. She had three tenants already struggling to pay rent and their electric rates were going to ACCESS. It was a lot of money for people who did not have good jobs and struggled to remain in Ashland. Fees were running her out of Ashland. The December rate increase was supposedly to be 6% and with taxes, it was closer to 7%. She assumed the new increase was similar and noted that was 15% in five and a half months. Council raised the rates already to pay for TAP. She did not think it was fair. Public Hearing Closed: 8:50 p.m. Councilor Rosenthal/Marsh m/s to approve Resolution #2014-03 for Wastewater (Sewer) Service. DISCUSSION: Councilor Rosenthal commented it was difficult approving fees. In 2012, the Waste Water Master Plan outlined $10,800,000 of high priority capital projects to ensure compliance with all regulatory requirements and to meet future needs. It was irresponsible to delay or decline adjusting this particular fee increase. Roll Call Vote: Councilor Rosenthal, Marsh, Slattery, Morris, and Lemhouse, YES; Councilor Voisin, NO. Motion passed 5-1. Councilor Marsh/Slattery m/s to approve Resolution #2014-04 for a Transportation Utility Fee. DISCUSSION: Councilor Marsh explained the streets were degrading at a rate that would cost the community more in the future. It was important to move forward with the Transportation Utility Fee study so the City would manage street maintenance issues on a macro level than adding cost of living increases to the transportation fee. Councilor Slattery agreed. Councilor Voisin did not see any alternative for street maintenance and would support the increase. Councilor Rosenthal added the metric communities used to determine quality of street conditions had declined 20 percentage points over the past few years, used East Main Street as an example, and noted other streets would look similar if the City did not take action. Regular City Council Meeting May 20, 2014 Page 5 of 7 Roll Call Vote: Councilor Lemhouse, Morris, Voisin, Marsh, Rosenthal, and Slattery, YES. Motion passed. Councilor Morris/Lemhouse m/s to approve Resolution #2014-05 for a Storm Drain Utility Fee. DISCUSSION: Councilor Morris explained the City was falling behind on maintenance. Councilor Lemhouse agreed on the infrastructure and explained it was not easy to raise rates, the public elected Council to make these decisions, and Council needed to make them. Councilor Voisin would support the motion since there were no other alternatives. Roll Call Vote: Councilor Voisin, Marsh, Rosenthal, Morris, Slattery, and Lemhouse, YES. Motion passed. Councilor Voisin/Slattery m/s the electric utility increase and place a moratorium on the Electric User Tax and the Franchise Fees for those increases directing staff to develop progressive rates with conservation incentives and a progressive tax structure for the Electric User Tax repealing Resolution 2013-34. DISCUSSION: Councilor Voisin thought it was time to think creatively, admit part of the conundrum was paying bills, and find other ways. The City did not need a "Cadillac" solution for all cases. She wanted to know and have the public understand how rate increases affected the General Fund and how the City would use the increase. Councilor Slattery explained he had not been comfortable increasing the Electric User Tax (EUT) for a while and thought Council needed to look at in a more comprehensive fashion and would support the motion. Councilor Voisin clarified the motion retained the EUT and stopped increases until further study. Accounting Manager Cindy Hanks confirmed the EUT was an ordinance and the City could handle the franchise fees internally. Mr. Kanner added revising the rate structure to reward electric conservation was a larger endeavor and probably required hiring a consultant. Mayor Stromberg commented the motion was not explicit enough or checked for feasibility. Councilor Lemhouse called for a point order and explained Councilor Voisin had the opportunity to speak to the motion. He did not think there was another opportunity to ask questions of staff or seek further clarification. That needed to happen in the motion itself. Roll Call Vote: Councilor Voisin, YES; Councilor Marsh, Rosenthal, Morris, Slattery, and Lemhouse, NO. Motion failed 5-1. Councilor Marsh/Morris m/s to approve Resolution #2014-06 for Electric Service. DISCUSSION: Councilor Marsh explained Council would address the EUT in a Study Session already scheduled and that was the time to make adjustments if needed. Ashland owned its own electric utility and bills were less than other cities and there were subsidy programs that accepted anyone who qualified. Councilor Morris added this was the only option at this time and wanted the rate structure, franchise fees, and EUT studied further. Councilor Voisin noted all the utility increases had a 49% percent tax or fee that needed to be curtailed or decreased. She wanted progressive taxes and rates so those who used more paid more and conservation efforts were rewarded through rates. Councilor Slattery would not support the motion and wanted the process of raising rates reviewed and revised. Councilor Lemhouse would support the increase, agreed the rate process needed work and that work would happen. It was frustrating to hear arguments about taking care of people by voting against this when Council did not lower rates or taxes in other ways and added fees on things that people did in their daily lives. He would support the motion because it needed to happen. Councilor Slattery asked Council to consider that one way of making a new plan was voting against the rate increase. Councilor Voisin agreed with Councilor Slattery. Roll Call Vote: Councilor Marsh, Morris, and Lemhouse, YES; Councilor Voisin, Slattery, and Rosenthal, NO. Mayor Stromberg broke the tie with a YES vote. Motion passed 4-3. Mayor Stromberg was confident Council could resolve the issue of the Electric User Tax and did not want to shut down financial processes as a way of achieving it. Regular City Council Meeting May 20, 2014 Page 6 of 7 2. Public Hearing and approval of a resolution titled, "A resolution adopting a Miscellaneous Fees and Charges document and repealing prior fee resolution 2013-17" Item delayed. 3. Continuation of the Public Hearing and first reading of two separate ordinances amending the City of Ashland Comprehensive Plan, Comprehensive Plan Maps, Transportation System Plan, and Street Standards to adopt the Normal Neighborhood Plan ABSTENTIONS, CONFLICTS. EXPARTE CONTACT None reported. THOSE WISHING TO PROVIDE TESTIMONY Public Hearing-continued: 9:18 p.m. Sue DeMarinis/145 Normal Avenue/Read from a document submitted into the record. Sherry Smilo/2305 C Ashland Street #281/Did not support consultants from out of the area and thought they should at least live in Jackson County to see how their plans affected the public. She shared her experience blocking an action to build a road in her back yard. New roads would bring issues and impact. Wesley Bishop/280 Normal Avenue/Understood that when he moved to Normal 26 years ago his property was part of the Urban Growth Boundary (UGB) and new change would occur. He supported neighborhood growth but wanted wise and prudent planning. Gil Livni/240 Normal Avenue/Read from a document submitted into the record. Anya Neher/237 Clay Street/Noted the area around Clay Street already supported a lot of high-density housing that caused increased traffic. She thought it was a lot asking one section of town to keep taking more high-density housing. She asked Council look into the density and height allowance in the plan: Councilor Slattery/Voisin m/s to continue the Public Hearing to the next Council Meeting. DISCUSSION: Councilor Lemhouse would not be present at the next meeting and did not think they should postpone due to his schedule. Councilor Rosenthal suggested scheduling a special meeting instead. Councilor Voisin wanted to be sure there was enough time for staff to complete their report and hear from the Planning Commission. Councilor Lemhouse would vote against the motion and supported having a special meeting. Roll Call Vote: Councilor Voisin, YES; Councilor Rosenthal, Slattery, Marsh, Lemhouse, and Morris, NO. Motion failed 5-1. Councilor Lemhouse/Slattery m/s to schedule Special Meeting on the Normal Avenue project for the evening of May 29, 2014. DISCUSSION: Councilor Marsh would not support the motion and thought it should continue to the regular Council meeting June 3, 2014. Council discussed starting the meeting at 7:30 p.m. Roll Call Vote: Councilor Rosenthal, Slattery, Voisin, Lemhouse, and Morris, YES; Councilor Marsh, NO. Motion passed 5-1. Mayor Stromberg clarified they would take public testimony from those who filled out speaker request forms for the May 6 or May 20 meeting and did not speak, and those who wished to speak and had not but would not hear testimony from people who had already spoken on the manner. UNFINISHED BUSINESS - None NEW AND MISCELLANEOUS BUSINESS 1. Planning Commission's report on considering a limited type of short-term traveler Regular City Council Meeting May 20, 2014 Page 7 of 7 accommodation in residential zones Removed from agenda. ORDINANCES. RESOLUTIONS AND CONTRACTS 1. First reading by title only of an ordinance titled, "An ordinance amending AMC Chapter 2.26, Firewise Commission to Ashland Wildfire Mitigation Commission" Division Chief-Forest Resource Chris Chambers explained the proposed ordinance changed the charter of the commission only. It would give them a broader purview of issues to consider under the Fire Adapted Communities program but would not create an impetus in any way for landowners to have to remove vegetation. The Commission might consider that in the future and that would require sending it to the Planning Commission then to Council. Councilor m/s to approve First Reading of the ordinance and place it on the agenda for Second Reading. Roll Call Vote: Councilor Slattery, Rosenthal, Voisin, Morris, Lemhouse, and Marsh, YES. Motion passed. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Rosenthal explained that each summer the Conservation Commission collaborated with Recology to offer free composting classes in Ashland. Basic Composting class dates were June 7; 2014, and July 5, 2014. Advance Composting class dates were August 2, 2014 and the Vermicomposting class was September 6, 2014. All classes would happen at the Ashland Recycle Center on Water Street, 2:30-4:30 p.m. Councilor Lemhouse provided a liaison report on the Downtown Beautification Committee that met May 8, 2014 and made recommendations for projects that staff would provide price summaries and the Committee will refine their list further. Councilor Voisin announced the portable shower trailer service was at the food bank and the United Methodist Church. She expressed gratitude to Jon Warren, the owner of the Holiday Inn Express who volunteered to launder used towels. Councilor Marsh invited everyone to attend the ongoing community discussion on guns. The next meeting was May 29, 2014 at 6:00 p.m. at the Library in the large meeting room. City Administrator Dave Kanner noted the City was not putting out the hanging baskets in the Plaza this summer, the Downtown Beautification Committee asked to hang colorful pennants from the pedestrian lamps. He would also send Council alternative locations for the Plaza information kiosk. Staff was also launching a water wise campaign that would start in June. Councilor Morris announced the Historic Preservation awards would occur the next night at 1:00 p.m. in the Community Center at Winburn Way. ADJOURNMENT Meeting was adjourned at 10:04 p.m. Barbara Christensen, City Recorder John Stromberg, Mayor P9 ¢~n~ ¢q~aa ~'GPy~ ¢q f9 ~ ~ ¢vV~i Pa ;1~~:JPV~~SY W~CJ b d b J b v1 ~ b MY, PROCLAMATION 00 ° • By act of Congress of the United States dated June 14, 1777, the first official flag of the United States was adopted. • By act of Congress dated August 3, 1949, "National Flag Day" was Q designated each year as June 14. • The Congress has requested the President to issue annually a proclamation designating the week in which June 14 occurs as National Flag Week. • Flag Day celebrates our nations symbol of unity, a democracy in a republic, and stands for our country's devotion to freedom, to the rule of all, and to equal rights for all. • We pay our respect to all of the many veterans who have served the 00 armed forces of their country. NOW, THEREFORE, I, John Stromberg, Mayor of Ashland, do hereby proclaim June 14, 2014 as 7 FLAG DAY in the City of Ashland e and urge all citizens of Ashland to join in with the Ashland Elks Lodge #944 to Pledge of Allegiance to our Flag and Nation, at noon on Thursday, June 14 at the Ashland downtown Plaza. Dated this 3rd day of June, 2014 John Stromberg, Mayor 6 ~ Barbara Christensen, City Recorder 00 • ~ifi~ `Kjr~~ o o e 0 ZZU CITY OF ASHLAND Ashland Housing and Human Services Commission Minutes April 24, 2014 CALL TO ORDER Chair Joshua Boettiger called the meeting to order at 4:35 in the Siskiyou Room at the Community Development and Engineering Offices located at 51 Winburn Way, Ashland OR 97520. Commissioners Present: Council Liaison Joshua Boettiger Pam Marsh, absent Heidi Parker, left a 5:10 Connie Saldana SOU Liaison Michael Gutman Andrew Ennslin Regina Ayars, absent Rich Rohde, absent Staff Present: Coriann Matthews Linda Reid, Housing Specialist Sue Crader Carolyn Schwendener, Admin Clerk Gina DuQuenne Approval of Minutes Saldana/Parker m/s to approve the minutes of the March 27, 2014 Housing and Human Services Commission. Voice Vote: All Ayes; minutes were approved as presented. PUBLIC FORUM Kathy Kennedy, Landlord and citizen of Ashland was present to listen and participate in the Student Fair Housing Discussion. Holly Smith introduced herself stating that she is in Pat Acklin's Planning Issues class at SOU. She will be participating in a presentation to the Housing and Human Services Commission at a future meeting. Christy Wright, Fair Housing campaign manager for ASSOU was present. STUDENT FAIR HOUSING DISCUSSION Reid acknowledged that the Council voted to direct the Housing and Human Services Commission to study and develop a recommendation on whether students should be added as a protected class in the City's Fair Housing ordinance. The Council also directed the Commission to discuss other ways aside from the designation as a protected class that would provide better protection for students. Ennslin and Wright expressed their appreciation that the Council considered the request of making students a protective class and directed it to this Commission for discussion. The Commissioners discussed their different experiences with living next door or renting to SOU students. Their experiences were everything from respectful and wonderful to rowdy and drunkenness. The consensus was that it has not always been pleasant to live next door to students. The commissioners suggested looking at innovative ways to diminish some of the problems. They were interested in learning how other college communities have addressed similar issues. Is there a certification process to assure landlords of responsible renters? Christy Wright recently had a discussion with Janay Haas, author of the book entitled "Landlord Tenant rights in Oregon." She is a criminal justice professor at SOU and has been an attorney for landlord tenant disputes for about twenty years. "Ms. Haas is very enthusiastic about helping us with this project", stated Wright. The Commission encouraged the idea of educating students who may never have been tenants before. They would support a class that would raise the awareness of what it is to be a good tenant. Currently ACCESS offers a six week "Ready to Rent" class. After completing the class the participants get a certificate that can be showed to landlords confirming their intent to be a good tenant. Another idea is to have a fund designated as a security deposit for landlords that would give some guarantee they would get their money. The question was proposed "Why do property owners reject students?" Kathy Kennedy clarified that being a landlord is a business model; it's an investment on someone's part. Ms. Kennedy said a landlord wants a good tenant. To find those tenants a landlord will use criteria such as references, qualified income and good credit history. Ms Kennedy explained she has had both good experiences and bad experiences with students as well as with working people. She questions whether a protected class is necessary and suggested doing a survey with Ashland landlords. To her knowledge she has not noticed landlords practicing discrimination against students and would like to see input from landlords to confirm their truly is a discrimination problem. Wright acknowledged that creating a protected class is not going to stop landlords from screening their applicants and finding good tenants. What is important is that fair standards apply to everyone and that landlords don't unfairly single out students. The next step is to talk with ACCESS regarding their Ready to Rent program and class availability. Wright would like to work with Ms Kennedy on organizing a focus group with students and landlords. They will put information together and set a date and time. BRIEF OVERVIEW OF AFFORDABLE HOUSING PROGRAM Reid gave an overview of the City of Ashland Housing program explaining affordable housing is one component of it. In general terms affordable housing refers to a household's ability to find housing within their financial means. The standard measure of affordability as defined by the U.S. Department of Housing and Urban Development (HUD) is when the cost of rent and utilities (gross rent) is less than 30% of household income. When gross rent levels exceed 30% of income it places a significant burden on household finances. Here are three main types of Affordable Housing 1. Workforce Housing 2. Low-Income Housing 3. Subsidized Housing Federal financing is offered through Rural Development, HUD and the National Housing Trust Fund. State financing can be through Oregon Housing Tax Credits, Low-income Housing tax credits, Vertical Housing Program and Pass through Revenue Bond financing. The City of Ashland has a Housing Trust Fund which currently has between $140,000 and $170,000 in it. These funds can be used in a variety of ways. SOCIAL SERVICE GRANT RECOMMENDATION TO COUNCIL REVIEW AND APPROVAL Reid explained that it is the responsibility of this Commission to come up with a Social Service Grant process recommendation to the Council at their June 3, 2014 meeting. The Commission would like to develop a strategic plan for the Social Service Grant money. The following is the grant proposal to the Council including what the Housing and Human Services Commission will do. • Work with staff to develop program specific Strategic Plan with measurable goals and objectives to inform the decision making process in awarding social service grant funds. • Work with Council to define broad priorities for the use of the funds and measurable goals. • Review the previously drafter strategic plan for the use of Social Service Funds to see if there are priorities identified which are still relevant. • Engage current and former grantees, social service organizations and the public in reviewing the current process, elicit suggestions on potential changes to the process and to gain feedback on potential goals • Utilize the social service inventory and gaps analysis and other pertinent demographic reports to inform goals and objectives • Draft a short strategic plan to be reviewed periodically and revised as needed. • Provide a recommendation regarding the exiting process of granting Social Service Grant funds. The Social Service Grant money comes from the General Fund. The Commission discussed what the most efficient use of funds would be and if the past use of funds address the unmet needs. Reid will type up a bullet point addressing this concern. At the next meeting Commissioner's can vote on approval of the proposal. COMMISSION GOAL SETTING DISCUSSION The Commission works under the direction of the Council but would also like the Council to further the goals they are interested in working on. They agreed that the end of August would be a good time for the goal setting meeting. Put on next month's agenda to finalize the date and time. CDBG ANNUAL ACTION PLAN REVIEW AND APPROVAL Reid developed a Final Action Plan for the use of CDBG funds for the Program year 2014. The Action Plan describes what the City is doing with the grant money and if it meets the goals in the Five Year plan. Once it's approved Reid will send it to HUD for their approval and then the City receives the grant agreement and funding. The public hearing was open for comment. No one was present to speak. Saldana/Gutman m/s to approve the Final Action Plan for the one year use of the CDBG funds. Voice Vote; All Ayes, motion passed. LIAISON REPORTS DISCUSSION Staff - Reid reported that the public hearing on the Normal Avenue plan is scheduled to go to the Council for first reading on May 6'h and the second reading is scheduled for May 20'h. APRIL 23RD AGENDA ITEMS Quorum Check - Reid will be at a HUD training in Portland and will not be able to attend. Brandon Goldman will be the staff liaison for the meeting. Agenda items - Presentation by city recorder and city attorney - rules that govern commissions and committees Brandon will talk about the normal plan in relations to zone change, annexation and how it works with the city's affordable housing. UPCOMING EVENTS AND MEETINGS Housing and Human Services Commission regular meeting - May 22, 2014, 4:30 pm in the Siskiyou Room of the Community Development Building located at 51 Winburn Way ADJOURNMENT - The meeting was adjourned at 6:02 p.m. respectfully submitted by Carolyn Schwendener ASHLAND TRANSPORTATION COMMISSION MINUTES MARCH 20, 2014 CALL TO ORDER: Chair David Young called the meeting to order at 6:00 p.m, in the Civic Center Council Chambers, 1175 E. Main Street. Commissioners Present: Joe Graf, Shawn Kampmann, Craig Anderson, David Chapman, Corinne Vieville, and David Young. Commissioners Absent: Alan Bender Staff Present: Scott Fleury, and Mary McClary Council Liaison Absent: Carol Voisin ANNOUNCEMENTS CONSENTAGENDA Approval of Minutes - None (February/March minutes to be approved at the April meeting) PUBLIC FORUM None NEW BUSINESS Fleury explained the new agenda format to the commission. He stated that he does the new business/old business format with the Airport Commission and it works out well. He asked the commission to share their feedback and if they wanted to go back to action/non-action items that would be ok. Overall the commission likes the new format. He stated the change was being made to lessen any confusion such as citizens attending a meeting to speak on an action item when it was the initial discussion of the topic. Anderson voiced concern with the fact that Mike Faught makes the final decision regarding recommendations that are made by the commission. He isn't aware of other committees or commissions acting in that same fashion, according to Ashland's Municipal Code. Fleury stated that he believes the power was granted by way of resolution, not the Municipal code. Kampmann likes the idea of being able to hear about an item and if it is something that moves along then it would be feasible for citizens to be present. He stated that there are times that he feels like they are presented with items to discuss & the public is present but the commission hasn't had a chance to fully research the item. Graf isn't sure of how the citizens would understand that "old business" would be items that they could be taking action on. Fleury staled that if the item involved affected properties they would be informed of the meeting in which action was being taken. Graff stated that would be fine for the affected properties but there could be other people that may want to speak on a topic even if they aren't an affected property. He thinks it is important to have it more clearly labeled on the agenda, such as "consideration of or some language like that. Vieville would like to have the issue at a meeting and then if it is a big topic, have it deferred to the next meeting to allow for time to research. Kampmann agrees with Vieville. He also thinks that there could be items that the general public would want to speak on but need more notice on. Fleury recommended possibly posting the normal agenda and rather than attaching the entire meeting packet, there could be a summary for each agenda item or he could add a brief description for each item on the agenda. Transportation Com scion March 20, 2014 Page l or5 Chairperson Young thinks that maybe the commission should ponder this for a while to decide how the agenda is working out. Fleury stated he will add a summary to the items starting on the next agenda and the Commission can see how they like it. Anderson asked that Kim Parducci, Southern Oregon Transportation Engineering, be present at future meetings when there is a traffic engineers recommendation. Kampmann added that the Parks Commission, the Conservation and a few other commissions/committees besides the Council have their meetings printed in the newspaper. Staff stated that it was not required anymore and is no longer free. Young thinks it is a good idea to send it to the Mail Tribune/Ashland Daily Tidings and maybe they can include it in their "things to do today" section. Chapman feels that Fleury will have a good idea of the complexity of the issues that come up and can plan accordingly. Young summarized that the commission would like the meetings noticed in the paper on the Tuesday prior to the meetings. Transportation System Capital Improvement Prioritization (CIP) Fleury pointed out that per the discussion at the February meeting staff provided the commission with the current Transportation System Plan (TSP) project list along with the currently adopted CIP list. Currently the CIP projects are ranked as High, Medium and Low. They are broken up into pedestrian, bike and roadway sections Roadway also includes recommended studies to be performed. The idea is for the commission to develop a strategy on how they would like to prioritize these projects. He also stated that Mike Faught wanted him to inform the commission that a letter of intent for a Transportation Growth Management (TGM) grant for the Siskiyou Blvd. safety study (from Southern Oregon University to the high school) has been sent in. The full application will be due in June. He wanted to be sure that the commission is ok with staff pursuing the grant. The commission would like Mike to know that they would all agree that the area should include Walker around the bend to Siskiyou and Ashland Street up and down to the Siskiyou corridor. Fleury stated the CIP list was included in the meeting packet and he also showed it on the projector. He went through the spreadsheet and each of the projects on the list and the commission provided input. Chapman pointed out that he would still like staff to consider the possibility of extending the bike path to Oak Street as part of the Oak Street Railroad crossing project. Fleury pointed out that all of the bike projects currently on the list are in the unfunded category. Fleury asked how the commission would like to prioritize the projects on the list. His thought is to have the commission look at one section each meeting and have discussion on prioritizing, funding etc. He would advise looking primarily at the projects that are not developer driven. The commission feels it would be important to know which projects staff can feasibly get grant funding for and which ones cannot. Fleury was thinking that would be part of the discussion for each of these projects. Anderson stated that he thought the Washington Street Extension project was developer driven. Fleury remarked that it is both. The iamp (interchange access management plan) is going to limit left turn access out of that location. Mike Faughl is working to try to create the connection through there. The development will build the project, but we are trying to refine it so that it meets our codes. We are trying to do some ground work now so that we understand the process. Anderson also asked about the System Development Charge column (SDC). Fleury stated some of the projects don't have anything in the SDC column. He pointed out there is currently a SDC committee working on the Transportation Commission March 20, 2014 Page 2 of 5 SDC's and once we have that information, the spreadsheet would be updated to reflect that. Anderson asked if there is anyone on the SDC committee that would represent Transportation interests. There is a representative appointed that represents the homebuilders association which would likely advocate for lower SDC's so he wonders if there is anyone on the opposite side to counteract that? Fleury explained that the SDC committee was established in February (read the list of appointees to the commission) and they have met a few times already. Anderson stated that the SDC's are a big issue for him. He is concerned that the SDC committee may not have someone appointed to represent the Transportation interests. He also voiced the Transportation Commission wasn't involved in the process of applying for the recent Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Program (STP) grants that were recently applied for. Chair person Young stated the intent of this agenda item is to address this & move forward and the points made by Anderson have been well taken and understood. Chapman requested staff bring the information to the commission each time a grant is being pursued so that the commission can contribute to the decision making process. Fleury responded that he is asking the commission for what information the commission would like staff to bring forward to them to help them make recommendations regarding prioritizing the CIP. Anderson questions his role as part of the Transportation Commission. He said the Transportation Commission is the only commission within the City that he could find that makes recommendations directly to the Public Works Director and not the City Council. Voisin stated according to the Commission webpage "The Transportation Commission advises the City Council on transportation related issues specifically as they relate to safety, planning, funding and advocacy for bicycles, transit, parking, pedestrian and all other modes of transportation." Anderson replied that if you look at the powers that the commission has under municipal code 2.13.0301040 it lists what they are empowered to do and they are not empowered to make recommendations to council. Voisin stated that if one says advises and the other one doesn't then maybe it is something that needs to be clarified and/or reviewed. Young feels that by definition the commission advises council. Municipal code 2.13.040 states "The Transportation Commission will review and forward all traffic implementation regulations to the Public Works Director for final approval and implementation of official traffic safety and functional activities." Fleury pointed out that traffic implementation regulations are different than making recommendations towards capital improvement projects. Traffic regulations are signed by the Public Works Director and forwarded directly to the Streets department, anything else is brought to the Transportation Commission for discussion. Fleury has only been involved in this commission for about a year and a half, he isn't sure how Jim or anyone else handled the CIP previously but since we are going into the next budget cycle along with a newly adopted Transportation System Plan that outlines the projects Fleury is trying to follow this and build a paradigm to go forward. Kampmann commented he has always been under the impression that the commission is an advisory committee to the City and Public Works. He sees it as the commission making recommendations and ultimately it is up to the City to make the decisions. Anderson questioned Fleury as to whether or not in hindsight he would have handled the recommendation he made to Council on December 3rd for the Congestion Mitigation and Air Quality and Surface Transportation Program (STP) projects, would he have brought it before the Transportation Commission first after having had this discussion. Fleury remarked staff had previously received Councils approval under a different funding mechanism and also to apply for the STP funds which Jim Olson had worked on several years ago, so it has been brought to Council numerous times over the years. He emphasized that as this process unfolds the projects will be brought before the commission. Graf mentioned that he hopes Anderson will stay on the Commission. He also staled it looks like the commission will be making recommendation on the transportation section of CIP and if that hasn't been done previously before taking it to Council then it shouldn't have been handled that way. He mentioned that the East Nevada Street bridge project which was previously taken to Council at a substantial lesser amount probably should have been brought before the commission to make the recommendation in favor or against it. Fleury added, by following this process it will solve the issue. Overall, the commission agrees that going forward taking a look at these projects will help solve these issues. Graf added that he agrees with Anderson's concern regarding Transportation representation on the System Development Charge (SDC) committee. He doesn't think there is anyone on the committee specifically interested in transportation issues. He feels there is more representation for the home builders. Chapman expressed there are a Transportation Commission March 20, 2014 Page 3 of 5 few people on that committee that understand the budget process and how everything interrelates and would also be interested in the transportation piece. Kampmann questioned whether it should be a concern of the Transportation Commission. He stated the committee was appointed by the Mayor. A few of the Commissioners think it is a good idea if the commission feels there needs to be more representation that a motion be made and forwarded to the Mayor. Vieville/Chapman m/s to recommend the Mayor appoints a member of the Transportation Commission to the SDC committee. All in favor. Motion passed. Anderson/Young m/s to recommend Joseph Graf as the Transportation Commission representative. All in favor. Motion passed. Fleury stated the commission will prioritize one of each of the network categories (roadway, bicycle, pedestrian) and have everything wrapped up by the end of this calendar year. There will be a set total amount for all 3 networks and the commission will prioritize utilizing the total available funding amount. OLD BUSINESS Lithia Way and 3rd St. Fleury emailed and met with Dan Dorrell & Mike Birch (ODOT) at Lithia and 31d and they talked about relocating the signs. They told him to submit a speed zone study request and then they would look into it. He submitted the speed zone study. The speed zone study for the initial speed zone extends past the Fire Station; that sign disappeared. He speculated that it was probably taken down during the construction of the fire station and the sign was never put back up. The sign can be placed within 100 feet of its original designation. In order to do so staff would just need to write a Memo to the State Traffic Engineer for approval. Fleury recommends the sign be placed within the park row on each side. Orange Ave Bicycle Boulevard The Streets department has been out there burning in the sharrows. Signs have also recently been put up. N. Main Restriping Kim Parducci conducted an analysis of the lane shift back to Oak Street from Heiman (doing a lane merge over the bridge) and she determined that it will work fine if ODOT changes the signal liming at the Heiman light to allow more through traffic on Main Street and less cross traffic from Heiman. There will be a dedicated left hand turn around the totem. The design, analysis and tech memo are done and we are now waiting on ODOT's review and then it would be presented to council for approval. Nevada St. Bridge/Chip Seal Applications The TAC had their prioritization ranking meeting where the top 5 projects were funded, including the Nevada Street Bridge. The chip seal wasn't recommended by the TAC. The PAC held a meeting afterwards and followed the TAC recommendations. The next step is the policy review committee's review and recommendation which should happen in April. Bollard Removal The bollards have been removed at the crossings of East Main, Tolman Creek & Mountain. Per Kim's recommendation there are full stop bars and signs at those crossings for bicycles. Downtown Parking Study Young informed the group that the March meeting included discussion on developing guiding principles & the upcoming April meeting will include distributing the downtown concept street maps. INFORMATIONAL ITEMS Action Summary Transportabon Commssion March 20, 2014 Page 4 or5 Oregon Impact February Newsletter Traffic Crash Summary COMMISSION OPEN DISCUSSION FUTURE AGENDA TOPICS Transportation Safety Public Outreach SOU Multi-Modal Future Siskiyou Blvd. Signal Timing Vieville would like to have a future discussion on the audible pedestrian signals Anderson would like to have a future discussion regarding the "powers and duties specifically" of the commission (have Legal come to a future meeting). ADJOURNMENT Meeting adjourned at 8:03 pm Respectfully submitted, Tami De Mille-Campos, Administrative Assistant (Minutes completed via audio tape due to being absent at meeting) Transportafion Commssion March 20, 2014 Page W5 ASHLAND TRANSPORTATION COMMISSION MINUTES APRIL 24, 2014 CALL TO ORDER: Chair David Young called the meeting to order at 6:00 p.m. in the Civic Center Council Chambers, 1175 E. Main Street. Commissioners Present: Joe Graf, Craig Anderson, Corinne Vieville, Alan Bender, and David Young Commissioners Absent: Shawn Kampmann, and David Chapman Staff Present: Scott Fleury, Mike Faughl and Tami De Mille-Campos Council Liaison Present: Carol Voisin ANNOUNCEMENTS CONSENT AGENDA Approval of Minutes - February Page 5 correction: "Chairperson Young stated formal communication from members to other people and/or organizations and any other form of communication, should clearly state when they are expressing opinions from themselves. He was asked by Staff whether he thought the City Recorder and City Attorney should refresh the Commission with the rules and regulations' Approved as corrected. PUBLIC FORUM Honore Depew, 63 California Street On behalf of Ashland Parks and Recreation he updated the Commission on the Annual Bike Swap happening on April 26, 2014. He also asked for volunteers, as they are always needed. He offered to set up a table for any of the Commissioners that might want to be present at the event. Commissioner Young agreed to have a table with some Transportation System Plan maps, in place of volunteering at the event. Colin Swales, 95 Coolidge Now that he is living close to the road diet area he wanted to provide some input on it. He feels it is working well. He pointed out that there aren't many breaks in the traffic now which has been brought up since the beginning of the Road Diet. He also stated he used to be able to make a left turn onto Nursery Street heading north out of town rather than Coolidge Street like he used to. He pointed out the turn markings on the street are past Nursery, almost encouraging left turns onto Coolidge which isn't allowed. The main thing that hasn't been implemented yet is more pedestrian crosswalks/medians along North Main. He expressed interest in seeing the City further explore the idea (Dan Burden's) of roundabouts at Wimer/Hersey and Maple. If the road diet does become permanent, he would like to see changes made such as street tree plantings, permanent turn lanes etc. NEW BUSINESS Transportation System Capital Improvement Prioritization Fleury stated this would be the first look at prioritizing the roadway network/studies capital improvement projects that came out of the Transportation System Plan (TSP). Once the commission completes the prioritization of the road networks they will move on to the bicycle and pedestrian networks in preparation for looking at the revenue/funding sources by the end of the calendar year for the next budget cycle. The Committee looked at the studies first, the Siskiyou Boulevard pedestrian crossing evaluation and feasibility study. Staff is interested in applying for a Transportation Growth Management (TGM) grant to complete the study, which would fund the study in full. This study is ranked as the only high priority in the TSP. Faught pointed out the study is timely as SOU looks at additional growth. Chairperson Young is the only remaining Commissioner that Transportation Comrrcssion April 24, 2014 Page 10/4 worked on the TSP. He stated during the TSP process he pushed pretty hard to consider the feasibility of a viaduct at that intersection (Hwy 66/Siskiyou). He is very impressed with how well the diagonal crosswalk redesign is doing but he thinks it is important to study the whole corridor. He mentioned he thinks it would be a good idea to maybe invite someone from SOU to the discussion, given the enrollment numbers. Graf feels it is a good idea to have this study done now rather than waiting. Staff pointed out if the Commission doesn't feel it is a good time to pursue this grant we can hold off on applying. For more information on this study see attached table 10-2. Out of respect for the TSP process the Commission decided to go through the high priority projects (those that aren't already in motion) and prioritized them. The high priority projects that are not already in motion are: Lithia Way (OR99 NB)/E Main Street Intersection Improvements (R05), Siskiyou Boulevard (OR99)/Tolman Creek Road Intersection Improvements (ROB), Ashland Street (OR 66)/Oak Knoll Drive-E Main Street Intersection Improvements (ROB), Walker Avenue Festival Street (Siskiyou Boulevard to Ashland Street) (R40). For more information on each project see attached table 10-3. Fleury/Officer MacLennan pointed out that the City receives a lot of complaints regarding this area on a weekly basis. Vieville/Bender mis to approve the prioritization as follows (excludes R17 & R25 which are already in motion): 1 - Siskiyou Boulevard (OR99)/Tolman Creek Road Intersection Improvements (ROB) 2 - Lithia Way (OR99 NB)/E Main Street Intersection Improvements (R05) 3 - Ashland Street (OR 66)/Oak Knoll Drive-E Main Street Intersection Improvements (ROB) 4 - Walker Avenue Festival Street, (Siskiyou Boulevard to Ashland Street) (R40) All in favor. Motion passes. Agenda Layout As per the discussion at the March Transportation Commission meeting the layout of the agenda has been changed. Staff also researched advertisement and public notice options with respect to the TC meeting agenda and critical discussion items. The Commission requested that staff publish a summarized agenda (26 display ad) at a cost of approximately $45.50 in the Ashland Daily Tidings the Monday before each months meeting. Transportation and Growth Management Grant Staff has submitted a letter of intent (LO1) to the Oregon Department of Transportation (ODOT) for a Transportation Growth and Management grant (TGM) for the Siskiyou Blvd. pedestrian crossing evaluation. TGM Grants help local communities plan for streets and land use in a way that leads to more livable, economically vital, and sustainable communities and that increases opportunities for transit, walking and bicycling. Anderson/Vieville mis to support staff drafting a letter of support on behalf of the Transportation Commission (Chair person Young will sign) and request that Council drafts a letter of support as well. All in favor. Motion passes. OLD BUSINESS Lithia Way and 311 St. Fleury spoke to Mike Birch from ODOT again and he is not going to submit to the state because the existing speed zone warrant is Within a couple hundred feet of where we want to put the 20mph signs so we do not need permission. He has already spoken to the Streets department and they have already chosen the spot & are going to install the 20mph signs. Orange Ave Bicycle Boulevard The Street department is almost done with sign and striping installation. They are looking to put up four more 20mph signs in between Willow and Drager directionally on both sides and in between Drager and Laurel. The sharrows have been installed. The feedback from the residents (Ellen Faulkner) has been positive so far. Fleury stated he had informed resident Ellen Faulkner, once the signs have been put up staff will ask the Police department to do some occasional patrolling of the area. Transportation Commission April 24, 2014 Page 2 014 N. Main Restriping Fleury stated they are still trying to finalize the project so the striping can be refreshed. Kim Parducci (Southern Oregon Transportation Engineering) is going to talk to ODOT (awaiting approval) about the changes so that the restriping can be finalized. *Changing the merge location heading northbound just past Oak Street *Realignment of the Maple Street driveway (Stone Medical) - staff is waiting to hear back from Asante *Glenn St - moving the dedicated left hand turn onto Glenn & making that the safety lane *Bush Street left hand turn lane Chair person Young brought up the concern regarding the need for further pedestrian crossings along North Main. Staff is having Kim explore that issue. Faught pointed out that they are looking to put down some more permanent striping rather than just paint. ODOT is recommending the City use thermoplastic because it wears a lot better. Fleury said he is trying to have ODOT bid the project out for us because they have contractors who specifically do this kind of work. Nevada St. Bridge/Chip Seal Applications Faught stated that the Chip seal was turned down. They thought it was a great idea but it was up against a few large projects (Table Rock, Foothills). He thinks it will have a good shot at funding next time. The East Nevada Street project was funded, at 1.5 million. Staff is requesting the infrastructure bank finance the difference at 1.8% interest. So far they are saying it is eligible and to check with ODOT. COOT is also saying they are in support of the project because it is a viable project so staff will finish the application for the low interest funding. Downtown Parking Study Young stated the May meeting was cancelled in order to allow for more time for the University of Oregon to work on getting the second citizen survey out. The survey was "advertised" in the May City Source to help get the word out. Young mentioned that at the last meeting the downtown committee reviewed maps of some possible lane configurations. Faught pointed out he thinks it is important to provide the Transportation Commission with those same maps to get an idea of what those possible lane configurations look like. Staff will provide the maps to the Commission at the May meeting. INFORMATIONAL ITEMS Action Summary Oregon Impact April Newsletter Traffic Crash Summary COMMISSION OPEN DISCUSSION *Anderson mentioned he would still like the Legal department to provide clarification on the Transportation Commissions' powers (recommendations made to Council vs. to the Public Works Director) *Anderson reminded staff that the TC would like to be represented on System Development Committee which would require a change to the ordinance. Faught said he hasn't had a chance to talk to the Mayor about it but he will. He did point out in the meantime Graff can still attend the meetings even if he isn't appointed. *Chair Young recommended staff request Egon to report to the Commission regarding bicycle safety since we will likely be applying for that grant again soon. *Anderson expressed some concern regarding the chip sealing and he pointed out he would like to see the TC be a part of the Congestion Mitigation and Air Quality (CMAQ)/Surface Transportation Program (STP) grant applications before they are submitted. FUTURE AGENDA TOPICS Transportation Comm'ssion Apr# 24, 2014 Page 3 of 4 Transportation Safety Public Outreach SOU Multi-Modal Future Siskiyou Blvd. Signal Timing ADJOURNMENT Meeting adjourned at 8:07 pm Respectfully submitted, Tami De Mille-Campos, Administrative Assistant Transportation Comrassion April 24, 2014 Page 4 014 Ashland Transportation System Plan October 2012 Intersection and Roadway Plan Policy #26 (l26) Eagle Mill Road The City of Ashland supports the following route as an alternative route around the downtown area to areas south and east of downtown from the I-5/Valley View Road interchange: Eagle Mill Road from Valley View Road to Oak Street, Oak Street from Valley View Road to Nevada Street, E Nevada Street from Oak Street to N Mountain Avenue, and North Mountain Avenue from E Nevada Street to E Main Street. The City of Ashland encourages Jackson County to make improvements to Eagle Mill Road on a similar timeframe to the City's Nevada Street Extension project. Intersection and Roadway Plan Studies Table 10-2 summarizes the preferred plan intersection and roadway related studies. Additional explanation regarding why the Study #7 (S7) was identified follows Table 10-2. Table 10-2 Refinement Plan Studies Priority Do trip !a (53) N Main Street (OR 99) Conduct access management spacing study and provide near-and Medium from Heiman street to long-term recommendations for improvement. (5-15 years) $75'000 Sheridan Street _ i (SS) Siskiyou Boulevard from Conduct access management spacing study and provide near-and Medium Ashland Street to Tolman long-term recommendations for improvement. (5-15 years) $75,000 Creek Road (56) Ashland Street (OR 66) Conduct access management spacing study and provide near-and Medium from Slskiyou Boulevard to $75,000 Tolman Creek Road long-term recommendations for improvement. (5-15 years) (S7) E Main Street from Conduct access management spacing study and provide near- and Low Slskiyou Boulevard to long-term recommendations for improvement. (15-25years) $75'000 Wightman5treet Conduct a transportation safety assessment In five years along (S9) Ashland Street (OR 66) Ashland Street (OR 66) between Clay Street and Washington Street to Medium $20000 Safety Study identify crash trends and/or patterns (if they exist) as well as (5-15 years) mitigations to reduce crashes. Evaluate pedestrian flows, crossing demand, and safety along Siskiyou Boulevard from Highway 66 to Beach Street. The study should evaluate the adequacy of the planned pedestrian Improvements (510) sisldyou Boulevard along Slskiyou Boulevard (the rectangular rapid-Bash beacons at Pedestrian Crossl ng crosswa lks a nd diagonal crossing at the lndlan3-Wightman High $35,000 Evaluation and Feasibility Intersection) once the new dormitory and dining hall are operational (0-5 years) Study for existing and future forecast pedestrian demand. The need, ideal location, feasibility and cost of a grade-separated crossing should be evaluated. This project Is a joint project with the city and SOU; not subject to development. High (0-5 years) $35,000 Medium (5-15 years) $245,000 Low (I5-25 years) $75,000 Development Driven 0 Total $355,000 134 Kittelson & Associates, Inc. ~I\~I Ashland Transportation System Plan Octaber2012 Intersectlon and Roadway Plan Table 10.3 Preferred Plan Intersection and Roadway Projects Reasons for the Mority (Project#) Name Description Project ~17imeline) cost (R2) N Main Street (OR Install atrafOcsignal at the Intersection 99)/Wlmer5tree6Hersey once MUTCD traffic volume or MUTOD Improve Safety, LOW $300000 Street Intersection crash warrants are met ° Improve Operations (15-25 Years) Improvements (RS) Uthla Way (OR 99 NB)/E improve visibility of signal heads. identify High Main Street intersection and install treatments to slow vehicles on Improve Safety (0-5 Years) $50,000 Improvements northbound approach (R6) Siskiyou Boulevard (OR Conduct a speed study. Identify and install High 99)/Tolman Creek Road speed reduction treatments on Improve Safety (0-5 Years) $61,000 Intersection Improvements northbound approach (R8) Ashland Street (OR Realign E Main Street approach to 66Knollon Main eliminate offset and install speed Improve Safety High Street eet $706,000 Improvements Intersection ctition reduction treatments ' (0-5 Years) (R9) Ashland Street (OR 66)/Oak Knoll Drive-E Main s Improve5afety, Low Street Intersection Install. roundabout Gateway to Urban $3,150,000 Area (1525 Years) Improvements (R11) Lithla Way (OR 99 NB)/Oak Street Intersection Install a traffic signal Improve Operations Low $200,OW Improvements (15-25 Years) (1132) Siskiyou Boulevard (OR 99)/Sherman Street Realign Sherman Street approach to Improve Street Development $391,000 Intersection Improvements eliminate offset Continuity Driven (1113) Siskiyou Boulevard (OR Reduce Conflicts, 99)/Park Street Intersection Realign Park Street approach to eliminate Improve Street Development $296,000 Improvements offset Continuity Driven (1114) Siskiyou Boulevard (OR Reduce Conflicts, 99)/Terra Avenue-Faith Avenue Realign Term Avenue approach to Improve Street Development $216,000 Intersectlon improvements eliminate offset ConBnuity Driven (R37) East Nevada Street Extend Nevada Street from Bear Creek to Balance Mobility High Extension Kestrel Parkway and Access 10-5 Years) $2,261,000 Extend Normal Avenue to E Main Street (R19) Normal Avenue Extension consistent with the LAMP Exit 14 Access Balance Mobility Medium $2705,000 Management on Ashland Street (OR 66); and Access (5-15 Years) Coordinate with Project K3. Extend Creek Drive from Meadow Drive to Development (R20) Creek Drive Extension Normal Avenue consistent with the IAMP Balance Mobility & Access Developer Exit 14 Access Management on Ashland and Access Management Responsibility Street (OR 66) Driven Construct a New Roadway from Clay Street to Tolman Creek Road consistent with the LAMP Exit 14 Access Development Management on Ashland Street (OR 66) if Facilitate Economic. (R22) New ROadway(8) and when Tolman Creek Manufactured Growth Balance &Access Developer Parkis redeveloped. The location ofthe Mobility and Access Management Responsibility connection shall be determined atthe Driven ' time of redevelopment of the manufactured home park. Facilitate Economic Development (1123) New Roadway (C) Construct a New ROadwayfrom McCall &Access Developer @ Drive to Engle Street Growth Balance Management Responsibility Mobility and Access , Driven GNy@ Construct a New Roadway to connect the Development (R24) Clear Creek Drive two existing segments of clear Creek Facilitate Economic &Access Extension - Drive providing a continuous east-west Growth Balance Management $2,505,000 Mobility and Access roadway between Oak Street and N Driven qq6 I,A I 137 ptte/son &Associate; Inc. F I i Ashland Transportation System Plan October 2012 intersection and Roadway Plan Reasons art e rianty (Project 0) Name Description Project T R. C imell a) Mountain Avenue Extend Washington Street to Tolman (R25) Washington Street Creek Road consistent with the TAMP Exit Facilitate Economic High Extension to Tolman Creek 14 Access Management on Ashland Street Growth Balance $1,055,000 Road (OR 66). This is a City funded project; not Mobility and Access ' (0-5 Years) developer driven. Construct a new roadway from E Main Development Facilitate Economic (R26) New Roadway (D) Street to Ashland Street ( 66) Growth Balance & Access $2,422,000 consistent with the IAMP Exit 14 Access management Management on Ashland Street (OR 66). Mobility and Access Driven (1127) Grizzly Drive Extension Extend Grizzly Drive from Jacquelyn Street Balance Mobility Development Developer to Clay Street and Access Driven Responsibility (R28) Mountain View Drive Extend Mountain View Dr-we from Balance Mobility Development Developer Extension Parkside Drive to Heiman Street and Access Driven Responsibility. Facilitate Economic Development (R29) Washington Street Extend Washington Street to Benson Way Growth Balance $1,301,000 Mobility and Access Driven (R30) Kirk Lane Extension Extend Kirk Lane to N Mountain Avenue Balance Mobility Development Developer and Access Driven Responsibility Extend Winner Street to Ashland Mine Balance Mobility Development (R31) Wimer Street Extension Road. The exact location of the street will $3,125,000 he refined at the time of annexation. and Access Driven (R32) Kestrel Parkway Extend Kestrel Parkway to N Mountain Balance Mobility' Development Developer Extension Avenue at Nepenthe Road and Access Driven Responsibility Extend Existing Adjacent Streets to Facilitate Economic D (R34) Railroad Development Property Provide Connectivity within, to and from Growth Balance Development Developer Development Driven Responsibility the property Mobility and Access Implement a temporary mad diet on N (R35) N Main Street Tempora Maln Street. Temporary road diet Includes Improve Safety, High Road Diet ry converting N Main Street to a two-lane Balance Mobility (0.5 Years) $160'000 roadway with a two-way center turn lane and Access and bicycle lanes In both directions Convert temporary road diet to (1336) N Main Street Implement permanent installation, which includes, at Improve. Safely, Medium Permanent Road Diet aminimum, signal modifications to the N Balance Mobility (5-15 Years) $200,000 Main Street/Maple Street and the N Main and Access Street/laurel Street Intersections Widen and reconstruct sidewalks with (R38) Ashland Street street trees, stormwaler planters and bus Improve Safety, 5treetscepe Enhancements shelters. Ashland Street/Walker Avenue Balance Mobility Medium $1,100,ODD (Siskiyou Boulevard to Walker Intersection enhancements to Include and Access (SAS Years) Avenue) concrete crosswalks, paving, and ornamental lights. [R39) Ashland Street Widen and reconstruct sidewalks with Improve Safety, Streetscape Enhancements Development (Walker Avenue to Normal street trees, stormwater planters and bus Balance Mobility Driven $1,300,000 shelters. and Access Avenue) Street reconstruction with flush curbs and (R40) Walker Avenue Festival soared concrete roadway surface. Street(Stskiyou Boulevard to Sidewalk treatments to include decorauve Support Pedestrian High $780,000 Ashland Street) bollards to delineated pedestrian space, Places Planning (0-5 Years) street trees, LID stormwaler facilities and ornamental lights. Widen and reconstruct sidewalks with street trees, stormwater planters and bus (Reek Ashland/Tolman shelters. Ashland Stree Creek Road Streetscetscape t/Tolman Creek Support Pedestrian Development $1,500,000 Road Intersection enhancements to Places Planning Driven Enhancements include concrete crosswalks, paving, and ornamental lights. jr- 138 8ittelson & Associates, Inc. Ashland Transportation System Plan ocfober2012 Intersection and Roadway Pion Widen and reconstruct sidesalks with (R42)E Maln Street/N street trees, stormwater planters and bus Mountain Avenue Streetsape shelters.EMain Street/N Mountain Support Pedestrian Development $1,500,000 Enhancements 'Avenue intersection enhancement with Places Planning Driven concrete crosswalks and paving and ornamental lights. Construct a new roadway from Mistletoe Facilitate Economic (R43) New Roadway (E) Road to Siskiyou Boulevard (OR 99) Growth Balance Development $4,322,000 consistent with the Croman Mill District MGrowta nd Balance Driven Plan Widen and reconstruct sidewalks with Road Tolman Creek-Mistletoe Facilitate Economic street trees, stormwater planters and bus Development Road etscape shelters consistent with the Croman Mill Growth Balance Driven $3,478,000 Enhance cements District standards. Mobility and Access Construct a new roadway from Facilitate Economic Washington Street to New Roadway (E) Development (R45J New Roadway (F) consistent with the Croman Mill District Growth Balance Driven $1,199,000 Plan; coordinate with Project X2. Mobility and Access (R46) Ivy Lane Extension Extend Ivy Lane west to Waterline Road Balance Mobility Development Developer and Access Driven Responsibility (R47) MaryJane Avenue Extend Mary Jane Avenue south to the Balance Mobility Development Developer Extension UGB then east to Clay Street and Access Driven Responsibility (148) Forest Street Extension Construct a new roadway that connects Balance Mobility Development Developer the two existing segments of Forest Street and Access Driven Responsibility (R49) Croman Mill District Construct new streets to provide Facilitate Economic Development Developer Streets connectivity within, to and from the Growth Balance Driven Responsibility Croman Mill District Mobility and Access High Priority(0-5 Years) $5,073,000 Medium Priority (5-15 Years) $4,005,000 Low Priority (15-25 Years) $3,650,OOD Development Driven $23,555,000 Total $38,047,000 Notes: 'Initial roundabout operations analysis and high-level feasibility assessment were performed to confirm a roundabout appears physically and operationally feasible. A more detailed preliminary roundabout design and study should be conducted before activities such as right-of-way acquisition and/or developing detailed design plans. It should also be noted that in November 2008, the State Traffic Engineer Issued a directive to ODOT staff to consider a roundabout as an alternative whenever a traffic signal was being consid Bred on the slate highway system. However, in March 2011, ODOT Issued updated guidance to staff that no roundabouts should be approved or designed by staff on the slate highway system due to concerns raised by the trucking industry. Subsequently, the requirement previously issued to evaluate roundabouts as an alternative to Iraffic signals was temporarily lifted. Currently, COOT is awaiting the results of a study being led by the Kansas Department of Transportation evaluating the effects of roundabouts on oversized loads. Upon completion of that study, the agency has Indicated that the current prohibition of roundabouts on the state system will be reconsidered. 'Cost estimates are for engineering and construction costs. They do not Include right-of-way. They are rounded to the nearest thousand dollars. The projects in Table 10-3 and Figure 10-3 were identified based on input received from the PMT, TAC, PC, and The intersection projects were also developed based on the 2034 future conditions analysis results, safety analysis results, rind planning-level feasibility assessments (e.g., is a roundabout physically possible, could the street actually be realigned given adjacent historic structures). The new roadway and roadway extension projects were identified from previous and/or related plans such as the 1998 TSP, the unadopted 2007 TSP update, and the Interchange Area Management Plan (LAMP) for Exit 14. The projects identified to support pedestrian places were documented as part of the Pedestrian Places planning activities. The Pedestrian Places planning is discussed further in the following section. „7 _y 139 Kittelson & Assoclotes, Inc. Ashland Transportation System Plan october2012 Intersection and Roadway Plan Railroad Crossing Projects Table 10-4 summarizes the preferred plan railroad crossing projects. They include one existing crossing upgrade and two new railroad crossing locations. Figure 10-3 illustrates the location of these railroad crossings. Appendix A contains the prospectus sheets for all preferred plan projects,' the prospectus sheets provide more detail regarding the project location, description, and images illustrating the vision for the completed project. Currently under Federal and ODOT rail policy, the City would need to close an existing at-grade crossing or go through a potentially timely and costly rail order process to obtain an additional new public crossing within Ashland. The City will pursue all possible alternatives to closing existing at-grade crossings including exceptions to the policies based on the low projected train volumes (currently none) and will consider grade separation of future crossings. Table 10-4 Railroad Crossing Projects nority, roject h) Name. ption Reasons for the P act Timeline Cost m Pursuea New At-Grade Ped/Blke Improve North-South (X1)4 StreetGrade Railroad Crossing at 4!" Street. Connectivity, Balance Development $275,000 Railroad Crossing Coordinate with Project TR4., Mobility and Access Driven Pursue a New At-Grade Railroad (X2) Washington Street At- Crossing at Washington street as part Facilitate Economic Growth, Development Grade Railroad Crossing ofthe Croman Mill Site Development. Balance Mobility and Access Driven $1,000,000 Coordinate with project 8451 Upgrade the existing at-grade Railroad (X3) Normal Avenue At- Improve North-South Grade Railroad Crossing crossing at Normal Avenue to public Connectivity, Balance Development $750,000 Upgrade crossing standards. Coordinate with Mobility and Axcm Driven Project R19. High Priority (0-5 Years) - Medium Priority (5-15 Years) - Low Priority (15- 25 Years) - Development Driven or Driven by Need based on Rail Order Outcomes $2,025,000 Total $2,025,000 Notes: 'Currently under Federal and ODOT rail policy, the City would need to close an existing at-grade crossing or go through a potentially timely and costly rail order process to obtain an additional new public crossing within Ashland. The City will pursue all possible alternatives to closing existing at-grade crossings Including exceptions to the policies based on the low projected train volumes (currently none) and will consider grade separation of future crossings. 'Planning level cost estimates are for construction and engineering of at-grade crossings and do not include right-of-way costs. 140 Kittelson & Assadates, Inc. l~.t~ CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Liquor License Application for Kevin Broadie dba Saltworks, LLC FROM: Barbara Christensen, City Recorder, christeb@ashland.or.us SUMMARY Approval of a Liquor License Application from Kevin Broadie dba Saltworks, LLC at 11 N 151 Street. BACKGROUND AND POLICY IMPLICATIONS: Application is for new license. The City has determined that the license application review by the city is set forth in AMC Chapter 6.32 which requires that a determination be made to determine if the applicant complies with the city's land use, business license and restaurant registration requirements (AMC Chapter 6.32). In May 1999, the council decided it would make the above recommendations on all liquor license applications. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Endorse the application with the following: The city has determined that the location of this business complies with the city's land use requirements and that the applicant has a business license and has registered as a restaurant, if applicable. The city council recommends that the OLCC proceed with the processing of this application. SUGGESTED MOTION: Under Consent agenda item, a motion to approve liquor license for Kevin Broadie dba. Saltworks, LLC. ATTACHMENTS: None Page I of I PE`, CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Ambulance Operator's License Renewal FROM: John Karns, Fire Chief, Ashland Fire & Rescue kamsi@ashland.or.us SUMMARY The Ashland Municipal Code requires that all ambulance service providers in the City obtain an ambulance operator's license. This is the Fire Department's request for renewal of its ambulance operator's license. BACKGROUND AND POLICY IMPLICATIONS: Ashland Municipal Code Chapter 6.40.110 requires ambulance service providers operating within the City of Ashland to apply annually for an ambulance operator's license. The Fire Department has provided emergency services in Ashland since 1885. From 1926 to 1936, the Fire Department operated the ambulance service in Ashland, and in 1936 the ambulance service was sold to Litwiller Funeral Home. The Fire Department obtained its first medical response vehicle (Rescue 9) through community donations in 1973, and began providing first response emergency medical services to the community. In January 1996, the City of Ashland purchased the Ashland Life Support Ambulance Company and Ashland Fire & Rescue began providing ambulance services within a 650 sq mile ambulance service area in south Jackson County, known as ASA III. Ambulance services in Oregon are regulated by county governments, and within the City of Ashland they are required to obtain an ambulance operator's license. This license is renewed on an annual basis. FISCAL IMPLICATIONS: The license fee is $300 plus $100 per ambulance, for a total of $800. Funds are budgeted in emergency medical services. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends renewal of the Ambulance Operator's License for Ashland Fire & Rescue. SUGGESTED MOTION: I move to approve the annual Ambulance Operator's License renewal for Ashland Fire & Rescue. ATTACHMENTS: Renewal application Page I of 1 Ir, CITY OF ASHLAND APPLICATION FOR AMBULANCE OPERATOR LICENSE AMC Ch. 6. 6.40 2014 Applicant's Name: CITY OF ASHLAND Trade Name, if any: ASHLAND FIRE & RESCUE Address: 455 Siskiyou Boulevard Ashland OR 97520 Telephone number: 541 482-2770 Ambulance descriptions Manufacturer Vin # License # 1. 1999 FORD LIFELINE 1FDXE40F2XHAO0469 EXEMPT 2. 2003 FORD LIFELINE 1FDXF47F63EA10341 EXEMPT 3. 2006 FORD LIFELINE 1FDXF47P06ED06467 EXEMPT 4. 2008 FORD LIFELINE 1 FDXF47R48ED90832 EXEMPT 5.2011 FORD LIFELINE 1 FDUF4HTOBEC53861 EXEMPT ❑ Attach information showing that every proposed driver, attendant and driver- attendant is qualified as required in Ashland Municipal Code Chapter 6.40 and as required by the laws of the State of Oregon. ❑ Enclose with the application, the initial license fee of $300 plus $100 per ambulance. ❑ Enclose a performance bond in the amount of $500,000. ❑ Enclose an insurance policy meeting the requirements of AMC §6.40.110.7. Attach additional pages as necessary. Explain any box not checked. Submit your application and required enclosures to Barbara Christensen, City Recorder, City Hall, 20 East Main Street, Ashland, Oregon 97520. , 1 certify that each ambulance listed above is adequate and safe for the purposes for which it is to be used and that it is equipped as required by Ashland Municipal Code Chapter 6.40 and the laws of the State of Oregon. Signature: Print name: Greg I. Case Title: Division Chief Date: 05-23-2013 C:\Users\shipletd\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\HIW4ND5C\2014 Lic renewal.doc April 10, 2009 CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Award of Contract to Apparent Low Bidder for the Lori Lane Alley Connection Project FROM: Scott A. Fleury, Engineering Services Manager, Public Works/Engineering, fleur s n ashland.or.us SUMMARY The Council is asked to approve a construction contract for the N. Main to Lori Lane alley connection project. Bids were received from five contractors with Pilot Rock Excavation providing the low bid. BACKGROUND AND POLICY IMPLICATIONS: Proiect Description: The project will create a 16 foot wide alley connection between N. Main St. and Lori In. adjacent to the City owned property at 430 N. Main. The City negotiated an access easement across the property to the north of the City lot during the Hersey/Wimer intersection realignment process in order to create this connection. The project includes removal and replacement of an asphalt surface, curb and gutter and installation of a new concrete sidewalk. The connection was not originally designed during the intersection realignment process as the access easement was being negotiated at that time. Once the access easement was finalized engineering hired CEC Engineers to perform necessary surveying and design work for the alley connection. Bidding. Procedure: The Lori Lane alley extension was publicly bid on April 10, 2014. The project was publicly bid in the Mail Tribune and the Daily Journal of Commerce. In addition, project plans and specifications were sent to several plan centers and were also posted on the City's website. Bids were opened on May 8, 2014 at 2:00 p.m. with five contractors responding. All five bids were valid and contained the required bonds, documentation, and acknowledgements. Bidding information is shown on the attached proposal summary form. FISCAL IMPLICATIONS: The alley extension project will be funded through the Street Department capital improvement fund. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends the Council accept the bid and authorize the award of contract with Pilot Rock Excavation in the amount of $35,023.50 for the alley extension project. SUGGESTED MOTION: Move to approve the bid and award of contract to Pilot Rock Excavation in the amount of $35,023.50 for the Alley connection project. Page 1 of 2 r, CITY OF ASHLAND ATTACHMENTS: 1. Bid Summary 2. Alley Extension Engineering Plans Page 2 of 2 Ir, C O_ a+ V U U s°. O O .L y ~ ~ U O U ~ ¢ O M U C z O O U Q T N X U A 'O O M r~ C Chi M 0. 0 ~ v N O ~O G V O a ~ 3 0 N w O 0 T U ~ O 3 u~u O y T r rn ~ tOC o 1~1 M C C G° U •O O /4 O 7 p v° U o U U ° o O ° > Q w x o a T 1 ~ ~ _T C E r N c0 R v F-1 F~ V ° o o u U a`"i o N O 7 N W~ T~ ~ u a ° Q O T ttl• b4 ~ 7 [n O U R ~ d R c o U 0 0 p o ~ Qi o N c 3 X M H cC o 0 O K Q N LL U N C 0. 0 ~ c O O ~ O W M 00 U in G O ~ N Gn U z O 7 c Q O- O a tb r T U U N v • z w¢ v.. o 'a 3 r w 3 E E G O C .D Y 0..0.MZ z V] zm QO]QQ U eels-au (ns) xra- eats-a« (»s) 'ua :ova :a3waddr IOULO Nvj4uv 'udwuAW. 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'X,} f y nn"n$u n 6E 1 6E n ehgg x > E @ g @ •Y 55, Be s w ~ nreb , 'a a ~`2R a c~ gvd`"a~EgeaE y~ e Wy i t s3 'o a S39 %sue". 6? dS e 9 H Nn H . 3 EE yg 9q Y f` Atltli} R 55mg qp b 5g f 69 s 59 C¢`i~ yp£ m tl@ - !v y E666 $ E685 U~1 :3:69= ESAufr a 'v CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting A Resolution Establishing Rates for the Ashland Municipal Airport and Repealing Resolution 2013-16 FROM: Scott A. Fleury, Engineering Services Manager, Public Works Department, fleurys@ashland.or.us SUMMARY One of the Airport Commission's goals is to generate sufficient revenues through Airport fees and rates to operate the Airport with minimal or no general fund subsidies. To that end, the Airport Commission is recommending the adoption of a Resolution that increases various hangar, ground lease, tie-down, freight and fuel flowage rates. BACKGROUND AND POLICY IMPLICATIONS: The Ashland Municipal Airport, established in 1965, is a City-owned facility consisting of 56 hangars and 120 airplane tie-down spaces. The Airport currently supports approximately 86 aircraft. In addition, the Airport provides fueling, aircraft maintenance and repair facilities operated by Skinner Aviation, the sole fixed base operator (FBO). Airport revenue is generated from hangar rentals, ground leases, fuel flowage fees, tariffs from freight operations, nightly and monthly tie-downs and Specialized Aviation Service Operator (SASO) agreements. Currently SASO agreements are in place for three companies that perform different commercial operations at the Airport. The FBO is responsible for collecting and monitoring these fees and has been performing this duty since 1993 (on contract with the City). The City rents 32 hangars on a month-month basis and has ground lease agreements with an additional 14 individuals. Revenue from the hangar rentals and leases provide a monthly stream of income, while the income from tie- downs and fuel flowage is cyclical and fluctuates during the tourist season. Each spring, the Airport Commission evaluates the existing rates and makes a recommendation to the City Council to adjust fees as needed. The current rate policy structure includes rates for the following: • aircraft tie-downs • City owned T-hangars without doors • City owned T-hangars with doors • City owned Box hangars with doors and amenities • privately built and owned hangars with a ground lease • privately built hangars that are deeded to the City with a ground lease The City offers two options for hangar construction and ground leasing at the Ashland Airport. One is to build a hangar and keep ownership of the hangar while leasing the ground from the City. The second Page 1 of 2 11FAI, CITY OF ASHLAND option is to construct a hangar and deed it to the City and lease the ground for a specified term, typically 20-25 years. The ground lease rates for these options differ by over 50%. In order to develop the 2014 (FYI 5) pricing policy, City staff presented the January 2014 CPI-U to the Commission and asked for an open discussion regarding any rate changes. The January CPI-U adjusts ground leases automatically and gives the Commission a baseline number to look at with regards to rental rate increases. The Commission motioned to recommend adjusting all rental except the shade hangar rate by the CPI-U rounded down to the nearest dollar. Motion to recommend rates increase passed unanimously. FISCAL IMPLICATIONS: By approving the recommended airport rate resolution the Airport will generate revenue to maintain self-sufficiency within its appropriated yearly budget. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that the City Council approve the resolution titled, "Resolution Establishing Rates for the Ashland Municipal Airport, and repealing Resolution 2013-16. " SUGGESTED MOTION: Move to approve the Resolution "Resolution Establishing Rates for the Ashland Municipal Airport, and Repealing Resolution 2013-16." ATTACHMENTS: Draft Resolution Rate Sheet FY 2014 (attachment to the resolution) May 6, 2014 Airport Commission Meeting Minutes Page 2 of 2 RESOLUTION NO. 2014- A RESOLUTION ESTABLISHING RATES FOR THE ASHLAND MUNICIPAL AIRPORT, AND REPEALING RESOLUTION 2013-16 RECITALS: A. The Airport Commission reviewed established airport rates and recommended increasing current airport rates. B. The City has determined it is necessary to increase user rates for aircraft hangar rentals, hangar ground leases, freight charges and aircraft tie downs. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. Effective July 1, 2014, unless otherwise provided by an agreement or lease, the rates shown on "Exhibit A" are established for facilities at the Ashland Municipal Airport. SECTION 2. Classification of the fees specified in Section 1 of this resolution are classified as not subject to the limits of Section I IB of Article XI of the Oregon Constitution (Ballot Measure 5). SECTION 3. Resolution No. 13-16 is repealed on the effective date of this Resolution. SECTION 4. This resolution was duly PASSED and ADOPTED this day of , 2014, and takes effect upon signing by the Mayor. This resolution was duly PASSED and ADOPTED this day of 2014, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of 2014. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. 2013- Page 1 of 1 C y w w c ~ O O C E C C M ° a n 0 0 W ° o ~ c m rn O O ¢ c c O O w 00 ~ T J 00C 0 0aa fA UH w C, m c U W F 8 x 2 /1 x O N F- 'D Cj (o N 00 0 4 e} Z CJC- O =ZZ O 00 00 N Z,- Q J N ci (6 V ° LL U Q R~ z a ~-0 2 U) (V 6 mo O O ?i p U) r-~ O 0 cod co N b9 N CL U W CD w F- y m a -J N V Mn o Q N w r U - CIA x .,~0 00 N CL M b m 3 ~w 'a w N E Q O N 0 c v H a 0 to Q O N Ur N O G>v Jc, 0 M w ~p C x N U m ¢ co c L N Q a 2' m N w z O? d O W < N ¢ Q Z v p a V LL IL O m ° aci U' O W w x c W F w g c E Q O Z U o m d- o w co m° 3 Q e m _ x F= Q N F Z C N O J a co W? O Q L N d w 2_ J M 0 as -j o > U F 'O W Z o v U ~'y + Z F ° 3 m o w 3 = o in O ¢ O 0 j000<-J z Z z g U a F Z O❑0 z J o 2> a.n p w o F T- < U) C o W w w z U m O w fA W N LL D o m m W_ ¢ Q Q p Z Cf ly wFCD= U N'o J J J} a m CD U0 Oa U O xm 2 Z Z Z Z F z } ZZZU2 c O F n D n Q zi F 222~xE c0i.c`~.. Z w O O O> 'E w 0 io 0 O> R a U FHl=xma Omx O C7 c) 0 a g Y Q m U n C13 3 M CL m N 0 U) Y ` 0 O J O O aj 0) C) c m O CL o 2 N O m Q o c°fl m o 00 aj `o CY, .0 C =cu mm o ~ L N > L CU a) co - M a 3 0 M m~ ~w c w E2 d M a M U c a) J m O m O w E m m J m H N 0 a) a w_ N O C 0 ' t: N m O a p U N m 0 aEi 3 0 c m -ffi m ` c D 3 7 N c c m - m r 3 m O N L N c YO c U 7 N0c Q a>> =ac m c3 .c M 3 Y U c Co D C Z O W N Q I 0 O m L W TL U E m E E N U.M W m 7 > y w O a LL m E o U N O J O U N Q 0-0 O m N O C a co N 7- Co N E c -O N O E" EA N 0 a Y c 09= ZcoE 7-o Q m3 _g dm N O C a) E o CU 'C L ~ T a '60) 2 L O m v a) 0 of ~ a) P 3 0 ow E W a~ Q o~ m L a - -o c c 75 0 o, O Q m a Q oa vZ W : _ v> E o 72 EY m roc U E~ of6 aD nd v 0 0 `m E U) co c W c m W °Ocj m U)L c OwH o 4) E? u>c Z a~ m > OO LL OC Wen 1 co oZ O Z 0).y 3 a'c0 ~ow a°o°o O mm LL M-0 Q m o W oo N cLi m 0.20) ~ Q m a) U~~ 9 w d LLJ jm ca E W 2y0 W LL ua a J N J" 'R 0 (A N v z W m a mm W m a) co = m` cn Of 'a c a M` J LL W M= m U ND U' ~ ) CF m o N m E a c ' Mu =°m jL O m 0a) q QI-f7E u>Hm 5 0 LL y v m U U J Z U ¢ ~ > Q L n Z 3 t 0 -1 ASHLAND AIRPORT COMMISSION May 6, 2014 MINUTES Members Present: Bob Skinner, David Wolske, Richard Hendrickson, Susan Moen, Alan DeBoer, Mike Morris and Elizabeth Tripp Staff: Scott Fleury, Members Absent: Nicole Doran, Lincoln Zeve, Bill Skillman Visitors: David Ridsdale CALL TO ORDER: 9:31 AM 1. APPROVAL OF MINUTES: March 4, 2014 motion by Hendrickson for approval, second by Moen, minutes approved as written. 2. Agenda Item Addition: None 3. Public Forum: No public discussion. 4. OLD BUSINESS: A. FBO Lease: Staff has received Skinners comments in writing and plans to create a master copy of edits to review again with Legal and Skinner before the lease is finalized. Staff expects to edit lease in May and return to Skinner to verify all issues are appropriately addressed. Staff needs to meet with Legal to discuss the living wage requirement and which employees of Skinners it applies to if any. Also, staff needs to discuss the pollution insurance requirement and if Skinners fuel supplier's underwriter of $50,000,000 covers the onsite spill requirement. B. AIP/Hangar Door: Staff informs Commission 90% plans and specifications have been developed by the consultant. Staff to have onsite meeting and go over plans/specs and review comments with Precision Approach Engineering shortly. Once FAA and staff approve of specs and plans the project will be advertised for bid. FAA would like to see the project bid opening in June in order to award a construction grant. Staff shows Commission grading plan sheet that shows taxilane layout. C. Airport Zoning: Staff is still trying to setup a meeting with Severson to start project of updating code. Commission reiterates to Councilor Morris the importance of getting this done as if effects potential development onsite due to variances that must be obtained to build a hangar, in order to comply with the land use code. D. Airport Policies: Staff asks for any additions or clarifications to policy document. Staff added pet and camping policy as requested previously. No other changes or modifications request. C:\Users\hamhmab.AFNHE\AppData\Local\Micrmofl\Windows\Temporary Internet Files\Content.Outlook\4S6OM6YV\060314 Airport 1 Commission May 6 2014 Minutes Atch2.doc 5. NEW BUSINESS: A. Commercial Hangar Tie Down Parking: David Ridsdale of JLC Avionics in attendance to discuss use of airport tie downs for business parking. Current operations occasionally require more parking than is available in or directly outside of the hangar. Ridsdale in the past has used tie down spaces on the ramp adjacent to Sky's hangar. Ridsdale is looking for parking options when multiple customers are onsite for more than one day. Skinner stated he has previously spoken with JLC about this issue and mentions one option is to rent a tie down space on a monthly basis to use as needed. Another option is to amend the SASO lease and add a tie down without additional charges similar to Skinner's agreement. Ridsdale believes that Sky's (Sierra Romeo) has something similar in their lease that allows for tie down space on the ramp. JLC believes they bring in positive traffic to the airport through their business operations and do not believe a fee is warranted for the one tie down space on an as needed basis. Motion be DeBoer: Amend SASO for Commercial Operators to include the equivalent of one free tie down per month (31 days) for customer airplanes only with parking location to be determined by FBO. 2nd by Moen, all approved. Staff asks if this should also be included in the policy document will SASO amendments occur? Commission agrees language regarding tie down parking should be included in policy document. B. Airport Good Neighbor Items: Staff informs Commission of noise complaint from lower Clay St. regarding jet noise. Their main concern was this becoming more of a daily event and increasing in the years to come. Staff informed this individual that one operator owns a jet, but the airport runway length does not allow for larger jet aircraft landing and thus this operation should be limited in the future. Commission believes the jet noise would be reduced if they pilot maintains runway heading until the 3000 foot elevation is achieved. Skinner will mention this to operator. Skinner states a couple of complaints were received regarding helicopter operations during the past month. One was in respect to the early morning search and rescue operation in the watershed that recently occurred and the other was regarding training and check ride operations. Skinner states that many of the issues were developed from offsite operators working at the Airport. C. Rate Policy Recommendation: Staff goes over rate sheet and points out the fees that can be recommended to Council for adjustment. The monthly rental fees and tie downs are up for discussion with respect to adjustment. The ground lease and SASO fees are automatically adjusted through the lease agreements. Staff states the CPI-U for January was 1.58%. Motion by Moen: Accept CPI-U increase rounded down to the nearest dollar for monthly rental fees. 2nd by Hendrickson. Commission discusses shade hangars and how 1-2 are vacant currently and the hardest to rent. Moen amends motion to keep shade hangars at 5180, Hendrickson accepts amendment. DeBoer declares a potential conflict of interest as he rents hangars at the airport. All approved C:\Users\harshmab.AFNHE\AppData\LocahMicrosoft\Windows\Temporary Internet Files\Content.Outlook\4S6OM6YV\060314 Airport 2 Commission May 6 2014 Minutes Atch2.doc 6. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport, Financial Report, Review of Safety Reports: Skinner states the weeds are really taking over and they need to be sprayed. Staff states he will contact Street Department to develop an appropriate time to spray now that spring is in full force. Proper notice will be passed on to Commission and users of times and dates for spraying onsite. Once the weeds are sprayed all the cracks must be sealed by the Street crew as well. In addition staff will discuss onsite mowing with Streets as a precursor to fire season. B. Maintenance Updates: Commission inquires into status of Fire Department training container. Staff states now that the most recent training has been completed they will work on relocating the container to Nevada St. within an electric storage yard. The owner of a truck parked in the public lot has been identified and Skinner has asked them to move it into long term parking. C. Brown Bag: No update D. Transportation Commission: No update. E. Medford Airport: No update. F. Action Item List: Hangar door project and avigation easement removed. G. Airport Day/Marketing: Hendrickson discusses Airport Day preparation with Commission. A pancake breakfast and BBQ lunch is scheduled. ODFW will have a truck onsite. Staff is working to see if the Ashland Fire Department can have a truck onsite as well. Brim will provide helicopter rides and the antique biplane will also provide rides. There will be an announcer onsite and the Civil Air Patrol will provide marshalling services during the day. Staff has is getting the banner updated, has porta potty's reserved and is working on obtaining tables and chairs for the event in addition to obtaining cones the CAP can use for traffic and pedestrian control. Commission would like to see area mowed as well and maybe the sweeper to make a pass through to tidy the site up. Staff will also try and arrange these items. Hendrickson also states the Chamber will hold their board meeting onsite this coming Friday in his hangar in order to talk about airport day and airport marketing in general. Hendrickson will need additional volunteers to help with the event as he has previously asked for through email and direct contact. Staff and Hendrickson are scheduled to give a brief presentation before the City Council tonight on airport day festivities. H. Airport Users Group: No update. OTHER: The meeting of the JC airport commission is the third Monday of the month at 12:00 PM. NEXT MEETING DATE: June 3, beginning at 9:30 AM ADJOURN: Meeting adjourned at I l :I3AM C:\Usem\hamhmab.AFNHE\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\4S6OM6y\/\060314 Airport 3 Commission May 6 2014 Minutes Atch2.doc CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Ratification of five-year labor contract with the Laborers' International Union of North America Local No. 121 FROM Tina Gray, Human Resources Manager, tina.gray@ashland.or.us SUMMARY The existing three-year contract with the Laborers Union expires on June 30, 2014. The bargaining teams were able to reach tentative agreement and both parties were interested in extending the contract two additional years for a five-year contract. The contract is a continuation of the existing agreement, with modifications as described below. BACKGROUND AND POLICY IMPLICATIONS: The current labor contract with the Laborers' union expires on June 30, 2014. The City reached tentative agreement with this bargaining group outlined below. Previous Contract Proposed in New Contract ~ Ill 3-Year Contract 5-fear Contract Boot Allowance: Reimbursement of up to Boot Allowance: Reimbursement of up to $100 every other year with a maximum of $+7>50/contract period, purchases of over $•200 in a $200 for the contract period. FY must be pre-approved. Purchase can include orthotics, insoles, weather-related footwear/ *ear. Duty Pay: 6% of employee's normal monthly Duty Pay: 7% of employyee's normal monthly pay, pay, with an additional 3% if holiday falls with an additional 3% if holiday falls during on- durin on-call period call eriodi 2% COLA per year with a re-opener if CPI COLA effective 7,/1/14; outlying years went over 3.5%. X3.5% based on C•PI-W Average Jan-Jan Employees in the bargaining unit agreed to Clean-up health insurance article and add language support the move to self insurance for regarding sebf-insured health plan and insurance healthcare by MOU. The contract was signed committee. effective 7/1/2011 which was prior to the change to self-insurance. N/A Long ity Pay: @ 20 years of service with the City one-titae cash payment of $1,000. Employee may pt to cpt the Longevity pay into his/her rdeferred com ensation account for retirement. . Page 1 of 2 ~r, CITY OF ASHLAND FISCAL IMPLICATIONS: • The current budget anticipated a 2% COLA for this bargaining group effective 7/l/2014. • Ten employees will qualify for longevity pay on July 1, 2014. This represents a new one-time expenditure of $10,000. • The boot allowance is an increase of $50/year over what is currently offered to employees in the bargaining unit. It is difficult to anticipate how many employees will take advantage of the reimbursement as current utilization is not 100%. Employees working under this contract work in all weather conditions and often require multiple boots to accomplish the work safely. • The duty pay increase from 6% to 7% equates to an increase of approximately $40/week for the employees who are on-call. The additional compensation is recognition of the impact on family & personal life and the restrictions that come with being on-call. Employees working under this contract are funded in multiple funds in the Public Works Department, and staff is confident the increases called for in the new contract for the current year can be accomplished within the current budget. A five-year agreement allows the City to anticipate future expenses and budget appropriately for the remaining years of the labor agreement. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends that the Council authorize the City Administrator and Mayor to sign the five-year labor contract, ratifying the tentative agreements reached in negotiations. SUGGESTED MOTION: Move approval of the labor agreement between the City of Ashland and the Laborers' Union and authorize the City Administrator and Mayor to sign the labor contract, ratifying the tentative agreement reached in negotiations. ATTACHMENTS: Proposed contract for Laborers' Union Page 2 of 2 Mr, AGREEMENT BETWEEN THE CITY OF ASHLAND, OREGON and DISTRICT COUNCIL OF LABORERS and LABORERS UNION LOCAL 121 July 1, 2014 - June 30, 2019 TABLE OF CONTENTS PREAMBLE ..........................................................................................................................................5 SCOPE OF AGREEMENT ...................................................................................................................5 ARTICLE I - RECOGNITION ...............................................................................................................5 ARTICLE II- UNION SECURITY AND CHECK-OFF ...........................................................................6 Section 1. Union Security ....................................................................................................6 Section 2. Check-off for Union Members ..........................................................................6 Section 3. Check-off for Non-Members .............................................................................6 Section 4. Indemnification ...................................................................................................6 ARTICLE III - MANAGEMENT RIGHTS ..............................................................................................7 ARTICLE IV - STRIKE AND LOCKOUT PROHIBITION ....................................................................8 ARTICLE V - HOLIDAYS .....................................................................................................................8 Section 1. Recognized Holidays .........................................................................................8 Section 2. Holiday Pay .........................................................................................................9 Section 3. Holiday Work ......................................................................................................9 ARTICLE VI -VACATIONS ..................................................................................................................9 Section 1. Eligibility ..............................................................................................................9 Section 2. Continuous Service ..........................................................................................9 Section 3. Use of accrued vacation time ..........................................................................9 Section 4. Accrual Notification .........................................................................................10 Section 5. Scheduling ........................................................................................................10 Section 6. Payment on Termination ...................................................................................11 ARTICLE VII - HOURS OF WORK ....................................................................................................11 Section 1. Workweek ..........................................................................................................11 Section 2. Hours ...................................................................................................................11 Section 3. Work Schedules ...............................................................................................11 Section 4. Rest Periods .....................................................................................................11 Section 5. Meal Periods .....................................................................................................12 ARTICLE Vlll - SICK LEAVE .............................................................................................................12 Section 1. Accumulation ....................................................................................................12 Section 2. Utilization for Illness or Injury ........................................................................12 Section 3. Integration with Worker's Compensation .....................................................12 Section 4. Sick Leave Without Pay ...................................................................................12 2014-2019 Laborer's Contract Page 2 Section 5. Termination .......................................................................................................13 Section 6. Compensation for Not Using Sick Leave ......................................................13 Section 7. Use for Family Illness ........................................................................................13 ARTICLE IX - FUNERAL LEAVE ......................................................................................................13 Section 1. Funeral Leave ...................................................................................................13 ARTICLE X - OTHER LEAVES OF ABSENCE .................................................................................13 Section 1. Leaves of Absence Without Pay .....................................................................13 Section 2. Jury Duty ...........................................................................................................14 Section 3. Appearances .....................................................................................................14 Section 4. Required Court Appearances ........................................................................14 Section 5. Election Day ......................................................................................................14 Section 6. Union Business ................................................................................................14 Section 7. Educational Leave ............................................................................................14 Section 8. Military Leave ....................................................................................................15 Section 9. Failure to Return From Leave .........................................................................15 ARTICLE XI - COMPENSATION .......................................................................................................15 Section 1. Pay Schedule ....................................................................................................15 Section 2. Pay Periods .......................................................................................................15 Section 3. Call-Back Time . 15 Section 4. Overtime ............................................................................................................16 Section 5. Over-time Compensation ................................................................................16 Section 6. Standby Pay ......................................................................................................16 Section 7. Certification-Pay .................................................................................................17 Section 8. Mileage ..............................................................................................................17 Section 9. Working Out of Class .......................................................................................17 Section 10. Longevity Pay ...................................................................................................17 ARTICLE XII - DISCIPLINE AND DISCHARGE ................................................................................18 Section 1. Discipline ..........................................................................................................18 Section 2. Discharge ..........................................................................................................18 ARTICLE XIII - SETTLEMENT OF DISPUTES .................................................................................19 Section 1. Grievance and Arbitration Procedure ............................................................19 Section 2. Stewards ...........................................................................................................20 ARTICLE XIV - SENIORITY ...............................................................................................................21 ARTICLE XV - GENERAL PROVISIONS ..........................................................................................23 Section 1. No Discrimination ............................................................................................23 20142019 Laborer's Contract Page 3 J Section 2. Bulletin Boards .................................................................................................23 Section 3. Visits by Union Representatives ....................................................................23 Section 4. Solicitation ..........................................................................................................24 Section 5. Existing Conditions .........................................................................................24 Section 6. Rules .....................................................................................................24 Section 7. Other Employment ...........................................................................................24 Section 8. Supervisory Employees ..................................................................................24 Section 9. Uniforms, Protective Clothing and Devices ..................................................24 Section 10. Response Time Requirement .......................................................................25 Section 11. Safety Committee ...........................................................................................25 Section 12. Training Opportunities ..................................................................................25 Section 13. Temporary Employees ...................................................................................25 ARTICLE XVI - HEALTH, WELFARE AND RETIREMENT ..............................................................25 Section 1. Health and Welfare ...........................................................................................25 ARTICLE XVIII - WORKER'S COMPENSATION ..............................................................................26 Section 1. Worker's Compensation ..................................................................................26 Section 2. Supplementary Payment .................................................................................26 ARTICLE XIX - LIABILITY INSURANCE ..........................................................................................27 Section 1. Liability Insurance ............................................................................................27 Section 2. Property Insurance ..........................................................................................27 ARTICLE XX - SAVINGS CLAUSE AND FUNDING ........................................................................27 Section 1. Savings Clause ..................................................................................................27 Section 2. Funding .............................................................................................................27 ARTICLE XXI - TERMINATION AND REOPENING .........................................................................28 2014-2019 Laborer's Contract Page 4 AGREEMENT BETWEEN THE CITY OF ASHLAND, OREGON and DISTRICT COUNCIL OF LABORERS and LABORERS UNION LOCAL 121 PREAMBLE This Agreement is entered into by the City of Ashland, Oregon, hereinafter referred to as the "City", and Oregon, Southern Idaho District Council of Laborers International Union of North America-, AFL-CIO, hereinafter collectively referred to as the "Union". Unless indicated otherwise, references to the "City" herein shall include the Mayor and City Council or their designee(s) as the officials directly responsible for the operation of the department(s) covered by this Agreement. The purpose of this Agreement is to set forth the fall and complete Agreement between the parties on the matters pertaining to rates of pay, hours of work and other conditions of employment. SCOPE OF AGREEMENT This Agreement shall include employees of the Public Works and Cemetery Departments, Ashland, Oregon, as set forth in Appendix "A" but excluding supervisory employees, confidential employees, clerical employees, guards, part-time employees, or temporary employees. Where the term "employee" is used, it shall mean regular employees or probationary employees within the bargaining unit, as the same are defined in Article XIV hereof. The parties agree as follows: ARTICLE I - RECOGNITION The City recognizes the Union as the sole and exclusive bargaining agent for the purpose of establishing rates of pay, hours of work and other conditions of employment for all employees within the bargaining unit described immediately above. 2014-2019 Laborer's Contract Page 5 ARTICLE II- UNION SECURITY AND CHECK-OFF Section 1. Union Security. The terms of this Agreement have been made for all employees in the bargaining unit and not only for the members of the Union. Accordingly, it is fair that each employee in the bargaining unit pays his/her own way and assume his/her obligation along with the grant of equal benefits. Any employee in the bargaining unit who has not joined the Union within thirty (30) days of this Agreement, or within thirty (30) days of becoming an employee, shall as a condition of employment, pay to the Union an amount equal to the uniform dues and initiation fees required of members of the Union. Any individual employee objection based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member, will require such an employee to inform the City and Union of his/her objection. The employee will meet with representatives of the Union and establish a satisfactory arrangement for distribution of a contribution of an amount of money equivalent to regular Union membership dues to a non-religious charity. Section 2. Check-off for Union Members. Upon receipt of a lawfully executed authorization from an employee, the City agrees to deduct the regular monthly dues uniformly required of members of the Union, and remit such deductions by the fifteenth (15th) of the succeeding month to the official designated by the Union in writing to receive such deductions. The Union will notify the City in writing of the exact amount of such regular membership dues to be deducted. Authorization by the employee shall be on forms furnished by the City and may be revoked by the employee upon request. Employees terminating with less than ten (10) working days in any calendar month will not be subject to a dues deduction. Section 3. Check-off for Non-Members. A like amount in lieu of Union dues will be automatically deducted from all employees in the bargaining unit as set forth in Appendix "A" who have not signed an authorization form requesting the deduction of Union initiation fees and monthly dues. Such deduction will be remitted along with amounts deducted from Union members as set forth in Section 2. It is understood that the like amount in lieu of dues shall only be used as directed by the Constitution and By-laws of the Union and by the majority vote of the Union membership. Employees terminating with less than ten (10) working days in any calendar month will not be subject to an in lieu dues deduction. Section 4. Indemnification. The Union agrees to indemnify and hold the City harmless against any and all claims, orders, or judgments brought or issued against the City as a result of any action taken or not taken by the City under the provisions of this article. Upon written notification by the Union of a check-off error, the City will make adjustments within sixty (60) days of receipt of such notification. 2014-2019 Laborer's Contract Page 6 ARTICLE III - MANAGEMENT RIGHTS Union recognizes the prerogative of City to operate and manage its affairs in all respects in accordance with its responsibilities, and the powers or authority which City has not expressly abridged, delegated or modified by this Agreement are retained by City. It is understood and agreed that City possesses the sole and exclusive right to operate the City through its City Administrator and department heads and that all management rights repose in it, but such rights must be exercised consistent with the other provisions of this contract. These rights include but are not limited to the following: 1. To determine the mission of its constituent departments, commissions and boards. 2. To set standards of services. 3. To direct its employees. 4. To discipline or discharge for just cause. 5. To relieve its employees from duty because of lack of work, finances or other legitimate reasons. 6. To maintain the efficiency of governmental operations. 7. To determine the methods, means and personnel by which government operations are to be conducted; except that the City will not contract any work which is ordinarily done by its regular employees for the specific purpose of laying off or demoting such employees, and will furnish the Union with a copy of any contract entered into involving work covered by this contract. 8. To determine the content of job classifications. 9. To take all necessary action to carry out its mission in emergencies, and 10. To exercise complete control and discretion over its organization and the technology of performing its work. 2014-2019 Laborer's Contract Page 7 ARTICLE IV - STRIKE AND LOCKOUT PROHIBITION Section 1. The Union and its members, as individuals or as a group, will not initiate, cause, permit or participate or join in any strike, work stoppage, or slowdown, picketing, or any other restriction of work at any location in the City. Employees in the bargaining unit, while acting in the course of their employment, shall not honor any picket line established in the City by the Union or by any other labor organization when called upon to cross the picket line in the line of duty. Disciplinary action, including discharge may be taken by the City against any employee or employees engaged in a violation of this Article. Such disciplinary action may be undertaken selectively at the option of the City and shall not preclude or restrict recourse to any other remedies, including an action for damages, which may be available to the City. Section 2. In the event of a strike, work stoppage, slowdown, picketing, observance of a picket line, or other restriction of work in any form, either on the basis of individual choice or collective employee conduct, the Union will immediately upon notification, attempt to secure an immediate and orderly return to work. This obligation and the obligations set forth in Section 1 above shall not be affected or limited by the subject matter involved in the dispute giving rise to the stoppage or by whether such subject matter is or is not subject to the grievance and arbitration provision of this Agreement. Section 3. There will be no lockout of employees in the unit by the City as a consequence of any dispute with the Union arising during the period of this Agreement. ARTICLE V - HOLIDAYS Section 1. Recognized Holidays. The following shall be recognized as Holidays: New Year's Day (January 1) Martin Luther King, Jr.'s Birthday (3rd Monday in January) Washington's Birthday (3rd Monday in February) Memorial Day (last Monday in May) Independence Day (July 4) Labor Day (1 st Monday in September) Veterans' Day (November 11) Thanksgiving Day (4th Thursday in November) Day after Thanksgiving Day (in-lieu of Lincoln's Birthday) Christmas Day (December 25) Whenever a Holiday shall fall on Sunday, the succeeding Monday shall be observed as a Holiday. Whenever a Holiday shall fall on Saturday, the preceding Friday shall be observed as the Holiday. If an employee is on authorized vacation, sick leave or other leave with pay when a Holiday occurs, such Holiday shall not be charged against such leave. 2014-2019 Laborer's Contract Page 8 Section 2. Holiday Pay. Regular employees shall receive eight (8) hours pay for each of the Holidays listed above on which they perform no work. In order to be eligible for Holiday pay when no work is performed, an employee must work on his/her last scheduled work day prior to the Holiday and on his/her first scheduled work day immediately following the Holiday, unless the employee provides a justifiable excuse to the City. Section 3. Holiday Work. If a regular employee is required to work on any of the Holidays listed above as part of his/her regularly scheduled work week, he/she shall receive, in addition to his/her regular pay, compensation for all hours worked at his/her regular straight time rate of pay. Compensation accrued by reason of authorized work on a Holiday as provided herein shall be paid for at the straight time rate being received at the time the work was performed or given another compensatory day off at the option of the department head. If any other regular employee is required to work on a Holiday, he/she shall receive, in addition to his/her regular pay, compensation for all hours worked in accordance with call-back pay provisions set forth in Article X, Section 3. ARTICLE VI - VACATIONS Section 1. Eligibility. An employee shall be eligible to take accrued vacation leave with pay after one (1) full year of continuous service. Vacation leave shall accrue on a monthly basis. During an employee's first year of employment, the employee will accrue vacation at the rate of 80 hours of vacation per year, accrued through equal monthly accruals. Following the completion of the first full year of employment the annual vacation accrual will increase by 6 hours per every full year of continuous service completed by the employee with the City of Ashland up to a maximum annual vacation accrual cap of 184 hours. Section 2. Continuous Service. Continuous service, for the purpose of accumulating vacation leave, shall be based on the regular hours paid to the employee. Vacation leave shall not accrue during a leave of absence without pay. Authorized leave without pay and lay-offs shall not be counted as service, however, employees returning from such leave and employees on layoff status shall be entitled to credit for service prior to the leave or layoff. Section 3. Use of accrued vacation time. Each year, an employee may use accrued vacation time to take time off or to carry forward to the next year. The following rules apply: Section 3.1. After the first year of employment, an employee can use vacation for time off as soon as the vacation time has been earned. Section 3.2. The employee must use at least 75% of his/her annual vacation accrual for time off. Example: an employee who earns 16 vacation days per year (10.67 hours per month) must take at least twelve (12) days of vacation time off during the year. 2014-2019 Laborer's Contract Page 9 Section 3.3. Vacation time that is not used for time off will carry forward to the next year. Section 3.4. An employee cannot accumulate at any time more vacation time than two times his/her annual vacation accrual. Example: an employee who earns 16 vacation days per year (10.67 hours per month) may accumulate up to thirty-two (32) days of vacation. Section 3.5. If an employee has the maximum amount of vacation accumulated, no more vacation time is earned until the employee has used some of the accumulated vacation time. Section 4. Accrual Notification. The City shall notify an employee thirty (30) days in advance of impending loss of accrued vacation time. The employee and supervisor will immediately discuss when the employee can take time off so as to avoid any loss of vacation time. If the City is unable to release the employee within that thirty day period to take vacation time off, the vacation time which exceeds the accrual maximum will, by mutual agreement between the supervisor and the employee, either be cashed out or the employee will be allowed to carry it forward until the employee can take the time off. Section 4.1 Accrual Limitations. Vacation leave must be taken by the employee within twelve (12) months following the date of eligibility, or such vacation shall be deemed forfeited. An employee who is about to lose vacation leave because of accrual limitations may, by notifying his/her supervisor fifteen (15) days in advance, absent himself/herself to prevent loss of vacation leave. Such action taken by the employee shall not constitute a basis for disciplinary action or loss of pay. The City shall notify an employee thirty (30) days in advance of impending loss of accrued vacation time. No payment shall be made for vacation leave lost by an employee because of accrual limitations, unless the failure to take vacation is caused by the City's insistence that the employee be at work during a scheduled vacation period. Section 5. Scheduling. Employees shall be permitted to request vacation on either an entire basis, or split into increments of not less than one-working day. Vacation times shall be scheduled based on the head of the department's judgment as to the needs of efficient operations and the availability of vacation relief. Accordingly, the City will not guarantee that vacation times selected by the Street Division crew during the last two weeks of June, and the last two weeks of August or September will be granted. Subject to the foregoing, employees shall have the right to determine vacation times. Vacation times shall be selected on the basis of seniority; provided, however, that each employee will be permitted to exercise his/her right of seniority only once annually. The vacation schedule for the period of May 1 to April 30, shall be posted annually as of April 1 and employees shall exercise their choice by bidding in seniority. The list shall be closed as of April 30 and subsequent changes shall be made only by mutual consent between the employee and the City. Scheduling of vacation periods to the 2014-2019 Laborer's Contract Page 10 extent consistent with operating requirements of the City and vacation credits of the employee, shall be in daily units. If an employee's choice for a vacation period is restricted by the City because of the necessity to complete work in a given time period, or with the supervisor's approval,- then that employee may accumulate and carry over five (5) working days of vacation time into a subsequent year. Section 6. Payment on Termination. In the event of the death or termination of an employee during the initial twelve (12) months of his/her employment, no payment in lieu of vacation shall be made. In the event of death or termination of employment after an employee has served for twelve (12) months, and is otherwise eligible for vacation credits, the employee shall be entitled to payment for accrued vacation leave at the rate of the date of eligibility. In the event of death, earned but unused vacation leave shall be paid in the same manner as salary due the deceased employee is paid. ARTICLE VII - HOURS OF WORK Section 1. Workweek. The workweek, to the extent consistent with operating requirements of the departments covered by this Agreement, and recognizing the necessity for continuous service by such departments throughout the week, shall consist of five (5) consecutive days as scheduled by the Department Heads or other responsible authority. Section 2. Hours. a. Treatment plant operators shall be scheduled for eight (8) consecutive hours (including 1/2 hour for a meal period) which shall be paid. Treatment Plant operators may be scheduled for ten (10) hour shifts. The regular hours of all other employees shall be 8 1/2 consecutive hours, including 1/2 hour for a meal period which shall not be paid. In addition, any other regular employee who is scheduled to work a shift which begins prior to 6:00 Am., or a shift which ends after 10:00 p.m., shall be scheduled for 8 consecutive hours, including 1/2 hour for a meal period which shall be paid. Section 3. Work Schedules. All employees, to the extent consistent with operating requirements, shall be scheduled to work on a regular work shift, and each shift shall have regular starting and quitting times. Work schedules showing the employee's shifts, workdays and hours shall be posted on department bulletin boards. Except for emergency situations and for the duration of the emergency, changes in work schedules shall be posted seven (7) days prior to the effective date of the change. Section 4. Rest Periods. A rest period of fifteen (15) minutes shall be permitted for all employees during each half shift, which shall be scheduled by the City in accordance with its determination as to the operating requirements and each employee's duties. 2014-2019 Laborer's Contract Page 11 Rest periods may be taken at a place of the employee's choosing provided no more than the allotted time is used and no City vehicles are used for transportation to or from such place. Section 5. Meal Periods. To the extent consistent with operating requirements of the respective departments, meal periods shall be scheduled in the middle of the work shift. Meal periods may be taken at a place of the employee's choosing provided no more than the allotted time is used and no City vehicles are used for transportation to or from such place. ARTICLE VIII - SICK LEAVE Section 1. Accumulation. Sick leave shall be earned for the purposes stated herein by each eligible employee at the rate of eight (8) hours for each full calendar month of service. No new sick leave credit may be accrued after the first thirty (30) calendar days on sick leave resulting from an injury incurred in the course of employment. Sick leave may be accumulated to a total of nine hundred sixty (960) hours and must be taken for the purposes specified in Section 2 hereof as a condition precedent to any sick leave payment. Section 2. Utilization for Illness or Iniurv. Employees may utilize their allowance for sick leave when unable to perform their work duties by reason of illness or injury. In such event, the employee shall notify the department head or other supervisor of absence due to illness or injury, the nature and expected length thereof, as soon as possible prior to the beginning of his/her scheduled regular work shift, unless unable to do so because of the serious nature of injury or illness. A physician's statement of the nature and identity of the illness, the need for the employee's absence and the estimated duration of the absence may be required at the option of the City for absences of over two days prior to payment of any sick leave benefits or prior to allowing the employee to return to work. A physician's s statement may be required as a prerequisite to payment of sick leave for less than three (3) days if the employee has been advised in advance of such requirement. Section 3. Integration with Workers' Compensation. When an injury occurs in the course of employment, the City's obligation to pay under this sick leave article is limited to the difference between any payment received under Worker's Compensation laws and the employee's regular pay. In such instances, pro-rated charges will be made against accrued sick leave for the first thirty (30) calendar days in proportion to the City's contribution to the employee's daffy wage. Thereafter, full charges will be made against accrued sick leave until such sick leave is exhausted, after which time the only compensation will be Workmen's Compensation benefits, if any. Section 4. Sick Leave Without Pay. Upon application by the employee, sick leave without pay may be granted by the City for the remaining period of disability after accrued sick leave has been exhausted. The City may require that the employee submit 2014-2019 Laborer's Contract Page 12 a certificate from a physician periodically during the period of such disability, and before returning to work. Section 5. Termination. Sick leave is provided by the City in the nature of insurance against loss of income due to illness or injury. No compensation for accrued sick leave shall be provided for any employee upon his/her death or termination of employment, except that upon retirement, accumulated sick leave will be applied to retirement as provided in ORS238.153. Sick leave shall not accrue during any period of leave without pay. Section 6. Compensation for Not Using Sick Leave. Employees may elect to receive 1/3 of their unused annual sick leave accrual (maximum of 32 hours) as cash on their first paycheck in December. If cash payment is not elected, the unused portion of sick leave will be added to employee's cumulative sick leave balance or converted to accrued vacation at the option of the employee. Section 7. Use for Family Illness. An employee may be granted leave to care for an ill or injured family member in accordance with applicable federal and state Family & Medical Leave Laws. For the purpose of this Section, family member shall include any family member recognized under the Oregon and/or Federal Family and Medical Leave Acts. ARTICLE IX - FUNERAL LEAVE Section 1. Funeral Leave. An employee may be granted three (3) days funeral leave with regular pay in the event of death in the immediate family of the employee. An employee's immediate family shall include spouse, parent, children, brother, sister, brother-in-law, sister-in-law, mother-in-law, father-in-law, grandparents and grandparents-in-law. The employee will be paid his/her regular hourly rate for any such days of excused absence which occur only during his/her assigned workweek. An additional two (2) days may be granted if the funeral is over 750 miles from Ashland, one way. ARTICLE X - OTHER LEAVES OF ABSENCE Section 1. Leaves of Absence Without Pay. Leaves of absence without pay not to exceed one (1) year may be granted upon establishment of reasonable justification and where it is determined that the operation of the department and/or division win not be negatively impacted by the temporary absence of the employee. Requests for such leaves must be in writing and submitted to the Department Head 30 days prior to the requested leave date. 2014-2019 Laborer's Contract Page 13 Section 2. Jury Dutv. Employees shall be granted leave with pay for service upon a jury; provided, however, that the regular pay of such an employee for the period of absence shall be reduced by the amount of money received by him/her for such jury service, and upon being excused from jury service for any day an employee shall immediately contact his/her supervisor for assignment for the remainder of his/her regular workday. Section 3. Appearances. Leave with pay shall be granted for an appearance before a court, legislative committee, judicial or quasi-judicial body as a witness in response to a subpoena or other direction by proper authority; provided, however, that the regular pay of such employee shall be reduced by an amount equal to any compensation he/she may receive as witness fees. Section 4. Required Court Appearances. Leaves of absence with pay shall be granted for attendance in court in connection with an employee's officially assigned duties, including the time required for travel to the court and return to the employee's headquarters. Section 5. Election Day. Employees shall be granted two (2) hours to vote on any election day only if, due to scheduling of work, they would not otherwise be able to vote. Section 6. Union Business. Employees elected to any legitimate full-time paid Union office which takes them from their employment with the City, shall upon written request of the Union and the employee, be granted a leave of absence of up to one (1) year without pay, renewable upon application. Employees selected by the Union to attend conventions and related Union activities, shall upon written request of the Union and the employee, be granted a leave of absence of up to thirty (30) days without pay. Section 7. Educational Leave. After completing one (1) year of continuous service, an employee, upon written request may be granted a leave of absence without pay by the City for the purpose of upgrading his/her professional ability through the enrollment in educational courses directly related to employment at an accredited school or course of study. The period of such leave of absence shall not exceed one (1) year, but may be renewed or extended upon request of the employee and approval by the department head. One year leaves of absence, with requested extensions, for educational purposes may not be provided more than once in any three (3) year period. His/her replacement shall be considered a temporary employee. Employees may also be granted time off with pay for educational purposes for reasonable lengths of time, to attend conferences, seminars, briefing sessions, training program , and other programs of a similar nature that are intended to improve or upgrade the employee's skill and professional ability, when ordered by the employee's department head. 2014-2019 Laborer's Contract Page 14 Section 8. Military Leave. Military leave shall be granted in accordance with Oregon Revised Statutes. Section 9. Failure to Return From Leave. Any employee who is granted a leave of absence and who, for any reason, fails to return to work at the expiration of said leave of absence, shall be considered as having resigned his/her position with the City, and his/her position shall be declared vacated; except and unless the employee, prior to the expiration of his/her leave of absence, has furnished evidence that he/she is unable to work by reason of sickness, physical disability or other legitimate reason beyond his/her control. ARTICLE XI - COMPENSATION Section 1. Pay Schedule. Employees shall be compensated in accordance with the pay schedule attached to this Agreement and marked Appendix "B" which is hereby incorporated into and made a part of this Agreement. When any position not listed on the pay schedule is established, the City shall designate a job classification and pay rate for the position. The Union shall be notified and the pay rate established by the City shall be considered tentative until the Union has been afforded the opportunity to meet and discuss the matter. If the Union does not agree that the classification or pay rate is proper, the Union may submit the issue as a grievance according to the grievance procedure. The Following Wage Rate Increases shall be applied: Effective 7/1/2014, the City and union agree to apply 2% to the salary schedule for all positions in the bargaining unit. During the remaining years of the contract, the City and the union agree to apply a COLA each July 1 sr based on the CPI-W average, January-January, between 1.5% and 3.5% using the LGPI Newsletter CPI Index. (htto://www.Igpi.orq/current-coi-click-image- larger-view). If the actual CPI is higher than 3.5% or lower than 1.5% by more than .5%, both parties agree to re-open contract negotiations to discuss wages and benefits only. In the event that the City grants or negotiates a VEBA contribution of more than 2% to any other employee group at the City during the life of this contract, the City agrees to apply the same HRA-VEBA contribution, at the same time, to members of the Laborer's Union. Section 2. Pay Periods. Paydays shall be on the Friday following the close of each pay period. Section 3. Call-Back Time. Employees called back to work shall receive overtime pay with a guaranteed minimum of one (1) hour at double time for the work for which they 2014-2019 Laborer's Contract Page 15 are called back. This section applies only when call-back results in hours worked which are not annexed consecutively to one end or the other of the working day or working shift. This section does not apply to scheduled overtime, call-in times annexed to the beginning of the work shift, or hold-over times annexed to the end of the work shift or work day. Section 4. Overtime. The City has the right to assign overtime work as required in a manner most advantageous to the City, and consistent with the requirements of municipal service and the public interest. Employees shall be compensated at the rate of two (2) times the regular rate for overtime work under the following conditions, but in no event shall such compensation be received twice for the same hours: (a) All assigned work in excess of eight (8) hours on any scheduled workday. (b) All assigned work in excess of -forty (40) hours in any workweek. Section 5. Over-time Compensation. Overtime may be paid in the form of compensatory time off at the applicable rate, subject to the approval of the Department Head or designated supervisor. All overtime shall be recorded by the employee and must be approved by the Department Head or designated supervisor in advance. The employee must designate whether he/she desires pay or compensatory time off on the time sheet reporting the overtime worked. Compensatory time shall be accrued on an annual basis from December 1 to November 30 with any amount unused at November 30 to be compensated as pay on the first pay check of December. Accrued compensatory time shall not exceed twenty (20) hours which represents forty (40) hours of straight time. However, at the option of the employee, up to twenty (20) hours (40 hours of straight time) may be carried forward for use in the next year, rather than being cashed out in December. Section 5.1. Overtime Meal Allowance. Employees who are required to work more than (12) hours in one work day or are required to report to work without adequate time to prepare a meal shall be entitled to a meal allowance. An overtime meal allowance of $15.00 will be paid on the first paycheck that includes the overtime work. Overtime meal allowance should be approved by the employee's supervisor and requested on the timesheet when the overtime work occurred. If overtime work continues after a meal has been provided, employees shall be entitled to additional meals at (4) hour intervals thereafter. Section 6. Standby Pay. Standby pay shall be 7% of an employee's regular monthly rate. If a holiday occurs during such period, an additional 3% of the employee's regular monthly rate shall be paid to such employee. 2014-2019 Laborers Contract Page 16 Section 7. Certification -Pa . Certification pay will be added as follows: (1) Mechanic - more than 2 certification, but less than 6 = $0.25 per hr. (a) Master Mechanic Certification - $0.50 per hr. (2) Water / Waste Water - (a) # II Certification = $0.25 per hr. (b) # III Certification = $0.35 per hr. (c) # IV Certification = $0.50 per hr. (3) Back-Flow Certification Required by the City (Inspector Certification or Testing Certification - (a) Any one of these certification = $0.35 per hr. (b) Both certifications = $0.50 per hr. (4) Building Maintenance Certification = $0.25 per hr. (5) Pesticide Certification Required by the City = $0.35 per hr. (6) Erosion Control Certification = $0.25 per hr. (7) Pre-Need Sales Certification = $0.25 per hr. (Limited to two employees actively working in the Cemetery Division.) Employees currently receiving certification pay through grandfathered provisions will receive the above certification pay in lieu of and not in addition to the certification pay they are currently receiving. Employees may receive pay for more than one certification, but pay for combined certifcations may not exceed $0.50/hr. To be eligible for certification pay, an employee must obtain prior approval from his or her supervisor. Section 8. Mileage. An employee required to report for special duty or assignment at any location other than his/her permanent reporting location and who is required to use his/her personal automobile for transportation to such location shall be compensated at the mileage reimbursement rate established annually by the IRS. Section 9. Working Out of Class. Whenever an employee is required to work in a higher job classification he/she shall receive an additional 5% for the next higher classification, 10% for a two classification upgrade and 15% for a three classification upgrade for the actual hours worked in the higher classification. Section 10. Longevity Pa v. Once a member of the bargaining acheives a total of 20 years of service, he/she shall receive a one-time cash payment of $1,000. At the 2014-2019 Laborers Contract Page 17 employee's option, he or she may accept the longevity payment as cash, or the member may elect to defer (all or part of) the longevity pay through one of the City's available deferred compensation programs. ARTICLE XII - DISCIPLINE AND DISCHARGE Section 1. Discipline. Disciplinary action may include the following: (a) Oral reprimand. (b) Written reprimand. (c) Demotion. (d) Suspension. (e) Discharge. Disciplinary action may be imposed upon any employee for failing to fulfill his/her responsibilities as an employee. Conduct reflecting discredit upon the City or department, or which is a direct hindrance to the effective performance of City functions, shall be considered good cause for disciplinary action. Such cause may also include misconduct abuse of sick leave, inefficiency, incompetence, insubordination, misfeasance, malfeasance, the willful giving of false or confidential information, the withholding of information with intent to deceive when making application for employment willful violation of departmental rules or for political activities forbidden by State law. Any disciplinary action imposed upon an employee shall be protested only as a grievance through the regular grievance procedure. Written reprimands shall not be kept in an employee's file longer than 12 months unless there is a similar disciplinary problem during this time. Oral reprimands shall not be protested through the grievance procedure. If the Department Head or other supervisor has reason to discipline an employee, he/she shall make reasonable efforts to impose such discipline in a manner that will not embarrass or humiliate the employee before other employees or the public. Section 2. Discharge. An employee having less than twelve (12) months continuous service shall serve at the pleasure of the City. An employee having continuous service in excess of twelve (12) months shall be discharged only for cause. If the department head or other supervisor determines that there is cause for discharge, he/she shall suspend the employee without pay for five (5) calendar days and shall deliver to the employee and the Union a written notice of such suspension and pending dismissal. Such notice shall specify the principal grounds for such action. Unless otherwise resolved, the dismissal shall become effective at the end of the five-day suspension. Protest of the discharge of any regular employee shall be made only through the grievance procedure set forth in Article XIII. The Union may process a grievance concerning suspension or discharge, or both, at Step 11 of the grievance procedure. 2014-2019 Laborer's Contract Page 18 ARTICLE XIII - SETTLEMENT OF DISPUTES Section 1. Grievance and Arbitration Procedure. Any grievance or dispute which may arise between the parties concerning the application, meaning or interpretation of this Agreement shall be settled in the following manner: Step I. The affected employee shall take up the grievance or dispute with the employee's division head or supervisor within seventy-two (72) hours of its occurrence, excluding Saturday and Sunday. Such employee may be accompanied by the Steward, if he/she so desires. The division head or supervisor shall then attempt to adjust the matter within three (3) working days. Step II. If the grievance has not been settled between the affected employee and the division head or supervisor, it may be presented in writing by the Union Business Manager or his/her designee to the Director of Public Works within seventy-two (72) hours, excluding Saturday and Sunday, after the response specified in Step I is due. The written notice shall include details of the grievance, the section of this Agreement allegedly violated and the specific remedy requested. The Director of Public Works shall respond to the Union representative in writing within five (5) working days after receipt thereof. Step III. Board of Adjustment If the grievance is not resolved at Step 11, it shall be referred to a Board of Adjustment by written notice which is served on the City within five (5) working days after the failure to resolve the grievance at Step 11 or within five (5) working days after expiration of the time limit applicable to that step. Failure to serve timely notice of referral to the Board of Adjustment shall constitute a waiver of the grievance. The Board of Adjustment shall consist of two (2) representatives appointed by the City and two (2) representatives by the Union. None of these four (4) shall be a City employee. The Board shall hear the matter at a mutually convenient time and place within ten (10) working days following written referral to the Board of Adjustment. Upon hearing the matter, the Board shall issue a written decision signed by the members within twenty-four (24) hours. The majority of the Board of Adjustment shall determine the matter, and such decisions shall be final and binding on all parties - the City, the Union and the grievant or grievants. Each member of the Board of Adjustment shall be entitled to one (1) vote. In the event the Board of Adjustment is deadlocked, such result will be noted in writing. The parties may, by mutual agreement, waive submission of a grievance to the Board of Adjustment. Step IV. If the grievance still remains unadjusted, it may be presented by the Union to the City Administrator or his/her designee, within five (5) working days after the Board of Adjustment's action. The City Administrator or his/her designee shall respond in writing to the Union within five (5) working days. 2014-2019 Laborer's Contract Page 19 Step V. If the grievance is still unsettled, either party may, within ten (10) days after the reply of the City Administrator is due, by written notice to the other, request arbitration of the dispute under Step IV hereof. Step VI. If the grievance is still unsettled, either party may within ten (10) days of the decision of the City Administrator or his/her designee(s) under Step V have the right to have the matter arbitrated by a third party jointly agreed upon by the City and the Union. If the parties are unable to agree upon an arbitrator, the Oregon State Conciliation Service shall be requested to submit a list of five names. Both the City and the Union shall have the right to strike two names from the list. The party requesting arbitration on shall strike the first name and the other party shall then strike one name. The process shall be repeated and the remaining person shall be the arbitrator. The City and the Union shall meet in a prehearing conference and shall prepare a submission agreement regarding the specific issues in dispute. The designated arbitrator shall hear both parties as soon as possible on the disputed matter and shall render a decision within thirty (30) days which shall be final and binding on the parties and the employee. The arbitrator shall have no right to amend, modify, nullify, ignore or add provisions to the agreement, but shall be limited to consideration of the particular issue(s) presented to him/her. His/her decision shall be based solely upon his/her interpretation of the meaning and application of the express language of the agreement. Expenses for the arbitrator shall be borne equally by the City and the Union; however, each party shall be responsible for compensating his/her own representatives and witnesses. If either party desires a verbatim recording of the proceedings, it may cause such a record to be made, provided it pays for the record. If the other party desires a copy, both parties shall jointly share the cost of the transcript of all copies. If any grievance is not presented or forwarded by the employee or Union within the time limits specified above, such grievance shall be deemed waived. If any grievance is not answered by the City within the time limits specified above, such grievance and the remedy requested shall be deemed granted. Section 2. Stewards. Employees selected by the Union to act as Union representatives shall be known as "Stewards" and shall not exceed three (3) in number. The names of the employees selected as Stewards, and the names of local Union representatives, state council or international representatives who may represent employees, shall be certified in writing to the City by the Union. Duties required by the Union of Stewards, excepting attendance at meetings with supervisory personnel and aggrieved employees arising out of a grievance already initiated by an employee under Section hereof, shall not interfere with their or other employees' regular work assignments as employees of the City. Contacts between Stewards and employees or the Union shall be made outside working hours so as not to disrupt regular City operations. Business agent or designee may place phone calls to Steward during work hours, the Steward will return such calls while on break or lunch and this practice will not be abused. 20142019 laborer's contract Page 20 ARTICLE XIV - SENIORITY (Language taken from MOU dated 3-12-09) Section 1. Seniority. Seniority shall be an employee's length of continuous service with the bargaining unit, dating from his/her last date of hire, and shall apply by job classification within his/her division in the matter of layoff, recall and vacation. In the event of a layoff, such employee may exercise his/her seniority in a lower job classification within any division he/she has previously worked. If the employer determines that a layoff requires seniority to be bypassed in order to retain an employee with a skill not possessed by others in the division, the employer shall notify the union at least 10 working days prior to implementation. The matter shall be subject to the grievance procedure. Seniority shall accrue separately for each division he/she works in. "Division" shall be defined as: Water Distribution Water Treatment Wastewater Collections Wastewater Treatment Plant Storm water Collections Street Operations/Maintenance Facilities Cemetery Equipment Maintenance The employment relationship shall be broken or terminated if an employee (1) quits; (2) is discharged for just cause; (3) is absent from work for two consecutive working days without notification to the employee's supervisor by the employee; (4) is laid off and fails to report to work within three days after being recalled; (5) is laid off from work for any reason for 24 months, or for a period of time equal to his/her seniority, whichever is shorter; (6) fails to report for work at the termination of a leave of absence; (7) if while on a leave of absence for personal health reasons, accepts other employment without permission; or (8) if he/she is retired. Section 1.1 Suspension of Seniority. Seniority shall be retained but shall not continue to accrue during (1) authorized sick leave or disability leave in excess of thirty (30) calendar days; (2) educational leave requested by the employee; (3) military leave for disciplinary reasons; (4) election to a full-time paid Union office up to one (1) year, renewable upon application; (5) other authorized leaves of absence up to thirty (30) calendar days; and (6) promotion to a supervisory position outside of the bargaining unit for six (6) months. Section 1.2 Accrual of Seniority. Seniority shall continue to accrue during (1) authorized sick leave or disability leave up to thirty (30) calendar days; (2) vacation 2014-2019 Laborer's Contract Page 21 leave; (3) educational leave required by the City; (4) military leave as specified in Article X; (5) funeral leave; (6) holiday leave; (7) jury duty; and (8) compensatory time off. Section 2. Probationary Period. The probationary period is an integral part of the employee selection process and provides the City with the opportunity to upgrade and improve the department by observing a new employee's work, training, aiding new employees in adjustment to their positions, and by providing an opportunity to reject any employee whose work performance fails to meet required work standards. Every new employee hired into the bargaining unit shall serve a probationary period of twelve (12) full months after which he/she shall be considered a regular employee and granted seniority to the last date of hire. The Union recognizes the right of the City to terminate probationary employees for any reason and to exercise all rights not specifically modified by this Agreement with respect to such employees including, but not limited to, the shifting of work schedules and job classifications, the assignment of on-the-job training, cross-training in other classifications, the assignment of educational courses and training programs and the request that such employees attend training programs on their off-duty time. Termination of a probationary employee shall not be subject to the grievance procedure under Article XIII. Section 3. Promotional Probationary Period. Regular employees promoted into a higher classification shall serve a promotional probationary period of six (6) months. The City may extend probation for six (6) months. Any extension beyond twelve (12) months would require mutual consent by the Union and the City. The Union also recognizes the right of the employer to demote an employee on promotional probationary status to his/her previous position. Demotion of an employee on promotional probationary status shall be subject to the grievance procedure under Article XIII. Section 4. Promotional Opportunities. The City and the Union recognize that promotions from within the divisions increase productivity and morale. The City and the Union also recognize the affirmative action policy of the City that all job opportunities shall be advertised both within and without the City service pursuant to the Federal Equal Opportunity Act of 1972 and Presidential Executive Order 11246. To this end, training will be provided as specified in Article XV, Section 13, and all job opportunities shall be posted. At the option of the City, promotional job opportunities may be advertised only within the City. Any decision made by the City regarding this option is not grievable. If two or more present employees who apply for the vacancy are equally qualified, seniority shall govern. If a present employee and an outside applicant are equally qualified, the present employee shall receive the appointment. Employees who are promoted shall not suffer a reduction in wages. The City shall be the judge of an employee or applicant's qualifications. Section 5. Recall From Layoff. Recall from layoff exceeding five (5) workdays shall be by certified letter sent to the employee at his/her last known address furnished to the City by the employee. The City may use any other means to return an employee sooner. 2014-20191aborels Contract Page 22 Section 6. Temporary Employees. If any regular bargaining unit employees are on a layoff status, temporary employees shall not be used to supplant the duties previously performed by such regular employees, provided such regular employees are qualified. ARTICLE XV - GENERAL PROVISIONS Section 1. No Discrimination. The provisions of this Agreement shall be applied equally to all employees in the bargaining unit without discrimination as to race, creed, color, sex, age or national origin. The Union shall share equally with the City the responsibility for applying the provisions of this Section. All references to employees in this Agreement designate both sexes and, wherever the male gender is used, it shall be construed to include male and female employees. Employees shall have the right to form, join and participate in the activities of the Union or any other labor organization, or to refrain from any or all such activities, and there shall be no discrimination by either the City or Union by reason of the exercise of such right except as specifically provided herein. Nothing in this Agreement shall be construed as precluding or limiting the right of an individual employee to represent himself/herself in individual personal matters. Section 2. Bulletin Boards. The City agrees to furnish and maintain a suitable bulletin board in a convenient place in the work or assembly area to be used by the Union. The Union shall limit its postings of Union notices and bulletins to such bulletin board, which shall be used only for the following Union notices and bulletins: a. Recreational and social affairs of the Union. b. Union meetings. C. Union elections. d. Reports of Union committees. e. Rulings or policies of the International Union. Section 3. Visits by Union Representatives. The City agrees that accredited representatives of the District Council of Laborers and Laborers Union, Local #121, upon reasonable and proper introduction, may have reasonable access to the premises of the City at any time during working hours for the purpose of assisting in the administration of this agreement. The City agrees to allow (1) hour of paid time per year for the entire bargaining unit to meet. The union agrees to provide adequate advanced notice to City management so that workschedules can be adjusted for employee attendance at the annual union meeting. It is understood and agreed by both parties that no overtime will be incurred or paid for the purpose of employee participation in the annual meeting. 2014-2019 Laborer's Contract Page 23 Section 4. Solicitation. The Union agrees that its members will not solicit membership in the Union or otherwise carry on Union activities during working hours, except as specifically provided in this Agreement. Section 5. Existing Conditions. Only such existing and future work rules and benefits as are specifically covered by the terms of this Agreement shall be affected by recognition of the Union and the execution of this Agreement. It is further agreed that if modification of work rules or benefits covered by a specific provision of this Agreement is proposed, any such modification shall be posted prominently on all bulletin boards for a period of seven (7) consecutive days prior to implementation. Section 6. Rules. It is jointly recognized that the City must retain broad authority to fulfill and implement their responsibilities and may do so by work rule, oral or written, existing or future. It is agreed, however, that no work rule will be promulgated or implemented which is inconsistent with a specific provision of this Agreement, or is contrary to the provisions of Oregon State Law. All work rules which have been, or shall be reduced to writing, will be furnished to the Union and to affected employees. Section 7. Other Employment. Outside employment shall be permitted only with the express prior written approval of the City. Section 8. Supervisory Employees. It is understood that supervisory employees not covered under this Agreement shall not perform work within the jurisdiction of the Union except in the case of an unforeseen emergency, or for purposes of instruction or training, or where the complement of regular employees is temporarily reduced by reason of absence of any employee due to illness or other legitimate reasons, or where the work load is temporarily increased. Section 9. Uniforms. Protective Clothing and Devices. If an employee is required to wear a uniform, protective clothing, or use any type of protective device, such article shall be provided, maintained and cleaned by the City, if exposed to chemical or biohazard that require special cleaning. Employees may be provided with routine clothing items such as shirts, jackets or hats imprinted with the City's logo for easy identification in the field; however, cleaning and maintenance of routine clothing items shall be the responsibility of the employee unless special cleaning is required as described above. The City will continue to honor any agreements made with employees prior to 7/1/2011 regarding the cleaning of non-protective clothing items. Lost articles or damage to articles due to negligence shall be reimbursed to the City by the employee. The City shall provide a safe place for the storage of such articles. Failure of an employee to wear such required uniform, protective clothing, or use such protective devices as prescribed by the City shall be cause for disciplinary action as set forth in Article XII hereof. Section 9.1. Boot Allowance. Employees may receive reimbursement of up to a maximum of $750 per contract period' toward the cost of the purchase or 2014-2019 Laborer's Contract Page 24 repair of shoes, boots or protective footwear (including orthotics, insoles, or weather-related footwear/gear). Purchases of more than $200 in a fiscal year must be pre-approved by the employee's supervisor. Section 10. Response Time Requirement. All regular employees regularly assigned to standby status shall establish their residence to enable them to report for emergency duty within forty (40) minutes of notification, including get ready time and travel time. New employees shall establish their residency within a forty (40) minute response time within six (6) months of date of hire. Section 11. Safety Committee. The City and Union will comply with all state and federal laws on this subject. Section 12. Training Opportunities. On-the-job training may be provided by the City as time and the work load permit. Section 13. Temporary Employees. Temporary employees shall not be used in such a way as to negate the purpose and intent of ARTICLE XV - GENERAL PROVISIONS Section 12. Training Opportunities relating to the operation of heavy equipment. ARTICLE XVI - HEALTH, WELFARE AND RETIREMENT Section 1. The Employee Health Benefits Advisory Committee including one (1) representative of Laborers Union shall meet at least eight (8) times per year for the purpose of reviewing program performance and advising the City Council on desired changes in health insurance benefits. The committee shall meet and review any proposed changes to the insurance benefits plan before a change is made. Health benefits and other insurance will be provided to Laborers Union represented employees under the same conditions and restrictions as provided to all other City employees. Coverage may be adjusted or modified by the City after soliciting a recommendation from the City Employee Health Benefits Advisory Committee (EHBAC). Nothing in this agreement shall be deemed a limitation on the annual plan benefit adjustments. Section 2. A health benefits plan document shall be adopted annually by the City Council following a review by the Employee Health Benefits Advisory Committee. The per-FTE cost of providing the single-person, employee-plus-spouse and full-family health benefits called for in this plan (the "premium") shall be determined by an actuarial valuation or by a review conducted by either: the City's excess insurance carrier; the City's third party administrator; or the City's employee benefits consultant. The City shall annually, as part of the plan adoption process, establish an employee premium contribution. The employee premium contribution shall not exceed 5% of the premium cost and shall be deducted from the employee's check through regular payroll deductions. 2014-2019 Laborer's Contract Page 25 Section 3. HRA-VEBA. The City agrees to contribute an amount equivalent to 2% of salary for each member of the bargaining unit into an HRA-VEBA program for the duration of the contract. Section 4. Life Insurance. The City agrees to provide each member with life insurance coverage: Employee ($10,000) with a matching Accidental Death and Dismemberment (AD&D) policy; Dependent ($1,000) coverage. Members may purchase additional voluntary coverage to supplement city-provided policies. Section 5. Long Term Disability Insurance. The City agrees to provide long term disability insurance for the employee only. Section 6. Deferred Compensation. The City agrees to contribute $15.00 per month in matching funds per member enrolled in a City deferred compensation program (currently ICMA or AETNA). This program is at the option of the member and contingent upon a minimum $15.00 per month contribution paid by the member. A contribution of $30.00 per month shall be contributed by the City to the Deferred Compensation plan of employee's choice whether the employee elects to contribute his or her personal funds to the plan or not. This contribution recognizes benefit concessions made in prior negotiations that were intended to go toward annual insurance deductible cost. Section 7. Flexible Spending Account. Pre-tax flexible spending account options for eligible health and dependent care expenses Section 8. Retirement. The City agrees to maintain the existing retirement plan and to pay the employee's contribution of 6% for all employees governed by the agreement. ARTICLE XVIII - WORKER'S COMPENSATION Section 1. Worker's Compensation. All employees will be insured under the provisions of the Oregon State Worker's Compensation Act for injuries received while at work for the City. Section 2. Supplementary Payment. Compensation paid by the City for a period of sick leave also covered by worker's compensation shall be equal to the difference between worker's compensation pay for lost time and the employee's regular pay rate. 2014-2019 Laborer's Contract Page 26 ARTICLE XIX - LIABILITY INSURANCE Section 1. Liability Insurance. The City shall purchase liability insurance to the limits set forth in ORS 30.270 for the protection of all employees covered by this Agreement against claims against them incurred in or arising out of the performance of their official duties. The premiums for such insurance shall be paid by the City. Section 2. Property Insurance. The City carries catastrophic coverage for property losses, including to employee property, resulting from fire and other catastrophes. In addition, the City will reimburse replacement costs (to the extent those costs are not covered by other insurance) if all or most of a mechanic's personal work tools are stolen from City property. To obtain reimbursement under this section, the mechanic must maintain an accurate inventory of the tools which has been provided to the City in advance of the theft, a crime report must be filed with the local police, and the mechanic must not be in any way involved in the theft. ARTICLE XX - SAVINGS CLAUSE AND FUNDING Section 1. Savings Clause Should any provision of this Agreement be subsequently declared by the proper legislation or judicial authority to be unlawful, unenforceable, or not in accordance with applicable statutes or ordinances, all other provisions of this Agreement shall remain in full force and effect for the duration of this Agreement. Section 2. Funding. The parties recognize that revenue needed to fund the wages and benefits provided by this Agreement must be approved annually by established budget procedures and in certain circumstances by vote of the citizens of the City. All such wages and benefits are therefore contingent upon sources of revenue and, where applicable, annual voter budget approval. The City has no intention of cutting the wages and benefits specified in this Agreement because of budgetary limitations, but cannot and does not guarantee any level of employment in the bargaining unit covered by this Agreement. The City agrees to include in its annual budget request amounts sufficient to fund the wages and benefits provided by this Agreement, but makes no guarantee as to passage of such budget requests or voter approval thereof. 2014-2019 Laborer's Contract Page 27 ARTICLE XXI - TERMINATION AND REOPENING This Agreement shall be effective July 1, 2014, and shall remain in full force and effect until the 30th day of June 2019, and shall terminate all prior agreements and practices, and concludes all collective bargaining during the term of this Agreement. It shall be automatically renewed from year to year thereafter unless either party shall notify the other in writing not later than 180 days prior to the expiration or subsequent anniversary date that it wishes to modify the Agreement for any reason. Such notification shall include the substance of the modification and the language with which such desired modifications are to be expressed. APPROVED: CITY OF ASHLAND ASHLAND CITY COUNCIL By By Dave Kanner, City Administrator John Stromberg, Mayor Date Date L.I.U.N.A. Local No. 121 By Date Kyle Estes By Date Greg Whittenburg By Date Tony Friesen By Date Jeff Gritz Oregon Southern Idaho District Council of Laborers By Date 2014-2019 Laborers Contract Page 28 Appendix "A" Job Classifications in the Bargaining Unit Cemetery Sexton Mechanic Senior Mechanic Meter Reader/Repair Wastewater Treatment Plant Operator Senior Wastewater Treatment Plant Operator Utility Worker I Utility Worker II Senior Utility Worker Utility Technician Water Quality Technician Water Treatment Plant Operator I, II Senior Water Treatment Plant Operator Indicates Flexible Staffing Option - The City can hire a I or a 11 base on operational needs, and promote I to II without a competitive process. 2014-2019 Laborer's Contract Page 29 Appendix "B" Salary Schedule 2% COLA per contract. 25 COLA per contract. HOUR MONTH ANNUAL HOUR MONTH ANNUAL SALARY RANGE SIGNMENT_ NEW JOB CLASSIFICATION Unfilled Job Class First 6 Months $16.4125 $2,845 $34,137 $16.7408 $2,901.67 7~44134 Next 12 Months $17.2331 $2,987 $35,844 $17.5777 $3,046.75 Next 12 Months $18.2671 $3,166 $37,995 $18.6324 $3,229.56 Next 12 Months $19.3631 $3,356 $40,275 $19.7504 $3,423.33 Rate Thereafter $20.3313 $3,524 $42,288 $20.7379 $3,594.50 CPS RANGE 2 Utility Worker I First 6 Months $17.2331 $2,987 $35,844 $17.5777 $3,046.75 $36,561 Next 12 Months $18.0948 $3,136 $37,636 $18.4567 $3,199.09 $38,389 Next 12 Months $19.1805 $3,325 $39,895 $19.5641 $3,391.04 $40,693 Next 12 Months $20.3313 $3,524 $42,288 $20.7379 $3,594.50 $43,134 Rate Thereafter $21.3478 $3,700 $44,403 $21.7748 $3,774.23 $45,291 7First ob Class Months $18.09 48 $3,136 $37,636 $18.4567 $3,199.09 $38,389 2 Months $18.9995 $3,293 $39,518 $19.3795 $3,359.05 $40,309 2 Months $20.1395 $3,491 $41,889 $20.5423 $3,560.59 $42,727 2 Months $21.3478 $3,700 $44,403 $21.7748 $3,774.23 $45,291 hereafter $22.4152 $3,885 $46,623 $22.8635 $3,962.94 $47,555 Months $18.999 5 $3,293 $39,518 $19.3795 $3,359.05 $40,309 2 Months $19.9495 $3,458 $41,494 $20.3485 $3,527.00 $42,324 7Rate orker II 2 Months $21.1465 $3,665 $43,984 $21.5694 $3,738.62 $44,863 2 Months $22.4152 $3,885 $46,623 $22.8635 $3,962.94 $47,555 hereafter $23.5360 $4,079 $48,954 $24.0067 $4,161.08 $49,933 Meter Reader/Repairer, Water Treatment Plant Op 1' (1) First 6 Months $19.9495 $3,458 $41,494 $20.3485 $3,527.00 $42,324 Next 12 Months $20.9470 $3,631 $43,569 $21.3659 $3,703.35 $44,440 Next 12 Months $22.2038 $3,849 $46,183 $22.6479 $3,925.55 $47,107 Next 12 Months $23.5360 $4,079 $48,954 $24.0067 $4,161.08 $49,933 Rate Thereafter $24.7128 $4,283 $51,402 $25.2071 $4,369.14 $52,430 2014-2019 Laborer's Contract Page 30 Senior Utility Worker (Previously Utility Worker lllJ (4) Mechanic (5) First 6 Months 1$20.9470 $3,631 $43,569 $21.3659 W$3,703.35$44,440 Next 12 Months $21.9943 $3,812 $45,747 $22.4342 $3,888.52 $46,662 Next 12 Months $23.3140 $4,041 $48,492 $23.7802 $4,121.83 $49,462 Next 12 Months $24.7128 $4,283 $51,402 $25.2071 $4,369.14 $52,430 Rate Thereafter $25.9484 $4,498 $53,972 $26.4674 $4,587.60 $55,051 Senior Mechanic, Water CPSRANGE7 Treatment Plant Op ll* (1 J, Wastewater Treatment Plant Operator (2,3,7) First 6 Months $21.9943 $3,812 $45,747 $22.4342 $3,888.52 $46,662 Next 12 Months $23.0940 $4,003 $48,035 $23.5559 $4,082.94 $48,995 Next 12 Months $24.4797 $4,243 $50,917 $24.9693 $4,327.92 $51,935 Next 12 Months $25.9484 $4,498 $53,972 $26.4674 $4,587.60 $55,051 Rate Thereafter $27.2458 $4,723 $56,670 $27.7908 $4,816.97 $57,804 Cemetery Sexton Utility Technician First 6 Months $23.0940 $4,003 $48,035 R$23.5559 $4,082.94 $48,995 Next 12 Months $24.2487 $4,203 $50,436 $24.7337 $4,287.09 $51,445 Next 12 Months $25.7036 $4,455 $53,462 $26.2177 $4,544.31 $54,532 Next 12 Months $27.2458 $4,723 $56,670 $27.7908 $4,816.97 $57,804 Rate Thereafter $28.6081 $4,959 $59,504 $29.1803 $5,057.82 $60,694 Senior Water Treatment Plant OF, Water Quality Technician, Senior Wastewater Treatment Plant Operator First6 Months $24.2487 $4,203 L$62,479 $24.7337 $4,287.09 $51,445 Next 12 Months $25.4611 $4,413 $25.9703 $4,501.44 $54,017 Next 12 Months $26.9888 $4,678 $27.5286 $4,771.53 $57,258 Next 12 Months $28.6081 $4,959 $29.1803 $5,057.82 $60,694 Rate Thereafter $30.0385 $5,207 $30.6393 $5,310.71 $63,729 *PLEASE NOTE: Hourly rates are accurate to 4 decimal places. A Monthly wage is provided as an approximate salary, but actual monthly earnings may differ from those quoted above. (1) All rates include 25 cents per hour for state required Level II Certification. (2) All rates include 35 cents per hour for state required Level III Certification. (3) Add 15 cents per hour for employees currently receiving certification pay for state Level IV Waste Water Treatment Certification. (4) Plus $1.00 per hour when assigned Lead Worker responsibilities. (5) Includes 20 cents per hour for required I&M Certification. (7) Plus $1.00 per hour or the rate the employee received as of June 30, 2001, whichever is greater, when performing Lead Operator responsibilities. 2014-2019 Laborer's Contract Page 31 This Page intentionally left blank. 2014-2019 Laborer's Contract Page 32 CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting A Resolution Exercising the Power of Eminent Domain for the Walker Avenue Safe Routes to School Project FROM: Scott Fleury, Engineering Services Manager, Public Works, fleurys@ashland.or.us SUMMARY Staff is requesting approval of a Resolution exercising the power of eminent domain with respect to right of way acquisition from the railroad for the Walker Avenue safe route to school project. The resolution is required as part of an intergovernmental agreement (IGA) between the City of Ashland and the Oregon Department of Transportation (ODOT). BACKGROUND AND POLICY IMPLICATIONS: The City of Ashland received a Congestion Mitigation and Air Quality (CMAQ) improvement grant to fund engineering and construction of a sidewalk connection between Ashland St. and E. Main along Walker Ave. As part of the process the City entered into an IGA with ODOT for both the project engineering and construction along with a separate IGA for right of way services. ham://ashland.or.us/Agendas.asp?Display=Minutes&AMID=4649 The engineering design was awarded to OBEC Engineering consultants of Medford, Oregon, through a qualification based selection process. OBEC is also tasked with acquiring the necessary easements from the railroad in order to engineer and construct an at grade pedestrian crossing over the railroad tracks on Walker Ave. The right of way services IGA allows ODOT to conduct right of way documentation review and ensure all applicable laws are being met. The resolution to exercise eminent domain is required as part of the right of way services IGA (reference Exhibit A, B. Lc of attachment two). With this resolution in place, OBEC will have the ability to make a formal offer to the railroad for the pedestrian easement. The option to exercise eminent domain only comes into play if the consultant cannot successfully obtain the necessary pedestrian easement voluntarily from the railroad. This resolution is required as part of the project and shows the City is willing to take the necessary steps in order to construct the grant funded project. OBEC is currently in negotiations with the railroad and an appraisal is being produced as required. OBEC has had good preliminary discussion with the railroad and believes the easement will be obtained voluntarily. FISCAL IMPLICATIONS: The maximum cost is $5,000 for ODOT to perform any right of way review services. The cost to purchase an easement from the railroad is still to be determined but can be covered under the grant if the total project cost does not exceed the grant amount. The CMAQ grant carries a maximum amount of $666,694; anything over this amount must be covered by the City of Ashland along with the 10.27% Page 1 of 2 ~r, CITY OF ASHLAND match. The complete project budget of $750,000 is in the approved FYI 3 Capital Improvement Plan and FYI 3 budget and funds were carried over to FYI 4/15. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends approving the Resolution exercising the power of eminent domain. SUGGESTED MOTION: Move to approve the resolution titled, "A resolution exercising the power of eminent domain." ATTACHMENTS: 1. Draft resolution 2. IGA no. 28455 for right of way services 3. Local Agency Agreement no. 27871, Congestion Mitigation and Air Quality Page 2 of 2 RESOLUTION NO. 2014- A RESOLUTION EXERCISING THE POWER OF EMINENT DOMAIN RECITALS: A. The City of Ashland may exercise the power of eminent domain pursuant to its charter and the law of the State of Oregon generally, when the exercise of such power is deemed necessary by the City's governing body to accomplish public purposes for which the City has a responsibility. B. The City has the responsibility of providing safe transportation routes for commerce, convenience and to adequately serve the traveling public. C. The project or projects known as Walker Avenue have been planned in accordance with appropriate engineering standards for construction, maintenance or improvement of said transportation infrastructure such that property damage is minimized, transportation promoted, travel safeguarded; and D. To accomplish the project or projects set forth above it is necessary to acquire the interests in property described in "Exhibit A," attached to this resolution and, by this reference incorporated herein; now, therefore. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The foregoing statements of authority and need are, in fact, the case. The project or projects for which the property is required and is being acquired are necessary in the public interest, and the same have been planned, designed, located, and will be constructed in a manner which will be most compatible with the greatest public good and the lease private injury. SECTION 2. The power of eminent domain is hereby exercised with respect to each of the interests in the property described in Exhibit A. Each is acquired subject to payment of just compensation and subject to procedural requirements of Oregon Law; SECTION 3. City's staff and Counsel are authorized and requested to attempt to agree with the owner and other persons in interest as to the compensation to be paid for each acquisition, and, in the event that no satisfactory agreement can be reached, to commence and prosecute such condemnation proceedings as may be necessary to finally determine just compensation or any other issue appropriate to be determined by a court in connection with the acquisition. This authorization is not intended to expand the jurisdiction of any court to decide matters determined above or determinable by the Commission. SECTION 4. City expressly reserves its jurisdiction to determine the necessity or propriety of any acquisition, its quantity, quality, or locality, and to change or abandon any acquisition. SECTION 5. This resolution was duly PASSED and ADOPTED this day of 2014, and takes effect upon signing by the Mayor. Resolution No. 2013- Page 1 of 2 This resolution was duly PASSED and ADOPTED this day of 2014, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of 2014. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. Page 2 of 2 f Misc. Contracts and Agreements No. 271371 LOCAL AGENCY AGREEMENT CONGESTION MITIGATION AND AIR QUALITY PROGRAM Walker Avenue: Ashland Street to East Main Street THIS AGREEMENT is made and entered into by and between the STATE OF OREGON, acting by and through its Department of Transportation, hereinafter referred to as "State," and the City of Ashland, acting by and'through its elected officials, hereinafter referred to as "Agency," both herein referred to individually or collectively as "Party" or "Parties." RECITALS 1. Walker Avenue, Ashland Street and East Main Street are parts of the Agency street system under the jurisdiction and control of Agency. 2. By the authority granted in Oregon Revised Statutes (ORS) 190.110, 366.572 and 366.576, State may enter into cooperative agreements with counties, cities, and units of local governments for the performance of work on certain types of improvement projects with the allocation of costs on terms and conditions mutually agreeable to the contracting parties. NOW THEREFORE, the premises being in general as stated in the foregoing Recitals, it is agreed by and between the Parties hereto. as follows: TERMS OF AGREEMENT 1. Under such authority, State and Agency agree, to fund, design and construct sidewalks, bicycle lanes and improvements to the rail crossing on Walker Avenue, hereinafter referred to as "Project." The location of the Project is approximately as shown on the sketch map attached hereto, marked* "Exhibit A," and by this reference made a part hereof. 2. This Project shall be conducted as a part of the Congestion Mitigation and Air Quality (CMAQ) Program under Title 23, United States Code. The total Project cost `is estimated at.$666,694, which is subject to change. The CMAQ'funds are limited to $666,694. Eligible costs for the Project will be reimbursed at the full federal share or until the $666,694 limit is reached. 'Agency shall be responsible for any portion of the' Project which is not covered by federal funding. Agency shall be responsible for determining the amount of federal funds to be applied to each phase of the Project. Agency is not guaranteed the use of unspent funds for a particular phase of work. It is Agencys responsibility to notify State in advance of State obligating the funds for Key No. 17249 024741 Agency/State Agreement No. 27871 a subsequent phase if Agency wants to release funds on the current authorized phase(s) of work. 3. The federal funding for this Project is contingent upon approval by the Federal Highway Administration (FHWA). Any work performed prior to acceptance by FHWA or outside the scope of work will be considered nonparticipating and paid for at Agency expense. 4. State considers Agency a subrecipient of the federal funds it receives as reimbursement under this Agreement. The Catalog of Federal Domestic Assistance (CFDA) number for this Project is 20.205, title Highway Planning and Construction. 5. Agency shall require its contractor(s) and subcontractor(s) that are not units of local government as defined in ORS 190.003, if any, to indemnify, defend, save and hold harmless the State of Oregon, Oregon Transportation Commission and its members, Department of Transportation and its officers, employees and agents from and against any and all claims, actions, liabilities, damages, losses, or expenses, including attorneys' fees, arising from a tort, as now or hereafter defined in ORS 30.260, caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Agency's contractor or any of the officers, agents, employees or subcontractors of the contractor ("Claims"). It is the specific intention of the Parties that State shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of State, be indemnified by the contractor and subcontractor from and against any and all Claims. 6. Any such indemnification shall also provide that neither Agency's contractor and subcontractor nor any attorney engaged by Agency's contractor and subcontractor shall defend any claim in the name of the State of Oregon or any agency of the State of Oregon, nor purport to act as legal representative of the State of Oregon or any of its agencies, without the prior written consent of the Oregon Attorney General. The State of Oregon may, at anytime at its election assume its own defense and settlement in the event that it determines that Agency's contractor is prohibited from defending the State of Oregon, or that Agency's contractor is not adequately defending the State of Oregon's interests, or that an important governmental principle is at issue or that it is in the best interests of the State of Oregon to do so. The State of Oregon reserves all rights to pursue claims it may have against Agency's contractor if the State of Oregon elects to assume its own defense. 7. The term of this Agreement shall begin on the date all required signatures are obtained and shall terminate upon completion of the Project and final payment or 2 Agency/State Agreement No. 27871 ten (10) calendar years following the date all required signatures are obtained, whichever is sooner. 8. This Agreement may be terminated by mutual written consent of the Parties. 9. State may terminate this Agreement effective upon delivery of written notice to Agency, or at such later date as may be established by State, under any of the following conditions: a. If Agency fails to provide services called for by this Agreement within the time specified herein or any extension thereof. b. If Agency fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this Agreement in accordance with its terms, and after receipt of written notice from State fails to correct such failures within ten (10) days or such longer period as State may authorize. c. If Agency fails to provide payment of its share of the cost of the Project. d. If State fails to receive funding, appropriations, limitations or other expenditure authority sufficient to allow State, in the exercise of its reasonable administrative discretion, to continue to make payments for performance of this Agreement. e. If federal or state laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is prohibited or if State is prohibited from paying for such work from the planned funding source. 10.Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 11. The Special and Standard Provisions attached hereto, marked Attachments 1 and 2, respectively, are by this reference made a part hereof. The Standard Provisions apply to all federal-aid projects and may be modified only by the Special Provisions. The Parties hereto mutually agree to the terms and conditions set forth in Attachments 1 and 2. In the event of a conflict, this Agreement shall control over the attachments, and Attachment 1 shall control over Attachment 2. 3 Agency/State Agreement No. 27871 12.Agency, as a recipient of federal funds, pursuant to this Agreement with the State, shall assume sole liability for Agency's breach of any federal statutes, rules, program requirements and grant provisions applicable to the federal funds, and shall, upon Agency's breach of any such conditions that requires the State to return funds to the Federal Highway Administration, hold harmless and indemnify the State for an amount equal to the funds received under this Agreement, or if legal limitations apply to the indemnification ability of Agency, the indemnification amount shall be the maximum amount of funds available for expenditure, including any available contingency funds or other available non-appropriated funds, up to the amount received under this Agreement. 13.Agency certifies and represents that the individual(s) signing this Agreement has been authorized to enter into and execute this Agreement on behalf of Agency, under the direction or approval of its governing body, commission, board, officers, members or representatives, and to legally bind Agency. 14.This Agreement may be executed in several counterparts (facsimile or otherwise) all of which when taken together shall constitute one agreement binding on all Parties, notwithstanding that all Parties are not signatories to the same counterpart. Each copy of this Agreement so executed shall constitute an original. 15.This Agreement and attached exhibits constitute the entire agreement between the Parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement- No waiver, consent, modification or change of terms of this Agreement shall bind either Party unless in writing and signed by both Parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision. 16. State's Project Manager for this Project is Kelli Sparkman, ODOT Region 3 Local Agency Liaison, 100 Antelope Road, White City, Oregon 97503; (541) 774-6383, or assigned designee upon individual's absence. Agency's Project Manager shall be notified in writing of any contact information changes during the term of this Agreement. 17. Agency's Project Manager for this Agreement is Morgan Wayman, Project Manager, 20 East Main Street, Ashland, OR 97520; waymanm@ashland.or.us; (541) 552- 2414; or assigned designee upon individual's absence. Agency shall notify State in writing of any contact information changes during the term of this Agreement. 4 Agency/State Agreement No. 27871 THE PARTIES, by execution of this Agreement, hereby acknowledge that its signing representatives have read this Agreement, understand it, and agree to be bound by its terms and conditions. This Project is in the 2010-2013 Statewide Transportation Improvement Program, (Key #17249) that was approved by the Oregon Transportation Commission on December 16, 2010 (or subsequently approved by amendment to the STIP). City of Ashland, by and through its STATE OF OREGON, by and through elected officials its a ent of Transportation By High ay Division Administrator Title Date 7 Date (b',Z~ ~ By APPROVAL RECOMMENDED Title W~ By Date CMAQ Program Coordinator Date OCT 18 2011 APPROVED AS TO LEGAL N, (n~'' SUFFIC CY By m./,L.Y- By Technical Services Manager/Chief City Attorney Engineer Date - q~l I Date Agency Contact By Jim Olson R ion Manager Ashland City Engineer 20 East Main Street Date Ashland, OR 97520 (541) 488-5587 APPROVED AS TO LEGAL jimo@ashland.or.us SUFFI NNCCY State Contact: By ^ fki'e-...---- Kelli Sparkman Assistant Attorney General (If over 5 Agency/State Agreement No. 27871 ODOT Region 3 Local Agency Liaiso $150,000) 100 Antelope Road / White City, OR 97503 Date (541) 774-6383 Kelli.sparkman@odot.state.or.us I I 6 Agency/State Agreement No. 27871 EXHIBIT A \ 2$p I 4 Project Limits I wd 5r -Iowa Sl f 4AtA Br E I~ ~ it ~ South•m omrMn ~ - 'y ~ .11~ ~~1~ ~ i i 1 I ~ i $ Lee St i $ ~'~t eS AVe - r VMCA Par.,{ Ste: Y Pa rA I Y b wi ~Z L Ri ~1r y~4 f _ i li ~Vt N~ \ U~ IL t Bh° menial s3 AMm d1 sc AsMac Y s 5 l~ ~ wa.laJ I INI r 1 il I~~ rart s y :b^9mv: I~ aegon II J`r ry ~ rr ~ 1 asl ~ ~ ~ ~I q,~ 5 1~i1 I 'I I. I IL r- ~ ~ ~o ifs W itlmr~ie I `Qp~ ~I?` JI 5_ - fj 1 g~(i' II t 3• 4 , • b 9 I I. : n. A I•bvd Dr E. ~ ~ A Wo«ua.Wp } ~ I I ~k: as I 3 a 8~ F F. ~ I bng ..,=°i i,r . Hossln ¥ II e e' II ~QPd~d ~I. ll Cxd:aww.ae zo:l ucro~ior 7 Agency/State Agreement No. 27871 ATTACHMENT NO. 1 to Agreement No. 27871 SPECIAL PROVISIONS 1. Agency or its consultant shall, as a federal-aid participating preliminary engineering function, conduct the necessary field surveys, environmental studies, traffic investigations, foundation explorations, and hydraulic studies, identify and obtain all required permits, assist State with acquisition of necessary right of way and/or easements, and perform all preliminary engineering and design work required to produce final plans, preliminary/final specifications and cost estimates. 2. Upon State's award of the construction contract, Agency, or its consultant, shall be responsible to perform all construction engineering, field testing of materials, technical inspection and project manager services for administration of the contract. 1 State may make available Region 3's On-Call Preliminary Engineering (PE), Design and Construction Engineering Services consultant for Local Agency Projects upon written request. If Agency chooses to use said services, Agency agrees to manage the work performed by the consultant and make funds available to the State for payment of those services. All eligible work shall be a federally participating cost and included as part of the total cost of the Project. 4. Indemnification language in the Standards Provisions, Paragraphs 46 and 47, shall be replaced with the following language: a. If any third party makes any claim or brings any action, suit or proceeding alleging a tort as now or hereafter defined in ORS 30.260 ("Third Party Claim") against State or Agency with respect to which the other Party may have liability, the notified Party must promptly notify the other Parry in writing of the Third Party Claim and deliver to the other Party a copy of the claim, process, and all legal pleadings with respect to the Third Party Claim. Each Party is entitled to participate in the defense of a Third Party Claim, and to defend a Third Party Claim with counsel of its own choosing. Receipt by a Party of the notice and copies required in this paragraph and meaningful opportunity for the Party to participate in the investigation, defense and settlement of the Third Party Claim with counsel of its own choosing are conditions precedent to that Party's liability with respect to the Third Party Claim. b. With respect to a Third Party Claim for which State is jointly liable with Agency (or would be if joined in the Third Party.Claim), State shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Agency in such proportion as is appropriate to reflect the relative fault of State on the one hand and of Agency on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of State on the one hand and of Agency on the other 8 Agency/State Agreement No. 27871 hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. State's contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if State had sole liability in the proceeding. c. With respect to a Third Party Claim for which Agency is jointly liable with State (or would be if joined in the Third Party Claim), Agency shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by State in such proportion as is appropriate to reflect the relative fault of Agency on the one hand and of State on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of Agency on the one hand and of State on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. Agency's contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if it had sole liability in the proceeding. d. The Parties shall attempt in good faith to resolve any dispute arising out of this Agreement. In addition, the Parties may agree to utilize a jointly selected mediator or arbitrator (for non-binding arbitration) to resolve the dispute short of litigation. 7. Agency shall, at its own expense, maintain and operate the Project upon completion at a minimum level that is consistent with normal depreciation and/or service demand. 8. Maintenance responsibilities shall survive any termination of this Agreement. 9 Agency/State Agreement No. 27871 10 Agency/State Agreement No. 27871 ATTACHMENT NO. 2 FEDERAL STANDARD PROVISIONS JOINT OBLIGATIONS PROJECT ADMINISTRATION 1. State (ODOT) is acting to fulfill its responsibility to the Federal Highway Administration (FHWA) by the administration of this Project, and Agency (i.e. county, city, unit of local government, or other state agency) hereby agrees that State shall have full authority to carry out this administration. If requested by Agency or if deemed necessary by State in order to meet its obligations to FHWA, State will further act for Agency in other matters pertaining to the Project. Agency shall, if necessary, appoint and direct the activities of a Citizen's Advisory Committee and/or Technical Advisory Committee, conduct a hearing and recommend the preferred alternative. State and Agency shall each assign a liaison person to coordinate activities and assure that the interests of both parties are considered during all phases of the Project. 2. Any project that uses federal funds in project development is subject to plans, specifications and estimates (PS&E) review and approval by FHWA or State acting on behalf of FHWA prior to advertisement for bid proposals, regardless of the source of funding for construction. PRELIMINARY & CONSTRUCTION ENGINEERING 3. State, Agency, or others may perform preliminary and construction engineering. If Agency or others perform the engineering, State will monitor the work for conformance with FHWA rules and regulations. In the event that Agency elects to engage the services of a personal services consultant to perform any work covered by this Agreement, Agency and Consultant shall enter into a State reviewed and approved personal services contract process and resulting contract document. State must concur in the contract prior to beginning any work. State's personal services contracting process and resulting contract document will follow Title 23 Code of Federal Regulations (CFR) 172, Title 49 CFR 18, ORS 279A.055, the current Stale Administrative Rules and State Personal Services Contracting Procedures as approved by the FHWA. Such personal services contract(s) shall contain a description of the work to be performed, a project schedule, and the method of payment. Subcontracts shall contain all required provisions of Agency as outlined in the Agreement. No reimbursement shall be made using federal-aid funds for any costs incurred by Agency or its consultant prior to receiving authorization from State to proceed. Any amendments to such contract(s) also require State's approval. 4. On all construction projects where State is the signatory party to the contract, and where Agency is doing the construction engineering and project management, Agency, subject to any limitations imposed by state law and the Oregon Constitution, agrees to accept all responsibility, defend lawsuits, indemnify and hold State harmless, for all tort claims, contract claims, or any other lawsuit arising out of the contractor's work or Agency's supervision of the project. 11 Agency/State Agreement No. 27871 REQUIRED STATEMENT FOR UNITED STATES DEPARTMENT OF TRANSPORTATION (USDOT) FINANCIAL ASSISTANCE AGREEMENT 5. If as a condition of assistance, Agency has submitted and the United States Department of Transportation (USDOT) has approved a Disadvantaged Business Enterprise Affirmative Action Program which Agency agrees to carry out, this affirmative action program is incorporated into the financial assistance agreement by reference. That program shall be treated as a legal obligation and failure to carry out its terms shall be treated as a violation of the financial assistance agreement. Upon notification from USDOT to Agency of its failure to carry out the approved program, USDOT shall impose such sanctions as noted in Title 49. CFR. Part 26, which sanctions may include termination of the agreement or other measures that may affect the ability of Agency to obtain future USDOT financial assistance. 6. Disadvantaged Business Enterprises (DBE) Obligations. State and its contractor agree to ensure that DBE as defined in Title 49. CFR Part 26, have the opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with federal funds. In this regard, Agency shall take all necessary and reasonable steps in accordance with Title 49. CFR. Part 26, to ensure that DBE have the opportunity to compete for and perform contracts. Neither State nor Agency and its contractors shall discriminate on the basis of race, color, national origin or sex in the award and performance of federally-assisted contracts. Agency shall carry out applicable requirements of Title 49. CFR. Part 26, in the award and administration of such contracts. Failure by Agency to carry out these requirements is a material breach of this Agreement, which may result in the termination of this contract or such other remedy as State deems appropriate. 7. The DBE Policy Statement and Obligations shall be included in all subcontracts entered into under this Agreement. 8. Agency agrees to comply with all applicable civil rights laws, rules and regulations, including Title V and Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990 (ADA), and Titles VI and VII of the Civil Rights Act of 1964. 9. The parties hereto agree and understand that they will comply with all applicable federal, state, and local laws, regulations, executive orders and ordinances applicable to the work including, but not limited to, the provisions of ORS 2790.505. 279C.515. 2790 520 279C.530 and 2796 270 incorporated herein by reference and made a part hereof, Title 23 CFR Parts 1 11, 140, 710 and 771; Title 49 CFR Parts 18, 24 and 26; 2 CFR 225, and OMB CIRCULAR NO A-133 Title 23, USG. Federal-Aid Highway Act: Title 41, Chapter 1 USC 51-58 Anti-Kickback Act Title 42 USC, Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended and provisions of Federal-Aid Policy Guide (FAPG). STATE OBLIGATIONS PROJECT FUNDING REQUEST 10. State shall submit a Project funding request to FHWA with a request for approval of federal-aid participation in all engineering, right-of-way acquisition, eligible utility relocations and/or construction work for the Project. No work shall proceed on any activity in which federal-aid participation is desired until such approval has been obtained. The program shall include services to be provided by State, Agency, or others. State shall notify Agency in writing when STDPRO-2011.doc 12 Rev. 01-18-2011 Agency/State Agreement No. 27871 authorization to proceed has been received from FHWA. Major responsibility for the various phases of the Project will be as outlined in the Special Provisions. All work and records of such work shall be in conformance with FHWA rules and regulations. FINANCE 11. State shall, in the first instance, pay all reimbursable costs of the Project, submit all claims for federal-aid participation to FHWA in the normal manner and compile accurate cost accounting records. Agency may request a statement of costs to date at any time by submitting a written request. When the actual total cost of the Project has been computed, State shall furnish Agency with an itemized statement of final costs. Agency shall pay an amount which, when added to said advance deposit and federal reimbursement payment, will equal 100 percent of the final total actual cost. Any portion of deposits made in excess of the final total costs of Project, minus federal reimbursement, shall be released to Agency. The actual cost of services provided by State will be charged to the Project expenditure account(s) and will be included in the total cost of the Project. 12. If federal funds are used, State will specify the Catalog of Federal Domestic Assistance (CFDA) number in the Agreement. State will also determine and clearly state in the Agreement if recipient is a subrecipient or vendor, using criteria in Circular A-133. PROJECT AC72VIUES 13. State shall, if the preliminary engineering work is performed by Agency or others, review and process or approve all environmental statements, preliminary and final plans, specifications and cost estimates. State shall, if they prepare these documents, offer Agency the opportunity to review and approve the documents prior to advertising for bids. 14. The party responsible for performing preliminary engineering for the Project shall, as part of its preliminary engineering costs, obtain all Project related permits necessary for the construction of said Project. Said permits shall include, but are not limited to, access, utility, environmental, construction, and approach permits: All pre-construction permits will be obtained prior to advertisement for construction. 15. State shall prepare contract and bidding documents, advertise for bid proposals, and award all contracts. 16. Upon State's award of a construction contract, State shall perform independent assurance testing in accordance with State and FHWA Standards, process and pay all contractor progress estimates, check final quantities and costs, and oversee and provide intermittent inspection services during the construction phase of the Project. 17. State shall, as a Project expense, assign a liaison person to provide Project monitoring as needed throughout all phases of Project activities (preliminary engineering, right-of-way acquisition, and construction). The liaison shall process reimbursement for federal participation costs. RIGHT OF WAY 18. State is responsible for proper acquisition of the necessary right of way and easements for construction and maintenance of the Project. Agency may perform acquisition of the necessary STDPRO-2011.doc - 13 Rev. 01-18-2011 Agency/State Agreement No. 27871 right of way and easements for construction and maintenance of the Project, provided Agency (or Agency's consultant) are qualified to do such work as required by the Slate's Right of Way Manual and have obtained prior approval from State's Region Right of Way office to do such work. 19. Regardless of who acquires or performs any of the right of way activities, a right of way services agreement shall be created by State's Region Right of Way office setting forth the responsibilities and activities to be accomplished by each party. State shall always be responsible for requesting project funding, coordinating certification of the right of way, and providing oversight and monitoring. Funding authorization requests for federal right of way funds must be sent through the State's Region Right of Way offices on all projects. All projects must have right of way certification coordinated through State's Region Right of Way offices (even for projects where no federal funds were used for right of way, but federal funds were used elsewhere on the Project). Agency should contact the State's Region Right of Way office for additional information or clarification. 20. State shall review all right of way activities engaged in by Agency to assure compliance with applicable laws and regulations. Agency agrees that right of way activities shall be in accord with the Uniform Relocation Assistance & Real Property Acquisition Policies Act of 1970, as amended, ORS Chapter 35, FHWA Federal-Aid Policy Guide, State's Right of Way Manual and the Code of Federal Regulations, Title 23, Part 710 and Title 49, Part 24. 21. If any real property purchased with federal-aid participation is no longer needed for the originally authorized purpose, the disposition of such property shall be subject to applicable rules and regulations, which are in effect at the time of disposition. Reimbursement to State and FHWA of the required proportionate shares of the fair market value may be required. 22. Agency insures that all Project right of way monumentation will be conducted in conformance with ORS 209.155. 23. State and Agency grants each other authority to enter onto the other's right of way for the performance of the Project. AGENCY OBLIGATIONS FINANCE 24. Federal funds shall be applied toward Project costs at the current federal-aid matching ratio, unless otherwise agreed and allowable by law. Agency shall be responsible for the entire match amount, unless otherwise agreed to and specified in the intergovernmental agreement. 25. Agency's estimated share and advance deposit. a) Agency shall, prior to commencement of the preliminary engineering and/or right of way acquisition phases, deposit with State its estimated share of each phase. Exception may be made in the case of projects where Agency has written approval from State to use in-kind contributions rather than cash to satisfy all or part of the matching funds requirement. b) Agency's construction phase deposit shall be 110 percent of Agency's share of the engineer's estimate and shall be received prior to award of the construction STDPRO-2011,doc 14 Rev. 01-18-2011 Agency/State Agreement No. 27871 contract. Any additional balance of the deposit, based on the actual bid must be received within forty-five (45) days of receipt of written notification by State of the final amount due, unless the contract is canceled. Any unnecessary balance of a cash deposit, based on the actual bid, will be refunded within forty-five (45) days of receipt by State of the Project sponsor's written request. c) Pursuant to ORS 366.425, the advance deposit may be in the form of 1) money deposited in the State Treasury (an option where a deposit is made in the Local Government Investment Pool, and an Irrevocable Limited Power of Attorney is sent to the Highway Finance Office), or 2) an Irrevocable Letter of Credit issued by a local bank in the name of Stale, or 3) cash. d) Agency may satisfy all or part of any matching funds requirements by use of in- kind contributions rather than cash when prior written approval has been given by State. 26. If the estimated cost exceeds the total matched federal funds available, Agency shall deposit its share of the required matching funds, plus 100 percent of all costs in excess of the total matched federal funds. Agency shall also pay 100 percent of the cost of any item in which FHWA will not participate. If Agency has not repaid any non-participating cost, future allocations of federal funds, or allocations of State Highway Trust Funds, to that Agency may be withheld to pay the non-participating costs. If. State approves processes, procedures, or contract administration outside the Local Agency Guidelines that result in items being declared non-participating, those items will not result in the withholding of Agency's future allocations of federal funds or the future allocations of State Highway Trust Funds. 27. Costs incurred by State and Agency for services performed in connection with any phase of the Project shall be charged to the Project, unless otherwise mutually agreed upon. 28. If Agency makes a written request for the cancellation of a federal-aid project; Agency shall bear 100 percent of all costs as of the date of cancellation. If State was the sole cause of the cancellation, State shall bear 100 percent of all costs incurred. If it is determined that the cancellation was caused by third parties or circumstances beyond the control of State or Agency, Agency shall bear all development costs, whether incurred by State or Agency, either directly or through contract services, and State shall bear any State administrative costs incurred. After settlement of payments. State shall deliver surveys, maps, field notes, and all other data to Agency. 29. Agency shall follow requirements of the Single Audit Act. The requirements stated in the Single Audit Act must be followed by those local governments and non-profit organizations receiving $500,000 or more in federal funds. The Single Audit Act of 1984, PL 98-502 as amended by PL 104-156, described in "OMB CIRCULAR NO. A-133", requires local governments and non-profit organizations to obtain an audit that includes internal controls and compliance with federal laws and regulations of all federally-funded programs in which the local agency participates. The cost of this audit can be partially prorated to the federal program. 30. Agency shall make additional deposits, as needed, upon request from State. Requests for additional deposits shall be accompanied by an itemized statement of expenditures and an estimated cost to complete the Project. STDPRO.2011.doc 15 Rev. 01-18-2011 Agency/State Agreement No. 27871 31. Agency shall present invoices for 100 percent of actual costs incurred by Agency on behalf of the Project directly to State's Liaison Person for review and approval. Such invoices shall identify the Project and Agreement number, and shall itemize and explain all expenses for which reimbursement is claimed. Billings shall be presented for periods of not less than one-month duration, based on actual expenses to date. All billings received from Agency must be approved by State's Liaison Person prior to payment. Agency's actual costs eligible for federal-aid or State participation shall be those allowable under the provisions of Title 23 CFR Parts 1. 11, 140 and 710, Final billings shall be submitted to State for processing within three (3) months from the end of each funding phase as follows: 1) award date of a construction contract for preliminary engineering (PE) 2) last payment for right of way. acquisition and 3) third notification for construction. Partial billing (progress payment) shall be submitted to State within three (3) months from date that costs are incurred. Final billings submitted after the three months shall not be eligible for reimbursement. 32. The cost records and accounts pertaining to work covered by this Agreement are to be kept available for inspection by representatives of State and FHWA for a period of six (6) years following the date of final voucher to FHWA. Copies of such records and accounts shall be made available upon request. For real property and equipment, the retention period starts from the date of disposition (Title 49 CFR 18.42). 33. State shall request reimbursement, and Agency agrees to reimburse State, for federal-aid funds distributed to Agency if any of the following events occur: a) Right of way acquisition or actual construction of the facility for which preliminary engineering is undertaken is not started by the close of the tenth fiscal year following the fiscal year in which the federal-aid funds were authorized; b) Right of way acquisition is undertaken utilizing federal-aid funds and actual construction is not started by the close of the twentieth fiscal year following the fiscal year in which the federal-aid funds were authorized for right of way acquisition. c) Construction proceeds after the Project is determined to be ineligible for federal-aid funding (e.g., no environmental approval, lacking permits, or other reasons). 34. Agency shall maintain all Project documentation in keeping with State and FHWA standards and specifications. This shall include, but is not limited to, daily work records, quantity documentation, material invoices and quality documentation, certificates of origin, process control records, test results, and inspection records to ensure that projects are completed in conformance with approved plans and specifications. RAILROADS 35. Agency shall follow State established policy and procedures when impacts occur on railroad property. The policy and procedures are available through State's appropriate Region contact or State's Railroad Liaison. Only those costs allowable under Title 23 CFR Part 646, subpart B and Title 23 CFR Part 140, subpart I, shall be included in the total Project costs; all other costs associated with railroad work will be at the sole expense of Agency, or others. Agency may request State, in writing, to provide railroad coordination and negotiations. However, State is under no obligation to agree to perform said duties. STDPRO-2011.doc 16 Rev. 01-18-2011 Agency/State Agreement No. 27871 UTIL17TES 36. Agency shall follow State established Statutes, Policies and Procedures when impacts occur to privately or publicly-owned utilities. Only those utility relocations, which are eligible for federal-aid participation under, the FAPG, Title 23 CFR 645A, Subpart A and B, shall be included in the total Project costs; all other utility relocations shall be at the sole expense of Agency, or others. State will arrange for utility relocations/adjustments in areas lying within jurisdiction of State, if State is performing the preliminary engineering. Agency may request State in writing to arrange for utility relocations/adjustments lying within Agency jurisdiction, acting on behalf of Agency. This request must be submitted no later than twenty-one (21) weeks prior to bid let date. However, State is under no obligation to agree to perform said duties. 37. The State utility relocation policy, procedures and forms are available through the appropriate State's Region Utility Specialist OF State Utility Liaison. Agency shall provide copies of all signed utility notifications, agreements and Utility Certification to the State Utility Liaison. STANDARDS 38. Agency agrees that design standards for all projects on the National Highway System (NHS) and the Oregon State Highway System shall be in compliance to standards specified in the current "State Highway Design Manual" and related references. Construction plans shall be in conformance with standard practices of State for plans prepared by its own staff. All specifications for the Project shall be in substantial compliance with the most current "Oregon Standard Specifications for HighwaV Construction". 39. Agency agrees that minimum design standards for non-NHS projects shall be recommended AASHTO Standards and in accordance with the current "Oregon Bicycle and Pedestrian Plan unless otherwise requested by Agency and approved by State. 40. Agency agrees and will verify that the installation of traffic control devices shall meet the warrants prescribed in the "Manual on Uniform Traffic Control Devices and Oregon Supplements". 41. All plans and specifications shall be developed in general conformance with the current "Contract Plans Development Guide" and the current "Oregon Standard Specifications for HighwaV Construction" and/or guidelines provided. 42. The standard unit of measurement for all aspects of the Project shall be English Units. All Project documents and products shall be in English. This includes, but is not limited to, right of way, environmental documents, plans and specifications, and utilities. GRADE CHANGE LL4BILI2-Y 43. Agency, if a County, acknowledges the effect and scope of ORS 105.755 and agrees that all acts necessary to complete construction of the Project which may alter or change the grade of existing county roads are being accomplished at the direct request of the County. 44. Agency, if a City, hereby accepts responsibility for all claims for damages from grade changes. Approval of plans by State shall not subject State to liability under ORS 105.760 for change of grade. STDPRO-2011.doc 17 Rev. 01-18-2011 Agency/State Agreement No. 27871 45. Agency, if a City, by execution of Agreement, gives its consent as required by ORS 373.030(2) to any and all changes of grade within the City limits, and gives its consent as required by ORS 373.050(1) to any and all closure of streets intersecting the highway, if any there be in connection with or arising out of the project covered by the Agreement. CONTRACTOR CLAIMS 46. Agency shall, to the extent permitted by state law, indemnify, hold harmless and provide legal defense for State against all claims brought by the contractor, or others resulting from Agency's failure to comply with the terms of this Agreement. 47. Notwithstanding the foregoing defense obligations under Paragraph 46, neither Agency nor any attorney engaged by Agency shall defend any claim in the name of the State of Oregon or any agency of the State of Oregon, nor purport to act as legal representative of the State of Oregon or any of its agencies, without the prior written consent of the Oregon Attorney General. The State of Oregon may, at anytime at its election assume its own defense and settlement in the event that it determines that Agency is prohibited from defending the State of Oregon, or that Agency is not adequately defending the State of Oregon's interests, or that an important governmental principle is at issue or that it is in the best interests of the State of Oregon to do so. The State of Oregon reserves all rights to pursue any claims it may have against Agency if the State of Oregon elects to assume its own defense. MAINTENANCE RESPONSIBILITIES 48. Agency shall, upon completion of construction, thereafter maintain and operate the Project at its own cost and expense, and in a manner satisfactory to State and FHWA. WORKERS' COMPENSATION COVERAGE 49. All employers, including Agency, that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation coverage unless such employers are exempt under ORS 656.126. Employers Liability Insurance with coverage limits of not less than $500,000 must be included. Agency shall ensure that each of its contractors complies with these requirements. LOBBYING RESTRICTIONS 50. Agency certifies by signing the Agreement that: a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. b) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any STDPRO-201 1.doc 18 Rev. 01-18-2011 I e • m , Agency/State , Agreement No. 27871 federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. c) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subgrants, and contracts and subcontracts under grants, subgrants, loans, and cooperative agreements) which exceed $100,000, and that all such subrecipients shall certify and disclose accordingly. d) This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Title 31, USC Section 1352: e) Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Paragraphs 36, 37, and 48 are not applicable to any local agency on state highway projects. STDPRO-2011.doc 19 Rev. 01-18-2011 Misc. Contracts and Agreements No.28455 INTERGOVERNMENTAL AGREEMENT FOR RIGHT OF WAY SERVICES Walker Avenue: Ashland Street to East Main Street THIS AGREEMENT is made and entered into by and between the STATE OF OREGON, acting by and through its Department of Transportation, hereinafter referred to as "State"; and the City of Ashland, acting by and through its elected officials, hereinafter referred to as "Agency," both herein referred to individually or collectively as "Party" or "Parties." RECITALS 1. By the authority granted in Oregon Revised Statute (ORS) 190.110, 283.110, 366.572 and 366.576, state agencies may enter into agreements with units of local government or other state agencies for the performance of any or all functions and activities that a Party to the agreement, its officers, or agents have the authority to perform. 2. By the authority granted in ORS 366.425, State may accept deposits of money or an irrevocable letter of credit from any county, city, road district, person, firm, or corporation for the performance of work on any public highway within the State. When said money or a letter of credit is deposited, State shall proceed with the Project. Money so deposited shall be disbursed for the purpose for which it was deposited. 3. That certain Walker Avenue is under the jurisdiction and control of Agency and Agency may enter into an agreement for the acquisition of real property. 4. N/A, is a part of the state highway system under the jurisdiction and control of the Oregon Transportation Commission (OTC). 5. This Agreement shall define roles and responsibilities of the Parties regarding the real property to be used as part of right of way for road, street or construction of public improvement. The scope and funding may be further described in CONGESTION MITIGATION AND AIR QUALITY (CMAQ) PROGRAM Agreement number 27871. Hereinafter, all acts necessary to accomplish services in this Agreement shall be referred to as "Project." NOW THEREFORE, the premises being in general as stated in the foregoing Recitals, it is agreed by and between the Parties hereto as follows: TERMS OF AGREEMENT 1. Under such authority, State and Agency agree to perform certain right of way activities shown in Special Provisions - Exhibit A, attached hereto and by this reference made a part hereof. If the State performs right of way services on behalf of the Agency, under R/W Services IGA (Revised June 2011) - 1 no conditions shall Agency's obligations for said services exceed a maximum of $5,000, including all expenses, unless agreed upon by both Parties. 2. The work shall begin on the date all required signatures are obtained and shall be completed no later than July 31, 2022, on which date this Agreement automatically terminates unless extended by a fully executed amendment. 3. The process to be followed by the Parties in carrying out this Agreement is set out in Exhibit A. 4. It is further agreed both Parties will strictly follow the rules, policies and procedures of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, ORS Chapter 35 and the "State Right of Way Manual". STATE OBLIGATIONS 1. State shall perform the work described in Special Provisions - Exhibit A. 2. With the exception of work related to appraisals, State shall not enter into any subcontracts for any of the work scheduled under this Agreement without obtaining prior written approval from Agency. 3. If the State performs right of way services on behalf of the Agency, State shall perform the service under this Agreement as an independent contractor and shall be exclusively responsible for all costs and expenses related to its employment of individuals to perform the work under this Agreement including, but not limited to, retirement contributions, workers compensation, unemployment taxes, and state and federal income tax withholdings. 4. State's right of way contact person for this Project is Craig Pearsall, ODOT Sr. Right of Way Agent, 3500 NW Stewart Pkwy, Roseburg, OR 97470-1687, 541-957-3552, craig.a.pearsall@odot.state.or.us, or assigned designee upon individual's absence. State shall notify the other Party in writing of any contact changes during the term of this Agreement. AGENCY OBLIGATIONS 1. Agency shall perform the work described in Special Provisions - Exhibit A. 2. Agency certifies, at the time this Agreement is executed, that sufficient funds are available and authorized for expenditure to finance costs of this Agreement within Agency's current appropriation or limitation of current budget. Agency is willing and able to finance all, or its pro-rata share of all, costs and expenses incurred in the Project up to its maximum. -2- 28455 3. Agency may utilize its own staff or subcontract any of the work scheduled under this Agreement provided Agency receives prior written approval of any staff, consultant or contractor by the State's Region Right of Way office. 4. Agency represents that this Agreement is signed by personnel authorized to do so on behalf of Agency. 5. Agency's right of way contact person for this Project is Morgan Wayman, Project Manager, 20 East Main Street, Ashland, OR 97520; waymanm@ashland.or.us; (541) 552-2414, or assigned designee upon individual's absence. Agency shall notify the other Party in writing of any contact information changes during the term of this Agreement. PAYMENT FOR SERVICES AND EXPENDITURES: 1. In consideration for the services performed by State (as identified in the attached Exhibit A), Agency agrees to pay or reimburse State a maximum amount of $5,000. Said maximum amount shall include reimbursement for all expenses, including travel expenses. Travel expenses shall be reimbursed to State in accordance with the current Oregon Department of Administrative Services' rates. Any expenditure beyond federal participation will be from, or reimbursed from, Agency funds. Payment in Agency and/or federal funds in any combination shall not exceed said maximum, unless agreed upon by both Parties. 2. Agency agrees to reimburse salaries and payroll reserves of State employees working on Project, direct costs, costs of rental equipment used, and per-diem expenditures. GENERAL PROVISIONS: 1. This Agreement may be terminated by either Party upon thirty (30) days' notice, in writing and delivered by certified mail or in person, under any of the following conditions: a. If either Party fails to provide services called for by this Agreement within the time specified herein or any extension thereof. b. If either Party fails to perform any of the other provisions of this Agreement or so fails to pursue the work as to endanger performance of this Agreement in accordance with its terms, and after receipt of written notice fails to correct such failures within ten (10) days or such longer period as may be authorized. c. If Agency fails to provide payment of its share of the cost of the Project. -3- 28455 d. If State fails to receive funding, appropriations, limitations or other expenditure authority sufficient to allow State, in the exercise of its reasonable administrative discretion, to continue to make payments for performance of this Agreement. e. If federal or state laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is prohibited or State is prohibited from paying for such work from the planned funding source. 2. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 3. Agency acknowledges and agrees that State, the Oregon Secretary of State's Office, the federal government, and their duly authorized representatives shall have access to the books, documents, papers, and records of Agency which are directly pertinent to this Agreement for the purpose of making audit, examination, excerpts, and transcripts for a period of six (6) years after final payment. Copies of applicable records shall be made available upon request. Payment for costs of copies is reimbursable by State. 4. Agency shall comply with all federal, state, and local laws, regulations, executive orders and ordinances applicable to the work under this Agreement, including, without limitation, the provisions of ORS 279B.220, 279B.225, 2798.230, 27913.235 and 27913.270 incorporated herein by reference and made a part hereof. Without limiting the generality of the foregoing, Agency expressly agrees to comply with (i) Title VI of Civil Rights Act of 1964; (ii) Title V and Section 504 of the Rehabilitation Act of 1973; (iii) the Americans with Disabilities Act of 1990 and ORS 659A.142; (iv) all regulations and administrative rules established pursuant to the foregoing laws; and (v) all other applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. 5. All employers that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required workers' compensation coverage unless such employers are exempt under ORS 656.126. Employers Liability insurance with coverage limits of not less than $500,000 must be included. Both Parties shall ensure that each of its subcontractors complies with these requirements. 6. If any third party makes any claim or brings any action, suit or proceeding alleging a tort as now or hereafter defined in ORS 30.260 ("Third Party Claim") against State or Agency with respect to which the other Party may have liability, the notified Party must promptly notify the other Party in writing of the Third Party Claim and deliver to the other Party a copy of the claim, process, and all legal pleadings with respect to the Third Party Claim. Each Party is entitled to participate in the defense of a Third Party Claim and to defend a Third Party Claim with counsel of its own choosing. Receipt by a Party of the notice and copies required in this paragraph and meaningful opportunity for the Party to participate in the investigation, defense and -4- 28455 settlement of the Third Party Claim with counsel of its own choosing are conditions precedent to that Party's liability with respect to the Third Party Claim. 7. With respect to a Third Party Claim for which State is jointly liable with Agency (or would be if joined in the Third Party Claim), State shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Agency in such proportion as is appropriate to reflect the relative fault of State on the one hand and of Agency on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of State on the one hand and of Agency on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. State's contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if State had sole liability in the proceeding. 8. With respect to a Third Party Claim for which Agency is jointly liable with State (or would be if joined in the Third Party Claim), Agency shall contribute to the amount of expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by State in such proportion as is appropriate to reflect the relative fault of Agency on the one hand and of State on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of Agency on the one hand and of State on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. Agency's contribution amount in any instance is capped to the same extent it would have been capped under Oregon law, including the Oregon Tort Claims Act, ORS 30.260 to 30.300, if it had sole liability in the proceeding. 9. The Parties shall attempt in good faith to resolve any dispute arising out of this Agreement. In addition, the Parties may agree to utilize a jointly selected mediator or arbitrator (for non-binding arbitration) to resolve the dispute short of litigation. 10. If federal funds are involved in this Agreement, Exhibits B and C are attached hereto and by this reference made a part of this Agreement, and are hereby certified to by Agency. 11. If federal funds are involved in this Agreement, Agency, as a recipient of federal funds, pursuant to this Agreement with the State, shall assume sole liability for Agency's breach of any federal statutes, rules, program requirements and grant provisions applicable to the federal funds, and shall, upon Agency's breach of any such conditions that requires the State to return funds to the Federal Highway Administration, hold harmless and indemnify the State for an amount equal to the -5- 28455 funds received under this Agreement; or if legal limitations apply to the indemnification ability of Agency, the indemnification amount shall be the maximum amount of funds available for expenditure, including any available contingency funds or other available non-appropriated funds, up to the amount received under this Agreement. 12. The Parties hereto agree that if any term or provision of this Agreement is declared by a court of competent jurisdiction to be invalid, unenforceable, illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid. 13. This Agreement may be executed in several counterparts (facsimile or otherwise) all of which when taken together shall constitute one agreement binding on all Parties, notwithstanding that all Parties are not signatories to the same counterpart. Each copy of this Agreement so executed shall constitute an original. 14.This Agreement and attached exhibits constitute the entire agreement between the Parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification or change of terms of this Agreement shall bind either Party unless in writing and signed by both Parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision. THE PARTIES, by execution of this Agreement, hereby acknowledge that their signing representatives have read this Agreement, understand it, and agree to be bound by its terms and conditions. Signature Page to Follow -6- 28455 CITY OF ASHLAND, by and through STATE OF OREGON, by and through its elected officials its Departs nt of Tr n/sportation By /gy ~rr~,tat Date e Right f Way anager Date (o Z, -?Q b z.. By APPROVAL COMMENDED By Date Region Righ of W y Manager APPROVED AS TO LEGAL Date Z SUFFICIENCY By ~1~ i BY Date Date A 2- APPROVED AS TO LEGAL SUFFICIENCY gencv Contact: Jim Olson By N/A Ashland City Engineer Assistant Attorney General 20 East Main Street Ashland, OR 97520 Date (541) 488-5587 jimo@ashland.or.us APPROVED (If Litigation Work Related to Condemnation is to be done by State) By N/A State Contact: Chief Trial Counsel Craig Pearsall, Sr. Agent ODOT Region 3 Right of Way Date 3500 NW Stewart Pkwy Roseburg, OR 97470-1687 541-957-3552 craig.a.pearsall@odot.state.or.us 28455 7 SPECIAL PROVISIONS EXHIBIT A Right of Way Services THINGS TO BE DONE BY STATE OR AGENCY 1. Pursuant to this Agreement, the work performed on behalf of the Agency can be performed by the Agency, the Agency's consultant, or a State Flex Services consultant. The work may be performed by Agency staff or any of these representatives on behalf of Agency individually or collectively provided they are qualified to perform such functions and after receipt of approval from the State's Region 3 Right of Way Manager. Said approval must be obtained, in writing, prior to the performance of said activities. 2. With the exception of work related to appraisals, State shall not enter into any subcontracts for any of the work scheduled under this Agreement without obtaining prior written approval from Agency. 3. Both Parties will strictly follow the rules, policies and procedures of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, ORS Chapter 35 and the "State Right of Way Manual". Instructions: Insert either: State, Agency, or N/A on each line. A. Preliminary Phase 1. Agency shall provide preliminary cost estimates. 2. Agency shall make preliminary contacts with property owners. 3. Agency shall gather and provide data for environmental documents. 4. Agency shall develop access and approach road list. 5. Agency shall help provide field location and Project data. B. Acquisition Phase 1. General: a. When doing the Acquisition work, Agency shall provide State with a status report of the Project monthly. b. Title to properties acquired shall be in the name of the Agency. c. Prior to the initiation of acquisitions, if title to the properties is to be acquired in the name of the Agency, the Agency shall adopt a resolution of intention and determination of necessity in accord with ORS 35.235 and ORS 35.610, authorizing acquisition and condemnation. If the Oregon Department of Justice -8- 28455 is to handle condemnation work, prior approval evidenced by Chief Trial Counsel, Department of Justice, signature on this Agreement is required; and authorization for such representation shall be included in the resolution adopted by the Agency. Prior approval by Oregon Department of Justice is required. 2. Legal Descriptions: a. Agency shall provide sufficient horizontal control, recovery and retracement surveys, vesting deeds, maps and other data so that legal descriptions can be written. b. Agency shall provide construction plans and cross-section information for the Project. c. Agency shall write legal descriptions and prepare right of way maps. If the Agency acquires any right of way on a State highway, the property descriptions and right of way maps shall be based upon centerline stationing and shall be prepared in accordance with the current "State Right of Way & Rail/Utility Coordination Manual", "Contractor Services Guide" and the "Right of Way Engineering Manual". The preliminary and final versions of the property descriptions and right of way maps must be reviewed and approved by the State. d. Agency shall specify the degree of title to be acquired (e.g., fee, easement). 3. Real Property and Title Insurance: a. Agency shall provide preliminary title reports, if State determines they are needed, before negotiations for acquisition commence. b. Agency shall determine sufficiency of title (taking subject to). If the Agency acquires any right of way on a State highway, sufficiency of title (taking subject to) shall be determined in accordance with the current "State Right of Way Manual" and the "Contractor Services Guide". Agency shall clear any encumbrances necessary to conform to these requirements, obtain Title Insurance policies as required and provide the State copies of any title policies for the properties acquired. c. State shall conduct a Level 1 Hazardous Materials Study within project limits to detect presence of hazardous materials on any property purchase, excavation or disturbance of structures, as early in the project design as possible, but at a minimum prior to property acquisition or approved design. d. Agency shall conduct a Level 2 Site Investigation of sufficient scope to confirm the presence of contamination, determine impacts to properties and develop special provisions and cost estimates, if the Level 1 Corridor study -9- 28455 indicates the potential presence of contamination that could impact the properties. • If contamination is found, a recommendation for remediation will be presented to Agency. e. Agency shall be responsible for arrangement of any necessary remediation. f. Agency shall conduct asbestos, lead paint and other hazardous materials surveys for all structures that will be demolished, renovated or otherwise disturbed. Asbestos surveys must be conducted by an AHERA (asbestos hazard emergency response act) certified inspector. 4. Appraisal: a. Agency shall conduct the valuation process of properties to be acquired. b. Agency shall perform the Appraisal Reviews. c. Agency shall recommend Just Compensation, based upon a review of the valuation by qualified personnel. 5. Negotiations: a. Agency shall tender all monetary offers to land-owners in writing at the compensation shown in the appraisal review. Conveyances taken for more or less than the approved Just Compensation will require a statement justifying the settlement. Said statement will include the consideration of any property trades, construction obligations and zoning or permit concessions. If State performs this function, it will provide the Agency with all pertinent letters, negotiation records and obligations incurred during the acquisition process. b. State and Agency shall determine a date for certification of right of way and agree to cosign the State's Right of Way Certification form. State and Agency agree possession of all right of way shall occur prior to advertising of any construction contract, unless appropriate exceptions have been agreed to by Agency and State. c. Agency agrees to file all Recommendations for Condemnation at least seventy (70) days prior to the right of way certification date if negotiations have not been successful on those properties. 6. Relocation: a. Agency shall perform any relocation assistance, make replacement housing computations, and do all things necessary to relocate any displaced parties on the Project. -10- 28455 b. Agency shall make all relocation and moving payments for the Project. c. Agency shall perform the relocation appeal process. C. Closing Phase 1. Agency shall close all transactions. This includes drawing of deeds, releases and satisfactions necessary to clear title, obtaining signatures on release documents, and making all payments. If Agency is handling the closing, State shall submit all signed Final Report packets, information required by the Uniform Act, and agreements to the Agency. 2. Agency shall record conveyance documents, only upon acceptance by appropriate agency. D. Property Management 1. Agency shall take possession of all the acquired properties. There shall be no encroachments of buildings or other private improvements allowed upon the State highway right of way. 2. Agency shall dispose of all improvements and excess land. E. Condemnation 1. Agency may offer mediation if the parties have reached an impasse. 2. Agency shall perform all administrative functions in preparation of the condemnation process, such as preparing final offer and complaint letters. 3. Agency shall perform all legal and litigation work related to the condemnation process. (If State agrees to handle legal and litigation work, prior approval evidenced by Chief Trial Counsel, Department of Justice, signature on this Agreement is required. Where it is contemplated that property will be obtained for Agency for the Project, such approval will be conditioned on passage of a resolution by Agency substantially in the form attached hereto as Exhibit D, and by this reference made a part. hereof, specifically identifying the property being acquired.) 4. Where State shall perform legal or litigation work related to the condemnation process, Agency acknowledges, agrees and undertakes to assure that no member of Agency's board or council, nor Agency's mayor, when such member or mayor is a practicing attorney, nor Agency's attorney nor any member of the law firm of Agency's attorney, board or council member, or mayor, will represent any party, except Agency, against the State of Oregon, its employees or contractors, in any matter arising from or related to the Project which is the subject of this Agreement. F. Transfer of Right of Way to State -11- 28455 If applicable, Agency agrees to transfer to the State all right of way acquired on the State highway which was acquired in the Agency's name. The specific method of conveyance will be determined by the Agency and the State at the time of transfer and shall be coordinated by the State's Region Right of Way Manager. Agency agrees to provide the State all information and file documentation the State deems necessary to integrate the right of way into the State's highway system. At a minimum, this includes: copies of all recorded conveyance documents used to vest title in the name of the Agency during the right of way acquisition process, and the Agency's Final Report or Summary Report for each acquisition file that reflects the terms of the acquisition and all agreements with the property owner(s). G. Transfer of Right of Way to Agency If applicable, State agrees to transfer and Agency agrees to accept all right of way acquired on the Agency's facility which was acquired in the State's name. The specific method of conveyance will be determined by the State and the Agency at the time of transfer and shall be coordinated by the State's Region Right of Way Manager. If requested, State agrees to provide Agency information and file documentation associated with the transfer. -12- 28455 RESOLUTION EXERCISING THE POWER OF EMINENT DOMAIN EXHIBIT D Right of Way Services WHEREAS the City of Ashland may exercise the power of eminent domain pursuant to its charter and the Law of the State of Oregon generally, when the exercise of such power is deemed necessary by the City's governing body to accomplish public purposes for which the City has responsibility; WHEREAS the City has the responsibility of providing safe transportation routes for commerce, convenience and to adequately serve the traveling public; WHEREAS the project or projects known as Walker Avenue have been planned in accordance with appropriate engineering standards for the construction, maintenance or improvement of said transportation infrastructure such that property damage is minimized, transportation promoted, travel safeguarded; and WHEREAS to accomplish the project or projects set forth above it is necessary to acquire the interests in the property described in 'Exhibit A," attached to this resolution and, by this reference incorporated herein; now, therefore BE IT HEREBY RESOLVED by Council: 1. The foregoing statements of authority and need are, in fact, the case. The project or projects for which the property is required and is being acquired are necessary in the public interest, and the same have been planned, designed, located, and will be constructed in a manner which will be most compatible with the greatest public good and the least private injury; 2. The power of eminent domain is hereby exercised with respect to each of the interests in property described in Exhibit A. Each is acquired subject to payment of just compensation and subject to procedural requirements of Oregon law; 3. City's staff and Counsel are authorized and requested to attempt to agree with the owner and other persons in interest as to the compensation to be paid for each acquisition, and, in the event that no satisfactory agreement can be reached, to commence and prosecute such condemnation proceedings as may be necessary to finally determine just compensation or any other issue appropriate to be determined by a court in connection with the acquisition. This authorization is not intended to expand the jurisdiction of any court to decide matters determined above or determinable by the Commission. 4. City expressly reserves its jurisdiction to determine the necessity or propriety of any acquisition, its quantity, quality, or locality, and to change or abandon any acquisition. DATED this day of 20- -13- 28455 CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Public Hearing and adoption of Miscellaneous Fees & Charges for FY 2015 FROM: Lee Tuneberg, Administrative Services Director, tuneberl@ashland.or.us SUMMARY This public hearing is to consider changes to some of the various fees and charges used by the city. Many are remaining the same but some are recommended to increase by an inflationary factor. Others are to be adjusted to cover cost of service as recommended by staff. There are also a few new charges recommended. BACKGROUND AND POLICY IMPLICATIONS: In the past the City of Ashland adopted many separate resolutions and ordinances that set specific rates and fees for the multitude of services rendered to the public. That was greatly simplified during FY 2010-2011 when the current process of adopting a single fee resolution was approved. A staff goal had been to create an annual process that deals with most, if not all, miscellaneous fees and charges, and a booklet that is comprehensive yet easy to use. This is the third annual renewal of that process. Attached are the draft booklet and a resolution to establish or update the included fees effective July 1, 2014, unless another effective date is set by separate Council action. New fees and changes to old ones are identified in a "proposed" column and are bolded in red. If an entry is not bolded in red or identified as a new or changed fee it is the existing amount or methodology for calculation. Also attached are memos from departments explaining significant changes beyond inflationary adjustments. Please note that: 1. Items not approved may come back to Council separately or in this process next year. 2. Not all fees and charges are changing. 3. City and Park fees are included. 4. Utility rates and system development charges are examples of charges that are not incorporated within this process and resolution. 5. Some of the larger increases relate to "cost of providing the service," as substantiated by the departmental memo, and are intended to have the requester bear the cost. We should expect that there may be some "errors and omissions" so staff is requesting through the resolution that the new fee schedule take priority over any disconnects or conflicts with prior resolutions that were not repealed. When such incidents occur, staff will correct them as soon as possible and incorporate the revisions in updates to this new, annual process. Page I of 2 Ir, CITY OF ASHLAND Those departments requesting changes are listed below. To assist you in your review, the following proposed changes are attached: • Finance • Community Development • Electric • Fire • Information Technology • Municipal Courts • Police • Public Works • Parks & Recreation FISCAL IMPLICATIONS: These adjustments will fund or help to fund operations, most representing payments for requested services. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends Council approve these charges. SUGGESTED MOTION: I move approval of the resolution titled, "A Resolution Adopting a Miscellaneous Fees & Charges Document and Repealing Prior Fee Resolution 2013-17." ATTACHMENTS: All attachments for this item can be found in the May 6, 2014 packet: http://www.ashland.or.us/Page.asl2?NavlD=16241 Page 2 of 2 RESOLUTION NO. 2014- A RESOLUTION ADOPTING A MISCELLANEOUS FEES AND CHARGES DOCUMENT AND REPEALING PRIOR FEE RESOLUTION 2013-17 Recitals: A. The City currently has many resolutions and ordinances that establish fees for different departments and activities. B. The City desires to provide all of its miscellaneous fees and charges in one document so citizens can easily determine the costs of city services. C. The City desires to repeal all prior resolutions that establish fees and charges and adopt all fees and charges with one resolution for convenience of its citizenry. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The Miscellaneous Fees and Charges Document, which is attached hereto and incorporated herein by this reference, is hereby approved and establishes the fees and charges for City services. New fees, those not charged before, are not affective until 30 days following date of approval unless otherwise established by Council action. SECTION 2. The following resolutions are specifically repealed: Resolutions 2013-17 and all other fees and charges inconsistent with the fees and charges set forth herein are repealed. SECTION 3. This resolution was duly PASSED and ADOPTED this day of 2014, and takes effect upon signing by the Mayor. Barbara Christensen, City Recorder SIGNED and APPROVED this day of April, 2014. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page I of 1 CITY OF ^ASH LAN D MISCELLANEOUS FEES AND CHARGES DOCUMENT ADOPTED: June 4, 2013 EFFECTIVE: July 1, 2013 2014 PROPOSED CHANGES ASHLAND PARKS RECREATION PARKS AND RECREATION MISCELLANEOUS FEES AND CHARGES ADOPTED: June 4, 2013 EFFECTIVE: July 1, 2013 2014 PROPOSED CHANGES Miscellaneous Fees and Charges page 2 miscellaneous fees 8 charges Table of Contents CITY OF ASHLAND MISCELLANEOUS FEES AND CHARGES ALPHABETICALLY BY DEPARTMENT SECTION1 -Administrative Services/Finance Administrative Billing Charge ..............................................................................................................................Page 8 Initial Business License Application Fee ..............................................................................................................Page 8 Temporary Business License Application Fee ......................................................................................................Page 8 Renewal Application Fee ......................................................................................................................................Page 8 Rental Property Fees .............................................................................................................................................Page 8 Late Application Fee .............................................................................................................................................Page 8 Late Renewal Fee (paid 30 days after the due date) ..............................................................................................Page 8 Utility Billing Administrative Fees .......................................................................................................................Page 9 Reconnection Charge ............................................................................................................................................Page 9 Service Connection ...............................................................................................................................................Page 9 Parking Structure Fees ..........................................................................................................................................Page 9 Downtown Parking Area Fees ...............................................................................................................................Page 9 SECTION 2 - City Recorder Copy Fees ............................................................................................................................................................Page 10 Audio Tapes ..........................................:.............................................................................................................Page 10 Liquor Licenses ...................................................................................................................................................Page 10 Taxicab Licenses .................................................................................................................................................Page 10 Lien Searches ......................................................................................................................................................Page 10 Elections ..............................................................................................................................................................Page 10 Street/Alley Vacations ........................................................................................................................................Page 10 Ambulance ..........................................................................................................................................................Page 10 Annexation ..........................................................................................................................................................Page 10 Research Fee .......................................................................................................................................................Page 10 SECTION 3 - Community Development Pre-Application Conference ................................................................................................................................Page 11 Administration Actions .......................................................................................................................................Page 11 Type 1,11 and III Reviews ...................................................................................................................................Page 11 Legislative Amendments .....................................................................................................................................Page 12 Appeals ................................................................................................................................................................Page 12 Solar Access ........................................................................................................................................................Page 12 Community Development Fee ............................................................................................................................Page 12 Copy Fees ............................................................................................................................................................Page 12 Prepared Documents ...........................................................................................................................................Page 12 Research Fee .......................................................................................................................................................Page 12 Building Permit Fees ...........................................................................................................................................Page 13 Plan Review Fee for Commercial and Residential ..............................................................................................Page 13 Miscellaneous Fees for Commercial ...................................................................................................................Page 13 Inspection Fees for Commercial and Residential ................................................................................................Page 14 Change of Occupancy Fees .................................................................................................................................Page 14 Residential Plumbing Permit Fees ......................................................................................................................Page 14 Commercial Plumbing Permit Fees .....................................................................................................................Page 15 Residential Mechanical Permit Fees ...................................................................................................................Page 15 Commercial Mechanical Permit Fees ..................................................................................................................Page 16 Electrical Permit Fees .........................................................................................................................................Page 16 Residential Restricted Energy Electrical Permit Fees .........................................................................................Page 17 Renewable Energy Systems ................................................................................................................................Page 17 State of Oregon Surcharge ................................................................................................:.................................Page 17 Building Permit Refund Policy ..........................................................................................................................Page 18 Excavation/Grading Fees ....................................................................................................................................Page 18 miscellaneous fees 8 charges page 3 Table of Contents SECTION 4 - Electric Temporary Service Drop .....................................................................................................................................Page 19 Meter Charges .....................................................................................................................................................Page 19 _ Non Radio Frequency Meter Charges .................................................................................................................Page 19 Non Sufficient Funds Check Fee ........................................................................................................................Page 19 Reconnection Charge ..........................................................................................................................................Page 19 Service Calls .......................................................................................................................................................Page 19 Service Connection .............................................................................................................................................Page 19 Scheduled Work After Hours ..............................................................................................................................Page 19 Unauthorized Connection ...................................................................................................................................Page 19 Line Extension Charges ......................................................................................................................................Page 20 ENR Calculations .........................................:......................................................................................................Page 20 SECTION 5 - Fire Copy Fees ............................................................................................................................................................Page 21 Report Fees .........................................................................................................................................................Page 21 Research Fee .......................................................................................................................................................Page 21 Fire Fees ..............................................................................................................................................................Page 21 Emergency Medical Services ..............................................................................................................................Page 21 Plan Checks .........................................................................................................................................................Page 22 Other ...................................................................................................................................................................Page 22 First Aid/CPR Classes .........................................................................................................................................Page 22 Inspection Fees ....................................................................................................................................................Page 22 Weed Abatement .................................................................................................................................................Page 22 SECTION 6 - Information Technology Installation Fees ..................................................................................................................................................Page 23 Disconnect Fees ..................................................................................................................................................Page 23 Truck Roll ...........................................................................................................................................................Page 23 Field Technician Hourly Rate .............................................................................................................................Page 23 Consulting and Technical Support Hourly Rate ..................................................................................................Page 23 Non-City Employee Staff Screening ...................................................................................................................Page 23 Fiber Service Installation ....................................................................................................................................Page 23 Transit Fees .........................................................................................................................................................Page 23 Static IP Address .................................................................................................................................................Page 24 Quality of Service Fee .........................................................................................................................................Page 24 Business Augmented Upload Package ................................................................................................................Page 24 Non-Return of Customer Premise Equipment (CPE) Devices ............................................................................Page 24 CATV Seasonal Reconnects & Disconnects .......................................................................................................Page 24 CATV House Amp Fee ................................................................................................................:......................Page 24 Utility Billing Lobby Signage Fee ......................................................................................................................Page 24 page 4 miscellaneous fees 8 charges Table of Contents SECTION 7 - Municipal Court Appeal Transcript Fee .........................................................................................................................................Page 25 City Attorney Deferred Sentence/Diversion .......................................................................................................Page 25 Civil Compromise Costs .....................................................................................................................................Page 25 Compliance Inspection Fee .................................................................................................................................Page 25 Court Appointed Counsel Fees and Charges .......................................................................................................Page 25 Default Judgment ................................................................................................................................................Page 25 Discovery Fees ....................................................................................................................................................Page 25 Diversion by Municipal Court .............................................................................................................................Page 25 Extend/Amend City Attorney Deferred Sentence/Diversion ..............................................................................Page 25 Failure to Appear for Bench Trial/Show Cause Hearing ....................................................................................Page 25 Failure to Appear for Jury Trial ..........................................................................................................................Page 25 Forfeiture of Security ............................................................:.............................................................................Page 25 Mediation of Violation (Municipal Court Mediation) ........................................................................................Page 25 Non Sufficient Funds Check Fee ........................................................................................................................Page 25 Court Costs .........................................................................................................................................................Page 25 Expunction ..........................................................................................................................................................Page 25 Show Cause Admission of Allegation .................................................................................................................Page 25 Bench Probation Fee ...........................................................................................................................................Page 25 Warrant ................................................................................................................................................................Page 25 Withholding on County Assessment ...................................................................................................................Page 25 Domestic Partnership Registration .....................................................................................................................Page 25 SECTION 8 - Police Police Reports Page 26 Research Fee .......................................................................................................................................................Page 26 Visa Letters .........................................................................................................................................................Page 26 Finger Print Cards ...............................................................................................................................................Page 26 Photographs (CD) ................................................................................................................................................Page 26 Audio Tapes/ICOP Videos ..................................................................................................................................Page 26 Non Sufficient Funds Check Fee .........................................................................................................................Page 26 Impoun&Tow Fee ...............................................................................................................................................Page 26 Taxi Operator License .........................................................................................................................................Page 26 Bicycle License ...................................................................................................................................................Page 26 SECTION 9 - Public Works - Miscellaneous Fees & Charges Copy Fees, Black, White and Color ....................................................................................................................Page 27 Plat & Plan Checks ..............................................................................................................................................Page 27 Public Works/Engineering Inspections, Permit Etc ............................................................................................Page 28 GIS Data & Mapping Services ............................................................................................................................Page 29 Sanitary Sewer Connection Fees .........................................................................................................................Page 30 Water Connection Fees .......................................................................................................................................Page 30 Cemetery Fees .....................................................................................................................................................Page 31 Sexton Fees .........................................................................................................................................................Page 32 Miscellaneous Fees .............................................................................................................................................Page 32 Vases ..........................................................................:........................................................................................Page 32 CPI & ENR Calculations .....................................................................................................................................Page 32 miscellaneous fees 6 charges page 5 Table of Contents SECTION 10 - Parks and Recreation Miscellaneous Fees and Charges Wedding Packages ..............................................................................................................................................Page 34 Group Picnic Rentals ..........................................................................................................................................Page 34 Deposits ...............................................................................................................................................................Page 34 Special Event Fees ..............................................................................................................................................Page 34 Alcohol Fee .........................................................................................................................................................Page 34 General Building Reservations ...........................................................................................................................Page 34 Field Usage .........................................................................................................................................................Page 34 Calle Seating .......................................................................................................................................................Page 35 Daniel Meyer Pool ..............................................................................................................................................Page 35 Youth & Adult Recreation Programs Ashland Rotary Centennial Ice Rink .......................................................Page 35 Oak Knoll Golf Course Fees ...............................................................................................................................Page 35 Community Garden Fees ....................................................................................................................................Page 36 Nature Center School Programs ..........................................................................................................................Page 36 Nature Center Community Programs ..................................................................................................................Page 36 Oak Knoll Golf Course Wedding Fees ...............................................................................................................Page 36 Maps ....................................................................................................................................................................Page 36 SECTION 11 - List of Rates and Charges Set by Separate Resolutions System Development Charges (SDCs) List of Resolutions Parks and Recreation Resolution 2000-29 ..........................................................................................................Page 37 Transportation Resolution 1999-42 .....................................................................................................................Page 37 Sewer Resolution 2006-27 ..................................................................................................................................Page 37 Storm Resolution 2002-15 ..................................................................................................................................Page 37 Water Resolution 2006-27 ..................................................................................................................................Page 37 Utilities Rates and Fees List of Resolutions AFN Resolution 2010-28 ....................................................................................................................................Page 37 Electric Resolution 2012-34 ................................................................................................................................Page 37 Sewer Resolution 2013-09 ..................................................................................................................................Page 37 Storm Drain Resolution 2013-28 ........................................................................................................................Page 37 Transportation Resolution 2013-27 .....................................................................................................................Page 37 Water Resolution 2013-08 ..................................................................................................................................Page 37 SECTION 12 - Research Fee Research Fee .......................................................................................................................................................Page 37 SECTION 13 - Building Valuation Data i Building Safety Division-Building Valuation Data-February 2013 ...............................................................Page 38 SECTION 14 - Attachments Community Development - Excavation Grading Fees - Exhibit A - Resolution 2006-19 ..................................Page 39 page 6 miscellaneous fees 8 charges Miscellaneous Fees and Charges rim Miscellaneous fees 8 charges page 7 Section 1-Administration Administration Services/Finance Miscellaneous Fees and Charges Administrative Billing Charge (up to 10%) Per Billing Business License Fees Initial Business License Application Fee Licensee shall pay a prorated fee of $10 for each month, $120.00 for first 2 employees* or portion of a month, remaining in the fiscal year from +$5.00 for each additional the date of the application with a minimum fee of $25.00 employee Temporary Business License Application Fee $25.00 Renewal Application Fee $75.00 for first 2 employees* +$10.00 for each additional employee Rental Property Fees Same as above for activity including six or more properties. Late Application Fee $25.00 Late Renewal Fee (paid 30 days after the due date) 10% with a minimum of $25.00 *Pursuant to AMC 6.04.020.E an employee is an individual who performs service for another individual or organization. The number of employees reported shall be the number of employees as of the date the new ap- plication or renewal will become effective if approved. It does not matter whether an individual is a full, part- time, or temporary employee for business license purposes. page 8 miscellaneous tees and charges Section 1-Administration Utility Billing Miscellaneous Fees and Charges Administrative Fees: Current Proposed Notification of Pending Collection $10.00 Returned Check Charge $35.00 Reconnection Charge: During Business Hours $25.00 After Hours or Holidays $100.00 Service Connection: Normal working hours $10.00 Other Hours or Holidays $100.00 Parking Fees Parking Structure Fees: 6:00 a.m. - 6:00 p.m. (or segment) $1.00 6:00 p.m. - 2:00 a.m. (per hour) $1.00 6:00 a.m. - 2:00 a.m. (maximum) $3.00 Parking pen-nit (where applicable in City structure or lot) 6:00 a.m. - 6:00 p.m. Monday - Saturday (unless otherwise posted) $20.00 Parking Ticket Surcharge (citywide) $4.00 Downtown Parking Area Fees: Short Term (<30 minutes) unloading from "marked" No charge business vehicle with flashers Daily parking permit (Orange)- 1 st day or fraction of day $5.00/day $10.00/day Additional days (limited to 5 days; no charge on Sunday or $1.00/day $2.00/day federal holidays) • Limit of two per business address at a time • Applicable permits/licenses must be current • Each permit is good for one parking space • Not applicable to handicapped or short term spaces equal to or less than 15 minutes, green loading zones, fire or other restricted areas. miscellaneous fees and charges page 9 Section 2-City Recorder City Recorder Miscellaneous Fees & Charges Copy Fees: Black and White Copies Letter/Legal Single-Sided $ .20 each Black and White Copies Letter/Legal Double-Sided $ .40 each Black and White Copies Tabloid Single-Sided $ .40 each Black and White Copies Tabloid Double-Sided $ .80 each Color Copies Letter Legal Single-Sided $1.50 each Color Copies Tabloid Single-Sided $3.00 each Audio Tapes: CD/DVD/Cassette $5.00 each Liquor Licenses: Temporary Liquor License (processing fee) $10.00 Liquor License (new processing fee) $100.00 Liquor License (change of ownership processing fee) $75.00 Annual Renewal Liquor License $35.00 Taxicab Licenses: New Certification application (one-time processing fee) $250.00 Annual Renewal of Certificate $200.00 (per vehicle) Lien Searches: (fees set by Ordinance 2385 in 1986) Routine requests $20.00 Rush/Fax Requests $30.00 Elections: (amount set by Resolution #2009-05) Required deposit for Citizens Initiative $500.00 Street/Alley Vacations: (filing fee set by Resolution 1994-24) Required deposit of filing fee $500.00 Ambulance: Annual renewal fee $300.00 Annual ambulance fee (each vehicle) $100.00 Annexation: Processing fee for County Department of Assessment $300.00 Research Fee: Refer to Section 12 on page 37 page 10 miscellaneous fees and charges Section 3-Community Development Planning/Community Development Miscellaneous Fees and Charges Current Proposed Pre-Application Conference: $130.00 $131.00 Administration Actions: Final Plat Review: Partitions* $130.00+$10/lot $131.00+SIO/lot Subdivisions* $330.00+$28/lot $335.00+$28/lot New Sign Permit $130.00+$2.50/sq ft $131.00+$2.50/sq ft Replacement Sign Permit $28.00+$2.50/sq ft Home Occupation Permits $28.00 Zoning permit (fence, accessory structure, etc.) $28.00 Land Use Approval Extension Request $330.00 $335.00 Lot Line Adjustments $330.00 $335.00 Any other Administrative Action $330.00 $335.00 Type I Reviews: Tree Removal Permit (not associated with another action) $28.00 Solar Setback Variance $998.00 $1,012.00 Amendments to Conditions $998.00 S1,012.00 Physical & Environmental Constraints Permit $998.00 $1,012.00 Conditional Use Permit - Accessory Residential Unit $649.00 $658.00 Conditional Use Permit (Type I only) $998.00 51,012.00 Variance (Type I only) $998.00 $1,012.00 Residential Site Review $998.00+$66/unit 51,012.00+S67/unit Final Plan Performance Standards $998.00+$66/unit 51,012.00+S67/unit Land Partitions $998.00+$66/unit $1,012.00+S67/unit Commercial Site Review $998.00+.5% of $1,012.00+,5% of project value** project value** Any other Type I Review $998.00 $1,012.00 Independent Review of Wireless Communication Facilities***$5000.00 Type II Reviews: Conditional Use Permit (Type II only) $2,002.00 $2,032.00 Variance (Type II only) $2,002.00 52,032.00 Outline Plan or Preliminary Plat for Subdivisions $2,002.00+$134/lot $2,032.00+$136/lot Final Plan with Outline $2,666.00+$134/lot $2,705.00+5136/lot Commercial Site Review $2,002.00+.5% (.005) 52,032.00+.5%(.005) of project value** of project value** Any other Type 11 Review $2,002.00 $2,032.00 Independent Review of Wireless Communication Facilities*** $5000.00 *(Does not include Public 111orks review fee, See pg 27) **Project value includes the estimated valuation of all structures (per State of Oregon Building Code), as well as all related project site improvements, such as grading, paving, landscaping, bioswales, etc. ***The initial deposit required with an application for a new wireless communication facility that is not collocated is $5,000, and shall be used by the City for the costs of expert review of the application. If any time during the planning ap- plication process the account balance is less than $1,000, the Applicant shall upon notification by the City replenish the account so the balance is at least $5,000. The maximum total consultant fees to be charged to the Applicant shall be $10,000, and any unused portion of fee will be refunded. miscellaneous fees and charges page 11 Section 3-Community Development Type III Reviews: Current Proposed Zone/Comprehensive Plan Map Change $2,666.00 $2,705.00 Comprehensive Plan Change $2,666.00 $2,705.00 Annexation $4,010.00 $4,070.00 Urban Growth Boundary Amendment $4,010.00 $4,070.00 Any other Type III Review $3,339.00 $3,389.00 Legislative Amendments: Comprehensive Plan Map/Large Zoning Map Amendment $4,680.00 54,750.00 Land Use Ordinance Amendment $4,680.00 $4,750.00 Comprehensive Plan Amendment $4,680.00 $4,750.00 City Sponsored Legislation (City Council Directive) $0.00 Appeals: Appeal for initial Public Hearing $150.00 (Building Appeals BoardlDemolition Review Board/Planning Commission) Appeal for Final Decision of City $325.00 (Planning Commission or City Council) Solar Access: Solar Access Permit (not a Solar Variance) $50.00+$10.00 per lot affected Community Development Fee: This fee is charged concurrently with Building Permit . 1.1% (.011) of Fees at the time of building permit application for all new construction building permits requiring a plan review. per building code definition of valuation Community Development Copy Fees Copy Fees: Black and White Copies Letter/Legal Single-Sided $ .20 each Black and White Copies Letter/Legal Double-Sided $ .40 each Black and White Copies Tabloid Single-Sided $ .40 each Black and White Copies Tabloid Double-Sided $ .80 each Color Copies Letter/Legal Single-Sided $1.50 each Color Copies Tabloid Single-Sided $3.00 each Prepared Documents: Site Design & Use Standards $5.00 Street Tree Guide $5.00 Transportation Element $5.00 Downtown Plans (2001, 1998) $5.00 Street Standards Guide $5.00 Comprehensive Plan/Land Use Code $40.00 Research Fee: Refer to Section 12 on page 37 page 12 miscellaneous fees and charges Section 3-Community Development Building Division Permit Fees for Commercial and Residential In accordance with OAR 918-050-0030, the applicant for a building permit shall provide an estimate of con- struction costs at the time of application. Permit valuations shall include value of all work, including mate- rials and labor, for which the permit is issued. This estimate shall also include the cost of electrical, gas, me- chanical, plumbing, and permanent equipment and systems. The City will also prepare an estimate of the building valuation based on the current ICC Valuation table that is published and updated annually. The building permit will.be based on the highest of these two estimates. Building Permit Fees: Total Value of Work Performed: $1.00 to $500.00 $10.00 $501.00 to $2,000.00 $10.00 for the first $500.00 plus $1.50 for each additional $100.00 or fraction thereof, to and including $2,000.00 $2,001.00 to $25,000.00 $32.50 for the first $2000.00 plus $6.00 for each additional $1000.00 or fraction thereof, to and including $25,000.00 J $25,001.00 to $50,000.00 $170.50 for the first $25,000.00 plus $4.50 for each additional $1,000.00 or fraction thereof, to and including $50,000.00 $50,001.00 to $100,000.00 $283.00 for the first $50,000.00 plus $3.00 for each additional $1,000.00 or fraction thereof, to and including $100,000.00 $100,001.00 and up $433.00 for the first $100,000.00 plus $2.50 for each additional $1,000.00 or fraction thereof Plan Review Fee for Commercial and Residential: Plan Review Fee A plan review fee equal to 65% of the structural permit fee shall be due at application Additional Plan Review Fee $65.00 per hour Deferred Submittal Fee 65% of structural permit fee of deferred submittal valuation with a $50.00 minimum fee Miscellaneous Fees for Commercial: Commercial Fire Sprinkler/Fire Suppression/ Total value of work performed (structural permit Fire Alarm fee) Commercial Fire Sprinkler/Fire Suppression/ 65% of structural permit fee Fire Alarm Plan Review Note: See appendix for methodology for calculation of valuation for all permit fees utilizing valuation/ value of work miscellaneous fees and charges page 13 Section 3-Community Development Inspection Fees for Commercial and Residential: Inspections for which no building permit applies $65.00 per hour; (minimum 1 hour) per inspector Re-inspection Fee $50.00 Inspections outside normal business hours (minimum 1 hr) $130.00 per hour; perinspector Chanee of Occupancv Fees: Special Inspection: Single Building $65.00 per hour; 1 hour minimum Multiple Buildings or Tenant Spaces in a building or on a single lot $65.00 per building, per inspector, per hour; 1 hour Minimum Special Inspection Report 565.00 per hour Re-issued Certificate of Occupancy No Charge Residential Plumbing Permit Fees New Residential: Cost Each 1 bathroom/kitchen (includes: first 100 feet of water/sewer lines; hose bibs; ice maker; under floor low-point drains; and rain-drain packages) $285.00 2 bathrooms/1 kitchen $345.00 3 bathrooms/1 kitchen- $405.00 Each additional bathroom (over 3) $45.00 Each additional kitchen (over 1) $45.00 Remodel / Alterations: Remodel / Alterations (minimum fee) $40.00 Each fixture, appurtenance, and first 100 ft of piping $15.00 Miscellaneous Residential: Minimum Fee $40.00 Piping or private storm drainage systems exceeding the first 100 feet $22.00 Backflow Assembly $15.00 Residential Fire Sprinkler (include plan review): $2.44 x total square footage of structure = Sprinkler Valuation (use Building Permit Fees Valuation Table on page 13 for fee calculation) Manufactured Dwelling or Pre-Fab: Connections to building sewer and water supply $50.00 RV and Manufactured Dwelling Parks: Base fee (including the first 10 or fewer spaces) $150.00 Each additional 10 spaces $100.00 page 14 miscellaneous fees and charges Section 3-Community Development Commercial Plumbing Permit Fees Commercial, Industrial, and Dwellings other than one - or two-family: Minimum fee $40.00 Each fixture $15.00 Piping (based on number of feet) $0.75/11 Miscellaneous: Minimum fee $40.00 Specialty fixtures $15.00 Re-inspection (no. of hrs. x fee per hour) $65.00 Special requested inspections (no. of hrs x fee per hour) $65.00 Medical gas piping: Minimum fee $50.00 Valuation $500 to $2,000 $50.00 + $5 per $100 of valuation Valuation $2,001 to $25,000 $125.00 + $18 per $100 of valuation Valuation $25,001 to $50,000 $540.00 + $14 per $100 of valuation Valuation $50,001 to $100,000 $890.00 + $9 per $100 of valuation Valuation greater than $100,000 $1,340.00 + $8 per $100 of valuation Residential Mechanical Permit Fees Mechanical Permit Minimum Fee: $50.00 Furnace/Burner including ducts & vents: Up to I00k BTU/hr. $12.00 Over 100k BTU/hr. $15.00 Heaters/StovesNents: Unit Heater $15.00 Wood/pellet/gas stove/flue $15.00 Repair/alter/add to heating appliance or refrigeration $12.00 unit or cooling system/absorption system Evaporated cooler $15.00 Vent fan with one duct/appliance vent $7.50 Hood with exhaust and duct $10.00 Floor furnace including vent $15.00 Gas Piping: One to four outlets $6.00 Additional outlets (each) $0.75 Air-handling Units, including Ducts: Up to 10,000 CFM $10.00 Over 10,000 CFM $15.00 miscellaneous fees and charges page 15 Section 3-Community Development Compressor/Absorption System/Heat Pump: Up to 3 hp/100K BTU $15.00 Up to 15 hp/500K BTU $25.00 Up to 30 hp/1,000 BTU $50.00 Up to 50 hp/1,750 BTU $60.00 Over 50 hp/1,750 BTU $75.00 Incinerator: Domestic incinerator $25.00 Commercial Mechanical Permit Fees Minimum Fee $50.00 Total valuation of mechanical system and installation costs 0.5% of valuation Miscellaneous Fees: Re-inspection $50.00 Specially requested inspection (per hour) $65.00 Regulated equipment (un-classed) $50.00 Electrical Permit Fees Residential per unit, service included: Cost Each 1,000 sq. ft. or less $106.00 Each additional 500 sq. ft. or portion thereof $19.00 Limited energy $25.00 Each manufactured home or modular dwelling service or feeder $50.00 Multi-family residential $45.00 Residential and Commercial-Services or Feeders: installation, alteration, relocation: 200 amps or less $63.00 201 to 400 amps $75.00 401 to 600 amps $125.00 601 to 1,000 amps $163.00 Over 1,000 amps or volts $375.00 Reconnect Only $50.00 Temporary Services or Feeders: 200 amps or less $50.00 201 to 400 amps $69.00 401 to 600 $100.00 Over 600 amps or 1,000 volts, see services or feeders section above Branch Circuits: new, alteration, extension per panel: Branch circuits with purchase of a service or feeder $3.00 Branch circuits without purchase of a service or feeder: First branch circuit $43.00 Each additional branch circuit $3.00 page 16 miscellaneous fees and charges Section 3-Community Development Miscellaneous Fees: service or feeder not included: Each pump or irrigation circle $50.00 Each sign or outline lighting $50.00 Signal circuit or a limited energy panel, alteration or extension $50.00 Specially requested inspection (per hour) $65.00 Each additional inspection over the allowable $50.00 Residential Restricted Energy Electrical Permit Fees Fee for all systems*: $25.00 Audio and stereo systems Burglar alarm system Doorbell Garage-door opener Heating, ventilation, & air-conditioning systems Landscape lighting & Sprinkler controls Landscape irrigation controls Outdoor landscape lighting Vacuum Systems Each additional inspection $25.00 *For new construction, this permit fee covers all systems listed or can be sold separately. Renewable Energy Systems: 5 KVA or less $79.00 5.01 KVA to 15 KVA $94.00 15.01 KVA to 25 KVA $156.00 Wind generation systems in excess of 25 KVA: 25.01 KVA to 50 KVA $204.00 50.10 KVA to 100 KVA $469.00 For wind generations systems that exceed 100 KVA the permit fee shall be calculated in accordance with OAR 918-309-0040 Solar generation systems in excess of 25 KVA: $6.25/KVA The permit charge will not increase beyond the calculation for 100 KVA. Permits issued under this sub- section include three inspections. Additional inspections will be billed at an hourly rate. Building Permit Reinstatement Fee A building permit expires after a period of 180 days from the date of issue with no inspection activity. To reactivate an expired permit, a fee.of $50.00 per construction discipline is required (Building, Plumb- ing, Mechanical, Electrical). State of Oregon Surcharge - ORS 455.210(4) State of Oregon permit surcharge is 12% of structural, plumbing, mechanical and electrical components of the overall building permit. miscellaneous fees and charges page 17 Section 3-Community Development Excavation/Grading Fees See attachment 1. Exhibit A, Resolution 2006-19 (page 40) Building Permit Refund Policy The City Ashland Community Development Department offers partial refunds for building permits that ,have been issued, have had no inspections performed and have not yet expired (six months from issue date). Refunds for permits that have expired are limited to any Systems Development Charges (SDC's) that were part of the permit fees. The following fees are not refundable: • Building Plan Check Fee • Fire Protection Review Fee • 50% of Community Development Fee (maximum equal to Building Plan Check Fee) • 50% of Engineering Development Fee (maximum equal to Building Plan Check Fee) The remainder of the permit fees are refundable. A $50 administrative fee will be subtracted from the eligible refund amount for costs associated with the refund process. Refund amounts can be placed on account for future use and no administrative fees are charged. How to request a refund Submit the following documents to the Community Development Department at 51 Winburn Way: • Approved set of plans (stamped) • Job Inspection card • Letter of refund request signed by applicant/owner with mailing address for refund check The refund will be processed within 30 days of the date of the request letter. page 18 miscellaneous fees and charges Section 4-Electric Electric Miscellaneous Fees and Charges Temporary Service Drop: Current Proposed Single Phase Underground temp 300 amps or less $245.00 5247.00 Single Phase Overhead temp 300 amps or less $291.00 5295.00 Three Phase Actual Cost Meter Charges: Meter Tests for accuracy: Once in twelve months No Charge Two or more times in twelve months $172.00 S176.00, Meter repairs/replacement (Damaged by Customer) Actual Cost Non Radio Frequency Meter Charges: Conversion from Radio Frequency (RF) to Non RF meter No Charge Monthly Fee to manually read Non RF meter No Charge Non Sufficient Funds Check Fee: $35.00 Reconnection Charge: Normal working hours $25.00 Other hours or Holidays $100.00 Service Calls: Once in twelve months No Charge Two or more times in twelve months $199.00 S203.00 Other hours or Holidays $297.00 5303.00 Service Connection for Applicant: Normal working hours $10.00 Other hours or Holidays $100.00 Deenergize Service NA 5254.00 Scheduled work after hours: Actual Cost Unauthorized Connection: $215.00 miscellaneous fees and charges page 19 Section 4- Electric Line Extension Charges New Single-Family Residential Service: Current Proposed Overhead service in existing developed areas from distribution line to and including meter $568.00 Overhead service upgrade or increased service for 300 amps or less $568.00 Replacement of service from overhead to underground, 300 amps or less. Customer provides all trenching, conduit, backfilling and.compaction as directed by the City. $1,161.00 Underground residential service of 300 amps or less. Customer provides conduit, trenching, back fill, compaction as directed by the City. $695.00 *Underground Distribution Installation Charges: Per Lot less house service and engineering fees. $1,158.00 51,186.00 *Subdivisions of 0 to 20 engineering fee per lot $167.00 5171.00 * Subdivisions of 21+ engineering fee per lot $253.00 $259.00 *Three Phase subdivision as required by city per lot $253.00 5259.00 Any overhead/underground service over 300 amps Actual Cost Commercial, Institutional and Industrial Service Actual Cost **Blower Door Leak Test (gas heat customers only) $75.00 **Duct Leak Test (gas heat customers only) $125.00 * Methodology: Current ENR Rate - Old ENR Rate/Old ENR Rate = % Rate of Adjustment (9515.86-9289.65)/9289.65 = 2.44% Source: Engineering News Record Construction Cost Index (ENR) **Electric heat customers = no fee miscellaneous fees and charges page 20 Section 5-Fire Fire Miscellaneous Fees and Charges Copy Fees: Current Proposed Black and White Copy Letter/Legal Single Sided $ .20 each Black and White Copies Letter/Legal Double Sided $ .40 each Black and White Copies Tabloid Single Sided $ .40 each Black and White Copies Tabloid Double-Sided $ .80 each Color Copy Letter/Legal Single Sided $ 1.50 each Color Copy Tabloid $ 3.00 each Report Fees: Non patient Pre-hospital Care Reports $12.00 for 10 pages or less $15.00 over 10 pages Fire Incident Reports $12.00 for 10 pages or less $15.00 over 10 pages Photographs $12.00 per case request CD/DVD $19.00 per case request 1 Mailing Cost Actual Cost Research Fee: Refer to Section 12 on page 37 Fire Fees: Cost Recovery Equipment *Per Current Oregon State Fire Marshal Standardized Cost Schedule Personnel *$50.00 per person per hour - 2 Hour minimum per person Hazardous Materials Cleanup Actual Cost Emergency Medical Services: FireMed Annual Household Fee-Annual Renewal $55.00 per year FireMed Plus Annual Household Fee-Annual Renewal $95.00 per year Emergency Medical Service Fee -Aid Call $302.40 per patient 5305.42 Ambulance Base Rate (per current rate schedule) $1,029.54 per patient SI,039.84 Ambulance Mileage Rate (per current rate schedule) $14.00 per mile Ambulance Base rate for sit-up patients $514.77 per patient 5519.92 Ambulance Waiting Time $25.00 per 1/2 hour Ambulance Stand By (2 hour minimum) $100.00 per hour On scene Coordinator $50.00 per hour Extra attendant $45.00 each Ambulance Service Area 1112013 rate schedule Base rates hill be adjusted each calendar year by the most current rate schedule posted by the Center for Medicare/ Medicaid Semites (CMS) that sets the "Ambulance Inflation Factor" . Other rates and mileage charges hill be updated as approved by the County Commissioners. miscellaneous fees and charges page 21 Section 5-Fire Fire and Life Safety: Plan Checks: Any Building Permit - 24% of the Building Division Structural Permit Fee and Plan Check Fee New Subdivision or Land Partition - 24% of the Engineering Subdivision Plat Check Fee Other: Fire Hydrant Flow Tests required for new installations will be assessed at $100 per flow test. Any review required by the Oregon Fire Code, and which does not involve a building permit, will be charged at the rate of $50.00 per hour. A minimum charge of $25.00 will be assessed to these reviews. When the Building Division assesses additional fees for plan reviews and/or field inspections, any fire department staff time associated with that activity will be included in their fees at their specified rate. First Aid/CPR Classes: Current Proposed Basic Life Support (BLS) for Healthcare Providers CPR Class $55.00/person Heart Saver CPR & First Aid Class $55.00/person Heart Saver CPR Class $35.00/person Family and Friends CPR Class $5.00/person Inspection Fees: Initial Inspection (Re-inspection Included) Occupancy Type "B" 0-1,000 sf. $34.00 535.00 1,001-3000 sf. $51.00 552.00 Occupancy Type "A, E, F, H,1, M, S" 0-3,000 sf. + B 1,001-3,000 $51.00 $52.00 Occupancy Type "A,B, E, F, H,1, M, S" 3,001-10,000 sf. $100.00 $102.00 10,001-20,000 sf. $150.00 5152.00 Over 20,000 sf. $200.00 $203.00 Occupancy Type "R, SR" 3 to 10 Units $51.00 $52.00 11 to 40 Units $100.00 5102.00 41 to 70 Units $150.00 5153.00 Over 70 Units $200.00 5203.00 Non-Compliance after 2nd Inspection Inspection Fee + $53.00 554.00 Non-Compliance after 3rd Inspection Inspection Fee + $105.00 $107.00 Non-Compliance after 4 s Inspection / Subsequent Inspections Inspection Fee + $156.00 5158.00 Weed Abatement: Staff time Refer to Section 12 on page 37 Mailing Cost Actual Cost Weed Abatement by Contractor Actual Cost page 22 miscellaneous fees and charges Section 6-Information Technology Information Technology Miscellaneous Fees and Charges* Installation Fees: Basic installation-Pre-wired CATV outlets only $ 20.00 (Additional charges for parts and supplies apply) Add Trap ("filter") $10.00 New customer cable modem activation $10.00 Cable Modem $50.00 Refurbished 90 -day replacement warranty Additional materials $10.00 Over-and-beyond regular installation' including multi outlets, outlet plates, additional wiring, replacement of customer damaged outlets. Wi Max standard installation S200.00 Disconnect Fees: Disconnect $50.00 Remove Trap ("Filter") $10.00 Truck Roll: $35.00 Field Technician Hourly Rate: Non-standard work such as advancing troubleshooting, $55.00 non-standard outlets, fishing wire inside walls, etc. Consulting and Technical Support Hourly Rate: For support issues not related to AFN infrastructure, performance, $85.00 and reliability. Minimum charge on hour. Non-City Employee Staff Screening: Charge for each vendor employee submitted for authorization to Access AFN and City Service Center facilities. $150.00 Fiber Service Installation: Minimum one-time fee fe; overhead served eenneetion . indfli ideal n.._:____ 1000* feet of existing use, hend AFN fibut rictnui k ~i *11 be chniged by quole. Overhead served connections. Individual Business Case (IBC) & quote Underground served connections IBC & quote Ethernefffa„ansit-Fees- Transit @ 100 Mbps IBC & quote miscellaneous fees and charges page 23 Section 6-Information Technology Static IP Address: $5.00/mo each Maximum of 5 Static Internet Protocol (IP) addresses* • Minimum level of service for static IP and Quality of Service (QoS) is "CHOICE" or higher service tier. QoS Fee: $3.50/mo VOIP (phone) enhancement available with AFN Choice or higher service level through AFN certified Modems. Business Augmented Upload Package (additional 5 Mbps): $15.00/mo Available exclusively on AFN Directwith the following requirements- CUFFeRtCotyof,ksh'nndBusonessEceise =-Business Augmented Uplend Peeliage available eulY ithi Small OfficelHonre Office (SOHO) or Small Business Must have current City of Ashland Business License *Additional fee added to base AFN Direct retail rates on specific packages. Maximum SOHO upload speed with augmented upload service at up to 9 Mbps Small Office/Home Office Business Augmented Upload Package @$80/month Maximum Small Business upload speed with augmented upload service at up to 10 Mbps Small Business Augmented Upload Package @ $100.00/month Non-return of customer premise equipment (CPE) devices: $300.00 CPE's must be returned on disconnect date of AFN Any n hm and/or services. Cable TV (CATV) Seasonal Reconnects & Disconnects: $10.00/visit Non-pay disconnects & reconnects Service change Install HBO filter CAN House Amp Fee: $35.00/each Utility Billing Lobby Signage Fee: $100.00/mo. Cable Modem Rental $5.00/mo. Non Return of Rented Modem at Closing of Account $50.00each Cable Modem Purchase $50.00/each * Resolution 2010-28 (Section 2, page 38) grants Information Technology management ability to set promotional rates. page 24 miscellaneous fees and charges Section 7-Municipal Court Transit @ 1000 Mbps Municipal Court Miscellaneous Fees and Chifdds quote Court Administration Fees: Crime Violation Appeal Transcript Fee $35.00 $10.00 City Attorney Deferred Sentence/Diversion $60.00 540:90 N/A Civil Compromise Costs $75.00 N/A Compliance Inspection Fee N/A $25.00 Court Appointed Counsel Fees and Charges Billed ranging from $250 - $600 Default Judgment N/A $15.00.. Discovery Fees Imposed in Accordance with Miscellaneous Fee & police Department Resolutions See Police and City Recorder Fees Diversion by Municipal Court: Classes I-IV, A-D Unclassified and Specific Fine Violations N/A Presumptive Fine Extend/Amend City Attorney Deferred Sentence/Diversion $45.00 S45.00 N/A Failure to appear for Bench Trial/Show Cause hearing $90.00 $70.00 Failure to Appear for Jury Trial $150.00 N/A Forfeiture of Security $25.00 $25.00 Mediation of Violation (Municipal Court Mediation) N/A $65.00 Non Sufficient Funds Check $25.00 $25.00 Court Costs $35.00 $45.00 Expunction $240.00 $240.00 Show cause Admission of Allegation $25.00 SiO.0 N/A Bench Probation Fee $100.00 N/A Bank Costs Warrant $25.00 10% at monthly Withholding Other Domestic Partnership Registration $25.00 All other fees and charges inconsistent with the fees and charges set forth herein are repealed. Nothing in the Resolution is intended to detract from the inherent power of the Court pursuant to general law to im- pose fees and charges established in state law of city ordinance in addition to the fees and charges speci- fied herein. master miscellaneous fees and charges page 25 Section 8-Police Police Miscellaneous Fees and Charges Current Proposed Police Reports: $12.00 for reports 10 pages or less $15.00 for reports over 10 pages Research Fee: Refer to Section 12 on page 37 Visa Letters: $19.00 Fingerprints Cards: $20.00 first card 535.00 first card $10.00 each additional card Photographs (CD): $19.00 Audio Tapes/ ICOP Videos: $19.00 Non Sufficient Funds Check Fee: $35.00 Impoundrrow Fee: $105.00 Cash only Taxi Operator License: $20.00 renewal $42.00 new page 26 miscellaneous fees and charges Section 9-Public Works Public Works Miscellaneous Fees and Charges Copy Fees: Current Proposed Black and White Copies Letter/Legal Single-Sided $0.20 each Black and White Copies Letter/Legal Double-Sided $0.40 each Black and White Copies Tabloid Single-Sided $0.40 each Black and White Copies Tabloid Double-Sided $0.80 each Color Copies Letter/Legal Single-Sided $1.50 each Color Copies Tabloid Single-Sided $3.00 each Existing maps printed in color on HPI055CM plotter (24Ib bond Paper) Arch C 18 x 24 3.00 sq. ft. $18.00 Arch D 24 x 36 6.00 sq. ft. $36.00 Arch E 36 x 48 12.00 sq. ft. $72.00. Existing maps or copies of existing maps copied in B&W on Xerox 3030 large format copier (201b bond paper) Arch C 18 x 24 $8.00 S2.00 Arch D 24 x 36 $12.00 S3.00 Arch E 36x48 $16.00 $4.00 Note: Maps printed on materials other than the specified bond are double the standard print fee Plat & Plan Checks: Current Proposed Subdivision Plats (does not include planning review fee See page 11) $730.00 plus $741.00 plus $110.00 per lot '$112.00 per lot Condominium Plats $730.00 plus $741.00 plus $110.00 per lot 5112.00 per lot Partition Plats (does not include 24% Fire Department Review Fee) $391.00 5397.00 Subdivision Improvement Plat Check 5% Engineer Fee (5% of the public improvement cost) Engineering Development Fee (this fee is charged concurrently with Building Permit Fees at the time of building permit applications. Applies To all new residential dwelling units and commercial 0.75% of valuation Developments. Remodels, additions and accessory Buildings are not assessed this fee.) miscellaneous fees and charges page 27 Section 9-Public Works Public Works/Engineering Inspections, Permits, etc: Current Proposed Subdivision Construction Inspection/ 5% Engineer Fee (5% of Public Works Improvement Inspection the public improvement cost) Street or Alley Excavation Permit $197.00 + per ft. cost S200.00+ based on pavement age Encroachment Permit $197.00 5200.00 . Miscellaneous Construction Permit $64.00 565.00 (Construction of curb, sidewalk, driveway Apron, etc.) Dust Suppression Permit $64.00 S65.00 Driveway Painting Permit $16.00 (includes a can of paint) Right-of Way Closure-Street $197.00 5200.00 Right-of Way Closure-Sidewalk(>72 hrs) $64.00 565.00 Right-of Way Closure-Sidewalk(<72 hrs) $16.00 Right-of Way Closure-Parking Space(>72 hrs) $64.00 $65.00 Right-of Way Closure-Parking Space(<72 hrs) $16.00 Block Party $16.00 Sidewalk Dining-Annual Renewal $4.00/sq. ft. 54.50/sq. ft. (minimum 50 sq. ft) 1st increase in 4 yrs Functional Item-Annual Renewal $64.00 565.00 Special Event Permits (per Resolution 2012-08): Base Special Event Permit Fee (plus applicable $130.00 5132.00 Fees below) Events that require city staff overtime 60% of city staff O/T 60% of city staff Rush Fee (less than 90 days advance notice) $250.00 page 28 miscellaneous fees and charges Section 9-Public Works Public Works/Engineering Inspections. Permits, etc. (cont) Current Proposed Loaned Functional Item, Pennant Application Fee $133.00 5135.00 Publication Box Per Publication-Annual Renewal $27.00 Special vehicle Permit-Initial Fee $272.00 $276.00 Special vehicle Permit-Annual Renewal $109.00 $111.00 Penalty for No Permit 150% of permit cost Street or Alley Vacation $659.00 5669.00 An administrative fee of 25% will be assessed on all permit refunds. Refunds will not be issued if requested later than one-year following the application date. GIS Data & Mapping Services: GIS Hourly Rate $80.00 S81.00 Information on Disk $40.00/utility per 541.00/utility per Quarter section Quarter section Planning Pre-Application Maps $22.00 Plotting Fee $6.00/square foot New Address Assignment $37.00/address # 538.00/address # Street Name Approval Fee $105.00 5107.00 miscellaneous fees and charges page 29 Section 9-Public Works Sanitary Sewer Connection Fees: Current Proposed Sanitary sewer mainline video inspection $317.00 minimum $325.00 minimum (cost based on time and materials) Water Connection Fees: The installation of all new water services and large taps regardless of size will be charged on a time and materials basis. First Utility Locate at an address No Charge Additional Locates at same address $69.00 $71.00 Water meter re-lead Once in 12 months No Charge Each additional re-read in 12 months $31.00 $32.00 Water Meter Field Test $49.00 $56.00 Water Meter Bench Test 3/4" or 1" Water Meter $107.00 $110.00 1 1/2" or 2" Water Meter $201.00 $206.00 Larger Meters Actual Cost page 30 miscellaneous fees and charges Section 9-Public Works Water Connection Fees Continued Current Proposed Water pressure check once in 12 month No Charge Each additional pressure check in 12 months $39.00 $40.00 Water Chlorination Test -Subdivision retest upon failure (cost based on time and materials) $636.00 5653.00 Water Pressure Test -Subdivision retest up failure (cost based on time and materials) $381.00 S391.00 Cemetery Fees: Sales of grave spaces or burial plots: (fees split, 40% to the cemetery fund & 60% to the cemetery trust fund) Grave Space -Lawn and Monument Sections $506.00 5514.00 Grave Space -Baby Land $160:00 $162.00 Grave Space -Niches (bronze) $428.00 $434.00 Grave Space -Urn garden $160.00 5162.00 Grave space -Crypt $1,071.00 51,087.00 Sales of liners and markers: (fees split, 40% to the cemetery fund & 60% to the cemetery trust fund) Concrete cemetery box, including setting $428.00 5434.00 Concrete liners Cost plus 10% Final inscriptions $125.00 min charge 5158.00 min charge Niche Vases* $160.00 5162.00 Grave markers Wholesale cost X 2.5 not to exceed $700.00 Grave marker setting, concrete base $160.00 $162.00 Monticello burial vault (sealed concrete) $1,178.00 51,196.00 *Previously not in book. miscellaneous fees and charges page 31 Section 9-Public Works Sexton Fees: Current Proposed Opening and closing graves, ground $428.00 $434.00 Opening and closing graves, double-deep $481.00 $488.00 Opening and closing graves, infant $160.00 5162.00 Opening and closing crypts $428.00 5434.00 Opening closed crypts $428.00 5434.00 Opening and closing niches $108.00 5110.00 Opening closed niche NA 5110.00 Inter cremains in grave spaces $160.00 S162.00 Scattering of cremains $108.00 5110.00 Disinterment $1,050.00/in advance 51,081.00/in advance Saturday, Sunday or Holiday burial $428.00 $434.00 Miscellaneous Fees: Grave Setup Rental $106.00/occurrence 5108.00/occurrence Tent Rental $53.00/day 554.00 Perpetual care lots, sold before 1927 $108.00 S110.00 Vases: Galvanized $43.00 544.00 *cemetery fees will be subject to a 1.5% finance charge per month if not paid within 60 days of use. All above services will be sold pre-need in installments, interest free, with a minimum payment of one-twelfth of the total sale. 2013 CPI and ENR Calculations: Methodology: Current CPI Rate - Old CPI Rate/Old CPI Rate = % Rate of Adjustment (232.773-229.292)/229.292= 1.5% (236.293-232.773)/232.773=1.5% Methodology: Current ENR Rate - Old ENR Rate/Old ENR Rate = % Rate of Adjustment (9455.98-9267.57)/9267.57= 2.00/6 (9701.96-9455.98)/9455.98=2.6% CPI used for: ENR used for: Plat & Plan Checks Sanitary Sewer Connection Fees Public Works/engineering Inspections, Permits, etc. Water Connection Fees GIS Data & Mapping Services Cemetery Fees page 32 miscellaneous fees and charges Section 10 - Parks and Recreation Jar& ASHLAN[D. PARKS- RlEC::RlEAYIC3N Section 10 Parks and Recreation Miscellaneous Fees and Charges miscellaneous fees and charges page 33 Section 10-Parks and Recreation Parks Miscellaneous Fees and Charges Current Proposed Wedding Packages: Lithia Park Sites $800.00/8 hrs. $400.00/4 hrs. Community Center $1,150.00 park site included Pioneer Hall $1,150.00 park site included Group Picnic Rentals: Cotton Memorial Area $75.00/4 hrs. Madrone Area $60.00/4 hrs. Top Southern Lawn $55.00/4 hrs. Hillside Picnic Area $55.00/4 hrs. Sycamore Grove $75.00/4 hrs. Brinkworth Area $60.00/4 hrs. Lawn below Upper Duck Pond $60.00/4 hrs. Butler Bandshell $220.00/8 hrs. Deposits: Picnic Areas $75.00 Lithia Park Weddings $75.00 Butler Bandshell $190.00 Buildings Security $300.00 for events (refundable) $150.00 for meetings (refundable) Special Event Fees: Special Event Application Fee (preriousryr ondrted) N/A 525.00 Street Closure Fee $75.00 Park Booth fee $25.00/per booth (max. 10) Alcohol Fee: $150.00 (non-refundable) General Building Reservations: The Grove Full Facility $41.50/hr. on weekdays $50.00/hr. on weekends The Grove Otte/Petterson $22.50/hr. on weekdays $25.00/hr. on weekends Hunter Park Senior Center $21.00/hr. on weekdays $33.00/hr. on weekends Long Term User Fee $18.001hr. (at least 6 days/yr) Oak Knoll Golf Course $21.00/hr. on weekdays $33.00/hr. on weekends Pioneer Hall/Community Center $21.00/hr. on weekdays $33.00/hr. on weekends Miscellaneous Equipment Fee $100.00 Field Usage: Tournaments $36.50/day each team Ball field Lights $31.00/hr S34.00/hr page 34 miscellaneous fees and charges Section 10-Parks and Recreation Calle Seating: Current Proposed Artisans $5.00/sq.foot S7.00/sq.foot Restaurant Seating $6.00/sq. foot Daniel Meyer Pool: Admission $2.00 Lap Swim $2.50 Water Aerobics $3.25 Swim Lessons S40542548 (adjusted in 2012) (age of child/length of lesson) Private Lessons $18.00 Open Swim punch card $30.00 Lap Swim punch card $40.00 Water Aerobics punch card $55.00 Season Pass $140.00 Youth Recreation Programs: 60/40 split with instructor and Parks Department Adult Recreation Programs: 60/40 split with instructor and Parks Department Ashland Rotary Centennial Ice Rink: Youth Admission $3.50 Adult Admission $4.00 Skate Rental $2.50 ffacke3 Admission S5.50 Adult Hockey Admission (preriouslr ontitted) NA 55.50 Youth Hockey Admission (preriouslP ondned) NA $5.00 Adult Hockey Punch Card (preriouslr omitted) NA 550.00 Youth Hockey Punch Card (preriouslr omitted) NA $45.00 Open Skate/Kids Only Punch Card (prerionstromitted) NA 530.00 Ice Skating Private Lesson (prerious!r on,itled) NA 510.00 per 30mins Helmets (preriouslr omitted) NA 58.00 Group Rental $5.00 Oak Knoll Golf Course Annual Passes: Annual Pass-Single $1,100.00 Annual Pass-Family $1,540.00 Daily Adult Fees (ages 18 to 54) 9 Holes: November-February $14.00 March-October $16.00 18 Holes: November-February $20.00 March-October $24.00 Daily Coupon Rate $10.00 miscellaneous fees and charges page 35 Section 10-Parks and Recreation Daily Senior Fees (ages 55 & up) Monday-Friday Only 9 Holes: November-February $12.00 March-October $14.00 18 Holes: November-February $18.00 March-October $22.00 Daily Junior Fees (ages 8 to 17) 9 Holes: Year-Round $5.00 18 Holes: Year-Round $10.00 Driving Range One token (35) balls $3.00 Cart Fees (per person) 9 _Holes: Year Round $10.00 Year Round Senior rate $8.00 18 Holes: Year Round $13.00 Community Garden Fees: IOx10 $29.00-$34.50 depending on location 10x20 $49.00-$57.50 depending on location 20x20 $75.00-$86.50 depending on location 4x12 $29.00 Refundable Deposit $20.00 Nature Center School Programs: $200.00/Class Nature Center Community Programs: 70/30 split with instructor and Parks Department Oak Knoll Golf Course Wedding Fees: November-February $1,500.00 - full day November-February $800.00 - half day March-October $750.00 - full day March-October $400.00 - half day Maps: City of Ashland Map $3.00 (or 2 maps for $5.00) Watershed Map $3.00 (or 2 maps for $5.00) page 36 miscellaneous fees and charges Section 11-Rates and Charges Set by Separate Resolutions Rates and Charges Set by Separate Resolutions Listed Below* . System Development Charges (SDCs) Parks and Recreation SDCs -Resolution 2000-29 Transportation SDCs -Resolution 1999-42 Sewer SDCs -Resolution 2006-27 Storm SDCs -Resolution 2002-15 Water SDCs -Resolution 2006-27 Utility Rates and Fees AFN Utility Fees -Resolution 2010-28 Electric Rates - Resolution 2013-34 Sewer Rates -Resolution 2013-12 Storm Drain Fees -Resolution 2013-13 Transportation Fees -Resolution 2013-14 Water Rates -Resolution 2013-11 SECTION 12 - Research Fee A. The City shall charge a research fee based on the hourly wage of the staff person doing the re search, and the fee shall be billed in fifteen minute increments. The hourly wage used to calcu- late the research fee shall not include the cost of benefits. The City will establish a fee in its an- nual fee resolution that is reasonably calculated to reimburse the City for the actual cost of mak- ing public records available, including locating the requested records, reviewing the records to delete exempt material, supervising a person's inspection of original documents to protect the integrity of the records, summarizing, compiling, or tailoring a record, either in organization of media, to meet the person's request. The City may charge for search time even if it fails to locate any records responsive to the requester even if the records located are subsequently determined to be exempt from disclosure. Copies of documents provided by a routine file search of 15-30 minutes or less will be charged at a copy rate established in the annual fee resolution. B. The City may include a fee established to reimburse for the costs of time spent by the city attorney in reviewing the public records, redacting materials from the public records into exempt and nonexempt records. The City fee may also include the cost of time spent by an attorney for the City in determining the application of the provisions of ORS 192.505. C. The City may not establish a fee greater than $25 unless the requester is provided with written notification of the estimated amount of the fee and the requester confirms in writing that he/she wants the City to proceed with making the records available. D. Prepayment shall be required if the amount of the request is greater than $25. If the actual charges are less than the prepayment, and overpayment shall be refunded. *All of the above resolutions can be found in full text on the City of Ashland's Website: http://0shlandor.us miscellaneous fees and charges page 37 Section 13 - Building Valuation Data Community Development Department -Building Safety Division Methodology for calculation of permit valuation Icc INTERNATIONAL 11 COUNCIL Building Valuation Data - February 2014 The International Code Council is pleased to provide the does not take into account any regional cost differences. As following Building Valuation Data (BVD) for its members. The such, the use of Regional Cost Modifiers is subject to the BVD will be. updated at six-month intervals, with the next authority having jurisdiction. update in August 2014. ICC strongly recommends that all Permit Fee Multiplier jurisdictions and other Interested parties actively evaluate and assess the impact of this BVD table before utilizing it in their Determine the Permit Fee Multiplier; curent code enforcement related activities. 1. Based on historical records, determine the total annual The BVD table provides the 'average' construction costs per construction value which has occurred within the square, foot, which can be used in determining permit fees for jurisdiction for the past year. a jurisdiction. Permit fee schedules are addressed in Section . 2 Determine the percentage of the building 109,2 of the 2012 International Building Code (IBC) whereas - department budget expected to be provided by building Section 109.3 addresses building permit valuations. The permit fees can be established by using the BVD table and a permit revenue. Permit Fee Multiplier, which is based on the total construction Bldg. Dept. Budget z value within the jurisdiction for the past year. The Square Fool Permit Fee Multiplier = Construction Cost table presents factors that reflect relative Total Annual Construction Value value of one construction class cation/occupancy group to Example another so that more expansive construction is assessed The building department operates on a $300,000 budget, and greater permit fees than less expensive construction. it expects to cover 75 percent of that from building permit fees. ICC has developed this data. to aid.jurisdictions in determining The total annual construction value which occurred within the permit fees. It is important to note that while this BVD table jurisdiction in the previous year is $30,000,000. does determine an estimated value of a building (i.e., Gross S300,000 x 75% Area z Square Foot Constriction Cost), this data is only Permit Fee Multiplier = - = 0.0075 intended to assist jurisdictions in determining their permit fees. $30,000,00.0 This data table is not intended to be used as an estimating guide because the data only reflects average costs and is not Permit Fee representative of specific construction. The permit fee is determined using the building gross area, the This degree of precision is sufficient for the intended purpose, Square Foot Construction Cost and the PermitFee Multiplier. which is to help establish permit fees so as to fund code PermitFee = Gross Area x Square Foot Construction Cost compliance activities, This BVD table provides jurisdictions x Permit Fee Multiplier with a simplified way to determine the estimated value of a Example building that does not rely on the permit applicant to determine the cost of construction. Therefore, the bidding process for a Type of Construction: IIB particular job and other associated factors do not affect the Area: 1st story= 8,000 sq. ft. value of a building for determining the permit fee. Whether a 2nd story = 8,000 sq. ft. specific project is bid at a cost above or below the computed Height 2 stories value of construction does not affect the permit fee because Permit Fee Multiplier = 0.0075 the cost of related code enforcement activities is not directly Use Group: B affected by the bid process and results. - - 1. Gross area: Building Valuation Business = 2 stories x 8,000 sq. ft..= 16,000 sq. ft. The following building valuation data represents average 2. Square Foot Construction Cost: valuations for most buildings. In conjunction with IBC Section B/IIB = $158.70/sq. ft. 109.3, this data is offered as an aid for the building official to determine If the permit valuation is underestimated. Again it 3. Permit Fee: should be noted that, when using this data, these ere Business = 16,000 sq. ft. x $158.70/sq. ft x 0.0075 'average' costs based on typical construction methods for -$19,044 each occupancy group and type of construction. The average costs include foundation work, structural and nonstructural building components, electrical, plumbing, mechanical and interior finish material. The data is a national average and page38 miscellaneous fees and charge Section 13 - Building Valuation Data Important Points For purposes of establishing the Permit Fee Multiplier, the The BVD is not intended to apply to alterations or repairs estimated total annual construction value for a given time to existing buildings. Because the scope of alterations or period (1 year) is the sum of each building's value (Gross repairs to an existing building varies so greatly, the Square Area x Square Foot Construction Cost) for that time period foot Construction Costs table does not reflect accurate (e.g., 1 year). values for that purpose. However, the Square Foot The Square Foot Construction Cost does not include the Construction Costs table can be used to determine the price of the land on which the building is built.. The Square cost of an addition that is basically a stand-alone building which happens to be attached to an existing building. In Foot Construction Cost takes into account everything from the case of such additions, the only alterations to the foundation work to the roof structure and coverings but existing building would involve the attachment of the does not include the price of the land. The cost of the land addition to the existing building and the openings between does not affect the cost of related code enforcement the addition and the existing building. activities and is not included in the Square Foot Construction Cost. Square Foot Construction Costs a 4 Group 2012 International Building Code IA IB IIA IIB IIIA Ills IV VA VB A-1 Assembly, theaters. with sla a 224.49 217.12 211.82 202.96 '190.83 185.33 196.14 174.43 167.83 A-1 Assembly, theaters. wilhoulstage 205.71 188.34 193.04 184.18 172.15 166.65 177.36 155.75 149.15 A-2 Assembly, ni htdubs 177.15 172.12 167.31 160.58 150.83 146.74 154.65 136.68 132.81 A-2 Assembly, reslaumnts, bars, banquet halls 176.15 171.12 .165.31 159.58 148.83 145.74 153.65 134.68 131.81 A-3 Assembly, churches 207.73 200.36 195.06 186.20 174.41 168.91 179.38 158.02 151.41 A-3 Assembly, general, wrri mni halls libraries museums 173.36 165.99 159.69 151.83 138.90 134.40 145.01 122.50 116.69 A4 Assembly, - arenas 204.71 197.34 191.04 183.18 170.15 165.65 176.36 153.75 148.15 B Business 179.29 172.71 166.96 158.70 144.63 13910 152.43 126.93 121.32 E Educational 192.11 185.49 180.05 171.90 160.09 151.62 165.97 139.90 135.35 F-1 Factory and industrial, moderate hazard 108.42 103.32 97.18 93.38 8324 79.62 8922 68.69 64.39 F-2 Factory and industrial, low hazard 107.42 102.32 97.18 92.38 8324 78.62 88.22 68.69 63.39 H-1 Hi Hazard, explosives 101.53 96.44 91.29 86.49 77.57 7295 82.34 63.02 N.P. H234 High Hazard 101.53 96.44 91.29 88.49 77.57 72.95 82.34 63.02 57.71 H5 HPM 17929 172.71 166.96 158.70 144.63 139.20 152.43 126.93 121.32 1-1 Institutional, w kwised environment 177.76 171.50 168.52 159.45 146.31 142.45 15913 131.29 126.72 1-2 lnstibdional. hospitals 30144 295.85 290.11 281.84 266.80 N.P. 275.58 249.09 N.P. 1-21ns6tAwal, nursing hams 209.38 20179 197.05 188.78 175.72 N.P. 182.52 Mot N.P. 1.3 Institutional. restrained 204.27 197.68 191.94 18187 171.10 164.68 177.41 153.40 145.80 14 Institutional, day care facilities 177.76 171.50 166.52 159.45 146.31 14245 159.13 131.29 126.72 M Merwntile 132.04 127.01 121.20 115.47. 105.47 102.39 109.54 91.33. 88.45 R-1 Residential, hotels 179.14 172.89 167.90 160.83 147.95 144.10 160.52 132.93 128.38 R-2 Residenfial multiple family 150.25 143.99 139.01 131.94 119.77 115.91 131.62 104.74 100.18 R-3 Residental, one. and twu-famil 141.80 137.90 134.46 131.00 125.88 122.71 128.29 117.71 110.29 R4 Residential, wrelassisted hying facilities 177.76 171.50 166.52 159.45 146.31 142.45 159.13 13129 126.72 S-1 Storage, moderate t=am 100.53 95.44 69.29 85.49 75.57 71.95 81.34 61.02 56.71 5-2 Stor4 e, bw hazard 99.53 94.44 8929 84.49 75.57 70.95 80.34 61.02 55.71 U lAili ,miscellaneous 75.59 71.22 66.76 83.37 56.99 5322 60.41 44.60 42.48 a. Private Garages use Utility, miscellaneous b. Unfinished basements (aa use group) = 515.00 per sq. R C. For shell only buildings deduct 20 percent - d. N.P. = M pemutted miscellaneous fees and charges page 39 Miscellaneous Fees and Charges Attachment 1. CITY OF Exhibit A ASHLAND GRADING FEES General. Fees shall be assessed In accordance with the provisions of this section. Plan Review Fees. When a plan or other data are required to be submitted, a plan review fee shall be paid at the time of submitting plans and specifications for review. Said plan review fee shall be as set forth In Table A. Separate plan review fees shall apply to retaining walls or major drainage . structures as required. For excavation and fill on the same site, the fee shall be based on the volume of excavation or fill, whichever is greater. Grading Permit. Fees. A fee for each grading permit shall be paid to the City of Ashland, Building DepL as set forth In Table B. Separate permits and, fees shall apply to retaining walls or major drainage structures as required. There shall be no separate charge for standard terrace drains and similar facilities. TABLE A-GRADING PLAN REVIEW FEES 56 cubic yards or less No Fee 51 to 100 cubic yards $100.00 101 to 1,000 cubic yards $125.00 1A01 to 10,000 cubic yards $150.00 10,001 to 100,000 cubic yards $100.00 for the Omt 100,000 cubic years, plus $25.00 for each additional 10,000 yards or fraction thereof. Other Fees: Additional plan review mqulred by changes, additions or revislons to approved plane $65.25 par . hour minimum -onshalf hour) *Or the total hourly cost to the city, whidmver Is the greatesL This cost shall Include supervision, overhead, equipment, hourly wages and fringe benefits of the employees Involved. TABLE B-GRADING PERMFir FEES' 50 cubic yards or less No Fee 51 to 100 cubic yards $75.00 101 to 1,000 cubic yards $75.00 for the first 100 cubic yards plus $25.00 for each additional too cubic yards or fraction thereof. Other Inspections and Fees: • Inspections outside of normal business houre (minimum charge -two houre)$6525 per hour • Re-Inspection fees $6525 per hour • Inspections for which rho fee Is specifically Indicated (minimum chargeone half hour) $6525 perhour' The fee for a grading permit authorizing additional work to that under a valid permit shall be the difference between the fee paid for the original permit and the fee shown for the entire pmjecL s0r the total hourly cost to the City, whichever Is the greatest This cost shall include supervision, overhead equipment, hourly wages and fringe benefits of the employees involved. page 40 miscellaneous fees 8 charge Miscellaneous Fees and Charges -Miscellaneous fees 8 charges page 41 CITY OF ASHLAND Memo DATE: April 29, 2014 TO: Dave Kanner, City Administrator CC: FROM: Lee Tuneberg, Finance Director DEPT: Administrative Services SUBJECT: Parking Fees I am recommending that the daily charge for the orange placard to park for an extended period in a regular space in the Plaza be raised from $5 the first day and $1 per day thereafter with a weekly total of $10 to $10 the first day and $2 per day thereafter with a weekly total of $20. The current fee was established one year ago attempting to recover some of the cost of managing the permitting and to reduce the prior demand for free parking for construction projects (or other activities that can't be done in a 2 hour timeframe) that were not necessary or abused. Recent experience has shown that charging for the permits is beneficial in that it eliminated most of the frivolous requests but also that bona fide requests require management, especially during periods of high demand where contractors are trying to complete projects before a specific deadline or during the high season of tourism. Like our current parking ticket of $11, many visitors consider the low amounts we charge as a cost of doing business. Especially since other large cities or tourist destinations charge so much for regular parking. Been to downtown Portland lately? This indicates we are priced to low for both permitted parking and ticketing for time violations. Staff is researching the basis for changing parking ticket fees but feels the increase for parking all day or all week should be adjusted to better recognize the economic value of the space. Current estimates indicate a parking space's economic value is many.times that of $10 per day and charging appropriately will still provide a benefit to the requesting party white minimizing the over-use of permits in the plaza. Staff plans to submit a request for changes in ticketing when research has been completed. ADMINISTRATIVE SERVICES DEPARTMENT D. L. Tuneterg, Director Tel: 541A88-5300 20 East Mara Street Fax: 541-552-2059 Ashland, Oregon 97520 TTY: 800-735-2900 wmashlend.onus CITY OF -ASH LAN D Memo DATE: April 28, 2014 TO: Lee Tuneberg, Director of Administrative Services FROM: Bill Molnar, Director of Community Development RE: Miscellaneous Fees and Charges Update The Community Development Department is requesting the following updates to the Miscellaneous Fees and Charges document: 1) Update the Planning Fees in accordance with the March 2014 CPI. 2) Add reference to Public Works plat review fees. A notation has been added that cross references Public Work's Plat and Plan Check fees identified later in the document. It is intended to inform the customer that a plat review fee is charged by both the Community Development and Public Works Departments. These are existing fees. 3) Add Building Appeals Board to the Appeals Fee structure. This is a new fee targeted at covering a percentage of the costs associated with conducting an appeal hearing before the Building Appeals Board. AMC 15.04.200 outlines the-appeal process and notes that "an appeal shall include the applicable.appeal fee or deposit, as applicable. " This, fee will assist in recovering a percentage of the administrative costs associated with preparing public notice for the appeal hearing, convening the six member Building Appeals Board, compiling a packet of relevant information regarding the nature of the appeal, including the Building Official's staff report, and preparation of the Appeals Board final decision. 4) Add Change of Occupancy Fees. - Often times a new tenant will move into an existing commercial building and open a new business without knowing that the building they occupy has been constructed and intended for a different use. The Oregon Structural Specialty Code has specific requirements that apply to specific occupancy types. If a building is constructed to a less restrictive construction method and a ,more hazardous or intensive occupancy type moves into the building, alterations are required to make the building safe for the new occupancy type. This change in use triggers the need for a special inspection and the reissuance of the Certificate of Occupancy. COMMUNITY DEVELOPMENT DEPARTMENT Tel: 54146&5305 51 Winbum Way Fax:541481 E= Ashland, Ohellon 91520 TTY: 60&135-2900 www.ashland.or.us 5) Insert Excavation/Grading Fees Chart (Exhibit-A). The Excavation/Grading Fees chart was originally adopted by Resolution 2006-19 and was accidentally omitted from the 2013-14 Miscellaneous Fees & Charges Book. COMMUNITY DEVELOPMENT DEPARTMENT Tek 5414885305 51 Winhum Way Fax: 5414885006 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashlondnrm CITY OF ASHLAND Memo DATE: April 18, 2014 TO: Lee Tuneberg, Administrative Services Director FROM: Warren DiNapoli, Electric Distribution Systems Manager) RE: 2014 Miscellaneous Fees and Charges Attached'are the Electric Department's proposed miscellaneous fees and charges for 2014. Payroll, with the exception of minor increases in materials, is the driver for the fee increases. The 2013 schedule incorporates a bargaining union's 2.5% pay increase. The remaining fees on the table were increased using the April 2014 Engineering News Record Construction Cost Index (ENR) of 9749.51 in relation to the previous ENR of 9515.86. An additional fee "denergize service" was developed for .2014. This is to reimburse the City for costs associated with a customer request to denergize their electric service for modification associated with their customer owned panel. Also included in the packet for your review are the itemized costs for each of the fees. The detail consists of material, vehicle and labor as estimated for each line item. All fees have been rounded to the nearest dollar. If you have any questions or need additional details, please let me know. 90 N. Electric Department Tex: 541 AO N. Mountain Ave. Fax: 541.652-2436 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashxand.orms City of Ashland 2014 Electric Department Misc Fees and Charges Proposed Current % Change Fees Fees Tempora Service Dro : Single Phase Underground temp 300 amps or less .$247.00 $ 245.00 0.8% Single Phase Overhead temp 300 amps or less $295.00 $ 291.00 1.4% Three Phase Actual Cast Actual Cost Meter Charges: Test r accuracy Once in twelve months No charge No charge Two or more times in 12 months-test for accuracy $176.00 $ 172.00 2.3% Meter repairs/replacement (Damaged b y Customer) I Actual Cost Actual Cost Service Calls Once in twelve months No charge No charge Two or more times in 12 months $203.00 S 199.00 2.00 Other hours or on Holidays 5303.00 $ 297.00 Deener ize service $254.00 NA Scheduled Work after hours Actual Cost Actual Cost Line Extension Charges: NEW Single-family Residential Service: Overhead service in existing developed area from distribution line to and including meter $580.00 $ 568.00 2.1% Overhead SERVICE UPGRADE or increased service fo00 am s or less $580.00 $ 568.00 2.1% Uacement U service m ove ea to underground, 300 amps or less. Customer provides all trenching, conduit, back filling and compaction as directed by the city. $1,217.00 $ 1,161.00 4.8% Underground resr enta service o 300 amps or less Customer provides conduit, trenching, back 511, compaction as directed by the City $697:00 $ 695.00 0.3% UG Distribution Installation Charges: Per Lot less house service and engineering fees S 1,186.00 S 1,158.00 2.420/. Subdivisions of 0-20 en innerin fee per lot $ 171.00 S 167.00 2.40% Three Phase as required b city per lot $ 259.00 S 253.00 2.37% Subdivisions of 2l+engineering fee per lot $ 259.00 S 253.00 2.370/a City of Ashland 2014 Electric Department Misc Fees and Charges Proposed Current % Change Fees Fees Tempora Service Dro : Single Phase Underground temp 300 amps or less $247.00 $ 245.00 0.80/0 Single Phase Overhead temp 300 amps or less $295.00 $ 291.00 1.4% Three Phase Actual Cost Actual Cost Meter Char es: Test for accuracy Once in twelve months No char a No charge Two or more times in 12 months--test for accuracy $176.00 $ 172.00 23% Meter re airstre lacement (Damaged b Customer Actual Cost Actual Cost Service Calls Once in twelve months No charge No charge Two or more times in 12 months $203.00 $ 199.00 2.0% Other hours or on Holidays - $303.00 $ 297.00 2.0% Deener 'u service $254.00 NA Scheduled Work after hours Actual Cost Actual Cost Line Extension Charges: NEW Single-family Residential Service: Overhead service in existing developed area from distribution line to and including meter $580.00 $ 568.00 2.1% Overhead SERVICE UPGRADE or increased service for 300 am s or less $580.00 $ 568.00 2.1% ep acement o service from overhead to underground , 300 amps or less. Customer provides all trenching, conduit, back filling and compaction as directed by the city. $1,217.00 $ 1,161.00 4.8% Underground resr enta service o 300 amps or less Customer provides conduit, trenching, back fill, compaction as directed by the City $697.00 $ 695.00 0.3% UG Distribution Installation Charges: Per Lot less house service and engineering fees $ 1,186.00 $ 1,158.00 2.42% Subdivisions of 0-20 en innerin fee per lot $ 171.00 $ 167.00 2.40% Three Phaseasre uiredby city per lot $ 259.00 $ 253.00 2.37% Subdivisions of2l+engineering fee per lot $ 259.00 $ 253.00 237% 2of11 CITY OF ASHLAND Electric Department Project Invoice Name' Temporary Service Drop 4/16/2014 c/o Address Phone City, State Zip Project# Account# Description Single Phase Underground temp 300 amps or less Total Material $23.62 • o Description Extended. 3 2-0801-00 CONNECTOR, PED 3-250 $5.29 $15.87 3 2-0783-01 CONNECTOR, COVER 4-HOLE $2.55 $7.65 Total Equl ment $43.13 Qty Description Unit cost ExtendecNm 1.5 E-6 - Service Vehicle $28.75 $43.13 Total Labor $180A7 Qty-HRs _qfy-Stiff Description Unit Cost Extended 1.5 1 Groundsperson $49.43 $74.15 1.5 1 Line Installer/Serviceperson $70.88 $106.32 Total Project $247.11 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name, _TempRFpry Seryice prop 411512014 c/o Address Phone City, State Zip Project# Account# Description r Single Phase Overhead temp 300 amps or less Total Material $69.20 • ST6CKff Description Price EA Extended 2 2-0950-00 DEADEND WEDGE CLAMP 2 - 6, SM $1.00 $2.00 65 2-2905-00 WIRE #40H TRIPLEX ACC OYSTER $0.84 $54.60 6 2-0705-01 CONNECTOR ALUM PARALLEL #8-210 STIR $1.42 $8.52 2 2-2667-00 WIREHOLDER, NYLON ALLOY $2.04 $4.08 Total Equipment $43.13 1.5 E-6 - Service Vehicle. $28.75 $43.13 Total Labor $183.12 p p Description Unit Cost Extended 1.6 1 Groundsperson, Meter Reader $49.43 $74.15 1.5 1 Line Installer/Serviceperson $72.65 $108.98 Total Project, $295.45 1 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name', Meter Test for Accuracy 4/1512014 c/o Address Phone City, State Zip Project# Account# Description . Two ormore times in twelve months Total Material Description Price EA • • Total Equipment $23.00 My Description Unit Cost Extended 2 E-3 - Meter Relay Van $11.60 $23.00 Total Labor $162.66 Qty-HRs ty-staff Description Unit Cost Extended 2 1 Meter Relay Technician $76.28 $152.56 Total Project: $175.56 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name Service Calls 4/1512014 . c/o Address Phone City, State Zip Project# Account# Description two or more times in twelve months -normal business hours _ Total Equipment $57.50 MWQ_ty_~ Description Unit Cost Extended 2 E-6 - Service Vehicle $28.75 $57.50 Total Labor $145.30 • a -'Description Unit,Cost Extended 2 1 Line Installer/Senriceperson $72.65 , $145.30 Total Project $202.80 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name 'Service calls 411512014 . c/o Address Phone City, State Zip Project# Account# Description Two or more times in twelvemonths - after hours or holidays Total E ul ment $57.60 QtyDescription Unit Cost Extended 2 E-6 - Service Vehicle $28.76 $57.50 Total Labor $245.04 w • ff Description Unit Cost. Extended 2 1 Line Installer/Serviceperson (OT) $122.62 $245.04 Total Project! $302.54 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name, Denergize Service 4115/2014 CIO Address Phone city, State Zip Project# Account# Description Request to denergize existing electric service for any modifications to customer owned F electric. panel,.. Total E ui ment $71.88 ME-FIT77 Description Extended 2.5 E-6 - Service Vehicle $26.75 $71.88 Total Labor $181.63 w a Description Unit Cost Extended 2.5 1 Line Installer/Serviceperson (OT) $72.65 $181.63 Total Project' $25-3.50- Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name Line Extension Charge 411512014 c/o Address Phone City, State Zip Project# Account# Description, Overhead service in existing developed areas from distribution line to and Including meter Total Material $202.48 2 2-0945-00 DEADEND WEDGE CLAMP 1/0-4, LG $3.37 $6.74 1 0-ooo0-0 METER IPH RES RADIO READ $65.84 $65.84 100 2-2915-00 WIRE-110 OH TRIPLEX MUREX $1.16 $116.00 6 2-0705-00 CONNECTOR ALUM PARALLEL #8 - 210 STR $1.42 $8.52 ~1 2-2667-00 WIREHOLDER, NYLON ALLOY $2.04 $2.04 1 2-2670-00 WIREHOLDER, SERVICE PIPE CLAMP $3.34 $3.34 Total Equipment $71.88 • Description 2.5 E-6 - Service Vehicle $28.75 $71.88 Total Labor $305.20 • 2.5 1 Groundsperson, Meter Reader $49.43 $123.58 2.5 1 Line Installer/Serviceperson $72.65 $181.63 Total Project $579.56 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name Line Extension Charge 4115/2014 c/o Address Phone city, state zip' Project# Account# Description' Overhead service upgrade or Increased service for 300-amps-or less Total Material $202.48 2 2-0945-00 DEADEND WEDGE CLAMP 1/0-4, LG $3.37 $6.74 1 0-0000-0 METER 1PH RES RADIO READ $65.84 $65.84 100 2-2915-00 WIRE 1/0 OH TRIPLEX MUREX $1.16 $116.00 6 2-0705-00 CONNECTOR ALUM PARALLEL #8 - 2/0 STR $1.42 $8.52 1 2-2667-00 WIREHOLDER, NYLON ALLOY $2.04 $2.04 1 2-2670-00 WIREHOLDER, SERVICE PIPE CLAMP $3.34 $3.34 Total Equipment $71.88 • Description: 2.5 E-6 - Service Vehicle $28.75 $71.88 Total Labor $305.20 • • Descriptioh Unit Cost Extended 2.5 1 Groundsperson, Meter Reader $49.43 $123.58 2.5 1 Line Installer/Serviceperson $72.65 $181.63 Total Project $579.56 Prepared By: Signature: CITY OF -ASHLAND Electric Department Project Estimate Name Line Extension, Charges __f 4/15/2014 c/o Address Phone City, State Zip Project# Account# _ Description Replacement of service from overhead to underground, 300 amps or less. Customer provides all trenching, conduit, backfilling and compaction as directed by the-City Total Material $349.00 Description Price EA tExt6nd&d 3 2-0197-00 BRACKET 3" KENDORF STRAP $2.42 $7.26 3 2.0194-00 BRACKET, STANDOFF, 12" $13.46 $40.38 10 2-0447-00 CONDUIT 3" PVC SCH 80 10' $2.57 $25.70 40 2-0446-00 CONDUIT, 3" PVC, SCH 40 $1.75 $70100 125 2-3030-00 WIRE, UG, #4/0 TRIPLEX, URD ALUM 600V $1.55 $193.75 3 2.0801-00 CONNECTOR ALUM PARALLEL #8-2/0 STIR $1.42 $4.26 3 2-9998-00 CONNECTOR, COVER 4-HOLE $2.55 $7.65 Total Equipment $241.50 B Description 3 E-10 - Bucket Truck $34.50 $103.60 3 E-12 - Line Truck $46.00 $138.00 Total Labor $626.07 P D' 3 - 1 Lead Working Line Installer $78.58 $235.74 3 1 Line Installer $72.65 $217.95 3 1 Line Truck Driver $57.46 $172.38 Total Project $1,296.57 Prepared By: Signature: CITY OF ASHLAND Electric Department Project Estimate Name ~ Line Extension charges I 411512014 c/o Address Phone City, State Zip Project# AccounW Description Underground residential service of 300 amps or~ less. Customer provides conduit, trenching, backfili, and compaction as directed by the City Total Material $234.01 rip ~ • s o• . . 3 2-0784-00 CONNECTOR, PED 4-350 $4.39 $13.17 1 0-0000-0 METER 1PH RES RADIO READ $65.84 $65.84 100 2-3030-00 WIRE, UG, #4/0 TRIPLEX, URD ALUM 600V $1.55 $155.00 Total Equipment $158.13. w Description Cost Extc~nded 2.5 E-6 - Service Vehicle $28.75 $71.88 2.5 E-9 - Bucket truck $34.50 $86.25 Total Labor $305.20 r a r 2.5 1 Groundsperson, Meter Reader $49.43 $123.58 2.5 1 Line Installer/Serviceperson $72.65 $181.63 Total Project' $697.34 Prepared By: Signature: LINE EXTENSION CHARGES Previous Proposed Underground Distribution Installation Charges: Per Lot less house service and engineering fees. $ 1,158.00 $ 1,186.00 Subdivisions of 0 to 20 engineering fee per lot $ 167.00 $ 171.00 Subdivisions of 21+ engineering fee per lot $ 253.00 $ 259.00 Three phase subdivision as required by city per lot $ 253.00 $ 259.00 Previous ENR (Engineering News Record Construction Cost 9515.86 April 2014 ENR Construction Cost 9749.51 % Rate of Adjustment 2.46% CITY OF ASHLAND Memo DATE: April 21, 2014 TO: Kristy Blackman FROM: Margueritte Hickman, Division Chief / Fire Marshal RE: Inspection Fee Increase Please adjust the fire inspection fees in accordance with the CPI of 1.5% effective March 1, 2014. with 1.7% increase 2014 rounded up. 10,001- Occupancy 0-1,000 1,001-3,000 0-3,000. 3,001-10,000 20,000 >20,000 B $35.00 $52.00 $102.00 $152.00 $203.00 A, E, F, H, I, M, S _ $52.00 $102.00 $152.00 $203.00 Number of Units 3-10 11-40 41-70 >70 R, SR $52.00 $102.00 $153.00 $203.00 Reinspection Fees 3rd $54.00 4th $107.00 5th or greater $158.00 ASHLAND FIRE & RESCUE 455 Slsklyou Boulevard Ashland, OR 97520 /r, (541) 482-2770 • Fax (541) 488.5318 TTY: 800-735-2900 vawr~ on auvcrc o vuen .o 4 ~pp E I~ a 0. N u .O Oi q' r Q N YVI, /pN~• ,H ytt L y ~ N ,Cl ppppp ~sV~:~~pp~pp~O Yl pp~~~O 6V b6 N< V MNS ~ L C.~O F.'~OOV' NO0000 S' ' m L •e~• Y H O vNi PMT O„~Ny ON~ 222a H H H H H H • G N 6• Ti Q N H H f A H H H H H ~ yy5 i7) 7: NO.m DN p~ p... .'.1 `p C O ~ ~ Y i5i vopi Y n 4• EEE ~~o~ tV vi N Vi N O. ~ u O^ pFy y F F. i F H H H H H H ¢ C~ O f L t CCx77 $e4[ a G 7S Y a..Ya m ~ L W N •O 1. N Y G ry V Y 8c~vu 8 11y~ae~9~ r z d u g Y!3~3~ pa,TT m ^G' ."c Y > GG CC CCY GYG ~~p6~ 9CC 9CC 9CC 9 pQQ,. pp6 LL Y 9 U V LLI $ m Q P. C o N t0 Y Y tl 5 LL N N. W Y V V G O. Y .0.. .S W m OO 9 9 Y 7 7 6 Q ••;;~~~y ~ e m i2 Yu~ Y oo 'R. :~a 3 0 mCA (5 uo Cz`a a ° rc Mu zwtz'.t~w4~d~d~aQ~.w¢ o ~s o .L pap ,E x= a~ 91 a~ s~ i ° siats<p spa-o ~a~ g ;~OO' .S ..fV1„iM o N ig th• S E ~ Vf'N:w^ to ~n~R~« Nil+: ~1 x~ p a ~'.°?v g a (yg~ Vg~ Vg~ 88,8 (8$888 Q~8y 8 8 8 u S 8 a w N N N N S N N VI N N N N N N N N N N. Ni .b NN 5FN x ~ ~ ~ .E K c ~ Q S Vnn ~ W rtii btlq ue -3 m wp ppC~ lu' °F ~ V. 6qL ~ V° c yy,~ S < G l ~ ~ ~ &Fp~ N~ ry~ h b N~ N. CL ry M O O Ei w JJ 6 t t7 Q W C 'W" 24 LL .S. S. t H# E ~Q( B F's FC3 Vti~VW CH F~FS N LL~LL' N V~ gBg` E'F 6'o~~Qo 0 my L r~ .5 Q a~ t & YL iY µj k.f R cg°Oj U j~ o ~f 6 a<z o~LLa` LLgxmw =91 S`S~~ 0 L ZO z~° 3v0i ~3 CITY OF ASHLAND Memo DATE: April 29, 2014 TO: Lee Tuneberg, Administrative Services Director FROM: Michael Ainsworth, Telecommunications Manager CC: Kristy Blackman, Administrative Services/Finance Administrative Assistant RE: Telecom's Proposed Changes/Revisions to Miscellaneous Fees and Charges The AFN Telecommunications Division is proposing changes solely to the text descriptions listed in the Information Technology section pages 23 and 24 and no changes to the actual fees or fees structure. Changes to the document (pages 23 and 24) are primarily revisions of the description of services and text formatting to improve the reading flow. Significant changes include: Page 23, under the category of Installation Fees: The line "Wi Max standard installation $200" has been moved to the bottom of the category listings. Page 23, formatting only changes, replacement of standard font with bold font for improved clarity. Page 24, under the category of Non-return of customer premise equipment (CPE) devices: $300 "Anywhere and/or AFN Max" are deleted so that the CPE's will not be associated solely to wireless services. Page 23 the header Transit Fee is being changed to Ethernet to better describe the connection circuit. Page 23 under the category of Fiber Service Installation: "Mandatory two-year agreement" is deleted and future service terms will be defined by Individual Business Case (IBC) Product descriptions have been trimmed down to "overhead served" and "underground served" to simplify the two primary service descriptions. Page 24 under the category of Business Augmented Upload Package (additional 5Mbps) The wording for the product descriptions have been tightened up. Dated descriptions have been revised and/or deleted. No changes proposed for actual fees or to the fee structures for Telecommunication services listed on pages 23 and 24. DEPARTMENT HERE Tel: 541488-8002 Street Address Fac 541488-5311 Ashland, Oregon 97520 TTY: 800-7352900 w Ashland.orus 1 Section 6-Information Technology Information Technology Miscellaneous Fees and Charges* Installation Fees: Basic installation-Pre-wired CATV outlets only $ 20.00 (Additional charges for parts and supplies apply) Add Trap ("filter") $10.00 New customer cable modem activation $10.00 Cable Modem $50.00 Refurbished 90 -day replacement warranty Additional materials $10.00 Over-and-beyond regular installation including multi outlets, outlet plates, additional wiring, replacement of customer damaged outlets. Wi Max standard nstailation ;$200'cQ0 Disconnect Fees: Disconnect $50.00 Remove Trap ("Filter") $10.00 Truck Roll: $35.00 Field Technician Hourly Rate: Non-standard work such as advancing troubleshooting, $55.00 non-standard outlets, fishing wire inside walls, etc. Consultina and Technical Support Hourly Rate: For support issues not related to AFN infrastructure, performance, $85.00 and reliability. Minimum charge on hour. Non-City Employee Staff Screening: Charge for each vendor employee submitted for authorization to Access AFN and City Service Center facilities. $150.00 Fiber Service Installation: f;4iaintum one Ine Jkt fer 6r ei6ead sei o ed eenseefiens '`a "---i 1008, ftt Overhead served connections. Individual Business Case (IBC) & quote Underground served connections IBC & quote Ethe"rne'T''m~.i cca- Transit @ 100 Mbps IBC & quote miscellaneous fees and charges page 23 Section 6-Information Technology Static IP Address: $5.00/mo each Maximum of 5 Static Internet Protocol (IP) addresses* • Minimum level of service for static IP and Quality of Service (QoS)'is "CHOICE" or higher service tier. oS Fee: $3.50/mo VOIP (phone) enhancement available with AFN Choice or higher service level through AFN certified Modems. Business Augmented Upload Package (additional 5 Mbps): $15.00/mo Available' exclusively on.AFNDirect x iplend I'aeknge:ava~lehle enl~ ~yFfh _ Small Uffcel fome Office- (SO)iO) or Snail Business. 1lusi have'currerit.60 of Ashland Business License *Additional fee added to base AFN Direct retail rates on specific packages. Maximum SOHO upload speed with augmented upload service at up to 9 Mbps Small Office/Home Office Business Augmented Upload Package @$80/month Maximum Small Business upload speed with augmented upload service at up to 10 Mbps Small Business Augmented Upload Package @ $100.00/month Non-return of customer premise equipment (CPE) devices: $300.00 CPE's must be returned on disconnect date of AFM*nq."rM_a dfor AFNNiax services. Cable N (CAN) Seasonal Reconnects & Disconnects: $10.00/visit Non-pay disconnects & reconnects Service change Install HBO filter CAN House Amp Fee: $35.00/each Utility Billing Lobby Sianape Fee: $100.00/mo. Cable Modem Rental $5.00/mo. Non Return of Rented Modem at Closina of Account $50.00each Cable Modem Purchase $50.00/each * Resolution 2010-28 (Section 2, page 38) grants tnformation Technology management ability to set promotional rates. page 24 miscellaneous fees and charges C I T Y OF ASHLAND Memo DATE: April 30, 2014 TO: City of Ashland, Finance Department FROM: Ashland Municipal Court RE: Miscellaneous Fees and Charges (Updated) f The Court has 4 changes to our Fees and Charges: City Attorney Deferred Sentence/Diversion for Violations: Not charged on Violations -0-. Extend/Amend City Attorney Deferred Sentence or Diversion: Not charged on Violations -0-. Show Cause Admission of Allegation: Not charged on Violations -0-. Withholding on County Assessment: N/A/New County Assessment all collected goes to the County. MUNICIPAL COURT 541A82-5214 1175 East Main Street Fax: 541-0885586 AsNand, Oregon 97520 TTY: 800-735-2900 w .asNarvJ.or.w CITY OF Memo, ASHLAND DATE: April 22, 2014 TO: Lee Tuncberg, Administrative Services Director FROM: Kelly Haptonstall, Lead Police Clerk RE: Fingerprint Pee Increase Attached is the Ashland Police Department's proposed fingerprint fee increase. General cost increase is the main driver for the fee increase. Also included in the packet for your review are the itemized costs for fingerprinting. The detail consists of the clerk's time, maintenance fees, use of machine, toner, and gloves. The proposed fee increase is $35.00 per initial card and $10.00 for additional cards. If you have any questions or need additional details, please let me know ASHLAND POLICE DEPT, Tel: 541482.5211 1155E. Main St Fax: 541488-5351 AsNand, OR 97520 TTY: 000-735.2000 www asNand.or.os APD Fonn 82, Rev 9/12 City of Ashland Police Department Cost of Services for Finger printing . . Number of cards per year 540 Number of years use of machine 6 Number of toner cartridges per year 2 Cost per unit (finger print card): Time Clerk hr rate $ 22.76 Gross up for benefits $ 35.28 Half hour per unit 50% Cost of time $ 17.64 $ 17.64 Maintenance Fee Cost per year $ 2,400 Number of cards per year 540 Cost of fee $ 4.44 $ 4.44 Use of Machine Cost of Machine $16,538 Useful life 6 yrs Replacement cost Q 3% inflation $20,507 Replacement cost per year $ 3,418 Number of cards per year 540 Cost of machine $ 6.33 $ 6.33 Toner Toner cost per year (2 * $1,015) $ 2,030 Number of cards per year 540 Cost of machine $ 3.76 $ 3.76 Gloves Cost per box of 500 gloves $ 150 Cost per glove. $ 0.30 $ 0.30 Total Cost Per Unit $ 32;47 Memo CITY OF ASHLAND Date: 4/25/2014 From: Betsy Harshman To: Lee Tuneberg Re: Miscellaneous Fees and Charges Please make the adjustments in the FY 2014/2015 Miscellaneous Fees and Charges Document as shown in the attached documents. To cover some of our refund processing costs, we'd also like to add a clause that states: An administrative fee of 25% will be assessed on all permit refunds. Refunds will not be issued if requested later than one-year following the application date. On page 27 of this year's book, following Subdivision plats and partition plats, please add: (does not include planning review fee, see page 11). Planning requested we add these statements so customers know there are will be additional fees upfront; they have added similar verbiage to their update. Engineering Tel: 541/499-5347 20 E. Main Street Far 541-/490 As , Ashland, Oregon 97520 TN: 800!7355--2902900 w .ashtand.orms . Section 9-Public Works Public Works Miscellaneous Fees and Charges Copy Fees: Black and White Copies Letter/Legal Single-Sided $0.20 each Black and White Copies Letter/Legal Double-Sided $0.40 each Black and White Copies Tabloid. Single-Sided $0.40 each Black and White Copies Tabloid Double-Sided $0.80 each Color Copies Letter/Legal Single-Sided $1.50 each Color Copies Tabloid Single-Sided $3.00 each Existing maps printed in color on HP1055CM plotter (241b bond Paper) Arch C 18 x 24 3.00 sq. ft. $18.00 Arch D 24 x 36 6.00 sq. ft. $36.00 Arch E 36 x 48 12.00 sq. ft. $72.00 Existing maps or copies of existing maps copied in B&W on Xerox 3030 large format copier (201b bond paper) Arch C 18 x 24 $8.00 Arch D 24 x 36 $12.00 Arch E 36 x 48 $16.00 Note: Maps printed on materials other than the specified bond are double the standard print fee Plat & Plan Checks:. Ldpe_C190` %AO-Ade~11dhAf/uf Subdivision Plats $730.00 plus t~~ $110.00 per lot rt/ O& O Ae b'w P"t Condominium Plats $730.00 plus $110.00 per lot Partition Plats 4\ (does not include 24% Fire Department Review Fee) $391.00 J Subdivision Improvement Plat Check 5% Engineer Fee (5% of the public improvement cost) Engineering Development Fee (this fee is charged concurrently with Building Permit Fees at the time of building permit applications. Applies To all new residential dwelling units and commercial 0.75% of valuation Developments. Remodels, additions and accessory Buildings are not assessed this fee.) miscellaneous fees and charges page 27 Section 9-Public Works Public Works Miscellaneous Fees and Charges Copy Fees: Black and White Copies Letter/Legal Single-Sided $0.20 each Black and White. Copies Letter/Legal Double-Sided $0.40 each Black and White Copies Tabloid Single-Sided $0.40 each Black and White Copies Tabloid Double-Sided $0.80 each Color Copies Letter/Legal Single-Sided $1.50 each Color Copies Tabloid Single-Sided $3.00 each Existing maps printed in color on AP1055CM plotter (241b bond Paper) Arch C 18 x 24 3.00 sq. ft. $18.00 Arch D 24 x 36 6.00 sq. ft. $36.00 Arch E 36 x 48 12.00 sq. ft. $72.00 i Existing snaps or copies of existing snaps copied in B&W on Xerox 3030 large format copier (201b bond paper) Arch C 18 x 24 800 Arch D 24 x 36 AM &O Arch E 36 x 48 6t0~- Note: Maps printed on materials other than the specified bond are double the standard print fee Plat & Plan Checks: r liis 1 Subdivision Plats E$I QT 9 10!00 pei of ~q + Condominium Plats 730t00Tilus - ' $110! 'j" lot Partition Plats (does not include 24% Fire Department Review Fee) 0_icajai(ui Subdivision Improvement Plat Check 5%o Engineer Fee (5% of the public improvement cost) Engineering Development Fee (this fee is charged concurrently with Building Permit Fees at the time of building permit applications. Applies To all new residential dwelling units and commercial 0.75% of valuation Developments. Remodels, additions and accessory Buildings are not assessed this fee) miscellaneous fees and charges page 27 Section 9-Public Works Public Works/Engineering Inspections. Permits, etc: Subdivision Construction Inspection/ 5% Engineer Fee(5% of Public Works Improvement Inspection the public improvement cost) Street or Alley Excavation Permit $~1 6 + per ft. cost based on pavement age Encroachment Permit $19 c00' i` + Miscellaneous Construction Permit $64c00~ - ' (Construction of curb, sidewalk, driveway Apron, etc.) Dust Suppression Permit Driveway Painting Permit $16.00 (includes a can of paint) Right-of Way Closure-Street $19,,60/ Right-of Way Closure-Sidewalk(>72 his) Right-of Way Closure-Sidewalk(<72 hrs) $16.00 Right-of Way Closure-Parking Space(>72 hrs) $_640 ' Right-of Way Closure-Parking Space(<72 hrs) $16.00 ° Block Parry $16.00 Sidewalk Dining-Annual Renewal (minimum 50 sq. ft) Functional Item-Annual Renewal $nt 64101ti a Special Event Permits (per Resolution 2012-08): Base Special Event Permit Fee (plus applicable fees M 3,_ !d00 y~{ ' f 1 below) Events that require city staff overtime Y~160%Toftcityjstaffi0'hI b ildli} 1r Rush Fee (less than 90 days advance notice) $250.00 page 28 miscellaneous tees and charges Section 9-Public Works Public Works/Engineering Inspections, Permits, etc. (cont) i - - -Loaned Functional Item, Pennant Applica- on Eee $133 00 _ Publication Box Per Publication-Annual Renewal $27.00 Special vehicle Permit-Initial Fee + 9A yyy Special vehicle Permit-Annual Renewal 8$11;0 : 0 t'1 Penalty for No Permit .150% of permit cost Street or Alley Vacation $tR 65910 GIS Data & Mapping Services: 00 GIS Hourly Rate Information on Disk $40.0-6/utiIity;(per I Quarter section l Planning Pre-Application Maps $22.00 Plotting Fee $6.00/square foot New Address Assignment ~$`~7 ad Tess a: Street Name Approval Fee SON' 0'F= miscellaneous fees and charges page 29 Section 9-Public Works Sanitary Sewer Connection Fees: Sanitary sewer mainline video inspection $3 700, minimum , (cost based on time and materials) Water Connection Fees: The installation of all new water services and large taps regardless of size will be charged on a time and materials basis. First Utility Locate at an address No Charge Additional Locates at same address t$0 ! Water. meter re-read Once in 12 months No Charge Each additional re-read in 12 months $ 1 UO iYI l Water Meter Field Test Water Meter Bench Test 3/4" or I" Water Meter $JU70 1 1/2" or 2" Water Meter $r009W11a1 Larger Meters Actual Cost page 30 miscellaneous fees and charges Section 9-Public Works Water Connection Fees Continued Water pressure check once in 12 month No Charge Each additional pressure check in 12 months $!3;>t0d ( ' j.. Water Chlorination Test -Subdivision retest upon failure (cost based on time and materials) $ 01MI . w Water Pressure Test -Subdivision retest up failure (cost based on time and materials) $o., -0 _ Cemetery Fees: Sales of grave spaces or burial plots: (fees split, 40% to the cemetery fund & 60% to the cemetery trust fund) Grave Space -Lawn and Monument Sections6 "G'• Grave Space -Baby Land b0:00 Grave Space-Niches (bronze) Grave Space -Um garden $ ly~oo Grave space ;Crypt $1;071 Q0 Sales of liners and markers: (fees split, 40% to the cemetery fund & 60% to the cemetery trust fund) Concrete cemetery box, including setting x$_428(00 ' Concrete liners Cost plus 10% Final inscriptions $125t0~min oGarge itta$IjirNtyt Grave markers ` - " Z Wholesale cost X 2.5 t~ t . 4 "E not to exceed $700.00 Grave marker setting, concrete base 06,0. 0 f Monticello burial vault (sealed concrete) mj)~i]<78.0000 MUM FY- miscellaneous fees and charges page 31 Section 9-Public Works Sexton Fees: Opening and closing graves, ground $42$ 0U .!1't Opening and closing graves, double-deep Opening and closing graves, infant/Oi~O l' } Opening and closing crypts' $428A0 Opening closed crypts $42g:0 Opening and closing niches $1108:00 Q~+[~~;: O~ c.h11T~!'~i Lei'.. i t .+.Ate:•1'-i.t;,, I •I--...,, Inter cremains in grave spaces $ I ou.Vu Scattering of cremains $108!00 41~. Disinterment $W010/in advance s' Saturday, Sunday or Holiday burial $4,28.00 _ WI~f Miscellaneous Fees: Grave Setup Rental $ I O 46/,0ccurrcnce N It l Tent Rental $53007day lP..~ Perpetual care lots, sold before 1927 $10 Vases: t;. Galvanized $4 0 ' *cemetery fees will be subject to a 1..5% finance charge per mo ifnotpaid within 60 days of use. All above services will be sold pre-need in installments, interest free, with a minimum payment of one-twelfth of the total sale. 2013 CPI and ENR Calculations: Methodology: Current CPI Rate - Old CPI Rate/Old CPI Rate = % Rate of` djustment ($32.773-229:292)/229:292'=1:5% Methodology: Current ENR Rate - Old ENR Rate/Old ENR Rate = % Rate of Adjustment `(1A55"I8b92$7F57)/92'G7 57 2 0% ,;T °7 , t if 114 }Z2E.( 1 t; s f- CPI used for: ENR used for: Plat & Plan Checks Sanitary Sewer Connection Fees Public Works/engineering Inspections, Permits, etc. Water Connection Fees GIS Data & Mapping Services Cemetery Fees page 32 miscellaneous fees and charg C11alYli0n • (WWOU/)ILD r.1v~h]B14 CPI V8(ba: (14391 (NeIV) 1 (13439]Ll,i]\vi1;97];;.135( ~'j,:,Cr'i 1~i "vd 1U]UfNRYIIa 9701.96 (NBIVI 3(sp .~.1 tdwd(1013 EN0.mlu0 9155.9p (OLU) - ,(91w%•~559ilh9/559t_2.[!3 vi T• F. 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PIONEER STREET ASHLAND. OREGON 97520 COMMISSIONERS: Don Robertson Mike Gardner _ Director Rick Lath r` Jim Lewls TEL: (541) 498-5340 Stelam Sefingor FAX' (541) 4995314 Venston Shaw jf MEMORANDUM TO Lee Tuneberg, Finance Director FROM Rachel Dials, Recreation Superintendent DATE 4-18-14 SUBJECT Fees and Charges-Ashland Parks and Recreation In 2006 the Parks and Recreation Commission set a goal of reviewing fees and charges for the Ashland Parks and Recreation Department each year in November. The annual review includes fees and charges associated with the Calle Guanajuato, North Mountain Park Nature Center, . Ashland Senior Center, adult and youth recreation programs, indoor and outdoor reserved facilities, the Oak Knoll Golf Course; the Daniel Meyer Pool, and the Ashland Rotary Centennial Ice Rink. As of this date, the Parks Commission has not reviewed fees'and charges and moving forward will sync up the process with the biennium budgets. Staff did find a few corrections and omissions from previous reviews that are highlighted below and reflected in the proposed document. They are: Special Event Application Fee $25.00 (omitted from document) Ballfield Lights $34.00/hr (scheduled for increase in 2014) Calle Guanajuato-Restaurant Seating $7.00/sq. foot(scheduled for increase in 2014) Swim Lessons $40/$42/$48 (adjusted in 2012) Adult Hockey Admission $5.50 (omitted from document) Youth Hockey Admission $5.00 (omitted from document) Ice Skating Private Lesson $10.00 for 30 min (omitted from document) Youth Hockey Punch Card $45.00 (omitted from document) Adult Hockey Punch Card $50.00 (omitted from document) Open Skate/Kids Only Punch Card $30.00 (omitted from document) Helmets $8.00 (omitted from document) Home of Famous Llthia Park CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Adoption of the City's self-insured health plan for the plan year July 1, 2014 through June 30, 2015. FROM Dave Kanner, City Administrator, dave.kannergashland.or.us Tina Gray, Human Resources Manager, tina. ray(a ashland.or.us SUMMARY As a self-insured entity for health benefits, the City must adopt a plan document annually. The Employee Health Benefit Advisory Committee reviewed the plan at its meetings this spring and recommends that the City Council adopt the City's existing self-insured health plan with only two modifications: 1) Revised language regarding the appeal process which serves to streamline the process for the covered individual filing an appeal and giving the City a more clearly defined role in the process; and 2) Incorporate administrative changes that are required by the Affordable Care Act for the purpose of standardizing coverage. BACKGROUND AND POLICY IMPLICATIONS: July 1, 2013, the City transitioned from a fully-insured health plan with PacificSource, to a self- insured health plan (medical, dental and vision). We retained PacificSource as our third party claims administrator so the change in claims administration would be seamless for employees. The City established an Employee Health Benefits Advisory Committee (EHBAC), composed of representatives from each bargaining group as well as non-represented City and Parks employees. The charge of the EHBAC is to meet regularly and review claims experience and make recommendations for the upcoming plan year. The EHBAC reviewed a number of suggested changes, but in the interest of cost savings and getting more experience as a self-insured entity, the only recommendation for change is to update the appeal language in order to streamline the process for appealing an adverse benefit decision and to provide a more clearly defined role for the City in the process. This revised language replaces the existing language that begins on page 61 of the current plan document under the heading "Your Right to Appeal," up to the language on page 64 under the heading, "Independent External Review." A short list of additional changes must be incorporated into our health plan to ensure compliance with the Affordable Care Act. Page I of 2 Pr, CITY OF ASHLAND FISCAL IMPLICATIONS: The modification to the appeal process language will have no fiscal impact. The language will allow the City to enter the appeal process as the "Plan Administrator" earlier in the appeal process which serves to provide the covered employee with a less cumbersome process. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff is recommends approval of the 2014-2015 City of Ashland Self-insured Health Benefits Plan with revised appeal language and administrative changes required by the Affordable Care Act. SUGGESTED MOTION: I move approval of the 2014-2015 City of Ashland self-insured health benefit plan with the modifications recommended by the Employee Health Benefits Advisory Committee. ATTACHMENTS: Prior year health plan summary City Prior year health plan summary Parks Proposed revision to language regarding the Appeal Process Modifications required under the Affordable Care Act. Page 2 of 2 ~r, CITY'OF -ASHLAND City of Ashland Group No.: G0032482 Preferred 90+200 VAR GF 0812 Effective: July 1, 2013 Third Party Administrative Services Provided By: 6 PacificSource HEALTH PLANS SPD 0713_City of Ashland SinyleSouroe Self-Insured This page left intentionally blank. SingleSource Self-Insured 2 INTRODUCTION Welcome to your City of Ashland (also referred to as'the employer' or'employee) group health plan. Your employeroffers this coverage to help you and your family members stay well, and to protect you in case of illness or injury. Your plan includes a wide range of benefits and services, and PacificSource hopes you will take the time to become familiar with them. Your employer, who is also the Plan Sponsor, has prepared this document to help you understand how your plan works and how to use it. This document summarizes the benefits provided under the Preferred 90+200 VAR GF 0812 Plan (referred to as 'the plan' or'this plan' throughout this document). Please read it carefully and thoroughly. Your benefits are affected by certain limitations and conditions, which require you to be a wise consumer of health services and to use only those services you need. Also, benefits are not provided for certain kinds of treatments or services, even if your health care provider recommends them. The plan is a self-insured medical plan intended to meet the requirements of Sections 105(b), 105(h), and 106 of the Internal Revenue Code so that the portion of the cost of coverage paid by your Plan Sponsor, and any benefits received by you through this plan, are not taxable income to you. Your specific tax treatment will depend on your personal circumstances; the plan does not guarantee any particular tax treatment. You are solely responsible for any and all federal, state, and local taxes attributable to your participation in this plan, and the plan expressly disclaims any liability for such taxes. The plan is 'self-insured,' which means benefits are paid from your employer's general assets and or trust funds and are not guaranteed by an insurance company. The Plan Sponsor has contracted with a Third Party Administratorto perform certain administrative services related to this plan. PacificSource Health Plans is the Third Party Administrator and provides administrative services for this plan on behalf of the Plan Sponsor. If anything is unclear to you, PacificSource's staff is available to answer your questions. Please give them a call or visit them on the Internet at PacificSource.com. PacificSource looks forward to serving you and your family. PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extensi6n 1009 cs@pacificsource.com This document serves as the written Plan document and Summary Plan Description (SPD). It is very important that you review the entire document carefully to confirm a complete understanding of the benefits available, as well as your responsibility, under the plan. This document is written in simple, easy-to-understand language. Technical terms are printed in italics and defined in the Plan Terms and Definitions section. This document explains the services covered by the plan; the benefit summaries tell you how much this plan pays toward expenses and amounts for which you are responsible. As used in this document, the word 'year' refers to the benefit year, which is the 12-month period beginning January 1 and ending December 31. The word lifetime as used in this document refers to the period of time you or your eligible dependents participate in this plan or any other plan sponsored by the Plan Sponsor. Any amount you or your eligible dependents have accumulated toward the benefit maximum amounts, deductible, or out-of-pocket maximum of any immediately prior plan sponsored by the Plan Sponsorwill be counted toward the benefit maximum amounts of this plan. The Plan Sponsor reserves the right to amend, modify, or terminate this plan in any manner, at any time, which may result in termination or modification of your coverage. If this plan is terminated, any plan assets will be used to pay for eligible expenses incurred prior to the plan's termination, and such expenses will be paid as provided under the terms of this plan prior to termination. If there is any conflict between this document and the underlying plan document(s), the plan document(s) control. SingleSource Self-Insured 3 This page left intentionally blank. SingleSource Self-Insured 4 CONTENTS MEDICAL BENEFIT SUMMARY 3 PRESCRIPTION BENEFIT SUMMARY 5 CHIROPRACTIC CARE BENEFIT SUMMARY 9 ADDITIONAL ACCIDENT BENEFIT SUMMARY .........................................................11 VISION BENEFIT SUMMARY ......................................................................................13 DENTAL BENEFIT SUMMARY ....................................................................................15 USING THE PROVIDER NETWORK ............................................................................17 Preferred Provider Organization (PPO) .................................................................................................17 What is a PPO .......................................................................................................................................17 Who is Your PPO ...................................................................................................................................17 About Your PPO ....................................................................................................................................17 Non-PPO Providers ...............................................................................................................................18 Example of Provider Payment ...............................................................................................................18 Allowable Amount ..................................................................................................................................18 NETWORK NOT AVAILABLE BENEFITS ...................................................................18 COVERAGE WHILE TRAVELING ................................................................................18 Nonemergency Care While Traveling ....................................................................................................19 Emergency Services While Traveling ....................................................................................................19 FINDING PARTICIPATING PROVIDER INFORMATION .............................................19 TERMINATION OF PROVIDER CONTRACTS ............................................................19 BECOMING ELIBIGLE .................................................................................................20 Who Pays for Your Benefits ...................................................................................................................20 Who is Eligible .......................................................................................................................................20 ENROLLING DURING THE INITIAL ENROLLMENT PERIOD 21 Newborns.. 21 Adopted Children 21 Family Members Acquired by Marriage ....21 Family Members Acquired by Domestic Partnership .............................................................................21 Family Members Placed in Your Guardianship .....................................................................................22 Qualified Medical Child Support Orders ................................................................................................22 ENROLLING AFTER THE INITIAL ENROLLMENT PERIOD 22 Returning to Work after a Layoff ............................................................................................................22 Returning to Work after a Leave of Absence .........................................................................................22 Returning to Work after Family Medical Leave ......................................................................................22 Special Enrollment Periods ....................................................................................................................23 Dental Enrollment ..................................................................................................................................23 Late Enrollment ......................................................................................................................................23 Member ID Card ....................................................................................................................................24 PLAN SELECTION PERIOD 24 TERMINATING COVERAGE 24 Divorced Spouses ..................................................................................................................................24 Dependent Children ...............................................................................................................................24 Dissolution of Domestic Partnership ......................................................................................................24 Certificates of Creditable Coverage .......................................................................................................25 SingleSource Self-Insured 5 CONTINUATION OF INSURANCE 25 USERRA CONTINUATION 25 Surviving or Divorced Spouses and Qualified Domestic Partners .........................................................26 COBRA CONTINUATION 26 COBRA Eligibility 26 When Continuation Coverage Ends ......................................................................................................26 Type of Coverage ..................................................................................................................................27 Your Responsibilities and Deadlines .....................................................................................................27 Continuation Premium ...........................................................................................................................27 Keep Your Plan Informed of Address Changes .....................................................................................27 CONTINUATION WHEN YOU RETIRE 27 WORK STOPPAGE 28 Labor Unions ..........................................................................................................................................28 COVERED EXPENSES ................................................................................................28 Medical Necessity ..................................................................................................................................28 Healthcare Providers .............................................................................................................................29 Your Annual Out-of-Pocket Limit 29 MEDICAL BENEFITS ...................................................................................................29 About Your Medical Benefits .................................................................................................................29 PLAN BENEFITS 31 PREVENTIVE CARE SERVICES 31 PROFESSIONAL SERVICES 33 HOSPITAL AND SKILLED NURSING FACILITY SERVICES 34 OUTPATIENT SERVICES 34 EMERGENCY SERVICES 35 MENTAL HEALTH AND CHEMICAL DEPENDENCY SERVICES 36 Mental Health and Chemical Dependency Services 36 Medical Necessity and Appropriateness of Treatment ..........................................................................37 HOME HEALTH AND HOSPICE SERVICES 37 DURABLE MEDICAL EQUIPMENT 38 TRANSPLANT SERVICES 39 Payment of Transplant Benefits .............................................................................................................40 OTHER COVERED SERVICES, SUPPLIES, AND TREATMENTS .............................40 BENEFIT LIMITATIONS AND EXCLUSIONS ..............................................................43 Least Costly Setting for Services ...........................................................................................................43 EXCLUDED SERVICES 43 A Note About Optional Benefits 43 Experimental or Investigational Treatment ............................................................................................47 EXCLUSION PERIODS ................................................................................................50 Exclusion Period for Transplant Benefits ...............................................................................................50 CREDIT FOR PRIOR COVERAGE 50 SingleSource Self-Insured 6 Evidence of Prior Creditable Coverage .................................................................................................50 HEALTH CARE MANAGEMENT AND PREAUTHORIZATION 50 What is Health Care Management .........................................................................................................50 Case Management .................................................................................................................................51 Individual Benefits management ............................................................................................................52 HOW TO USE YOUR DENTAL PLAN 52 DENTAL PLAN BENEFITS 52 COVERED DENTAL SERVICES 53 Class I Services - Diagnostic and Preventive Treatment 53 Class II Restorative Services - Basic and Restorative Treatment ........................................................53 Class II Complicated Services -Complicated Treatment .....................................................................53 Class III Services -Major Treatment .....................................................................................................54 EXCLUDED DENTAL SERVICES 54 CLAIMS Procedures ....................................................................................................57 Questions about Your Claims ................................................................................................................57 Types of Claims .....................................................................................................................................58 How to File a Claim ................................................................................................................................58 Incomplete Claims .................................................................................................................................60 Notification of Benefit Determination .....................................................................................................60 Adverse Benefit Determination ..............................................................................................................61 Your Right to Appeal ..............................................................................................................................61 Resources For Information And Assistance ..........................................................................................64 Plan Sponsor's Discretionary Authority; Standard of Review ................................................................65 Coordination of Benefits .........................................................................................................................65 Order of Payment When Coordinating with Other Group Health Plans ................................................66 OTHER IMPORTANT PLAN PROVISIONS 67 Assignment of Benefits ..........................................................................................................................67 Proof of Loss ..........................................................................................................................................67 No Verbal Modifications of Plan Provisions ...........................................................................................67 Reimbursement to the Plan ...................................................................................................................68 Subrogation 68 Recovery of Excess Payments ..............................................................................................................69 Right To Receive and Release Necessary Information .........................................................................69 Reliance on Documents and Information ...............................................................................................69 No Waiver ..............................................................................................................................................69 Physician/Patient Relationship ..............................................................................................................70 Plan not responsible for Quality of Health Care ....................................................................................70 Plan is not a Contract of Employment ...................................................................................................70 Right to Amend or Terminate Plan ........................................................................................................70 Applicable Law .......................................................................................................................................70 PRIVACY AND CONFIDENTIALITY 70 Permitted Disclosures of Protected Health Information to the Plan Sponsor ........................................71 No Disclosure of Protected Health Information to the Plan Sponsorwithout Certification by Plan Sponsor 71 Conditions of Disclosure of Protected Health Information to the Plan Sponsor ....................................71 Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor 72 Required Separation between the Plan and the Plan Sponsor .............................................................72 DEFINITIONS 72 RIGHTS OF PLAN MEMBERS 81 SingleSource Self-Insured 7 This page left intentionally blank. SingleSource Self-Insured 8 Grandfathered Health Plan The Plan Sponsor believes this plan is a'grandfathered health plan' under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted. Being a grandfathered health plan means that your plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care Act, for example, the elimination of lifetime limits on benefits. Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be directed to the Plan Sponsor, or you may contact PacificSource at: PacificSource Health Plans PO Box 7068 Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 email: cs@pacificsource.com SingleSource Self-Insured This page left intentionally blank. SingleSource Self-Insured 2 MEDICAL BENEFIT SUMMARY POLICY INFORMATION Group Name: City of Ashland Group Number: G0032482 Plan Name: Preferred 90+200 VAR GF 0812 Provider Network: Preferred PSN EMPLOYEE ELIGIBILITY REQUIREMENTS Minimum Hour Requirement: Full Time: 40 hours, Part Time: 20-39 hours Waiting Period for New Employees: 1 st day of the month following one (1) day. A person hired on the first day of the month is eligible on the first day of the following month. ANNUAL DEDUCTIBLE $200 per person / $600 per family The deductible is an amount of covered medical expenses the member pays each benefit year before the plan's benefits begin. The deductible applies to all services and supplies except those marked with an asterisk Once a member has paid a total amount toward covered expenses during the benefit year equal to the per person amount listed above, the deductible will be satisfied for that person for the rest of that benefit year. Once any covered family members have paid a combined total toward covered expenses during the benefit year equal to the per family amount listed above, the deductible will be satisfied for all covered family members for the rest of that benefit year. Deductible expense is not applied to the out-of-pocket limit. ANNUAL OUT-OF-POCKET LIMIT Participating Providers. $700 per person / $1,400 per family Non-participating Providers ..........................................$1,700 per person / $3,400 per family Only participating provider expense applies to the participating provider out-of-pocket limit and only non- participating provider expense applies to the non-participating out-of-pocket limit. Once the participating provider out-of-pocket limit has been met, this plan will pay 100% of covered charges (after the co-payment is deducted) for participating and network not available providers for the rest of that benefit year. Once the non-participating provider out-of-pocket limit has been met, this plan will pay 100% of covered charges (after the co-payment is deducted) for non-participating providers for the rest of that benefit year. Deductibles, co-payments, benefits paid in full and non-participating provider charges in excess of the allowable fee do not accumulate toward the out-of- pocket limit. Co-payments and non-participating provider charges in excess of the allowable fee will continue to be the member's responsibility even after the out-of-pocket limit is met. ADDITIONAL ACCIDENT BENEFIT The first $1,000 of covered expenses within 90 days of an accident is covered at no charge and is not subject to the deductible. The balance is covered as shown below. The member is responsible for the above deductible and the following co-payments and co-insurance. PARTICIPATING PROVIDERS/ NON-PARTICIPATING SERVICE: NETWORK NOT AVAILABLE. PROVIDERS: PREVENTIVE CARE Well Baby/Well Child Care 10% co-insurance 30% co-insurance Routine Physicals No charge' No charge' Well Woman Visits No charge' No charge' Immunizations - 0-18 yrs No charge' No charge' Immunizations - age 19 and over 10% co-insurance 30% co-insuranoe Routine Colonoscopy 10% co-insurance 30% co-insurance PROFESSIONAL SERVICES Office and Home Visits 10% co-insurance 30% co-insurance Office Procedures and Supplies 10% co-insurance 30% co-insurance Surgery 10% co-insurance 30% co-insurance Outpatient Rehabilitation Services 10% co-insurance 10% co-insurance HOSPITAL SERVICES Inpatient Room and Board 10% co-insurance 30% co-insurance Inpatient Rehabilitation Services 10% co-insurance 30% co-insurance Skilled Nursing Facility Care 10% co-insurance 30% co-insurance SingleSource Self-Insured 3 OUTPATIENT SERVICES Outpatient Surgery/Services 10% co-insurance 30% co-insurance Advanced Diagnostic Imaging 10% co-insurance 30% co-insurance Diagnostic and Therapeutic Radiology 10% co-insurance 30% co-insurance and Lab URGENT AND EMERGENCY SERVICES Urgent Care Center Visits 10% co-insurance 30% co-insurance Emergency Room Visits $100 co-pay/visit plus $100 co-pay/visit plus 10% co-insurance A 10% co-insurance A Ambulance, Ground 10% co-insuranre 10% co-insurance Ambulance, Air 10% co-insurance 10% co-insurance MENTAL HEALTH/CHEMICAL DEPENDENCY SERVICES Office Visits 10% co-insurance 30% co-insurance Inpatient Care 10% co-insurance 30% co-insurance Residential Programs 10% co-insurance 30% co-insurance OTHER COVERED SERVICES Allergy Injections 10% co-insurance 30% co-insurance Durable Medical Equipment 10% co-insurance 30% co-insurance Home Health Care 10% co-insurance 10% co-insurance Chiropractic Plus (12 visits/benefit 10% co-insurance 10% co-insurance year) A For emergency medical conditions, non-participating providers are paid at the participating provider level. Not subject to annual deductible. Payment to providers is based on the prevailing or contracted PacificSource fee allowance for covered services. Although participating providers accept the fee allowance as payment in full, non-participating providers may not. Services of non- participating providers could result in out-of-pocket expense in addition to the cost share above. Network Not Available (NNA) payment is allowed when PacificSource has not contracted with providers in the geographical area of the member's residence or work for a specific service or supply. Payment to providers for NNA is based on the usual, customary, and reasonable charge for the geographical area in which the change is incurred. SingleSource Self-Insured 4 PRESCRIPTION BENEFIT SUMMARY Your Plan Sponsor's health plan includes coverage for prescription drugs and certain other pharmaceuticals, subject to the information below. Your prescription drug plan qualifies as creditable coverage for Medicare Part D. PRESCRIPTION DRUG OUT-OF-POCKET LIMIT $2,500 The co-payment and/or co-insurance for prescription drugs obtained from a participating pharmacy is waived at participating pharmacies during the remainder of a calendar year in which you have satisfied a Prescription Drug Out of Pocket Limit of $2,500. The limit applies to each member. Claims must be submitted by the participating pharmacy electronically. Differential between brand name and generic drugs, and drugs obtained at a non-participating pharmacy do not apply toward the limit. MEMBER COST SHARE (other than for Specialty Drugs) Each time a covered pharmaceutical is dispensed, you are responsible for the co-payment and/or co- insurance below: Tier 1: Tier 1: Tier 1: Generic Preferred Nonoreferred From a participating retail pharmacy using the PacificSource Pharmacy Program (see below): Up to a 34-day supply: $5 $25 $50 From a participating mail order service (see below): Up to a 34-day supply: $5 $25 $50 35 to 90-day supply: $10 $50 $100 From a participating retail pharmacy without using Not covered, the PacificSource Pharmacy Program, or from a except 5-day emergency supply non-participating pharmacy (see below): MEMBER COST SHARE FOR SPECIALTY DRUG Each time a covered specialty drug is dispensed, you are responsible for the co-payment and/or co- insurance below: From the participating specialty pharmacy: Up to a 30-day supply: Same as retail pharmacy co-payment above From a participating retail pharmacy, from a participating mail order service, or from a non- Not covered, participating pharmacy or pharmaceutical service except 5-day emergency supply provider: WHAT HAPPENS WHEN A BRAND NAME DRUG IS SELECTED Regardless of the reason or medical necessity, if you receive a brand name drug or if your physician prescribes a brand name drug when a generic is available, you will be responsible for the brand name drug's co-payment and/or co-insurance. USING THE PACIFICSOURCE PHARMACY PROGRAM Retail Pharmacy Network To use the PacificSource pharmacy program, you must show the pharmacy plan number on the PacificSource ID card at the participating pharmacy to receive your plan's highest benefit level. SingleSource Self-Insured 5 When obtaining prescription drugs at a participating retail pharmacy, the PacificSource pharmacy program can only be accessed through the pharmacy plan number printed on your PacificSource ID card. That plan number allows the pharmacy to collect the appropriate co-payment and/or co-insurance from you and bill PacificSource electronically for the balance. Mail Order Service This plan includes a participating mail order service for prescription drugs. Most, but not all, covered prescription drugs are available through this service. Questions about availability of specific drugs may be directed to the PacificSource Customer Service Department or to the plan's participating mail order service vendor. Forms and instructions for using the mail order service are available from PacificSource and on PacifcSource's website, PacificSource.com. Specialty Drug Program PacificSource contracts with a specialty pharmacy services provider for high-cost injectable medications and biotech drugs. A pharmacist-led CareTeam provides individual follow-up care and support to covered members with prescriptions for specialty medications by providing them strong clinical support, as well as the best drug pricing for these specific medications and biotech drugs. The CareTeam also provides comprehensive disease education and counseling, assesses patient health status, and offers a supportive environment for patient inquiries. Participating provider benefits for specialty drugs are available when you use PacificSource's specialty pharmacy services provider. Specialty drugs are not available through the participating retail pharmacy network or mail order service. More information regarding PacifcSource's exclusive specialty pharmacy services provider and health conditions and a list of drugs requiring preauthorization and/or are subject to pharmaceutical service restrictions is on PacificSource's website, PacificSource.com. OTHER COVERED PHARMACEUTICALS Supplies covered under the pharmacy plan are in place of, not in addition to, those same covered supplies under the medical plan. Member cost share for items in this section are applied on the same basis as for other prescription drugs, unless otherwise noted. Diabetic Supplies • Insulin, diabetic syringes, lancets, and test strips are available. • Glucagon recovery kits are available for the plan's preferred brand name co-payment. • Glucostix and glucose monitoring devices are not covered under this pharmacy benefit, but are covered under the medical plan's durable medical equipment benefit. Contraceptives • Oral contraceptives • Implantable contraceptives, contraceptive injections, contraceptive patches, and contraceptive rings are available. • Diaphragm or cervical caps are available. Tobacco Cessation Program specific tobacco cessation medications are covered with active participation in a plan approved tobacco cessation program (see Preventive Care in the policy's Covered Expenses section). Orally Administered Anticancer Medications Orally administered anticancer medications used to kill or slow the growth of cancerous cells are available. Co-payments for orally administered anticancer medication are applied on the same basis as for other drugs. Orally administered anticancer medications covered under the pharmacy plan are in place of, not in addition to, those same covered drugs under the medical plan. LIMITATIONS AND EXCLUSIONS • This plan only covers drugs prescribed by a licensed physician (or other licensed practitioner eligible for reimbursement under your plan) prescribing within the scope of his or her professional license, except for: - Over-the-counter drugs or other drugs that federal law does not prohibit dispensing without a SingleSource Self-Insured 6 prescription (even if a prescription is required under state law). Drugs for any condition excluded under the health plan. That includes drugs intended to promote fertility, treatments for obesity or weight loss, tobacco cessation drugs (except as specifically provided for under Other Covered Pharmaceuticals), experimental drugs, and drugs available without a prescription (even if a prescription is provided). Some specialty drugs that are not self-administered are not covered by this pharmacy benefit, but are covered under the medical plan's office supply benefit. Immunizations (although not covered by this pharmacy benefit, immunizations may be covered under the medical plan's preventive care benefit). Drugs and devices to treat erectile dysfunction. Drugs used as a preventive measure against hazards of travel. Vitamins, minerals, and dietary supplements, except for prescription prenatal vitamins and fluoride products, and for services that have a rating of 'A' or'B' from the U.S Preventive Services Task Force (USPSTF). • Certain drugs require preauthorization by PacificSource in order to be covered. An up-to-date list of drugs requiring preauthorization is available on PacificSource's website, PacificSource.com. • PacificSource may limit the dispensing quantity through the consideration of medical necessity, generally accepted standards of medical practice, and review of medical literature and governmental approval status. • Quantities for any drug filled or refilled are limited to no more than a 34-day supply when purchased at retail pharmacy or a 90-day supply when purchased through mail order pharmacy service or a 30-day supply when purchased through a specialty pharmacy. • For drugs purchased at non-participating pharmacies or at participating pharmacies without using the PacificSource pharmacy program, reimbursement is limited to an allowable fee. • Non-participating pharmacy charges are not eligible for reimbursement unless you have a true medical emergency that prevents you from using a participating pharmacy. Drugs obtained at a non-participating pharmacy due to a true medical emergency are limited to a 5 day supply. • The member cost share for prescription drugs (co-payments, co-insurance, and service charges) does not apply to the medical deductible or out-of-pocket limit of the policy. You continue to be responsible for the prescription drug co-payments and service charges regardless of whether the policy's out-of-pocket limit is satisfied. • Prescription drug benefits are subject to your plan's coordination of benefits provision. (For more information see Claims Payment - Coordination of Benefits in your Summary Plan Description.) GENERAL INFORMATION ABOUT PRESCRIPTION DRUGS A drug formulary is a list of preferred medications used to treat various medical conditions. The formulary for this plan is known as the Preferred Drug List (PDL). The drug formulary is used to help control rising healthcare costs while ensuring that you receive medications of the highest quality. It is a guide for your physician and pharmacist in selecting drug products that are safe, effective, and cost efficient. The drug formulary is made up of name brand products. A complete list of medications covered under the drug formulary is available on the For Members area on PacificSource's website, PacificSource.com. The drug formulary is developed by Caremark@ in cooperation with PacificSource. Non-preferred drugs are covered brand name medications not on the drug formulary. Generic drugs are equivalent to name brand medications. By law, they must have the same active ingredients as the brand name medication and are subject to the same standards of their brand name counterpart. Name brand medications lose their patent protection after a number of years. Any drug company can then produce the drug, and the manufacturer must pass the same strict FDA standards of quality and product safety as the original manufacturer. Generic drugs are less expensive than brand name drugs because there is more competition and there is no need to repeat costly research and development. Your pharmacist and physician are encouraged to use generic drugs whenever they are available. SingleSource Self-Insured 7 This page left intentionally blank. SingleSource Self-Insured 8 CHIROPRACTIC CARE BENEFIT SUMMARY Your plan's chiropractic care benefit allows you to receive treatment from licensed chiropractors for medically necessary diagnosis and treatment of illness or injury. Refer to the Medical Benefit Summary for your co-payment and/or co-insurance information. PacificSource contracts with a network of chiropractors, so you can reduce your out-of-pocket expense by using one of the participating providers. For a listing of participating chiropractors in your area, please refer to your plan's participating provider directory, visit our website, Pacificsource.com, or call our Customer Service Department. Covered Services • Chiropractic manipulation, massage therapy, and any laboratory services, x-rays, radiology, and durable medical equipment provided by or ordered by a chiropractor. The combined benefit for all treatments, services, and supplies provided or ordered by a chiropractor is limited to 12 visits per person in any benefit year. Excluded Services • Any service or supply excluded or not otherwise covered by the medical plan. • Drugs, homeopathic medicines, or homeopathic supplies furnished by a chiropractor. • Services of an alternative care provider for pregnancy or childbirth. SingleSource Self-Insured 9 This page left intentionally blank. SingleSource Self-Insured 10 ADDITIONAL ACCIDENT BENEFIT SUMMARY In the event of an injury caused by an accident, first dollar benefits are provided for covered expenses according to the following: Related Definitions 'Accident' means an unforeseen or unexpected event causing injury that requires medical attention. 'Injury' means bodily trauma or damage which is independent of disease or infirmity. The damage must be caused solely through external and accidental means. Injury, for the purpose of this benefit, does not include musculoskeletal sprains or strains obtained in the performance of physical activity. Covered Expenses Benefits for the following covered expenses are provided, subject to the limitations stated below: • Services or supplies provided by a physician (except orthopedic braces) • Services of a hospital • Services of a registered nurse who is unrelated to the injured person by blood or marriage • Services of a registered physical therapist • Services of a physician or a dentist for the repair of a fractured jaw or natural teeth • Diagnostic radiology and laboratory services • Transportation by local ground ambulance Limitations • The treatment must be medically necessary for the injury. • The treatment or service must be provided within 90 days after the injury occurs. • The first $1,000 of covered expense is paid at 100% and is not subject to the deductible. SingleSource Self-Insured 11 This page left intentionally blank. SingleSource Self-Insured 12 VISION BENEFIT SUMMARY Your Plan Sponsor covers vision exams, eyeglasses, and contact lenses. The following shows the vision benefits available. Benefit Period Eye Exam: Once every 12 months for covered children. Once every 24 months for covered adults. Lenses: Once every 12 months for covered children. Once every 24 months for covered adults. Frames: Once every 24 months for all covered individuals OR .Contact lenses: Once every 12 months for covered children. Once every 24 months for covered adults. Member Responsibility PARTICIPATING NON-PARTICIPATING SERVICEISUPPLY PROVIDERS: PROVIDERS: Eye Exam No charge No charge up to a $71 maximum Hardware Lenses (maximum per pair) Single Vision No charge No charge up to a $51 maximum Bifocal No charge No charge up to a $77 maximum Trifocal No charge No charge up to a $100 maximum Lenticular No charge Not covered Progressive No charge Not covered Frames No charge up to a No charge up to a $120 maximum. $66 maximum Contacts (in place of No charge up to a No charge up to a glasses) $166 maximum $166 maximum The amounts listed above are the maximum benefits available for all vision exams, lenses, and frames furnished during any benefit period when prescribed by a licensed ophthalmologist or licensed optometrist. Participating providers discount hardware services. Limitations and Exclusions The out-of-pocket expense for vision services (co-payments and service charges) does not apply to the medical plan's deductible or out-of-pocket limit. Also, the member continues to be responsible for the vision co-payments and service charges regardless of whether the medical plan's out-of-pocket limit is satisfied. Covered expenses do not include, and no benefits are payable for: • Special procedures such as orthoptics or vision training • Special supplies such as sunglasses (plain or prescription) and subnormal vision aids • Tint SingleSource Self-Insured 13 • Plano contact lenses • Anti-reflective coatings and scratch resistant coatings • Separate charges for contact lens fitting • Replacement of lost, stolen, or broken lenses or frames • Duplication of spare eyeglasses or any lenses or frames • Nonprescription lenses • Visual analysis that does not include refraction • Services or supplies not listed as covered expenses • Eye exams required as a condition of employment, or required by a labor agreement or government body • Expenses covered under any worker's compensation law • Services or supplies received before this plan's coverage begins or after it ends • Charges for services or supplies covered in whole or in part under any other medical or vision benefits provided by the Plan Sponsor • Medical or surgical treatment of the eye Important information about your vision benefits Your Plan Sponsor's health plan includes coverage for vision services, including prescription eyeglasses and contact lenses. To make the most of those benefits, it's important to keep in mind the following: • Participating Providers PacifcSource is able to add value to your vision benefits by contracting with a network of vision providers. Those providers offer vision services at discounted rates, which are passed on to you in your benefits. • Paying for Services Please remember to show your current PacificSource ID card whenever you use your plan's benefits. PacificSource's provider contracts require participating providers to bill us directly whenever you receive covered services and supplies. Providers normally call PacificSource to verify your vision benefits. Participating providers should not ask you to pay the full cost in advance. They may only collect your share of the expense up front, such as co-payments and amounts over your plan's allowances. If you are asked to pay the entire amount in advance, tell the provider you understand they have a contract with PacificSource and should bill PacificSource directly. • Sales and Special Promotions Vision retailers often use coupons and promotions to bring in new business, such as free eye exams, two-for-one glasses, or free lenses with purchase of frames. Because participating providers already discount their services through their contract with PacificSource, your plan's participating provider benefits cannot be combined with any other discounts or coupons. You can use your plan's participating provider benefits, or you can use your plan's non-participating provider benefits to take advantage of a sale or coupon offer. If you do take advantage of a special offer, the participating provider may treat you as an uninsured customer and require full payment in advance. You can then send the claim to PacificSource yourself, and PacificSource will reimburse you according to your plan's non-participating provider benefits. PacificSource hopes this information helps clarify your vision benefits. If you or your provider have any questions about your benefits, please call PacificSource Customer Service at (541) 686-1242 from Eugene-Springfield or (888) 977-9299 from other areas. SingleSource Self-Insured 14 DENTAL BENEFIT SUMMARY POLICY INFORMATION Group Name: City of Ashland Group Number: G0032482 Plan Name: Preferred Incentive Dental $1500 VAR 0711 EMPLOYEE ELIGIBILITY REQUIREMENTS Minimum Hour Requirement: Full Time: 40 hours, Part Time: 20-39 hours Waiting Period for New Employees: 1 st day of the month following one (1) day. A person hired on the first day of the month is eligible on the first day of the following month. DENTAL BENEFIT SUMMARY Subject to all the terms of this Group Dental Policy, the Plan Sponsorwill pay a dental benefit for covered dental expenses incurred by a covered person. The dental benefit is a percentage of the usual, customary, and reasonable charge for covered dental expenses incurred, subject to an annual maximum benefit, and an annual deductible, as follows: Maximum Payment The amount payable by this plan for covered services received under Class I are unlimited. The maximum amount payable by this plan for covered Class 11 and Class III services received each benefit year, or portion thereof, for each eligible patient is limited to $1,500. PLAN PAYMENT SCHEDULE Class I Services- Plan pays 70% toward covered Class I Services - Diagnostic and Preventive Treatment. Class II Restorative Services- Plan pays 70% toward covered Class 11 Restorative Services - Restorative Treatment. Class II Complicated Services- Plan pays 70% toward covered Class 11 Complicated Services - Complicated Treatment. Class III Services- Plan pays 70% toward covered Class III Services -Major Treatment. This plan pays the percentage indicated above toward Class I, 11 and III Services during the first year an individual is eligible. Payment increases 10 percent (to a maximum benefit of 100 percent) each successive benefit year for Class I, 11 and III Services if the member visits a dentist at least once during the benefit year. Payment decreases 10 percent (to a minimum benefit of the percentage stated above) each successive benefit year if the member does not visit a dentist at least once during the previous benefit year. SingleSource Self-Insured 15 This page left intentionally blank. SingleSource Self-Insured 16 USING THE PROVIDER NETWORK This section explains how your plan's benefits differ when you use participating and non-participating providers. This information is not meant to prevent you from seeking treatment from any provider if you are willing to take increased financial responsibility for the charges incurred. All healthcare providers are independent contractors. Neither your Plan Sponsor nor PacificSource can be held liable for any claim or damages for injuries you experience while receiving medical care. Preferred Provider Organization (PPO) What is a PPO A preferred provider organization (PPO) has made agreements with hospitals, physicians, practitioners, and other health care providers to discount the cost of services they provide. Who is Your PPO The Plan Sponsor has chosen PacificSource to provide PPO services for employees and eligible dependents in Oregon, Idaho, and Montana service areas and in bordering communities in southwest Washington. They also have an agreement with a nationwide provider network, The First Health@ Network. The First Health providers outside PacificSource's service area are also considered participating providers under your plan. A list of participating providers can be accessed through the PacificSource website: PacificSource.com or by calling PacificSource at (888) 977-9299. This list of participating providers is updated regularly. About Your PPO PacificSource has selected the participating physicians, practitioners, and hospitals after carefully reviewing their qualifications. Each health care provider has agreed to a contracted amount in payment for their services. Additionally, you cannot be 'balanced billed' for the difference between the PPO contracted amount and the provider's normal billed charge for a particular service. You are only responsible for the deductible, co-payment, and/or co-insurance payment shown on the Medical Benefit Summary. Enrolling in this plan does not guarantee that a particular participating providerwill remain a participating provideror that a particular participating providerwill provide members under this plan only with covered services. Members should verify a health care provider's status as a participating provider each time services are received from the health care provider. It is not safe to assume that when you are treated at a participating medical facility, all services are performed by participating providers. A list of participating providers can be accessed through the PacificSource website: PacificSource.com or by calling PacificSource at (888) 977-9299. Whenever possible, you should arrange for professional services such as surgery and anesthesiology to be provided by a participating provider. Doing so will help you maximize your benefits and limit your out-of- pocket expenses. The PPO benefits are outlined on the Medical Benefit Summary. You have a free choice of any health care provider, and the physician-patient relationship shall be maintained. Members, together with their health care provider, are ultimately responsible for determining the appropriate course of medical treatment, regardless of whether the plan will pay for all or a portion of the cost of such care. The participating providers are merely independent contractors; neither the plan, the Plan Sponsor, nor PacificSource makes any warranty as to the quality of care that may be rendered by any participating provider. You have the right to designate any primary care provider who participates in the network and who is available to accept you or your family members. For children, you may designate a pediatrician as the primary care provider. You do not need prior authorization from this plan or from any other person (including a primary care provider) in order to obtain access to obstetrical or gynecological care from a health care professional in the network who specializes in obstetrics or gynecology. The health care professional, however, may be required to comply with certain procedures, including obtaining prior authorization for certain services, following a pre-approved treatment plan, or procedures for making referrals. For a list of the participating providers and/or a list of participating health care professionals SingleSource Self-Insured 17 who specialize in obstetrics or gynecology, contact PacificSource at (888) 977-9299 or PO Box 7068, Springfield, OR 97475-0068. Non-PPO Providers When you receive services or supplies from a nonparticipating provider, your out-of-pocket expense is likely to be higher than if you had used a participating provider. Besides the non-PPO deductible, co- payment, and/or co-insurance amounts shown on the Medical Benefit Summary, you may become responsible for the provider's billed amount that exceeds the plan's allowable amount. Example of Provider Payment The following illustrates how payment could be made for a covered service billed at $120. In this example, the Medical Benefit Summary shows a participating providers co-insurance of 20 percent and a non-participating providers co-insurance of 30 percent. This is only an example; your plan's benefits may be different. Participating Non-participating Provider Provider Provider's usual billed charge $120 $120 PPG's negotiated provider discount $20 $0 Plan's allowable amount $100 $100 Percent of payment 20% 30% Plan's payment $80 $70 Patient's amount of allowable amount $20 $30 Charges above the allowable amount $0 $20 Patient's total payment to provider $20 $50 Percent of charge paid by plan 80% 58% Percent of charge paid by patient 20% 42% Allowable Amount The plan bases payment to nonparticipating providers on an allowable amount for the same services or supplies. Several sources are used to determine the allowable amount, depending on the service or supply and the geographical area where it is provided. The allowable amount may be based on data collected from the Centers for Medicare and Medicaid Services (CMS), Viant Health Payment Solutions, other nationally recognized databases, or PacificSource. NETWORK NOT AVAILABLE BENEFITS The term 'network not available' is used when a member does not have reasonable geographic access to a participating provider for a covered medical service or supply. If you live in an area without access to a participating provider for a specific service or supply, your plan's Network Not Available benefits apply. Here's how that works: • You seek treatment from a nearby non-participating provider of that service or supply. • PacificSource determines the allowable fee for that service or supply (the term 'allowable fee' is explained above under the Non-participating Providers section). • PacificSource applies the Network Not Available benefit level stated in your Medical Benefit Summary to the allowable fee to calculate covered expenses. • You are responsible for any co-payments, co-insurance, deductibles, and amounts over the allowable fee. COVERAGE WHILE TRAVELING Your plan is powered by the PacificSource Network (PSN). The PSN Network covers Oregon, Idaho, Montana, southwest Washington, and eastern Washington. When you need medical services outside of the PSN Network, you can save out-of-pocket expense by using the participating providers available through The First Health@ Network. SingleSource Self-Insured 18 Nonemergency Care While Traveling To find a participating provider outside the regions covered by the PacificSource Network, call The First Health® Network at (800) 226-5116. (The phone number is also printed on your PacificSource ID card for convenience.) Representatives are available at any time to help you find a participating physician, hospital, or other outpatient provider. Nonemergency care outside of the United States is not covered. • If a participating provider is available in your area, your plan's participating provider benefits will apply if you use a participating provider. • If a participating provider is not available in your area, your plan's Network Not Available benefits will apply. • If a participating provider is available but you choose to use a non-participating provider, your plan's non-participating provider benefits will apply. Emergency Services While Traveling In medical emergencies (see the Covered Expenses - Emergency Services section of this Summary Plan Description), your plan pays benefits at the participating provider level regardless of your location. Your covered expenses are based on PacificSource's allowable fee. If you are admitted to a hospital as an inpatient following the stabilization of your emergency condition, your physician or hospital should contact the PacificSource Health Services Department at (888) 691-8209 as soon as possible to make a benefit determination on your admission. If you are admitted to a non-participating hospital, PacificSource may require you to transfer to a participating facility once your condition is stabilized in order to continue receiving benefits at the participating provider level. FINDING PARTICIPATING PROVIDER INFORMATION You can find up-to-date participating provider information: • By asking your healthcare provider if he or she is a participating provider for your Plan Sponsor's plan. • On the PacificSource website, PacificSource.com. Simply click on 'Find a Provider' and you can easily look up participating providers or print your own customized directory. • By contacting the PacificSource Customer Service Department. PacificSource can answer your questions about specific providers. If you'd like a complete provider directory for your plan, just ask - PacificSource will be glad to mail you a directory free of charge. • By calling The First Health® Network at (800) 226-5116 if you live outside the area covered by the PacificSource Network. TERMINATION OF PROVIDER CONTRACTS PacificSource will notify you within ten days of learning of the termination of a provider contractual relationship if you have received services in the previous three months from such a provider when: • A provider terminates a contractual relationship with PacificSource in accordance with the terms and conditions of the agreement; • A provider terminates a contractual relationship with an organization under contract with PacificSource; or • PacificSource terminates a contractual relationship with an individual provider or the organization with which the provider is contracted in accordance with the terms and conditions of the agreement. For the purposes of continuity of care, PacificSource may require the provider to adhere to the medical services contract and accept the contractual reimbursement rate applicable at the time of contract termination. SingleSource Self-Insured 19 BECOMING ELIBIGLE Who Pays for Your Benefits The Plan Sponsor shares the cost of providing benefits for you and your enrolled dependents. From time to time, the Plan Sponsor may adjust the amount of contributions required for coverage. In addition, the deductibles and co-payments may also change periodically. You will be notified by your Plan Sponsor of any changes in the cost of plan coverage before they take effect. Who is Eligible Employees - You are eligible to participate in this plan if you are a regular, full-time employee of the Plan Sponsor upon the completion of the minimum number of hours and probationary waiting period set by your Plan Sponsor. Your Plan Sponsor's eligibility requirements are stated in your Medical Benefit Summary. All employees who meet those requirements are eligible for coverage. Eligibility for Medicaid or the receipt of Medicaid benefits will not be taken into account in determining eligibility. Status as an employee is determined under the employment records of the Plan Sponsor. Workers classified by the Plan Sponsor as independent contractors are not eligible for this plan under any circumstances. Retirees - You are eligible to participate in this plan if you are a retired employee of the Plan Sponsor, or a spouse of a retired employee. Eligibility for Medicaid or the receipt of Medicaid benefits will not be taken into account in determining eligibility. Dependents - While you are enrolled under this plan, the following family members, and only the following family members, are also eligible to participate in the plan: • Your legal spouse or qualified domestic partner. The Plan Sponsor may require documentation proving a legal marital relationship, an Affidavit of Domestic Partnership or a Certificate of Qualified domestic partnership. • Your, your spouse's, or your qualified domestic partner's dependent children under age 26 regardless of the child's place of residence, marital status, or financial dependence on you. • Your, your spouse's, or your qualified domestic partner's unmarried dependent children age 26 or over who are mentally or physically disabled. To qualify as dependents, they must have been continuously unable to support themselves since turning age 26 because of a mental or physical disability. PacificSource requires documentation of the disability from the child's physician, and will review the case before determining eligibility for coverage. • Your grandchildren. A child of an eligible dependent enrolled on your plan under age 19 who is unmarried, not in a domestic partnership, registered or otherwise, who is related to you by blood, marriage, or domestic partnership AND for whom you are the court appointed legal custodian or guardian with the expectation that the family member will live in your household for at least a year. • A child placed for adoption with you, your spouse, or qualified domestic partner. Placed for adoption means the assumption and retention by you, your spouse, or qualified domestic partner of a legal obligation for total or partial support of a child in anticipation of adoption or placement for adoption. Upon any termination of such legal obligations the placement for adoption shall be deemed to have terminated. • 'Dependent children' means any natural, step, or adopted children as well as any child placed for adoption with you or your domestic partner are legally obligated to support or contribute support for. It may also include grandchildren under age 19 who are unmarried and expected to live in your household for at least a year, if you are the court appointed legal custodian or guardian. No family or household members other than those listed above are eligible to enroll under your coverage. Special Rules for Eligibility - At any time, the Plan Administrator may require proof that a person qualifies or continues to qualify as a dependent as defined by this plan. SingleSource Self-Insured 20 ENROLLING DURING THE INITIAL ENROLLMENT PERIOD The 'initial enrollment period' is the 60-day period beginning on the date a person is first eligible for enrollment in this plan. Everyone who becomes eligible for coverage has an initial enrollment period. When you satisfy your Plan Sponsor's probationary waiting period at the hours required for eligibility and become eligible to enroll in this plan, you and your eligible family members must enroll within the initial enrollment period. If you miss your initial enrollment period, you may be subject to a waiting period. (For more information, see 'Special Enrollment Periods' and 'Late Enrollment' under the Enrolling After the Initial Enrollment Period section.) To enroll, you must complete and sign an enrollment application, which is available from your Plan Sponsor. The application must include complete information on yourself and your enrolling family members. Return the application to your Plan Sponsor, and your Plan Sponsorwill send it to PacificSource. Coverage for you and your enrolling family members begins on the first day of the month after you satisfy your Plan Sponsor's probationary waiting period. The probationary waiting period is stated in your Medical Benefit Summary. Coverage will only begin if Your Plan Sponsor receives your enrollment application and premium. Newborns Your, your spouse's, or your qualified domestic partner's natural born baby is eligible for enrollment under this plan during the 60-day initial enrollment period after birth. PacificSource cannot enroll the child and pay benefits until your Plan Sponsor receives an enrollment application listing the child as your dependent. A claim for maternity care is not considered notification for the purpose of enrolling a newborn child. Anytime there is a delay in providing enrollment information, your Plan Sponsor may ask for legal documentation to confirm validity. Adopted Chi/then When a child is placed in your home for adoption, the child is eligible for enrollment under this plan during the 60-day initial enrollment period after placement for adoption. 'Placement for adoption' means the assumption and retention by you, your spouse's, or your domestic partner's of a legal obligation for full or partial support and care of the child in anticipation of adoption of the child. To add the child to your coverage, you must complete and submit an enrollment application listing the child as your dependent. You may be required to submit a copy of the certificate of adoption or other legal documentation from a court or a child placement agency to complete enrollment. If additional premium is required, then the natural born or adopted child's eligibility for enrollment will end 60 days after placement if Plan Sponsor has not received an enrollment application and premium. Premium is charged from the date of placement and prorated for the first month. If no additional premium is required, then the natural born or adopted child's eligibility continues as long as you are covered. However, PacificSource cannot enroll the child and pay benefits until your Plan Sponsor receives an enrollment application listing the child as your dependent. Family Members Acquired by Marriage If you marry, you may add your new spouse and any newly eligible dependent children to your coverage during the 60-day initial enrollment period after the marriage. Your Plan Sponsor must receive your enrollment application and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the marriage. You may be required to submit a copy of your marriage certificate to complete enrollment. Family Members Acquired by Domestic Partnership If you and your same-gender domestic partner have been issued a Certificate of Qualified domestic partnership, your domestic partner and your partner's dependent children are eligible for coverage during the 60-day initial enrollment period after the registration of the domestic partnership. Your Plan Sponsor must receive your enrollment application and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the registration of the domestic partnership. You may be required to submit a copy of your Certificate of Qualified domestic partnership to complete enrollment. SingleSource Self-Insured 21 Unregistered same-gender domestic partners and their children may also become eligible for enrollment. If you and your unqualified domestic partner meet the criteria on the Affidavit of Domestic Partnership supplied by your Plan Sponsor, your domestic partner and your partner's dependent children are eligible for coverage during the 60-day initial enrollment period after the requirements of the Affidavit of Domestic Partnership are satisfied. Your Plan Sponsor must receive your enrollment application, a notarized copy of your Affidavit of Domestic Partnership, and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the Affidavit of Domestic Partnership is notarized. Family Members Placed in Your Guardianship If a court appoints you custodian or guardian of an eligible grandchild, you may add that family member to your coverage. To be eligible for coverage, the family member must be: • Unmarried; • Not in a domestic partnership, registered or otherwise; • Related to you by blood, marriage, or domestic partnership; • Under age 19; and • Expected to live in your household for at least a year. Your Plan Sponsor must receive your enrollment application and additional premium during the 60-day initial enrollment period beginning on the date of the court appointment. Coverage will then begin on the first day of the month following the date of the court order. You may be required to submit a copy of the court order to complete enrollment. Qualified Medical Child Support Orders This health plan complies with qualified medical child support orders (QMCSO) issued by a state court or state child support agency. A QMCSO is a judgment, decree, or order, including approval of a settlement agreement that provides for health benefit coverage for the child of a plan member. If a court or state agency orders coverage for your spouse or child, they may enroll in this plan within the 60-day initial enrollment period beginning on the date of the order. Coverage will become effective on the first day of the month after Plan Sponsor receives the enrollment application. You may be required to submit a copy of the QMCSO to complete enrollment. ENROLLING AFTER THE INITIAL ENROLLMENT PERIOD Returning to Work after a Layoff If you are laid off and then rehired by your Plan Sponsor within six months, you will not have to satisfy another probationary waiting period or new exclusion period. Your health coverage will resume the first of the month following the date you return to work and again meet your Plan Sponsor's minimum hour requirement. If your family members were covered before your layoff, they can resume coverage at that time as well. You must re-enroll your family members by submitting an enrollment application within the 60-day initial enrollment period following your return to work. Returning to Work aftera Leave of Absence If you return to work after a Plan Sponsor-approved leave of absence of six months or less, you will not have to satisfy another probationary waiting period. Your health coverage will resume the day you return to work and again meet your Plan Sponsor's minimum hour requirement. If your family members were covered before your leave of absence, they can resume coverage at that time as well. You must re-enroll your family members by submitting an enrollment application within the 60-day initial enrollment period following your return to work. Returning to Work after Family Medical Leave Your Plan Sponsor is probably subject to the Family Medical Leave Act (FMLA). To find out if you have rights under FMLA, ask your health plan administrator. Under FMLA, if you return to work after a SingleSource Self-Insured 22 qualifying FMLA medical leave, you will not have to satisfy another probationary waiting period or any previously satisfied exclusion period under this plan. Your health coverage will resume the day you return to work and meet your Plan Sponsor's minimum hour requirement. If your family members were covered before your leave, they can also resume coverage at that time if you re-enroll them within the 60-day initial enrollment period following your return. Special Enrollment Periods If you are eligible to decline coverage and you wish to do so, you must submit a written waiver of coverage to your Plan Sponsor. You and your family members may enroll in this plan later if you qualify under Rule #1, Rule #2, or Rule #3 below. • Special Enrollment Rule #1 - If you declined enrollment for yourself or your family members because of other health insurance coverage, you or your family members may enroll in the plan later if the other coverage ends involuntarily. 'Involuntarily' means coverage ended because continuation coverage was exhausted, employment terminated, work hours were reduced below the Plan Sponsor's minimum requirement, the other insurance plan was discontinued or the maximum lifetime benefit of the other plan was exhausted, the Plan Sponsor's premium contributions toward the other insurance plan ended, or because of death of a spouse, divorce, or legal separation. To do so, you must request enrollment within 60 days after the other health insurance coverage ends (or within 60 days after the other health insurance coverage ends if the other coverage is through Medicaid or a State Children's Health Insurance Program). Coverage will begin on the first day of the month after the other coverage ends. • Special Enrollment Rule #2 - If you acquire new dependents because of marriage, qualification of domestic partnership, birth, or placement for adoption, you may be able to enroll yourself and/or your newly acquired eligible dependents at that time. To do so, you must request enrollment within 60 days after the marriage, registration of the domestic partnership, birth, or placement for adoption. In the case of marriage or domestic partnership, coverage begins on the first day of the month after the marriage or registration of the domestic partnership. In the case of birth or placement for adoption, coverage begins on the date of birth or placement. • Special Enrollment Rule #3 - If you or your dependents become eligible for a premium assistance subsidy under Medicare or CHIP, you may be able to enroll yourself and/or your dependents at that time. To do so, you must request enrollment within 60 days of the date you and/or your dependents become eligible for such assistance. Coverage will begin on the first day of the month after becoming eligible for such assistance. Dental Enrollment Employees or their dependents who did not enroll with dental benefits when initially eligible may later enroll on the policy's anniversary date. Employees and/or dependents who enrolled with dental benefits under this policy but later terminated coverage may enroll on an anniversary date of the policy following a 24-month waiting period from the date coverage was last terminated. Late Enrollment If you did not enroll during your initial enrollment period and you do not qualify for a special enrollment period, your enrollment will be delayed until the plan's anniversary date. A'late enrollee' is an otherwise eligible employee or dependent who does not qualify for a special enrollment period explained above, and who: • Did not enroll during the 60-day initial enrollment period. or • Enrolled during the initial enrollment period but discontinued coverage later. A late enrollee may enroll by submitting an enrollment application to your Plan Sponsor during an open enrollment period designated by your Plan Sponsor-just prior to the plan's anniversary date. When you or your dependents enroll during the open enrollment period, plan coverage begins on the date Plan Sponsor receives the enrollment application or on the plan's anniversary date. You may enroll in coverage prior to an open enrollment period if one of the following exceptions are met: SingleSource Self-Insured 23 You and/or your dependent may enroll in coverage if you involuntary lose other Group Coverage or lose coverage under the Oregon Health Plan. You and/or your dependent may enroll in coverage if your hours per week are increased or your employer's contribution is increased. You and/or your dependent may also enroll if you return from a qualified FMtA leave. Member ID Card The membership card issued to you by PacificSource is for identification purposes only. Possession of a membership card confers no right to services or benefits under this plan and misuse of your membership card may be grounds for termination of your coverage under this plan. To be eligible for services or benefits under this plan, you must be eligible and enrolled in the plan and you must present the membership card to your health care provider. If you receive services or benefits for which you are not entitled to receive under the terms of this plan, you may be charged for such services or benefits at the prevailing rate. If you permit the use of your membership card by any other person, your card may be retained by this plan, and all your rights under this plan may be terminated. PLAN SELECTION PERIOD If your Plan Sponsor offers more than one benefit plan option, you may choose another plan option only upon your plan's anniversary date. You may select a different plan option by completing a selection form or application form. Coverage under the new plan option becomes effective on your plan's anniversary date. TERMINATING COVERAGE If you leave your job for any reason or your work hours are reduced below your Plan Sponsors minimum requirement, coverage for you and your enrolled family members will end. Coverage ends on the last day of the last month in which you worked full time. You may, however, be eligible to continue coverage for a limited time, please see the Continuation section of this Summary Plan Description for more information. You can voluntarily discontinue coverage for your enrolled family members at any time by completing a Termination of Dependent Coverage form and submitting it to your Plan Sponsor. Keep in mind that once coverage is discontinued, your family members may be subject to the late enrollment waiting period if they wish to re-enroll later. Divorced Spouses If you divorce, coverage for your spouse will end on the last day of the month in which the divorce decree or legal separation is final. You must notify your Plan Sponsor of the divorce or separation, and continuation coverage may be available for your spouse. If there are special child custody circumstances, please contact your Plan Sponsor. Please see the Continuation section for more information. Dependent Children When your enrolled child no longer qualifies as a dependent, coverage will end on the last day of that month. Please see the Eligibility section of this Summary Plan Description for information on when your dependent child is eligible beyond age 25. The Continuation section includes information on other coverage options for those who no longer qualify for coverage. Dissolution of Domestic Partnership If you dissolve your domestic partnership, coverage for your domestic partner and their children not related to you by birth or adoption will end on the last day of the month in which the dissolution of the domestic partnership is final. You must notify your Plan Sponsor of the dissolution of the domestic partnership. Under Oregon state continuation laws, a qualified domestic partner and their covered children may continue this policy's coverage under the same circumstances and to the same extent afforded an enrolled spouse and their enrolled children (see Oregon Continuation in the Continuation of Insurance section). Domestic partners and their covered children are not recognized as qualified beneficiaries under federal COBRA continuation laws. Domestic partners and their covered children SingleSource Self-Insured 24 may not continue this policy's coverage under COBRA independent of the employee (see COBRA Continuation in the Continuation of Insurance section). Certificates of Creditable Coverage A certificate of creditable coverage is used to verify the dates of your prior health plan coverage when you apply for coverage under a new policy. These certificates are issued by health insurers whenever a plan participant's coverage ends. After your or your dependent's coverage under this plan ends, you will receive a certificate of creditable coverage by mail. PacificSource has an automated process that generates and mails these certificates whenever coverage ends. PacificSource will send a separate certificate for any dependents with an effective or termination date that differs from yours. For questions or requests regarding certificates of creditable coverage, you are welcome to contact Membership Services Department at (541) 684-5583 or (866) 999-5583. CONTINUATION OF COVERAGE Under federal and state laws, you and your family members may have the right to continue this plan's coverage for a specified time. You and your dependents may be eligible if: • Your employment ends or you have a reduction in hours • You take a leave of absence for military service • You divorce • You die • You become eligible for Medicare benefits if it causes a loss of coverage for your dependents • Your children no longer qualify as dependents The following sections describe your rights to continuation under state and federal laws, and the requirements you must meet to enroll in continuation coverage. USERRA CONTINUATION If you take a leave of absence from your job due to military service, you have continuation rights under the Uniformed Services Employment and Re-employment Rights Act (USERRA). You and your enrolled family members may continue this plan's coverage if you, the employee, no longer qualify for coverage under the plan because of military service. Continuation coverage under USERRA is available for up to 24 months while you are on military leave. If your military service ends and you do not return to work, your eligibility for USERRA continuation coverage will end. Premium for continuation coverage is your responsibility. The following requirements apply to USERRA continuation: • Family members who were not enrolled in the group plan cannot take continuation. The only exceptions are newborn babies and newly acquired dependents not covered by another group health plan. • To apply for continuation, you must submit a completed Continuation Election Form to your Plan Sponsorwithin 60 days after the last day of coverage under the group plan. • You must pay continuation premium to your Plan Sponsor by the first of each month. Your Plan Sponsorwill include your continuation premium in the group's regular monthly payment. PacificSource cannot accept the premium directly from you. • Your Plan Sponsor must still be self-insured through PacificSource. If your Plan Sponsor discontinues this plan, you will no longer qualify for continuation. SingleSource Self-Insured 25 Surviving or Divorced Spouses and Qualified Domestic Partners If you die, divorce, or dissolve your qualified domestic partnership, and your spouse or qualified domestic partner is 55 years or older, your spouse or qualified domestic partner may be able to continue coverage until eligible for Medicare or other coverage. Dependent children are subject to the health plan's age and other eligibility requirements. Some restrictions and guidelines apply; please see your Plan Sponsorfor specific details. COBRA CONTINUATION Your Plan Sponsor is subject to the continuation of coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) as amended. To find out if you have continuation rights under COBRA, ask your health plan administrator. COBRA Eligibility To be eligible, a membermust experience a'qualifying event' which is an event that causes your regular group coverage to end and makes you eligible for continuation coverage. When the following qualifying events happen, you may continue coverage for the lengths of time shown: Qualifying Event Continuation Period Employee's termination of employment or reduction in Employee, spouse, and children may continue for up to hours 18 months' Employee's divorce or legal separation Souse and children may continue for u to 36 months Employee's eligibility for Medicare benefits if it causes a Spouse and children may continue for up to 36 months loss of coverage Employee's death Souse and children may continue for u to 36 months Child no longer qualifies as a dependent Child may continue for u to 36 months Em to er f les for Cha ter 11 bankruptcy Only applies to retirees and their covered dependents If the employee or covered dependent is determined disabled by the Social Security Administration within the first 60 days of continuation coverage, all qualified beneficiaries may continue coverage for up to an additional 11 months, for a total of up to 29 months. 2 The total maximum continuation period is 36 months, even if there is a second qualifying event. A second qualifying event might be a divorce, legal separation, death, or child no longer qualifying as a dependent after the employee's termination or reduction in hours. If your dependents were not covered prior to your qualifying event, they may enroll in the continuation coverage while you are on continuation. They will be subject to the same rules that apply to active employees, including the late enrollment waiting period. If your employment is terminated for gross misconduct, you and your dependents are not eligible for COBRA continuation. Domestic partners and their covered children may not continue this policy's coverage under COBRA independent of the employee. When Continuation Coverage Ends Your continuation coverage will end before the end of the continuation period above if any of the following occur: • Your continuation premium is not paid on time. • You become covered under another group health plan that does not exclude or limit treatment for your pre-existing conditions. • You become entitled to Medicare benefits. • Your Plan Sponsor discontinues its health plan and no longer offers a group health plan to any of its employees. • Your continuation period was extended from 18 to 29 months due to disability, and you are no longer considered disabled. SingleSource Self-Insured 26 Type of Coverage Under COBRA, you may continue any coverage you had before the qualifying event. If your Plan Sponsor provides both medical and dental coverage and you were enrolled in both, you may continue both medical and dental. If your Plan Sponsor provides only one type of coverage, or if you were enrolled in only one type of coverage, you may continue only that coverage. COBRA continuation benefits are always the same as your Plan Sponsors current benefits. Your Plan Sponsor has the right to change the benefits of its health plan or eliminate the plan entirely. If that happens, any changes to the group health plan will also apply to everyone enrolled in continuation coverage. Your Responsibilities and Deadlines You must notify your Plan Sponsor within 60 days if you divorce, or if your child no longer qualifies as a dependent. That will allow your Plan Sponsor to notify you or your dependents of your continuation rights. When your Plan Sponsor learns of your eligibility for continuation, your Plan Sponsorwill notify you of your continuation rights and provide a Continuation Election Form. You then have 60 days from that date or 60 days from the date coverage would otherwise end, whichever is later, to enroll in continuation coverage by submitting a completed Election Form to your Plan Sponsor. If continuation coverage is not elected during that 60-day period, coverage will end on the last day of the last month you were an active employee. If you do not provide these notifications within the time frames required by COBRA, Plan Sponsor's responsibility to provide coverage under the health plan will end. Continuation Premium You or your family members are responsible for the full cost of continuation coverage. The monthly premium must be paid to your Plan Sponsor. PacificSource cannot accept continuation premium directly from you. You may make your first premium payment any time within 45 days after you return your Continuation Election Form to your Plan Sponsor. After the first premium payment, each monthly payment must reach your Plan Sponsorwithin 30 days of your Plan Sponsor's premium due date. If your Plan Sponsor does not receive your continuation premium on time, continuation coverage will end. If your coverage is canceled due to a missed payment, it will not be reinstated for any reason. Premium rates are established annually and may be adjusted if the plan's benefits or costs change. Keep Your Plan Informed of Address Changes In order to protect your and your family's rights, you should keep the Plan Sponsor informed of any changes in your address and the addresses of family members. You should also keep a copy, for your records, of any notices you send to the Plan Sponsor. CONTINUATION WHEN YOU RETIRE 4 If you retire, you and your insured dependents are eligible to continue coverage subject to the following: • You must apply for continued coverage within 60 days after retirement. • You must be receiving benefits from PERS (Public Employee Retirement System) or from a similar retirement plan offered by your Plan Sponsor. • You will have the same opportunity to switch to another plan during the open enrollment period as do active employees. If the plan's benefits are changed by the policyholder, your benefits will change accordingly. • Except for newly acquired dependents due to marriage, registration of domestic partnership, birth, or adoption, only your dependents who were covered at the time of retirement may continue coverage under this provision. You may add a new spouse, domestic partner, or other newly acquired dependent after retirement if family coverage is available. A completed enrollment application must be submitted within 60 days of the date of marriage, registration of domestic partnership, birth, or adoption. SingleSource Self-Insured 27 Your continuation coverage will end when any one of the following occurs: When full premium is not paid or when your coverage is voluntarily terminated, your coverage will end on the last day of the month for which premium was paid. • When you become eligible for Medicare coverage, your coverage will end on the last day of the month preceding Medicare eligibility. When the regular group policy is terminated, your coverage will end on the date of termination. Your dependent's continuation coverage will end when any one of the following occurs: • When full premium for the dependent is not paid or when the dependent's coverage is voluntarily terminated by you or your dependent, coverage will end on the last day of the month for which premium was paid. • When your dependent becomes eligible for Medicare coverage, your dependent's coverage will end on the last day of the month preceding Medicare eligibility. • When you die, divorce, or dissolve your domestic partnership, your dependent's coverage will end on the last day of the month following the death, divorce, or dissolution of the domestic partnership. • When your dependent is otherwise no longer considered a dependent under the group plan, his or her coverage will end on the last day of the month of their eligibility. Continuation of coverage may be available under COBRA continuation (see Continuation of Coverage provisions). • When the regular group policy is terminated, your dependent's coverage will end on the date of termination. WORK STOPPAGE Labor Unions If you are a union member, you have certain continuation rights in the event of a labor strike. Your union is responsible for collecting your premium and can answer questions about coverage during the strike. EXTENSION OF BENEFITS If you are on a Plan Sponsor-approved non-FMLA leave of absence, you may continue coverage under active status for up to three months by self pay to the Plan Sponsor. Absences extending beyond three months will be subject to the Continuation of Coverage provisions of this plan. COVERED EXPENSES This plan provides comprehensive medical coverage when care is medically necessary to treat an illness or injury. Be careful -just because a treatment is prescribed by a healthcare professional does not mean it is medically necessary under the terms of the plan. Also remember that just because a service or supply is a covered benefit under this plan does not necessarily mean all billed charges will be paid. Some medically necessary services and supplies may be excluded from coverage under this plan. Be sure you read and understand the Benefit Limitations and Exclusions section of this book, including the section on Preauthorization. If you ever have a question about your plan benefits, contact the PacificSource Customer Service Department. Medical Necessity Except for specified Preventive Care services, the benefits of this health plan are paid only toward the covered expense of medically necessary diagnosis or treatment of illness or injury. This is true even though the service or supply is not specifically excluded. All treatment is subject to review for medical necessity. Review of treatment may involve prior approval, concurrent review of the continuation of treatment, post-treatment review or any combination of these. For additional information, see 'medically necessary' in the Definitions section of this Summary Plan Description. SingleSource Self-Insured 28 Be careful. Your healthcare provider could prescribe services or supplies that are not covered under this plan. Also, just because a service or supply is a covered benefit does not mean all related charges will be paid. Healthcare Providers This plan provides benefits only for covered expenses and supplies rendered a physician (M.D. or O.D.), practitioner, nurse, hospital or specialized treatment facility, durable medical equipment supplier, or other licensed medical provider as specifically stated in this Summary Plan Description. The services or supplies provided by individuals or companies that are not specified as eligible practitioners are not eligible for reimbursement under the benefits of this plan. For additional information, see 'practitioner', 'specialized treatment facility', and 'durable medical equipment supplier' in the Definitions section of this Summary Plan Description. Your Annual Deductible Deductible Carryover. The deductible must be satisfied only once in any benefit year, even though there may be several conditions treated. Covered expenses incurred during the last three (3) months of the previous benefit year will be applied to the subsequent year's benefit year deductible subject to the following: • The covered expenses were applied to the deductible; • The covered expenses were incurred during the last three (3) months of the year; and • The prior year's deductible was not satisfied. Final determination of which expenses apply to the deductible will be based on the order in which charges are incurred, even if bills for charges are not received in that order. Your Annual Out-of-Pocket Limit This plan has an out-of-pocket limit provision to protect you from excessive medical expenses. The Medical Benefit Summary shows your plan's annual out-of-pocket limits for participating and/or nonparticipating providers. If you incur covered expenses over those amounts, this plan will pay 100 percent of eligible charges, subject to the allowable fee. Your expenses for the following do not count toward the annual out-of-pocket limit: • Charges applied to deductible, if applicable to your plan • Co-payments, if applicable to your plan • Prescription drugs • Charges over the allowable fee for services of non-participating providers • Incurred charges that exceed amounts allowed under this plan Charges over the allowable fee for services of non-participating providers, and incurred charges that exceed amounts allowed under this plan, and co-payments will continue to be your responsibility even after the out-of-pocket or stop-loss limit is reached. Prescription drug benefits are not affected by the out-of-pocket or stop-loss limit. You will still be responsible for that co-payment or co-insurance payment even after the out-of-pocket or stop-loss limit is reached. MEDICAL BENEFITS About Your Medical Benefits All benefits provided under this plan must satisfy some basic conditions. The following conditions are commonly included in health benefit plans but are often overlooked or misunderstood. SingleSource Self-Insured 29 Medical Necessity - The plan provides benefits only for covered services and supplies that are medically necessary for the treatment of a covered illness or injury. Be careful-just because a treatment is prescribed by a healthcare professional does not necessarily mean it is medically necessary as defined by the plan. And, some medically necessary services and supplies may be excluded from coverage. Also, the treatment must not be experimental andlor investigational. Allowable Fees - The plan provides benefits only for covered expenses that are equal to or less than the allowable amount, as defined by the plan, in the geographic area where services or supplies are provided. Any amounts that exceed the allowable amount are not recognized by the plan for any purpose. Health Care Provider - The plan provides benefits only for covered expenses and supplies rendered by a physician, practitioner, nurse, hospital or specialized treatment facility, durable medical equipment supplier, or other licensed medical provider as specifically stated in this plan summary. The services or supplies provided by individuals or companies that are not specified as eligible practitioners are not eligible for reimbursement under the benefits of this plan. For additional information, see practitioner, specialized treatment facility, and durable medical equipment in the Definitions section of this document. Custodial Care Providers - The plan does not provide benefits for services and supplies that are furnished primarily to assist an individual in the activities of daily living. Activities of daily living include .such things as bathing, feeding, administration of oral medications, academic, social, or behavior skills training, and other services that can be provided by persons without the training of a health care practitioner. Benefit Year-The word year, as used in this document, refers to the benefit year, which is the 12- month period beginning January 1 and ending December 31. Unless otherwise specified, all annual benefit maximums and deductibles accumulate during the benefit year. Deductibles -A deductible is the amount of covered expenses you must pay during each year before the plan will consider expenses for reimbursement. The individual deductible applies separately to each covered person. The family deductible applies collectively to all covered persons in the same family. When the family deductible is satisfied, no further deductible will be applied for any covered family member during the remainder of the year. The annual individual and family deductible amounts are shown on the Medical Benefit Summary. Benefit Percentage Payable - Benefit percentage payable represents the portion of covered expenses paid by the plan after you have satisfied any applicable deductible. These percentages apply only to covered expenses which do not exceed the allowable amount. You are responsible for all remaining covered and non-covered expenses, including any amount that exceeds the allowable amount for covered services. The benefit percentages payable are shown on the Medical Benefit Summary. Co-payments - Co-payments are the first-dollar amounts you must pay for certain covered services, which are usually paid at the time the service is performed (i.e. physician office visits or emergency room visits). These co-payments do not apply to your annual deductible or out-of-pocket maximum, unless otherwise specified on the Medical Benefit Summary. The co-payment amounts are shown on the Medical Benefit Summary. Out-Of-Pocket Maximum(s) - An out-of-pocket maximum is the maximum amount of covered expenses you must pay during a year, before the plan's benefit percentage payable increases. The individual out-of-pocket maximum applies separately to each covered person. When a covered person reaches the annual out-of-pocket maximum, the plan will pay 100% of additional covered expenses for that individual during.the remainder of that year, subject to the lifetime maximum amount, if applicable. However, expenses for services which do not apply to the out-of-pocket maximum will never be paid at 100%. The annual individual and family out-of-pocket maximum amounts are shown on the Medical Benefit Summary. Benefit Maximums - Total plan payments for each covered person are limited to certain maximum benefit amounts. A benefit maximum can apply to specific benefit categories or to all benefits. A benefit maximum amount may also apply to a specific time period, such as annual. SingleSource Self-Insured 30 \I Least Costly Setting For Services - Benefits of the plan provide for reimbursement of covered . , services performed in the least costly setting where services can,besafely provided. If a procedure can be done safely in an outpatient setting but is performed in a hospital inpatient setting, this plan will only pay what it would have paid for the procedure on an outpatient basis: If services are performed in.an inappropriate setting, your benefits may be reduced. PLAN BENEFITS This plan provides benefits for the following services and supplies as outlined on your Medical Benefit Summary. These services and supplies may require you to satisfy a deductible, make a co-payment, or both, and they may be subject to additional limitations or maximum dollar amounts. For a medical expense to be eligible for payment, you must be covered under this plan on the date the expense is incurred. Please refer to your Medical Benefit Summary and the Benefit Limitations and Exclusions section of this Summary Plan Description for more information. Accident SeneNt In the event of an injury caused by an accident the plan benefit will be as follows: The first $1,000 of covered expenses within 90 days of an accident is covered at no charge and is not subject to the deductible. The balance is covered as stated in your Medical Benefit Summary for covered expense. 'Accident' means an unforeseen or unexpected event causing injury which requires medical attention. 'Injury' means bodily trauma or damages which is independent of disease or infirmity. The damage must be caused solely through external and accidental means. For the purpose of this benefit, injury does not include musculoskeletal sprains or strains obtained in the performance of physical activity. PREVENTIVE CARE SERVICES This plan covers the following preventive care services when provided by a physician, physician assistant, or nurse practitioner: • Routine physicals for members age 22 and older according to the following schedule: Ages 22 and over One exam every benefit year Only laboratory work tests and other diagnostic testing procedures related to the routine, physical exam are covered by this benefit. Any laboratory tests and other diagnostic testing procedures ordered during, but not related to, a routine physical examination are not covered by this preventative care benefit. Please see Outpatient Services in this section. • Well woman visits, including the following: One routine gynecological exam each benefit year for women 18 and over. Exams may include Pap smear, pelvic exam, breast exam, blood pressure check, and weight check. Exams may also include an annual mammogram for women over the age of 40, once between the ages of 35-40 unless medically necessary, for the purpose of early detection. Covered lab services are limited to occult blood, urinalysis, and complete blood count. Routine preventive mammograms for women as recommended. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit . Summary for'Preventive Care - Well Woman Visits' applies to mammograms that are considered 'routine' according to the guidelines of the U.S. Preventive Services Task Force. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for 'Outpatient Services - Diagnostic and Therapeutic Radiology and Lab' applies to diagnostic mammograms related to the ongoing evaluation or treatment of a medical condition. Pelvic exams and Pap smear exams at any time upon referral of a women's healthcare provider; and pelvic exams and Pap smear exams annually for women 18 to 64 years of age with or without a referral from a women's healthcare provider. SingleSource Self-Insured 31 Breast exams annually for women 18 years of age or older or at anytime when recommended by a women's healthcare provider for the purpose of checking for lumps and other changes for early detection and prevention of breast cancer. • Colorectal cancer screening exams and lab work including the following: - A fecal occult blood test once per benefit year A flexible sigmoidoscopy every five benefit years A colonoscopy for age 50+ every ten benefit years o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for'Preventive Care - Routine Colonoscopy' applies to colonoscopies that are considered 'routine' according to the guidelines of the U.S. Preventive Services Task Force. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for 'Professional Services - Surgery' and for'Outpatient Services - Outpatient Surgery/Services' apply to colonoscopies related to ongoing evaluation or treatment of a medical condition. A double contrast barium enema every five benefit years Prostate cancer screening, every two benefit years. Exams may include a digital rectal examination and a prostate-specific antigen test. Screenings apply to outpatient surgery/services benefit regardless of whether they are preventive or diagnostic. Well baby/well child care exams for members age 21 and younger according to the following schedule: - At birth: One standard in-hospital exam - Ages 0 - 2: 12 additional exams during first 36 months of life - Ages 3 - 21: One exam per benefit year Newborn circumcision is a covered benefit even if performed several days after birth. Only laboratory tests and other diagnostic testing procedures related to a well baby/child care exam are covered by this plan. Any laboratory tests and other diagnostic testing procedures ordered during, but not related to, a well baby/child care exam are not covered by this preventative care benefit. Please see Outpatient Services in this section. • Standard age-appropriated childhood and adult immunizations for primary prevention of infectious diseases as recommended by and adopted the Centers for Disease Control and Prevention, American Academy of Pediatrics, American Academy of Family Physicians, or similar standard setting body. Benefits do not include immunizations for more elective, investigative, unproven; or discretionary reasons (e.g. travel). Covered immunizations include, but may not be limited to the following: Diphtheria, pertussis, and tetanus (DPT) vaccines, given separately or together Hemophilus influenza B vaccine Hepatitis A vaccine Hepatitis B vaccine Human papillomavirus (HPV) vaccine - Influenza vaccine - Measles, mumps, and rubella (MMR) vaccines, given separately or together - Meningococcal (meningitis) vaccine - Pneumococcal vaccine - Polio vaccine Varicella (chicken pox) vaccine SingleSource Self-Insured 32 • Tobacco use cessation program services are covered only when provided by a PacificSource approved program. Approved programs are covered at 100% of the cost up to a maximum lifetime benefit of two quit attempts. Approved programs are limited to members age 15 or older. Specific nicotine replacement therapy will only be covered according to the program's description. If this policy includes benefits for prescription drugs, tobacco use cessation related medication prescribed in conjunction with an approved tobacco use cessation program will be covered to the same extent this policy covers other prescription medications. PROFESSIONAL SERVICES This plan covers the following professional services when medically necessary: • Services of a physician (M.D. or D.O.) for diagnosis or treatment of illness or injury • Services of a licensed physician assistant under the supervision of a physician • Services of a certified surgical assistant, surgical technician, or registered nurse (R.N.) when providing medically necessary services as a surgical first assistant during a covered surgery • Services of a nurse practitioner, including certified registered nurse anesthetist (C.R.N.A.) and certified nurse midwife (C.N.M.), for medically necessary diagnosis or treatment of illness or injury • Urgent care services provided by a physician. Urgent care is unscheduled medical care for an illness, injury, or disease that a prudent lay person would consider not life-threatening and treatable at urgent care. Examples of urgent care situations include sprains, cuts, and illnesses that do not require immediate medical attention in order to prevent seriously damaging the health of the person. • Outpatient rehabilitative services provided by a licensed physical therapist, occupational therapist, speech language pathologist, physician, or other practitioner licensed to provide physical, occupational, or speech therapy. Services must be prescribed in writing by a licensed physician, dentist, podiatrist, nurse practitioner, or physician assistant. The prescription must include site, modality, duration, and frequency of treatment. Total covered expenses for outpatient rehabilitative services is limited to a combined maximum of 30 visits per benefit year subject to preauthorization and concurrent review by PacificSource for medical necessity. Only treatment of neurologic conditions (e.g. stroke, spinal cord injury, head injury, pediatric neurodevelopmental problems, and other problems associated with pervasive developmental disorders for which rehabilitative services would be appropriate for children under 18 years of age) may be considered for additional benefits, not to exceed 30 visits per condition, when criteria for supplemental services are met. • Services for speech therapy will only be allowed when needed to correct stuttering, hearing loss, peripheral speech mechanism problems, and deficits due to neurological disease or injury. Speech and/or cognitive therapy for acute illnesses and injuries are covered up to one year post injury when the services do not duplicate those provided by other eligible providers, including occupational therapists or neuropsychologists. • Outpatient pulmonary rehabilitation programs are covered when prescribed by a physician for patients with severe chronic lung disease that interferes with normal daily activities despite optimal medication management. • For related provisions, see 'motion analysis', 'vocational rehabilitation', and 'speech therapy' under 'Excluded Services - Types of Treatments' in the Benefit Limitations and Exclusions section of this Summary Plan Description. • Services of a physician or a licensed certified nurse midwife for pregnancy. Services are subject to the same payment amounts, conditions, and limitations that apply to similar expenses for illness, except that pregnancy is not considered a pre-existing condition. Please contact the PacificSource Customer Service Department as soon as you learn of your pregnancy. PacificSource's staff will explain your plan's maternity benefits and help you enroll in PacificSource's free prenatal care program. • Routine nursery care of a newborn while the mother is hospitalized and eligible for pregnancy- related benefits under this plan if the newborn is also eligible and enrolled in this plan. • Services of a licensed audiologist for medically necessary audiological (hearing) tests. SingleSource Self-Insured 33 • Services of a dentist or physician to treat injury of the jaw or natural teeth. Services must be provided within 18 months of the injury. Except for the initial examination, services for treatment of an injury to the jaw or natural teeth require preauthorization to be covered. • Services of a dentist or physician for orthognathic (jaw) surgery as follows: - When medically necessary to repair an accidental injury. Services must be provided within one year after the accident. - For removal of a malignancy, including reconstruction of the jaw within one year after that surgery • Services of a board-certified or board-eligible genetic counselor when referred by a physician or nurse practitioner for evaluation of genetic disease • Medically necessary telemedical health services for health services covered by this plan when provided in person by a healthcare professional when the telemedical health service does not duplicate or supplant a health service that is available to the patient in person. The location of the patient receiving telemedical health services may include, but is not limited to: hospital; rural health clinic; federally qualified health center; physician's office; community mental health center; skilled nursing facility; renal dialysis center; or site where public health services are provided. Coverage of telemedical health services are subject to the same deductible, co-payment, or co-insurance requirements that apply to comparable health services provided in person. HOSPITAL AND SKILLED NURSING FACILITY SERVICES This plan covers medically necessary hospital inpatient services. Charges for a hospital room are covered up to the hospital's semi-private room rate (or private room rate, if the hospital does not offer semi-private rooms). Charges for a private room are covered if the attending physician orders hospitalization in an intensive care unit, coronary care unit, or private room for medically necessary isolation. Coverage includes eligible services provided by a hospital owned or operated by the state of Oregon, or any state approved mental health and developmental disabilities program. In addition to the hospital room, covered inpatient hospital services may include (but are not limited to): • Cardiac care unit • Operating room • Anesthesia and post-anesthesia recovery • Respiratory care • Inpatient medications • Lab and radiology services • Dressings, equipment, and other necessary supplies The plan does not cover charges for rental of telephones, radios, or televisions, or for guest meals or other personal items. Services of a skilled nursing facility and convalescent homes are covered for up to 120 days per benefit year when preauthorized by PacificSource. Services must be medically necessary. Confinement for custodial care is not covered. Inpatient rehabilitative services are covered up to a maximum of 50 days of rehabilitative care per benefit year, except that treatment for head or spinal cord injuries is covered for up to 60 days per benefit year. Recreation therapy is only covered as part of an inpatient rehabilitation admission. Services must be preauthorized by PacificSource OUTPATIENT SERVICES This plan covers the following outpatient care services: • Advanced diagnostic imaging procedures that are medically necessary for the diagnosis of illness or injury. For purposes of this benefit, advanced diagnostic imaging procedures include CT scans, MRIs, PET scans, CATH labs and nuclear cardiology studies. When services are provided SingleSource Self-Insured 34 as part of a covered emergency room visit, your plan's emergency room benefit applies. In all other situations and settings, benefits are subject to the deductibles, co-payments, and/or co-insurance stated in your Medical Benefit Summary for Outpatient Services - Advanced Diagnostic Imaging. • Diagnostic radiology and laboratory procedures provided or ordered by a physician, nurse practitioner, or physician assistant. These services may be performed or provided by laboratories, radiology facilities, hospitals, and physicians, including services in conjunction with office visits. • Benefits for members who are receiving services for end-stage renal disease (ESRD), who are eligible for Medicare, are limited to 125% of the current Medicare allowable amount for participating and nonparticipating ESRD service providers. Benefits will continue to be paid at the cost share level applied to other benefits in the same category for members who are not eligible for Medicare. PacificSource will contact members when the first ESRD preauthorization request is received to assist the member in understanding their out-of-pocket expenses and care plan. • Emergency room services. The emergency room co-payment stated in your Medical Benefit Summary covers medical screening and any diagnostic tests needed for emergency care, such as radiology, laboratory work, CT scans, and MRIs. The co-payment does not cover further treatment provided on referral from the emergency room. In true medical emergencies, non-participating providers are paid at the participating provider level. Emergency room charges for services, supplies, or conditions excluded from coverage under this plan are not eligible for payment. Please see the Benefit Limitations and Exclusions section of this Summary Plan Description. • Surgery and other outpatient services. Benefits are based on the setting where services are performed. - For surgeries or outpatient services performed in a physician's office, the benefit stated in your Medical Benefit Summary for Professional Services - Office Procedures and Supplies applies. - For surgeries or outpatient services performed in an ambulatory surgical center or outpatient hospital setting, both the benefits stated in your Medical Benefit Summary for Professional Services - Surgery and the Outpatient Services -Outpatient Surgery/Services apply. • Therapeutic radiology services, chemotherapy, and renal dialysis provided or ordered by a physician. Covered services include a prescribed, orally administered anticancer medication used to kill or slow the growth of cancerous cells. • Other medically necessary diagnostic services provided in a hospital or outpatient setting, including testing or observation to diagnose the extent of a medical condition. EMERGENCY SERVICES In a true medical emergency, this plan covers services and supplies necessary to determine the nature and extent of the emergency condition and to stabilize the patient. An emergency medical condition is an injury or sudden illness, including severe pain, so severe that a prudent layperson with an average knowledge of health and medicine would expect that failure to receive immediate medical attention would risk seriously damaging the health of a person or fetus in the case of a pregnant woman. Examples of emergency medical conditions include (but are not limited to): • Unusual or heavy bleeding • Sudden abdominal or chest pains • Suspected heart attacks • Major traumatic injuries • Serious burns • Poisoning • Unconsciousness • Convulsions or seizures SingleSource Self-Insured 35 • Difficulty breathing • Sudden fevers If you need immediate assistance for a medical emergency, call 911. If you have an emergency medical condition, you should go directly to the nearest emergency room or appropriate facility. Care for a medical emergency is covered at the participating provider percentage stated in your Medical Benefit Summary even if you are treated at a non-participating hospital. If you are admitted to a non-participating hospital after your emergency condition is stabilized, your Plan Sponsor may require you to transfer to a participating facility in order to continue receiving benefits at the participating provider level. Maternity Services Maternity means, in any one pregnancy, all prenatal services including complications and miscarriage, delivery, postnatal services provided within six months of delivery, and routine nursery care of a newborn child. Maternity services are covered subject to the deductible, co-payments, and/or co- insurance stated in your Medical Benefit Summary regardless of marital status. • Services of a physician or a licensed certified nurse midwife for pregnancy. Services are subject to the same payment amounts, conditions, and limitations that apply to similar expenses for illness. • Please contact the PacificSource Customer Service Department as soon as you learn of your pregnancy. PacificSource's staff will explain your plan's maternity benefits and help you enroll in PacificSource's free prenatal care program. • This plan provides routine nursery care of a newborn while the mother is hospitalized and eligible for pregnancy-related benefits under this plan if the newborn is also eligible and enrolled in this plan, regardless of marital status. Special Information about Childbirth- This plan covers hospital inpatient services for childbirth according to the Newborns' and Mothers' Health Protection Act of 1996. This plan does not restrict the length of stay for the mother or newborn child to less than 48 hours after vaginal delivery, or to less than 96 hours after Cesarean section delivery. Your provider is allowed to discharge you or your newborn sooner than that, but only if you both agree. For childbirth, your provider does not need to preauthorize your hospital stay with PacificSource. MENTAL HEALTH AND CHEMICAL DEPENDENCY SERVICES This plan covers medically necessary crisis intervention, diagnosis, and treatment of mental health conditions and chemical dependency. Refer to the Benefit Limitations and Exclusions section of this Summary Plan Description for more information on services not covered by your plan. Mental Health and Chemical Dependency Services It is the intent of this plan to comply with all existing regulations of Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). If for some reason the information presented in the plan differs from the actual regulations of the MHPAEA, the plan reserves the right to administer the plan in accordance with such actual regulations. Providers Eligible for Reimbursement A mental and/or chemical healthcare provider (see Definitions section of this Summary Plan Description) is eligible for reimbursement if: • The mental and/or chemical healthcare provider is approved by the Oregon Department of Human Services; • The mental and/or chemical healthcare provider is accredited for the particular level of care for which reimbursement is being requested by the Oregon Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities, or SingleSource Self-Insured 36 • The patient is staying overnight at the mental and/or chemical healthcare facility (see Definitions section of this Summary Plan Description) and is involved in a structured program at least eight hours per day, five days per week; or • The mental and/or chemical healthcare provider is providing a covered benefit under this policy; and Eligible mental and/or chemical healthcare providers are: • A program licensed, approved, established, maintained, contracted with, or operated by the Addictions and Mental Health Division of the Oregon Health Authority; • A medical or osteopathic physician licensed by the State Board of Medical Examiners, • A psychologist (Ph.D.) licensed by the State Board of Psychologists' Examiners; • A nurse practitioner registered by the State Board of Nursing; • A clinical social worker (L.C.S.W.) licensed by the State Board of Clinical Social Workers; • A Licensed Professional Counselor (L.P.C) licensed by the State Board of Licensed Professional Counselors and Therapists; • A Licensed Marriage and Family Therapist (L.M.F.T) licensed by the State Board of Licensed Professional Counselors and Therapists; and • A hospital or other healthcare facility licensed by the Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities for inpatient or residential care and treatment of mental health conditions and/or chemical dependency. Medical Necessity and Appropriateness of Treatment • As with all medical treatment, mental health and chemical dependency treatment is subject to review for medical necessity and/or appropriateness. Review of treatment may involve pre-service review, concurrent review of the continuation of treatment, post-treatment review, or a combination of these. PacificSource will notify the patient and patient's provider when a treatment review is necessary to make a determination of medical necessity. • A second opinion may be required for a medical necessity determination. PacificSource will notify the patient when this requirement is applicable. • PacificSource must be notified of an emergency admission within two business days. • Medication management by an M.D. (such as a psychiatrist) does not require review. • Treatment of substance abuse and related disorders is subject to placement criteria established by the American Society of Addiction Medicine. Mental Health Parity and Addiction Equity Act of 2008 This group health plan complies with all federal laws and regulations related to the Mental Health Parity and Addiction Equity Act of 2008. HOME HEALTH AND HOSPICE SERVICES • This plan covers home health services up to 180 visits per benefit year when preauthorized by PacificSource. Covered services include skilled nursing by a R.N. or L.P.N.; physical, occupational, and speech therapy; and medical social work services provided by a licensed home health agency. Private duty nursing is not covered. • Home infusion services are covered when preauthorized by PacificSource. This benefit covers parenteral nutrition, medications, and biologicals (other than immunizations) that cannot be self- administered. Benefits are paid at the percentage stated in your Medical Benefit Summary for home health care. • This plan covers hospice services when preauthorized by PacificSource. Hospice services are intended to meet the physical, emotional, and spiritual needs of the patient and family during the final stages of illness and dying, while maintaining the patient in the home setting. Services are intended to supplement the efforts of an unpaid caregiver. Hospice benefits do not cover services of a primary caregiver such as a relative or friend, or private duty nursing. PacificSource uses the following criteria to determine eligibility for hospice benefits: SingleSource Self-Insured 37 - The member's physician must certify that the member is terminally ill with a life expectancy of less than six months, - The member must be living at home, - A non-salaried primary caregiver must be available and willing to provide custodial care to the member on a daily basis; and - The member must not be undergoing treatment of the terminal illness other than for direct control of adverse symptoms. Only the following hospice services are covered: - Home nursing visits. - Home health aides when necessary to assist in personal care. - Home visits by a medical social worker. - Home visits by the hospice physician. - Prescription medications for the relief of symptoms manifested by the terminal illness. - Medically necessary physical, occupational, and speech therapy provided in the home. - Home infusion therapy. - Durable medical equipment, oxygen, and medical supplies. - Respite care provided in a nursing facility to provide relief for the primary caregiver, subject to a maximum of five consecutive days and to a lifetime maximum benefit of 30 days. A member must be enrolled in a hospice program to be eligible for respite care benefits. - Inpatient hospice care when provided by a Medicare-certified or state-certified program when admission to an acute care hospital would otherwise be medically necessary. - Pastoral care and bereavement services. The member retains the right to all other services provided under this contract, including active treatment of non-terminal illnesses, except for services of another provider that duplicate the services of the hospice team. DURABLE MEDICAL EQUIPMENT • This plan covers prosthetic and orthotic devices that are medically necessary to restore or maintain the ability to complete activities of daily living or essential job-related activities and that are not solely for comfort or convenience. Benefits include coverage of all services and supplies medically necessary for the effective use of a prosthetic or orthotic device, including formulating its design, fabrication, material and component selection, measurements, fittings, static and dynamic alignments, and instructing the patient in the use of the device. Benefits also include coverage for any repair or replacement of a prosthetic or orthotic device that is determined medically necessary to restore or maintain the ability to complete activities of daily living or essential job-related activities and that is not solely for comfort or convenience. • This plan covers durable medical equipment prescribed exclusively to treat medical conditions. Covered equipment includes crutches, wheelchairs, orthopedic braces, home glucose meters, equipment for administering oxygen, and non-power assisted prosthetic limbs and eyes. Durable medical equipment must be prescribed by a licensed M.D., D.O., N.P., P.A., D.D.S., D.M.D., or D.P.M. to be covered. This plan does not cover equipment commonly used for nonmedical purposes, for physical or occupational therapy, or prescribed primarily for comfort. Please see 'Excluded Services - Equipment and Devices' in the Benefit Limitations and Exclusions section for information on items not covered. The following limitations apply to durable medical equipment: - This benefit covers the cost of either purchase or rental of the equipment for the period needed, whichever is less. Repair or replacement of equipment is also covered when necessary, subject to all conditions and limitations of the plan. If the cost of the purchase, rental, repair, or replacement is over $800, preauthorization by PacificSource is required. - Only expenses for durable medical equipment, or prosthetic and orthotic devices that are provided by a PacificSource contracted provider or a provider that satisfies the criteria of the Medicare fee schedule for Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, Supplies (DMEPOS) and Other Items and Services Summary Plan Description SingleSource Self-Insured 38 are eligible for reimbursement. Mail order or Internet/Web based providers are not eligible providers. Purchase, rental, repair, lease, or replacement of a power-assisted wheelchair (including batteries and other accessories) requires preauthorization by PacificSource and is payable only in lieu of benefits for a manual wheelchair. The durable medical equipment benefit also covers lenses to correct a specific vision defect resulting from a severe medical or surgical problem, such as stroke, neurological disease, trauma, or eye surgery other than refraction procedures. Coverage is subject to the following limitations: o The medical or surgical problem must cause visual impairment or disability due to loss of binocular vision or visual field defects (not merely a refractive error or astigmatism) that requires lenses to restore some normalcy to vision. o The maximum allowance for glasses (lenses and frames), or contact lenses in lieu of glasses, is limited to $200 per initial case. 'Initial case' is defined as the first time surgery or treatment is performed on either eye. Other policy limitations, such as exclusions for extra lenses, other hardware, tinting of lenses, eye exercises, or vision therapy, also apply. o Benefits for subsequent medically necessary vision corrections to either eye (including an eye not previously treated) are limited to the cost of lenses only. Reimbursement is subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment and is in lieu of, and not in addition to benefits payable under any vision endorsement that may be added to this plan. The durable medical equipment benefit also covers hearing aids for members under 18 years of age and younger, or 25 years of age and younger if the member is enrolled in a secondary school or an accredited educational institution. Coverage is limited to a maximum benefit of $4,000 every 48 months. The benefit amount may be adjusted on January 1 of each year to reflect the U.S City Average Consumer Price Index. Medically necessary treatment for sleep apnea and other sleeping disorders is covered when preauthorized by PacificSource. Coverage of oral devices includes charges for consultation, fitting, adjustment, follow-up care, and the appliance. The appliance must be prescribed by a physician specializing in evaluation and treatment of obstructive sleep apnea, and the condition must meet criteria for obstructive sleep apnea. Wigs following chemotherapy or radiation therapy are covered up to a maximum benefit of $150 per benefit year. Breastfeeding pumps, manual and electric, are covered at no cost per pregnancy when purchased or rented from a licensed provider, or purchased from a retail outlet. Hospital- grade breast pumps are excluded under preventive care and regular benefits. TRANSPLANT SERVICES This plan covers certain medically necessary organ and tissue transplants. It also covers the cost of acquiring organs or tissues needed for covered transplants and limited travel expenses for the patient, subject to certain limitations. All pretransplant evaluations, services, treatments, and supplies for transplant procedures require preauthorization by PacificSource. You must have been covered under this plan for at least 24 consecutive months or since birth to be eligible for transplant benefits, including benefits for transplantation evaluation. See Exclusion Periods - Transplants in the Benefit Limitations and Exclusions section of this Summary Plan Description for details. This plan covers the following medically necessary organ and tissue transplants: • Kidney • Kidney - Pancreas SingleSource Self-Insured 39 • Pancreas whole organ transplantation (under certain criteria) • Heart • Heart - Lung • Lung • Liver (under certain criteria) • Bone marrow and peripheral blood stem cell • Pediatric bowel This plan only covers transplants of human body organs and tissues. Transplants of artificial, animal, or other non-human organs and tissues are not covered. Expenses for the acquisition of organs or tissues for transplantation are covered only when the transplantation itself is covered under this contract, and is subject to the following limitations: • Testing of related or unrelated donors for a potential living related organ donation is payable at the same percentage that would apply to the same testing of an insured recipient. • Expense for acquisition of cadaver organs is covered, payable at the same percentage and subject to the same maximum dollar limitation, if any, as the transplant itself. • Medical services required for the removal and transportation of organs or tissues from living donors are covered. Coverage of the organ or tissue donation is at the same percentage payable for the transplant itself up to $8,000 if the donor is a member of this plan, and applies to the maximum dollar limitation for the transplant, if any. - If the donor is not a PacificSource member, only those complications of the donation that occur during the initial hospitalization are covered up to $8,000, and such complications are covered only to the extent that they are not covered by another health plan or government program. Coverage is at the same percentage payable for the transplant itself, and also applies to the maximum dollar limitation, if any, for the transplant. - If the donor is a PacificSource member, complications of the donation are covered as any other illness would be covered, up to $8,000 (as outlined above). • Transplant related services, including HLA typing, sibling tissue typing, and evaluation costs, are considered transplant expenses and accumulate toward any transplant benefit limitations and are subject to PacificSource's provider contractual agreements (see Payment of Transplant Benefits, below). Travel and housing expenses for the recipient are limited to $5,000 per transplant. Travel and living expenses are not covered for the donor. Payment of Transplant Benefits If a transplant is performed at a participating Center of Excellence transplantation facility, covered charges of the facility are subject to plan deductibles (co-insurance and co-payment amounts after deductible are waived). If PacifcSource's contract with the facility includes the services of the medical professionals performing the transplant (such as physicians, nurses, and anesthesiologists), those charges are also subject to plan deductibles (co-insurance and co-payment amounts after deductible are waived). If the professional fees are not included in PacificSource's contract with the facility, then those benefits are provided according to your Medical Benefit Summary. If transplant services are available through a contracted transplantation facility but are not performed at a contracted facility, you are responsible for satisfying any deductibles or co-payments stated in your Medical Benefit Summary. This plan then pays at of 60% of the UCR after deductible and co-payments. Services of non-participating medical professionals are paid at the non-participating provider benefit level percentages and do not apply to the out-of-pocket maximum. OTHER COVERED SERVICES, SUPPLIES, AND TREATMENTS • This plan covers services of a state certified ground or air ambulance when private transportation is medically inappropriate because the acute medical condition requires paramedic support. SingleSource Self-Insured 40 Benefits are provided for emergency ambulance service and/or transport to the nearest facility capable of treating the condition. Air ambulance service is covered only when ground transportation is medically or physically inappropriate. Reimbursement to nonparticipating air ambulance services are based on 125% of the Medicare allowance. In some cases Medicare allowance may be significantly lower than the provider's billed amount. The provider may hold you responsible for the amount they bill in excess of the Medicare allowance, as well as applicable deductibles and co- insurance. Medically necessary travel, other than transportation by a licensed ambulance service, to the nearest facility qualified to treat the patient's medical condition is covered when approved in advance by PacificSource. • This plan covers biofeedback to treat migraine headaches or urinary incontinence when provided by an otherwise eligible practitioner. • This plan covers blood transfusions, including the cost of blood or blood plasma. • This plan covers removal, repair, or replacement of an internal breast prosthesis due to a contracture or rupture, but only when the original prosthesis was for a medically necessary mastectomy. Preauthorization by PacificSource is required, and eligibility for benefits is subject to the following criteria: - The contracture or rupture must be clinically evident by a physician's physical examination, imaging studies, or findings at surgery. - This plan covers removal, repair, and/or replacement of the prosthesis; a new reconstruction is not covered. - Removal, repair, and/or replacement of the prosthesis is not covered when recommended due to an autoimmune disease, connective tissue disease, arthritis, allergenic syndrome, psychiatric syndrome, fatigue, or other systemic signs or symptoms. - PacificSource may require a signed loan receipt/subrogation agreement before providing coverage for this benefit. • This plan covers breast reconstruction in connection with a medically necessary mastectomy. Coverage is provided in a manner determined in consultation with the attending physician and patient for: All stages of reconstruction of the breast on which the mastectomy was performed; - Surgery and reconstruction of the other breast to produce a symmetrical appearance; - Prostheses; and - Treatment of physical complications of the mastectomy, including Iymphedema Benefits for breast reconstruction are subject to all terms and provisions of the plan, including deductibles, co-payments and/or co-insurance stated in your Medical Benefit Summary. • This plan covers cardiac rehabilitation as follows: - Phase I (inpatient) services are covered under inpatient hospital benefits. - Phase II (short-term outpatient) services are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for outpatient hospital benefits. Benefits are limited to services provided in connection with a cardiac rehabilitation exercise program that does not exceed 36 sessions and that are considered reasonable and necessary. Phase III (long-term outpatient) services are not covered. • This plan covers IUD, diaphragm, Norplant and cervical cap contraceptive devices along with their insertion or removal. Contraceptive devices that can be obtained over the counter or without a prescription, such as condoms are not covered. • This plan covers corneal transplants. Preauthorization is not required. • In the following situations, this plan covers one attempt at cosmetic or reconstructive surgery: - When necessary to correct a functional disorder, or - When necessary because of an accidental injury, or to correct a scar or defect that resulted from treatment of an accidental injury; or SingleSource Self-Insured 41 When necessary to correct a scar or defect on the head.or neck that resulted from a covered surgery. Cosmetic or reconstructive surgery must take place within 18 months`aft& the injury, surgery, scar, or defect first occurred. Preauthorization by PacificSource is required for all cosmetic and reconstructive surgeries covered by this plan. For information on breast reconstruction, see 'breast prosthesis' and 'breast reconstruction' in this section. • This plan covers dental and orthodontic services for the treatment of craniofacial anomalies when medically necessary to restore function. Coverage includes but is not limited to physical disorders identifiable at birth that affect the bony structures of the face or head, such as cleft palate, cleft lip, craniosynostosis, craniofacial microsomia and Treacher Collins syndrome. Coverage is limited to the least costly clinically appropriate treatment. Cosmetic procedures and procedures to improve on the normal range of functions are not covered. See the exclusions for cosmetic/reconstructive services, dental examinations and treatment, jaw surgery, and orthognathic surgery under the 'Excluded Services' section • This plan provides coverage for certain diabetic supplies and training as follows: Diabetic supplies other than insulin and syringes (such as lancets, test strips, and glucostix) are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. You may purchase those supplies from any retail outlet and send your receipts to PacificSource, along with your name, group number; and member ID number. PacificSource will process the claim and mail you a reimbursement check. Diabetic insulin and syringes are covered under your prescription drug benefit, if your plan includes prescription coverage. Lancets and test strips are also available under that prescription benefit in lieu of those covered supplies under the medical plan. - This plan covers one diabetes self-management education program at the time of diagnosis, and up to three hours of education per year if there is a significant change in your condition or its treatment. To be covered, the training must be provided by an accredited diabetes education program, or by a physician, registered nurse, nurse practitioner, certified diabetes educator, or licensed dietitian with expertise in diabetes. This plan covers medically necessary telemedical health services provided in connection with the treatment of diabetes (see Professional Services in this section). • This plan covers dietary or nutritional counseling provided by a registered dietitian under certain circumstances. It is covered under the diabetic education benefit, or for management of inborn errors of metabolism (excluding obesity), or for management of anorexia nervosa or bulimia nervosa (to a lifetime maximum of five visits). This plan covers' nonprescription elemental enteral formula ordered by a physician for home use. Formula is covered when medically necessary to treat severe intestinal malabsorption and the formula comprises a. predominant or essential source of nutrition. Coverage is subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. This plan covers routine foot care for patients with diabetes mellitus.: Hospitalization for dental procedures is covered when the patient has another serious medical condition that may complicate the dental procedure, such as serious blood disease, unstable diabetes, or severe cardiovascular disease, or the patient is physically or developmentally disabled with a dental condition that cannot be safely and effectively treated in a dental office. Coverage requires preauthorization by PacificSource, and only charges for the facility, anesthesiologist, and assistant physician are covered. Hospitalization because of the patient's apprehension or convenience is not covered. • This plan covers treatment for inborn errors of metabolism involving amino acid, carbohydrate, and fat metabolism for which widely accepted standards of care exist for diagnosis, treatment, and monitoring exist, including quantification of metabolites in blood, urine or spinal fluid or enzyme or DNA confirmation in tissues. Coverage includes expenses for diagnosing, monitoring and controlling the disorders by nutritional and medical assessment, including but not limited to clinical visits, biochemical analysis and medical foods used in the treatment of such disorders. Nutritional supplies are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. SingleSource Self-Insured 42 • Injectable drugs and biologicals administered by a physician are covered when medically necessary for diagnosis or treatment of illness or injury. This benefit does not include immunizations (see Preventive Care Services in this section),or drugs or biologicals that can be self-administered or are dispensed to a patient • This plan covers maxillofacial prosthetic services when prescribed by a physician as necessary to restore and manage head and facial structures. Coverage is provided only when head and facial structures cannot be replaced with living tissue, and are defective because of disease, trauma, or birth and developmental deformities. To be covered, treatment must be necessary to control or eliminate pain or infection or to restore functions such as speech, swallowing, or chewing., Coverage is limited to the least costly clinically appropriate treatment, as determined by the physician. Cosmetic procedures and procedures to improve on the normal range of functions are not covered. Dentures, prosthetic devices for treatment of TMJ conditions, and artificial larynx are also not covered. • Pediatric dental care is not covered. • The routine costs of care associated with approved clinical trials are covered. Benefits are only provided for routine costs of care associated with approved clinical trials. Expenses for services or supplies that are not considered routine costs of care are.not covered. For more information, see 'routine costs of care' in the Definitions section of this Summary Plan Description. A'qualified individual' is someone who is eligible to participate in a qualifying clinical trial, If a participating provider is participating in an approved clinical trial, the qualified individual may be required to participate in the trial through that participating provider if the, provider will accept the individual as a participant in the trial. • Sleep studies are covered when ordered by a pulmonologist, neurologist, otolaryngologist, or certified sleep medicine specialist, and when performed at a certified sleep laboratory.... • This plan covers medically necessary therapy and services for the treatment of traumatic brain injury. • This plan covers tubal ligation and vasectomy procedures with no waiting period BENEFIT LIMITATIONS AND EXCLUSIONS Least Costly Setting for Services Covered services must be performed in the least costly setting where they can be provided safely. If a procedure can be done safely in an outpatient setting but is performed in a hospital inpatient setting, this plan will only pay what it would have paid for the procedure on an outpatient basis: If services are performed in an. inappropriate setting, your benefits can be reduced-by up to 30 percent or $2;500; whichever is less. EXCLUDED SERVICES A Note About Optional Bene/its If your Plan Sponsor provides coverage for optional benefits such as prescription drugs, vision services, chiropractic care, or alternative care, you'll find those Member Benefit Summaries in this Summary Plan Description. If your Plan Sponsor provides optional benefits for an exclusion. listed below, then the exclusion does not apply to the extent that coverage exists under the optional benefit. For example, if your Plan Sponsor provides optional chiropractic coverage, then the exclusion far chiropractic care listed below under'Types of Treatment' does not apply to you. Types of Treatment- This plan does not cover the following: • Acupuncture • . Chelation therapy including associated infusions of vitamins andlor minerals, except as medically necessary for the treatment of selected medical conditions and medically significant heavy metal toxicities • Day care or custodial care - Care and related services designed essentially to assist a person in maintaining activities of daily living, e.g. services to assist with walking, getting in/out of bed, bathing, dressing, feeding, preparation of meals, homemaker services, special diets, rest cures, SingleSource Self-Insured 43 day care, and diapers. Custodial care is only covered in conjunction with respite care allowed under this plan's hospice benefit. For related provisions, see 'Hospital and Skilled Nursing Facility Services' and 'Home Health and Hospice Services' in the Covered Expenses section of this ' Summary Plan Description. • Dental examinations and treatment, which means any services or supplies to prevent, diagnose, or treat diseases of the teeth and supporting tissues or structures, except as specified in Covered Expenses - Preventive Care Services except as specifically provided with a separate PacificSource Dental Plan (See the Dental Benefit Plan section of this Summary Plan Description). • Eye exercises, therapy, and procedures - Orthoptics, vision therapy, and procedures intended to correct refractive errors • Fitness or exercise programs and health or fitness club memberships • Foot care (routine) - Services and supplies for corns and calluses of the feet, conditions of the toenails other than infection, hypertrophy or hyperplasla of the skin of the feet, and other routine foot care, except in the case of patients being treated for diabetes mellitus • Genetic (DNA) testing, except for tests identified as medically necessary for the diagnosis and standard treatment of specific diseases • Homeopathic treatment • Infertility - Services and supplies, surgery, treatment, or prescriptions to prevent, or cure infertility or to induce fertility (including Gamete and/or Zygote Interfallopian Transfer; i.e. GIFT or ZIFT), except for medically necessary medication to preserve fertility during treatment with cytotoxic chemotherapy. For related provisions, see the exclusion for 'family planning' in this section. For purposes of this plan, infertility is defined as: o Male: Low sperm counts or the inability to fertilize an egg o Female: The inability to conceive or carry a pregnancy to 12 weeks • Instructional or educational programs, except diabetes self-management programs • Jaw- Services or supplies for developmental or degenerative abnormalities of the jaw, malocclusion, dental implants, or improving placement of dentures. • Massage, massage therapy, or neuromuscular re-education, even as part of a physical therapy program • Motion analysis, including videotaping and 3-D kinematics, dynamic surface and fine wire electromyography, and physician review • Myeloablative high dose chemotherapy, except when the related transplant is specifically covered under the transplantation provisions of this plan. For related provisions, see 'Transplant Services' in the Covered Expenses section of this Summary Plan Description. • Naturopathic treatment • Obesity or weight control - Surgery or other related services or supplies provided for weight control or obesity (including all categories of obesity) except as listed under 'Preventive Care Services', whether or not there are other medical conditions related to or caused by obesity. This also includes services or supplies used for weight loss, such as food supplementation programs and behavior modification programs, regardless of the medical conditions that may be caused or exacerbated by excess weight, and self-help or training programs for weight control. Obesity screening and counseling are covered for children and adults; see the 'dietary or nutritional counseling' section under'Other Covered Services'. • Oral/facial motor therapy for strengthening and coordination of speech-producing musculature and structures • Osteopathic manipulation, except for treatment of disorders of the musculoskeletal system • Physical or eye examinations required for administrative purposes such as participation in athletics, admission to school, or by a Plan Sponsor • Private nursing service • Programs that teach a person to use medical equipment, care for family members, or self administer drugs or nutrition (except for diabetic education benefit) SingleSource Self-Insured 44 • Rehabilitation - Functional capacity evaluations, work hardening programs, vocational rehabilitation, community reintegration services, and driving evaluations and training programs • Routine services and supplies - Services, supplies, and equipment not involved in diagnosis or treatment but provided primarily for the comfort, convenience, cosmetic purpose, environmental control, or education of a patient or for the processing of records or claims. These include but are not limited to: o Missed appointments, completion of claim forms, or reports requested by PacificSource in order to process claims o Appliances, such as air conditioners, humidifiers, air filters, whirlpools, hot tubs, heat lamps, or tanning lights o Private nursing services or personal items such as telephones, televisions, and guest meals in a hospital or skilled nursing facility o Maintenance supplies and equipment not unique to medical care • Screening tests - Services and supplies, including imaging and screening exams performed for the sole purpose of screening and not associated with specific diagnoses and/or signs and symptoms of disease or of abnormalities on prior testing (including but not limited to total body CT imaging, CT colonography and bone density testing).This does not include preventive care screenings listed under'Preventive Care Services' in the Covered Expenses section of this Summary Plan Description. • Self-help or training programs • Sexual disorders - Services or supplies for the treatment of sexual dysfunction or inadequacy unless medically necessary to treat a mental health issue and diagnosis. For related provisions, see the exclusions for 'family planning', 'infertility', and 'mental illness' in this section. • Snoring - Services or supplies for the diagnosis or treatment of snoring or upper airway resistance disorders, including somnoplasty • Speech therapy - Oral/facial motor therapy for strengthening and coordination of speech-producing muscles and structures, except as medically necessary in the restoration or improvement of speech following a traumatic brain injury or for a child 17 years of age or younger diagnosed with a pervasive developmental disorder. • Temporomandibular joint (TMJ)-related services, or treatment for associated myofascial pain, including physical or oromyofacial therapy Surgeries and Procedures - This plan does not cover the following: • Abdominoplasty for any indication • Artificial insemination, in vitro fertilization, or GIFT procedures • Cosmetic/reconstructive services and supplies - Except as specified in the Covered Expenses - Other Covered Services, Supplies, and Treatments section of this Summary Plan Description, services and supplies, including drugs, rendered primarily for cosmetic/reconstructive purposes and any complications as a result of non-covered cosmetic/reconstructive surgery. Cosmetic/reconstructive services and supplies are those performed primarily to improve the body's appearance and not primarily to restore impaired function of the body, regardless of whether the area to be treated is normal or abnormal. • Electronic Beam Tomography (EBT) • Eye refraction procedures, orthoptics, vision therapy, or other services to correct refractive error except as indicated in the Covered Services section of this Summary Plan Description • Jaw surgery - Treatment for abnormalities of the jaw, malocclusion, or improving the placement of dentures and dental implants • Orthognathic surgery - Services and supplies to augment or reduce the upper or lower jaw, except as specified under 'Professional Services' in the Covered Expenses section of this Summary Plan Description. • Panniculectomy for any indication • Sex reassignment - Procedures, services or supplies related to a sex reassignment unless SingleSource Self-Insured 45 medically necessary. For related provisions, see exclusions for 'mental illness' in this section. o Excluded procedures include, but are not limited to: staged gender reassignment surgery, including breast augmentation, penile implantation; liposuction, thyroid chondroplasty, laryngoplasty, or shortening of the vocal cords, and/or hair removal specifically to assist the appearance of other characteristics of gender reassignment. • Surgery to reverse voluntary sterilization • Transplants - Any services, treatments, or supplies for the transplantation of bone marrow or peripheral blood stem cells or any human body organ or tissue, except as expressly provided under the provisions of this plan for covered transplantation expenses. For related provisions see 'Transplant Services' in the Covered Expenses section of this Summary Plan Description. Mental Health Services - This plan does not cover the following services, whether provided by a mental health or chemical dependency specialist or by any other provider: Treatment for the following diagnosis: • Diagnostic codes V 15.81 through V71.09 (DSM-IV-TR, Forth Edition) except V61.20, V61.21, and V62.82 when used with children five years of age or younger • Food dependencies • Gender Identity Disorders in Adults (GID) • Learning disorders • Mental illness does not include - Treatment of intellectual disabilities and relationship problems (e.g. parent-child, partner, sibling, or other relationship issues), except the treatment of children five years of age or younger for parent-child relational problems, physical abuse of a child, sexual abuse of a child, neglect of a child, or bereavement. This plan does not cover educational or correctional services or sheltered living provided by a school or halfway house, except outpatient services received while temporarily living in a shelter; psychoanalysis or psychotherapy received as part of an educational or training program, regardless of diagnosis or symptoms that may be present; a court-ordered sex offender treatment program; a court-ordered screening interview or drug or alcohol treatment program. The following treatment types are also excluded, regardless of diagnosis: marital/partner counseling; support groups; sensory integration training; biofeedback except to treat migraine headaches or urinary incontinence; hypnotherapy; academic skills training; narcosynthesis; aversion therapy; and social skill training. Recreation therapy is only covered as part of an inpatient or residential admission. The following are also excluded: court-mandated diversion and/or chemical dependency education classes; court-mandated psychological evaluations for child custody determinations; voluntary mutual support groups such as Alcoholics Anonymous; adolescent wilderness treatment programs, mental examinations for the purpose of adjudication of legal rights; psychological testing and evaluations not provided as an adjunct to treatment or diagnosis of a stress management, parenting skills, or family education; assertiveness training; image therapy; sensory movement group therapy; marathon group therapy, sensitivity training; and psychological evaluation for sexual dysfunction or inadequacy. • Mental retardation • Nicotine related disorders • Paraphilias Treatment programs, training, or therapy as follows: • Academic skills training • Aversion therapy • Biofeedback (other than as specifically noted under the Covered Expenses - Other covered Services, Supplies, and Treatment section) • Court-ordered sex offender treatment programs • Court-ordered screening interviews or drug or alcohol treatment programs SingleSource Self-Insured 46 • Educational or correctional services or sheltered living provided by a school or halfway house • Equine/animal therapy • Hypnotherapy • Narcosynthesis • Psychoanalysis or psychotherapy received as part of an educational or training program, regardless of diagnosis or symptoms that may be present • Marital/partner counseling • Recreation therapy outside a inpatient or residential treatment setting • Sensory integration training • Social skill training • Support groups Drugs and Medications- This plan does not cover the following: • Drugs and biologicals that can be self administered (including injectibles), other than those - provided in a hospital emergency room, or other institutional setting, or as outpatient chemotherapy and dialysis, which are covered • Growth hormone injections or treatments, except to treat documented growth hormone deficiencies • Immunizations when recommended for or in anticipation of exposure through travel or work • Over-the-counter medications or non-prescription drugs Equipment and Devices - This plan does not cover the following: • Computer or electronic equipment for monitoring asthmatic, diabetic, or similar medical conditions or related data • Equipment commonly used for nonmedical purposes - This plan does not cover the following: o Equipment commonly used for nonmedical purposes, or marketed to the general public, or intended to alter the physical environment. This includes applianceslike adjustable power beds sold as furniture, air conditioners, air purifiers, room humidifiers, heating and cooling pads, home blood pressure monitoring equipment, light boxes, conveyances other-than conventional wheelchairs, whirlpool baths, spas, saunas, heat lamps, tanning lights, and pillows. It also includes orthopedic shoes and shoe modifications. Mattresses and mattress pads are only covered when medically necessary to heal pressure sores. • Equipment used primarily in athletic or recreational activities. This includes exercise equipment for stretching, conditioning, strengthening, or relief of musculoskeletal problems • Modifications to vehicles or structures to prevent, treat, or accommodate a medical condition • Personal items such as telephones, televisions, and guest.meals during a stay at,a hospital or other inpatient facility • Replacement costs for worn or damaged durable medical equipment that would otherwise be replaceable without charges under warranty or other agreement Experimental or Investigational Treatment Your Plan Sponsor's plan does not cover experimental or investigational treatment. By that, PacificSource means services, supplies, protocols, procedures, devices, chemotherapy, drugs or medicines or the use thereof that are experimental or investigational for the diagnosis and treatment of the patient. It includes treatment that, when and for the purpose rendered: • Has not yet received full U.S. government agency approval (e.g. FDA) for other than experimental, investigational, or clinical testing; • Is not of generally accepted medical practice in Oregon or as determined by PacificSource in consultation with medical advisors, medical associations, and/or technology resources; • Is not approved for reimbursement by the Centers for Medicare and Medicaid Services; SingleSource Self-Insured 47 • Is furnished in connection with medical or other research; or • Is considered by any governmental agency or subdivision to be experimental or investigational, not reasonable and necessary, or any similar finding. An experimental or investigational service is not made eligible for benefits by the fact that other treatment is considered by your healthcare provider to be ineffective or not as effective as the service or that the service is prescribed as the most likely to prolong life. When making benefit determinations about whether treatments are investigational or experimental, PacificSource relies on the above resources as well as: • Expert opinions of specialists and other medical authorities, • Published articles in peer-reviewed medical literature; • External agencies whose role is the evaluation of new technologies and drugs; and • External review by an independent review organization. The following will be considered in making the determination whether the service is in an experimental and/or investigational status: • Whether there is sufficient evidence to permit conclusions concerning the effect of the services on health outcomes; • Whether the scientific evidence demonstrates that the services improve health outcomes as much or more than established alternatives; • Whether the scientific evidence demonstrates that the services' beneficial effects outweigh any harmful effects; and • Whether any improved health outcomes from the services are attainable outside an investigational setting. If you or your provider have any concerns about whether a course of treatment will be covered, PacificSource encourages you to contact PacificSource's Customer Service Department. PacificSource will arrange for medical review of your case against PacificSource's criteria, and notify you of Whether the proposed treatment will be covered. Other Items - This plan does not cover the following: • Treatment not medically necessary - Services or supplies that are not medically necessary for the diagnosis or treatment of an illness, injury, or disease. For related provisions, see 'medically necessary' in the Definitions section and 'Understanding Medical Necessity' in the Covered Expenses section of this Summary Plan Description. • Treatment prior to enrollment - Services or supplies a member received prior to enrolling in coverage provided by this plan; charges for inpatient stays that begin before you were covered by this plan; services or supplies received before this plan's coverage began; admission prior to coverage; services and supplies for an admission to a hospital, skilled nursing facility or specialized facility that began before the patient's coverage under this plan ; _ . • Treatment after coverage ends - Services or supplies received after enrollment in this policy ends. (The only exception is if this policy is replaced by another group health policy while you are. hospitalized. The plan will continue paying covered hospital expenses until you are released or your benefits are exhausted, whichever occurs first.) • Care and related services designed essentially to assist a person in maintaining activities of daily living, e.g. services to assist with walking, getting in/out of bed, bathing, dressing, feeding, and preparation of meals, homemaker services, special diets, rest crew, day care, and diapers. Custodial care is only covered in conjunction with respite care allowed under this policy's hospice benefit (see Covered Expenses - Hospital, Skilled Nursing Facility, Home Health, and Hospice Services). • Services or supplies available to you from another source, including those available through a government agency • Services or supplies for which no charge is made, for which the member is not legally required to pay, or for which a provider or facility is not licensed to provide even though the service or supply SingleSource Self-Insured 48 may otherwise be eligible. This exclusion includes services provided by the member, or by an immediate family member. • Services or supplies for which you are not willing to release the medical or eligibility information PacificSource needs to determine the benefits paid under this plan • Charges that are the responsibility of a third party who may have caused the illness, injury, or disease or other insurers covering the incident (such as workers' compensation insurers, automobile insurers, and general liability insurers) • Charges over the usual, customary, and reasonable fee (UCR) -Any amount in excess of the UCR for a given service or supply, except alternative care. • Treatment of any illness, injury, or disease resulting from an illegal occupation or attempted felony, or treatment received while in the custody of any law enforcement authority • Treatment of any condition caused by a war, armed invasion, or act of aggression, or while serving in the armed forces • Treatment of any work-related illness or injury, unless you are the owner, partner, or principal of the Plan Sponsor, injured in the course of employment of the Plan Sponsor, and are otherwise exempt from, and not covered by, state or federal workers' compensation insurance. This includes illness or injury caused by any for-profit activity, whether through employment or self-employment. • Treatment while incarcerated - Services or supplies a member receives while in the custody of any state or federal law enforcement authorities or while in jail or prison • Charges for phone consultations, missed appointments, get acquainted visits, completion of claim forms, or reports PacificSource needs to process claims • Any amounts in excess of the allowable fee for a given service or supply • Training or self-help programs - General fitness exercise programs, and programs that teach a person how to use durable medical equipment or care for a family member. Also excluded are health or fitness club services or memberships and instruction programs, including but not limited to those to learn to self-administer drugs or nutrition, except as specifically provided for in this plan. • Services of providers who are not eligible for reimbursement under this plan. An individual organization, facility, or program is not eligible for reimbursement for services or supplies, regardless of whether this plan includes benefits for such services or supplies, unless the individual, organization, facility, or program is licensed by the state in which services are provided as an independent practitioner, hospital, ambulatory surgical center, skilled nursing facility, durable medical equipment supplier, or mental and/or chemical healthcare facility. And to the extent PacificSource maintains credentialing requirements the practitioner or facility must satisfy those requirements in order to be considered an eligible provider. • Scheduled and/or non-emergent medical care outside of the United States. • Services otherwise available - These include but are not limited to: o Services or supplies for which payment could be obtained in whole or in part if the member applied for payment under any city, county, state (except Medicaid), or federal law; and o Services or supplies the member could have received in a hospital or program operated by a federal government agency or authority, except otherwise covered expenses for services or supplies furnished to a member by the Veterans' Administration of the United States that are not military service-related. This exclusion does not apply to covered services provided through Medicaid or by any hospital owned or operated by the State of Oregon or any state-approved community mental health and developmental disability program. • Benefits not stated - Services and supplies not specifically described as benefits under the group health policy and/or any endorsement attached hereto SingleSource Self-Insured 49 EXCLUSION PERIODS Exclusion Period for Transplant BeneTts Except for corneal transplants, organ and tissue transplants are not covered until you have been enrolled in this plan for 24 months or since birth. If you were covered under another health insurance plan before enrolling in this plan, you can receive credit for your prior coverage. See the Credit for Prior Coverage section, below. CREDIT FOR PRIOR COVERAGE You can receive credit toward this plan's exclusion periods if you had,qualifying healthcare coverage before enrolling in this plan. To qualify for this credit, there may not have been more than a 63-day gap between your last day of coverage under the previous health plan and your first day of coverage (or the first day of your Plan Sponsor's probationary waiting period) under this plan. Your prior coverage must have been a group health plan, COBRA or state continuation coverage, individual health policy (including student plans), Medicare, Medicaid, TRICARE, State Children's Health Insurance Program, and coverage through high risk pools and the Peace Corps. If you were covered as a dependent under a plan that meets these qualifications, you will qualify for credit. Many people elect the COBRA or state continuation coverage available under a prior plan to make sure they won't have more than a 63-day gap in coverage. It is your responsibility to show you had creditable coverage. If you qualify for credit, PacificSource will count every day of coverage under your prior plan toward this plan's exclusion periods for pre- existing conditions, other specified conditions, and transplants (explained above). Evidence of Prior Creditable Coverage You can show evidence of creditable coverage by sending PacificSource a Certificate of Creditable Coverage from your previous health plan. All health plans, insurance companies, and HMOs are required by law to provide these certificates on request. Most insurers issue these certificates automatically whenever someone's coverage ends. The certificate shows how long you were covered under your previous plan and when your coverage ended. If you do not have a certificate of prior coverage, contact your previous insurance company or Plan Sponsor (such as your former employer, if you had a group health plan). You have the right to request a certificate from any prior plan, insurer, HMO, or other entity through which you had creditable coverage. If you are unable to obtain a certificate, contact PacificSource's Membership Services Department for assistance. HEALTH CARE MANAGEMENT AND PREAUTHORIZATION What is Health Care Management Your Plan Sponsor desires to provide you and your family with a heath care benefit plan that financially protects you from significant health care expenses and assures you quality care. While part of increasing health care costs results from new technology and important medical advances, another significant cause is the way health care services are used. Some studies indicate that a high percentage of the cost for health care services may be unnecessary. For example, hospital stays may be longer than necessary. Some hospitalizations may be entirely avoidable, such as when surgery could be performed at an outpatient facility with equal quality and safety. Also, surgery is sometimes performed when other treatment could be more effective. All of these instances increase costs for you and the plan. Your Plan Sponsor has contracted with PacificSource to assist you in determining whether or not proposed services are appropriate for reimbursement under this plan. The program is not intended to diagnose or treat medical conditions, dictate a treatment plan, guarantee benefits, or validate eligibility. The medical professionals who conduct the program focus their review on the appropriateness for reimbursement of hospital stays and proposed surgical procedures. SingleSource Self-Insured 50 Required Admission Review - You are required to call PacificSource's toll-free number, (888) 977- 9299, prior to any elective inpatient stay or any scheduled surgical procedure. In most cases, your medical provider will make the call for you. You must also call within 48 hours of any emergency admission. When you or your provider call, it will be necessary to provide the program with your name, the patient's name, the name of the physician or practitioner and hospital, the reason for the hospitalization and any other information needed to complete the review. In some cases, you may be asked for more information or a second opinion may be required to complete the review. Preauthorization - Preauthorization is necessary to determine if certain services and supplies are covered under this plan and if you meet the plan's eligibility requirements. PacificSource reviews new technologies and standards of medical practice on an ongoing basis and therefore the list of preauthorization requirements is subject to changes and updates. The current list of procedures and services that require preauthorization under the plan can be found the PacificSource' website: PacificSource.com. The list of services that require preauthorization is not intended to suggest that all the items included are necessarily covered by the benefits of this plan. A request for preauthorization must be made to PacificSource as soon as the patient knows that he or she will be receiving services for which preauthorization is required. Your medical provider can request preauthorization from PacificSource by phone - (888) 977-9299, fax - (541) 684-5264, or mail: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extension 1009 cs@pacificsource.com If your provider will not request preauthorization for you, you may contact PacificSource yourself. In some cases, you may be asked for more information or be required to obtain a second opinion before a benefit determination can be made. If you are preauthorized for one facility, but are then transferred to another facility you will need to obtain preauthorization for the new facility before transferring, except in the case of emergencies in which case notification must be made as soon as possible after transferring facilities. If your provider's preauthorization request is denied as not medically necessary or as experimental, your provider may appeal the adverse benefit determination. You retain the right to appeal the adverse benefit determination independent from your provider. Note: A preauthorization determination is valid for 90 days. However, if your coverage under the plan ends before the services are rendered or supplies received, the preauthorization determination will become invalid. Case Management The primary objective of large case management is to identify and coordinate cost-effective medical care alternatives and to help manage the care of patients who have special or extended care illnesses or injuries. Large case management also monitors the care of the patient, offers emotional support to the family, and coordinates communications among health care providers, patients and others. Benefits may be modified by the Plan Sponsor to permit a method of treatment not expressly provided for, but not prohibited by law, rules or public policy, if the Plan Sponsor determines that such modification is medically necessary and is more cost-effective than continuing a benefit to which you or your eligible dependents may otherwise be entitled. The Plan Sponsor also reserves the right to limit payment for services to those amounts which would have been charged had the service been provided in the most cost-effective setting in which the service could safely have been provided. Examples of illnesses or injuries that may be appropriate for large case management include, but are not limited to: • Terminal illnesses (Cancer, AIDS, Multiple Sclerosis, Renal Failure, Obstructive Pulmonary Disease, Cardiac conditions, etc.) SingleSource Self-Insured 51 • Accident victims requiring long-term rehabilitative care • Newborns with high-risk complications or multiple birth defects • Diagnoses involving long-term IV therapy • Illnesses not responding to medical care • Child and adolescent mental/nervous disorders • Organ transplants Individual Benefits Management Individual benefits management addresses, as an alternative to providing covered services, PacificSource's consideration of economically justified alternative benefits. The decision to allow alternative benefits will be made by on a case-by-case basis. The determination to cover and pay for alternative benefits for an individual shall not be deemed to waive, alter or affect the Plan Sponsors or PacificSource's right to reject any other or subsequent request or recommendation. The Plan Sponsor may provide alternative benefits if PacifcSource and the individual's attending provider concur in the request for and in the advisability of alternative benefits in lieu of specified covered services, and, in addition, PacificSource concludes that substantial future expenditures for covered services for the individual could be significantly diminished by providing such alternative benefits under the individual benefit management program (See Case Management above). HOW TO USE YOUR DENTAL PLAN When you need dental care, you may visit any dentist. Most dental offices will bill PacificSource directly. If your dentist has any questions regarding billing procedures, he or she can call PacifcSource at (541) 225-1981, or (866) 373-7053 from outside the Eugene-Springfield area. When you first visit your dentist after becoming covered under this plan, let the office staff know you have dental benefits through PacificSource. You will need to show your PacificSource ID card, which contains your group number and benefit information. Your dentist may submit claims and treatment programs on a standard American Dental Association form. For extensive dental work, PacificSource recommends that your dentist submit a pre-treatment estimate to PacificSource. PacificSource then determines how much your plan will pay toward the proposed treatment and review the estimate with your dentist prior to treatment. If your covered family members require extensive dental work, be sure your member ID number and group number are included on their pre-treatment form for identification purposes. DENTAL PLAN BENEFITS When this plan pays for dental services, it actually pays the stated percentage of charges based on reasonable and customary charges. A charge is reasonable and customary when it falls within a general range of charges being made by most dental providers in your service area for similar treatment of similar dental conditions. If the charge for a treatment or service is more than the reasonable and customary charge in your service area, you may be required to pay the difference. The reasonable and customary charge for dental expense is the 'covered charge' referred to in this booklet. If you or your covered family member selects a more expensive treatment than is customarily provided, this plan will pay the applicable percentage of the lesser fee. You will be responsible for the balance of the provider's charges. With the Advantage Network, participating dentists agree to write off any charges over and above the negotiated, contracted fees for most services. When you use a participating dentist in the Advantage Network, you will not be responsible for any excess charges and will pay only your plan's deductible and/or co-insurance amount. If you choose not to use a participating Advantage Network dentist, or don't have access to them, reimbursement will continue to be based on usual, customary, and reasonable (UCR) charges. If that non-participating dentist's fees exceed the UCR charges, the excess charges are also your responsibility SingleSource Self-Insured 52 COVERED DENTAL SERVICES This dental plan covers the following services when performed by an eligible provider and when determined to be necessary by the standards of generally accepted dental practice for the prevention or treatment of oral disease or for accidental injury, including masticatory function. Covered services may also be provided by a dental hygienist or denturist to the extent that he or she is operating within the scope of his or her license as required under law in the State of Oregon. Covered dental services are organized into three classes, starting with preventive care and advancing into specialized dental procedures. Class / Services - Diagnostic and Preventive Treatment • Examinations (routine or other diagnostic exams) are covered. Separate charges for review of a proposed treatment plan or for diagnostic aids such as study models and certain lab tests are not covered. • Full mouth x-rays and/or panorex are covered up to one complete mouth series and/or panorex in any three-year period and limited to four bite-wing films in a six-month period. When an accumulative charge for additional periapical x-rays in a one-year period matches that of a complete mouth series, no further benefits for periapical x-rays or panorex are available for the remainder of the year. • Dental cleanings (prophylaxis and periodontal maintenance) are covered to a combined total of three procedures per person per benefit year. The limitation for dental cleaning applies to any combination of prophylaxis and/or periodontal maintenance in the benefit year. A separate charge for periodontal charting is not a covered benefit. Periodontal maintenance is not covered when performed within three months of periodontal scaling and root planing and/or curettage. • Topical applications of fluoride are covered to two applications per benefit year through age 22. • Fluoride varnish applications are covered to 12 applications per benefit year for children age 12 and under if the child is deemed at risk for dental infection. • The application of sealants is covered to one application in a five-year period to permanent molars and bicuspids and only for individuals through age 17. • Vizilite is a covered up to two screenings per benefit year. • Benefits for athletic mouth guards are limited to one per lifetime through age 17 if the member is still in secondary school. • Benefits for brush biopsies used to aid in the diagnosis of oral cancer are covered. Class Restorative Services - Basic and Restorative Treatment Composite, resin, or similar restoration in a posterior (back) tooth is covered to the amount that would be paid for a corresponding amalgam restoration. A separate charge for anesthesia when used during restorative procedures is not a covered benefit. Only one filling is allowed per tooth surface. The Plan Sponsorwill pay for a filling on a tooth surface only once per benefit year. Three or more surface fillings are limited to one per surface per benefit year. • Simple and surgical extractions of teeth and other minor oral surgery procedures are covered. General anesthesia used in conjunction with these extractions administered by a dentist in a dental office is also covered. A separate charge for alveolectomy performed in conjunction with removal of teeth is not a covered benefit. • Periodontal scaling and root planing and/or curettage is covered but limited to only one procedure per quadrant in any 24-month period. For the purpose of this limitation, eight or fewer teeth existing in one arch will be considered one quadrant. • Benefits for full mouth debridement are limited to once every 24 months. This procedure is only covered if the teeth have not received a prophylaxis in the prior 24 months and if an evaluation cannot be performed due to the obstruction by plaque and calculus on the teeth. This procedure is not covered if performed on the same date as the prophylaxis. Class Complicated Services - Complicated Treatment • Complicated oral surgical procedures such as removal of impacted teeth are covered when SingleSource Self-Insured 53 preauthorized by PacificSource. Benefits for complicated oral surgical procedures include general anesthesia administered by a dentist in a dental office. A separate charge for alveolectomy performed in conjunction with removal of teeth is not a covered benefit. • Pulp capping is covered only when there is an exposure to the pulp. These are direct pulp caps. Indirect pulp caps are not covered. • Pulpotomy is covered only for deciduous teeth. • Root canal therapy is covered on the same tooth only for one charge in a three-year period. • Periodontal surgery is covered when the procedure is preauthorized by PacificSource and accompanied by a periodontal diagnosis and history of conservative (non-surgical) periodontal treatment. • Tooth desensitization is covered as a separate procedure from other dental treatment. • Space maintainers are a covered benefit for individuals through the age of 13. class Services - Major Treatment • Crowns and other cast or laboratory-processed restorations are covered but limited to the restoration of any one tooth in a five-year period. If a tooth can be restored with a material such as amalgam or composite resin, covered charges are limited to the cost of amalgam or non-laboratory composite resin restoration even if another type of restoration is selected by the patient and/or dentist. • Replacement of an existing prosthetic device is covered only when the device being replaced is unserviceable, cannot be made serviceable, and has been in place for at least five years. • Cast partial denture, full, immediate, or overdenture are covered only to the cost of a standard full or cast partial denture. A separate charge for denture adjustments and relines performed within six months of the initial placement is not a covered benefit. Benefits for subsequent relines are provided only once in a 12-month period. Cast restorations for partial denture abutment teeth or for splinting purposes are not covered unless the tooth in and of itself requires a cast restoration. • Fixed bridges or removable cast partials are covered. Benefits for temporary full or partial dentures must be preauthorized. Benefits for the initial placement of full or partial dentures or fixed bridges (including acid-etch metal bridges) are provided only if the denture or bridgework includes replacement of a natural tooth which is extracted or lost while the member's coverage is in effect. However, this limitation does not apply after the member has been covered under the policyholder's group dental plan for a period of at least 36 consecutive months. • Benefits for the surgical placement and removal of implants are limited to once per lifetime per tooth space for each service. Services must be preauthorized by PacificSource to be covered. Benefits include final crown and implant abutment over a single implant and final implant-supported bridge abutment and implant abutment or pontic. An alternative benefit per arch of a conventional full or partial denture for the final implant-supported full or partial denture prosthetic device is available. • Bruxism splint and nightguard (appliances to reduce or prevent pain or damage from grinding of teeth) are covered. EXCLUDED DENTAL SERVICES This plan does not provide benefits in any of the following circumstances or for any of the following conditions: • Aesthetic dental procedures - Services and supplies provided in connection with dental procedures that are primarily aesthetic, including bleaching of teeth and labial veneers. • Antimicrobial agents - Localized delivery of antimicrobial agents into diseased crevicular tissue via a controlled release vehicle. • Benefits not stated - Any services and supplies not specifically described as covered benefits under this plan • Biopsies or histopathologic exams - A separate charge for a biopsy of oral tissue or histopathologic exam. SingleSource Self-Insured 54 • Bone replacement grafts to prepare sockets for implants after tooth extraction. • Charges for broken appointments • Collection of cultures and specimens. • Connector bar or stress breaker. • Core build-ups are not covered unless used to restore a tooth that has been treated endodontically (root canal). • Cosmetic/reconstructive services and supplies - Procedures, appliances, restorations, or other services that are primarily for cosmetic purposes. This includes services or supplies rendered primarily to correct congenital or developmental malformations, including but not limited to, peg laterals, cleft palate, maxillary and mandibular (upper and lower jaw) malformation, enamel hypoplasia, and fluorosis (discoloration of teeth). However, the replacement of congenitally missing teeth is covered. • Denture replacement made by necessary by loss, theft, or breakage. • Diagnostic casts - Diagnostic casts (study models), gnathological recordings, occlusal appliances, occlusal equilibration procedures, or similar procedures. • Drugs and medications that are prescribed drugs, premedication drugs, analgesics (e.g., nitrous oxide or non-intravenous sedation), any other euphoric drugs, or any take-home medicine or supplies distributed by a provider. • Educational programs - Instructions and/or training in plaque control and oral hygiene. • Experimental or investigational procedures - Services, supplies, protocols, procedures, devices, drugs or medicines, or the use thereof that are experimental or investigational for the diagnosis and treatment of the patient. An experimental or investigational service is not made eligible for benefits by the fact that other treatment is considered by the member's dental care provider to be ineffective or not as effective as the service or that the service is prescribed as the most likely to prolong life. • Fractures of the mandible - Services and supplies provided in connection with the treatment of simple or compound fractures of the mandible. • General anesthesia except when administered by a dentist in connection with oral surgery in his/her office • Gingivetomcy, gingivoplasty or crown lengthening in conjunction with crown preparation or fixed bridge services done on the same date of service. • Hospital charges or additional fees charged by the dentist for hospital treatment • Hypnosis • Infection control - A separate charge for infection control or sterilization • Intra and extra corona) splinting - Devices and procedures for intra and extra coronal splinting to stabilize mobile teeth. • Oral Surgery treating any fractured jaw • Orthodontic services - Treatment of malalignment of teeth and/or jaws, or any ancillary services expressly performed because of orthodontic treatment, unless your Dental Benefit Summary shows orthodontic services as a covered benefit. • Orthognathic surgery - Surgery to manipulate facial bones, including the jaw, in patients with facial bone abnormalities performed to restore the proper anatomic and functional relationship to the facial bones • Periodontal probing, charting, and re-evaluations • Photographic images. • Pin retention in addition to restoration. • Precision attachments • Pulpotomies on permanent teeth SingleSource Self-Insured 55 Removal of clinically serviceable amalgam restorations to be replaced by other materials free of mercury, except with proof of allergy to mercury. Services covered by the member's medical plan. • Services for rebuilding, or maintaining chewing surfaces due to teeth out of alignment or occlusion, or for stabilizing the teeth. • Services otherwise available - These include but are not limited to: Services or supplies for which payment could be obtained in whole or in part if the member applied for payment under any city, county, state, or federal law (except Medicaid), and - Services or supplies the member could have received in a hospital or program operated by a federal government agency or authority. Covered expenses for services or supplies furnished to a member by the Veterans' Administration of the United States that are not service-related are eligible for payment according to the terms of this policy. - Services or supplies for which payment would be made by Medicare. • Services or supplies for which no charge is made which you are not legally required to pay or which a provider or facility is not licensed to provide even though the service or supply may otherwise be eligible..This includes services provided by you or an immediate family member. • Sinus lift grafts to prepare sinus site for implants. • Temporomandibular joint (TMJ) - Any services or supplies for treatment of any disturbance of the Temporomandibular joint. • Third party liability, motor vehicle liability, motor vehicle insurance coverage, workers' compensation -Any services or supplies for illness or injury for which a third party is responsible or which are payable by such third party or which are payable pursuant to applicable workers' compensation laws', motor vehicle liability, uninsured motorist, underinsured motorist, and personal injury protection insurance and any other liability and voluntary medical or dental payment insurance to the extent of any recovery received from or on behalf of such sources. • Tooth transplantation _ Services and supplies provided in connection with tooth transplantation, including re-implantation from one site to another and splinting and/or stabilization:.This exclusion does not relate to the re-implantation of a tooth into its original socket after it has been avulsed. • Treatment after coverage ends - Services or supplies provided after enrollment in this plan ends. The only exception is for Class III Services ordered and fitted before enrollment ends and placed within 31 days after enrollment ends. • Treatment not dentally necessary according to acceptable dental practice or treatment not likely to have a reasonably favorable prognosis. Treatment prior to enrollment - Dental services begun before you or your family member became eligible for those services under this plan. • Treatment while incarcerated - Services or supplies received while in the custody of any state or federal law enforcement authorities or while in jail or prison. . • Unwilling to'.release.information - Charges for services or supplies for which you are unwilling to release medical or dental information necessary to determine eligibility for payment under this policy • War-related conditions - The treatment of any condition caused by or arising out of an act of war, armed invasion, or aggression, or while in the service of the armed forces. Work-related conditions -Services or supplies for treatment of illness or injury arising out of or in the course of employment or self-employment for wages or profit; whether or not the expense for the service or supply is paid under workers' compensation. SingleSource Self-Insured 56 CLAIMS PROCEDURES How to Fiie/How to Appeal a Claim These claim procedures describe how benefit claims and appeals are made and decided under this plan. Only members or a designated authorized representative may submit claims for benefits (for themselves and on behalf of their covered dependents), and benefits will only be paid to the member or the actual provider of services. Under the following claims procedures section, the words 'you' and 'your' will mean a member of the group health plan of the Plan Sponsor. You become a claimant when you make a request for a plan benefit or benefits in accordance with these claims procedures. You and your covered dependents have the right to elect group health care benefits as offered by the Plan Sponsor, and your and their rights will be determined under the plan's provisions and in conjunction with the claims and appeals procedures outlined later in this section. Claims will also be considered filed by you if communications and requests for benefits come from an individual that you have designated as your authorized representative to act on your behalf with respect to a claim. In the event that you designate an authorized representative to act on your behalf, the plan will send all notifications, requests for further information, appeal decisions, and all other communications to your authorized representative and provide you with a copy of all communications, unless you request otherwise in writing. An authorized representative may act on behalf of a claimant with respect to benefit claim or appeal under these procedures. However, no person (including a treating health care professional) will be recognized as an authorized representative until the plan receives an Designation of Authorized Representative form signed by the claimant, except that for urgent care claims the plan shall, even in the absence of a signed Designation of Authorized Representative form, recognize a health care professional with knowledge of the claimant's medical condition (e.g., the treating physician or practitioner) as the claimant's authorized representative unless the claimant provides specific written direction otherwise. A Designation of Authorized Representative form may be obtained from and completed forms must be returned to: PacificSource Health Plans ' PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extension 1009 cs@pacificsource.com An assignment for purposes of payment (e.g., to a health professional) does not constitute appointment of an authorized representative under these claims procedures. However, unless you have directed the plan otherwise, claims submitted on your behalf by a health care professional will be considered a valid claim if submitted pursuant to the guidelines outlined in these claim procedures. Any reference in these claims procedures to the claimant is intended to include the authorized representative of such claimant appointed in compliance with the above procedures. For the purposes of the claims procedures section, any reference to 'days' will refer to calendar days, not business days. Questions about Your Claims PacificSource is available to listen and help with any concerns or problems you may have with resolving a claim. Because PacificSource wants you to be completely satisfied with the member services assistance you receive, a process has been established for addressing your concerns and solving your problems. If you have a concern regarding a person, a service, the quality of care, or you want to inquire about what benefits are covered under the plan, please call PacificSource at (888) 977-9299 and explain your concern to one of their Customer Service Representatives. You may also express that concern in writing. PacificSource will do their best to resolve the matter on your initial contact. If PacificSource needs more time to review or investigate your concern, they will get back to you as soon SingleSource Self-Insured 57 as possible, but in any case within 30 days. They will not consider any of these communications to be a 'claim' for benefits. A formal claim for benefits must meet certain other standards which are described in greater detail in these procedures. Types of Claims Pre-Service Claims - The plan subjects the receipt of benefits for some services or supplies to a preauthorization review. Although a preauthorization review is generally done on a pre-service basis, it may in some cases be conducted on a post-service basis. Unless a response is needed sooner due to the urgency of the situation, a pre-service preauthorization review will be completed and notification made to you and your medical provider as soon as possible, generally within two working days, but no later than 15 days within receipt of the request. Urgent Care Claims - If the time period for making a non-urgent care determination could seriously jeopardize your life, health or ability to regain maximum function, or would subject you to severe pain that cannot be adequately managed without the care or treatment that is proposed, a preauthorization review will be completed as soon as possible, generally within 24 hours, but no later than 72 hours within receipt of the request. Concurrent Care Review - A concurrent care decision occurs when a previously approved course of treatment is reconsidered and reduced or denied, or where an extension is requested beyond the initially approved period of time or number of treatments. Inpatient hospital or rehabilitative facilities, skilled nursing facilities, intensive outpatient, and residential behavioral health care require concurrent review for a benefit determination with regard to an appropriate length of stay or duration of service. Benefit determinations will be made as soon as possible within receipt of all the information necessary to make such a determination. Post-Service Claims - A claim determination that involves only the potential payment of reimbursement of the cost of medical care that has already been provided will be made as soon as reasonably possible but no later than 30 days from the day after receiving the claim. How to File a Claim Most health care providers will file claims on your behalf. Electronically submitted claims are processed most efficiently. If unable to file electronically, you, your health care provider, or an authorized representative must file your claim using HCFA-1500 (revision 12/90 and later), UB92, or ADA (revision 12/90 and later) forms, or an itemized statement. These forms are available from your health care provider or PacificSource. A claim will be considered filed when it is received by PacificSource at the address listed below: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extensi6n 1009 cs@pacificsource.com The following information is required in order qualify your request for benefits as a properly submitted claim: • Plan member's name, member ID and current address; • Patient's name, member ID and address if different from the member's; • Provider's name, tax identification number, address, degree and signature; Date(s) of service(s); • Place of service(s); • Diagnostic Code; • Procedure Codes (describes the treatment or services rendered); • Assignment of Benefits, signed (if payment is to be made to the provider); • Release of Information Statement, signed; and SingleSource Self-Insured 58 • Explanation of Benefits (EOB) information if another plan is the primary payer. This plan also recognizes the following actions and submission of forms as claims: • A request by you for benefits through preauthorization in cases where use of preauthorization is required in order to obtain a particular benefit. • Requests by your formally-designated authorized representative for preauthorization in cases where use of preauthorization is required in order to obtain a particular benefit. The plan will take reasonable steps to determine whether an individual claiming to be acting on your behalf is, in fact, validly empowered to do so under the circumstances, and the plan will require that you complete and file a form identifying any person you authorize to act on your behalf with respect to a claim. However, when inquiries by a health care provider relate to payments due to the provider-rather than due to you-under participating provider contracts (where the health care provider has no recourse against you for the amounts) such inquiries by a health care provider will not be considered 'claims' by the plan. • Requests for benefits (in the case of a claim involving urgent care) by a health care provider with knowledge of your medical condition. For urgent care claims, you are not required to complete a form and formally designate a health care provider as your representative with respect to a claim. Claims must be submitted individually for each claimant. Please do not staple claims together. Send completed information to: PacIfIcSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extension 1009 cs@ pacificsou rce. com If you have any questions regarding your eligibility, benefits or claims information, please call PacificSource at: (888) 977-9299. All claims for benefits must be submitted to the plan within 90 days of the date of service. If it is not possible to submit a claim within 90 days, you should submit the claim as soon as possible. In some cases the plan will accept the late claim. The plan, however, will not pay a claim that was submitted more than one year after the date of service. All submitted claims and appeals will fall into one of the categories described previously. The handling of your initial claim or later appeal will be governed, in all respects, by the appropriate category of claim or appeal, and each time your claim or appeal is examined, a new determination will be made regarding the category into which the claim or appeal falls at that particular time. Pre-service claims - Your plan subjects the receipt of benefits for some services or supplies to a preauthorization review. Although a preauthorization review is generally done on a pre-service basis, it may in some case be conducted on a post-service basis. Unless a response is needed sooner due to the urgency of the situation, a pre-service preauthorization review will be completed and notification made to you and your medical provider as soon as possible, generally within two working days, but no later than 15 days within receipt of the request. Urgent care claims - If the time period for making a non-urgent care determination could seriously jeopardize your life, health or ability to regain maximum function, or would subject you to severe pain that cannot be adequately managed without the care or treatment that is proposed, a preauthorization review will be completed as soon as possible, generally within 24 hours, but no later than 72 hours of receipt of the request. Concurrent care review - Inpatient hospital or rehabilitation facilities, skilled nursing facilities, intensive outpatient, and residential behavioral healthcare require concurrent review for a benefit determination with regard to an appropriate length of stay or duration of service. Benefit determinations will be made as soon as possible but no later than one working day after receipt of all the information necessary to make such a determination. Post-service claims -A claim determination that involves only the payment of reimbursement of the cost of medical care that has already been provided will be made as soon as reasonably possible but no later than 30 days from the day after receiving the claim. SingleSource Self-Insured 59 Retrospective review- A claim for benefits for which the service or supply requires a preauthorization review but was not submitted for review on a pre-service basis will be reviewed on a retrospective basis within 30 working days after receipt of the information necessary to make a claim determination. Extension of time - Despite the specified timeframes, nothing prevents the member from voluntarily agreeing to extend the above timeframes. Unless additional information is needed to process your claim, PacificSource will make every effort to meet the timeframes stated above. If a claim cannot be paid within the stated timeframes because additional information is needed, PacificSource will acknowledge receipt of the claim and explain why payment is delayed. If PacificSource does not receive the necessary information within 15 days of the delay notice, PacificSource will either deny the claim or notify you every 45 days while the claim remains under investigation. No extension is permitted for urgent care claims. Extension of time - Unless additional information is needed to process your claim, the plan will make every effort to meet the timeframes stated above. If a claim cannot be paid within the stated timeframes because additional information is needed, PacificSource will acknowledge receipt of the claim and explain why payment is delayed. If they do not receive the necessary information within 15 days of the delay notice, they will either deny the claim or notify you every 45 days while the claim remains under investigation. Adverse benefit determinations -Any denial, reduction or termination of, or failure to provide or make a payment for a benefit based on: • A determination that the member is not eligible to participate in the plan. • A determination that the benefit is not covered by the plan. • The imposing of limits, such as preexisting condition or source-of-injury exclusions. • A determination that the benefit is experimental, investigational or not medically necessary or medically appropriate. An adverse benefit determination made to reduce or deny benefits applied for a pre-service, post- service, or concurrent care basis may be appealed in accordance with the plan's appeals procedures described later in this section. Incomplete Claims If any information needed to process a claim is missing, the claim shall be treated as an incomplete claim. Other Incomplete Claims - If a pre-service or post-service claim is incomplete, the plan may deny the claim or may take an extension of time, as described above. If the plan takes an extension of time, the extension notice shall include a description of the missing information and shall specify a timeframe, no less than 45 days, in which the necessary information must be provided. The timeframe for deciding the claim shall be suspended from the date the extension notice is received by the claimant until the date the missing necessary information is provided to the plan. If the requested information is provided, the plan shall decide the claim within the extension period specified in the extension notice. If the requested information is not provided within the time specified, the claim may be decided without that information. .If you fail to follow the plan's filing procedures because your request for benefits does not: 1) identify the patient; 2) note a specific medical condition or symptom; 3) describe a specific treatment, service, or product for which approval is requested; or 4) is not sent to the correct address, you will not have submitted a claim. You will be notified orally, and/or by written notification if requested by the claimant, within 24 hours, that you have failed to follow the filing procedures, and you will be reminded of the proper filing procedures. Notification of Benefit Determination The plan will pay the benefit according to plan provisions. This may mean that less than 100% of your claim is payable by the plan. In each case where the plan pays benefits or determines that it is not responsible for your medical claim, you will receive an Explanation of Benefits which will outline the basis for the plan's payment. If your claim is denied or payable at a level less than outlined in this Summary Plan Description, you are entitled to appeal the decision under the rules governing adverse benefit determination. SingleSource Self-Insured 60 Adverse Benefit Determination 'Written . notification will be provided to you of the plan's adverse benefit determination (as defined in the How To File A Claim section above) and will include the following: • Information sufficient to identify the claim involved, including the date of service, the health care provider, and the claim amount (if applicable), as well as how to obtain the diagnosis code, the treatment code, and the corresponding meanings of these codes. • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; • A description of any additional material or information necessary to perfect the claim and why such information is necessary; A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request, • In the case of an urgent care claim, an explanation of the expedited review methods available for such claims; and A statement regarding the availability of, and contact information for, any applicable office of health insurance consumer assistance or ombudsman. :Notification of the plan's adverse benefit determination on an urgent care claim may be provided orally, but written notification shall be furnished not later than three days after the oral notice. You may call the Third Party Administrator at (888) 977-9299 to discuss the adverse benefit determination if you have concerns. You may also express those concerns in writing and if needed, may submit additional information that you believe would clarify any of the circumstances that lead to the adverse benefit determination. Third Party Administrator will not consider any of these questions or clarifications to be a formal appeal. unless you specifically state it as such. The process for filing a formal appeal is listed below. Your Right to Appeal You have the right to appeal an adverse benefit determination under these claims procedures. If you choose to appeal the plan's adverse benefit determination, your appeal will be governed by rules that assure you a full and fair review. If you are denied benefits based upon the plan's finding that you are/were ineligible for benefits, the denial of benefits gives you the opportunity to appeal the plan's decision. If the plan decides to reduce or terminate benefits for your previously-approved course of treatment, the plan's decision will be treated as an adverse benefit determination, and the plan will provide you reasonable advance notice of the reduction or termination to allow you to appeal the plan's decision before the benefit reduction or termination takes place. If you decide to appeal the plan's decision, you must follow the rules for appealing a plan's decision. No lawsuit can be instituted until the claimant has exhausted the plan's internal and external claims review and appeals procedures. No lawsuit can be instituted more than one year after the date of the notice to the claimant that a claim appeal has been denied. Appealing an Initial Claim Determination - You must submit a written request to the plan within 180 days of receipt of an adverse benefit determination in order to initiate an appeal. An oral request for review is acceptable for urgent care claims and may be made by calling the Third Party Administrator at (888) 977-9299 and asking the plan to register your oral appeal. SingleSource Self-Insured 61 When you appeal an adverse benefit determination, the plan will provide a full and fair review which will include the following features: You will have the opportunity to submit written comments,,documents, records, and other information related to the claim. At your request (and free of charge), you will be provided with reasonable access to (and copies of) all documents, records, and other information relevant to your claim for benefits. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse benefit determination. You also have the right to review documentation showing that the plan followed its own internal processes for . ensuring appropriate decision making. The review of your claim will take into account all comments; documents and other information without regard to whether such information was submitted or considered in the initial benefit determination. Any appeal of an adverse benefit determination will not give deference to the initial decision on your claim, and the review will be conducted by a designated plan representative who did not make the original determination and does not report to the plan representative who made the original . determination. • In deciding an appeal of any adverse benefit determination that is based on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or medically appropriate), the designated plan representative will consult with a health care professional who has appropriate training and experience in the particular field of medicine involved in the medical judgment. This health care- professional will not be the same professional who was originally consulted in connection with the adverse determination; neither will this health care professional report to the health care professional who was consulted in connection with the adverse determination. The plan will uphold the findings of the independent review in responding to the appeal. • The plan will identify medical or vocational experts whose advice was obtained on behalf of the plan in connection with an adverse benefit determination of your claim, whether or not that advice was relied upon in making the benefit determination. You must first follow this appeal process before taking any outside legal action. After you submit the claim for appeal, the plan will make a decision on your appeal as follows: Appeal of Urgent Care Claims - The plan's expedited appeal process for urgent care claims will allow you to request (orally or in writing) an expedited appeal, after which, all necessary information, including the plan's benefit determination on review, will be transmitted between the.plan and you by telephone, fax, or other expeditious method. You will be notified (in writing or electronically) of,the benefit determination as soon as possible, but not later than 72 hours after the plan receives the request for review of the prior benefit determination. For urgent care claims you may also be able to request an independent external review take place at the same time as you pursue the plan's internal appeal process. Appeal of Non-Urgent Pte-Service Claims - For non-urgent pre-service claims, you will be notified (in writing or electronically) of the benefit determination within a reasonable period of time appropriate,to the medical circumstances, but not later than 30 days. Appeal of Concurrent Care Claims - For concurrent care claims, you will be notified (in writing or electronically) of the benefit determination with reasonable advance notice before the benefit reduction or termination takes place. Appeal of Post-Service Claims - For post-service claims, you will be notified (in writing or electronically) of the benefit determination within a reasonable period of time, but not later than 60 days. Denial of Claim on Appeal - If your appealed claim is denied, the plan will send you written or electronic notification that explains why your appealed claim was denied and shall include the following: • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; SingleSource Self-Insured 62 • A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, the plan will disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request; and • A statement indicating your right to receive, upon request (and free of charge), reasonable access to (and copies of) all documents, records, and other information relevant to the determination. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse determination. Additional Level of Review - If you are dissatisfied with the outcome of your appeal, you may request an additional review. To initiate this review you should follow the same process required for an appeal. You must submit a written request for additional review within 60 days following the receipt of the appeal decision. When you submit a request for additional review of an adverse benefit determination, the plan will provide a full and fair review which will include the following features: • You will have the opportunity to submit written comments, documents, records, and other information related to the claim. • At your request (and free of charge), you will be provided with reasonable access to (and copies of) all documents, records, and other information relevant to your claim for benefits. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse benefit determination. You also have the right to review documentation showing that the plan followed its own internal processes for ensuring appropriate decision making. • The review of your claim will take into account all comments, documents and other information without regard to whether such information was submitted or considered in the initial adverse benefit determination. • Additional review will not afford deference to the appeal determination, and the review will be conducted by a designated plan representative who did not make the original determination and does not report to the plan representative who made the original determination. • In deciding an appeal of any adverse benefit determination that is based on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or medically appropriate), the designated plan representative will consult with a health care professional who has appropriate training and experience in the particular field of medicine involved in the medical judgment. This health care professional will not be the same professional who was originally consulted in connection with the adverse determination; neither will this health care professional report to the health care professional who was consulted in connection with the adverse determination. The plan will uphold the findings of the independent review in responding to the appeal. • The plan will identify medical or vocational experts whose advice was obtained on behalf of the plan in connection with an adverse benefit determination of your claim, whether or not that advice was relied upon in making the benefit determination. After you submit the claim for additional review, the plan will make a decision on your appeal as follows: Additional Review of Urgent Care Claims -The plan's expedited additional review process for urgent care claims will allow you to request (orally or in writing) an expedited review, after which, all necessary information, including the plan's benefit determination on review, will be transmitted between the plan and you by telephone, fax, or other expeditious method. You will be notified (in writing or electronically) of the benefit determination as soon as possible, but not later than 72 hours after the plan receives the request for the review. Additional Review of Non-Urgent Pre-Service Claims - For non-urgent pre-service claims, you will be notified (in writing or electronically) of the review outcome within a reasonable period of time appropriate to the medical circumstances, but not later than 30 days. SingleSource Self-Insured 63 Additional Review of Concurrent Care Claims - For concurrent care claims, you will be notified (in writing or electronically) of the review outcome with reasonable advance notice before the benefit reduction or termination takes place. Additional Review of Post-Service Claims - For post-service claims, you will be notified (in writing or electronically) of the review outcome within a reasonable period of time, but not later than 60 days. Denial of Claim after Additional Review - If after your request for additional review the claim is denied, the plan will send you written or electronic notification that explains why the additional review upheld the denial and shall include the following: • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; • A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, the plan will disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request; and • A statement indicating your right to receive, upon request (and free of charge), reasonable access to (and copies of) all documents, records, and other information relevant to the determination. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse determination. Independent External Review - You may have the right to have your case reviewed by an external independent review organization. Only decisions that are based on issues related to medical necessity, medical appropriateness, health care setting, level of care, or effectiveness of a covered benefit may be appealed to an external independent review organization. The plan must contract with at least three different independent external review organizations and must rotate between them on a random or circulating basis. Your request for an independent review must be made in writing to PacificSource within 180 days of the date of the final internal adverse benefit determination. You may include additional written information, which will be included with the documents PacificSource provides to the independent review organization. A final decision made by an independent review organization is binding on the Plan Sponsor. This decision is also binding on you, except to the extent other remedies are available under state or federal law. In certain instances you may be able to request an expedited review process, such as when the timeframe for completion of the internal appeals process would seriously jeopardize the life or health of the claimant or their ability to regain maximum function, or if the final adverse benefit determination concerns an admission, availability of care, continued stay or health care service for which the claimant received emergency services, but has not been discharged from a facility. Resources For Information And Assistance Assistance in Other Languages Members who do not speak English may contact PacificSource's Customer Service Department for assistance. They can usually arrange for a multilingual staff member or interpreter to speak with them in their native language. Information Available from PacificSource PacificSource makes the following written information available to you free of charge. You may contact their Customer Service Department by phone, mail, or email to request any of the following: • A directory of participating healthcare providers under your plan SingleSource Self-Insured 64 • Information about PacificSource's drug formulary • A copy of PacifcSource's annual report on complaints and appeals • A description (consistent with risk-sharing information required by the Centers for Medicare and Medicaid Services, formerly known as Health Care Financing Administration) of any risk-sharing arrangements PacificSource has with providers • A description of PacificSource's efforts to monitor and improve the quality of health services • Information about how PacificSource checks the credentials of PacificSource's network providers and how you can obtain the names and qualifications of your healthcare providers • Information about PacificSource's preauthorization procedures • Information about any healthcare plan offered by the Plan Sponsor Information Available from the Oregon Insurance Division The following consumer information is available from the Oregon Insurance Division: • The results of all publicly available accreditation surveys • A summary of PacificSource's health promotion and disease prevention activities • Samples of the written summaries delivered to PacificSource policyholders • An annual summary of grievances and appeals against PacificSource • An annual summary of PacificSource's quality assessment activities • An annual summary of the scope of PacificSource's provider network and accessibility of healthcare services You can request this information by contacting the Oregon Insurance Division by writing to the Oregon Insurance Division, Consumer Advocacy Unit, PO Box 14489, Salem, OR 97309-0405 or by phone at (503) 947-7984, or the toll-free message line at (888) 877-4894, on the Internet at hftp://insurance.oregon.gov/consumer/consumer.htmi, or by email at cp.ins@state.or.us. Plan Sponsor's Discretionary Authority; Standard of Review The Plan Sponsor is the sole fiduciary of the plan, and exercises all discretionary authority and control over the administration of the plan and the management and disposition of plan assets. Benefits under the plan will be paid only if the Plan Sponsor decides, in its discretion, that the member or beneficiary is entitled to such benefits. Any construction of the terms of any plan document and any determination of fact adopted by the Plan Sponsor shall be final and legally binding on the parties. A court of law or arbitrator reviewing any fiduciary's decision, including one relating the plan interpretation or a benefit claim, must consider only the documents, testimony and other evidence that were presented to the fiduciary at the time the fiduciary made the decision. In addition, the court or arbitrator must use the 'arbitrary and capricious' standard of review. That is, the fiduciary's determination can be reversed only if it was made in bad faith, is not supported by substantial evidence or is erroneous as to a question of law. The Plan Sponsor may hire someone to perform claims processing and other specified services in relation to the plan. Any such contractor will not be a fiduciary of the plan and will not exercise any of the discretionary authority and responsibility granted to the Plan Sponsor, as described above. Coordination of Benefits Coordinating with Other Group Health Plans - When benefits are coordinated, one plan pays benefits first (the 'primary coverage') and the other plan pays benefits second (the 'secondary coverage'). When you and/or your dependents are covered under more than one group health plan, the combined benefits payable by this plan and all other group plans will not exceed 100% of the eligible expense incurred by the individual. The plan assuming primary payer status will determine benefits first without regard to benefits provided under any other group health plan. SingleSource Self-Insured 65 Note: If your primary and secondary coverage both include a deductible, you will be required to satisfy each of those deductibles before benefits will be paid. There are two types of Coordination of Benefits -'True' Coordination of Benefits and Non-Duplicating Coordination of Benefits (also called Integration of Benefits.) See the Medical Benefit Summary to determine if your plan offers True Coordination of Benefits or Non-Duplicating/Integration of Benefits. For True Coordination of Benefits, the primary plan will pay benefits first, subject to any deductibles, co-payments and co-insurance. The remaining balance will be passed on to the secondary payer. When this plan is the secondary payer, the balance of eligible expenses will be applied as if it was a new claim under this plan. Deductibles, co-payments and co-insurance relevant to this plan will be subtracted from the amount before paying the remainder. For Non-Duplicating Coordination of Benefits/Integration of Benefits, the primary plan will pay benefits first, subject to any deductibles, co-payments and co-insurance. The remaining balance will be passed on to the secondary payer. When this plan is the secondary payer, it will reimburse the balance of remaining eligible expenses, not to exceed normal plan liability if this plan had been primary. This means that if the primary payer has already paid as much as or more than this plan would have paid had this plan been primary, there will be no additional payment made. This does not apply to City of Ashland. Government Programs and Other Group Health Plans -The term group health plan, as it relates to coordination of benefits, includes the government programs Medicare, Medicaid and TriCare. The regulations governing these programs take precedence over the determination of benefits under this plan. For example, in determining the benefits payable under the plan, the plan will not take into account the fact that you or any eligible dependent(s) are eligible for or receive benefits under a Medicaid plan. The term group health plan also includes all group insurance and group subscriber contracts, such as union welfare plans. Order of Payment When Coordinating with Other Group Health Plans • If the other plan does not include 'coordination of benefits,' that plan is primary and this plan is secondary. • If you are covered as an employee on one plan and a dependent on another, your Plan Sponsors plan is primary. • When a child is covered under both parents' policies and the parents are either married or are living together (regardless of whether or not they have ever been married): - The parent whose birthday falls first in a benefit year has the primary plan; or - If both parents have the same birthday, the parent who has been covered the longest has the primary plan. • When a child is covered under both parents' plans and the parents are divorced, separated, or not living together (regardless of whether or not they have ever been married): - If a court order specifies that one parent is responsible for the child's healthcare expenses, the mandated parent's coverage is primary regardless of custody. - If a court order specifies that both parents are responsible for the child's healthcare expenses, the parent whose birthday falls first in a benefit year has the primary plan. If both parents have the same birthday, the parent who has been covered the longest has the primary plan. - If a court order specifies that both parents have joint custody without specifying that one parent has responsibility for the child's healthcare expenses, the parent whose birthday falls first in a benefit year has the primary plan. If both parents have the same birthday, the parent who has been covered the longest has the primary plan. - If there is no court order, the order of benefits for the child are as follows: o The custodial parent's coverage is primary, o The spouse of the custodial parent's coverage pays second; SingleSource Self-Insured 66 o The natural parent without custody's coverage pays third, and o The spouse of the natural parent without custody's coverage pays fourth. • If a plan covers you as an active employee or a dependent of an active employee, that plan is primary. Another plan covering you as inactive, laid off, or retired is secondary. • When this plan covers you or your dependent pursuant to COBRA or under a right of continuation pursuant to other federal law, the plan covering you or your dependent as an employee, member, subscriber, or retiree or covering you or your dependent as a dependent of an employee, member, subscriber or retiree is the primary plan and this plan's coverage is the secondary plan. • If none of these rules apply, the coverage that has been in place longest is primary. Most insurers or administrators send you an explanation of benefits, or EOB, when they pay a claim. If your other plan's coverage is primary, send PacificSource the other plan's EOB with your original bill and they will process your claim. If you receive more than you should when your benefits are coordinated, you will be expected to repay any over-payment to the plan. Right to Make Payments to Other Organizations - Whenever payments, which should have been made by this plan, have been made by any other plan(s), this plan has the right to pay the other plan(s) any amount necessary to satisfy the terms of this coordination of benefits provision. Amounts paid will be considered benefits paid under this plan and, to the extent of such payments, the plan will be fully released from any liability regarding the person for whom payment was made. Automobile Insurance - This plan provides benefits relating to medical expenses incurred as a result of an automobile accident on a secondary basis only. Benefits payable under this plan will be coordinated with and secondary to benefits provided or required by any no-fault automobile insurance statute, whether or not a no-fault policy is in effect, and/or any other automobile insurance. Any benefits provided by this plan will be subject to the plan's reimbursement and/or subrogation provisions. OTHER IMPORTANT PLAN PROVISIONS Assignment of Benefits All benefits payable by the plan are automatically assigned to the provider of services or supplies, unless evidence of previous payment is submitted with the claim form. However, the plan reserves the right to reimburse the member, the provider, or both jointly. Payments made in accordance with an assignment are made in good faith and release the plan's obligation to the extent of the payment. Payments will also be made in accordance with any assignment of rights required by a state Medicaid plan. Members are expressly prohibited from assigning any right to payment of benefits under a Benefit Program, including this plan. No attempts at assignment of any such expenses under a Benefit Program will be recognized. Except as may be expressly prescribed in an agreement to which the Plan Sponsor is a party, nothing contained in any written designation of coverage under a Benefit Program will make the Benefit Program, or the Plan Sponsor or any other employer, liable to any third-party to whom a member may be liable for medical care, treatment or services. Proof of Loss The Plan Sponsor has the right to require a claimant to undergo physical or psychological examinations relating to the claimant's illness, injury or condition as often as the Plan Sponsor deems reasonably necessary while the claim for benefits is pending. The Plan Sponsor also has the right to require an autopsy in case of death (where not prohibited by law). No Verbal Modifications of Plan Provisions No verbal statement made by anyone involved in administering this plan can waive any of the terms or conditions of this plan or prevent the Plan Sponsor from enforcing any provision of this plan. Waivers are valid only if they are contained in a written instrument signed by an authorized individual on behalf of the Plan Sponsor. Any such written waiver will be valid only as to the specific plan, term or condition set forth in the written instrument. Unless specifically stated otherwise, a written waiver will be valid only SingleSource Self-Insured 67 for the specific claim involved at the time, and will not be a continuing waiver of the term or condition in the future. Reimbursement to the Plan This section applies whenever another party (including your own insurer under an automobile or other policy) is legally responsible or agrees to compensate you or your dependent, by settlement, verdict or otherwise, for an illness or injury. In that case, you or your dependent (or the legal representatives, estate or heirs of either you or your dependent), must promptly reimburse the plan for any benefits it paid relating to that illness or injury, up to the full amount of the compensation received from the other party (regardless of how that compensation may be characterized and regardless of whether you or your dependent have been made whole). If the plan has not yet paid benefits relating to that illness or injury, the plan may reduce or deny future benefits on the basis of the compensation received by you or your dependent. Benefits relating to such illness or injury will not be payable by the plan until you sign and return a statement, provided by the plan, acknowledging your obligation to reimburse the plan under this provision. That obligation will arise upon the payment of any plan benefits relating to the illness or injury, whether or not you sign such a statement. You or your dependent must cooperate with the plan and its authorized representatives, and must sign and deliver such documents as the plan or its agents reasonably request to protect the plan's right of reimbursement. You or your dependent must also provide any relevant information and take such actions as the plan or its agents reasonably request to assist the plan in making a full recovery of the reasonable value of the benefits provided. You or your dependent must not take any action that prejudices the plan's right of reimbursement. In order to secure the rights of the plan under this section, you or your dependent hereby: (1) grant to the plan a first priority lien against the proceeds of any such settlement, verdict or other amounts received by you or your dependent, and (2) assign to the plan any benefits you or your dependent may have under any automobile policy or other coverage, to the extent of the plan's claim for reimbursement. The reimbursement required under this provision will not be reduced to reflect any costs or attorneys' fees incurred in obtaining compensation unless separately agreed to, in writing, by the Plan Sponsor, in the exercise of its sole discretion. This plan expressly disavows and repudiates the make whole doctrine, which, if applicable, would prevent the plan from receiving a recovery unless a member has been 'made whole' with regard to illness or injury that is the responsibility of a third party. This plan also expressly disavows and repudiates the common fund doctrine, which, if applicable, would require the plan to pay a portion of the attorney fees and costs expended in obtaining a recovery. These doctrines have no application to this plan, since the plan's recovery rights apply to the first dollars payable by a third party. Subrogation This section applies whenever another party (including your own insurer under an automobile or other policy) is legally responsible or agrees to compensate you or your dependent for you or your dependent's illness or injury and the plan has paid benefits related to that illness or injury. The plan is subrogated to all of the rights of you or your dependent against any party liable for you or your dependent's illness or injury to the extent of the reasonable value of the benefits provided to you or your dependent under the plan. The plan may assert this right independently of you or your dependent. You and your dependent are obligated to cooperate with the plan and its authorized representatives in order to protect the plan's subrogation rights. Cooperation means providing the plan or its agents with any relevant information requested by them, signing and delivering such documents as the plan or its agents reasonably request to secure the plan's subrogation claim, and obtaining the consent of the plan or its agents before releasing any party from liability for payment of medical expenses. If you or your dependent enters into litigation or settlement negotiations regarding the obligations of other parties, you or your dependent must not prejudice, in any way, the subrogation rights of the plan under this section. SingleSource Self-Insured 68 The costs of legal representation of the plan in matters related to subrogation will be borne solely by the plan. The costs of legal representation of you or your dependent must be borne solely by you or your dependent. Recovery of Excess Payments Whenever payments have been made in excess of the amount necessary to satisfy the provisions of this plan, or were made in error by the plan, the plan has the right to recover these payments from any individual (including yourself), insurance company or other organization to whom the payments were made or to withhold payment, if necessary, on future benefits until the overpayment is recovered. If excess or erroneous payments were made for services rendered to your dependent(s), the plan has the right to withhold payment on your future benefits until the overpayment is recovered. Further, whenever payments have been made based on fraudulent information provided by you, the plan will exercise all available legal rights, including its right to withhold payment on future benefits, until the overpayment is recovered. In the same manner, if the plan applies medical expenses to the plan deductible that would not otherwise be reimbursable under the terms of this policy, the plan may deduct a like amount from the accumulated deductible amounts and/or recover payment of medical expenses that would have otherwise been applied to the deductible. The fact that a medical expense was applied to the plan's deductible, or that a drug was provided under the plan's prescription drug program, does not in itself create an eligible expense or infer that benefits will continue to be provided for an otherwise excluded condition. Right To Receive and Release Necessary Information The plan may, without the consent of or notice to any person, release to or obtain from any organization or person, information needed to implement plan provisions, including medical information. When you request benefits, you must either furnish or authorize the release of all the information required to implement plan provisions. Your failure to fully cooperate will result in a denial of the requested benefits and the plan will have no further liability for such benefits. Under normal conditions, benefits are payable to the provider of services or supplies, unless evidence of previous payment is submitted with the claim form. If conditions exist under which a valid release or assignment cannot be obtained, the plan may make payment to any individual or organization that has assumed the care or principal support for you and is equitably entitled to payment. The plan must make payments to your separated/divorced spouse, state child support agencies or Medicaid agencies if required by a qualified medical child support order (QMCSO) or state Medicaid law. The plan may also honor benefit assignments made prior to your death in relation to remaining benefits payable by the plan. Any payment made by the plan in accordance with this provision will fully release the plan of its liability to you. Reliance on Documents and Information Information required by the Plan Sponsor or PacificSource may be provided in any form or document that the Plan Sponsor and PacificSource considers acceptable and reliable. The Plan Sponsor and PacificSource relies on the information provided by you and others when evaluating coverage and benefits under the plan. All such information, therefore, must be accurate, truthful and complete. The Plan Sponsor and PacificSource is entitled to conclusively rely upon, and will be protected for any action taken in good faith in relying upon, any information provided to the Plan Sponsor or PacificSource. In addition, any fraudulent statement, omission or concealment of facts, misrepresentation, or incorrect information may result in the denial of the claim, cancellation or rescission of coverage, or any other legal remedy available to the plan. No Waiver The failure of the Plan Sponsorto enforce strictly any term or provision of this plan will not be construed as a waiver of such term or provision. The Plan Sponsor reserves the right to enforce strictly any term or provision of this plan at any time. SingleSource Self-Insured 69 Physician/Patient Relationship This plan is not intended to disturb the physician/patient relationship. Physicians, practitioners and other health care providers are not agents or delegates of the Plan Sponsor, or the Third Party Administrator. Nothing contained in this plan will require you or your dependent to commence or continue medical treatment by a particular provider. Further, nothing in this plan will limit or otherwise restrict a physician or practitioner's judgment with respect to the physician or practitioner's ultimate responsibility for patient care in the provision of medical services to you or your dependent. Plan not responsible for Quality of Health Care You and your enrolled dependents have the right to select your health care provider. Neither the plan, your Plan Sponsor, nor Third Party Administrator is responsible for the quality of care received and cannot be held liable for any claim or damages connected with injuries suffered while receiving health services or supplies. Plan is not a Contract of Employment Nothing contained in this plan will be construed as a contract or condition of employment between the Plan Sponsor and any employee. All employees are subject to discharge to the same extent as if this plan had never been adopted. Right to Amend or Terminate Plan Plan Sponsor reserves the right to amend, modify or terminate the plan in any manner, for any reason, at any time. If changes occur, your Plan Sponsorwill notify you of changes to your plan. If your health plan terminates and your Plan Sponsor does not replace the coverage with another group policy, your Plan Sponsor is required by law to advise you in writing of the termination. When this plan terminates, your.P/an Sponsorwill notify you about any available options for you to continue your. . coverage. The Plan Sponsor may pay your medical claims if a workers' compensation claim has been denied on the basis that the illness or injury is not work related, and the denial is under appeal. But before PacificSource does that, you must sign a written agreement to reimburse the Plan Sponsor any money you recover from the workers' compensation coverage. Rescissions The Plan Sponsor or PacificSource may not rescind the coverage of a member unless the member, or person seeking coverage on behalf of the member, performs an act, practice or omission that constitutes fraud or makes an intentional misrepresentation of a material fact as prohibited by.the terms of this plan and the Plan Sponsor or PacificSource gives the member a 30-day prior written notice. PacificSource may not rescind the policyholder's group health benefit plan unless the policyholder, or representative of the policyholder, performs an act, practice or omission that constitutes fraud or makes an intentional misrepresentation of a material fact as prohibited by the terms of this plan and PacificSource gives a 30-day prior written notice to all member covered under the plan. Rescissions do not include a cancellation or discontinuance of coverage that is prospective or to the extent it is attributable to a failure to timely pay required contributions towards the cost of coverage. Applicable Law This is a self-insured benefit plan. As such, Federal law preempts State law and jurisdiction. To the extent not preempted by federal law, the laws of the state of Oregon shall apply. PRIVACY AND CONFIDENTIALITY This notice is intended to bring the City of Ashland Employee Benefit Plan into compliance with the requirements of Section 164.504(f) of the Health Insurance Portability and Accountability Act of 1996 and its implementing regulations, 45 C.F.R. parts 160 through 164 (the 'HIPAA Privacy Rule') by SingleSource Self-Insured 70 establishing the conditions under which the Plan Sponsorwill receive, use and/or disclose protected health information. Permitted Disclosures of Protected Health Information to the Plan Sponsor Subject to the conditions of the 'No Disclosure of Protected Health Information to the Employer Without Certification by Employer' and 'Conditions of Disclosure of Protected Health Information to the Employer', the plan (and any third party administrator or business associate acting on behalf of the plan) may disclose individuals' protected health information to the Plan Sponsorfor the Plan Sponsoror PacificSource to carry out plan administration functions. The plan (and any third party administrator or business associate acting on behalf of the plan) may not disclose individuals' protected health information to the Plan Sponsor for employment-related actions and decisions or in connection with any other benefit or employee benefit plan of the Plan Sponsor. No Disclosure of Protected Health Information to the Plan Sponsor without Certification by Plan Sponsor Except as provided below in 'Disclosures of Summary Health Information and Enroll ment/Disenrollment Information to the Employer,' with respect to the plan's disclosure of summary health information and enrollment/disenrollment information, the plan will not disclose protected health information to any employee of the Plan Sponsor. Conditions of Disclosure of Protected Health Information to the Plan Sponsor The Plan Sponsor certifies that the plan has been amended to incorporate this section and agrees to the following restrictions and conditions of receiving protected health information (other than summary health information or enrollment/disenrollment information as explained in 'Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor' below). The Plan Sponsor shall: • Not use or further disclose the protected health information other than as permitted or required herein or as required by law. • Ensure that any agent(s), including a subcontractor, to whom it provides protected health information received from the plan agrees to the same restrictions and conditions that apply to the Plan Sponsor with respect to such protected health information. • Not use or disclose protected health information for employment-related actions and decisions or in connection with any other benefit or employee benefit plan of the Plan Sponsor. • Report to the plan any use or disclosure of protected health information that is inconsistent with the uses or disclosures provided for of which the Plan Sponsor becomes aware. • Make available protected health information to comply with an individual's right to access protected health information in accordance with 45 C.F.R. Section 164.524. • Make available protected health information for amendment and incorporate any amendments to protected health information in accordance with 45 C.F.R. Section 164.526. • Make available the information required to provide an accounting of disclosures in accordance with 45 C.F.R. §164.528. • Make its internal practices, books and records relating to the use and disclosure of protected health information received from the plan available to the Secretary of the Department of Health and Human Services for purposes of determining compliance by the plan with the HIPAA Privacy Rule. • If feasible, return or destroy all protected health information received from the plan that the Plan Sponsor still maintains in any form and retain no copies of such information when no longer needed for the purpose for which disclosure was made, except that, if such return or destruction is not feasible, the Plan Sponsor will limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible. • Ensure that the required adequate separation, described in 'Required Separation Between the Plan and the Plan Sponsor' below, is established and maintained. SingleSource Self-Insured 71 Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor • The plan (or a third party administrator of the plan) may disclose summary health information to the Plan Sponsor without the need to comply with the conditions and restrictions of 'No Disclosure of Protected Health Information to the Plan Sponsor Without Certification by Plan Sponsor and 'Conditions of Disclosure of Protected Health Information to the Plan Sponsor', if the Plan Sponsor requests the summary health information for the purpose of: - Obtaining premium bids from health plans (including health insurance issuers) for providing health insurance coverage under the plan; or - Modifying, amending, or terminating the plan • The plan (or a third party administrator of the plan) may disclose information on whether the individual is participating in the group health plan, or is enrolled in or has disenrolled from the plan without the need to comply with the conditions and restrictions of 'No Disclosure of Protected Health Information to the Plan Sponsor Without Certification by Plan Sponsor' and 'Conditions of Disclosure of Protected Health Information to the Plan Sponsor' Required Separation between the Plan and the Plan Sponsor • The following classes of employees or other persons under the control of the Plan Sponsor will have access to protected health information received from the plan (or from a health insurance issuer with respect to the plan): - Human Resources • No other persons shall have access to protected health information. The listed classes of employees or other persons under the control of the Plan Sponsor will have access to protected health information solely to perform the plan administration functions that the Plan Sponsor performs for the plan. They will be subject to disciplinary action and/or sanctions (including termination of employment or affiliation with the Plan Sponsor) for any use or disclosure of protected health information in violation of the provisions of this plan. DEFINITIONS Wherever used in this plan, the following definitions apply to the terms listed below, and the masculine includes the feminine and the singular includes the plural. For the purpose of this plan, 'employee' includes the Plan Sponsor when covered by this plan. Other terms are defined where they are first used in the text. Abutment is a tooth used to support a prosthetic device (bridges, partials or overdentures). With an implant, an abutment is a device placed on the implant that supports the implant crown. Accident means an unforeseen or unexpected event causing injury that requires medical attention. Actively at work or active employment means that an employee is performing in the customary manner all of the regular duties of his/her occupation with the Plan Sponsor, either at one of the Plan Sponsor's regular places of business or at some location to which the Plan Sponsor's business requires the employee to travel to perform his/her regular duties assigned by the Plan Sponsor. An employee is also considered to be actively at work on each day of a regular paid vacation or non-work day, but only if the employee is performing in the customary manner all of the regular duties of the employee's occupation with the Plan Sponsor on the immediately preceding regularly scheduled workday. Advanced diagnostic imaging means diagnostic examinations using CT scans, MRIs, PET scans, CATH labs, and nuclear cardiology studies. Adverse benefit determination means a denial, reduction, or termination of a healthcare item or service, or a failure or refusal to provide or to make a payment in whole or in part for a healthcare item or service, that is based on the Plan Sponsor's or PacificSource's: • Denial of eligibility for or termination of enrollment in a health benefit plan; • Rescission or cancellation of a policy or coverage; • Imposition of a source-of-injury exclusion, network exclusion, annual benefit limit or other limitation on otherwise covered items or services; SingleSource Self-Insured 72 Determination that a healthcare item or service is experimental, investigational, or not medically necessary, effective, or appropriate, or Determination that a course or plan of treatment that a member is undergoing it an active course of treatment for purposes of continuity of care under ORS 743.854. Advantage Essential Network is the exclusive provider network that provides dental care to members under this plan. Allowable fee is the dollar amount established by the plan for reimbursement of charges for specific services or supplies provided by nonparticipating providers. The plan uses several sources to determine the allowable amount. Depending on the service or supply and the geographical area in which it is provided, the allowable amount may be based on data collected from the Centers for .Medicare and Medicaid Services (CMS), Viant Health Payment Solutions, other nationally recognized databases, or PacificSource. Where the provider network is deemed adequate, the allowable fee for professional services is based on PacificSource's standard participating provider reimbursement rate or a contracted reimbursement rate. Outside the PacificSource service area and in areas where the participating provider network is not deemed adequate, the allowable fee is based on the usual, customary, and reasonable charge (UCR) at the 85th percentile. UCR is based on data collected for a geographic area. Provider charges for each type of service are collected and ranked from lowest to highest. Charges at the 85th position in the ranking are considered to be the 85th percentile. Alveolectomy is the removal of bone from the socket of a tooth. Amalgam is a silver-colored material used in restoring teeth. Ambulatory surgical center means a facility licensed by the appropriate state or federal agency to perform surgical procedures on an outpatient basis. Ancillary Services means service rendered in connection with Inpatient or Outpatient care in a Hospital or in connection with a medical emergency, such as assistant surgeon, anesthesiology, ambulance, pathology and radiology. Approved clinical trials are Phase I, 11, III, or IV clinical trials for the prevention, detection, or treatment of cancer or another life-threatening condition or disease. Authorized representative is an individual who by law or by the contest of a person may act on behalf of the person. Benefit year means the 12-month period beginning on each January 1 and ending on the next December 31. Cardiac rehabilitation refers to a comprehensive program that generally involves medical evaluation, prescribed exercise, and cardiac risk factor modification. Education, counseling, and behavioral interventions are sometimes used as well. Phase I refers to inpatient services that typically occur during hospitalization for heart attack or heart surgery. Phase 11 refers to a short-term outpatient program, usually involving ECG-monitored exercise. Phase III refers to a long-term program, usually at home or in a community-based facility, with little or no ECG monitoring. Cast restoration includes crowns, inlays, onlays, and other restorations made to fit a patient's tooth that are made at a laboratory and cemented onto the tooth. Certificate of Creditable Coverage means a certificate or other documentation that shows previous health insurance coverage for a member and can be used to reduce the length of any pre-existing condition exclusions under a plan. See Creditable coverage. Chemical dependency means the addictive relationship with any drug or alcohol characterized by either a physical or psychological relationship, or both, that interferes with the individual's social, psychological, or physical adjustment to common problems on a recurring basis. Chemical dependency does not include addiction to, or dependency on, tobacco products or foods. Claims Administrator means the organization selected by the City of Ashland to provide claims processing and adjudication under their plans. The Claims Administrator for their medical, vision and pharmacy coverage is PacificSource. Composite resin is a tooth-colored material used in restoring teeth. Contracted amount means the amount that participating providers have contracted to accept as payment in full for covered expenses under the plan. SingleSource Self-Insured 73 Co-payment or co-insurance is the out-of-pocket amount a member is required to pay to a provider. Creditable coverage means a member's prior health coverage that meets the following criteria: • There was no more than a 63-day break between the last day of coverage under the previous policy and the first day of coverage under this policy. The 63-day limit excludes the Plan Sponsor's eligibility waiting period. • The prior coverage was one of the following types of insurance: group coverage (including Federal Employee Health Benefit Plans and Peace Corps), individual coverage (including student health plans), Medicaid, Medicare, TRICARE, Indian Health Service or tribal organization coverage, state high-risk pool coverage, and public health plans. Curettage is the scraping and cleaning of the walls of a real or potential space, such as a gingival pocket or bone, to remove pathological material. Custodial Care means non-medical care that is primarily to assist with activities of daily living, whether or not the care is administered by a licensed provider. Deductible means the portion of the healthcare expense that must be paid by the member before the benefits of this plan are applied. Dental emergency means the sudden and unexpected onset of a condition, or exacerbation of an existing condition, requiring necessary care to control pain, swelling or bleeding in or around the teeth and gums. Such emergency care must be provided within 48 hours following the onset of the emergency and includes treatment for acute infection, pain, swelling, bleeding, or injury to natural teeth and oral structures. The emergency care does not include follow-up care such as, but not limited to, crowns, root canal therapy, or prosthetic benefits. Dentist means a person acting within the scope of their license, holding the degree of Doctor of Medicine (M.D:), Doctor of Dental Surgery (D.D.S.), or Doctor of Dental Medicine (D.M.D.), and who is legally entitled to practice dentistry in all its branches under the laws of the state or jurisdiction where the services are rendered. Durable medical equipment means equipment that can withstand repeated use, is primarily and customarily used to serve a medical purpose rather than convenience or comfort; is generally not useful to a person in the absence of an illness or injury; is appropriate for use in the home; and is prescribed by a physician. Examples of durable medical equipment include but are not limited to hospital beds, wheelchairs, crutches, canes, walkers, nebulizers, commodes, suction machines, traction equipment, respirators, TENS units, and hearing aids. Durable medical equipment supplier means a PacificSource contracted provider or a provider that satisfies the criteria in the Medicare Qualify Standards for Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, Supplies (DMEPOS) and Other Items and Services Summary Plan Description. Elective surgery or procedure refers to a surgery or procedure for a'condition that does not require immediate attention and for which a delay would not have a substantial likelihood of adversely affecting the health of the patient. Eligible dental provider means a physician, dentist, oral surgeon, endodontist, orthodontist, periodontist, or pedodontist. Eligible provider may also include a denturist or dental hygienist to the extent that he/she operates within the scope of their license. Emergency medical condition means a medical condition: • That manifests itself by acute symptoms of sufficient severity, including severe pain that a prudent layperson possessing an average knowledge of health and medicine would reasonably expect that failure to receive immediate medical attention would: - Place the health of a person, or an unborn child in the case of a pregnant woman, in serious jeopardy; - Result in serious impairment to bodily functions; or - Result in serious dysfunction of any bodily organ or part; or • With respect to a pregnant woman who is having contractions, for which there is inadequate time to affect a safe transfer to another hospital before delivery or for which a transfer may pose a threat to the health or safety of the woman or the unborn child. Emergency medical screening exam means the medical history, examination, ancillary tests, and medical determinations required to ascertain the nature and extent of an emergency medical condition. SingleSource Self-Insured 74 Emergency services means, with respect to an emergency medical condition: An emergency medical screening exam that is within the capability of the emergency department of a hospital, including ancillary services routinely available to the emergency department to evaluate such emergency medical condition; and • Such further medical examination and treatment as are required under 42 U.S.C. 1395dd to stabilize the patient to the extent the examination and treatment are within the capability of the staff and facilities available at a hospital. Employee means any individual employed by a Plan Sponsor. Endorsement is a written attachment that alters and supersedes any of the terms or conditions set forth in this contract. Enrollee means an employee, dependent of the employee, or individual otherwise eligible and enrolled for coverage under this plan. In this policy, enrollee is referred to as subscriber or member. Essential health benefits are services defined as such by the Secretary of the U.S. Department of Health and Human Services. Essential health benefits fall into the following categories: • Ambulatory patient services; • Emergency services; • Hospitalization; • Maternity and newborn care; • Mental health and substance use disorder services, including behavioral health treatment; • Prescription drugs; • Rehabilitative and habilitative services and devices, • Laboratory services; • Preventive and wellness services and chronic disease management; and • Pediatric services, including oral and vision care. Exclusion period means a period during which specified conditions, treatments or services are excluded from coverage. Experimental or investigational procedures means services, supplies, protocols, procedures, devices, chemotherapy, drugs or medicines, or the use thereof, that are experimental or investigational for the diagnosis and treatment of illness or injury. • Experimental or investigational services and supplies include, but are not limited to, services, supplies, procedures, devices, chemotherapy, drugs or medicines, or the use thereof, which at the time they are rendered and for the purpose and in the manner they are being used: - Have not yet received full U.S. government agency required approval (e.g., FDA) for other than experimental, investigational, or clinical testing; - Are not of generally accepted medical practice in the state of Oregon or as determined by PacifcSource in consultation with medical advisors, medical associations, and/or technology resources; - Are not approved for reimbursement by the Centers for Medicare and Medicaid Services, - Are furnished in connection with medical or other research; or - Are considered by any governmental agency or subdivision to be experimental or investigational, not considered reasonable and necessary, or any similar finding. • When making decisions about whether treatments are investigational or experimental, PacifcSource relies on the above resources as well as: - Expert opinions of specialists and other medical authorities; - Published articles in peer-reviewed medical literature; - External agencies whose role is the evaluation of new technologies and drugs; and - External review by an independent review organization. SingleSource Self-Insured 75 • The following will be considered in making the determination whether the service is in an experimental and/or investigational status: - Whether there is sufficient evidence to permit conclusions concerning the effect of the . services on health outcomes; Whether the scientific evidence demonstrates that the services improve health outcomes as much or more than established alternatives; - Whether the scientific evidence demonstrates that the services' beneficial effects outweigh any harmful effects; and - Whether any improved health outcomes from the services are attainable outside an investigational setting. Formulary is a list of approved brand name medications used to treat various medical conditions. The formulary list is developed by the pharmacy benefits management company and PacificSource. Generic drugs are drugs that, under federal law, require a prescription by a licensed physician (M.D. or D.C.) or other licensed medical provider and are not a brand name medication. By law, generic drugs must have the same active ingredients as the brand name medication and are subject to the same standards of their brand name counterpart. Grievance means: • A request submitted by a member or an authorized representative of a member; - In writing, for an internal appeal or an external review; or - In writing or orally, for an expedited internal review or an expedited external review; or • A written complaint submitted by a member or an authorized representative of a member regarding: - The availability, delivery, or quality of a healthcare service; - Claims payment, handling, or reimbursement for healthcare services and, unless the member has not submitted a request for an internal appeal, the complaint is not disputing an adverse benefit determination; or - Matters pertaining to the contractual relationship between a member and PacificSource. Health care provider means a physician, practitioner, nurse, hospital or specialized treatment facility as defined in this document. Health benefit plan means any hospital expense, medical expense, or hospital or medical expense policy or certificate, healthcare contractor or health maintenance organization subscriber contract, or any plan provided by a multiple employer welfare arrangement or by another benefit arrangement defined in the federal Employee Retirement Income Security Act of 1974, as amended, to the extent that plan is subject to state regulation. Hearing aids mean any nondisposable, wearable instrument or device designed to aid or compensate for impaired human hearing and any necessary ear mold, part, attachments or accessory for the instrument or device, except batteries and cords. Hearing aids include any amplifying device that does not produce as its output an electrical signal that directly stimulates the auditory nerve. For the purpose of this definition, such amplifying devices include air conduction and bone conduction devices, as well as those that provide vibratory input to the middle ear. Homebound means the ability to leave home only with great difficulty with absences infrequently and of short duration. Infants and toddlers will not be considered homebound without medical documentation that clearly establishes the need for home skilled care. Lack of transportation is not considered sufficient medical criterion for establishing that a person is homebound. Hospital means an institution licensed as a 'general hospital' or'intermediate general hospital' by the appropriate state agency in the state in which it is located. Illness includes a physical or mental condition that results in a covered expense. Physical illness is a disease or bodily disorder. Mental illness is a psychological disorder that results in pain or distress and substantial impairment of basic or normal functioning. Incurred expense means charges of a healthcare provider for services or supplies for which a member becomes obligated to pay. The expense of a service is incurred on the day the service is rendered, and the expense of a supply is incurred on the day the supply is delivered. SingleSource Self-Insured 76 Initial enrollment period means a period of 60 days following the date an individual is first eligible to enroll. Injury means bodily trauma or damage that is independent of disease or infirmity. The damage must be caused solely by external and accidental means and does not include muscular strain sustained while performing a physical activity. Inquiry means a written request for information or clarification about any subject matter related to the member's health benefit plan. Internal appeal means a review by PacificSource or your Plan Sponsor of an adverse benefit determination made by PacificSource. Leave of absence is a period of time off work granted to an employee by the Plan Sponsor at the employee's request and during which the employee is still considered to be employed and is carried on the employment records of the Plan Sponsor. A leave can be granted for any reason acceptable to the Plan Sponsor, including disability and pregnancy. Lifetime means the period of time a member is enrolled in this plan or any other Plan Sponsored by the Plan Sponsor. Mastectomy is the surgical removal of all or part of a breast or a breast tumor suspected to be malignant. Medically necessary means those services and supplies that are required for diagnosis or treatment of illness or injury and that are: • Consistent with the symptoms or diagnosis and treatment of the condition; • Consistent with generally accepted standards of good medical practice in the state of Oregon, or expert consensus physician opinion published in peer-reviewed medical literature, or the results of clinical outcome trials published in peer-reviewed medical literature; • As likely to produce a significant positive outcome as, and no more likely to produce a negative outcome than, any other service or supply, both as to the disease or injury involved and the patient's overall health condition; • Not for the convenience of the member or a provider of services or supplies; • The least costly of the alternative services or supplies that can be safely provided. When specifically applied to a hospital inpatient, it further means that the services or supplies cannot be safely provided in other than a hospital inpatient setting without adversely affecting the patient's condition or the quality of medical care rendered. Services and supplies intended to diagnose or screen for a medical condition in the absence of signs or symptoms, or of abnormalities on prior testing, including exposure to infectious or toxic materials or family history of genetic disease, are not considered medically necessary under this definition (see General Exclusions - Screening tests). Medical supplies means items of a disposable nature that may be essential to effectively carry out the care a physician has ordered for the treatment or diagnosis of an illness or injury. Examples of medical supplies include but are not limited to syringes and needles, splints and slings, ostomy supplies, sterile dressings, elastic stockings, enteral foods, drugs or biologicals that must be put directly into the equipment in order to achieve the therapeutic benefit of the durable medical equipment or to assure the proper functioning of this equipment (e.g. Albuterol for use in a nebulizer). Member means an individual insured through the Plan Sponsor. Mental and/or chemical healthcare facility means a corporate or governmental entity or other provider of services for the care and treatment of chemical dependency and/or mental or nervous conditions which is licensed or accredited by the Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities for the level of care which the facility provides. Mental and/or chemical healthcare program means a particular type or level of service that is organizationally distinct within a mental and/or chemical healthcare facility. Mental and/or chemical healthcare provider means a person that has met the credentialing requirements of PacificSource, is otherwise eligible to receive reimbursement under the policy and is: • A healthcare facility where appropriately licensed or accredited by the Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities; • A residential program or facility; SingleSource Self-Insured 77 • A day or partial hospitalization program; • An outpatient service; or • An individual behavioral health or medical professional authorized for reimbursement under Oregon law. Mental or nervous conditions means all disorders listed in the 'Diagnostic and Statistical Manual of Mental Disorders, DSM-IV-TR, Fourth Edition' except for: • Mental Retardation (diagnostic codes 317, 318.0, 318.1, 318.2,,319); • Learning Disorders (diagnostic codes 315.00, 315.1, 315.2, 315.9); • Paraphilias (diagnostic codes 302.4, 302.81, 302.89, 302.2, 302.83, 302.84, 302.82, 302.9); and • Gender Identity Disorders in Adults (diagnostic codes 302.85, 302.6, 302.9 - this exception does not extend to children and adolescents 18 years of age or younger); and • 'V' codes (diagnostic codes V15.81 through V71.09 - this exception does not extend to children five years of age or younger for diagnostic codes V61.20, V61.21, and V62.82). Network not available means a member does not have reasonable geographic access to a PacificSource participating provider for a medical service or supply. Non-participating provider is a provider of covered medical services or supplies that does not directly or indirectly hold a provider contract or agreement with PacificSource. Non-preferred drugs are covered brand name medications not on the Preferred Drug List. Orthotic devices means rigid or semirigid devices supporting a weak or deformed leg, foot, arm, hand, back or neck or restricting or eliminating motion in a diseased or injured leg, foot, arm, hand, back or neck. Benefits for orthotic devices include orthopedic appliances or apparatus used to support, align, prevent, or correct deformities or to improve the function of movable parts of the body. An orthotic device differs from a prosthetic in that, rather than replacing a body part, it supports and/or rehabilitates existing body parts. Orthotic devices are usually customized for an individual's use and are not appropriate for anyone else. Examples of orthotic devices include but are not limited to Ankle Foot Orthosis (AFO), Knee Ankle Foot Orthosis (KAFO), Lumbosacral Orthosis (LSO), and foot orthotics. PacificSource refers to PacificSource Health Plans. PacificSource is the claims administrator of the Plan Sponsor's medical, vision and pharmacy coverage. References to PacificSource as paying claims or issuing benefits means that PacificSource processes a claim in accordance with the provisions of the Plan Sponsor's plans. Participating provider means a physician, healthcare professional, hospital, medical facility, or supplier of medical supplies that directly or indirectly holds a provider contract or agreement with the plan. Periapical x-ray is an x-ray of the area encompassing or surrounding the tip of the root of a tooth. Periodontal maintenance is a periodontal procedure for patients who have previously been treated for periodontal disease. In addition to cleaning the visible surfaces of the teeth (as in prophylaxis) surfaces below the gum-line are also cleaned. This is a more comprehensive service than a regular cleaning (prophylaxis). Periodontal scaling and root planing means the removal of plaque and calculus deposits from the root surface under the gum line. Physical/occupational therapy is comprised of the services provided by (or under the direction and supervision of) a licensed physical or occupational therapist. Physical/occupational therapy includes emphasis on examination, evaluation, and intervention to alleviate impairment and functional limitation and to prevent further impairment or disability. Physician means a state-licensed Doctor of Medicine (M.D.) or a Doctor of Osteopathy (D.O.). Physician assistant is a person who is licensed by an appropriate state agency as a physician assistant. Plan means the City of Ashland Employee Benefits Plan, and all documents, including any insurance contracts, administrative service agreements, Summary Plan Descriptions. and any related terms and conditions associated with the Plan. SingleSource Self-Insured 78 Plan Administrator means the Risk Services Division of the City of Ashland, which has responsibility for the management of the plan. Plan Sponsor ('the Plan Sponsor or'your Plan Sponsor), means the City of Ashland. The City of Ashland is the fiduciary of the plan, and exercises all discretionary authority and control over the administration of the plan and the management and disposition of plan assets. The Plan Sponsor shall have the sole discretionary authority to determine eligibility for plan benefits or to construe the terms of the plan, and benefits under the plan will be paid only if the Plan Sponsor decides, in its discretion, that the member or beneficiary is entitled to such benefits. The Plan Sponsor has the right to amend, modify, or terminate the plan in any manner, at any time, regardless of the health status of any plan member or beneficiary. Practitioner means Doctor or Medicine (M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery (D.D.S.), Doctor of Dental Medicine (D.M.D.), Doctor of Podiatry Medicine (D.P.M.), Doctor of Chiropractic (D.C.), Doctor of Optometry (O.D.), Licensed Nurse Practitioner (including Certified Nurse Midwife (C.N.M.) and Certified Registered Nurse Anesthetist (C.R.N.A.)), Registered Physical Therapist (R.P.T.), Speech Therapist, Occupational Therapist, Psychologist (Ph.D.), Licensed Clinical Social Worker (L.C.S.W.), Licensed Professional Counselor (L.P.C.), Licensed Marriage and Family Therapist (LMFT), Licensed Psychologist Associate (LPA), Physician Assistant (PA), Audiologist, Acupuncturist, Naturopathic Physician, and Licensed Massage Therapist. Pre-existing condition means a condition (physical or mental) for which medical advice, diagnosis, care, or treatment was recommended by or received from a licensed provider within the six-month period ending on the enrollment date. For the purpose of this definition, the enrollment date of a member is the earlier of the effective date of coverage or the first day of any required group eligibility waiting period, and the enrollment date of a late enrollee is the effective date of coverage. Pregnancy does not constitute a pre-existing condition, nor does genetic information without a diagnosis of a condition related to such information. Preferred is a list of approved brand name medications used to treat various medical conditions. The Preferred Drug List is developed by the pharmacy benefits management company and PacificSource. Prescription drugs are drugs that, under federal law, require a prescription by a licensed physician (M.D. or D.O.) or other licensed medical provider. Prophylaxis is a cleaning and polishing of all teeth. Prosthetic devices (excluding dental) means artificial limb devices or appliances designed to replace in whole or in part an arm or a leg. Benefits for prosthetic devices include coverage of devices that replace all or part of an internal or external body organ, or replace all or part of the function of a permanently inoperative or malfunctioning internal or external organ, and are furnished on a physician's order. Examples of prosthetic devices include but are not limited to artificial limbs, cardiac pacemakers, prosthetic lenses, breast prosthesis (including mastectomy bras), and maxillofacial devices. Pulpotomy is the removal of a portion of the pulp, including the diseased aspect, with the intent of maintaining the vitality of the remaining pulpal tissue by means of a therapeutic dressing. Qualified domestic partner means a registered domestic partner or unregistered same gender domestic partner with an Affidavit of Domestic Partnership, supplied by the Plan Sponsor. Restoration is the treatment that repairs a broken or decayed tooth. Restorations include, but are not limited to, fillings and crowns. Routine costs of care means medically necessary conventional care, items, or services covered by the health benefit plan if typically provided absent a clinical trial. Routine costs of care do not include: • The drug, device, or service being tested in the clinical trial unless the drug, device, or service would be covered for that indication by the policy if provided outside of a clinical trial; • Items or services required solely for the provisions of the drug, device, or service being tested in the clinical trial; • Items or services required solely for the clinically appropriate monitoring of the drug, device, or service being tested in the clinical trial; • Items of services required solely for the prevention, diagnosis, or treatment of complications arising from the provision of the drug, device, or service being tested in the clinical trial; • Items or services that are provided solely to satisfy data collection and analysis needs and that are not used in the direct clinical management of the patient; SingleSource Self-Insured 79 • Items or services customarily provided by a clinical trial sponsor free of charge to any participant in the clinical trial; or • Items or services that are not covered by the policy if provided outside of the clinical trial. Seasonal employee is an employee who is hired with the agreement that their employment will end after a predetermined period of time. Skilled nursing facility convalescent home means an institution that provides skilled nursing care under the supervision of a physician, provides 24-hour nursing service by or under the supervision of a registered nurse (R.N.), and maintains a daily record of each patient. Skilled nursing facilities must be licensed by an appropriate state agency and approved for payment of Medicare benefits to be eligible for reimbursement. Specialized treatment facility means a facility that provides specialized short-term or long-term care. The term specialized treatment facility includes ambulatory surgical centers, birthing centers, chemical dependency/substance abuse day treatment facilities, hospice facilities, inpatient rehabilitation facilities, mental and/or chemical healthcare facilities, organ transplant facilities, psychiatric day treatment facilities, residential treatment facilities, skilled nursing facilities, substance abuse treatment facilities, and urgent care treatment facilities. Specialty drugs are high dollar oral, injectable, infused or inhaled biotech medications prescribed for the treatment of chronic and/or genetic disorders with complex care issues that have to be managed. The major conditions these drugs treat include but are not limited to: cancer, HIV/AIDS, hemophilia, hepatitis C, multiple sclerosis, Crohn's disease, rheumatoid arthritis, and growth hormone deficiency. Specialty pharmacies specialize in the distribution of specialty drugs and providing pharmacy care management services designed to assist patients in effectively managing their condition. Stabilize means to provide medical treatment as necessary to ensure that, within reasonable medical probability, no material deterioration of an emergency medical condition is likely to occur during or to result from the transfer of the patient from a facility; and with respect to a pregnant woman who is in active labor, to perform the delivery, including the delivery of the placenta. Subscriber means an employee or former employee insured under the Plan Sponsor's health policy through PacificSource. When a family unit that does not include an employee or former employee is insured under a policy, the oldest family member is referred to as the subscriber. Surgical procedure means any of the following operative procedures: • Procedures accomplished by cutting or incision • Suturing of wounds • Treatment of fractures, dislocations, and burns • Manipulations under general anesthesia • Visual examination of the hollow organs of the body including biopsy, or removal of tumors or foreign body • Procedures accomplished by the use of cannulas, needling, or endoscopic instruments • Destruction of tissue by thermal, chemical, electrical, laser, or ultrasound Telemedical means medical services delivered through a two-way video communication that allows a provider to interact with a patient who is at a different physical location than the provider. Temporomandibular Joint Disorder (TMJ) means any dysfunction or disorder of the jaw joint resulting in pain and impairment of the jaw. Third Party Administrator is an administrator hired by the Plan Sponsor to perform claims processing and other specified administrative services in relation to the plan. The third party administrator is not an insurer of health benefits under this plan, is not a fiduciary of the plan, and does not exercise any of the discretionary authority and responsibility granted to the Plan Sponsor. The third party administrator is not responsible for plan financing and does not guarantee the availability of benefits under this plan. The third party administrator is PacificSource Health Plans Tobacco use cessation program means a program recommended by a physician that follows the United States Public Health Services guidelines for tobacco use cessation. Tobacco use cessation program includes education and medical treatment components designed to assist a person in ceasing the use of tobacco products. SingleSource Self-Insured 80 Unregistered domestic partner means an individual of the same-gender who is joined in a domestic partnership with the subscriber and meets the following criteria: • Is at least 18 years of age; • Not related to the policyholder by blood closer than would bar marriage in Oregon or the state where they have permanent residence and are domiciled; • Shares jointly the same permanent residence with the policyholder for at least six months immediately preceding the date of application to enroll and intent to continue to do so indefinitely; • Has joint financial accounts with the policyholder and has agreed to be jointly responsible with the policyholder for each others' common welfare, including basic living expenses, • Has an exclusive domestic partnership with the policyholder and has no other domestic partner; • Does not have a legally binding marriage nor has had another domestic partner within the previous six months, • Was mentally competent to consent to contract when the domestic partnership began and remains mentally competent. Urgent care treatment facility means a healthcare facility whose primary purpose is the provision of immediate, short-term medical care for minor, but urgent, medical conditions. Waiting period means the period of time before coverage becomes effective for a memberwho is otherwise eligible to enroll in the plan. Women's healthcare provider means an obstetrician, gynecologist, physician assistant or nurse practitioner specializing in women's health, or certified nurse midwife practicing within the applicable scope of practice. RIGHTS OF PLAN MEMBERS MEDICAID AND CHIP STATE CONTACT INFORMATION If you or your children are eligible for Medicaid or CHIP and you are eligible for health coverage from your Plan Sponsor, your State may have a premium assistance program that can help pay for coverage. These States use funds from their Medicaid or CHIP programs to help people who are eligible for these programs, but also have access to health insurance through their Plan Sponsor. If you or your children are not eligible for Medicaid or CHIP, you will not be eligible for these premium assistance programs. If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, you can contact your State Medicaid or CHIP office to find out if premium assistance is available. If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, you can contact your State Medicaid or CHIP office or dial 1-877-KIDS NOW or www.insurekidsnow.gov to find out how to apply. If you qualify, you can ask the State if it has a program that might help you pay the premiums for a Plan Sponsor-sponsored plan. Once it is determined that you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your Plan Sponsor plan, your Plan Sponsor must permit you to enroll in your Plan Sponsor plan if you are not already enrolled. This is called a'special enrollment' opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have questions about enrolling in your Plan Sponsor plan, you can contact the Department of Labor electronically at www.askebsa.dol.gov or by calling toll-free 1-866-444-EBSA (3272). If you live in one of the following States, you may be eligible for assistance paying your Plan Sponsor health plan premiums. The following list of States is current as of July 31, 2012. You should contact your State for further information on eligibility - SingleSource Self-Insured 81 ALABAMA - Medicaid COLORADO - Medicaid Website: http://www.medicaid.alabama.gov Medicaid Website: http://www.colorado.gov/ Phone: 1-855-692-5447 Medicaid Phone (In state): 1-800-866-3513 ALASKA - Medicaid Medicaid Phone (Out of state): 1-800-221-3943 Website: hftp:/thealth.hss.state.ak.us/dpa/programs/medicaid/ Phone (Outside of Anchorage): 1-888-318-8890 Phone (Anchorage): 907-269-6529 ARIZONA - CHIP FLORIDA - Medicaid Website: http://www.azaheccs.gov/applicants Website: https://www.flmedicaidtplrecovery.com/ Phone (Outside of Maricopa County): 1-877-764-5437 Phone: 1-877-357-3268 Phone (Maricopa County): 602-417-5437 GEORGIA - Medicaid Website: http://dch.georgia.gov/ Click on Programs, then Medicaid, then Health Insurance Premium Payment (HIPP) Phone: 1-800-869-1150 IDAHO - Medicaid and CHIP MONTANA - Medicaid Medicaid Website: Website: www.accesstohealthinsurance.idaho.gov http://medicaidprovider.hhs.mt.gov/clientpages/ Medicaid Phone: 1-800-926-2588 clientindex.shtml CHIP Website: www.medicaid.idaho.gov Phone: 1-800-694-3084 CHIP Phone: 1-800-926-2588 INDIANA - Medicaid NEBRASKA - Medicaid Website: http://www.in.gov/fssa Website: www.ACCESSNebraska.ne.gov Phone: 1-800-889-9949 Phone: 1-800-383-4278 IOWA - Medicaid NEVADA - Medicaid Website: www.dhs.state.ia.us/hipp/ Medicaid Website: http://dwss.nv.cov/ Phone: 1-888-346-9562 Medicaid Phone: 1-800-992-0900 KANSAS - Medicaid Website: http://www.kdheks.gov/hcf/ Phone: 1-800-792-4884 KENTUCKY - Medicaid NEW HAMPSHIRE - Medicaid Website: http://chfs.ky.gov/dms/default.htm Website: Phone: 1-800-635-2570 http://www.dhhs.nh.gov/oii/documents/hippapp.pdf Phone: 603-271-5218 LOUISIANA - Medicaid NEW JERSEY - Medicaid and CHIP Website: http:/Avwv.lahipp.dhh.louisiana.gov Medicaid Website: Phone: 1-888-695-2447 http://www.state.nj.us/humanservices/ MAINE - Medicaid dmahs/clients/medicaid/ Website: http://www.maine.gov/dhhs/of/public- Medicaid Phone: 1-800-356-1561 assistance/index.html CHIP Website: Phone: 1-800-977-6740 http://www.njfamilycare.org/index.htmi TTY 1-800-977-6741 CHIP Phone: 1-800-701-0710 MASSACHUSETTS - Medicaid and CHIP NEW YORK - Medicaid Website: http://www.mass.gov/MassHealth Website: Phone: 1-800-462-1120 http://v w .nyhealth.gov/health-care/medicaid/ Phone: 1-800-541-2831 MINNESOTA - Medicaid NORTH CAROLINA - Medicaid Website: http://www.dhs.state.mn.us/ Website: http://www.ncdhhs.gov/dma Click on Health Care, then Medical Assistance Phone: 919-855-4100 Phone: 1-800-657-3629 MISSOURI - Medicaid NORTH DAKOTA -Medicaid Website: Website: http://www.dss.mo.gov/mhd/participants/pages/hipp.ht http://www.nd.gov/dhs/services/medicalserv/medicai m d/ Phone: 573-751-2005 Phone: 1-800-755-2604 OKLAHOMA- Medicaid and CHIP UTAH - Medicaid and CHIP Website: http://www.insureoklahoma.org Website: http://health.utah.aov/upv Phone: 1-888-365-3742 Phone: 1-866-435-7414 OREGON - Medicaid and CHIP VERMONT- Medicaid Website: http://www.oregonhealthykids.gov Website: http://www.greenmountaincare.org/ http://www.hijossaludablesoregon.gov Phone: 1-800-250-8427 Phone: 1-877-314-5678 SingleSource Self-Insured 82 PENNSYLVANIA - Medicaid VIRGINIA - Medicaid and CHIP Website: http://www.dpw.state.pa.us/hipp Medicaid Website: http://www.dmas.virginia.gov/rcp- Phone:1-800-692-7462 HIPP.htm Medicaid Phone: 1-800-432-5924 CHIP Website: http://www.famis.org/ CHIP Phone: 1-866-873-2647 RHODE ISLAND - Medicaid WASHINGTON - Medicaid Website: www.ohhs.ri.gov Website: Phone: 401-462-5300 http://hrsa.dshs.wa.gov/premiumpymt/Apply.shtm Phone: 1-800-562-3022 ext. 15473 SOUTH CAROLINA - Medicaid WEST VIRGINIA - Medicaid Website: http://www.sodhhs.gov Website: www.dhhr.wv.gov/bms/ Phone: 1-888-549-0820 Phone: 1-877-598-5820, HMS Third Paqy_ LiaNlit SOUTH DAKOTA - Medicaid WISCONSIN - Medicaid Website: http://dss.sd.gov Website: http://www.badgercareplus.org/pubs/p- Phone: 1-888-828-0059 10095.htm Phone: 1-800-362-3002 TEXAS - Medicaid WYOMING - Medicaid Website: https://www.gethipptexas.com/ Website: Phone: 1-800-440-0493 http://health.wyo.gov/healthcarefin/equalityGare Phone: 307-777-7531 To see if any more States have added a premium assistance program since July 31, 2012, or for more information on special enrollment rights, you can contact either: U.S. Department of Labor U.S. Department of Health & Human Services Employee Benefits Security Administration Centers for Medicare & Medicaid Services www.dol.gov/ebsa www.cros.hhs.gov 1-866-444-EBSA (3272) 1-877-267-2323, Ext. 61565 OMB Control Number 1210-0137 (expires 09/30/2013) SingleSource Self-Insured 83 This page left intentionally blank. SingleSource Self-Insured 84 PLAN INFORMATION Name and Address of the Plan Sponsor City of Ashland 20 East Main Ashland, OR 97520 (541) 488-6002 Name and Address of the Designated Agent for Service of Legal Process Dave Kanner, City Administrator 20 East Main Ashland, OR 97520 541-488-6002 Name and Address of the Third Party Administrator PacificSource Health Plans PO Box 7068 Springfield, OR 97475-0068 (888) 977-9299 Fax: (541) 684-5264 cs@ pacificsou rce. com Internal Revenue Service and Plan Identification Number The corporate tax identification number assigned by the Internal Revenue Service is 936002117. Benefit Year The benefit year is the 12-month period of time beginning January 1 and ending December 31. Method of Funding Benefits Health benefits are self-insured from the general assets and or trust funds of the Plan Sponsor and are not guaranteed under an insurance policy or contract. The Plan Sponsor may purchase excess risk insurance coverage which is intended to reimburse the Plan Sponsorfor certain losses incurred and paid under the plan by the Plan Sponsor. Such excess risk coverage, if any, is not part of the plan. The cost of the plan is paid with contributions by the Plan Sponsor and participating employees: The Plan Sponsor determines the amount of contributions to the plan, based on estimates of claims and administration costs. Payments out of the plan to health care providers on behalf of the covered person will be based on the provisions of the plan. SingleSource Self-Insured 85 This page left intentionally blank. SingleSource Self-Insured 86 SIGNATURE PAGE The effective date of the Preferred 90+200 VAR GF 0812 is July 1, 2013. It is agreed by the City of Ashland that the provisions of this document are correct and will be the basis for the administration of the Preferred 90+200 VAR GF 0812. Dated this day of By Title SingleSource Self-Insured 87 This page left intentionally blank. SingleSource Self-Insured 88 CITY OJIF -ASH LA.N D City of Ashland - Parks Group No.: G0032482 Preferred 90+200 VAR GF 0812 Effective: July 1, 2013 Third Party Administrative Services Provided By: PaciticSource HEALTH PLANS SPD 0713 City of Ashland Parks SingleSource Self-Insured This page left intentionally blank. SingleSource Self-Insured 2 INTRODUCTION Welcome to your City of Ashland (also referred to as'the employer or'employee) group health plan. Your employer offers this coverage to help you and your family members stay well, and to protect you in case of illness or injury. Your plan includes a wide range of benefits and services, and PacificSource hopes you will take the time to become familiar with them. Your employer, who is also the Plan Sponsor, has prepared this document to help you understand how your plan works and how to use it. This document summarizes the benefits provided under the Preferred 90+200 VAR GF 0812 Plan (referred to as 'the plan' or'this plan' throughout this document). Please read it carefully and thoroughly. Your benefits are affected by certain limitations and conditions, which require you to be a wise consumer of health services and to use only those services you need. Also, benefits are not provided for certain kinds of treatments or services, even if your health care provider recommends them. The plan is a self-insured medical plan intended to meet the requirements of Sections 105(b), 105(h), and 106 of the Internal Revenue Code so that the portion of the cost of coverage paid by your Plan Sponsor, and any benefits received by you through this plan, are not taxable income to you. Your specific tax treatment will depend on your personal circumstances; the plan does not guarantee any particular tax treatment. You are solely responsible for any and all federal, state, and local taxes attributable to your participation in this plan, and the plan expressly disclaims any liability for such taxes. The plan is 'self-i nsured,' which means benefits are paid from your employer's general assets and or trust funds and are not guaranteed by an insurance company. The Plan Sponsor has contracted with a Third Party Administratorto perform certain administrative services related to this plan. PacificSource Health Plans is the Third Party Administrator and provides administrative services for this plan on behalf of the Plan Sponsor. If anything is unclear to you, PacificSource's staff is available to answer your questions. Please give them a call or visit them on the Internet at PacificSource.com. PacificSource looks forward to serving you and your family. PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extension 1009 cs@pacificsou rce. com This document serves as the written Plan document and Summary Plan Description (SPD). It is very important that you review the entire document carefully to confirm a complete understanding of the benefits available, as well as your responsibility, under the plan. This document is written in simple, easy-to-understand language. Technical terms are printed in italics and defined in the Plan Terms and Definitions section. This document explains the services covered by the plan; the benefit summaries tell you how much this plan pays toward expenses and amounts for which you are responsible. As used in this document, the word 'year' refers to the benefit year, which is the 12-month period beginning January 1 and ending December 31. The word lifetime as used in this document refers to the period of time you or your eligible dependents participate in this plan or any other plan sponsored by the Plan Sponsor. Any amount you or your eligible dependents have accumulated toward the benefit maximum amounts, deductible, or out-of-pocket maximum of any immediately prior plan sponsored by the Plan Sponsorwill be counted toward the benefit maximum amounts of this plan. The Plan Sponsor reserves the right to amend, modify, or terminate this plan in any manner, at any time, which may result in termination or modification of your coverage. If this plan is terminated, any plan assets will be used to pay for eligible expenses incurred prior to the plan's termination, and such expenses will be paid as provided under the terms of this plan prior to termination. If there is any conflict between this document and the underlying plan document(s), the plan document(s) control. SingleSource Self-Insured 3 This page felt intentionally blank. SingleSource Self-Insured 4 CONTENTS MEDICAL BENEFIT SUMMARY ....................................................................................3 PRESCRIPTION BENEFIT SUMMARY ..........................................................................5 CHIROPRACTIC CARE BENEFIT SUMMARY 9 ADDITIONAL ACCIDENT BENEFIT SUMMARY .........................................................11 VISION BENEFIT SUMMARY ......................................................................................13 DENTAL BENEFIT SUMMARY ....................................................................................15 ORTHODONTIA BENEFITS .........................................................................................17 USING THE PROVIDER NETWORK ............................................................................19 Preferred Provider Organization (PPO) .................................................................................................19 What is a PPO .......................................................................................................................................19 Who is Your PPO ...................................................................................................................................19 About Your PPO ....................................................................................................................................19 Non-PPO Providers ...............................................................................................................................20 Example of Provider Payment ...............................................................................................................20 Allowable Amount 20 NETWORK NOT AVAILABLE BENEFITS 20 COVERAGE WHILE TRAVELING 20 Nonemergency Care While Traveling ....................................................................................................21 Emergency Services While Traveling ....................................................................................................21 FINDING PARTICIPATING PROVIDER INFORMATION 21 TERMINATION OF PROVIDER CONTRACTS 21 BECOMING ELIBIGLE .................................................................................................22 Who Pays for Your Benefits ...................................................................................................................22 Who is Eligible .......................................................................................................................................22 ENROLLING DURING THE INITIAL ENROLLMENT PERIOD 23 Newborns 23 Adopted Children ...................................................................................................................................23 Family Members Acquired by Marriage .................................................................................................23 Family Members Acquired by Domestic Partnership .............................................................................23 Family Members Placed in Your Guardianship .....................................................................................24 Qualified Medical Child Support Orders ................................................................................................24 ENROLLING AFTER THE INITIAL ENROLLMENT PERIOD 24 Returning to Work after a Layoff ............................................................................................................24 Returning to Work after a Leave of Absence .........................................................................................24 Returning to Work after Family Medical Leave ......................................................................................24 Special Enrollment Periods ....................................................................................................................25 Dental Enrollment ..................................................................................................................................25 Late Enrollment ......................................................................................................................................25 Member ID Card ....................................................................................................................................26 PLAN SELECTION PERIOD 26 TERMINATING COVERAGE 26 Divorced Spouses ..................................................................................................................................26 Dependent Children ...............................................................................................................................26 Dissolution of Domestic Partnership ......................................................................................................26 SingleSource Self-Insured 5 Certificates of Creditable Coverage .......................................................................................................27 CONTINUATION OF COVERAGE 27 USERRA CONTINUATION 27 Surviving or Divorced Spouses and Qualified Domestic Partners .........................................................28 COBRA CONTINUATION 28 COBRA Eligibility 28 When Continuation Coverage Ends ......................................................................................................28 Type of Coverage 29 Your Responsibilities and Deadlines... 29 Continuation Premium ...........................................................................................................................29 Keep Your Plan Informed of Address Changes .....................................................................................29 CONTINUATION WHEN YOU RETIRE 29 WORK STOPPAGE 30 Labor Unions ..........................................................................................................................................30 COVERED EXPENSES ................................................................................................30 Medical Necessity ..................................................................................................................................30 Healthcare Providers .............................................................................................................................31 Your Annual Out-of-Pocket Limit ...........................................................................................................31 MEDICAL BENEFITS ...................................................................................................31 About Your Medical Benefits .................................................................................................................31 PLAN BENEFITS ..........................................................................................................33 PREVENTIVE CARE SERVICES 33 PROFESSIONAL SERVICES 35 HOSPITAL AND SKILLED NURSING FACILITY SERVICES 36 OUTPATIENT SERVICES 36 EMERGENCY SERVICES 37 MENTAL HEALTH AND CHEMICAL DEPENDENCY SERVICES 38 Mental Health and Chemical Dependency Services... 38 Medical Necessity and Appropriateness of Treatment ..........................................................................39 HOME HEALTH AND HOSPICE SERVICES 39 DURABLE MEDICAL EQUIPMENT .............................................................................40 TRANSPLANT SERVICES 41 Payment of Transplant Benefits .............................................................................................................42 OTHER COVERED SERVICES, SUPPLIES, AND TREATMENTS 42 BENEFIT LIMITATIONS AND EXCLUSIONS 45 Least Costly Setting for Services ...........................................................................................................45 EXCLUDED SERVICES 45 A Note About Optional Benefits .............................................................................................................45 Experimental or Investigational Treatment ............................................................................................49 EXCLUSION PERIODS 52 Exclusion Period for Transplant Benefits ...............................................................................................52 SingleSource Self-Insured 6 CREDIT FOR PRIOR COVERAGE 52 Evidence of Prior Creditable Coverage .................................................................................................52 HEALTH CARE MANAGEMENT AND PREAUTHORIZATION 52 What is Health Care Management .........................................................................................................52 Case Management .................................................................................................................................53 Individual Benefits Management ............................................................................................................54 HOW TO USE YOUR DENTAL PLAN 54 DENTAL PLAN BENEFITS ..........................................................................................54 COVERED DENTAL SERVICES 55 Class I Services - Diagnostic and Preventive Treatment 55 Class II Restorative Services - Basic and Restorative Treatment ........................................................55 Class If Complicated Services - Complicated Treatment 55 Class III Services - Major Treatment 56 ORTHODONTIA BENEFITS 56 EXCLUDED DENTAL SERVICES 56 CLAIMS Procedures 59 Questions about Your Claims ................................................................................................................59 Types of Claims 60 How to File a Claim ................................................................................................................................60 Incomplete Claims .................................................................................................................................62 Notification of Benefit Determination .....................................................................................................62 Adverse Benefit Determination ..............................................................................................................63 Your Right to Appeal ..............................................................................................................................63 Resources For Information And Assistance ..........................................................................................66 Plan Sponsors Discretionary Authority; Standard of Review ................................................................67 Coordination of Benefits .........................................................................................................................67 Order of Payment When Coordinating with Other Group Health Plans ................................................68 OTHER IMPORTANT PLAN PROVISIONS 69 Assignment of Benefits ..........................................................................................................................69 Proof of Loss ..........................................................................................................................................69 No Verbal Modifications of Plan Provisions ...........................................................................................69 Reimbursement to the Plan ...................................................................................................................70 Subrogation 70 Recovery of Excess Payments ..............................................................................................................71 Right To Receive and Release Necessary Information .........................................................................71 Reliance on Documents and Information ...............................................................................................71 No Waiver ..............................................................................................................................................71 Physician/Patient Relationship ..............................................................................................................72 Plan not responsible for Quality of Health Care ....................................................................................72 Plan is not a Contract of Employment ...................................................................................................72 Right to Amend or Terminate Plan ........................................................................................................72 Applicable Law .......................................................................................................................................72 PRIVACY AND CONFIDENTIALITY 72 Permitted Disclosures of Protected Health information to the Plan Sponsor ........................................73 No Disclosure of Protected Health Information to the Plan Sponsor without Certification by Plan Sponsor 73 Conditions of Disclosure of Protected Health Information to the Plan Sponsor ....................................73 Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor 74 Required Separation between the Plan and the Plan Sponsor .............................................................74 DEFINITIONS 74 SingleSource Self-Insured 7 RIGHTS OF PLAN MEMBERS 83 SingleSource Self-Insured 8 Grandfathered Health Plan The Plan Sponsor believes this plan is a 'grandfathered health plan' under the Patient Protection and Affordable Care Act (the Affordable Care Act). As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted. Being a grandfathered health plan means that your plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing. However, grandfathered health plans must comply with certain other consumer protections in the Affordable Care Act, for example, the elimination of lifetime limits on benefits. Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be directed to the Plan Sponsor, or you may contact PacificSource at: PacificSource Health Plans PO Box 7068 Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 email: cs@pacificsource.com SingleSource Self-Insured 1 This page left intentionally blank. SingleSource Self-Insured 2 MEDICAL BENEFIT SUMMARY POLICY INFORMATION Group Name: City of Ashland Group Number: G0032482 Plan Name: Preferred 90+200 VAR GF 0812 Provider Network: Preferred PSN EMPLOYEE ELIGIBILITY REQUIREMENTS Minimum Hour Requirement: Full Time: 40 hours, Part Time: 20-39 hours Waiting Period for New Employees: 1 st day of the month following one (1) day. A person hired on the first day of the month is eligible on the first day of the following month. ANNUAL DEDUCTIBLE $200 per person / $600 per family The deductible is an amount of covered medical expenses the member pays each benefit year before the plan's benefits begin. The deductible applies to all services and supplies except those marked with an asterisk Once a member has paid a total amount toward covered expenses during the benefit year equal to the per person amount listed above, the deductible will be satisfied for that person for the rest of that benefit year. Once any covered family members have paid a combined total toward covered expenses during the benefit year equal to the per family amount listed above, the deductible will be satisfied for all covered family members for the rest of that benefit year. Deductible expense is not applied to the out-of-pocket limit. ANNUAL OUT-OF-POCKET LIMIT Participating Providers....... - _ $700 per person / $1,400 per family Non-participating Providers ..........................................$1,700 per person / $3,400 per family Only participating provider expense applies to the participating provider out-of-pocket limit and only non- participating provider expense applies to the non-participating out-of-pocket limit. Once the participating provider out-of-pocket limit has been met, this plan will pay 100% of covered charges (after the co-payment is deducted) for participating and network not available providers for the rest of that benefit year. Once the non-participating provider out-of-pocket limit has been met, this plan will pay 100% of covered charges (after the co-payment is deducted) for non-participating providers for the rest of that benefit year. Deductibles, co-payments, benefits paid in full and non-participating provider charges in excess of the allowable fee do not accumulate toward the out-of- pocket limit. Co-payments and non-participating provider charges in excess of the allowable fee will continue to be the member's responsibility even after the out-of-pocket limit is met. ADDITIONAL ACCIDENT BENEFIT The first $1,000 of covered expenses within 90 days of an accident is covered at no charge and is not subject to the deductible. The balance is covered as shown below. The member is responsible for the above deductible and the following co-payments and co-insurance. PARTICIPATING PROVIDERS/ NON-PARTICIPATING SERVICE: NETWORK NOT AVAILABLE: PROVIDERS: PREVENTIVE CARE Well BabyMell Child Care 10% co-insurance 30% co-insurance Routine Physicals No charge` No charge` Well Woman Visits No charge' No charge' Immunizations - 0-18 yrs No charge' No charge' Immunizations - age 19 and over 10% ro-insurance 30% co-insurance RoutineColonoscopy 10% co-insurance 30% co-insuranne PROFESSIONAL SERVICES Office and Home Visits 10% co-insurance 30% co-insurance Office Procedures and Supplies 10% co-insurance 30% co-insurance Surgery 10% co-insurance 30% co-insurance Outpatient Rehabilitation Services 10% co-insurance 10% co-insurance HOSPITAL SERVICES Inpatient Room and Board 10% co-insurance 30% co-insurance Inpatient Rehabilitation Services 10% co-insurance 30%oo-insurance Skilled Nursing Facility Care 10% co-insurance 30% co-insurance SingleSource Self-Insured 3 OUTPATIENT SERVICES Outpatient Surgery/Services 10% co-insurance 30% co-insurance Advanced Diagnostic Imaging 10% co-insurance 30% co-insurance Diagnostic and Therapeutic Radiology 10% co-insurance 30% co-insurance and Lab URGENT AND EMERGENCY SERVICES Urgent Care Center Visits 10% co-insurance 30% co-insurance Emergency Room Visits $100 co-pay/visit plus $100 co-pay/visit plus 10% co-insurance " 10% co-insurance A Ambulance, Ground 10% co-insurance 10% co-insurance Ambulance, Air 10% co-insurance 10% co-insurance MENTAL HEALTHICHEMICAL DEPENDENCY SERVICES Office Visits 10% co-insurance 30% co-insurance Inpatient Care 10% co-insuranre 30% co-insurance Residential Programs 10% co-insurance 30% co-insurance OTHER COVERED SERVICES Allergy Injections 10% co-insurance 30% co-insurance Durable Medical Equipment 10% co-insurance 30% co-insurance Home Health Care 10% co-insurance 10% co-insurance Chiropractic Plus (12 visits/benefit 10% co-insurance 10% co-insurance year) A For emergency medical conditions, non-participating providers are paid at the participating provider level. ' Not subject to annual deductible. Payment to providers is based on the prevailing or contracted PacificSource fee allowance for covered services. Although participating providers accept the fee allowance as payment in full, non-participating providers may not. Services of non- participating providers could result in out-of-pocket expense in addition to the cost share above. Network Not Available (NNA) payment is allowed when PacificSource has not contracted with providers in the geographical area of the members residence or work for a specific service or supply. Payment to providers for NNA is based on the usual, customary, and reasonable charge for the geographical area in which the charge is incurred. SingleSource Self-Insured 4 PRESCRIPTION BENEFIT SUMMARY Your Plan Sponsor's health plan includes coverage for prescription drugs and certain other pharmaceuticals, subject to the information below. Your prescription drug plan qualifies as creditable coverage for Medicare Part D. PRESCRIPTION DRUG OUT-OF-POCKET LIMIT $2,500 The co-payment and/or co-insurance for prescription drugs obtained from a participating pharmacy is waived at participating pharmacies during the remainder of a calendar year in which you have satisfied a Prescription Drug Out of Pocket Limit of $2,500. The limit applies to each member. Claims must be submitted by the participating pharmacy electronically. Differential between brand name and generic drugs, and drugs obtained at a non-participating pharmacy do not apply toward the limit. MEMBER COST SHARE (other than for Specialty Drugs) Each time a covered pharmaceutical is dispensed, you are responsible for the co-payment and/or co- insurance below: Tier 1: Tier 1: Tier 1: Generic Preferred Nonoreferred From a participating retail pharmacy using the PacitcSource Pharmacy Program (see below): Up to a 34-day supply: $5 $25 $50 From a participating mail order service (see below): Up to a 34-day supply: $5 $25 $50 35 to 90-day supply: $10 $50 $100 From a participating retail pharmacy without using Not covered, the PacificSource Pharmacy Program, or from a except 5-day emergency supply non-participating pharmacy (see below): MEMBER COST SHARE FOR SPECIALTY DRUG Each time a covered specialty drug is dispensed, you are responsible for the co-payment and/or co- insurance below: From the participating specialty pharmacy: Up to a 30-day supply: Same as retail pharmacy co-payment above From a participating retail pharmacy, from a participating mail order service, or from a non- Not covered, participating pharmacy or pharmaceutical service except 5-day emergency supply provider: WHAT HAPPENS WHEN A BRAND NAME DRUG IS SELECTED Regardless of the reason or medical necessity, if you receive a brand name drug or if your physician prescribes a brand name drug when a generic is available, you will be responsible for the brand name drug's co-payment and/or co-insurance. USING THE PACIFICSOURCE PHARMACY PROGRAM Retail Pharmacy Network To use the PacificSource pharmacy program, you must show the pharmacy plan number on the PacificSource ID card at the participating pharmacy to receive your plan's highest benefit level. SingleSource Self-Insured 5 When obtaining prescription drugs at a participating retail pharmacy, the PacificSource pharmacy program can only be accessed through the pharmacy plan number printed on your PacificSource ID card. That plan number allows the pharmacy to collect the appropriate co-payment and/or co-insurance from you and bill PacificSource electronically for the balance. Mail Order Service This plan includes a participating mail order service for prescription drugs. Most, but not all, covered prescription drugs are available through this service. Questions about availability of specific drugs may be directed to the PacificSource Customer Service Department or to the plan's participating mail order service vendor. Forms and instructions for using the mail order service are available from PacificSource and on PacifcSource's website, PacificSource.com. Specialty Drug Program PacificSource contracts with a specialty pharmacy services provider for high-cost injectable medications and biotech drugs. A pharmacist-led CareTeam provides individual follow-up care and support to covered members with prescriptions for specialty medications by providing them strong clinical support, as well as the best drug pricing for these specific medications and biotech drugs. The CareTeam also provides comprehensive disease education and counseling, assesses patient health status, and offers a supportive environment for patient inquiries. Participating provider benefits for specialty drugs are available when you use PacificSource's specialty pharmacy services provider. Specialty drugs are not available through the participating retail pharmacy network or mail order service. More information regarding PacificSource's exclusive specialty pharmacy services provider and health conditions and a list of drugs requiring preauthorization and/or are subject to pharmaceutical service restrictions is on PacificSource's website, PacificSource.com. OTHER COVERED PHARMACEUTICALS Supplies covered under the pharmacy plan are in place of, not in addition to, those same covered supplies under the medical plan. Member cost share for items in this section are applied on the same basis as for other prescription drugs, unless otherwise noted. Diabetic Supplies • Insulin, diabetic syringes, lancets, and test strips are available. • Glucagon recovery kits are available for the plan's preferred brand name co-payment. • Glucostix and glucose monitoring devices are not covered under this pharmacy benefit, but are covered under the medical plan's durable medical equipment benefit. Contraceptives • Oral contraceptives • Implantable contraceptives, contraceptive injections, contraceptive patches, and contraceptive rings are available. • Diaphragm or cervical caps are available. Tobacco Cessation Program specific tobacco cessation medications are covered with active participation in a plan approved tobacco cessation program (see Preventive Care in the policy's Covered Expenses section). Orally Administered Anticancer Medications Orally administered anticancer medications used to kill or slow the growth of cancerous cells are available. Co-payments for orally administered anticancer medication are applied on the same basis as for other drugs. Orally administered anticancer medications covered under the pharmacy plan are in place of, not in addition to, those same covered drugs under the medical plan. LIMITATIONS AND EXCLUSIONS • This plan only covers drugs prescribed by a licensed physician (or other licensed practitioner eligible for reimbursement under your plan) prescribing within the scope of his or her professional license, except for: - Over-the-counter drugs or other drugs that federal law does not prohibit dispensing without a SingleSource Self-Insured 6 prescription (even if a prescription is required under state law). - Drugs for any condition excluded under the health plan. That includes drugs intended to promote fertility, treatments for obesity or weight loss, tobacco cessation drugs (except as specifically provided for under Other Covered Pharmaceuticals), experimental drugs, and drugs available without a prescription (even if a prescription is provided). - Some specialty drugs that are not self-administered are not covered by this pharmacy benefit, but are covered under the medical plan's office supply benefit. - Immunizations (although not covered by this pharmacy benefit, immunizations may be covered under the medical plan's preventive care benefit). - Drugs and devices to treat erectile dysfunction. - Drugs used as a preventive measure against hazards of travel. - Vitamins, minerals, and dietary supplements, except for prescription prenatal vitamins and fluoride products, and for services that have a rating of 'A' or'B' from the U.S Preventive Services Task Force (USPSTF). • Certain drugs require preauthorization by PacificSource in order to be covered. An up-to-date list of drugs requiring preauthorization is available on PacificSource's website, PacificSource.com. • PacificSource may limit the dispensing quantity through the consideration of medical necessity, generally accepted standards of medical practice, and review of medical literature and governmental approval status. • Quantities for any drug filled or refilled are limited to no more than a 34-day supply when purchased at retail pharmacy or a 90-day supply when purchased through mail order pharmacy service or a 30-day supply when purchased through a specialty pharmacy. • For drugs purchased at non-participating pharmacies or at participating pharmacies without using the PacificSource pharmacy program, reimbursement is limited to an allowable fee. • Non-participating pharmacy charges are not eligible for reimbursement unless you have a true medical emergency that prevents you from using a participating pharmacy. Drugs obtained at a non-participating pharmacy due to a true medical emergency are limited to a 5 day supply. • The member cost share for prescription drugs (co-payments, co-insurance, and service charges) does not apply to the medical deductible or out-of-pocket limit of the policy. You continue to be responsible for the prescription drug co-payments and service charges regardless of whether the policy's out-of-pocket limit is satisfied. • Prescription drug benefits are subject to your plan's coordination of benefits provision. (For more information see Claims Payment - Coordination of Benefits in your Summary Plan Description.) GENERAL INFORMATION ABOUT PRESCRIPTION DRUGS A drug formulary is a list of preferred medications used to treat various medical conditions. The formulary for this plan is known as the Preferred Drug List (PDL). The drug formulary is used to help control rising healthcare costs while ensuring that you receive medications of the highest quality. It is a guide for your physician and pharmacist in selecting drug products that are safe, effective, and cost efficient. The drug formulary is made up of name brand products. A complete list of medications covered under the drug formulary is available on the For Members area on PacificSource's website, PacificSource.com. The drug formulary is developed by Caremark@ in cooperation with PacificSource. Non-preferred drugs are covered brand name medications not on the drug formulary. Generic drugs are equivalent to name brand medications. By law, they must have the same active ingredients as the brand name medication and are subject to the same standards of their brand name counterpart. Name brand medications lose their patent protection after a number of years. Any drug company can then produce the drug, and the manufacturer must pass the same strict FDA standards of quality and product safety as the original manufacturer. Generic drugs are less expensive than brand name drugs because there is more competition and there is no need to repeat costly research and development. Your pharmacist and physician are encouraged to use generic drugs whenever they are available. SingleSource Self-Insured 7 This page IeR intentionally blank. SingleSource Self-Insured 8 CHIROPRACTIC CARE BENEFIT SUMMARY Your plan's chiropractic care benefit allows you to receive treatment from licensed chiropractors for medically necessary diagnosis and treatment of illness or injury. Refer to the Medical Benefit Summary for your co-payment and/or co-insurance information. PacificSource contracts with a network of chiropractors, so you can reduce your out-of-pocket expense by using one of the participating providers. For a listing of participating chiropractors in your area, please refer to your plan's participating provider directory, visit our website, Pacificsource.com, or call our Customer Service Department. Covered Services • Chiropractic manipulation, massage therapy, and any laboratory services, x-rays, radiology, and durable medical equipment provided by or ordered by a chiropractor. The combined benefit for all treatments, services, and supplies provided or ordered by a chiropractor is limited to 12 visits per person in any benefit year. Excluded Services Any service or supply excluded or not otherwise covered by the medical plan. Drugs, homeopathic medicines, or homeopathic supplies furnished by a chiropractor. • Services of an alternative care provider for pregnancy or childbirth. SingleSource Self-Insured 9 This page left intentionally blank. SingleSaurce Self-Insured 10 ADDITIONAL ACCIDENT BENEFIT SUMMARY In the event of an injury caused by an accident, first dollar benefits are provided for covered expenses according to the following: Related Definitions 'Accident' means an unforeseen or unexpected event causing injury that requires medical attention. 'Injury' means bodily trauma or damage which is independent of disease or infirmity. The damage must be caused solely through external and accidental means. Injury, for the purpose of this benefit, does not include musculoskeletal sprains or strains obtained in the performance of physical activity. Covered Expenses Benefits for the following covered expenses are provided, subject to the limitations stated below: • Services or supplies provided by a physician (except orthopedic braces) • Services of a hospital • Services of a registered nurse who is unrelated to the injured person by blood or marriage • Services of a registered physical therapist • Services of a physician or a dentist for the repair of a fractured jaw or natural teeth • Diagnostic radiology and laboratory services • Transportation by local ground ambulance Limitations • The treatment must be medically necessary for the injury. • The treatment or service must be provided within 90 days after the injury occurs. • The first $1,000 of covered expense is paid at 100% and is not subject to the deductible. SingleSource Self-Insured 11 This page left intentionally blank. SingleSource Self-Insured 12 VISION BENEFIT SUMMARY Your Plan Sponsor covers vision exams, eyeglasses, and contact lenses. The following shows the vision benefits available. Benefit Period Eye Exam: Once every 12 months for covered children. Once every 24 months for covered adults. Lenses: Once every 12 months for covered children. Once every 24 months for covered adults. Frames: Once every 24 months for all covered individuals OR Contact lenses: Once every 12 months for covered children. Once every 24 months for covered adults. Member Responsibility PARTICIPATING NON-PARTICIPATING SERVICE/SUPPLY PROVIDERS: PROVIDERS: Eye Exam No charge No charge up to a $71 maximum Hardware Lenses (maximum per pair) Single Vision No charge No charge up to a $51 maximum Bifocal No charge No charge up to a $77 maximum Trifocal No charge No charge up to a $100 maximum Lenticular No charge Not covered Progressive No charge Not covered Frames No charge up to a No charge up to a $120 maximum $66 maximum Contacts (in place of No charge up to a No charge up to a glasses) $166 maximum $166 maximum The amounts listed above are the maximum benefits available for all vision exams, lenses, and frames furnished during any benefit period when prescribed by a licensed ophthalmologist or licensed optometrist. Participating providers discount hardware services. Limitations and Exclusions The out-of-pocket expense for vision services (co-payments and service charges) does not apply to the medical plan's deductible or out-of-pocket limit. Also, the member continues to be responsible for the vision co-payments and service charges regardless of whether the medical plan's out-of-pocket limit is satisfied. Covered expenses do not include, and no benefits are payable for: • Special procedures such as orthoptics or vision training • Special supplies such as sunglasses (plain or prescription) and subnormal vision aids • Tint SingleSource Self-Insured 13 • Plano contact lenses • Anti-reflective coatings and scratch resistant coatings • Separate charges for contact lens fitting • Replacement of lost, stolen, or broken lenses or frames • Duplication of spare eyeglasses or any lenses or frames • Nonprescription lenses • Visual analysis that does not include refraction • Services or supplies not listed as covered expenses • Eye exams required as a condition of employment, or required by a labor agreement or government body • Expenses covered under any worker's compensation law • Services or supplies received before this plan's coverage begins or after it ends • Charges for services or supplies covered in whole or in part under any other medical or vision benefits provided by the Plan Sponsor • Medical or surgical treatment of the eye Important information about your vision benefits Your Plan Sponsor's health plan includes coverage for vision services, including prescription eyeglasses and contact lenses. To make the most of those benefits, it's important to keep in mind the following: • Participating Providers PacificSource is able to add value to your vision benefits by contracting with a network of vision providers. Those providers offer vision services at discounted rates, which are passed on to you in your benefits. • Paying for Services Please remember to show your current PacificSource ID card whenever you use your plan's benefits. PacificSource's provider contracts require participating providers to bill us directly whenever you receive covered services and supplies. Providers normally call PacificSource to verify your vision benefits. Participating providers should not ask you to pay the full cost in advance. They may only collect your share of the expense up front, such as co-payments and amounts over your plan's allowances. If you are asked to pay the entire amount in advance, tell the provider you understand they have a contract with PacificSource and should bill PacificSource directly. • Sales and Special Promotions Vision retailers often use coupons and promotions to bring in new business, such as free eye exams, two-for-one glasses, or free lenses with purchase of frames. Because participating providers already discount their services through their contract with PacificSource, your plan's participating provider benefits cannot be combined with any other discounts or coupons. You can use your plan's participating provider benefits, or you can use your plan's non-participating provider benefits to take advantage of a sale or coupon offer. If you do take advantage of a special offer, the participating provider may treat you as an uninsured customer and require full payment in advance. You can then send the claim to PacificSource yourself, and PacificSource will reimburse you according to your plan's non-participating provider benefits. PacificSource hopes this information helps clarify your vision benefits. If you or your provider have any questions about your benefits, please call PacificSource Customer Service at (541) 686-1242 from Eugene-Springfield or (888) 977-9299 from other areas. SingleSource Self-Insured 14 DENTAL BENEFIT SUMMARY POLICY INFORMATION Group Name: City of Ashland Group Number: G0032482 Plan Name: Preferred Incentive Dental $1500 VAR 0711 EMPLOYEE ELIGIBILITY REQUIREMENTS Minimum Hour Requirement: Full Time: 40 hours, Part Time: 20-39 hours Waiting Period for New Employees: 1st day of the month following one (1) day. A person hired on the first day of the month is eligible on the first day of the following month. DENTAL BENEFIT SUMMARY Subject to all the terms of this Group Dental Policy, the Plan Sponsor will pay a dental benefit for covered dental expenses incurred by a covered person. The dental benefit is a percentage of the usual, customary, and reasonable charge for covered dental expenses incurred, subject to an annual maximum benefit, and an annual deductible, as follows: Maximum Payment The amount payable by this plan for covered services received under Class I are unlimited. The maximum amount payable by this plan for covered Class II and Class III services received each benefit year, or portion thereof, for each eligible patient is limited to $1,500. PLAN PAYMENT SCHEDULE Class I Services- Plan pays 70% toward covered Class I Services - Diagnostic and Preventive Treatment. Class II Restorative Services- Plan pays 70% toward covered Class II Restorative Services - Restorative Treatment. Class II Complicated Services- Plan pays 70% toward covered Class II Complicated Services - Complicated Treatment. Class III Services- Plan pays 70% toward covered Class III Services - Major Treatment. This plan pays the percentage indicated above toward Class I, II and III Services during the first year an individual is eligible. Payment increases 10 percent (to a maximum benefit of 100 percent) each successive benefit year for Class I, II and III Services if the member visits a dentist at least once during the benefit year. Payment decreases 10 percent (to a minimum benefit of the percentage stated above) each successive benefit year if the member does not visit a dentist at least once during the previous benefit year. SingleSource Self-Insured 15 This page left intentionally blank. SingleSource Self-Insured 16 ORTHODONTIA BENEFITS Covered Charges The Plan Sponsorwill pay 50% of the usual, customary and reasonable for orthodontics for all covered individuals. Lifetime Maximum The maximum amount payable by the Plan Sponsorfor orthodontic benefits to an eligible patient is $1,000 per lifetime. Exclusions and Limitations • The Plan Sponsorwill cease making payment for orthodontic treatment if the treatment ends for any reason prior to the completion of your case. • The Plan Sponsorwill not make any payments for the repair or replacement of an orthodontic appliance that was furnished under this coverage. • The Plan Sponsor's monthly or periodic payments for orthodontics shall cease if your eligibility is terminated. • The Plan Sponsor's obligation to make payments for orthodontic treatment that began prior to your eligibility date is calculated based on remaining balance at your initial eligibility date. The calculation will take into account the dentist's or orthodontist's normal payment pattern. The above-mentioned maximum will apply to this amount. SingleSource Self-Insured 17 This page left intentionally blank. SingleSource Self-Insured 18 USING THE PROVIDER NETWORK This section explains how your plan's benefits differ when you use participating and non-participating providers. This information is not meant to prevent you from seeking treatment from any provider if you are willing to take increased financial responsibility for the charges incurred. All healthcare providers are independent contractors. Neither your Plan Sponsor nor PacificSource can .be held liable for any claim or damages for injuries you experience while receiving medical care. Preferred Provider Organization (PPO) What is a PPO A preferred provider organization (PPO) has made agreements with hospitals, physicians, practitioners, and other health care providers to discount the cost of services they provide. Who is Your PPO The Plan Sponsor has chosen PacificSource to provide PPO services for employees and eligible dependents in Oregon, Idaho, and Montana service areas and in bordering communities in southwest Washington. They also have an agreement with a nationwide provider network, The First Health@ Network. The First Health providers outside PacificSource's service area are also considered participating providers under your plan. A list of participating providers can be accessed through the PacificSource website: PacificSource.com or by calling PacificSource at (888) 977-9299. This list of participating providers is updated regularly. About Your PPO PacificSource has selected the participating physicians, practitioners, and hospitals after carefully reviewing their qualifications. Each health care provider has agreed to a contracted amount in payment for their services. Additionally, you cannot be 'balanced billed' for the difference between the PPO contracted amount and the provider's normal billed charge for a particular service. You are only responsible for the deductible, co-payment, and/or co-insurance payment shown on the Medical Benefit Summary. Enrolling in this plan does not guarantee that a particular participating providerwill remain a participating provideror that a particular participating providerwill provide members under this plan only with covered services. Members should verify a health care provider's status as a participating provider each time services are received from the health care provider. It is not safe to assume that when you are treated at a participating medical facility, all services are performed by participating providers. A list of participating providers can be accessed through the PacificSource website: PacificSource.com or by calling PacificSource at (888) 977-9299. Whenever possible, you should arrange for professional services such as surgery and anesthesiology to be provided by a participating provider. Doing so will help you maximize your benefits and limit your out-of- pocket expenses. The PPO benefits are outlined on the Medical Benefit Summary. You have a free choice of any health care provider, and the physician-patient relationship shall be maintained. Members, together with their health care provider, are ultimately responsible for determining the appropriate course of medical treatment, regardless of whether the plan will pay for all or a portion of the cost of such care. The participating providers are merely independent contractors; neither the plan, the Plan Sponsor, nor PacificSource makes any warranty as to the quality of care that may be rendered by any participating provider. You have the right to designate any primary care provider who participates in the network and who is available to accept you or your family members. For children, you may designate a pediatrician as the primary care provider. You do not need prior authorization from this plan or from any other person (including a primary care provider) in order to obtain access to obstetrical or gynecological care from a health care professional in the network who specializes in obstetrics or gynecology. The health care professional, however, may be required to comply with certain procedures, including obtaining prior authorization for certain services, following a pre-approved treatment plan, or procedures for making referrals. For a list of the participating providers and/or a list of participating health care professionals SingleSource Self-Insured 19 who specialize in obstetrics or gynecology, contact PacificSource at (888) 977-9299 or PO Box 7068, Springfield, OR 97475-0068. Non-PPO Providers When you receive services or supplies from a nonparticipating provider, your out-of-pocket expense is likely to be higher than if you had used a participating provider. Besides the non-PPO deductible, co- payment, and/or co-insurance amounts shown on the Medical Benefit Summary, you may become responsible for the provider's billed amount that exceeds the plan's allowable amount. Example of Provider Payment The following illustrates how payment could be made for a covered service billed at $120. In this example, the Medical Benefit Summary shows a participating providers co-insurance of 20 percent and a non-participating providers co-insurance of 30 percent. This is only an example; your plan's benefits may be different. Participating Non-participating Provider Provider Provider's usual billed charge $120 $120 PPG's negotiated provider discount $20 $0 Plan's allowable amount $100 $100 Percent of payment 20% 30% Plan's payment $80 $70 Patient's amount of allowable amount $20 $30 Charges above the allowable amount $0 $20 Patient's total payment to provider $20 $50 Percent of charge paid by plan 80% 58% Percent of charge paid by patient 20% 42% Allowable Amount The plan bases payment to nonparticipating providers on an allowable amount for the same services or supplies. Several sources are used to determine the allowable amount, depending on the service or supply and the geographical area where it is provided. The allowable amount may be based on data collected from the Centers for Medicare and Medicaid Services (CMS), Viant Health Payment Solutions, other nationally recognized databases, or PacificSource. NETWORK NOT AVAILABLE BENEFITS The term 'network not available' is used when a member does not have reasonable geographic access to a participating provider for a covered medical service or supply. If you live in an area without access to a participating provider for a specific service or supply, your plan's Network Not Available benefits apply. Here's how that works: • You seek treatment from a nearby non-participating provider of that service or supply. • PacificSource determines the allowable fee for that service or supply (the term 'allowable fee' is explained above under the Non-participating Providers section). • PacificSource applies the Network Not Available benefit level stated in your Medical Benefit Summary to the allowable fee to calculate covered expenses. • You are responsible for any co-payments, co-insurance, deductibles, and amounts over the allowable fee. COVERAGE WHILE TRAVELING Your plan is powered by the PacificSource Network (PSN). The PSN Network covers Oregon, Idaho, Montana, southwest Washington, and eastern Washington. When you need medical services outside of the PSN Network, you can save out-of-pocket expense by using the participating providers available through The First Health® Network. SingleSource Self-Insured 20 Nonemergency Care While Traveling To find a participating provider outside the regions covered by the PacificSoume Network, call The First Health® Network at (800) 226-5116. (The phone number is also printed on your PacificSoume ID card for convenience.) Representatives are available at any time to help you find a participating physician, hospital, or other outpatient provider. Nonemergency care outside of the United States is not covered. • If a participating provider is available in your area, your plan's participating provider benefits will apply if you use a participating provider. • If a participating provider is not available in your area, your plan's Network Not Available benefits will apply. • If a participating provider is available but you choose to use a non-participating provider, your plan's non-participating provider benefits will apply. Emergency Services While Traveling In medical emergencies (see the Covered Expenses - Emergency Services section of this Summary Plan Description), your plan pays benefits at the participating provider level regardless of your location. Your covered expenses are based on PacificSource's allowable fee. If you are admitted to a hospital as an inpatient following the stabilization of your emergency condition, your physician or hospital should contact the PacificSource Health Services Department at (888) 691-8209 as soon as possible to make a benefit determination on your admission. If you are admitted to a non-participating hospital, PacificSource may require you to transfer to a participating facility once your condition is stabilized in order to continue receiving benefits at the participating provider level. FINDING PARTICIPATING PROVIDER INFORMATION You can find up-to-date participating provider information: • By asking your healthcare provider if he or she is a participating provider for your Plan Sponsor's plan. • On the PacificSource website, PacificSource.com. Simply click on 'Find a Provider' and you can easily look up participating providers or print your own customized directory. • By contacting the PacificSource Customer Service Department. PacificSource can answer your questions about specific providers. If you'd like a complete provider directory for your plan, just ask - PacificSource will be glad to mail you a directory free of charge. • By calling The First Health® Network at (800) 226-5116 if you live outside the area covered by the PacificSource Network. TERMINATION OF PROVIDER CONTRACTS PacificSource will notify you within ten days of learning of the termination of a provider contractual relationship if you have received services in the previous three months from such a provider when: • A provider terminates a contractual relationship with PacificSource in accordance with the terms and conditions of the agreement; A provider terminates a contractual relationship with an organization under contract with PacificSource; or • PacificSource terminates a contractual relationship with an individual provider or the organization with which the provider is contracted in accordance with the terms and conditions of the agreement. For the purposes of continuity of care, PacificSource may require the provider to adhere to the medical services contract and accept the contractual reimbursement rate applicable at the time of contract termination. SingleSource Self-Insured 21 BECOMING ELIBIGLE Who Pays for Your Benefits The Plan Sponsor shares the cost of providing benefits for you and your enrolled dependents. From time to time, the Plan Sponsor may adjust the amount of contributions required for coverage. In addition, the deductibles and co-payments may also change periodically. You will be notified by your Plan Sponsor of any changes in the cost of plan coverage before they take effect. Who is Eligible Employees - You are eligible to participate in this plan if you are a regular, full-time employee of the Plan Sponsor upon the completion of the minimum number of hours and probationary waiting period set by your Plan Sponsor. Your Plan Sponsor's eligibility requirements are stated in your Medical Benefit Summary. All employees who meet those requirements are eligible for coverage. Eligibility for Medicaid or the receipt of Medicaid benefits will not be taken into account in determining eligibility. Status as an employee is determined under the employment records of the Plan Sponsor. Workers classified by the Plan Sponsor as independent contractors are not eligible for this plan under any circumstances. Retirees - You are eligible to participate in this plan if you are a retired employee of the Plan Sponsor, or a spouse of a retired employee. Eligibility for Medicaid or the receipt of Medicaid benefits will not be taken into account in determining eligibility. Dependents - While you are enrolled under this plan, the following family members, and only the following family members, are also eligible to participate in the plan: • Your legal spouse or qualified domestic partner. The Plan Sponsor may require documentation proving a legal marital relationship, an Affidavit of Domestic Partnership or a Certificate of Qualified domestic partnership. • Your, your spouse's, or your qualified domestic partner's dependent children under age 26 regardless of the child's place of residence, marital status, or financial dependence on you. • Your, your spouse's, or your qualified domestic partner's unmarried dependent children age 26 or over who are mentally or physically disabled. To qualify as dependents, they must have been continuously unable to support themselves since turning age 26 because of a mental or physical disability. PacificSource requires documentation of the disability from the child's physician, and will review the case before determining eligibility for coverage. • Your grandchildren. A child of an eligible dependent enrolled on your plan under age 19 who is unmarried, not in a domestic partnership, registered or otherwise, who is related to you by blood, marriage, or domestic partnership AND for whom you are the court appointed legal custodian or guardian with the expectation that the family member will live in your household for at least a year. • A child placed for adoption with you, your spouse, or qualified domestic partner. Placed for adoption means the assumption and retention by you, your spouse, or qualified domestic partner of a legal obligation for total or partial support of a child in anticipation of adoption or placement for adoption. Upon any termination of such legal obligations the placement for adoption shall be deemed to have terminated. • 'Dependent children' means any natural, step, or adopted children as well as any child placed for adoption with you or your domestic partner are legally obligated to support or contribute support for. It may also include grandchildren under age 19 who are unmarried and expected to live in your household for at least a year, if you are the court appointed legal custodian or guardian. No family or household members other than those listed above are eligible to enroll under your coverage. Special Rules for Eligibility - At any time, the Plan Administrator may require proof that a person qualifies or continues to qualify as a dependent as defined by this plan. SingleSource Self-Insured 22 ENROLLING DURING THE INITIAL ENROLLMENT PERIOD The 'initial enrollment period' is the 60-day period beginning on the date a person is first eligible for enrollment in this plan. Everyone who becomes eligible for coverage has an initial enrollment period. When you satisfy your Plan Sponsor's probationary waiting period at the hours required for eligibility and become eligible to enroll in this plan, you and your eligible family members must enroll within the initial enrollment period. If you miss your initial enrollment period, you may be subject to a waiting period. (For more information, see 'Special Enrollment Periods' and 'Late Enrollment' under the Enrolling After the Initial Enrollment Period section.) To enroll, you must complete and sign an enrollment application, which is available from your Plan Sponsor. The application must include complete information on yourself and your enrolling family members. Return the application to your Plan Sponsor, and your Plan Sponsorwill send it to PacificSource. Coverage for you and your enrolling family members begins on the first day of the month after you satisfy your Plan Sponsor's probationary waiting period. The probationary waiting period is stated in your Medical Benefit Summary. Coverage will only begin if Your Plan Sponsor receives your enrollment application and premium. Newborns Your, your spouse's, or your qualified domestic partner's natural born baby is eligible for enrollment under this plan during the 60-day initial enrollment period after birth. PacificSource cannot enroll the child and pay benefits until your Plan Sponsor receives an enrollment application listing the child as your dependent. A claim for maternity care is not considered notification for the purpose of enrolling a newborn child. Anytime there is a delay in providing enrollment information, your Plan Sponsor may ask for legal documentation to confirm validity. Adopted Children When a child is placed in your home for adoption, the child is eligible for enrollment under this plan during the 60-day initial enrollment period after placement for adoption. 'Placement for adoption' means the assumption and retention by you, your spouse's, or your domestic partner's of a legal obligation for full or partial support and care of the child in anticipation of adoption of the child. To add the child to your coverage, you must complete and submit an enrollment application listing the child as your dependent. You may be required to submit a copy of the certificate of adoption or other legal documentation from a court or a child placement agency to complete enrollment. If additional premium is required, then the natural born or adopted child's eligibility for enrollment will end 60 days after placement if Plan Sponsor has not received an enrollment application and premium. Premium is charged from the date of placement and prorated for the first month. If no additional premium is required, then the natural born or adopted child's eligibility continues as long as you are covered. However, PacificSource cannot enroll the child and pay benefits until your Plan Sponsor receives an enrollment application listing the child as your dependent. Family Members Acquired by Marriage If you marry, you may add your new spouse and any newly eligible dependent children to your coverage during the 60-day initial enrollment period after the marriage. Your Plan Sponsor must receive your enrollment application and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the marriage. You may be required to submit a copy of your marriage certificate to complete enrollment. Family Members Acquired by Domestic Partnership If you and your same-gender domestic partner have been issued a Certificate of Qualified domestic partnership, your domestic partner and your partner's dependent children are eligible for coverage during the 60-day initial enrollment period after the registration of the domestic partnership. Your Plan Sponsor must receive your enrollment application and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the registration of the domestic partnership. You may be required to submit a copy of your Certificate of Qualified domestic partnership to complete enrollment. SingleSource Self-Insured 23 Unregistered same-gender domestic partners and their children may also become eligible for enrollment. If you and your unqualified domestic partner meet the criteria on the Affidavit of Domestic Partnership supplied by your Plan Sponsor, your domestic partner and your partner's dependent children are eligible for coverage during the 60-day initial enrollment period after the requirements of the Affidavit of Domestic Partnership are satisfied. Your Plan Sponsor must receive your enrollment application, a notarized copy of your Affidavit of Domestic Partnership, and additional premium during the initial enrollment period. Coverage for your new family members will then begin on the first day of the month after the Affidavit of Domestic Partnership is notarized. Family Members Placed in Your Guardianship If a court appoints you custodian or guardian of an eligible grandchild, you may add that family member to your coverage. To be eligible for coverage, the family member must be: • Unmarried; • Not in a domestic partnership, registered or otherwise; • Related to you by blood, marriage, or domestic partnership; • Under age 19; and • Expected to live in your household for at least a year. Your Plan Sponsor must receive your enrollment application and additional premium during the 60-day initial enrollment period beginning on the date of the court appointment. Coverage will then begin on the first day of the month following the date of the court order. You may be required to submit a copy of the court order to complete enrollment. QualiRed Medical Child Support Orders This health plan complies with qualified medical child support orders (QMCSO) issued by a state court or state child support agency. A QMCSO is a judgment, decree, or order, including approval of a settlement agreement that provides for health benefit coverage for the child of a plan member. If a court or state agency orders coverage for your spouse or child, they may enroll in this plan within the 60-day initial enrollment period beginning on the date of the order. Coverage will become effective on the first day of the month after Plan Sponsor receives the enrollment application. You may be required to submit a copy of the QMCSO to complete enrollment. ENROLLING AFTER THE INITIAL ENROLLMENT PERIOD Returning to Work after a Layoff If you are laid off and then rehired by your Plan Sponsor within six months, you will not have to satisfy another probationary waiting period or new exclusion period. Your health coverage will resume the first of the month following the date you return to work and again meet your Plan Sponsors minimum hour requirement. If your family members were covered before your layoff, they can resume coverage at that time as well. You must re-enroll your family members by submitting an enrollment application within the 60-day initial enrollment period following your return to work. Returning to Work after a Leave of Absence If you return to work after a Plan Sponsor-approved leave of absence of six months or less, you will not have to satisfy another probationary waiting period. Your health coverage will resume the day you return to work and again meet your Plan Sponsors minimum hour requirement. If your family members were covered before your leave of absence, they can resume coverage at that time as well. You must re-enroll your family members by submitting an enrollment application within the 60-day initial enrollment period following your return to work. Returning to Work after Family Medical Leave Your Plan Sponsor is probably subject to the Family Medical Leave Act (FIALA). To find out if you have rights under FMLA, ask your health plan administrator. Under FMLA, if you return to work after a SingleSource Self-Insured 24 qualifying FMLA medical leave, you will not have to satisfy another probationary waiting period or any previously satisfied exclusion period under this plan. Your health coverage will resume the day you return to work and meet your Plan Sponsors minimum hour requirement. If your family members were covered before your leave, they can also resume coverage at that time if you re-enroll them within the 60-day initial enrollment period following your return. Special Enrollment Periods If you are eligible to decline coverage and you wish to do so, you must submit a written waiver of coverage to your Plan Sponsor. You and your family members may enroll in this plan later if you qualify under Rule #1, Rule #2, or Rule #3 below. • Special Enrollment Rule #1 - If you declined enrollment for yourself or your family members because of other health insurance coverage, you or your family members may enroll in the plan later if the other coverage ends involuntarily. 'Involuntarily' means coverage ended because continuation coverage was exhausted, employment terminated, work hours were reduced below the Plan Sponsor's minimum requirement, the other insurance plan was discontinued or the maximum lifetime benefit of the other plan was exhausted, the Plan Sponsor's premium contributions toward the other insurance plan ended, or because of death of a spouse, divorce, or legal separation. To do so, you must request enrollment within 60 days after the other health insurance coverage ends (or within 60 days after the other health insurance coverage ends if the other coverage is through Medicaid or a State Children's Health Insurance Program). Coverage will begin on the first day of the month after the other coverage ends. • Special Enrollment Rule #2 - If you acquire new dependents because of marriage, qualification of domestic partnership, birth, or placement for adoption, you may be able to enroll yourself and/or your newly acquired eligible dependents at that time. To do so, you must request enrollment within 60 days after the marriage, registration of the domestic partnership, birth, or placement for adoption. In the case of marriage or domestic partnership, coverage begins on the first day of the month after the marriage or registration of the domestic partnership. In the case of birth or placement for adoption, coverage begins on the date of birth or placement. • Special Enrollment Rule #3 - If you or your dependents become eligible for a premium assistance subsidy under Medicare or CHIP, you may be able to enroll yourself and/or your dependents at that time. To do so, you must request enrollment within 60 days of the date you and/or your dependents become eligible for such assistance. Coverage will begin on the first day of the month after becoming eligible for such assistance. Dental Enrollment Employees or their dependents who did not enroll with dental benefits when initially eligible may later enroll on the policy's anniversary date. Employees and/or dependents who enrolled with dental benefits under this policy but later terminated coverage may enroll on an anniversary date of the policy following a 24-month waiting period from the date coverage was last terminated. Late Enrollment If you did not enroll during your initial enrollment period and you do not qualify for a special enrollment period, your enrollment will be delayed until the plan's anniversary date. A'late enrollee' is an otherwise eligible employee or dependent who does not qualify for a special enrollment period explained above, and who: • Did not enroll during the 60-day initial enrollment period, or • Enrolled during the initial enrollment period but discontinued coverage later. A late enrollee may enroll by submitting an enrollment application to your Plan Sponsor during an open enrollment period designated by your Plan Sponsorjust prior to the plan's anniversary date. When you or your dependents enroll during the open enrollment period, plan coverage begins on the date Plan Sponsor receives the enrollment application or on the plan's anniversary date. You may enroll in coverage prior to an open enrollment period if one of the following exceptions are met: SingleSource Self-Insured 25 You and/or your dependent may enroll in coverage if you involuntary lose other Group Coverage or lose coverage under the Oregon Health Plan. You and/or your dependent may enroll in coverage if your hours per week are increased or your employer's contribution is increased. You and/or your dependent may also enroll if you return from a qualified FMLA leave. Member lD Card The membership card issued to you by PacificSource is for identification purposes only. Possession of a membership card confers no right to services or benefits under this plan and misuse of your membership card may be grounds for termination of your coverage under this plan. To be eligible for services or benefits under this plan, you must be eligible and enrolled in the plan and you must present the membership card to your health care provider. If you receive services or benefits for which you are not entitled to receive under the terms of this plan, you may be charged for such services or benefits at the prevailing rate. If you permit the use of your membership card by any other person, your card may be retained by this plan, and all your rights under this plan may be terminated. PLAN SELECTION PERIOD If your Plan Sponsor offers more than one benefit plan option, you may choose another plan option only upon your plan's anniversary date. You may select a different plan option by completing a selection form or application form. Coverage under the new plan option becomes effective on your plan's anniversary date. TERMINATING COVERAGE If you leave your job for any reason or your work hours are reduced below your Plan Sponsor's minimum requirement, coverage for you and your enrolled family members will end. Coverage ends on the last day of the last month in which you worked full time. You may, however; be eligible to continue coverage for a limited time; please see the Continuation section of this Summary Plan Description for more information. You can voluntarily discontinue coverage for your enrolled family members at any time by completing a Termination of Dependent Coverage form and submitting it to your Plan Sponsor. Keep in mind that once coverage is discontinued, your family members may be subject to the late enrollment waiting period if they wish to re-enroll later. Divorced Spouses If you divorce, coverage for your spouse will end on the last day of the month in which the divorce decree or legal separation is final. You must notify your Plan Sponsor of the divorce or separation, and continuation coverage may be available for your spouse. If there are special child custody circumstances, please contact your Plan Sponsor. Please see the Continuation section for more information. Dependent Children When your enrolled child no longer qualifies as a dependent, coverage will end on the last day of that month. Please see the Eligibility section of this Summary Plan Description for information on when your dependent child is eligible beyond age 25. The Continuation section includes information on other coverage options for those who no longer qualify for coverage. Dissolution of Domestic Partnership If you dissolve your domestic partnership, coverage for your domestic partner and their children not related to you by birth or adoption will end on the last day of the month in which the dissolution of the domestic partnership is final. You must notify your Plan Sponsor of the dissolution of the domestic partnership. Under Oregon state continuation laws, a qualified domestic partner and their covered children may continue this policy's coverage under the same circumstances and to the same extent afforded an enrolled spouse and their enrolled children (see Oregon Continuation in the Continuation of Insurance section). Domestic partners and their covered children are not recognized as qualified beneficiaries under federal COBRA continuation laws. Domestic partners and their covered children SingleSource Self-Insured 26 may not continue this policy's coverage under COBRA independent of the employee (see COBRA Continuation in the Continuation of Insurance section). Certificates of Creditable Coverage A certificate of creditable coverage is used to verify the dates of your prior health plan coverage when you apply for coverage under a new policy. These certificates are issued by health insurers whenever a plan participant's coverage ends. After your or your dependent's coverage under this plan ends, you will receive a certificate of creditable coverage by mail. PacificSource has an automated process that generates and mails these certificates whenever coverage ends. PacificSource will send a separate certificate for any dependents with an effective or termination date that differs from yours. For questions or requests regarding certificates of creditable coverage, you are welcome to contact Membership Services Department at (541) 684-5583 or (866) 999-5583. CONTINUATION OF COVERAGE Under federal and state laws, you and your family members may have the right to continue this plan's coverage for a specified time. You and your dependents may be eligible if: • Your employment ends or you have a reduction in hours • You take a leave of absence for military service • You divorce • You die • You become eligible for Medicare benefits if it causes a loss of coverage for your dependents • Your children no longer qualify as dependents The following sections describe your rights to continuation under state and federal laws, and the requirements you must meet to enroll in continuation coverage. USERRA CONTINUATION If you take a leave of absence from your job due to military service, you have continuation rights under the Uniformed Services Employment and Re-employment Rights Act (USERRA). You and your enrolled family members may continue this plan's coverage if you, the employee, no longer qualify for coverage under the plan because of military service. Continuation coverage under USERRA is available for up to 24 months while you are on military leave. If your military service ends and you do not return to work, your eligibility for USERRA continuation coverage will end. Premium for continuation coverage is your responsibility. The following requirements apply to USERRA continuation: • Family members who were not enrolled in the group plan cannot take continuation. The only exceptions are newborn babies and newly acquired dependents not covered by another group health plan. • To apply for continuation, you must submit a completed Continuation Election Form to your Plan Sponsorwithin 60 days after the last day of coverage under the group plan. • You must pay continuation premium to your Plan Sponsor by the first of each month. Your Plan Sponsor will include your continuation premium in the group's regular monthly payment. PacificSource cannot accept the premium directly from you. • Your Plan Sponsor must still be self-insured through PacificSource. If your Plan Sponsor discontinues this plan, you will no longer qualify for continuation. SingleSource Self-Insured 27 Surviving or Divorced Spouses and QualiRed Domestic Partners If you die, divorce, or dissolve your qualified domestic partnership, and your spouse or qualified domestic partner is 55 years or older, your spouse or qualified domestic partner may be able to continue coverage until eligible for Medicare or other coverage. Dependent children are subject to the health plan's age and other eligibility requirements. Some restrictions and guidelines apply; please see your Plan Sponsor for specific details. COBRA CONTINUATION Your Plan Sponsor is subject to the continuation of coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) as amended. To find out if you have continuation rights under COBRA, ask your health plan administrator. COBRA Eligibility To be eligible, a membermust experience a'qualifying event' which is an event that causes your regular group coverage to end and makes you eligible for continuation coverage. When the following qualifying events happen, you may continue coverage for the lengths of time shown: Qualifying Event Continuation Period Employee's termination of employment or reduction in Employee, spouse, and children may continue for up to hours 18 months' Employee's divorce or legal separation Souse and children may continue for u to 36 months Employee's eligibility for Medicare benefits if it causes a Spouse and children may continue for up to 36 months loss of coverage Employee's death Souse and children may continue for u to 36 months Child no longer qualifies as a dependent Child may continue for u to 36 months Em to er files for Chapter 11 bankruptcy Only applies to retirees and their covered dependents If the employee or covered dependent is determined disabled by the Social Security Administration within the first 60 days of continuation coverage, all qualified beneficiaries may continue coverage for up to an additional 11 months, for a total of up to 29 months. 2 The total maximum continuation period is 36 months, even if there is a second qualifying event. A second qualifying event might be a divorce, legal separation, death, or child no longer qualifying as a dependent after the employee's termination or reduction in hours. If your dependents were not covered prior to your qualifying event, they may enroll in the continuation coverage while you are on continuation. They will be subject to the same rules that apply to active employees, including the late enrollment waiting period. If your employment is terminated for gross misconduct, you and your dependents are not eligible for COBRA continuation. Domestic partners and their covered children may not continue this policy's coverage under COBRA independent of the employee. When Continuation Coverage Ends Your continuation coverage will end before the end of the continuation period above if any of the following occur: • Your continuation premium is not paid on time. • You become covered under another group health plan that does not exclude or limit treatment for your pre-existing conditions. • You become entitled to Medicare benefits. • Your Plan Sponsor discontinues its health plan and no longer offers a group health plan to any of its employees. • Your continuation period was extended from 18 to 29 months due to disability, and you are no longer considered disabled. SingleSource Self-Insured 28 Type of Coverage Under COBRA, you may continue any coverage you had before the qualifying event. If your Plan Sponsor provides both medical and dental coverage and you were enrolled in both, you may continue both medical and dental. If your Plan Sponsor provides only one type of coverage, or if you were enrolled in only one type of coverage, you may continue only that coverage. COBRA continuation benefits are always the same as your Plan Sponsor's current benefits. Your Plan Sponsor has the right to change the benefits of its health plan or eliminate the plan entirely. If that happens, any changes to the group health plan will also apply to everyone enrolled in continuation coverage. Your Responsibilities and Deadlines You must notify your Plan Sponsor within 60 days if you divorce, or if your child no longer qualifies as a dependent. That will allow your Plan Sponsor to notify you or your dependents of your continuation rights. When your Plan Sponsor learns of your eligibility for continuation, your Plan Sponsorwill notify you of your continuation rights and provide a Continuation Election Form. You then have 60 days from that date or 60 days from the date coverage would otherwise end, whichever is later, to enroll in continuation coverage by submitting a completed Election Form to your Plan Sponsor. If continuation coverage is not elected during that 60-day period, coverage will end on the last day of the last month you were an active employee. If you do not provide these notifications within the time frames required by COBRA, Plan Sponsors responsibility to provide coverage under the health plan will end. Continuation Premium You or your family members are responsible for the full cost of continuation coverage. The monthly premium must be paid to your Plan Sponsor. PacificSource cannot accept continuation premium directly from you. You may make your first premium payment any time within 45 days after you return your Continuation Election Form to your Plan Sponsor. After the first premium payment, each monthly payment must reach your Plan Sponsorwithin 30 days of your Plan Sponsor's premium due date. If your Plan Sponsor does not receive your continuation premium on time, continuation coverage will end. If your coverage is canceled due to a missed payment, it will not be reinstated for any reason. Premium rates are established annually and may be adjusted if the plan's benefits or costs change. Keep Your Plan Informed of Address Changes In order to protect your and your family's rights, you should keep the Plan Sponsor informed of any changes in your address and the addresses of family members. You should also keep a copy, for your records, of any notices you send to the Plan Sponsor. CONTINUATION WHEN YOU RETIRE If you retire, you and your insured dependents are eligible to continue coverage subject to the following: You must apply for continued coverage within 60 days after retirement. • You must be receiving benefits from PERS (Public Employee Retirement System) or from a similar retirement plan offered by your Plan Sponsor. You will have the same opportunity to switch to another plan during the open enrollment period as do active employees. If the plan's benefits are changed by the policyholder, your benefits will change accordingly. • Except for newly acquired dependents due to marriage, registration of domestic partnership, birth, or adoption, only your dependents who were covered at the time of retirement may continue coverage under this provision. You may add a new spouse, domestic partner, or other newly acquired dependent after retirement if family coverage is available. A completed enrollment application must be submitted within 60 days of the date of marriage, registration of domestic partnership, birth, or adoption. SingleSource Self-Insured 29 Your continuation coverage will end when any one of the following occurs: • When full premium is not paid or when your coverage is voluntarily terminated, your coverage will end on the last day of the month for which premium was paid. • When you become eligible for Medicare coverage, your coverage will end on the last day of the month preceding Medicare eligibility. • When the regular group policy is terminated, your coverage will end on the date of termination. Your dependent's continuation coverage will end when any one of the following occurs: • When full premium for the dependent is not paid or when the dependent's coverage is voluntarily terminated by you or your dependent, coverage will end on the last day of the month for which premium was paid. • When your dependent becomes eligible for Medicare coverage, your dependent's coverage will end on the last day of the month preceding Medicare eligibility. • When you die, divorce, or dissolve your domestic partnership, your dependent's coverage will end on the last day of the month following the death, divorce, or dissolution of the domestic partnership. • When your dependent is otherwise no longer considered a dependent under the group plan, his or her coverage will end on the last day of the month of their eligibility. Continuation of coverage may be available under COBRA continuation (see Continuation of Coverage provisions). • When the regular group policy is terminated, your dependent's coverage will end on the date of termination. WORK STOPPAGE Labor Unions If you are a union member, you have certain continuation rights in the event of a labor strike. Your union is responsible for collecting your premium and can answer questions about coverage during the strike. EXTENSION OF BENEFITS If you are on a Plan Sponsor-approved non-FMLA leave of absence, you may continue coverage under active status for up to three months by self pay to the Plan Sponsor. Absences extending beyond three months will be subject to the Continuation of Coverage provisions of this plan. COVERED EXPENSES This plan provides comprehensive medical coverage when care is medically necessary to treat an illness or injury. Be careful -just because a treatment is prescribed by a healthcare professional does not mean it is medically necessary under the terms of the plan. Also remember that just because a service or supply is a covered benefit under this plan does not necessarily mean all billed charges will be paid. Some medically necessary services and supplies may be excluded from coverage under this plan. Be sure you read and understand the Benefit Limitations and Exclusions section of this book, including the section on Preauthorization. If you ever have a question about your plan benefits, contact the PacificSource Customer Service Department. Medical Necessity Except for specified Preventive Care services, the benefits of this health plan are paid only toward the covered expense of medically necessary diagnosis or treatment of illness or injury. This is true even though the service or supply is not specifically excluded. All treatment is subject to review for medical necessity. Review of treatment may involve prior approval, concurrent review of the continuation of treatment, post-treatment review or any combination of these. For additional information, see 'medically necessary' in the Definitions section of this Summary Plan Description. SingleSource Self-Insured 30 Be careful. Your healthcare provider could prescribe services or supplies that are not covered under this plan. Also, just because a service or supply is a covered benefit does not mean all related charges will be paid. Healthcare Providers This plan provides benefits only for covered expenses and supplies rendered a physician (M.D. or O.D.), practitioner, nurse, hospital or specialized treatment facility, durable medical equipment supplier, or other licensed medical provider as specifically stated in this Summary Plan Description. The services or supplies provided by individuals or companies that are not specified as eligible practitioners are not eligible for reimbursement under the benefits of this plan. For additional information, see 'practitioner', 'specialized treatment facility', and 'durable medical equipment supplier' in the Definitions section of this Summary Plan Description. Your Annual Deductible Deductible Carryover. The deductible must be satisfied only once in any benefit year, even though there may be several conditions treated. Covered expenses incurred during the last three (3) months of the previous benefit year will be applied to the subsequent year's benefit year deductible subject to the following: • The covered expenses were applied to the deductible, • The covered expenses were incurred during the last three (3) months of the year; and • The prior year's deductible was not satisfied. Final determination of which expenses apply to the deductible will be based on the order in which charges are incurred, even if bills for charges are not received in that order. Your Annual Out-of-Pocket Limit This plan has an out-of-pocket limit provision to protect you from excessive medical expenses. The Medical Benefit Summary shows your plan's annual out-of-pocket limits for participating and/or nonparticipating providers. If you incur covered expenses over those amounts, this plan will pay 100 percent of eligible charges, subject to the allowable fee. Your expenses for the following do not count toward the annual out-of-pocket limit: • Charges applied to deductible, if applicable to your plan • Co-payments, if applicable to your plan • Prescription drugs • Charges over the allowable fee for services of non-participating providers • Incurred charges that exceed amounts allowed under this plan Charges over the allowable fee for services of non-participating providers, and incurred charges that exceed amounts allowed under this plan, and co-payments will continue to be your responsibility even after the out-of-pocket or stop-loss limit is reached. Prescription drug benefits are not affected by the out-of-pocket or stop-loss limit. You will still be responsible for that co-payment or co-insurance payment even after the out-of-pocket or stop-loss limit is reached. MEDICAL BENEFITS About Your Medical Benefits All benefits provided under this plan must satisfy some basic conditions. The following conditions are commonly included in health benefit plans but are often overlooked or misunderstood. SingleSource Self-Insured 31 Medical Necessity - The plan provides benefits only for covered services and supplies that are medically necessary for the treatment of a covered illness or injury. Be careful-just because a treatment is prescribed by a healthcare professional does not necessarily mean it is medically necessary as defined by the plan. And, some medically necessary services and supplies may be excluded from coverage. Also, the treatment must not be experimental and/or investigational. Allowable Fees - The plan provides benefits only for covered expenses that are equal to or less than the allowable amount, as defined by the plan, in the geographic area where services or supplies are provided. Any amounts that exceed the allowable amount are not recognized by the plan for any purpose. Health Care Provider - The plan provides benefits only for covered expenses and supplies rendered by a physician, practitioner, nurse, hospital or specialized treatment facility, durable medical equipment supplier, or other licensed medical provider as specifically stated in this plan summary. The services or supplies provided by individuals or companies that are not specified as eligible practitioners are not eligible for reimbursement under the benefits of this plan. For additional information, see practitioner, specialized treatment facility, and durable medical equipment in the Definitions section of this document. Custodial Care Providers - The plan does not provide benefits for services and supplies that are furnished primarily to assist an individual in the activities of daily living. Activities of daily living include such things as bathing, feeding, administration of oral medications, academic, social, or behavior skills training, and other services that can be provided by persons without the training of a health care practitioner. Benefit Year- The word year, as used in this document, refers to the benefit year, which is the 12- month period beginning. January 1 and ending December 31. Unless otherwise specified, all annual benefit maximums and deductibles accumulate during the benefit year. Deductibles - A deductible is the amount of covered expenses you must pay during each year before the plan will consider expenses for reimbursement. The individual deductible applies separately to each covered person. The family deductible applies collectively to all covered persons in the same family. When the family deductible is satisfied, no further deductible will be applied for any covered family member during the remainder of the year. The annual individual and family deductible amounts are shown on the Medical Benefit Summary. Benefit Percentage Payable - Benefit percentage payable represents the portion of covered expenses paid by the plan after you have satisfied any applicable deductible. These percentages apply only to covered expenses which do not exceed the allowable amount. You are responsible for all remaining covered and non-covered expenses, including any amount that exceeds the allowable amount for covered services. The benefit percentages payable are shown on the Medical Benefit Summary. Co-payments - Co-payments are the first-dollar amounts you must pay for certain covered services, which are usually paid at the time the service is performed (i.e. physician office visits or emergency room visits). These co-payments do not apply to your annual deductible or out-of-pocket maximum, unless otherwise specified on the Medical Benefit Summary. The co-payment amounts are shown on the Medical Benefit Summary. Out-Of-Pocket Maximum(s) -An out-of-pocket maximum is the maximum amount of covered expenses you must pay during a year, before the plan's benefit percentage payable increases. The individual out-of-pocket maximum applies separately to each covered person. When a covered person reaches the annual out-of-pocket maximum, the plan will pay 100% of additional covered expenses for that individual during the remainder of that year, subject to the lifetime maximum amount, if applicable. However, expenses for services which do not apply to the out-of-pocket maximum will never be paid at 100%. The annual individual and family out-of-pocket maximum amounts are shown on the Medical Benefit Summary. Benefit Maximums - Total plan payments for each covered person are limited to certain maximum benefit amounts. A benefit maximum can apply to specific benefit categories or to all benefits. A benefit maximum amount may also apply to a specific time period, such as annual. SingleSource Self-Insured 32 Least Costly Setting For Services - Benefits of the plan provide for reimbursement of covered services performed in the least costly setting where services can.be safely, provided. If a procedure can be done safely in an outpatient setting but is performed in a hospital inpatient setting, this plan will only pay what it would have paid for the procedure on an outpatient basis. If services are performed in an inappropriate setting, your benefits may be reduced. PLAN BENEFITS This plan provides benefits for the following services and supplies as outlined on your Medical Benefit Summary. These services and supplies may require you to satisfy a deductible, make a co-payment, or both, and they may be subject to additional limitations or maximum dollar amounts. For a medical expense to be eligible for payment, you must be covered under this plan on the date the expense is incurred. Please refer to your Medical Benefit Summary and the Benefit, Limitations and Exclusions section of this Summary Plan Description for more information. Accident Benefit In the event of an injury caused by an accident the plan benefit will be as follows: The first $1,000 of covered expenses within 90 days of an accident is covered at no charge and is not subject to the deductible. The balance is covered as stated in your Medical Benefit Summary for covered expense. 'Accident' means an unforeseen or unexpected event causing injury which requires medical attention. 'Injury' means bodily trauma or damages which is independent of disease or infirmity. The damage must be caused solely through external and accidental means. For the purpose of this benefit, injury does not include musculoskeletal sprains or strains obtained in the performance of physical activity. PREVENTIVE CARE SERVICES This plan covers the following preventive care services when provided by a physician, physician assistant, or nurse practitioner: • Routine physicals for members age 22 and older according to the following schedule:. - Ages 22 and over One exam every benefit year Only laboratory work tests and other diagnostic testing procedures related to the routine physical exam are covered by this benefit. Any laboratory tests and other diagnostic testing procedures ordered during, but not related to, a routine physical examination are not covered by this preventative care benefit. Please see Outpatient Services in this section. • Well woman visits, including the following: - One routine gynecological exam each benefit year for women 18 and over. Exams may include Pap smear, pelvic exam, breast exam, blood pressure check, and weight check. Exams may also include an annual mammogram for women over the age of 40, once between the ages of 35-40 unless medically necessary, for the purpose of early detection. Covered lab services are limited to occult blood, urinalysis, and complete blood count. - Routine preventive mammograms for women as recommended. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for'Preventive Care - Well Woman Visits' applies to mammograms that are considered 'routine' according to the guidelines of the U.S. Preventive Services Task Force. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for'Outpatient Services - Diagnostic and Therapeutic Radiology and Lab' applies to diagnostic mammograms related to the ongoing evaluation or treatment of a medical condition. - Pelvic exams and Pap smear exams at any time upon referral of a women's healthcare provider; and pelvic exams and Pap smear exams annually for women 18 to 64 years of age with or without a referral from a women's healthcare provider. SingleSource Self-Insured 33 Breast exams annually for women 18 years of age or older or at anytime when recommended by a women's healthcare provider for the purpose of checking for lumps and other changes for early detection and prevention of breast cancer. • Colorectal cancer screening exams and lab work including the following: - A fecal occult blood test once per benefit year - A flexible sigmoidoscopy every five benefit years - A colonoscopy for age 50+ every ten benefit years o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for'Preventive Care - Routine Colonoscopy' applies to colonoscopies that are considered 'routine' according to the guidelines of the U.S. Preventive Services Task Force. o The deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for 'Professional Services - Surgery' and for'Outpatient Services - Outpatient Surgery/Services' apply to colonoscopies related to ongoing evaluation or treatment of a medical condition. - A double contrast barium enema every five benefit years • Prostate cancer screening, every two benefit years. Exams may include a digital rectal examination and a prostate-specific antigen test. Screenings apply to outpatient surgery/services benefit regardless of whether they are preventive or diagnostic. • Well baby/well child care exams for members age 21 and younger according to the following schedule: - At birth: One standard in-hospital exam - Ages 0 - 2: 12 additional exams during first 36 months of life - Ages 3 - 21: One exam per benefit year Newborn circumcision is a covered benefit even if performed several days after birth. Only laboratory tests and other diagnostic testing procedures related to a well baby/child care exam are covered by this plan. Any laboratory tests and other diagnostic testing procedures ordered during, but not related to, a well baby/child care exam are not covered by this preventative care benefit. Please see Outpatient Services in this section. • Standard age-appropriated childhood and adult immunizations for primary prevention of infectious diseases as recommended by and adopted the Centers for Disease Control and Prevention, American Academy of Pediatrics, American Academy of Family Physicians, or similar standard- setting body. Benefits do not include immunizations for more elective, investigative, unproven, or discretionary reasons (e.g. travel). Covered immunizations include, but may not be limited to the following: - Diphtheria, pertussis, and tetanus (DPT) vaccines, given separately or together - Hemophilus influenza B vaccine - Hepatitis A vaccine - Hepatitis B vaccine - Human papillomavirus (HPV) vaccine - Influenza vaccine - Measles, mumps, and rubella (MMR) vaccines, given separately or together - Meningococcal (meningitis) vaccine - Pneumococcal vaccine - Polio vaccine - Varicella (chicken pox) vaccine SingleSource Self-Insured 34 • Tobacco use cessation program services are covered only when provided by a PacificSource approved program. Approved programs are covered at 100% of the cost up to a maximum lifetime benefit of two quit attempts. Approved programs are limited to members age 15 or older. Specific nicotine replacement therapy will only be covered according to the program's description. If this policy includes benefits for prescription drugs, tobacco use cessation related medication prescribed in conjunction with an approved tobacco use cessation program will be covered to the same extent this policy covers other prescription medications. PROFESSIONAL SERVICES This plan covers the following professional services when medically necessary: • Services of a physician (M.D. or D.O.) for diagnosis or treatment of illness or injury • Services of a licensed physician assistant under the supervision of a physician • Services of a certified surgical assistant, surgical technician, or registered nurse (R.N.) when providing medically necessary services as a surgical first assistant during a covered surgery • Services of a nurse practitioner, including certified registered nurse anesthetist (C.R.N.A.) and certified nurse midwife (C.N.M.), for medically necessary diagnosis or treatment of illness or injury • Urgent care services provided by a physician. Urgent care is unscheduled medical care for an illness, injury, or disease that a prudent lay person would consider not life-threatening and treatable at urgent care. Examples of urgent care situations include sprains, cuts, and illnesses that do not require immediate medical attention in order to prevent seriously damaging the health of the person. • Outpatient rehabilitative services provided by a licensed physical therapist, occupational therapist, speech language pathologist, physician, or other practitioner licensed to provide physical, occupational, or speech therapy. Services must be prescribed in writing by a licensed physician, dentist, podiatrist, nurse practitioner, or physician assistant. The prescription must include site, modality, duration, and frequency of treatment. Total covered expenses for outpatient rehabilitative services is limited to a combined maximum of 30 visits per benefit year subject to preauthorization and concurrent review by PacificSource for medical necessity. Only treatment of neurologic conditions (e.g. stroke, spinal cord injury, head injury, pediatric neurodevelopmental problems, and other problems associated with pervasive developmental disorders for which rehabilitative services would be appropriate for children under 18 years of age) may be considered for additional benefits, not to exceed 30 visits per condition, when criteria for supplemental services are met. • Services for speech therapy will only be allowed when needed to correct stuttering, hearing loss, peripheral speech mechanism problems, and deficits due to neurological disease or injury. Speech and/or cognitive therapy for acute illnesses and injuries are covered up to one year post injury when the services do not duplicate those provided by other eligible providers, including occupational therapists or neuropsychologists. • Outpatient pulmonary rehabilitation programs are covered when prescribed by a physician for patients with severe chronic lung disease that interferes with normal daily activities despite optimal medication management. • For related provisions, see 'motion analysis', 'vocational rehabilitation', and 'speech therapy' under 'Excluded Services - Types of Treatments' in the Benefit Limitations and Exclusions section of this Summary Plan Description. • Services of a physician or a licensed certified nurse midwife for pregnancy. Services are subject to the same payment amounts, conditions, and limitations that apply to similar expenses for illness, except that pregnancy is not considered a pre-existing condition. Please contact the PacificSource Customer Service Department as soon as you learn of your pregnancy. PacificSource's staff will explain your plan's maternity benefits and help you enroll in PacificSource's free prenatal care program. • Routine nursery care of a newborn while the mother is hospitalized and eligible for pregnancy- related benefits under this plan if the newborn is also eligible and enrolled in this plan. • Services of a licensed audiologist for medically necessary audiological (hearing) tests. SingleSource Self-Insured 35 • Services of a dentist or physician to treat injury of the jaw or natural teeth. Services must be provided within 18 months of the injury. Except for the initial examination, services for treatment of an injury to the jaw or natural teeth require preauthorization to be covered. • Services of a dentist or physician for orthognathic (jaw) surgery as follows: - When medically necessary to repair an accidental injury. Services must be provided within one year after the accident. - For removal of a malignancy, including reconstruction of the jaw within one year after that surgery • Services of a board-certified or board-eligible genetic counselor when referred by a physician or nurse practitioner for evaluation of genetic disease • Medically necessary telemedical health services for health services covered by this plan when provided in person by a healthcare professional when the telemedical health service does not duplicate or supplant a health service that is available to the patient in person. The location of the patient receiving telemedical health services may include, but is not limited to: hospital; rural health clinic, federally qualified health center; physician's office, community mental health center, skilled nursing facility; renal dialysis center, or site where public health services are provided. Coverage of telemedical health services are subject to the same deductible, co-payment, or co-insurance requirements that apply to comparable health services provided in person. HOSPITAL AND SKILLED NURSING FACILITY SERVICES This plan covers medically necessary hospital inpatient services. Charges for a hospital room are covered up to the hospital's semi-private room rate (or private room rate, if the hospital does not offer semi-private rooms). Charges for a private room are covered if the attending physician orders hospitalization in an intensive care unit, coronary care unit, or private room for medically necessary isolation. Coverage includes eligible services provided by a hospital owned or operated by the state of Oregon, or any state approved mental health and developmental disabilities program. In addition to the hospital room, covered inpatient hospital services may include (but are not limited to): • Cardiac care unit • Operating room • Anesthesia and post-anesthesia recovery • Respiratory care • Inpatient medications • Lab and radiology services • Dressings, equipment, and other necessary supplies The plan does not cover charges for rental of telephones, radios, or televisions, or for guest meals or other personal items. Services of a skilled nursing facility and convalescent homes are covered for up to 120 days per benefit year when preauthorized by PacificSource. Services must be medically necessary. Confinement for custodial care is not covered. Inpatient rehabilitative services are covered up to a maximum of 50 days of rehabilitative care per benefit year, except that treatment for head or spinal cord injuries is covered for up to 60 days per benefit year. Recreation therapy is only covered as part of an inpatient rehabilitation admission. Services must be preauthorized by PacificSource OUTPATIENT SERVICES This plan covers the following outpatient care services: • Advanced diagnostic imaging procedures that are medically necessary for the diagnosis of illness or injury. For purposes of this benefit, advanced diagnostic imaging procedures include CT scans, MRIs. PET scans, CATH labs and nuclear cardiology studies. When services are provided SingleSource Self-Insured 36 as part of a covered emergency room visit, your plan's emergency room benefit applies. In all other situations and settings, benefits are subject to the deductibles, co-payments, and/or co-insurance stated in your Medical Benefit Summary for Outpatient Services - Advanced Diagnostic Imaging. • Diagnostic radiology and laboratory procedures provided or ordered by a physician, nurse practitioner, or physician assistant. These services may be performed or provided by laboratories, radiology facilities, hospitals, and physicians, including services in conjunction with office visits. • Benefits for members who are receiving services for end-stage renal disease (ESRD), who are eligible for Medicare, are limited to 125% of the current Medicare allowable amount for participating and nonparticipating ESRD service providers. Benefits will continue to be paid at the cost share level applied to other benefits in the same category for members who are not eligible for Medicare. PacificSource will contact members when the first ESRD preauthorization request is received to assist the member in understanding their out-of-pocket expenses and care plan. • Emergency room services. The emergency room co-payment stated in your Medical Benefit Summary covers medical screening and any diagnostic tests needed for emergency care, such as radiology, laboratory work, CT scans, and MRIs. The co-payment does not cover further treatment provided on referral from the emergency room. In true medical emergencies, non-participating providers are paid at the participating provider level. Emergency room charges for services, supplies, or conditions excluded from coverage under this plan are not eligible for payment. Please see the Benefit Limitations and Exclusions section of this Summary Plan Description. • Surgery and other outpatient services. Benefits are based on the setting where services are performed. - For surgeries or outpatient services performed in a physician's office, the benefit stated in your Medical Benefit Summary for Professional Services - Office Procedures and Supplies applies. - For surgeries or outpatient services performed in an ambulatory surgical center or outpatient hospital setting, both the benefits stated in your Medical Benefit Summary for Professional Services - Surgery and the Outpatient Services -Outpatient Surgery/Services apply. • Therapeutic radiology services, chemotherapy, and renal dialysis provided or ordered by a physician. Covered services include a prescribed, orally administered anticancer medication used to kill or slow the growth of cancerous cells. • Other medically necessary diagnostic services provided in a hospital or outpatient setting, including testing or observation to diagnose the extent of a medical condition. EMERGENCY SERVICES In a true medical emergency, this plan covers services and supplies necessary to determine the nature and extent of the emergency condition and to stabilize the patient. An emergency medical condition is an injury or sudden illness, including severe pain, so severe that a prudent layperson with an average knowledge of health and medicine would expect that failure to receive immediate medical attention would risk seriously damaging the health of a person or fetus in the case of a pregnant woman. Examples of emergency medical conditions include (but are not limited to): • Unusual or heavy bleeding • Sudden abdominal or chest pains • Suspected heart attacks • Major traumatic injuries • Serious burns • Poisoning • Unconsciousness • Convulsions or seizures SingleSource Self-Insured 37 • Difficulty breathing • Sudden fevers If you need immediate assistance for a medical emergency, call 911. If you have an emergency medical condition, you should go directly to the nearest emergency room or appropriate facility. Care fora medical emergency is covered at the participating provider percentage stated in your Medical Benefit Summary even if you are treated at a non-participating hospital. If you are admitted to a non-participating hospital after your emergency condition is stabilized, your Plan Sponsor may require you to transfer to a participating facility in order to continue receiving benefits at the participating provider level. Maternity Services Maternity means, in any one pregnancy, all prenatal services including complications and miscarriage, delivery, postnatal services provided within six months of delivery, and routine nursery care of a newborn child. Maternity services are covered subject to the deductible, co-payments, and/or co- insurance stated in your Medical Benefit Summary regardless of marital status. • Services of a physician or a licensed certified nurse midwife for pregnancy. Services are subject to the same payment amounts, conditions, and limitations that apply to similar expenses for illness. • Please contact the PacificSource Customer Service Department as soon as you learn of your pregnancy. PacificSource's staff will explain your plan's maternity benefits and help you enroll in PacificSource's free prenatal care program. This plan provides routine nursery care of a newborn while the mother is hospitalized and eligible for pregnancy-related benefits under this plan if the newborn is also eligible and enrolled in this plan, regardless of marital status. Special Information about Childbirth- This plan covers hospital inpatient services for childbirth according to the Newborns' and Mothers' Health Protection Act of 1996. This plan does not restrict the length of stay for the mother or newborn child to less than 48 hours after vaginal delivery, or to less than 96 hours after Cesarean section delivery. Your provider is allowed to discharge you or your newborn sooner than that, but only if you both agree. For childbirth, your provider does not need to preauthorize your hospital stay with PacificSource. MENTAL HEALTH AND CHEMICAL DEPENDENCY SERVICES This plan covers medically necessary crisis intervention, diagnosis, and treatment of mental health conditions and chemical dependency. Refer to the Benefit Limitations and Exclusions section of this Summary Plan Description for more information on services not covered by your plan. Mental Health and Chemical Dependency Services It is the intent of this plan to comply with all existing regulations of Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). If for some reason the information presented in the plan differs from the actual regulations of the MHPAEA, the plan reserves the right to administer the plan in accordance with such actual regulations. Providers Eligible for Reimbursement A mental and/or chemical healthcare provider (see Definitions section of this Summary Plan Description) is eligible for reimbursement if: • The mental and/or chemical healthcare provider is approved by the Oregon Department of Human Services; • The mental and/or chemical healthcare provider is accredited for the particular level of care for which reimbursement is being requested by the Oregon Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities; or SingleSource Self-Insured 38 • The patient is staying overnight at the mental and/or chemical healthcare facility (see Definitions section of this Summary Plan Description) and is involved in a structured program at least eight hours per day, five days per week; or • The mental and/or chemical healthcare provider is providing a covered benefit under this policy; and Eligible mental and/or chemical healthcare providers are: • A program licensed, approved, established, maintained, contracted with, or operated by the Addictions and Mental Health Division of the Oregon Health Authority; • A medical or osteopathic physician licensed by the State Board of Medical Examiners; • A psychologist (Ph.D.) licensed by the State Board of Psychologists' Examiners; • A nurse practitioner registered by the State Board of Nursing; • A clinical social worker (L.C.S.W.) licensed by the State Board of Clinical Social Workers; • A Licensed Professional Counselor (L.P.C) licensed by the State Board of Licensed Professional Counselors and Therapists; • A Licensed Marriage and Family Therapist (L.M.F.T) licensed by the State Board of Licensed Professional Counselors and Therapists; and • A hospital or other healthcare facility licensed by the Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities for inpatient or residential care and treatment of mental health conditions and/or chemical dependency. Medical Necessity and Appropriateness of Treatment • As with all medical treatment, mental health and chemical dependency treatment is subject to review for medical necessity and/or appropriateness. Review of treatment may involve pre-service review, concurrent review of the continuation of treatment, post-treatment review, or a combination of these. PacificSource will notify the patient and patient's provider when a treatment review is necessary to make a determination of medical necessity. • A second opinion may be required for a medical necessity determination. PacificSource will notify the patient when this requirement is applicable. • PacificSource must be notified of an emergency admission within two business days. • Medication management by an M.D. (such as a psychiatrist) does not require review. • Treatment of substance abuse and related disorders is subject to placement criteria established by the American Society of Addiction Medicine. Mental Health Parity and Addiction Equity Act of 2008 This group health plan complies with all federal laws and regulations related to the Mental Health Parity and Addiction Equity Act of 2008. HOME HEALTH AND HOSPICE SERVICES • This plan covers home health services up to 180 visits per benefit year when preauthorized by PacificSource. Covered services include skilled nursing by a R.N. or L.P.N.; physical, occupational, and speech therapy; and medical social work services provided by a licensed home health agency. Private duty nursing is not covered. • Home infusion services are covered when preauthorized by PacificSource. This benefit covers parenteral nutrition, medications, and biologicals (other than immunizations) that cannot be self- administered. Benefits are paid at the percentage stated in your Medical Benefit Summary for home health care. • This plan covers hospice services when preauthorized by PacificSource. Hospice services are intended to meet the physical, emotional, and spiritual needs of the patient and family during the final stages of illness and dying, while maintaining the patient in the home setting. Services are intended to supplement the efforts of an unpaid caregiver. Hospice benefits do not cover services of a primary caregiver such as a relative or friend, or private duty nursing. PacificSource uses the following criteria to determine eligibility for hospice benefits: SingleSource Self-Insured 39 The member's physician must certify that the member is terminally ill with a life expectancy of less than six months; The member must be living at home; - A non-salaried primary caregiver must be available and willing to provide custodial care to the member on a daily basis; and - The member must not be undergoing treatment of the terminal illness other than for direct control of adverse symptoms. Only the following hospice services are covered: - Home nursing visits. - Home health aides when necessary to assist in personal care. Home visits by a medical social worker. - Home visits by the hospice physician. - Prescription medications for the relief of symptoms manifested by the terminal illness. - Medically necessary physical, occupational, and speech therapy provided in the home. - Home infusion therapy. Durable medical equipment, oxygen, and medical supplies. - Respite care provided in a nursing facility to provide relief for the primary caregiver, subject to a maximum of five consecutive days and to a lifetime maximum benefit of 30 days. A member must be enrolled in a hospice program to be eligible for respite care benefits. Inpatient hospice care when provided by a Medicare-certified or state-certified program when admission to an acute care hospital would otherwise be medically necessary. - Pastoral care and bereavement services. The member retains the right to all other services provided under this contract, including active treatment of non-terminal illnesses, except for services of another provider that duplicate the services of the hospice team. DURABLE MEDICAL EQUIPMENT • This plan covers prosthetic and orthotic devices that are medically necessary to restore or maintain the ability to complete activities of daily living or essential job-related activities and that are not solely for comfort or convenience. Benefits include coverage of all services and supplies medically necessary for the effective use of a prosthetic or orthotic device, including formulating its design, fabrication, material and component selection, measurements, fittings, static and dynamic alignments, and instructing the patient in the use of the device. Benefits also include coverage for any repair or replacement of a prosthetic or orthotic device that is determined medically necessary to restore or maintain the ability to complete activities of daily living or essential job-related activities and that is not solely for comfort or convenience. • This plan covers durable medical equipment prescribed exclusively to treat medical conditions. Covered equipment includes crutches, wheelchairs, orthopedic braces, home glucose meters, equipment for administering oxygen, and non-power assisted prosthetic limbs and eyes. Durable medical equipment must be prescribed by a licensed M.D., D.O., N.P., P.A., D.D.S., D.M.D., or D.P.M. to be covered. This plan does not cover equipment commonly used for nonmedical purposes, for physical or occupational therapy, or prescribed primarily for comfort. Please see 'Excluded Services - Equipment and Devices' in the Benefit Limitations and Exclusions section for information on items not covered. The following limitations apply to durable medical equipment: - This benefit covers the cost of either purchase or rental of the equipment for the period needed, whichever is less. Repair or replacement of equipment is also covered when necessary, subject to all conditions and limitations of the plan. If the cost of the purchase, rental, repair, or replacement is over $800, preauthorization by PacificSource is required. - Only expenses for durable medical equipment, or prosthetic and orthotic devices that are provided by a PacificSource contracted provider or a provider that satisfies the criteria of the Medicare fee schedule for Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, Supplies (DMEPOS) and Other Items and Services Summary Plan Description SingleSource Self-Insured 40 are eligible for reimbursement. Mail order or Internet/Web based providers are not eligible providers. Purchase, rental, repair, lease, or replacement of a power-assisted wheelchair (including batteries and other accessories) requires preauthorization by PacificSource and is payable only in lieu of benefits for a manual wheelchair. The durable medical equipment benefit also covers lenses to correct a specific vision defect resulting from a severe medical or surgical problem, such as stroke, neurological disease, trauma, or eye surgery other than refraction procedures. Coverage is subject to the following limitations: o The medical or surgical problem must cause visual impairment or disability due to loss of binocular vision or visual field defects (not merely a refractive error or astigmatism) that requires lenses to restore some normalcy to vision. o The maximum allowance for glasses (lenses and frames), or contact lenses in lieu of glasses, is limited to $200 per initial case. 'Initial case' is defined as the first time surgery or treatment is performed on either eye. Other policy limitations, such as exclusions for extra lenses, other hardware, tinting of lenses, eye exercises, or vision therapy, also apply. o Benefits for subsequent medically necessary vision corrections to either eye (including an eye not previously treated) are limited to the cost of lenses only. Reimbursement is subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment and is in lieu of, and not in addition to benefits payable under any vision endorsement that may be added to this plan. The durable medical equipment benefit also covers hearing aids for members under 18 years of age and younger, or 25 years of age and younger if the member is enrolled in a secondary school or an accredited educational institution. Coverage is limited to a maximum benefit of $4,000 every 48 months. The benefit amount may be adjusted on January 1 of each year to reflect the U.S City Average Consumer Price Index. Medically necessary treatment for sleep apnea and other sleeping disorders is covered when preauthorized by PacificSource. Coverage of oral devices includes charges for consultation, fitting, adjustment, follow-up care, and the appliance. The appliance must be prescribed by a physician specializing in evaluation and treatment of obstructive sleep apnea, and the condition must meet criteria for obstructive sleep apnea. Wigs following chemotherapy or radiation therapy are covered up to a maximum benefit of $150 per benefit year. Breastfeeding pumps, manual and electric, are covered at no cost per pregnancy when purchased or rented from a licensed provider, or purchased from a retail outlet. Hospital- grade breast pumps are excluded under preventive care and regular benefits. TRANSPLANT SERVICES This plan covers certain medically necessary organ and tissue transplants. It also covers the cost of acquiring organs or tissues needed for covered transplants and limited travel expenses for the patient, subject to certain limitations. All pretransplant evaluations, services, treatments, and supplies for transplant procedures require preauthorization by PacificSource. You must have been covered under this plan for at least 24 consecutive months or since birth to be eligible for transplant benefits, including benefits for transplantation evaluation. See Exclusion Periods - Transplants in the Benefit Limitations and Exclusions section of this Summary Plan Description for details. This plan covers the following medically necessary organ and tissue transplants: • Kidney • Kidney - Pancreas SingleSource Self-Insured 41 • Pancreas whole organ transplantation (under certain criteria) • Heart • Heart - Lung • Lung • Liver (under certain criteria) • Bone marrow and peripheral blood stem cell • Pediatric bowel This plan only covers transplants of human body organs and tissues. Transplants of artificial, animal, or other non-human organs and tissues are not covered. Expenses for the acquisition of organs or tissues for transplantation are covered only when the transplantation itself is covered under this contract, and is subject to the following limitations: • Testing of related or unrelated donors for a potential living related organ donation is payable at the same percentage that would apply to the same testing of an insured recipient. • Expense for acquisition of cadaver organs is covered, payable at the same percentage and subject to the same maximum dollar limitation, if any, as the transplant itself. • Medical services required for the removal and transportation of organs or tissues from living donors are covered. Coverage of the organ or tissue donation is at the same percentage payable for the transplant itself up to $8,000 if the donor is a member of this plan, and applies to the maximum dollar limitation for the transplant, if any. - If the donor is not a PacifcSource member, only those complications of the donation that occur during the initial hospitalization are covered up to $8,000, and such complications are covered only to the extent that they are not covered by another health plan or government program. Coverage is at the same percentage payable for the transplant itself, and also applies to the maximum dollar limitation, if any, for the transplant. - If the donor is a PacificSource member, complications of the donation are covered as any other illness would be covered, up to $8,000 (as outlined above). • Transplant related services, including HLA typing, sibling tissue typing, and evaluation costs, are considered transplant expenses and accumulate toward any transplant benefit limitations and are subject to PacificSource's provider contractual agreements (see Payment of Transplant Benefits, below). Travel and housing expenses for the recipient are limited to $5,000 per transplant. Travel and living expenses are not covered for the donor. Payment of Transplant Benefits If a transplant is performed at a participating Center of Excellence transplantation facility, covered charges of the facility are subject to plan deductibles (co-insurance and co-payment amounts after deductible are waived). If PacificSource's contract with the facility includes the services of the medical professionals performing the transplant (such as physicians, nurses, and anesthesiologists), those charges are also subject to plan deductibles (co-insurance and co-payment amounts after deductible are waived). If the professional fees are not included in PacificSource's contract with the facility, then those benefits are provided according to your Medical Benefit Summary. If transplant services are available through a contracted transplantation facility but are not performed at a contracted facility, you are responsible for satisfying any deductibles or co-payments stated in your Medical Benefit Summary. This plan then pays at of 60% of the LICR after deductible and co-payments. Services of non-participating medical professionals are paid at the non-participating provider benefit level percentages and do not apply to the out-of-pocket maximum. OTHER COVERED SERVICES, SUPPLIES, AND TREATMENTS • This plan covers services of a state certified ground or air ambulance when private transportation is medically inappropriate because the acute medical condition requires paramedic support. SingleSource Self-Insured 42 Benefits are provided for emergency ambulance service and/or transport to the nearest facility capable of treating the condition. Air ambulance service is covered only when ground transportation is medically or physically inappropriate. Reimbursement to nonparticipating air ambulance services are based on 125% of the Medicare allowance. In some cases Medicare allowance may be significantly lower than the provider's billed amount. The provider may hold you responsible for the amount they bill in excess of the Medicare allowance, as well as applicable deductibles and co- insurance. Medically necessary travel, other than transportation by a licensed ambulance service, to the nearest facility qualified to treat the patient's medical condition is covered when approved in advance by PacificSource. • This plan covers biofeedback to treat migraine headaches or urinary incontinence when provided by an otherwise eligible practitioner. • This plan covers blood transfusions, including the cost of blood or blood plasma. • This plan covers removal, repair, or replacement of an internal breast prosthesis due to a contracture or rupture, but only when the original prosthesis was for a medically necessary mastectomy. Preauthorization by PacificSource is required, and eligibility for benefits is subject to the following criteria: - The contracture or rupture must be clinically evident by a physician's physical examination, imaging studies, or findings at surgery. - This plan covers removal, repair, and/or replacement of the prosthesis; a new reconstruction is not covered. - Removal, repair, and/or replacement of the prosthesis is not covered when recommended due to an autoimmune disease, connective tissue disease, arthritis, allergenic syndrome, psychiatric syndrome, fatigue, or other systemic signs or symptoms. PacificSource may require a signed loan receipt/subrogation agreement before providing coverage for this benefit. • This plan covers breast reconstruction in connection with a medically necessary mastectomy. Coverage is provided in a manner determined in consultation with the attending physician and patient for: - All stages of reconstruction of the breast on which the mastectomy was performed; - Surgery and reconstruction of the other breast to produce a symmetrical appearance; - Prostheses; and - Treatment of physical complications of the mastectomy, including lymphedema Benefits for breast reconstruction are subject to all terms and provisions of the plan, including deductibles, co-payments and/or co-insurance stated in your Medical Benefit Summary. • This plan covers cardiac rehabilitation as follows: - Phase I (inpatient) services are covered under inpatient hospital benefits. - Phase II (short-term outpatient) services are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for outpatient hospital benefits. Benefits are limited to services provided in connection with a cardiac rehabilitation exercise program that does not exceed 36 sessions and that are considered reasonable and necessary. - Phase III (long-term outpatient) services are not covered. • This plan covers IUD, diaphragm, Norplant and cervical cap contraceptive devices along with their insertion or removal. Contraceptive devices that can be obtained over the counter or without a prescription, such as condoms are not covered. • This plan covers corneal transplants. Preauthorization is not required. • In the following situations, this plan covers one attempt at cosmetic or reconstructive surgery: - When necessary to correct a functional disorder; or - When necessary because of an accidental injury, or to correct a scar or defect that resulted from treatment of an accidental injury; or SingleSource Self-Insured 43 When necessary to correct a scar or defect on the head or neck that resulted from a covered surgery. Cosmetic or reconstructive surgery must take place within 16 months after the injury, surgery, scar, or defect first occurred. Preauthorization by PacificSource is required for all cosmetic and reconstructive surgeries covered by this plan. For information on breast reconstruction, see 'breast prosthesis' and 'breast reconstruction' in this section. This plan covers dental and orthodontic services for the treatment of craniofacial anomalies when medically necessary to restore function. Coverage includes but is not limited to physical disorders identifiable at birth that affect the bony structures of the face or head, such as cleft palate, cleft lip, craniosynostosis, craniofacial microsomia and Treacher Collins syndrome. Coverage is limited to the least costly clinically appropriate treatment. Cosmetic procedures and procedures to improve on the normal range of functions are not covered. See the exclusions-for cosmetic/reconstructive services, dental examinations and treatment, jaw surgery, and orthognathic surgery under the 'Excluded Services' section • This plan provides coverage for certain diabetic supplies and training as follows: Diabetic supplies other than insulin and syringes (such as lancets, test strips, and glucostix) are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. You may purchase those supplies from any retail outlet and send your receipts to PacificSource, along with your name, group number, and member ID number. PacificSource will process the claim and mail you a reimbursement check. Diabetic insulin and syringes are covered under your prescription drug benefit, if your plan includes prescription coverage. Lancets and test strips are also available under that prescription benefit in lieu of those covered supplies under the medical plan. - This plan covers one diabetes self-management education program at the time of diagnosis, and up to three hours of education per year if there is a significant change in your condition or its treatment. To be covered, the training must be provided by an accredited diabetes education program, or by a physician, registered nurse, nurse practitioner, certified diabetes educator, or licensed dietitian with expertise in diabetes. - This plan covers medically necessary telemedical health services provided in connection with the treatment of diabetes (see Professional Services in this section). • This plan covers dietary or nutritional counseling provided by a registered dietitian under certain circumstances. It is covered under the diabetic education benefit, or for management of inborn errors of metabolism (excluding obesity), or for management of anorexia nervosa or bulimia nervosa (to a lifetime maximum of five visits). This plan covers nonprescription elemental enteral formula' ordered by a physician for home use. Formula is covered when medically necessary to treat severe intestinal malabsorption and the formula comprises a predominant or essential source of nutrition. Coverage is subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. This plan covers routine foot care for patients with diabetes mellitus. • Hospitalization for dental procedures is covered when the patient has another serious medical condition that may complicate the dental procedure, such as serious blood disease, unstable diabetes, or severe cardiovascular disease, or the patient is physically or developmentally disabled with a dental condition that cannot be safely and effectively treated in a dental office. Coverage requires preauthorization by PacificSource, and only charges for the facility, anesthesiologist, and assistant physician are covered. Hospitalization because of the patient's apprehension or convenience is not covered. • This plan covers treatment for inborn errors of metabolism involving amino acid, carbohydrate, and fat metabolism for which widely accepted standards of care exist for diagnosis, treatment, and monitoring exist, including quantification of metabolites in blood, urine or spinal fluid or enzyme or DNA confirmation in tissues. Coverage includes expenses for diagnosing, monitoring and controlling the disorders by nutritional and medical assessment, including but not limited to clinical visits, biochemical analysis and medical foods used in the treatment of such disorders. Nutritional supplies are covered subject to the deductible, co-payment, and/or co-insurance stated in your Medical Benefit Summary for durable medical equipment. SingleSource Self-Insured 44 Injectable drugs and biologicals administered by a physician are covered when medically necessary for diagnosis or treatment of illness or injury. This benefit does not include immunizations (see Preventive Care Services in this section) or drugs or biologicals that can be self-administered or are dispensed to a patient. • This plan covers maxillofacial prosthetic services when prescribed by a physician as necessary to restore and manage head and facial structures. Coverage is provided only when head and facial structures cannot be replaced with living tissue, and are defective because of disease, trauma, or birth and developmental deformities. To be covered, treatment must be necessary to control or eliminate pain or infection or to restore functions such as speech, swallowing, or chewing. . Coverage is limited to the least costly clinically appropriate treatment, as determined by the physician. Cosmetic procedures and procedures to improve on the normal range of functions are not covered. Dentures, prosthetic devices for treatment of TMJ conditions, and artificial larynx are also not covered. • Pediatric dental care is not covered. • The routine costs of care associated with approved clinical trials are covered. Benefits are only provided for routine costs of care associated with approved clinical trials. Expenses for services or supplies that are not considered routine costs of care are not covered. For more information, see 'routine costs of care' in the Definitions section of this Summary Plan Description. A'qualified individual' is someone who is eligible to participate in a qualifying clinical trial. If a participating provider is participating in an approved clinical trial, the qualified individual may be required to participate in the trial through that participating provider if the provider will accept the individual as a participant in the trial. • Sleep studies are covered when ordered by a pulmonologist, neurologist, otolaryngologist, or certified sleep medicine specialist, and when performed at a certified sleep laboratory. • This plan covers medically necessary therapy and services for the treatment of traumatic brain injury. • This plan covers tubal ligation and vasectomy procedures with no waiting period. BENEFIT LIMITATIONS AND EXCLUSIONS Least Costly Setting for Services Covered services must be performed in the least costly setting where they can be provided safely. If a procedure can be done safely in an outpatient setting but is performed in a hospital inpatient setting, this plan will only pay what it would have paid for the procedure on an outpatient basis. If services are performed in an inappropriate setting, your benefits can be reduced by up to 30 percent or $2,500, whichever is less. EXCLUDED SERVICES A Note About Optional Benefits If your Plan Sponsor provides coverage for optional benefits such as prescription drugs, vision services, chiropractic care, or alternative care, you'll find those Member Benefit Summaries in this Summary Plan Description. If your Plan Sponsor provides optional benefits for an exclusion listed below, then the exclusion does not apply to the extent that coverage exists under the optional, benefit. For example, if your Plan Sponsor provides optional chiropractic coverage, than the exclusion for chiropractic care listed below under 'Types of Treatment' does not apply to you. Types of Treatment- This plan does not cover the following: • Acupuncture • Chelation therapy including associated infusions of vitamins and/or minerals, except as medically necessary for the treatment of selected medical conditions and medically significant heavy metal toxicities • Day care or custodial care - Care and related services designed essentially to assist a person in maintaining activities of daily living, e.g. services to assist with walking, getting in/out of bed, bathing, dressing, feeding, preparation of meals, homemaker services, special diets, rest cures, SingleSource Self-Insured 45 day care, and diapers. Custodial care is only covered in conjunction with respite care allowed under this plan's hospice benefit. For related provisions, see 'Hospital and Skilled Nursing Facility Services' and 'Home Health and Hospice Services' in the Covered Expenses section of this Summary Plan Description. • Dental examinations and treatment, which means any services or supplies to prevent, diagnose, or treat diseases of the teeth and supporting tissues or structures, except as specified in Covered Expenses - Preventive Care Services except as specifically provided with a separate PacificSource Dental Plan (See the Dental Benefit Plan section of this Summary Plan Description). • Eye exercises, therapy, and procedures - Orthoptics, vision therapy, and procedures intended to correct refractive errors • Fitness or exercise programs and health or fitness club memberships • Foot care (routine) - Services and supplies for corns and calluses of the feet, conditions of the toenails other than infection, hypertrophy or hyperplasia of the skin of the feet, and other routine foot care, except in the case of patients being treated for diabetes mellitus • Genetic (DNA) testing, except for tests identified as medically necessary for the diagnosis and standard treatment of specific diseases • Homeopathic treatment • Infertility - Services and supplies, surgery, treatment, or prescriptions to prevent, or cure infertility or to induce fertility (including Gamete and/or Zygote Interfallopian Transfer; i.e. GIFT or ZIFT), except for medically necessary medication to preserve fertility during treatment with cytotoxic chemotherapy. For related provisions, see the exclusion for'family planning' in this section. For purposes of this plan, infertility is defined as: o Male: Low sperm counts or the inability to fertilize an egg o Female: The inability to conceive or carry a pregnancy to 12 weeks • Instructional or educational programs, except diabetes self-management programs • Jaw- Services or supplies for developmental or degenerative abnormalities of the jaw, malocclusion, dental implants, or improving placement of dentures. • Massage, massage therapy, or neuromuscular re-education, even as part of a physical therapy program • Motion analysis, including videotaping and 3-D kinematics, dynamic surface and fine wire electromyography, and physician review • Myeloablative high dose chemotherapy, except when the related transplant is specifically covered under the transplantation provisions of this plan. For related provisions, see 'Transplant Services' in the Covered Expenses section of this Summary Plan Description. • Naturopathic treatment • Obesity or weight control - Surgery or other related services or supplies provided for weight control or obesity (including all categories of obesity) except as listed under 'Preventive Care Services', whether or not there are other medical conditions related to or caused by obesity. This also includes services or supplies used for weight loss, such as food supplementation programs and behavior modification programs, regardless of the medical conditions that may be caused or exacerbated by excess weight, and self-help or training programs for weight control. Obesity screening and counseling are covered for children and adults; see the 'dietary or nutritional counseling' section under'Other Covered Services'. • Oral/facial motor therapy for strengthening and coordination of speech-producing musculature and structures • Osteopathic manipulation, except for treatment of disorders of the musculoskeletal system • Physical or eye examinations required for administrative purposes such as participation in athletics, admission to school, or by a Plan Sponsor • Private nursing service • Programs that teach a person to use medical equipment, care for family members, or self administer drugs or nutrition (except for diabetic education benefit) SingleSource Self-Insured 46 • Rehabilitation - Functional capacity evaluations, work hardening programs, vocational rehabilitation, community reintegration services, and driving evaluations and training programs • Routine services and supplies - Services, supplies, and equipment not involved in diagnosis or treatment but provided primarily for the comfort, convenience, cosmetic purpose, environmental control, or education of a patient or for the processing of records or claims. These include but are not limited to: o Missed appointments, completion of claim forms, or reports requested by PacificSource in order to process claims o Appliances, such as air conditioners, humidifiers, air filters, whirlpools, hot tubs, heat lamps, or tanning lights o Private nursing services or personal items such as telephones, televisions, and guest meals in a hospital or skilled nursing facility o Maintenance supplies and equipment not unique to medical care • Screening tests - Services and supplies, including imaging and screening exams performed for the sole purpose of screening and not associated with specific diagnoses and/or signs and symptoms of disease or of abnormalities on prior testing (including but not limited to total body CT imaging, CT colonography and bone density testing).This does not include preventive care screenings listed under'Preventive Care Services' in the Covered Expenses section of this Summary Plan Description. • Self-help or training programs • Sexual disorders - Services or supplies for the treatment of sexual dysfunction or inadequacy unless medically necessary to treat a mental health issue and diagnosis. For related provisions, see the exclusions for 'family planning', 'infertility', and 'mental illness' in this section. • Snoring - Services or supplies for the diagnosis or treatment of snoring or upper airway resistance disorders, including somnoplasty • Speech therapy - Oral/facial motor therapy for strengthening and coordination of speech-producing muscles and structures, except as medically necessary in the restoration or improvement of speech following a traumatic brain injury or for a child 17 years of age or younger diagnosed with a pervasive developmental disorder. • Temporomandibular joint (TMJ)-related services, or treatment for associated myofascial pain, including physical or oromyofacial therapy Surgeries and Procedures - This plan does not cover the following: • Abdominoplasty for any indication • Artificial insemination, in vitro fertilization, or GIFT procedures • Cosmetic/reconstructive services and supplies - Except as specified in the Covered Expenses - Other Covered Services, Supplies, and Treatments section of this Summary Plan Description, services and supplies, including drugs, rendered primarily for cosmetic/reconstructive purposes and any complications as a result of non-covered cosmetic/reconstructive surgery. Cosmetic/reconstructive services and supplies are those performed primarily to improve the body's appearance and not primarily to restore impaired function of the body, regardless of whether the area to be treated is normal or abnormal. • Electronic Beam Tomography (EBT) • Eye refraction procedures, orthoptics, vision therapy, or other services to correct refractive error except as indicated in the Covered Services section of this Summary Plan Description • Jaw surgery - Treatment for abnormalities of the jaw, malocclusion, or improving the placement of dentures and dental implants • Orthognathic surgery - Services and supplies to augment or reduce the upper or lower jaw, except as specified under 'Professional Services' in the Covered Expenses section of this Summary Plan Description. • Panniculectomy for any indication • Sex reassignment - Procedures, services or supplies related to a sex reassignment unless SingleSource Self-Insured 47 medically necessary. For related provisions, see exclusions for'mental illness' in this section. o . Excluded procedures.include, but are not limited to: staged gender reassignment surgery, including breast augmentation; penile implantation; liposuction, thyroid chondroplasty, laryngoplasty, or shortening of the vocal cords, and/or hair removal specifically to assist the appearance of other characteristics of gender reassignment. • Surgery to reverse voluntary sterilization • Transplants - Any services, treatments, or supplies for the transplantation of bone marrow or peripheral blood stem cells or any human body organ or tissue, except as expressly provided under the provisions of this plan for covered transplantation expenses. For related provisions see 'Transplant Services' in the Covered Expenses section of this Summary Plan Description. Mental Health Services- This plan does not cover the fallowing services, whether provided by a mental health or chemical dependency specialist or by any other provider: Treatment for the following diagnosis: • Diagnostic codes V 15.81 through V71.09 (DSM-IV-TR, Forth Edition) except V61.20, V61.21, and V62.82 when used with children five years of age or younger • Food dependencies • Gender Identity Disorders in Adults (GID) • Learning disorders • Mental illness does not include - Treatment of intellectual disabilities and relationship problems (e.g. parent-child, partner, sibling, or other relationship issues), except the treatment of children five years of age or younger for parent-child relational problems, physical abuse of a child, sexual abuse of a child, neglect of a child, or bereavement. This plan does not cover educational or correctional services or sheltered living provided by a school or halfway house, except outpatient services received while temporarily living in a shelter; psychoanalysis or psychotherapy received as part of an educational or training program, regardless of diagnosis or symptoms that may be present; a court-ordered sex offender treatment program; a court-ordered screening interview or drug or alcohol treatment program. The following treatment types are also excluded, regardless of diagnosis: marital/partner counseling; support groups; sensory integration training; biofeedback except to treat migraine headaches or urinary incontinence; hypnotherapy; academic skills training; narcosynthesis; aversion therapy; and social skill training. Recreation therapy is only covered as part of an inpatient or residential admission. The following are also excluded: court-mandated diversion and/or chemical dependency education classes; court-mandated psychological evaluations for child custody determinations; voluntary mutual support groups such as Alcoholics Anonymous; adolescent wilderness treatment programs; mental examinations for the purpose of adjudication of legal rights; psychological testing and evaluations not provided as an adjunct to treatment or diagnosis of a stress management, parenting skills, or family education; assertiveness training, image therapy; sensory movement group therapy; marathon'group therapy; sensitivity training; and psychological evaluation for sexual dysfunction or inadequacy. • Mental retardation • Nicotine related disorders • Paraphilias Treatment programs, training, or therapy as follows: • Academic skills training • Aversion therapy • Biofeedback (other than as specifically noted under the Covered Expenses - Other covered Services, Supplies, and Treatment section) • Court-ordered sex offender treatment programs • Court-ordered screening interviews or drug or alcohol treatment programs SingleSource Self-Insured 48 • Educational or correctional services or sheltered living provided by a school or halfway house • Equine/animal therapy • Hypnotherapy • Narcosynthesis • Psychoanalysis or psychotherapy received as part of an educational or training program, regardless of diagnosis or symptoms that may be present • Marital/partner counseling • Recreation therapy outside a inpatient or residential treatment setting • Sensory integration training • Social skill training • Support groups Drugs and Medications - This plan does not cover the following: • Drugs and biologicals that can be self administered (including injectibles), other than those provided in a hospital emergency room, or other institutional setting, or as outpatient chemotherapy and dialysis, which are covered • Growth hormone injections or treatments, except to treat documented growth hormone deficiencies • Immunizations when recommended for or in anticipation of exposure through travel or work • Over-the-counter medications or non-prescription drugs Equipment and Devices - This plan does not cover the following: • Computer or electronic equipment for monitoring asthmatic, diabetic, or similar medical conditions or related data • Equipment commonly used for nonmedical purposes - This plan does.not cover the following: o Equipment commonly used for nonmedical purposes, or marketed to the general public, or intended to alter the physical environment. This includes, appliances like adjustable power beds sold as furniture, air conditioners, air purifiers, room humidifiers, heating and cooling pads, home blood pressure monitoring equipment, light boxes, conveyances other than conventional wheelchairs, whirlpool baths, spas, saunas, heat lamps, tanning lights, and pillows. It also includes orthopedic shoes and shoe modifications. Mattresses and mattress pads are only covered when medically necessary to heal pressure sores. Equipment used primarily in athletic or recreational activities. This includes exercise equipment for stretching, conditioning, strengthening, or relief of musculoskeletal problems • Modifications to vehicles or structures to prevent, treat, or accommodate a medical'condition • Personal items such as telephones, televisions, and guest meals during a stay at a,hospital or other inpatient facility • Replacement costs for worn or damaged durable medical equipment that would otherwise be replaceable without charges under warranty or other agreement . Experimental or Investigational Treatment Your Plan Sponsors plan does not cover experimental or investigational treatment. By that, PacificSource means services, supplies, protocols, procedures, devices, chemotherapy, drugs or medicines or the use thereof that are experimental or investigational for the diagnosis and treatment of the patient. It includes treatment that, when and for the purpose rendered: . • Has not yet received full U.S. government agency approval (e.g. FDA) for other than experimental, investigational, or clinical testing; • Is not of generally accepted medical practice in Oregon or as determined by PacificSource in consultation with medical advisors, medical associations, and/or technology resources; • Is not approved for reimbursement by the Centers for Medicare and Medicaid Services; SingleSource Self-Insured 49 • Is furnished in connection with medical or other research, or • Is considered by any governmental agency or subdivision to be experimental or investigational, not reasonable and necessary, or any similar finding. An experimental or investigational service is not made eligible for benefits by the fact that other treatment is considered by your healthcare provider to be ineffective or not as effective as the service or that the service is prescribed as the most likely to prolong life. When making benefit determinations about whether treatments are investigational or experimental, PacificSource relies on the above resources as well as: • Expert opinions of specialists and other medical authorities; • Published articles in peer-reviewed medical literature; • External agencies whose role is the evaluation of new technologies and drugs; and • External review by an independent review organization. The following will be considered in making the determination whether the service is in an experimental and/or investigational status: • Whether there is sufficient evidence to permit conclusions concerning the effect of the services on health outcomes; • Whether the scientific evidence demonstrates that the services improve health outcomes as much or more than established alternatives; • Whether the scientific evidence demonstrates that the services' beneficial effects outweigh any harmful effects; and • Whether any improved health outcomes from the services are attainable outside an investigational setting. If you or your provider have any concerns about whether a course of treatment will be covered, PacificSource encourages you to contact PacificSource's Customer Service Department. PacificSource will arrange for medical review of your case against PacificSource's criteria, and notify you of whether the proposed treatment will be covered. Other Items - This plan does not cover the following: • Treatment not medically necessary - Services or supplies that are not medically necessary for the diagnosis or treatment of an illness, injury, or disease. For related provisions, see 'medically necessary' in the Definitions section and 'Understanding Medical Necessity' in the Covered Expenses section of this Summary Plan Description. • Treatment prior to enrollment - Services or supplies a member received prior to enrolling in coverage provided by this plan; charges for inpatient stays that begin before you were covered by this plan; services or supplies received before this plan's coverage began; admission prior to coverage; services and supplies for an admission to a hospital, skilled nursing facility or specialized facility that began before the patient's coverage under this plan • Treatment after coverage ends - Services or supplies received after enrollment in this policy ends. (The only exception is if this policy is replaced by another group health policy while you are hospitalized. The plan will continue paying covered hospital expenses until you are released or your benefits are exhausted, whichever occurs first.) • Care and related services designed essentially to assist a person in maintaining activities of daily living, e.g. services to assist with walking, getting in/out of bed, bathing, dressing, feeding, and preparation of meals, homemaker services, special diets, rest crew, day care, and diapers. Custodial care is only covered in conjunction with respite care allowed under this policy's hospice benefit (see Covered Expenses - Hospital, Skilled Nursing Facility, Home Health, and Hospice Services). • Services or supplies available to you from another source, including those available through a government agency • Services or supplies for which no charge is made, for which the member is not legally required to pay, or for which a provider or facility is not licensed to provide even though the service or supply SingleSource Self-Insured 50 may otherwise be eligible. This exclusion includes services provided by the member, or by an immediate family member. • Services or supplies for which you are not willing to release the medical or eligibility information PacificSource needs to determine the benefits paid under this plan • Charges that are the responsibility of a third party who may have caused the illness, injury, or disease or other insurers covering the incident (such as workers' compensation insurers, automobile insurers, and general liability insurers) • Charges over the usual, customary, and reasonable fee (UCR) - Any amount in excess of the UCR for a given service or supply, except alternative care. • Treatment of any illness, injury, or disease resulting from an illegal occupation or attempted felony, or treatment received while in the custody of any law enforcement authority • Treatment of any condition caused by a war, armed invasion, or act of aggression, or while serving in the armed forces • Treatment of any work-related illness or injury, unless you are the owner, partner, or principal of the Plan Sponsor, injured in the course of employment of the Plan Sponsor, and are otherwise exempt from, and not covered by, state or federal workers' compensation insurance. This includes illness or injury caused by any for-profit activity, whether through employment or self-employment. • Treatment while incarcerated - Services or supplies a member receives while in the custody of any state or federal law enforcement authorities or while in jail or prison • Charges for phone consultations, missed appointments, get acquainted visits, completion of claim forms, or reports PacificSource needs to process claims • Any amounts in excess of the allowable fee for a given service or supply • Training or self-help programs - General fitness exercise programs, and programs that teach a person how to use durable medical equipment or care for a family member. Also excluded are health or fitness club services or memberships and instruction programs, including but not limited to those to learn to self-administer drugs or nutrition, except as specifically provided for in this plan. • Services of providers who are not eligible for reimbursement under this plan. An individual organization, facility, or program is not eligible for reimbursement for services or supplies, regardless of whether this plan includes benefits for such services or supplies, unless the individual, organization, facility, or program is licensed by the state in which services are provided as an independent practitioner, hospital, ambulatory surgical center, skilled nursing facility, durable medical equipment supplier, or mental and/or chemical healthcare facility. And to the extent PacificSource maintains credentialing requirements the practitioner or facility must satisfy those requirements in order to be considered an eligible provider. • Scheduled and/or non-emergent medical care outside of the United States. • Services otherwise available - These include but are not limited to o Services or supplies for which payment could be obtained in whole or in part if the member applied for payment under any city, county, state (except Medicaid), or federal law; and o Services or supplies the member could have received in a hospital or program operated by a federal government agency or authority, except otherwise covered expenses for services or supplies furnished to a member by the Veterans' Administration of the United States that are not military service-related. This exclusion does not apply to covered services provided through Medicaid or by any hospital owned or operated by the State of Oregon or any state-approved community mental health and developmental disability program. • Benefits not stated - Services and supplies not specifically described as benefits under the group health policy and/or any endorsement attached hereto SingleSource Self-Insured 51 EXCLUSION PERIODS Exclusion Period for Transplant BeneTts Except for corneal transplants, organ and tissue transplants are not covered until you have been enrolled in this plan for 24 months or since birth. If you were covered under another health insurance plan before enrolling in this plan, you can receive credit for your prior coverage. See the Credit for Prior Coverage section, below. CREDIT FOR PRIOR COVERAGE You can receive credit toward this plan's exclusion periods if you had qualifying healthcare coverage before enrolling in this plan. To qualify for this credit, there may not have been more than a 63-day gap between your last day of coverage under the previous health plan and your first day of coverage (or the first day of your Plan Sponsor's probationary waiting period) under this plan. Your prior coverage must have been a group health plan, COBRA or state continuation coverage, individual health policy (including student plans), Medicare, Medicaid, TRICARE, State Children's Health Insurance Program, and coverage through high risk pools and the Peace Corps. If you were covered as a dependent under a plan that meets these qualifications, you will qualify for credit. Many people elect the COBRA or state continuation coverage available under a prior plan to make sure they won't have more than a 63-day gap in coverage. It is your responsibility to show you had creditable coverage. If you qualify for credit, PacificSource will count every day of coverage under your prior plan toward this plan's exclusion periods for pre- existing conditions, other specified conditions, and transplants (explained above). Evidence of Prior Creditable Coverage You can show evidence of creditable coverage by sending PacificSource a Certificate of Creditable Coverage from your previous health plan. All health plans, insurance companies, and HMOs are required by law to provide these certificates on request. Most insurers issue these certificates automatically whenever someone's coverage ends. The certificate shows how long you were covered under your previous plan and when your coverage ended. If you do not have a certificate of prior coverage, contact your previous insurance company or Plan Sponsor (such as your former employer, if you had a group health plan). You have the right to request a certificate from any prior plan, insurer, HMO, or other entity through which you had creditable coverage. If you are unable to obtain a certificate, contact PacificSource's Membership Services Department for assistance. HEALTH CARE MANAGEMENT AND PREAUTHORIZATION What is Health Care Management Your Plan Sponsordesires to provide you and your family with a heath care benefit plan that financially protects you from significant health care expenses and assures you quality care. While part of increasing health care costs results from new technology and important medical advances, another significant cause is the way health care services are used. Some studies indicate that a high percentage of the cost for health care services may be unnecessary. For example, hospital stays may be longer than necessary. Some hospitalizations may be entirely avoidable, such as when surgery could be performed at an outpatient facility with equal quality and safety. Also, surgery is sometimes performed when other treatment could be more effective. All of these instances increase costs for you and the plan. Your Plan Sponsor has contracted with PacificSource to assist you in determining whether or not proposed services are appropriate for reimbursement under this plan. The program is not intended to diagnose or treat medical conditions, dictate a treatment plan, guarantee benefits, or validate eligibility. The medical professionals who conduct the program focus their review on the appropriateness for reimbursement of hospital stays and proposed surgical procedures. SingleSource Self-Insured 52 Required Admission Review - You are required to call PacificSource's toll-free number, (888) 977- 9299, prior to any elective inpatient stay or any scheduled surgical procedure. In most cases, your medical provider will make the call for you. You must also call within 48 hours of any emergency admission. When you or your provider call, it will be necessary to provide the program with your name, the patient's name, the name of the physician or practitioner and hospital, the reason for the hospitalization and any other information needed to complete the review. In some cases, you may be asked for more information or a second opinion may be required to complete the review. Preauthorization - Preauthorization is necessary to determine if certain services and supplies are covered under this plan and if you meet the plan's eligibility requirements. PacificSource reviews new technologies and standards of medical practice on an ongoing basis and therefore the list of preauthorization requirements is subject to changes and updates. The current list of procedures and services that require preauthorization under the plan can be found the PacificSource' website: PacificSource.com. The list of services that require preauthorization is not intended to suggest that all the items included are necessarily covered by the benefits of this plan. A request for preauthorization must be made to PacificSource as soon as the patient knows that he or she will be receiving services for which preauthorization is required. Your medical provider can request preauthorization from PacificSource by phone - (888) 977-9299, fax - (541) 684-5264, or mail: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extensi6n 1009 cs@ pacificsou rce. com If your provider will not request preauthorization for you, you may contact PacificSource yourself. In some cases, you may be asked for more information or be required to obtain a second opinion before a benefit determination can be made. If you are preauthorized for one facility, but are then transferred to another facility you will need to obtain preauthorization for the new facility before transferring, except in the case of emergencies in which case notification must be made as soon as possible after transferring facilities. If your provider's preauthorization request is denied as not medically necessary or as experimental, your provider may appeal the adverse benefit determination. You retain the right to appeal the adverse benefit determination independent from your provider. Note: A preauthorization determination is valid for 90 days. However, if your coverage under the plan ends before the services are rendered or supplies received, the preauthorization determination will become invalid. Case Management The primary objective of large case management is to identify and coordinate cost-effective medical care alternatives and to help manage the care of patients who have special or extended care illnesses or injuries. Large case management also monitors the care of the patient, offers emotional support to the family, and coordinates communications among health care providers, patients and others. Benefits may be modified by the Plan Sponsor to permit a method of treatment not expressly provided for, but not prohibited by law, rules or public policy, if the Plan Sponsor determines that such modification is medically necessary and is more cost-effective than continuing a benefit to which you or your eligible dependents may otherwise be entitled. The Plan Sponsor also reserves the right to limit payment for services to those amounts which would have been charged had the service been provided in the most cost-effective setting in which the service could safely have been provided. Examples of illnesses or injuries that may be appropriate for large case management include, but are not limited to: • Terminal illnesses (Cancer, AIDS, Multiple Sclerosis, Renal Failure, Obstructive Pulmonary Disease, Cardiac conditions, etc.) SingleSource Self-Insured 53 Accident victims requiring long-term rehabilitative care Newborns with high-risk complications or multiple birth defects • Diagnoses involving long-term IV therapy • Illnesses not responding to medical care • Child and adolescent mental/nervous disorders • Organ transplants Individual Benefits Management Individual benefits management addresses, as an alternative to providing covered services, PacificSource's consideration of economically justified alternative benefits. The decision to allow alternative benefits will be made by on a case-by-case basis. The determination to cover and pay for alternative benefits for an individual shall not be deemed to waive, alter or affect the Plan Sponsor's or PacificSource's right to reject any other or subsequent request or recommendation. The Plan Sponsor may provide alternative benefits if PacificSource and the individual's attending provider concur in the request for and in the advisability of alternative benefits in lieu of specified covered services, and, in addition, PacificSource concludes that substantial future expenditures for covered services for the individual could be significantly diminished by providing such alternative benefits under the individual benefit management program (See Case Management above). HOW TO USE YOUR DENTAL PLAN When you need dental care, you may visit any dentist. Most dental offices will bill PacificSource directly. If your dentist has any questions regarding billing procedures, he or she can call PacificSource at (541) 225-1981, or (866) 373-7053 from outside the Eugene-Springfield area. When you first visit your dentist after becoming covered under this plan, let the office staff know you have dental benefits through PacificSource. You will need to show your PacificSource ID card, which contains your group number and benefit information. Your dentist may submit claims and treatment programs on a standard American Dental Association form. For extensive dental work, PacificSource recommends that your dentist submit a pre-treatment estimate to PacificSource. PacificSource then determines how much your plan will pay toward the proposed treatment and review the estimate with your dentist prior to treatment. If your covered family members require extensive dental work, be sure your member ID number and group number are included on their pre-treatment form for identification purposes. DENTAL PLAN BENEFITS When this plan pays for dental services, it actually pays the stated percentage of charges based on reasonable and customary charges. A charge is reasonable and customary when it falls within a general range of charges being made by most dental providers in your service area for similar treatment of similar dental conditions. If the charge for a treatment or service is more than the reasonable and customary charge in your service area, you may be required to pay the difference. The reasonable and customary charge for dental expense is the 'covered charge' referred to in this booklet. If you or your covered family member selects a more expensive treatment than is customarily provided, this plan will pay the applicable percentage of the lesser fee. You will be responsible for the balance of the provider's charges. With the Advantage Network, participating dentists agree to write off any charges over and above the negotiated, contracted fees for most services. When you use a participating dentist in the Advantage Network, you will not be responsible for any excess charges and will pay only your plan's deductible and/or co-insurance amount. If you choose not to use a participating Advantage Network dentist, or don't have access to them, reimbursement will continue to be based on usual, customary, and reasonable (UCR) charges. If that non-participating dentist's fees exceed the UCR charges, the excess charges are also your responsibility SingleSource Self-Insured 54 COVERED DENTAL SERVICES This dental plan covers the following services when performed by an eligible provider and when determined to be necessary by the standards of generally accepted dental practice for the prevention or treatment of oral disease or for accidental injury, including masticatory function. Covered services may also be provided by a dental hygienist or denturist to the extent that he or she is operating within the scope of his or her license as required under law in the State of Oregon. Covered dental services are organized into three classes, starting with preventive care and advancing into specialized dental procedures. Class I Services - Diagnostic and Preventive Treatment • Examinations (routine or other diagnostic exams) are covered. Separate charges for review of a proposed treatment plan or for diagnostic aids such as study models and certain lab tests are not covered. • Full mouth x-rays and/or panorex are covered up to one complete mouth series and/or panorex in any three-year period and limited to four bite-wing films in a six-month period. When an accumulative charge for additional periapical x-rays in a one-year period matches that of a complete mouth series, no further benefits for periapical x-rays or panorex are available for the remainder of the year. • Dental cleanings (prophylaxis and periodontal maintenance) are covered to a combined total of three procedures per person per benefit year. The limitation for dental cleaning applies to any combination of prophylaxis and/or periodontal maintenance in the benefit year. A separate charge for periodontal charting is not a covered benefit. Periodontal maintenance is not covered when performed within three months of periodontal scaling and root planing and/or curettage. • Topical applications of fluoride are covered to two applications per benefit year through age 22. • Fluoride varnish applications are covered to 12 applications per benefit year for children age 12 and under if the child is deemed at risk for dental infection. • The application of sealants is covered to one application in a five-year period to permanent molars and bicuspids and only for individuals through age 17. • Vizilite is a covered up to two screenings per benefit year. • Benefits for athletic mouth guards are limited to one per lifetime through age 17 if the member is still in secondary school. • Benefits for brush biopsies used to aid in the diagnosis of oral cancer are covered. Class ll Restorative Services - Basic and Restorative Treatment • Composite, resin, or similar restoration in a posterior (back) tooth is covered to the amount that would be paid for a corresponding amalgam restoration. A separate charge for anesthesia when used during restorative procedures is not a covered benefit. Only one filling is allowed per tooth surface. The Plan Sponsorwill pay for a filling on a tooth surface only once per benefit year. Three or more surface fillings are limited to one per surface per benefit year. • Simple and surgical extractions of teeth and other minor oral surgery procedures are covered. General anesthesia used in conjunction with these extractions administered by a dentist in a dental office is also covered. A separate charge for alveolectomy performed in conjunction with removal of teeth is not a covered benefit. • Periodontal scaling and root planing and/or curettage is covered but limited to only one procedure per quadrant in any 24-month period. For the purpose of this limitation, eight or fewer teeth existing in one arch will be considered one quadrant. • Benefits for full mouth debridement are limited to once every 24 months. This procedure is only covered if the teeth have not received a prophylaxis in the prior 24 months and if an evaluation cannot be performed due to the obstruction by plaque and calculus on the teeth. This procedure is not covered if performed on the same date as the prophylaxis. Class ll Complicated Services - Complicated Treatment • Complicated oral surgical procedures such as removal of impacted teeth are covered when SingleSource Self-Insured 55 preauthorized by PacificSource. Benefits for complicated oral surgical procedures include general anesthesia administered by a dentist in a dental office. A separate charge for alveolectomy performed in conjunction with removal of teeth is not a covered benefit. • Pulp capping is covered only when there is an exposure to the pulp. These are direct pulp caps. Indirect pulp caps are not covered. • Pulpotomy is covered only for deciduous teeth. • Root canal therapy is covered on the same tooth only for one charge in a three-year period. • Periodontal surgery is covered when the procedure is preauthorized by PacificSource and accompanied by a periodontal diagnosis and history of conservative (non-surgical) periodontal treatment. • Tooth desensitization is covered as a separate procedure from other dental treatment. • Space maintainers are a covered benefit for individuals through the age of 13. Class Services - Major Treatment • Crowns and other cast or laboratory-processed restorations are covered but limited to the restoration of any one tooth in a five-year period. If a tooth can be restored with a material such as amalgam or composite resin, covered charges are limited to the cost of amalgam or non-laboratory composite resin restoration even if another type of restoration is selected by the patient and/or dentist. • Replacement of an existing prosthetic device is covered only when the device being replaced is unserviceable, cannot be made serviceable, and has been in place for at least five years. • Cast partial denture, full, immediate, or overdenture are covered only to the cost of a standard full or cast partial denture. A separate charge for denture adjustments and relines performed within six months of the initial placement is not a covered benefit. Benefits for subsequent relines are provided only once in a 12-month period. Cast restorations for partial denture abutment teeth or for splinting purposes are not covered unless the tooth in and of itself requires a cast restoration. • Fixed bridges or removable cast partials are covered. Benefits for temporary full or partial dentures must be preauthorized. Benefits for the initial placement of full or partial dentures or fixed bridges (including acid-etch metal bridges) are provided only if the denture or bridgework includes replacement of a natural tooth which is extracted or lost while the member's coverage is in effect. However, this limitation does not apply after the member has been covered under the policyholder's group dental plan for a period of at least 36 consecutive months. • Benefits for the surgical placement and removal of implants are limited to once per lifetime per tooth space for each service. Services must be preauthorized by PacificSource to be covered. Benefits include final crown and implant abutment over a single implant and final implant-supported bridge abutment and implant abutment or pontic. An alternative benefit per arch of a conventional full or partial denture for the final implant-supported full or partial denture prosthetic device is available. • Bruxism splint and nightguard (appliances to reduce or prevent pain or damage from grinding of teeth) are covered. ORTHODONTIA BENEFITS This plan pays 50% of the usual, customary, and reasonable for orthodontics for all covered individuals. The lifetime maximum amount payable for orthodontic benefits is $1,000 per person. EXCLUDED DENTAL SERVICES This plan does not provide benefits in any of the following circumstances or for any of the following conditions: • Aesthetic dental procedures - Services and supplies provided in connection with dental procedures that are primarily aesthetic, including bleaching of teeth and labial veneers. • Antimicrobial agents - Localized delivery of antimicrobial agents into diseased crevicular tissue via a controlled release vehicle. SingleSource Self-Insured 56 • Benefits not stated - Any services and supplies not specifically described as covered benefits under this plan • Biopsies or histopathologic exams -A separate charge for a biopsy of oral tissue or histopathologic exam. • Bone replacement grafts to prepare sockets for implants after tooth extraction. • Charges for broken appointments • Collection of cultures and specimens. • Connector bar or stress breaker. • Core build-ups are not covered unless used to restore a tooth that has been treated endodontically (root canal). • Cosmetic/reconstructive services and supplies - Procedures, appliances, restorations, or other services that are primarily for cosmetic purposes. This includes services or supplies rendered primarily to correct congenital or developmental malformations, including but not limited to, peg laterals, cleft palate, maxillary and mandibular (upper and lower jaw) malformation, enamel hypoplasia, and fluorosis (discoloration of teeth). However, the replacement of congenitally missing teeth is covered. • Denture replacement made by necessary by loss, theft, or breakage. • Diagnostic casts - Diagnostic casts (study models), gnathological recordings, occlusal appliances, occlusal equilibration procedures, or similar procedures. • Drugs and medications that are prescribed drugs, premedication drugs, analgesics (e.g., nitrous oxide or non-intravenous sedation), any other euphoric drugs, or any take-home medicine or supplies distributed by a provider. • Educational programs - Instructions and/or training in plaque control and oral hygiene. • Experimental or investigational procedures - Services, supplies, protocols, procedures, devices, drugs or medicines, or the use thereof that are experimental or investigational for the diagnosis and treatment of the patient. An experimental or investigational service is not made eligible for benefits by the fact that other treatment is considered by the member's dental care provider to be ineffective or not as effective as the service or that the service is prescribed as the most likely to prolong life. • Fractures of the mandible - Services and supplies provided in connection with the treatment of simple or compound fractures of the mandible. • General anesthesia except when administered by a dentist in connection with oral surgery in his/her office • Gingivetomcy, gingivoplasty or crown lengthening in conjunction with crown preparation or fixed bridge services done on the same date of service. • Hospital charges or additional fees charged by the dentist for hospital treatment • Hypnosis • infection control - A separate charge for infection control or sterilization • Intra and extra coronal splinting - Devices and procedures for intra and extra coronal splinting to stabilize mobile teeth. • Oral Surgery treating any fractured jaw • Orthodontic services - Treatment of malalignment of teeth and/or jaws, or any ancillary services expressly performed because of orthodontic treatment, unless your Dental Benefit Summary shows orthodontic services as a covered benefit. • Orthognathic surgery - Surgery to manipulate facial bones, including the jaw, in patients with facial bone abnormalities performed to restore the proper anatomic and functional relationship to the facial bones • Periodontal probing, charting, and re-evaluations • Photographic images. SingleSource Self-Insured 57 • Pin retention in addition to restoration. • Precision attachments • Pulpotomies on permanent teeth • Removal of clinically serviceable amalgam restorations to be replaced by other materials free of mercury, except with proof of allergy to mercury. • Services covered by the member's medical plan. • Services for rebuilding or maintaining chewing surfaces due to teeth out of alignment or occlusion, or for stabilizing the teeth. • Services otherwise available - These include but are not limited to: - Services or supplies for which payment could be obtained in whole or in part if the member applied for payment under any city, county, state, or federal law (except Medicaid); and - Services or supplies the member could have received in a hospital or program operated by a federal government agency or authority. Covered expenses for services or supplies furnished to a member by the Veterans' Administration of the United States that are not service-related are eligible for payment according to the terms of this policy. - Services or supplies for which payment would be made by Medicare. • Services or supplies for which no charge is made which you are not legally required to pay or which a provider or facility is not licensed to provide even though the service or supply may otherwise be eligible. This includes services provided by you or an immediate family member. • Sinus lift grafts to prepare sinus site for implants. Temporomandibular joint (TMJ) - Any services or supplies for treatment of any disturbance of the Temporomandibular joint. Third party liability, motor vehicle liability, motor vehicle insurance coverage, workers' compensation - Any services or supplies for illness or injury for which a third party is responsible or which are payable by such third party or which are payable pursuant to applicable workers' compensation laws;. motor vehicle liability, uninsured motorist, underinsured motorist, and personal injury protection insurance and any other liability and voluntary medical or dental payment insurance to the extent of any recovery received from or on behalf of such sources. • Tooth transplantation - Services and supplies provided in connection with tooth transplantation, including re-implantation from one site to another and splinting and/or stabilization. This exclusion does not relate to the re-implantation of a tooth into its original socket after it has been avulsed. • Treatment after coverage ends - Services or supplies provided after enrollment in this plan ends. The only exception is for Class III Services ordered and fitted before enrollment ends and placed within 31 days after enrollment ends. • Treatment not dentally necessary according to acceptable dental practice or treatment not likely to have a reasonably favorable prognosis. • Treatment prior to enrollment - Dental services begun before you or your family member became eligible for those services under this plan. • Treatment while incarcerated - Services or supplies received while in the custody of any state or federal law enforcement authorities or while in jail or prison. • . Unwilling to release information - Charges for services or supplies for which you are unwilling to release medical or dental-information necessary to determine eligibility for payment under this policy • War-related conditions - The treatment of any condition caused by or arising out of an act of war, armed invasion, or aggression, or while in the service of the armed forces. • . Work-related conditions - Services or supplies for treatment of illness or injury arising out of or in the course of employment or self-employment for wages or profit, whether or not the expense for the service or supply is paid under workers' compensation. SingleSource Self-Insured 58 CLAIMS PROCEDURES Now to File/How to Appeal a Claim These claim procedures describe how benefit claims and appeals are made and decided under this plan. Only members or a designated authorized representative may submit claims for benefits (for themselves and on behalf of their covered dependents), and benefits will only be paid to the member or the actual provider of services. Under the following claims procedures section, the words 'you' and 'your' will mean a member of the group health plan of the Plan Sponsor. You become a claimant when you make a request for a plan benefit or benefits in accordance with these claims procedures. You and your covered dependents have the right to elect group, health care benefits as offered by the Plan Sponsor, and your and their rights will be determined under the plan's provisions and in conjunction with the claims and appeals procedures outlined later in this section. Claims will also be considered filed by you if communications and requests for benefits come from an individual that you have designated as your authorized representative to act on your behalf with respect to a claim. In the event that you designate an authorized representative to act on your behalf, the plan will send all notifications, requests for further information, appeal decisions, and all other communications to your authorized representative and provide you with a copy of all communications, unless you request otherwise in writing. An authorized representative may act on behalf of a claimant with respect to benefit claim or appeal under these procedures. However, no person (including a treating.health care professional) will be recognized as an authorized representative until the plan receives an Designation of Authorized Representative form signed by the claimant, except that for urgent care' claims the'plan shall, even in the absence of a signed Designation of Authorized Representative form, recognize a health care professional with knowledge of the claimant's medical condition (e.g., the treating physician or practitioner) as the claimant's authorized representative unless the claimant provides specific written direction otherwise. A Designation of Authorized Representative form may be obtained from and completed forms must be returned to: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068' Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extension 1009 cs@pacificsou rce. com An assignment for purposes of payment (e.g., to a health professional) does not constitute appointment of an authorized representative under these claims procedures. However, unless you have directed the plan otherwise, claims submitted on your behalf by a health care professional will be considered a valid claim if submitted pursuant to the guidelines outlined in these claim procedures. Any reference in these claims procedures to the claimant is intended to include the 'authorized representative of such claimant appointed in compliance with the above procedures., . For the purposes of the claims procedures section, any reference to 'days' will refer to calendar days, not business days. Questions about Your Claims PacificSource is available to listen and help with any concerns or problems you may have with resolving a claim. Because PacificSource wants you to be completely satisfied with the member services assistance you receive, a process has been established for addressing your concerns and solving your problems. If you have a concern regarding a person, a service, the quality of care, or you want to inquire about what benefits are covered under the plan, please call PacificSource at (888) 977-9299 and explain your concern to one of their Customer Service Representatives. You may also express that concern in writing. PacificSource will do their best to resolve the matter on your initial contact. If PacificSource needs more time to review or investigate your concern, they will get back to you as soon SingleSource Self-Insured 59 as possible, but in any case within 30 days. They will not consider any of these communications to be a claim' for benefits. A formal claim for benefits must meet certain other standards which are described in greater detail in these procedures. Types of Claims Pre-Service Claims -The plan subjects the receipt of benefits for some services or supplies to a preauthorization review. Although a preauthorization review is generally done on a pre-service basis, it may in some cases be conducted on a post-service basis. Unless a response is needed sooner due to the urgency of the situation, a pre-service preauthorization review will be completed and notification made to you and your medical provider as soon as possible, generally within two working days, but no later than 15 days within receipt of the request. Urgent Care Claims - If the time period for making a non-urgent care determination could seriously jeopardize your life, health or ability to regain maximum function, or would subject you to severe pain that cannot be adequately managed without the care or treatment that is proposed, a preauthorization review will be completed as soon as possible, generally within 24 hours, but no later than 72 hours within receipt of the request. Concurrent Care Review - A concurrent care decision occurs when a previously approved course of treatment is reconsidered and reduced or denied, or where an extension is requested beyond the initially approved period of time or number of treatments. Inpatient hospital or rehabilitative facilities, skilled nursing facilities, intensive outpatient, and residential behavioral health care require concurrent review for a benefit determination with regard to an appropriate length of stay or duration of service. Benefit determinations will be made as soon as possible within receipt of all the information necessary to make such a determination. Post-Service Claims - A claim determination that involves only the potential payment of reimbursement of the cost of medical care that has already been provided will be made as soon as reasonably possible but no later than 30 days from the day after receiving the claim. How to File a Claim Most health care providers will file claims on your behalf. Electronically submitted claims are processed most efficiently. If unable to file electronically, you, your health care provider, or an authorized representative must file your claim using HCFA-1500 (revision 12/90 and later), UB92, or ADA (revision 12190 and later) forms, or an itemized statement. These forms are available from your health care provider or PacificSource. A claim will be considered filed when it is received by PacificSource at the address listed below: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espanol (800) 624-6052, extensi6n 1009 cs@pacificsource.com The following information is required in order qualify your request for benefits as a properly submitted claim: • Plan member's name, member ID and current address; • Patient's name, member ID and address if different from the member's; • Provider's name, tax identification number, address, degree and signature; • Date(s) of service(s); • Place of service(s); • Diagnostic Code; • Procedure Codes (describes the treatment or services rendered); • Assignment of Benefits, signed (if payment is to be made to the provider); • Release of Information Statement, signed; and SingleSource Self-Insured 60 Explanation of Benefits (EOB) information if another plan is the primary payer. This plan also recognizes the following actions and submission of forms as claims: • A request by you for benefits through preauthorization in cases where use of preauthorization is required in order to obtain a particular benefit. • Requests by your formally-designated authorized representative for preauthorization in cases where use of preauthorization is required in order to obtain a particular benefit. The plan will take reasonable steps to determine whether an individual claiming to be acting on your behalf is, in fact, validly empowered to do so under the circumstances, and the plan will require that you complete and file a form identifying any person you authorize to act on your behalf with respect to a claim. However, when inquiries by a health care provider relate to payments due to the provider-rather than due to you-under participating provider contracts (where the health care provider has no recourse against you for the amounts) such inquiries by a health care provider will not be considered 'claims' by the plan. • Requests for benefits (in the case of a claim involving urgent care) by a health care provider with knowledge of your medical condition. For urgent care claims, you are not required to complete a form and formally designate a health care provider as your representative with respect to a claim. Claims must be submitted individually for each claimant. Please do not staple claims together. Send completed information to: PacificSource Health Plans PO Box 7068, Springfield OR 97475-0068 Phone (541) 684-5582 or (888) 977-9299 Espahol (800) 624-6052, extensi6n 1009 cs@ pacificsou rce. com If you have any questions regarding your eligibility, benefits or claims information, please call PacificSource at: (888) 977-9299. All claims for benefits must be submitted to the plan within 90 days of the date of service. If it is not possible to submit a claim within 90 days, you should submit the claim as soon as possible. In some cases the plan will accept the late claim. The plan, however, will not pay a claim that was submitted more than one year after the date of service. All submitted claims and appeals will fall into one of the categories described previously. The handling of your initial claim or later appeal will be governed, in all respects, by the appropriate category of claim or appeal, and each time your claim or appeal is examined, a new determination will be made regarding the category into which the claim or appeal falls at that particular time. Pre-service claims - Your plan subjects the receipt of benefits for some services or supplies to a preauthorization review. Although a preauthorization review is generally done on a pre-service basis, it may in some case be conducted on a post-service basis. Unless a response is needed sooner due to the urgency of the situation, a pre-service preauthorization review will be completed and notification made to you and your medical provider as soon as possible, generally within two working days, but no later than 15 days within receipt of the request. Urgent care claims - If the time period for making a non-urgent care determination could seriously jeopardize your life, health or ability to regain maximum function, or would subject you to severe pain that cannot be adequately managed without the care or treatment that is proposed, a preauthorization review will be completed as soon as possible, generally within 24 hours, but no later than 72 hours of receipt of the request. Concurrent care review - Inpatient hospital or rehabilitation facilities, skilled nursing facilities, intensive outpatient, and residential behavioral healthcare require concurrent review for a benefit determination with regard to an appropriate length of stay or duration of service. Benefit determinations will be made as soon as possible but no later than one working day after receipt of all the information necessary to make such a determination. Post-service claims -A claim determination that involves only the payment of reimbursement of the cost of medical care that has already been provided will be made as soon as reasonably possible but no later than 30 days from the day after receiving the claim. SingleSource Self-Insured 61 Retrospective review - A claim for benefits for which the service or supply requires a preauthorization review but was not submitted for review on a pre-service basis will be reviewed on a retrospective basis within 30 working days after receipt of the information necessary to make a claim determination. Extension of time - Despite the specified timeframes, nothing prevents the member from voluntarily agreeing to extend the above timeframes. Unless additional information is needed to process your claim, PacificSource will make every effort to meet the timeframes stated above. If a claim cannot be paid within the stated timeframes because additional information is needed, PacificSource will acknowledge receipt of the claim and explain why payment is delayed. If PacificSource does not receive the necessary information within 15 days of the delay notice, PacificSource will either deny the claim or notify you every 45 days while the claim remains under investigation. No extension is permitted for urgent care claims. Extension of time - Unless additional information is needed to process your claim, the plan will make every effort to meet the timeframes stated above. If a claim cannot be paid within the stated timeframes because additional information is needed, PacificSource will acknowledge receipt of the claim and explain why payment is delayed. If they do not receive the necessary information within 15 days of the delay notice, they will either deny the claim or notify you every 45 days while the claim remains under investigation. Adverse benefit determinations - Any denial, reduction or termination of, or failure to provide or make a payment for a benefit based on: • A determination that the member is not eligible to participate in the plan. • A determination that the benefit is not covered by the plan. • The imposing of limits, such as preexisting condition or source-of-injury exclusions. • A determination that the benefit is experimental, investigational or not medically necessary or medically appropriate. An adverse benefit determination made to reduce or deny benefits applied for a pre-service, post- service, or concurrent care basis may be appealed in accordance with the plan's appeals procedures described later in this section. Incomplete Claims If any information needed to process a claim is missing, the claim shall be treated as an incomplete claim. Other Incomplete Claims - If a pre-service or post-service claim is incomplete, the plan may deny the claim or may take an extension of time, as described above. If the plan takes an extension of time, the extension notice shall include a description of the missing information and shall specify a timeframe, no less than 45 days, in which the necessary information must be provided. The timeframe for deciding the claim shall be suspended from the date the extension notice is received by the claimant until the date the missing necessary information is provided to the plan. If the requested information is provided, the plan shall decide the claim within the extension period specified in the extension notice. If the requested information is not provided within the time specified, the claim may be decided without that information. If you fail to follow the plan's filing procedures because your request for benefits does not: 1) identify the patient; 2) note a specific medical condition or symptom; 3) describe a specific treatment, service, or product for which approval is requested; or 4) is not sent to the correct address, you will not have submitted a claim. You will be notified orally, and/or by written notification if requested by the claimant, within 24 hours, that you have failed to follow the filing procedures, and you will be reminded of the proper filing procedures. Notification of Benefit Determination The plan will pay the benefit according to plan provisions. This may mean that less than 100% of your claim is payable by the plan. In each case where the plan pays benefits or determines that it is not responsible for your medical claim, you will receive an Explanation of Benefits which will outline the basis for the plan's payment. If your claim is denied or payable at a level less than outlined in this Summary Plan Description, you are entitled to appeal the decision under the rules governing adverse benefit determination. SingleSource Self-Insured 62 Adverse Benefit Determination Written notification will be provided to you of the plan's adverse benefit determination (as defined in the How To File A Claim section above) and will include the following: Information sufficient to identify the claim involved, including the date of service, the health care provider, and the claim amount (if applicable), as well as how to obtain the diagnosis code, the treatment code, and the corresponding meanings of these codes. • A statement of the specific reason(s) for the decision; Reference(s) to the specific plan provision(s) on which the determination is based, A description of any additional material or information necessary to perfect the claim and why such information is necessary; • A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request; • In the case of an urgent care claim, an explanation of the expedited review methods available for such claims; and • A statement regarding the availability of, and contact information for, any applicable office of health insurance consumer assistance or ombudsman. Notification of the plan's adverse benefit determination on an urgent care claim may be provided orally, but written notification shall be furnished not later than three days after the oral notice. You may call the Third Parry Administrator at (888) 977-9299 to discuss the adverse benefit determination if you have concerns. You may also express those concerns in writing and if needed, may submit additional information that you believe would clarify any of the circumstances that lead to the adverse benefit determination. Third Party Administrator will not consider any of these questions or clarifications to be a formal appeal unless you specifically state it as such. The process for filing a formal appeal is listed below. Your Right to Appeal You have the right to appeal an adverse benefit determination under these claims procedures. If you choose to appeal the plan's adverse benefit determination, your appeal will be governed by rules that assure you a full and fair review. If you are denied benefits based upon the plan's finding that you are/were ineligible for benefits, the denial of benefits gives you the opportunity to appeal the plan's decision. If the plan decides to reduce or terminate benefits for your previously-approved course of treatment, the plan's decision will be treated as an adverse benefit determination, and the plan will provide you reasonable advance notice of the reduction or termination to allow you to appeal the plan's decision before the benefit reduction or termination takes place. If you decide to appeal the plan's decision, you must follow the rules for appealing a plan's decision. No lawsuit can be instituted until the claimant has exhausted the plan's internal and external claims review and appeals procedures. No lawsuit can be instituted more than one year after the date of the notice to the claimant that a claim appeal has been denied. Appealing an Initial Claim Determination - You must submit a written request to the plan within 180 days of receipt of an adverse benefit determination in order to initiate an appeal. An oral request for review is acceptable for urgent care claims and may be made by calling the Third Party Administrator at (888) 977-9299 and asking the plan to register your oral appeal. SingleSource Self-Insured 63 When you appeal an adverse benefit determination, the plan will provide a full and fair review which will include the following features: You will have the opportunity to submit written comments, documents, records, and other information related to the claim. • At your request (and free of charge), you will be provided with reasonable access to (and copies of) all documents, records, and other information relevant to your claim for benefits. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse benefit determination. You also have the right to review documentation showing that the plan followed its own internal processes for ensuring appropriate decision making. • The review of your claim will take into account all comments, documents and other information without regard to whether such information was submitted or considered in the initial benefit determination. • Any appeal of an adverse benefit determination will not give deference to the initial decision on your claim, and the review will be conducted by a designated plan representative who did not make the original determination and does not report to the plan representative who made the original determination. • In deciding an appeal of any adverse benefit determination that is based on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or medically appropriate), the designated plan representative will consult with a health care professional who has appropriate training and experience in the particular field of medicine involved in the medical judgment. This health care professional will not be the same professional who was originally consulted in connection with the adverse determination; neither will this health care professional report to the health care professional who was consulted in connection with the adverse determination. The plan will uphold the findings of the independent review in responding to the appeal. • The plan will identify medical or vocational experts whose advice'was obtained on behalf of the plan in connection with an adverse benefit determination of your claim, whether or not that advice was relied upon in making the benefit determination. You must first follow this appeal process before taking any outside legal action. After you submit the claim for appeal, the plan will make a decision on your appeal as follows: Appeal of Urgent Care Claims - The plan's expedited appeal process for urgent care claims will allow you to request (orally or in writing) an expedited appeal, after which, all necessary information, including the plan's benefit determination on review, will be transmitted between the plan and you by telephone, fax, or other expeditious method. You will be notified (in writing or electronically) of the benefit determination as soon as possible, but not later than 72 hours after the plan receives the request for review of the prior benefit determination. For urgent care claims you may also be able to request an independent external review take place at the same time as you pursue the plan's internal appeal process. Appeal of Non-Urgent Pre-Service Claims - For non-urgent pre-service claims, you will be notified (in writing or electronically) of the benefit determination within a reasonable period of time appropriate to the medical circumstances, but not later than 30 days. Appeal of Concurrent Care Claims - For concurrent care claims, you will be notified (in writing or electronically) of the benefit determination with reasonable advance notice before the benefit reduction or termination takes place. Appeal of Post-Service Claims - For post-service claims, you will be notified (in writing or electronically) of the benefit determination within a reasonable period of time, but not later than 60 days. Denial of Claim on Appeal - If your appealed claim is denied, the plan will send you written or electronic notification that explains why your appealed claim was denied and shall include the following: • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; SingleSource Self-Insured 64 • A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, the plan will disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request; and • A statement indicating your right to receive, upon request (and free of charge), reasonable access to (and copies of) all documents, records, and other information relevant to the determination. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse determination. Additional Level of Review- If you are dissatisfied with the outcome of your appeal, you, may request an additional review. To initiate this review you should follow the same process required for an appeal. You must submit a written request for additional review within 60 days following the receipt of the appeal decision. When you submit a request for additional review of an adverse benefit determination, the plan will provide a full and fair review which will include the following features: • You will have the opportunity to submit written comments, documents, records, and other information related to the claim. • At your request (and free of charge), you will be provided with reasonable access to (and copies of) all documents, records, and other information relevant to your claim for benefits. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse benefit determination. You also have the right to review documentation showing that the plan followed its own internal processes for ensuring appropriate decision making. • The review of your claim will take into account all comments, documents and other information. without regard to whether such information was submitted or considered in the initial adverse . benefit determination. • Additional review will not afford deference to the appeal determination, and the review will be . conducted by a designated plan representative who did not make the original determination and does not report to the plan representative who made the original determination. • In deciding an appeal of any adverse benefit determination that is based on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or medically appropriate), the designated plan representative will consult with a health care professional who has appropriate training and experience in the particular field of medicine involved in the medical judgment. This health care professional will not be the same professional who was originally consulted in connection with the adverse determination; neither will this health care professional report to the health care professional who was consulted in connection with the adverse determination. The plan will uphold the findings of the independent review in responding to the appeal. • The plan will identify medical or vocational experts whose advice was obtained on behalf of the plan in connection with an adverse benefit determination of your claim, whether or not that advice was relied upon in making the benefit determination. After you submit the claim for additional review, the plan will make a decision on your appeal as follows: Additional Review of Urgent Care Claims - The plan's expedited additional review process for urgent care claims will allow you to request (orally or in writing) an expedited review, after which, all necessary information, including the plan's benefit determination on review, will be transmitted between the plan and you by telephone, fax, or other expeditious method. You will be notified (in writing or electronically) of the benefit determination as soon as possible, but not later than 72 hours after the plan receives the request for the review. Additional Review of Non-Urgent Pre-Service Claims - For non-urgent pre-service claims, you will be notified (in writing or electronically) of the review outcome within a reasonable period of time appropriate to the medical circumstances, but not later than 30 days. SingleSource Self-Insured 65 Additional Review of Concurrent Care Claims - For concurrent care claims, you will be notified (in writing or electronically) of the review outcome with reasonable advance notice before the benefit reduction or termination takes place. Additional Review of Post-Service Claims - For post-service claims, you will be notified (in writing or electronically) of the review outcome within a reasonable period of time, but not later than 60 days. Denial of Claim after Additional Review - If after your request for additional review the claim is denied, the plan will send you written or electronic notification that explains why the additional review upheld the denial and shall include the following: • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; • A statement disclosing any internal rule, guidelines, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, the plan will disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances, or (b) a statement that such explanation will be provided at no charge upon request; and • A statement indicating your right to receive, upon request (and free of charge), reasonable access to (and copies of) all documents, records, and other information relevant to the determination. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse determination. Independent External Review - You may have the right to have your case reviewed by an external independent review organization. Only decisions that are based on issues related to medical necessity, medical appropriateness, health care setting, level of care, or effectiveness of a covered benefit may be appealed to an external independent review organization. The plan must contract with at least three different independent external review organizations and must rotate between them on a random or circulating basis. Your request for an independent review must be made in writing to PacifcSource within 180 days of the date of the final internal adverse benefit determination. You may include additional written information, which will be included with the documents PacifcSource provides to the independent review organization. A final decision made by an independent review organization is binding on the Plan Sponsor. This decision is also binding on you, except to the extent other remedies are available under state or federal law. In certain instances you may be able to request an expedited review process, such as when the timeframe for completion of the internal appeals process would seriously jeopardize the life or health of the claimant or their ability to regain maximum function, or if the final adverse benefit determination concerns an admission, availability of care, continued stay or health care service for which the claimant received emergency services, but has not been discharged from a facility. Resources For Information And Assistance Assistance in Other Languages Members who do not speak English may contact PacificSource's Customer Service Department for assistance. They can usually arrange for a multilingual staff member or interpreter to speak with them in their native language. Information Available from PacifcSource PacifcSource makes the following written information available to you free of charge. You may contact their Customer Service Department by phone, mail, or email to request any of the following: A directory of participating healthcare providers under your plan SingleSource Self-Insured 66 • Information about PacificSource's drug formulary • A copy of PacificSource's annual report on complaints and appeals • A description (consistent with risk-sharing information required by the Centers for Medicare and Medicaid Services, formerly known as Health Care Financing Administration) of any risk-sharing arrangements PacificSource has with providers • A description of PacificSource's efforts to monitor and improve the quality of health services • Information about how PacificSource checks the credentials of PacificSource's network providers and how you can obtain the names and qualifications of your healthcare providers • Information about PacificSource's preauthorization procedures • Information about any healthcare plan offered by the Plan Sponsor Information Available from the Oregon Insurance Division The following consumer information is available from the Oregon Insurance Division: • The results of all publicly available accreditation surveys • A summary of PacificSource's health promotion and disease prevention activities • Samples of the written summaries delivered to PacificSource policyholders • An annual summary of grievances and appeals against PacificSource • An annual summary of PacificSource's quality assessment activities • An annual summary of the scope of PacificSource's provider network and accessibility of healthcare services You can request this information by contacting the Oregon Insurance Division by writing to the Oregon Insurance Division, Consumer Advocacy Unit, PO Box 14489, Salem, OR 97309-0405 or by phone at (503) 947-7984, or the toll-free message line at (888) 877-4894, on the Internet at http://insurance.oregon.gov/consumer/consumer.html, or by email at cp.ins@state.or.us. Plan Sponsoes Discretionary Authority; Standard of Review The Plan Sponsor is the sole fiduciary of the plan, and exercises all discretionary authority and control over the administration of the plan and the management and disposition of plan assets. Benefits under the plan will be paid only if the Plan Sponsor decides, in its discretion, that the member or beneficiary is entitled to such benefits. Any construction of the terms of any plan document and any determination of fact adopted by the Plan Sponsor shall be final and legally binding on the parties. A court of law or arbitrator reviewing any fiduciary's decision, including one relating the plan interpretation or a benefit claim, must consider only the documents, testimony and other evidence that were presented to the fiduciary at the time the fiduciary made the decision. In addition, the court or arbitrator must use the 'arbitrary and capricious' standard of review. That is, the fiduciary's determination can be reversed only if it was made in bad faith, is not supported by substantial evidence or is erroneous as to a question of law. The Plan Sponsor may hire someone to perform claims processing and other specified services in relation to the plan. Any such contractor will not be a fiduciary of the plan and will not exercise any of the discretionary authority and responsibility granted to the Plan Sponsor, as described above. Coordination of Benefits Coordinating with Other Group Health Plans - When benefits are coordinated, one plan pays benefits first (the 'primary coverage') and the other plan pays benefits second (the 'secondary coverage'). When you and/or your dependents are covered under more than one group health plan, the combined benefits payable by this plan and all other group plans will not exceed 100% of the eligible expense incurred by the individual. The plan assuming primary payer status will determine benefits first without regard to benefits provided under any other group health plan. SingleSource Self-Insured 67 Note: If your primary and secondary coverage both include a deductible, you will be required to satisfy each of those deductibles before benefits will be paid. There are two types of Coordination of Benefits -'True' Coordination of Benefits and Non-Duplicating Coordination of Benefits (also called Integration of Benefits.) See the Medical Benefit Summary to determine if your plan offers True Coordination of Benefits or Non-Duplicating/Integration of Benefits. For True Coordination of Benefits, the primary plan will pay benefits first, subject to any deductibles, co-payments and co-insurance. The remaining balance will be passed on to the secondary payer. When this plan is the secondary payer, the balance of eligible expenses will be applied as if it was a new claim under this plan. Deductibles, co-payments and co-insurance relevant to this plan will be subtracted from the amount before paying the remainder. For Non-Duplicating Coordination of Benefits/Integration of Benefits, the primary plan will pay benefits first, subject to any deductibles, co-payments and co-insurance. The remaining balance will be passed on to the secondary payer. When this plan is the secondary payer, it will reimburse the balance of remaining eligible expenses, not to exceed normal plan liability if this plan had been primary. This means that if the primary payer has already paid as much as or more than this plan would have paid had this plan been primary, there will be no additional payment made. This does not apply to City of Ashland. Government Programs and Other Group Health Plans -The term group health plan, as it relates to coordination of benefits, includes the government programs Medicare, Medicaid and TriCare. The regulations governing these programs take precedence over the determination of benefits under this plan. For example, in determining the benefits payable under the plan, the plan will not take into account the fact that you or any eligible dependent(s) are eligible for or receive benefits under a Medicaid plan. The term group health plan also includes all group insurance and group subscriber contracts, such as union welfare plans. Order of Payment When Coordinating with Other Group Health Plans • If the other plan does not include 'coordination of benefits,' that plan is primary and this plan is secondary. • If you are covered as an employee on one plan and a dependent on another, your Plan Sponsors plan is primary. • When a child is covered under both parents' policies and the parents are either married or are living together (regardless of whether or not they have ever been married): - The parent whose birthday falls first in a benefit year has the primary plan, or - If both parents have the same birthday, the parent who has been covered the longest has the primary plan. • When a child is covered under both parents' plans and the parents are divorced, separated, or not living together (regardless of whether or not they have ever been married): - If a court order specifies that one parent is responsible for the child's healthcare expenses, the mandated parent's coverage is primary regardless of custody. - If a court order specifies that both parents are responsible for the child's healthcare expenses, the parent whose birthday falls first in a benefit year has the primary plan. If both parents have the same birthday, the parent who has been covered the longest has the primary plan. - If a court order specifies that both parents have joint custody without specifying that one parent has responsibility for the child's healthcare expenses, the parent whose birthday falls first in a benefit year has the primary plan. If both parents have the same birthday, the parent who has been covered the longest has the primary plan. - If there is no court order, the order of benefits for the child are as follows: o The custodial parent's coverage is primary, o The spouse of the custodial parent's coverage pays second; SingleSource Self-Insured 68 o The natural parent without custody's coverage pays third; and o The spouse of the natural parent without custody's coverage pays fourth. • If a plan covers you as an active employee or a dependent of an active employee, that plan is primary. Another plan covering you as inactive, laid off, or retired is secondary. • When this plan covers you or your dependent pursuant to COBRA or under a right of continuation pursuant to other federal law, the plan covering you or your dependent as an employee, member, subscriber, or retiree or covering you or your dependent as a dependent of an employee, member, subscriber or retiree is the primary plan and this plan's coverage is the secondary plan. • If none of these rules apply, the coverage that has been in place longest is primary. Most insurers or administrators send you an explanation of benefits, or EOB, when they pay a claim. If your other plan's coverage is primary, send PacifcSource the other plan's EOB with your original bill and they will process your claim. If you receive more than you should when your benefits are coordinated, you will be expected to repay any over-payment to the plan. Right to Make Payments to Other Organizations - Whenever payments, which should have been made by this plan, have been made by any other plan(s), this plan has the right to pay the other plan(s) any amount necessary to satisfy the terms of this coordination of benefits provision. Amounts paid will be considered benefits paid under this plan and, to the extent of such payments, the plan will be fully released from any liability regarding the person for whom payment was made. Automobile Insurance - This plan provides benefits relating to medical expenses incurred as a result of an automobile accident on a secondary basis only. Benefits payable under this plan will be coordinated with and secondary to benefits provided or required by any no-fault automobile insurance statute, whether or not a no-fault policy is in effect, and/or any other automobile insurance. Any benefits provided by this plan will be subject to the plan's reimbursement and/or subrogation provisions. OTHER IMPORTANT PLAN PROVISIONS Assignment of Benefits All benefits payable by the plan are automatically assigned to the provider of services or supplies, unless evidence of previous payment is submitted with the claim form. However, the plan reserves the right to reimburse the member, the provider, or both jointly. Payments made in accordance with an assignment are made in good faith and release the plan's obligation to the extent of the payment. Payments will also be made in accordance with any assignment of rights required by a state Medicaid plan. Members are expressly prohibited from assigning any right to payment of benefits under a Benefit Program, including this plan. No attempts at assignment of any such expenses under a Benefit Program will be recognized. Except as may be expressly prescribed in an agreement to which the Plan Sponsor is a party, nothing contained in any written designation of coverage under a Benefit Program will make the Benefit Program, or the Plan Sponsor or any other employer, liable to any third-party to whom a member may be liable for medical care, treatment or services. Proof of Loss The Plan Sponsor has the right to require a claimant to undergo physical or psychological examinations relating to the claimant's illness, injury or condition as often as the Plan Sponsor deems reasonably necessary while the claim for benefits is pending. The Plan Sponsor also has the right to require an autopsy in case of death (where not prohibited by law). No Verbal Modifications of Plan Provisions No verbal statement made by anyone involved in administering this plan can waive any of the terms or conditions of this plan or prevent the Plan Sponsorfrom enforcing any provision of this plan. Waivers are valid only if they are contained in a written instrument signed by an authorized individual on behalf of the Plan Sponsor. Any such written waiver will be valid only as to the specific plan, term or condition set forth in the written instrument. Unless specifically stated otherwise, a written waiver will be valid only SingleSource Self-Insured 69 for the specific claim involved at the time, and will not be a continuing waiver of the term or condition in the future. Reimbursement to the Plan This section applies whenever another party (including your own insurer under an automobile or other policy) is legally responsible or agrees to compensate you or your dependent, by settlement, verdict or otherwise, for an illness or injury. In that case, you or your dependent (or the legal representatives, estate or heirs of either you or your dependent), must promptly reimburse the plan for any benefits it paid relating to that illness or injury, up to the full amount of the compensation received from the other party (regardless of how that compensation may be characterized and regardless of whether you or your dependent have been made whole). If the plan has not yet paid benefits relating to that illness or injury, the plan may reduce or deny future benefits on the basis of the compensation received by you or your dependent. Benefits relating to such illness or injury will not be payable by the plan until you sign and return a statement, provided by the plan, acknowledging your obligation to reimburse the plan under this provision. That obligation will arise upon the payment of any plan benefits relating to the illness or injury, whether or not you sign such a statement. You or your dependent must cooperate with the plan and its authorized representatives, and must sign and deliver such documents as the plan or its agents reasonably request to protect the plan's right of reimbursement. You or your dependent must also provide any relevant information and take such actions as the plan or its agents reasonably request to assist the plan in making a full recovery of the reasonable value of the benefits provided. You or your dependent must not take any action that prejudices the plan's right of reimbursement. In order to secure the rights of the plan under this section, you or your dependent hereby: (1) grant to the plan a first priority lien against the proceeds of any such settlement, verdict or other amounts received by you or your dependent, and (2) assign to the plan any benefits you or your dependent may have under any automobile policy or other coverage, to the extent of the plan's claim for reimbursement. The reimbursement required under this provision will not be reduced to reflect any costs or attorneys' fees incurred in obtaining compensation unless separately agreed to, in writing, by the Plan Sponsor, in the exercise of its sole discretion. This plan expressly disavows and repudiates the make whole doctrine, which, if applicable, would prevent the plan from receiving a recovery unless a member has been 'made whole' with regard to illness or injury that is the responsibility of a third party. This plan also expressly disavows and repudiates the common fund doctrine, which, if applicable, would require the plan to pay a portion of the attorney fees and costs expended in obtaining a recovery. These doctrines have no application to this plan, since the plan's recovery rights apply to the first dollars payable by a third party. Subrogation This section applies whenever another party (including your own insurer under an automobile or other policy) is legally responsible or agrees to compensate you or your dependent for you or your dependent's illness or injury and the plan has paid benefits related to that illness or injury. The plan is subrogated to all of the rights of you or your dependent against any party liable for you or your dependent's illness or injury to the extent of the reasonable value of the benefits provided to you or your dependent under the plan. The plan may assert this right independently of you or your dependent. You and your dependent are obligated to cooperate with the plan and its authorized representatives in order to protect the plan's subrogation rights. Cooperation means providing the plan or its agents with any relevant information requested by them, signing and delivering such documents as the plan or its agents reasonably request to secure the plan's subrogation claim, and obtaining the consent of the plan or its agents before releasing any party from liability for payment of medical expenses. If you or your dependent enters into litigation or settlement negotiations regarding the obligations of other parties, you or your dependent must not prejudice, in any way, the subrogation rights of the plan under this section. SingleSource Self-Insured 70 The costs of legal representation of the plan in matters related to subrogation will be borne solely by the plan. The costs of legal representation of you or your dependent must be borne solely by you or your dependent. Recovery of Excess Payments Whenever payments have been made in excess of the amount necessary to satisfy the provisions of this plan, or were made in error by the plan, the plan has the right to recover these payments from any individual (including yourself), insurance company or other organization to whom the payments were made or to withhold payment, if necessary, on future benefits until the overpayment is recovered. If excess or erroneous payments were made for services rendered to your dependent(s), the plan has the right to withhold payment on your future benefits until the overpayment is recovered. Further, whenever payments have been made based on fraudulent information provided by you, the plan will exercise all available legal rights, including its right to withhold payment on future benefits, until the overpayment is recovered. In the same manner, if the plan applies medical expenses to the plan deductible that would not otherwise be reimbursable under the terms of this policy, the plan may deduct a like amount from the accumulated deductible amounts and/or recover payment of medical expenses that would have otherwise been applied to the deductible. The fact that a medical expense was applied to the plan's deductible, or that a drug was provided under the plan's prescription drug program, does not in.itself create an eligible expense or infer that benefits will continue to be provided for an otherwise excluded condition. Right To Receive and Release Necessary Information The plan may, without the consent of or notice to any person, release to or obtain from any organization or person, information needed to implement plan provisions, including medical information. When you request benefits, you must either furnish or authorize the release of all the information required to implement plan provisions. Your failure to fully cooperate will result in a denial of the requested benefits and the plan will have no further liability for such benefits. Under normal conditions, benefits are payable to the provider of services or supplies, unless evidence of previous payment is submitted with the claim form. If conditions exist under which a valid release or assignment cannot be obtained, the plan may make payment to any individual or organization that has assumed the care or principal support for you and is equitably entitled to payment. The plan must make payments to your separated/divorced spouse, state child support agencies or Medicaid agencies if required by a qualified medical child support order (QMCSO) or state Medicaid law. The plan may also honor benefit assignments made prior to your death in relation to remaining benefits payable by the plan. Any payment made by the plan in accordance with this provision will fully release the plan of its liability to you. Reliance on Documents and Information Information required by the Plan Sponsor or PacifcSource may be provided in any form or document that the Plan Sponsor and PacifcSource considers acceptable and reliable. The Plan Sponsor and PacificSource relies on the information provided by you and others when evaluating coverage and benefits under the plan. All such information, therefore, must be accurate, truthful and complete. The Plan Sponsor and PacificSource is entitled to conclusively rely upon, and will be protected for any action taken in good faith in relying upon, any information provided to the Plan Sponsor or PacificSource. In addition, any fraudulent statement, omission or concealment of facts, misrepresentation, or incorrect information may result in the denial of the claim, cancellation or rescission of coverage, or any other legal remedy available to the plan. No Waiver The failure of the Plan Sponsor to enforce strictly any term or provision of this plan will not be construed as a waiver of such term or provision. The Plan Sponsor reserves the right to enforce strictly any term or provision of this plan at any time. SingleSource Self-Insured 71 Physician/Patient Relationship This plan is not intended to disturb the physician/patient relationship. Physicians, practitioners and other health care providers are not agents or delegates of the Plan Sponsor, or the Third Party Administrator. Nothing contained in this plan will require you or your dependent to commence or continue medical treatment by a particular provider. Further, nothing in this plan will limit or otherwise restrict a physician or practitioner's judgment with respect to the physician or practitioner's ultimate responsibility for patient care in the provision of medical services to you or your dependent. Plan not responsible for Quality of Health Care You and your enrolled dependents have the right to select your health care provider. Neither the plan, your Plan Sponsor, nor Third Party Administrator is responsible for the quality of care received and cannot be held liable for any claim or damages connected with injuries suffered while receiving health services or supplies. Plan is not a Contract of Employment Nothing contained in this plan will be construed as a contract or condition of employment between the Plan Sponsor and any.employee. All employees are subject to discharge to the same extent as if this plan had never been adopted. Right to Amend or Terminate Plan Plan Sponsor reserves the right to amend, modify or terminate the plan in any manner, for any reason, at any time. If changes occur, your Plan Sponsorwill notify you of changes to your plan. If your health plan terminates and your Plan Sponsor does not replace the coverage with another group policy, your Plan Sponsor is required by law to advise you in writing of the termination. When this plan terminates, your Plan Sponsor will notify you about any available options for you to continue your coverage. The Plan Sponsor may pay your medical claims if a workers' compensation claim has been denied on the basis that the illness or injury is not work related, and the denial is under appeal. But before PacificSource does that, you must sign a written agreement to reimburse the Plan Sponsor any money you recover from the workers' compensation coverage. Rescissions The Plan Sponsor or PacificSource may not rescind the coverage of a member unless the member, or person seeking coverage on behalf of the member, performs an act, practice or omission that constitutes fraud or makes an intentional misrepresentation of a material fact as prohibited by the terms of this plan and the Plan Sponsor or PacificSource gives the member a 30-day prior written notice. PacificSource may not rescind the policyholder's group health benefit plan unless the policyholder, or representative of the policyholder, performs an act, practice or omission that constitutes fraud or makes an intentional misrepresentation of a material fact as prohibited by the terms of this plan and PacificSource gives a 30-day prior written notice to all member covered under the plan. Rescissions do not include a cancellation or discontinuance of coverage that is prospective or to the extent it is attributable to a failure to timely pay required contributions towards the cost of coverage. Applicable Law This is a self-insured benefit plan. As such, Federal law preempts State law and jurisdiction. To the extent not preempted by federal law, the laws of the state of Oregon shall apply. PRIVACY AND CONFIDENTIALITY This notice is intended to bring the City of Ashland Employee Benefit Plan into compliance with the requirements of Section 164.504(f) of the Health Insurance Portability and Accountability Act of 1996 and its implementing regulations, 45 C.F.R. parts 160 through 164 (the'HIPAA Privacy Rule') by SingleSource Self-Insured 72 establishing the conditions under which the Plan Sponsor will receive, use and/or disclose protected health information. Permitted Disclosures of Protected Health Information to the Plan Sponsor Subject to the conditions of the 'No Disclosure of Protected Health Information to the Employer Without Certification by Employer' and 'Conditions of Disclosure of Protected Health Information to the Employer', the plan (and any third party administrator or business associate acting on behalf of the plan) may disclose individuals' protected health information to the Plan Sponsorfor the Plan Sponsoror PacifcSource to carry out plan administration functions. The plan (and any third party administrator or business associate acting on behalf of the plan) may not disclose individuals' protected health information to the Plan Sponsor for employment-related actions and decisions or in connection with any other benefit or employee benefit plan of the Plan Sponsor. No Disclosure of Protected Health Information to the Plan Sponsorwithout Certification by Plan Sponsor Except as provided below in 'Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Employer,' with respect to the plan's disclosure of summary health information and enrol lment/disenrollment information, the plan will not disclose protected health information to any employee of the Plan Sponsor. Conditions of Disclosure of Protected Health Information to the Plan Sponsor The Plan Sponsor certifies that the plan has been amended to incorporate this section and agrees to the following restrictions and conditions of receiving protected health information (other than summary health information or enrollment/disenrollment information as explained in 'Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor below). The Plan Sponsor shall: • Not use or further disclose the protected health information other than as permitted or required herein or as required by law. • Ensure that any agent(s), including a subcontractor, to whom it provides protected health information received from the plan agrees to the same restrictions and conditions that apply to the Plan Sponsorwith respect to such protected health information. • Not use or disclose protected health information for employment-related actions and decisions or in connection with any other benefit or employee benefit plan of the Plan Sponsor. • Report to the plan any use or disclosure of protected health information that is inconsistent with the uses or disclosures provided for of which the Plan Sponsor becomes aware. • Make available protected health information to comply with an individual's right to access protected health information in accordance with 45 C.F.R. Section 164.524. • Make available protected health information for amendment and incorporate any amendments to protected health information in accordance with 45 C.F.R. Section 164.526. • Make available the information required to provide an accounting of disclosures in accordance with 45 C.F.R. §164.528. • Make its internal practices, books and records relating to the use and disclosure of protected health information received from the plan available to the Secretary of the Department of Health and Human Services for purposes of determining compliance by the plan with the HIPAA Privacy Rule. • If feasible, return or destroy all protected health information received from the plan that the Plan Sponsor still maintains in any form and retain no copies of such information when no longer needed for the purpose for which disclosure was made, except that, if such return or destruction is not feasible, the Plan Sponsor will limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible. • Ensure that the required adequate separation, described in 'Required Separation Between the Plan and the Plan Sponsor below, is established and maintained. SingleSource Self-Insured 73 Disclosures of Summary Health Information and Enrollment/Disenrollment Information to the Plan Sponsor • The plan (or a third party administrator of the plan) may disclose summary health information to the Plan Sponsorwithout the need to comply with the conditions and restrictions of 'No Disclosure of Protected Health Information to the Plan Sponsor Without Certification by Plan Sponsor and 'Conditions of Disclosure of Protected Health Information to the Plan Sponsor, if the Plan Sponsor requests the summary health information for the purpose of: - Obtaining premium bids from health plans (including health insurance issuers) for providing health insurance coverage under the plan; or - Modifying, amending, or terminating the plan • The plan (or a third party administrator of the plan) may disclose information on whether the individual is participating in the group health plan, or is enrolled in or has disenrolled from the plan without the need to comply with the conditions and restrictions of 'No Disclosure of Protected Health Information to the Plan Sponsor Without Certification by Plan Sponsor and 'Conditions of Disclosure of Protected Health Information to the Plan Sponsor Required Separation between the Plan and the Plan Sponsor • The following classes of employees or other persons under the control of the Plan Sponsor will have access to protected health information received from the plan (or from a health insurance issuer with respect to the plan): - Human Resources • No other persons shall have access to protected health information. The listed classes of employees or other persons under the control of the Plan Sponsorwill have access to protected health information solely to perform the plan administration functions that the Plan Sponsor performs for the plan. They will be subject to disciplinary action and/or sanctions (including termination of employment or affiliation with the Plan Sponsor) for any use or disclosure of protected health information in violation of the provisions of this plan. DEFINITIONS Wherever used in this plan, the following definitions apply to the terms listed below, and the masculine includes the feminine and the singular includes the plural. For the purpose of this plan, 'employee' includes the Plan Sponsorwhen covered by this plan. Other terms are defined where they are first used in the text. Abutment is a tooth used to support a prosthetic device (bridges, partials or overdentures). With an implant, an abutment is a device placed on the implant that supports the implant crown. Accident means an unforeseen or unexpected event causing injury that requires medical attention. Actively at work or active employment means that an employee is performing in the customary manner all of the regular duties of his/her occupation with the Plan Sponsor, either at one of the Plan Sponsors regular places of business or at some location to which the Plan Sponsors business requires the employee to travel to perform his/her regular duties assigned by the Plan Sponsor. An employee is also considered to be actively at work on each day of a regular paid vacation or non-work day, but only if the employee is performing in the customary manner all of the regular duties of the employee's occupation with the Plan Sponsor on the immediately preceding regularly scheduled workday. Advanced diagnostic imaging means diagnostic examinations using CT scans, MRIs, PET scans, CATH labs, and nuclear cardiology studies. Adverse benefit determination means a denial, reduction, or termination of a healthcare item or service, or a failure or refusal to provide or to make a payment in whole or in part for a healthcare item or service, that is based on the Plan Sponsors or PacificSource's: • Denial of eligibility for or termination of enrollment in a health benefit plan; • Rescission or cancellation of a policy or coverage; • Imposition of a source-of-injury exclusion, network exclusion, annual benefit limit or other limitation on otherwise covered items or services; SingleSource Self-Insured 74 • Determination that a healthcare item or service is experimental, investigational, or not medically necessary, effective, or appropriate; or • Determination that a course or plan of treatment that a member is undergoing it an active course of treatment for purposes of continuity of care under ORS 743.854. Advantage Essential Network is the exclusive provider network that provides dental care to members under this plan. Allowable fee is the dollar amount established by the plan for reimbursement of charges for specific services or supplies provided by nonparticipating providers. The plan uses several sources to determine the allowable amount. Depending on the service or supply and the geographical area in which it is provided, the allowable amount may be based on data collected from the Centers for Medicare and Medicaid Services (CMS), Viant Health Payment Solutions, other nationally recognized databases, or PacificSource. Where the provider network is deemed adequate, the allowable fee for professional services is based on PacificSource's standard participating provider reimbursement rate or a contracted reimbursement rate. Outside the PacificSource service area and in areas where the participating provider network is not deemed adequate, the allowable fee is based on the usual, customary, and reasonable charge (UCR) at the 85th percentile. UCR is based on data collected for a geographic area. Provider charges for each type of service are collected and ranked from lowest to highest. Charges at the 85th position in the ranking are considered to be the 85th percentile. Alveolectomy is the removal of bone from the socket of a tooth. Amalgam is a silver-colored material used in restoring teeth. Ambulatory surgical center means a facility licensed by the appropriate state or federal agency to perform surgical procedures on an outpatient basis. Ancillary Services means service rendered in connection with Inpatient or Outpatient care in a Hospital or in connection with a medical emergency, such as assistant surgeon, anesthesiology, ambulance, pathology and radiology. Approved clinical trials are Phase I, 11, III, or IV clinical trials for the prevention, detection, or treatment of cancer or another life-threatening condition or disease. Authorized representative is an individual who by law or by the contest of a person may act on behalf of the person. Benefit year means the 12-month period beginning on each January 1 and ending on the next December 31. Cardiac rehabilitation refers to a comprehensive program that generally involves medical evaluation, prescribed exercise, and cardiac risk factor modification. Education, counseling, and behavioral interventions are sometimes used as well. Phase I refers to inpatient services that typically occur during hospitalization for heart attack or heart surgery. Phase II refers to a short-term outpatient program, usually involving ECG-monitored exercise. Phase III refers to a long-term program, usually at home or in a community-based facility, with little or no ECG monitoring. Cast restoration includes crowns, inlays, onlays, and other restorations made to ft a patient's tooth that are made at a laboratory and cemented onto the tooth. Certificate of Creditable Coverage means a certificate or other documentation that shows previous health insurance coverage for a member and can be used to reduce the length of any pre-existing condition exclusions under a plan. See Creditable coverage. Chemical dependency means the addictive relationship with any drug or alcohol characterized by either a physical or psychological relationship, or both, that interferes with the individual's social, psychological, or physical adjustment to common problems on a recurring basis. Chemical dependency does not include addiction to, or dependency on, tobacco products or foods. Claims Administrator means the organization selected by the City of Ashland to provide claims processing and adjudication under their plans. The Claims Administrator for their medical, vision and pharmacy coverage is PacificSource. Composite resin is a tooth-colored material used in restoring teeth. Contracted amount means the amount that participating providers have contracted to accept as payment in full for covered expenses under the plan. SingleSource Self-Insured 75 Co-payment or co-insurance is the out-of-pocket amount a member is required to pay to a provider. Creditable coverage means a member's prior health coverage that meets the following criteria: There was no more than a 63-day break between the last day of coverage under the previous policy and the first day of coverage under this policy. The 63-day limit excludes the Plan Sponsor's eligibility waiting period. • The prior coverage was one of the following types of insurance: group coverage (including Federal Employee Health Benefit Plans and Peace Corps), individual coverage (including student health plans), Medicaid, Medicare, TRICARE, Indian Health Service or tribal organization coverage, state high-risk pool coverage, and public health plans. Curettage is the scraping and cleaning of the walls of a real or potential space, such as a gingival pocket or bone, to remove pathological material. Custodial Care means non-medical care that is primarily to assist with activities of daily living, whether or not the care is administered by a licensed provider. Deductible means the portion of the healthcare expense that must be paid by the member before the benefits of this plan are applied. Dental emergency means the sudden and unexpected onset of a condition, or exacerbation of an existing condition, requiring necessary care to control pain, swelling or bleeding in or around the teeth and gums. Such emergency care must be provided within 48 hours following the onset of the emergency and includes treatment for acute infection, pain, swelling, bleeding, or injury to natural teeth and oral structures. The emergency care does not include follow-up care such as, but not limited to, crowns, root canal therapy, or prosthetic benefits. Dentist means a person acting within the scope of their license, holding the degree of Doctor of Medicine (M.D.), Doctor of Dental Surgery (D.D.S.), or Doctor of Dental Medicine (D.M.D.), and who is legally entitled to practice dentistry in all its branches under the laws of the state or jurisdiction where the services are rendered. Durable medical equipment means equipment that can withstand repeated use; is primarily and customarily used to serve a medical purpose rather than convenience or comfort; is generally not useful to a person in the absence of an illness or injury; is appropriate for use in the home; and is prescribed by a physician. Examples of durable medical equipment include but are not limited to hospital beds, wheelchairs, crutches, canes, walkers, nebulizers, commodes, suction machines, traction equipment, respirators, TENS units, and hearing aids. Durable medical equipment supplier means a PacificSource contracted provider or a provider that satisfies the criteria in the Medicare Qualify Standards for Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, Supplies (DMEPOS) and Other Items and Services Summary Plan Description. Elective surgery or procedure refers to a surgery or procedure for a condition that does not require immediate attention and for which a delay would not have a substantial likelihood of adversely affecting the health of the patient. Eligible dental provider means a physician, dentist, oral surgeon, endodontist, orthodontist, periodontist, or pedodontist. Eligible provider may also include a denturist or dental hygienist to the extent that he/she operates within the scope of their license. Emergency medical condition means a medical condition: • That manifests itself by acute symptoms of sufficient severity, including severe pain that a prudent layperson possessing an average knowledge of health and medicine would reasonably expect that failure to receive immediate medical attention would: - Place the health of a person, or an unborn child in the case of a pregnant woman, in serious jeopardy; - Result in serious impairment to bodily functions; or - Result in serious dysfunction of any bodily organ or part; or • With respect to a pregnant woman who is having contractions, for which there is inadequate time to affect a safe transfer to another hospital before delivery or for which a transfer may pose a threat to the health or safety of the woman or the unborn child. Emergency medical screening exam means the medical history, examination, ancillary tests, and medical determinations required to ascertain the nature and extent of an emergency medical condition. SingleSource Self-Insured 76 Emergency services means, with respect to an emergency medical condition: • An emergency medical screening exam that is within the capability of the emergency department of a hospital, including ancillary services routinely available to the emergency department to evaluate such emergency medical condition, and • Such further medical examination and treatment as are required under 42 U.S.C. 1395dd to stabilize the patient to the extent the examination and treatment are within the capability of the staff and facilities available at a hospital. Employee means any individual employed by a Plan Sponsor. Endorsement is a written attachment that alters and supersedes any of the terms or conditions set forth in this contract. Enrollee means an employee, dependent of the employee, or individual otherwise eligible and enrolled for coverage under this plan. In this policy, enrollee is referred to as subscriber or member. Essential health benefits are services defined as such by the Secretary of the U.S. Department of Health and Human Services. Essential health benefits fall into the following categories: • Ambulatory patient services; • Emergency services; • Hospitalization; • Maternity and newborn care; • Mental health and substance use disorder services, including behavioral health treatment; • Prescription drugs; • Rehabilitative and habilitative services and devices; • Laboratory services; • Preventive and wellness services and chronic disease management; and • Pediatric services, including oral and vision care. Exclusion period means a period during which specified conditions, treatments or services are excluded from coverage. Experimental or investigational procedures means services, supplies, protocols, procedures, devices, chemotherapy, drugs or medicines, or the use thereof, that are experimental or investigational for the diagnosis and treatment of illness or injury. • Experimental or investigational services and supplies include, but are not limited to, services, supplies, procedures, devices, chemotherapy, drugs or medicines, or the use thereof, which at the time they are rendered and for the purpose and in the manner they are being used: Have not yet received full U.S. government agency required approval (e.g., FDA) for other than experimental, investigational, or clinical testing; - Are not of generally accepted medical practice in the'state of Oregon or as determined by PacificSource in consultation with medical advisors, medical associations, and/or technology resources; - Are not approved for reimbursement by the Centers for Medicare and Medicaid Services; - Are furnished in connection with medical or other research, or, - Are considered by any governmental agency or subdivision to be experimental or investigational, not considered reasonable and necessary, or any similar finding. • When making decisions about whether treatments are investigational or experimental. PacificSource relies on the above resources as well as: - Expert opinions of specialists and other medical authorities; - Published articles in peer-reviewed medical literature; - External agencies whose role is the evaluation of new technologies and drugs; and - External review by an independent review organization. SingleSource Self-Insured 77 • The following will be considered in making the determination whether the service is in an experimental and/or investigational status: - Whether there is sufficient evidence to permit conclusions concerning the effect of the services on health outcomes, - Whether the scientific evidence demonstrates that the services improve health outcomes as much or more than established alternatives; - Whether the scientific evidence demonstrates that the services' beneficial effects outweigh any harmful effects, and - Whether any improved health outcomes from the services are attainable outside an investigational setting. Formulary is a list of approved brand name medications used to treat various medical conditions. The formulary list is developed by the pharmacy benefits management company and PacificSource. Generic drugs are drugs that, under federal law, require a prescription by a licensed physician (M.D. or D.O.) or other licensed medical provider and are not a brand name medication. By law, generic drugs must have the same active ingredients as the brand name medication and are subject to the same standards of their brand name counterpart. Grievance means: • A request submitted by a member or an authorized representative of a member; - In writing, for an internal appeal or an external review; or - In writing or orally, for an expedited internal review or an expedited external review; or • A written complaint submitted by a member or an authorized representative of a member regarding: - The availability, delivery, or quality of a healthcare service; - Claims payment, handling, or reimbursement for healthcare services and, unless the member has not submitted a request for an internal appeal, the complaint is not disputing an adverse benefit determination; or - Matters pertaining to the contractual relationship between a member and PacificSource. Health care provider means a physician, practitioner, nurse, hospital or specialized treatment facility as defined in this document. Health benefit plan means any hospital expense, medical expense, or hospital or medical expense policy or certificate, healthcare contractor or health maintenance organization subscriber contract, or any plan provided by a multiple employer welfare arrangement or by another benefit arrangement defined in the federal Employee Retirement Income Security Act of 1974, as amended, to the extent that plan is subject to state regulation. Hearing aids mean any nondisposable, wearable instrument or device designed to aid or compensate for impaired human hearing and any necessary ear mold, part, attachments or accessory for the instrument or device, except batteries and cords. Hearing aids include any amplifying device that does not produce as its output an electrical signal that directly stimulates the auditory nerve. For the purpose of this definition, such amplifying devices include air conduction and bone conduction devices, as well as those that provide vibratory input to the middle ear. Homebound means the ability to leave home only with great difficulty with absences infrequently and of short duration. Infants and toddlers will not be considered homebound without medical documentation that clearly establishes the need for home skilled care. Lack of transportation is not considered sufficient medical criterion for establishing that a person is homebound. Hospital means an institution licensed as a 'general hospital' or 'intermediate general hospital' by the appropriate state agency in the state in which it is located. Illness includes a physical or mental condition that results in a covered expense. Physical illness is a disease or bodily disorder. Mental illness is a psychological disorder that results in pain or distress and substantial impairment of basic or normal functioning. Incurred expense means charges of a healthcare provider for services or supplies for which a member becomes obligated to pay. The expense of a service is incurred on the day the service is rendered, and the expense of a supply is incurred on the day the supply is delivered. SingleSource Self-Insured 78 Initial enrollment period means a period of 60 days following the date an individual is first eligible to enroll. Injury means bodily trauma or damage that is independent of disease or infirmity. The damage must be caused solely by external and accidental means and does not include muscular strain sustained while performing a physical activity. Inquiry means a written request for information or clarification about any subject matter related to the member's health benefit plan. Internal appeal means a review by PacificSource or your Plan Sponsor of an adverse benefit determination made by PacificSource. Leave of absence is a period of time off work granted to an employee by the Plan Sponsor at the employee's request and during which the employee is still considered to be employed and is carried on the employment records of the Plan Sponsor. A leave can be granted for any reason acceptable to the Plan Sponsor, including disability and pregnancy. Lifetime means the period of time a member is enrolled in this plan or any other Plan Sponsored by the Plan Sponsor. Mastectomy is the surgical removal of all or part of a breast or a breast tumor suspected to be malignant. Medically necessary means those services and supplies that are required for diagnosis or treatment of illness or injury and that are: • Consistent with the symptoms or diagnosis and treatment of the condition; • Consistent with generally accepted standards of good medical practice in the state of Oregon, or expert consensus physician opinion published in peer-reviewed medical literature, or the results of clinical outcome trials published in peer-reviewed medical literature; • As likely to produce a significant positive outcome as, and no more likely to produce a negative outcome than, any other service or supply, both as to the disease or injury involved and the patient's overall health condition; • Not for the convenience of the member or a provider of services or supplies; • The least costly of the alternative services or supplies that can be safely provided. When specifically applied to a hospital inpatient, it further means that the services or supplies cannot be safely provided in other than a hospital inpatient setting without adversely affecting the patient's condition or the quality of medical care rendered. Services and supplies intended to diagnose or screen for a medical condition in the absence of signs or symptoms, or of abnormalities on prior testing, including exposure to infectious or toxic materials or family history of genetic disease, are not considered medically necessary under this definition (see General Exclusions - Screening tests). Medical supplies means items of a disposable nature that may be essential to effectively carry out the care a physician has ordered for the treatment or diagnosis of an illness or injury. Examples of medical supplies include but are not limited to syringes and needles, splints and slings, ostomy supplies, sterile dressings, elastic stockings, enteral foods, drugs or biologicals that must be put directly into the equipment in order to achieve the therapeutic benefit of the durable medical equipment or to assure the proper functioning of this equipment (e.g. Albuterol for use in a nebulizer). Member means an individual insured through the Plan Sponsor. Mental and/or chemical healthcare facility means a corporate or governmental entity or other provider of services for the care and treatment of chemical dependency and/or mental or nervous conditions which is licensed or accredited by the Joint Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities for the level of care which the facility provides. Mental and/or chemical healthcare program means a particular type or level of service that is organizationally distinct within a mental and/or chemical healthcare facility. Mental and/or chemical healthcare provider means a person that has met the credentialing requirements of PacificSource, is otherwise eligible to receive reimbursement under the policy and is: • A healthcare facility where appropriately licensed or accredited by the Commission on Accreditation of Hospitals or the Commission on Accreditation of Rehabilitation Facilities; • A residential program or facility; SingleSource Self-Insured 79 • A day or partial hospitalization program, • An outpatient service; or • . An individual behavioral health or medical professional authorized for reimbursement under Oregon law. Mental or nervous conditions means all disorders listed in the 'Diagnostic and Statistical Manual of Mental Disorders, DSM-IV-TR, Fourth Edition' except for: • Mental Retardation (diagnostic codes 317, 318.0, 318.1, 318.2, 319); • Learning Disorders (diagnostic codes 315.00, 315.1, 315.2, 315.9); • Paraphilias (diagnostic codes 302.4, 302.81, 302.89, 302.2, 302.83, 302.84, 302.82, 302.9); and • Gender Identity Disorders in Adults (diagnostic codes 302.85, 302.6, 302.9 - this exception does not extend to children and adolescents 18 years of age or younger); and • 'V codes (diagnostic codes V15.81 through V71.09 - this exception does not extend to children five years of age or younger for diagnostic codes V61.20, V61.21, and V62.82). Network not available means a member does not have reasonable geographic access to a PacificSource participating provider for a medical service or supply. Non-participating provider is a provider of covered medical services or supplies that does not directly or indirectly hold a provider contract or agreement with PacificSource. Non-preferred drugs are covered brand name medications not on the Preferred Drug List. Orthotic devices means rigid or semirigid devices supporting a weak or deformed leg, foot, arm, hand, back or neck or restricting or eliminating motion in a diseased or injured leg, foot, arm, hand, back or neck. Benefits for orthotic devices include orthopedic appliances or apparatus used to support, align, prevent, or correct deformities or to improve the function of movable parts of the body. An orthotic device differs from a prosthetic in that, rather than replacing a body part, it supports and/or rehabilitates existing body parts. Orthotic devices are usually customized for an individual's use and are not appropriate for anyone else. Examples of orthotic devices include but are not limited to Ankle Foot Orthosis (AFO), Knee Ankle Foot Orthosis (KAFO), Lumbosacral Orthosis (LSO), and foot orthotics. PacificSource refers to PacificSource Health Plans. PacificSource is the claims administrator of the Plan Sponsor's medical, vision and pharmacy coverage. References to PacificSource as paying claims or issuing benefits means that PacificSource processes a claim in accordance with the provisions of the Plan Sponsors plans. Participating provider means a physician, healthcare professional, hospital, medical facility, or supplier of medical supplies that directly or indirectly holds a provider contract or agreement with the plan. Periapical x-ray is an x-ray of the area encompassing or surrounding the tip of the root of a tooth. Periodontal maintenance is a periodontal procedure for patients who have previously been treated for periodontal disease. In addition to cleaning the visible surfaces of the teeth (as in prophylaxis) surfaces below the gum-line are also cleaned. This is a more comprehensive service than a regular cleaning (prophylaxis). Periodontal scaling and root planing means the removal of plaque and calculus deposits from the root surface under the gum line. Physical/occupational therapy is comprised of the services provided by (or under the direction and supervision of) a licensed physical or occupational therapist. Physical/occupational therapy includes emphasis on examination, evaluation, and intervention to alleviate impairment and functional limitation and to prevent further impairment or disability. Physician means a state-licensed Doctor of Medicine (M.D.) or a Doctor of Osteopathy (D.O.). Physician assistant is a person who is licensed by an appropriate state agency as a physician assistant. Plan means the City of Ashland Employee Benefits Plan, and all documents, including any insurance contracts, administrative service agreements, Summary Plan Descriptions and any related terms and conditions associated with the Plan. SingleSource Self-Insured 80 Plan Administrator means the Risk Services Division of the City of Ashland, which has responsibility for the management of the plan. Plan Sponsor ('the Plan Sponsor' or'your Plan Sponsor'), means the City of Ashland. The City of Ashland is the fiduciary of the plan, and exercises all discretionary authority and control over the administration of the plan and the management and disposition of plan assets. The Plan Sponsor shall have the sole discretionary authority to determine eligibility for plan benefits or to construe the terms of the plan, and benefits under the plan will be paid only if the Plan Sponsor decides, in its discretion, that the member or beneficiary is entitled to such benefits. The Plan Sponsor has the right to amend, modify, or terminate the plan in any manner, at any time, regardless of the health status of any plan member or beneficiary. Practitioner means Doctor or Medicine (M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery (D.D.S.), Doctor of Dental Medicine (D.M.D.), Doctor of Podiatry Medicine (D.P.M.), Doctor of Chiropractic (D.C.), Doctor of Optometry (O.D.), Licensed Nurse Practitioner (including Certified Nurse Midwife (C.N.M.) and Certified Registered Nurse Anesthetist (C.R.N.A.)), Registered Physical Therapist (R.P.T.), Speech Therapist, Occupational Therapist, Psychologist (Ph.D.), Licensed Clinical Social Worker (L.C.S.W.), Licensed Professional Counselor (L.P.C.), Licensed Marriage and Family Therapist (LMFT), Licensed Psychologist Associate (LPA), Physician Assistant (PA), Audiologist, Acupuncturist, Naturopathic Physician, and Licensed Massage Therapist. Pre-existing condition means a condition (physical or mental) for which medical advice, diagnosis, care, or treatment was recommended by or received from a licensed provider within the six-month period ending on the enrollment date. For the purpose of this definition, the enrollment date of a member is the earlier of the effective date of coverage or the first day of any required group eligibility waiting period, and the enrollment date of a late enrollee is the effective date of coverage. Pregnancy does not constitute a pre-existing condition, nor does genetic information without a diagnosis of a condition related to such information. Preferred is a list of approved brand name medications used to treat various medical conditions. The Preferred Drug List is developed by the pharmacy benefits management company and PacificSource. Prescription drugs are drugs that, under federal law, require a prescription by a licensed physician (M.D. or D.O.) or other licensed medical provider. Prophylaxis is a cleaning and polishing of all teeth. Prosthetic devices (excluding dental) means artificial limb devices or appliances designed to replace in whole or in part an arm or a leg. Benefits for prosthetic devices include coverage of devices that replace all or part of an internal or external body organ, or replace all or part of the function of a permanently inoperative or malfunctioning internal or external organ, and are furnished on a physician's order. Examples of prosthetic devices include but are not limited to artificial limbs, cardiac pacemakers, prosthetic lenses, breast prosthesis (including mastectomy bras), and maxillofacial devices. Pulpotomy is the removal of a portion of the pulp, including the diseased aspect, with the intent of maintaining the vitality of the remaining pulpal tissue by means of a therapeutic dressing. Qualified domestic partner means a registered domestic partner or unregistered same gender domestic partner with an Affidavit of Domestic Partnership, supplied by the Plan Sponsor. Restoration is the treatment that repairs a broken or decayed tooth. Restorations include, but are not limited to, fillings and crowns. Routine costs of care means.medically necessary conventional care, items, or services covered by the health benefit plan if typically provided absent a clinical trial. Routine costs of care do not include: • The drug, device, or service being tested in the clinical trial unless the drug, device, or service would be covered for that indication by the policy if provided outside of a clinical trial; • Items or services required solely for the provisions of the drug, device, or service being tested in the clinical trial; • Items or services required solely for the clinically appropriate monitoring of the drug, device, or service being tested in the clinical trial; • Items of services required solely for the prevention, diagnosis, or treatment of complications arising from the provision of the drug, device, or service being tested in the clinical trial; • Items or services that are provided solely to satisfy data collection and analysis needs and that are not used in the direct clinical management of the patient; SingleSource Self-Insured 81 Items or services customarily provided by a clinical trial sponsor free of charge to any participant in the clinical trial, or • Items or services that are not covered by the policy if provided outside of the clinical trial. Seasonal employee is an employee who is hired with the agreement that their employment will end after a predetermined period of time. Skilled nursing facility convalescent home means an institution that provides skilled nursing care under the supervision of a physician, provides 24-hour nursing service by or under the supervision of a registered nurse (R.N.), and maintains a daily record of each patient. Skilled nursing facilities must be licensed by an appropriate state agency and approved for payment of Medicare benefits to be eligible for reimbursement. Specialized treatment facility means a facility that provides specialized short-term or long-term care. The term specialized treatment facility includes ambulatory surgical centers, birthing centers, chemical dependency/substance abuse day treatment facilities, hospice facilities, inpatient rehabilitation facilities, mental and/or chemical healthcare facilities, organ transplant facilities, psychiatric day treatment facilities, residential treatment facilities, skilled nursing facilities, substance abuse treatment facilities, and urgent care treatment facilities. Specialty drugs are high dollar oral, injectable, infused or inhaled biotech medications prescribed for the treatment of chronic and/or genetic disorders with complex care issues that have to be managed. The major conditions these drugs treat include but are not limited to: cancer, HIV/AIDS, hemophilia, hepatitis C, multiple sclerosis, Crohn's disease, rheumatoid arthritis, and growth hormone deficiency. Specialty pharmacies specialize in the distribution of specialty drugs and providing pharmacy care management services designed to assist patients in effectively managing their condition. Stabilize means to provide medical treatment as necessary to ensure that, within reasonable medical probability, no material deterioration of an emergency medical condition is likely to occur during or to result from the transfer of the patient from a facility; and with respect to a pregnant woman who is in active labor, to perform the delivery, including the delivery of the placenta. Subscriber means an employee or former employee insured under the Plan Sponsor's health policy through PacifcSource. When a family unit that does not include an employee or former employee is insured under a policy, the oldest family member is referred to as the subscriber. Surgical procedure means any of the following operative procedures: • Procedures accomplished by cutting or incision • Suturing of wounds • Treatment of fractures, dislocations, and burns • Manipulations under general anesthesia • Visual examination of the hollow organs of the body including biopsy, or removal of tumors or foreign body • Procedures accomplished by the use of cannulas, needling, or endoscopic instruments • Destruction of tissue by thermal, chemical, electrical, laser, or ultrasound Telemedical means medical services delivered through a two-way video communication that allows a provider to interact with a patient who is at a different physical location than the provider. Temporomandibular Joint Disorder (TMJ) means any dysfunction or disorder of the jaw joint resulting in pain and impairment of the jaw. Third Party Administrator is an administrator hired by the Plan Sponsorto perform claims processing and other specified administrative services in relation to the plan. The third party administratoris not an insurer of health benefits under this plan, is not a fiduciary of the plan, and does not exercise any of the discretionary authority and responsibility granted to the Plan Sponsor. The third party administrator is not responsible for plan financing and does not guarantee the availability of benefits under this plan. The third party administrator is PacificSource Health Plans Tobacco use cessation program means a program recommended by a physician that follows the United States Public Health Services guidelines for tobacco use cessation. Tobacco use cessation program includes education and medical treatment components designed to assist a person in ceasing the use of tobacco products. SingleSource Self-Insured 82 Unregistered domestic partner means an individual of the same-gender who is joined in a domestic partnership with the subscriber and meets the following criteria: • Is at least 18 years of age; • Not related to the policyholder by blood closer than would bar marriage in Oregon or the state where they have permanent residence and are domiciled; • Shares jointly the same permanent residence with the policyholder for at least six months immediately preceding the date of application to enroll and intent to continue to do so indefinitely, • Has joint financial accounts with the policyholder and has agreed to be jointly responsible with the policyholder for each others' common welfare, including basic living expenses; • Has an exclusive domestic partnership with the policyholder and has no other domestic partner; • Does not have a legally binding marriage nor has had another domestic partner within the previous six months; • Was mentally competent to consent to contract when the domestic partnership began and remains mentally competent. Urgent care treatment facility means a healthcare facility whose primary purpose is the provision of immediate, short-term medical care for minor, but urgent, medical conditions. Waiting period means the period of time before coverage becomes effective for a member who is otherwise eligible to enroll in the plan. Women's healthcare provider means an obstetrician, gynecologist, physician assistant or nurse practitioner specializing in women's health, or certified nurse midwife practicing within the applicable scope of practice. RIGHTS OF PLAN MEMBERS MEDICAID AND CHIP STATE CONTACT INFORMATION If you or your children are eligible for Medicaid or CHIP and you are eligible for health coverage from your Plan Sponsor, your State may have a premium assistance program that can help pay for coverage. These States use funds from their Medicaid or CHIP programs to help people who are eligible for these programs, but also have access to health insurance through their Plan Sponsor. If you or your children are not eligible for Medicaid or CHIP, you will not be eligible for these premium assistance programs. If you or your dependents are already enrolled in Medicaid or CHIP and you live in a State listed below, you can contact your State Medicaid or CHIP office to find out if premium assistance is available. If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, you can contact your State Medicaid or CHIP office or dial 1-877-KIDS NOW or www.insurekidsnow.gov to find out how to apply. If you qualify, you can ask the State if it has a program that might help you pay the premiums for a Plan Sponsor-sponsored plan. Once it is determined that you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your Plan Sponsor plan, your Plan Sponsor must permit you to enroll in your Plan Sponsor plan if you are not already enrolled. This is called a'special enrollment' opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have questions about enrolling in your Plan Sponsor plan, you can contact the Department of Labor electronically at www.askebsa.dol.gov or by calling toll-free 1-866-444-EBSA (3272). If you live in one of the following States, you may be eligible for assistance paying your Plan Sponsor health plan premiums. The following list of States is current as of July 31, 2012. You should contact your State for further information on eligibility - SingleSource Self-Insured 83 ALABAMA - Medicaid COLORADO - Medicaid Website: http://www.medicaid.alabama.gov Medicaid Website: http://w".colorado.gov/ Phone: 1-855-692-5447 Medicaid Phone (In state): 1-800-866-3513 ALASKA - Medicaid Medicaid Phone (Out of state): 1-800-221-3943 Website: http://health. hss.state.ak.us/dpa/programs/medicaid/ Phone (Outside of Anchorage): 1-888-318-8890 Phone (Anchorage): 907-269-6529 ARIZONA - CHIP FLORIDA - Medicaid Website: http://www.azahcccs.gov/applicants Website: https://www.flmedicaidtplrecovery.com/ Phone (Outside of Maricopa County): 1-877-764-5437 Phone: 1-877=357-3268 Phone (Maricopa County): 602-417-5437 GEORGIA - Medicaid Website: http://dch.georgia.gov/ Click on Programs, then Medicaid, then Health Insurance Premium Payment (HIPP) Phone: 1-800-869-1150 IDAHO - Medicaid and CHIP MONTANA - Medicaid Medicaid Website: Website: www.accesstohealthinsurance.idaho.gov http://medicaidprovider.hhs.mt.gov/clientpages/ Medicaid Phone: 1-800-926-2588 clientindex.shtml CHIP Website: www.medicaid.idaho.gov Phone: 1-800-694-3084 CHIP Phone: 1-800-926-2588 INDIANA - Medicaid NEBRASKA - Medicaid Website: http://www.in.gov/fssa Website: www.ACCESSNebraska.ne.gov Phone: 1-800-889-9949 Phone: 1-800-383-4278 IOWA - Medicaid NEVADA - Medicaid Website: www.dhs.state.ia.us/hipp/ Medicaid Website: http://dwss.nv.gov/ Phone: 1-888-346-9562 Medicaid Phone: 1-800-992-0900 KANSAS - Medicaid Website: http://www.kdheks.gov/hcf/ Phone: 1-800-792-4884 KENTUCKY - Medicaid NEW HAMPSHIRE - Medicaid Website: http://chfs.ky.gov/dms/default.htm Website: Phone: 1-800-635-2570 http:/Avww.dhhs.nh.gov/oii/documents/hippapp.pdf Phone: 603-271-5218 LOUISIANA - Medicaid NEW JERSEY - Medicaid and CHIP Website: http://www.lahipp.dhh.louisiana.gov Medicaid Website: Phone: 1-888-695-2447 http:/twww.state.nj.us/humanservices/ MAINE - Medicaid dmahs/clients/medicaid/ Website: http://www.maine.gov/dhhs/ofi/public- Medicaid Phone: 1-800-356-1561 assistancelndex.html CHIP Website: Phone: 1-800-977-6740 http://www.njfamilycare.org/index.html TTY 1-800-977-6741 CHIP Phone: 1-800-701-0710 MASSACHUSETTS - Medicaid and CHIP NEW YORK - Medicaid Website: http://www.mass.gov/MassHealth Website: Phone: 1-800-462-1120 http://www.nyhealth.gov/health-care/medicaid/ Phone: 1-800-541-2831 MINNESOTA - Medicaid NORTH CAROLINA -Medicaid Website: http://www.dhs.state.mn.us/ Website: http://www.ncdhhs.gov/dma Click on Health Care, then Medical Assistance Phone: 919-855-4100 Phone: 1-800-657-3629 MISSOURI - Medicaid NORTH DAKOTA -Medicaid Website: Website: http:/Avww.dss.mo.gov/mhd/participants/pages/hipp.ht http://www.nd.gov/dhs/services/medicalserv/medirai m d/ Phone: 573-751-2005 Phone: 1-800-755-2604 OKLAHOMA -Medicaid and CHIP UTAH - Medicaid and CHIP Website: http://www.insureoklahoma.org Website: http://health.utah.gov/uoD Phone: 1-888-365-3742 Phone: 1-866-435-7414 OREGON - Medicaid and CHIP VERMONT- Medicaid Website: http:/hvww.oregonhealthykids.gov Website: http://www.greenmountaincare.org/ http://www.hijossaludablesoregon.gov Phone: 1-800-250-8427 Phone: 1-877-314-5678 SingleSource Self-Insured 84 PENNSYLVANIA - Medicaid VIRGINIA - Medicaid and CHIP Website: http://ewiw.dpw.state.pa.us/hipp Medicaid Website: http://www.dmas.virginia.gov/rcp- Phone: 1-800-692-7462 HIPP.htm Medicaid Phone: 1-800-432-5924 CHIP Website: http://www,famis.org/ CHIP Phone: 1-866-873-2647 RHODE ISLAND - Medicaid WASHINGTON - Medicaid Website: www.ohhs.ri.gov Website: Phone: 401-462-5300 http://hrsa.dshs.wa.gov/premiumpymt/Apply.shtm Phone: 1-800-562-3022 ext. 15473 SOUTH CAROLINA - Medicaid WEST VIRGINIA - Medicaid Website: http:/Avww.scdhhs.gov Website: www.dhhr.wv.gov/bms/ Phone: 1-888-549-0820 Phone: 1-877-598-5820, HMS Third PartLiabilit SOUTH DAKOTA - Medicaid WISCONSIN - Medicaid Website: http://dss.sd.gov Website: http://www.badgercareplus.org/pubs/p- Phone: 1-888-828-0059 10095.h Phone: 1- 800-362-3002 TEXAS - Medicaid WYOMING - Medicaid Website: https://www.gethipptexas.com/ Website: Phone: 1-800-440-0493 http://health.wyo.gov/healthcarefin/equalitycare Phone: 307-777-7531 To see if any more States have added a premium assistance program since July 31, 2012, or for more information on special enrollment rights, you can contact either: U.S. Department of Labor U.S. Department of Health & Human Services Employee Benefits Security Administration Centers for Medicare & Medicaid Services www.dol.gov/ebsa www.cros.hhs.gov 1-866-444-EBSA (3272) 1-877-267-2323, Ext. 61565 OMB Control Number 1210-0137 (expires 09/30/2013) SingleSource Self-Insured 85 This page left intentionally blank. SingleSource Self-Insured 86 PLAN INFORMATION Name and Address of the Plan Sponsor City of Ashland 20 East Main Ashland, OR 97520 (541) 488-6002 Name and Address of the Designated Agent for Service of Legal Process Dave Kanner, City Administrator 20 East Main Ashland, OR 97520 541-488-6002 Name and Address of the Third Party Administrator PacificSource Health Plans PO Box 7068 Springfield, OR 97475-0068 (888) 977-9299 Fax: (541) 684-5264 cs@pacificsource.com Internal Revenue Service and Plan Identification Number The corporate tax identification number assigned by the Internal Revenue Service is 936002117. Benefit Year The benefit year is the 12-month period of time beginning January 1 and ending December 31. Method of Funding Benefits Health benefits are self-insured from the general assets and or trust funds of the Plan Sponsor and are not guaranteed under an insurance policy or contract. The Plan Sponsor may purchase excess risk insurance coverage which is intended to reimburse the Plan Sponsor for certain losses incurred and paid under the plan by the Plan Sponsor. Such excess risk coverage, if any, is not part of the plan. The cost of the plan is paid with contributions by the Plan Sponsor and participating employees. The Plan Sponsor determines the amount of contributions to the plan, based on estimates of claims and administration costs. Payments out of the plan to health care providers on behalf of the covered person will be based on the provisions of the plan. SingleSource Self-Insured 87 This page left intentionally blank. SingleSource Self-Insured 88 SIGNATURE PAGE The effective date of the Preferred 90+200 VAR GF 0812 is July 1, 2013. It is agreed by the City of Ashland that the provisions of this document are correct and will be the basis for the administration of the Preferred 90+200 VAR GF 0812. Dated this day of B Title SingleSource Self-Insured 89 This page left intentionally blank. SingleSource Self-Insured 90 Your Right to Appeal You have the right to appeal an adverse benefit determination under these claims procedures. If you choose to appeal the plan's adverse benefit determination, your appeal will be governed by rules that assure you a full and fair review. If you are denied benefits based upon the plan's finding that you are/were ineligible for benefits, the denial- of benefits gives you the opportunity to appeal the plan's decision. If the plan decides to reduce or terminate benefits for your previously-approved course of treatment, the plan's decision will be treated as an adverse benefit determination, and the plan will provide you reasonable advance notice of the reduction or termination to allow you to appeal the plan's decision before the benefit reduction or termination takes place. If you decide to appeal the plan's decision, you must follow the riles for appealing a plan's decision. No lawsuit can be instituted until the claimant has exhausted the plan's internal and external claims review and appeals procedures. No lawsuit can be instituted more than one year after the date of the notice to the claimant that a claim appeal has been denied. Appealing an Initial Claim Determination - You must submit a written request to the plan within 180 days of receipt of an adverse benefit determination in order to initiate an appeal. An oral request for review is acceptable for urgent care claims and may be made by calling the Third Party Administrator at (888) 977-9299 and asking the plan to register your oral appeal. When you appeal an adverse benefit determination at levels 1 or II, the plan will provide a full and fair review which will include the following features: • : You will have the opportunity to submit written comments, documents, records, and other information related to the claim. • At your request (and free of charge), you will be provided with reasonable access to (and copies of) all documents, records, and other information relevant to your claim for benefits. Included in this category are any documents, records or other information in your claim file, whether or not these materials were relied upon by the plan in making its adverse benefit determination. You also have the right to review documentation showing that the plan followed its own internal processes for ensuring appropriate decision making. • The review of your claim will take into account all comments, documents and other information without regard to whether such information was submitted or considered in the initial benefit determination. • Any appeal of an adverse benefit determination will not give deference to the initial decision on your claim, and the review will be conducted by a designated plan representative who did not make the original determination and does not report to the plan representative who made the original determination. • In deciding an appeal of any adverse benefit determination that is based on a medical judgment (including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or medically appropriate), the designated plan representative will consult with a health care professional who has appropriate 1 training and experience in the particular field of medicine involved in the medical judgment. This health care professional will not be the same professional who was originally consulted in connection with the adverse determination neither will this health care professional report to the health care professional who was consulted in connection with the adverse determination. The plan will uphold the findings of the independent review in responding to the appeal. • The plan will identify medical or vocation experts whose advice was obtained on behalf of the plan in connection with an adverse benefit determination of your claim, whether or not that advice was relied upon in making the benefit determination. You must first follow this appeal process before taking any outside legal action. After you submit the claim for appeal, the plan provides for three levels of appeal, as follows. LEVEL I: The Third Party Administrator will evaluate all the information and make a decision. The Third Party Administrator will advise you in writing of its decision and the reasons for it. Some appeals may take longer if there are delays beyond the Plan's control. In those cases, an additional 15 days may be needed to resolve your appeal. The Claims Administrator will give you or the authorized representative a notice of delay that includes a specific reason for the delay. Written or electronic notice of the Claims Administrator's decision will be provided to you within: • 30 days of receipt of a appeal for a Post-Service Claim; • . 15 days of receipt of a appeal for a Pre-Service Claim or a Concurrent Care Claim; or • 72 hours of receipt of an appeal for an Urgent Care Claim. Except for appeals concerning Urgent Care Claims, if the Plan Participant is not satisfied with the outcome at Level I, the Plan Participant may request a review at Level II: • If regarding a Post-Service Claim, 60 days of the date you are notified of the outcome of the Level I review; • If regarding a Pre-Service Claim, 30 days of the date you are notified of the outcome of the Level 1 review; or • If regarding a Concurrent Care Claim, 15 days of the date you are notified of the outcome of the Level I review. If regarding an Urgent Care Claim, the plan's expedited appeal process for urgent care claims will allow you to request (orally or in writing) an expedited appeal, after which, all necessary information, including the plan's benefit determination on review, will be transmitted between the plan and you by telephone, fax, or other expeditious method. You will be notified (in writing or electronically) of the benefit determination as soon as possible, but no later than 72 hours after the plan receives the request for review of the prior benefit determination. For urgent care claims you may also be able to request a level III independent external review take place at the same time as you pursue the plan's internal appeal process. LEVEL II: 2 The Appeal will be reviewed by the Plan Administrator. The Plan Administrator may elect to delegate this review to the Third Party Administrator or an independent external review organization chosen by the Plan Administrator. You should provide the Plan Administrator with any additional information not previously reviewed to support the Appeal. Such additional information should be provided with the Appeal or as soon after the Appeal is submitted as possible, but in no event later than 20 days after submission of the Appeal. You may also provide a written statement to the Plan Administrator explaining why the Appeal should be resolved as you have requested. The written statement must be provided no later than 20 days after submission of the Appeal at Level II. Any written statement you provide will be reviewed and considered by the Plan Administrator in deciding the Appeal. If the Plan Administrator has elected to delegate review of the Appeal to an independent review organization, the written statement will be provided to the independent review organization for review and consideration. In the event you fail to timely provide additional information or a written statement in support of the Appeal, the additional information or written statement will not be considered. The Plan Administrator's decision regarding the Appeal shall be based on (1) the findings and conclusions of a delegated external review, if any, and (2) the express terms and conditions of the Plan Document. Written or electronic notice of the Plan Administrator's decision will be provided,to the Plan Participant within: • 30 days of receipt of a Appeal for a Post Service Claim; • 15 days of receipt of a Appeal for a Pre-Service Claim or a Concurrent Care Claim; or If you are not satisfied with the outcome of the Level III review, you may request a third and final external review through Level III. LEVEL III: This Plan has an external review program that meets the requirements of ORS 743.857(1)(a)(b) or (c), ORS 743.859(1)(2) or (3), and ORS 743.861(1). External reviews will be provided through an independent review organization that is under contract with the Oregon Director of the Department of Consumer and Business Services. You may include additional written information which will be included with the documents provided to the independent review organization. You may, by written application to the Plan, obtain review by an independent review organization for a Level III Appeal on one or more of the following: • Whether a course or plan of treatment is medically necessary and/or appropriate. • Whether a course or plan of treatment is experimental or, investigational as defined by the Plan document. • Whether the health care setting or level of care is appropriate. • Whether medical standards of care demonstrate the effectiveness of the proposed course of treatment. 3 • Whether a course or plan of treatment that you are undergoing is an active course of treatment for purposes of continuity of care under ORS 743.854. You must apply in writing for external review of an adverse decision by the Plan not later than 180 days after receipt of the Plan's final written decision following Step 1 and 11 of this Appeal procedure. You are eligible for external review only if the following requirements have been met: • You must have signed a waiver granting the independent review organization access to your medical records. • You must have exhausted all review rights through Level I and Level 11 of the Plan's Appeal procedure before submitting a request for a Level III external review. The Plan may waive the requirement of compliance with the internal Appeal procedure and have a dispute referred directly to external review upon your written consent. • You must provide accurate and complete information to the independent review organization in a timely manner. The Plan agrees to be bound by the results of the Level III external review. This decision is also binding on you, except to the extent other remedies are available under state or federal law. In certain instances, you may be able to request an expedited review process, such as when the timeframe for completion of the internal appeals process would seriously jeopardize the life or health of the claimant or their ability to regain maximum function or if the final adverse benefit determination concerns an admission, availability of care, continued stay or health care service for which the claimant received emergency services, but has not been discharged from a facility. Denial of Claim on Appeal - if your appealed claim is denied, the plan will send you written or electronic notification that explains why your appealed claim was denied and shall include the following: • A statement of the specific reason(s) for the decision; • Reference(s) to the specific plan provision(s) on which the determination is based; • A statement disclosing an internal rule, guideline, protocol or similar criterion relied on in making the adverse determination or a statement that such information will be provided free of charge upon request; • If the determination involves scientific or clinical judgment, the plan will disclose either (a) an explanation of the scientific or clinical judgment applying the terms of the plan to the claimant's medical circumstances or (b) a statement that such explanation will be provided at no charge upon request; and • A statement indicating your right to receive, upon request (and free of charge), reasonable access to (and copies of) all documents, records, and other information relevant to the determination. Included in this category are any documents, records or other information in your claim file, whether or not those materials were relied upon by the plan in making its adverse determination. 4 2014 City of Ashland Self-Insured Plan Renewal Benefit Changes for ACA compliance EligibilitV Changes: Foster Children who are placed with a member by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction are eligible under their foster parent's health plan under the ACA. Same gender non-registered Domestic Partners should be updated in the Plan Document to include same gender marriage if they are married a in a State that recognizes same sex marriages, even if residence is in a State that does not recognize same sex marriage. Vision Plan: Pediatric Vision Coverage is an essential health benefit (EHB). While large employers are not required to cover pediatric vision, the benefit must comply with the related ACA provisions for members under age 19 years old. (Pediatric) Eve Exams • No dollar maximum • One eye exam per calendar year (Pediatric) Vision Hardware • No dollar maximum (replaced with a prior authorization requirement for frames over $175). • No charge for one pair of non-collection glasses (frames and/or lenses) per calendar year. • Collection glasses (lenses and frames) are not covered. Collection lenses or frames refer to brand name hardware when comparable non-brand/non-collection glasses are available. • Elective contact lenses are in lieu of frames/lenses, up to the following limits per calendar year: ➢ Standard (one pair) 1-contact lens per eye (total 2 lenses); or ➢ Monthly (six-month supply) - 6 lenses per eye (total 12 lenses); or ➢ Bi-weekly (three-month supply) - 6 lenses per eye (total 12 lenses); or ➢ Dailies (one-month supply) - 30 lenses per eye (total 60 lenses). c CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Update from Housing and Human Services Commission regarding the Development of the Strategic Social Services Grant review FROM: Linda Reid, Housing Program Specialist, Community Development Department, reidl@ashland.or.us SUMMARY The Housing and Human Services Commission is requesting that the Council allow the commission to undertake the drafting of a strategic plan for the use of social service grant funds. The strategic plan will address several criteria formerly identified by the Council for analysis as well as recommend goals and outcomes for future grant funded projects based on priorities identified by the Council and the Budget Committee. A draft of the plan is scheduled to be completed and brought to the Council and Budget Committee for consideration in August/September of 2014. BACKGROUND AND POLICY IMPLICATIONS: At their regular meeting on December 17, 2013, the City Council approved a motion to "request the new Housing and Human Services Commission to conduct an analysis of the current social service grant program, focusing on whether grants are targeted to the right areas and with the appropriate allocations, then have them bring those findings to a discussion with the Budget Committee." To address the Council's request, the Housing and Human Services Commission evaluated the following questions: • What is the history and background of Ashland's social service grant program? o What are the goals of the social service grant program? o Are the program goals being met? • What is the application process? o Is the process of soliciting and screening grant applications efficient and effective? o Is the process of awarding grants efficient and effective? o Could the award and reporting processes be improved? o Should the Housing and Human Services Committee have a role in the process? o What are the follow-up reporting requirements on outcomes? o What is the assessment of the processes by prior grantees? • How is the Ashland community benefitting from the grant awards? o Is this the most efficient and effective use of the funding? o Is the funding leveraging additional investments in the community? o Are there efficiencies to be gained by awarding fewer organizations larger grants? Page 1 of 2 9r, CITY OF -AS H LAN D • Should the criteria for award target particular community needs? o How would any funding criteria or priority needs be determined overtime? o Should there be funding restrictions? The Housing and Human Services Commission reviewed and discussed the charge at their regular meeting on January 23, 2014. At that time, the Commission decided that the most efficient way to analyze the existing social service grant program and address the specific questions identified above was to develop a strategic plan for the use of the social service grant funds. The plan would evaluate the questions/specific areas of interest identified above and use those answers to inform the analysis and propose a plan which would set forth objective criteria for making grants and identify measurable outcomes for funded activities. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: The Housing and Human Services Commission recommends that the Council direct the Commission to develop a strategic plan for the use of social service grant funds to bring back to the council for consideration SUGGESTED MOTION: I move to direct the Housing and Human Services Commission to undertake the development of a strategic plan for the use of social service grant funds to bring back to the council for consideration. ATTACHMENTS: Strategic Plan Proposal Strategic Plan Timeline Page 2 of 2 SOCIAL SERVICES GRANT PROPOSAL TO THE COUNCIL The Housing and Human Services Commission will; • Work with staff to develop program specific Strategic Plan with measurable goals and objectives to inform the decision making process in awarding social service grant funds. • Work with Council to define broad priorities for the use of the funds and measurable goals. goal/outcome identification • Review the previously drafted strategic plan for the use of Social Service Funds to see if there are priorities identified which are still relevant. Review ofhistory and purpose ofprogram • Engage current and former grantees, social service organizations, and the public in reviewing the current process, elicit suggestions on potential changes to the process and to gain feedback on potential goals. Application process evaluation/recommendation • Examine the makeup of past grants; evaluate the range of services previously funded, with regard to met and unmet needs, include an analysis of the ratio of funding to local agencies to regional agencies._Application process evaluation • Utilize the social service inventory and gaps analysis and other pertinent demographic reports to inform goals and objectives. Identify priority needs/quantify goals/outcomes • Draft a short (4-5 page) strategic plan to be reviewed periodically and revised as needed. The strategic plan will include: i. A brief history/background of the Social Service Grant program, an evaluation of the current application process including feedback from past, current, and potential applicants. ii. An outline of the goals of the social service grant program including identified "priority needs/uses" iii. Quantified target goal outcomes over an identified period of time iv. A methodology for quantifying and measuring goal outcomes • Provide a recommendation regarding the existing process of granting Social Service Grant funds. a cog c. 'v wm» z - .waq maon ..m vise r. c > , „ ?Rropgser! Time/nreaElements Rer! 04/Ip/I , Steps TasA Date Deliverable Gather data and compile a Gaps ] Analysis Febmary/April 2014 Matrix of services vs. needs Data presentation-brainstorm any other Brainstorming Agenda item at informational needs/gaps among commission 2 the H&I IS meeting Febmary-14 members Draft a Recommendation for Staff to prepare a recommendation based on Council (and budget discussion from commission members of what 3 committee?) April-14 proposal will be presented to council. Brief review and approval of draft Bring to H&HS for review and recommendation to council at the March 4 approval April-14 Meeting if there is time. Present a recommnndation to the council to work with the H&HS Commission to draft a strategic $ plan June 2 or 16, 2014 Recommendation/Timeline 'Strategte an Timeline Generate a list of invitees, draft an email-flyer, send it out to invitees. Feedback from H&HS agenda or subcommittee community outreach meeting participants on; item: plan community outreach social service process, grant fund amounts, meeting, what will it look like, reporting requirements, grant fund uses, and 1 what do we want to learn? June-14 priority needs for the community Hold a meeting to gain feedback July 24, 2014 or an from SS Grant recipients and earlier date in July (I Community Members at regular maybe out of the omce 2 H&HS meeting time/date 7/19-08/02) Draft an outline/preliminary document/Review at regular 3 meeting July/August 2014 Draft document Study Session with Find out if the priorities proposed by the SS council/budget committee? to go grant recipients and community memboers are over findings, review draft amenable to them and if they have anything that 4 document and discuss priorities? August-14 they would like to add. Revise document with suggestions from Council/budget committee, incorporate priorities $ suggested by Council August/September 14 Final version of the strategic plan H&HS comm review and recommendations of draft 6 document August/September 14 Dra0 an ordinance to adopt the strategic plan for the use of 7 Social Service Grant Funds September-14 Bring draft document and ordinance with recommendations from advisory commission to September/October $ council for review and adoption 2014 Complete revisions and bring forward for first reading/second October/November 9 reading? 2014 Document is adopted-30 days November/December 10 later is enacted 2014 Completed adopted Strategic Plan CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting Second Reading of an Ordinance Amending AMC Chapter 2.26, Firewise Commission to Ashland Wildfire Mitigation Commission FROM: Chris Chambers, Forest Division Chief, Ashland Fire & Rescue, chamberc@ashland.or.us SUMMARY This is an ordinance to create a Wildfire Mitigation Commission in place of the Firewise Commission. The initial vision for the Firewise Commission's role has not been as central as originally conceived; while at the same time a new federal program called Fire Adapted Communities has provided Ashland with an opportunity to engage in a comprehensive and long-term program of work to address a wider range of wildfire preparedness issues. By changing the charge and name of the Firewise Commission, the City will address a larger suite of issues related to wildfire protection in Ashland. BACKGROUND AND POLICY IMPLICATIONS: The proposed ordinance expands the scope of the current Firewise Commission and retains the current seated commissioners. The Firewise Commission was created in 2010 to assist in implementation of the Firewise Communities program. Work on the ground has been largely driven by staff, with 12 neighborhoods and nearly 900 individual homes now with a heightened state of wildfire safety. The Firewise Commission's role thus became less urgent over time, while the need for the Firewise Communities approach strengthened. The Fire Adapted Communities program requires significant investments of time for planning and engaging citizens and stakeholders during policy development. Where Firewise is a recognition based program that we will retain and expand, Fire Adapted Communities is a program of work over time that successively lowers a community's risk to wildfire on many fronts. The ordinance, while mentioning the Fire Adapted Communities program, does not limit the commission's purview to a particular federal program, realizing that programs come and go over time while the wildfire problem is relatively constant at the local level. The new commission will be guiding community input on issues related to wildfire protection and prevention, and making recommendations to Council as issues mature to the policy level. FISCAL IMPLICATIONS: There is no fiscal impact to the City. STAFF RECOMMENDATION AND REQUEST~E ACTION: Staff recommends Council approve first rea ' g of this ordinance and move to second reading. SUGGESTED MOTION: I move approval of second reading by title only of an ordinance titled "An Ordinance Amending AMC Chapter 2.26, Firewise Commission to Ashland Wildfire Mitigation Commission" Page I of 2 Pl, CITY OF ASHLAND ATTACHMENTS: Wildfire Mitigation Commission ordinance. Page 2 of 2 ~r, ORDINANCE NO. AN ORDINANCE AMENDING AMC CHAPTER 2.26 FIREWISE COMMISSION TO ASHLAND WILDFIRE MITIGATION COMMISSION Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through and additions are bold underlined. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, Ashland Fire & Rescue desires to create a commission to develop, implement, and maintain a community wildfire mitigation strategy. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.26 of the Ashland Municipal Code is hereby amended to read as follows: FIREWISE ASHLAND WILDFIRE MITIGATION COMMISSION Section 2.26.010 Purpose The re rise Ashland Wildfire Mitigation Commission shall provide advice and guidanee support to the Council and eCity departments and education to the community on wildfire issues and plans for mitigation actionwithin the community. Specifically, the Commission will function as the entity to foster the efforts of the City of Ashland to adopt and achieve the goals set forth in the Fire Adapted Communities program City' support and maintain the certification through Firm,ise Communities, USA. Section 2.26.020 Established Membership The wise Ashland Wildfire Mitigation Commission is established and shall consist of no less than seven (7) voting members, and certain non-voting ex officio members consisting of a member of the City Council, a representative of Ashland Fire and Rescue, and additional staff as needed. The Fire Department st& f designee shall serve as the primary staff liaison and as Secretary of the Commission. Voting members will be community members at large, and shall be designated by the Mayor and confirmed by the Council. Community members will be encouraged, but not limited to, neighbor-hood r-epy-esentatives based on FireWiSe Communities neighbor-hoods. Section 2.26.030 Powers and Duties Generally Ordinance No. _ Page 1 of 2 The powers, duties and responsibilities of the ; ire Ashland Wildfire Mitigation Commission shall be as follows: A. To develop, coordinate and promote wildfire mitigation aetivities based on Firewise a comprehensive community wildfire strategy; B. To initiate, and enhance and promote full eitizew community participation and responsibility in reducing wildfire risk; C. To submit recommendations to City Council and eCity departments regarding the community's wildfire safety mitigation strategy; and D. To implement and renew Firewise Communities USA eer-tifiention on an annual basis; and 1, To promote and support a relationship with surrounding areas and jurisdictions that pertain to or benefit wildfire safety in Ashland. public knowledge and neeeptanee of th Firewise Communities program and homeowner- par-fleipatien in assit-i- SECTION 2. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 3. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code, and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered or re-lettered, provided however, that any Whereas clauses and boilerplate provisions (i.e., Sections [No 3-4] need not be codified, and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 2014, and duly PASSED and ADOPTED this day of 2014. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of , 2014. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. _ Page 2 of 2 CITY OF ASHLAND Council Communication June 3, 2014, Business Meeting First Reading of two separate ordinances amending the City of Ashland Comprehensive Plan, Comprehensive Plan Maps, Transportation System Plan, and Street Standards to adopt the Normal Neighborhood Plan FROM: Brandon Goldman, Senior Planner, Community Development Department, Brandon. Goldman@ashland.or. us SUMMARY These two ordinances amend the Comprehensive Plan and Transportation System Plan to implement the Normal Neighborhood Plan. A Normal Neighborhood District Land Use code amendment is presented for discussion only. It will be reviewed as part of a separate legislative action in the upcoming months and is intended to be included in the Unified Land Use Ordinance. Given the interrelated nature of the Normal Neighborhood Plan elements this Draft Land Use Ordinance, this language is presented for Council consideration, discussion, and direction at the May 6`h hearing. The Normal Neighborhood Plan will guide future development associated with approximately 94 acres of unincorporated lands within Ashland's Urban Growth Boundary. It attempts to implement existing City land use policies that promote the construction of diverse housing types and a neighborhood network of connected streets, walkways and cycling facilities, while requiring integration of, and protection for, the neighborhood's natural areas, consisting of wetlands, creeks and associated floodplains and riparian areas. BACKGROUND In March of 2011 the City Council directed the Community Development Department to apply for a Transportation and Growth Management (TGM) grant to prepare a neighborhood master plan for the 94 acre Normal Neighborhood area. Having received the grant award in May 2012, an extensive public involvement process was undertaken to develop the plan. Public engagement included 32 public meetings where the viewpoints of a variety of participants including the general public, property owners and neighboring residents affected the plan's evolution. On December 2, 2013, the City Council received an update on draft plan which had been discussed by the Transportation Commission and Planning Commission at their September, October, and November meetings. The final Normal Neighborhood Plan and draft implementing ordinances were initially presented to the Planning Commission at a study session on February 25, 2014. The Planning Commission held a public hearing on the final plan on March 11 th, and completed its deliberations on April 8, 2014. The Normal Neighborhood Plan is comprised of Normal Neighborhood Plan Framework document, official Normal Neighborhood Plan maps, and the proposed Normal Neighborhood District land use Page 1 of3 1r, CITY OF ASHLAND ordinance amendments (Ch. 18-3.13). Collectively these documents create the underlying physical form and regulatory structure for the area's future development. Development of this area is expected to occur in an incremental way, as individual parcels propose annexation for specific housing developments. The adoption of a Neighborhood Plan for the area will ultimately provide a general framework for evaluating future annexation requests to ensure that in addition to housing the coordination of streets, pedestrian connections, utilities, storm water management and open space is considered as part of development proposals. A detailed description of the proposed Normal Neighborhood plan's land use, transportation, and open space, frameworks is provided in the attached Planning Action Staff Report (PL-2013-01858). Council held a public hearing on this item on May 6, May 20, and May 29, 2014. NEXT STEPS Upon approval of first reading of the Normal Neighborhood Plan's implementing ordinances, the final plan and ordinances, as amended, will be presented to the City Council for second reading. The Normal Neighborhood District Land Use Ordinance will be presented for legislative approval as part of the Unified Land Use Ordinance hearing process and will be forwarded to the City Council following the Planning Commission's public hearing and deliberation. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REOUESTED ACTION: Staff believes the revisions that have been made over the last 15 months have refined and improved the neighborhood plan, and are largely consistent with the original goals and objectives for the planning project. Staff recommends Council approve first reading of the ordinance amending the Comprehensive Plan, Comprehensive Plan Map, and adopting of the Normal Neighborhood Plan Framework as a technical supporting document of the Comprehensive Plan. Staff recommends Council approve first reading of the ordinance amending the Transportation System Plan maps and Street Standards handbook to incorporate the Normal Neighborhood Street Network as proposed. The Future Traffic Analysis conducted as part of this planning effort found that all existing intersections in vicinity of the project are expected to continue to function within operational standards at full build out of the plan area. Further the report confirms that each of the planned street intersections with East Main Street are expected to function within applicable mobility standards upon the improvement of East Main Street to meet City standards to include sidewalks and bike lanes. The proposed Normal Neighborhood District Land Use ordinance will be reviewed as part of the broader Unified Land Use Ordinance amendment process. However, given the interrelated nature of the Normal Neighborhood Plan elements, the City Council is asked to provide recommendations on this ordinance as part of tonight's hearing. Page 2 of 3 IVVJR CITY OF ASHLAND SUGGESTED MOTION(S): Individual motions are required to address each of the proposed ordinances separately: I move to approve the first reading by title only of an ordinance titled "An Ordinance amending the City of Ashland Comprehensive Plan to add a Normal Neighborhood Plan designation to Chapter II [Introduction and Definitions], Change the Comprehensive Plan Map designation for approximately 94 acres of land within the City of Ashland Urban Growth Boundary from Single Family Residential and Suburban Residential to the Normal Neighborhood Plan Designation, and adopt the Normal Neighborhood Plan Framework as a support document to the City of Ashland Comprehensive Plan," and move the ordinance on to second reading. I move to approve the first reading by title only of an ordinance titled "An Ordinance amending the Street Dedication Map, Planned Intersection and Roadway Improvement Map, and Planned Bikeway Network Map of the Ashland Transportation System Plan for the Normal Neighborhood Plan area, and amending Street Design Standards within the Street Standards Handbook to add a new Shared Street classification," and move the ordinance on to second reading. I move to recommend the Draft Land Use Ordinance for the Normal Neighborhood District be incorporated into the Draft Unified Land Use Ordinance (as amended) to be reviewed under a separate legislative action. ATTACHMENTS: Ordinance amending comprehensive plan Exhibit A to ordinance amending comprehensive plan Ordinance amending street dedication map Exhibit A to ordinance amending street dedication map Page 3 of 3 kepTrW, ORDINANCE NO. AN ORDINANCE AMENDING THE CITY OF ASHLAND COMPREHENSIVE PLAN TO ADD A NORMAL NEIGHBORHOOD PLAN DESIGNATION TO CHAPTER II [INTRODUCTION AND DEFINITIONS], CHANGE THE COMPREHENSIVE PLAN MAP DESIGNATION FOR APPROXIMATELY 94 ACRES OF LAND WITHIN THE CITY OF ASHLAND URBAN GROWTH BOUNDARY FROM SINGLE FAMILY RESIDENTIAL AND SUBURBAN RESIDENTIAL TO THE NORMAL NEIGHBORHOOD PLAN DESIGNATION, AND ADOPT THE NORMAL NEIGHBORHOOD PLAN FRAMEWORK AS A SUPPORT DOCUMENT TO THE CITY OF ASHLAND COMPREHENSIVE PLAN Annotated to show deletions and additions to the code sections being modified. Deletions are bold and additions are in bold underline. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the above referenced grant of power has been interpreted as affording all legislative powers home rule constitutional provisions reserved to Oregon Cities. City of Beaverton v. International Ass'n of Firefighters, Local 1660, Beaverton Shop 20 Or. App. 293; 531 P 2d 730, 734 (1975); and WHEREAS, the City of Ashland Planning Commission considered the above-referenced recommended amendments to the Ashland Comprehensive Plan at a duly advertised public hearing on March It, 2014 and subsequent public hearing continuance dates, and on April 8, 2014, following deliberations, recommended approval of the amendments by a vote of 6-0; and WHEREAS, the City Council of the City of Ashland conducted a duly advertised public hearing on the above-referenced amendments on May 6, May 20, and May 29, 2014; and WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and Page I of 3 WHEREAS, the City Council of the City of Ashland has determined that in order to protect and benefit the health, safety and welfare of existing and future residents of the City, it is necessary to amend the Ashland Comprehensive Plan in manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. The above recitations are true and correct and are incorporated herein by this reference. SECTION 2. The City of Ashland Comprehensive Plan, Chapter II, [INTRODUCTION AND DEFINITIONS] is hereby amended to add the following new Section [NORMAL NEIGHBORHOOD PLAN 2.04.171 and to adopt the Normal Neighborhood Plan Framework; as amended, as a supporting document to the City's Comprehensive Plan; former Section 2.04.17 is renumbered [PLAN REVIEW 2.04.181, to read as follows: PLAN REVIEW (2.04.17) NORMAL NEIGHBORHOOD PLAN (2.04.17) This is a residential area that promotes a variety of housing types including single family, attached, and multi family residential, with densities ranging from 5 to 15 units per acre. This area implements the Normal Neighborhood Plan Framework (2014) to accommodate future housing, neighborhood scaled business, create a system of greenwavs, protect and integrate existing stream corridors and natural wetlands, and enhance overall mobility by planning for a safe and connected network of streets and walking and bicycle routes. PLAN REVIEW (2.04.18) SECTION 3. The City of Ashland Comprehensive Plan Appendix entitled "Technical Reports and Supporting Documents" is attached hereto and made a part hereof as Exhibit A. SECTION 4. The document entitled "The City of Ashland Normal Neighborhood Plan Framework (2014)," attached hereto as Exhibit B, and made a part hereof by this reference is hereby added to the above-referenced Appendix to support Chapter II, [INTRODUCTION AND DEFINITIONS] of the Comprehensive Plan. SECTION 5. The officially adopted City of Ashland Comprehensive Plan Map, adopted and referenced in Ashland Comprehensive Plan Chapter II [PLAN MAP 2.03.04] is hereby amended to change the Comprehensive Plan map designation of approximately 94 acres of land inside the urban growth boundary from Single Family Residential and Suburban Residential, to the Normal Neighborhood Plan designation including designated Conservation Areas as reflected on the revised adopted Comprehensive Plan Map, attached hereto as Exhibit C, and made a part hereof by this reference. Page 2 of 3 SECTION 6. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 7. Codification. Provisions of this Ordinance shall be incorporated in the City Comprehensive Plan and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 1, 3-6 need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 2014, and duly PASSED and ADOPTED this day of 2014. Barbara M. Christensen, City Recorder SIGNED and APPROVED this day of , 2014. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 3 of 3 Exhibit A Appendix A: Technical Reports and Supporting Documents City of Ashland, Oregon Comprehensive Plan Periodically, the City may choose to conduct studies and prepare technical reports to adopt by reference within the Comprehensive Plan to make available for review by the general public. These studies and reports shall not serve the purpose of creating new city policy, but rather the information, data and findings contained within the documents may constitute part of the basis on which new policies may be formulated or existing policy amended. In addition, adopted studies and reports provide a source of information that may be used to assist the community in the evaluation of local land use decisions. Chapter II, Introduction and Definitions The following reports are adopted by reference as a supporting document to the Ashland Comprehensive Plan, Chapter Il, Introduction and Definitions. 1. Croman Mill Site Redevelopment Plan (2008) by Ordinance 3030 on August 17, 2010 2. Normal Neighborhood Plan Framework (2014) by Ordinance on .20141 Chapter IV, Environmental Resources The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter IV, Environmental Resources. 1. City of Ashland Local Wetland Inventory and Assessment and Riparian Corridor Inventory (2005/2007) by Ordinance 2999 on December 15, 2009. Chapter VII, Economy The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter VII, The Economy. 1. City of Ashland: Economic Opportunities Analysis (April 2007) by Ordinance 3030 on August 17, 2010 Chapter XII, Urbanization The following reports are adopted by reference as a support document to the Ashland Comprehensive Plan, Chapter XII, Urbanization. 1. 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C7 .c G u v a o 3 0~ z o .E ~ E o Z' x E Y o ~,oN, O 3 C y Y r e1°n W 3 U E~~ e Y v~ 'c a E E -O C -d n v -d O W .L u E c.0. v>, ~d u u: ~ L E p]° R c 4. ; 3 t^ o° v Y v E °.c c c E~ c. N ~e & E: ma. A c v E A o ~ L" LL '4 y v v m yo ~ ° u E V x r v c E 3 r c u ~ y ti "ro E E~ r° 3 v °1 a o m v~ ° ~ ~ c v v v c u y m ~ .c E~ d 3 V 4 C ,O b v L v ~ y L y 'y ~ C u L y n .c E a m` v t', t c a'u E 5> 00 E c a y m E 12 ~a E v y 'o v E -c Fa- [ 'o s ,o v m N p A V ro C7 ? ~ ~ ~ A c ~ E " w "vim '9 a ro z a -n Z m V1 v'> y a k 3 5 2 ro o -n N h vai 0 M CITY OF ASHLAND F alp i " 3tr~et Ashland / EiMq"N Middle € School Walker Elementary School i f m m 0 200 400 800 1,200 Feet , Normal Neighborhood Plan 11111111111 Comprehensive Plan Map Amendment Q Normal Neighborhood Plan ® Conservation Area 3/11/2014 CITY OF ASHLAND 'i r +ww s; it i k"z ti t Y - ~ w w Y S C sh n r _EMANSr, F" SChoo Walker me , a r ; ; 7 ! f it ':g Elementary T !School e ~ J i r 7 = r •u M • - t } J'A y y Normal Neighborhood Plan 0 200 400 800 Feet Land Use Designation Overlay Zones NN-01 - NN-03-C NN-02 ® Conservation Areas NN-03 3111/2014 CITY OF ASHLAND r 4 l Fas _!n Str ~ _ sh n J Mid, I @i Sc 00 _ r r I I ~ ~r r 1 r I, I ~W~Iker i~~. Elementary ~3 rSchool~ ~ , J I i II . ~ a ~ I l~r ~ VF F r • ~ .r I I Normal Neighborhood Plan 0 200 400 800 1,200 Feet Open Space Network - natural area/open space green streets - pocket park multi-use path 3/11/2014 CITY OF ASHLAND ail Ash a ,~:uay lraiiii Y x7 s... Y E scc 00 w j • ° f ■ • q~^ J, Shared Streets may be r-`^ fix 1 a r alternatively developed , '~ra~„ ■ n ; as alleys or multi use paths C ' An , ■ + q s s'• l t y TES ~ •31 W+._...Y /C.T. j} f4 Improved crossing will require an application for an at grade -A ■ /,y i railroad crossing be approved M1 Y El ntbi 4 { ~r 1 I I i Normal Neighborhood Plan 0 200 400 800 1,200 Feet Street Network Neighborhood Collector Alley' A Neighborhood Street - - - - Multi-Use Path auauaur Shared Street 3/11/2014 CITY OF ASHLAND a~°. r V b'• A g k' S ~Iw d , h ~I ' Elementary ~School~ a t, m .x Run Normal Neighborhood Plan 0 200 400 800 1,200 Feet Street Network - Green Streets i i i green streets ® conservation areas 3/11/14 CITY OF ASHLAND VA 74 €x 8 i x.,..~ +eE'P 1 g. 2 rr . ~ i 4 (1 i o.. Mid~jg ^ ~ f lAt _ 1 ~ r4S % ~~gi qV. 1 • t, t7 74 `41.1 Walker •~y ~ 1. = , oil Elem n'tary i 'C Y k. 4`y~ ; . { $ ,l qtr :r: ~ 1 Normal Neighborhood Plan 0 200 400 800 1,200 Feet Pedestrian and Bicycle Network I ' ' ' I ' ' ' I ' ' alley ■shared street streets with sidewalks multi-use path hN avenue with sidewalks & bikelanes • • • • central bike path 3/11/2014 CITY OF Exhibit C ASHLAND ~ ai MStre~t Ashland Middle School Walker Elementary School / j , vO m s m 0 200 400 800 1,200 Feet Normal Neighborhood Plan Comprehensive Plan Map Amendment M Normal Neighborhood Plan ® Conservation Area 3/11/2014 ORDINANCE NO. AN ORDINANCE AMENDING THE STREET DEDICATION MAP, PLANNED INTERSECTION AND ROADWAY IMPROVEMENT MAP, AND PLANNED BIKEWAY NETWORK MAP OF THE ASHLAND TRANSPORTATION SYSTEM PLAN FOR THE NORMAL NEIGHBORHOOD PLAN AREA, AND AMENDING STREET DESIGN STANDARDS WITHIN THE STREET STANDARDS HANDBOOK TO ADD A NEW SHARED STREET CLASSIFICATION. Annotated to show deletions and additions to the code sections being modified. Deletions are bold hned4hFotFgh and additions are in bold underline. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the Citv The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the above referenced grant of power has been interpreted as affording all legislative powers home rule constitutional provisions reserved to Oregon Cities. City of Beaverton v. International Ass'n of Firefighters, Local 1660, Beaverton Shop 20 Or. App. 293; 531 P 2d 730, 734 (1975); and WHEREAS, the City of Ashland Planning Commission considered the above-referenced amendments to the Transportation System Plan at a duly advertised public hearing on March 11, 2014 and subsequent public hearing continuance dates, and on April 8, 2014, following deliberations, recommended approval of the amendments by a vote of 6-0; and WHEREAS, the City Council of the City of Ashland conducted a duly advertised public hearing on the above-referenced amendments on May 6, 20, and 29, 2014; and WHEREAS, the City Council of the City of Ashland, following the close of the public hearing and record, deliberated and conducted first and second readings approving adoption of the Ordinance in accordance with Article 10 of the Ashland City Charter; and WHEREAS, the Ashland Comprehensive Plan includes goals and policies intended to work towards creating an integrated land use and transportation system to address the Transportation Planning Rule (TPR) Oregon Administrative Rule 660-012-0000 directive for coordinated land use and transportation plans should ensure that the planned transportation system supports a pattern of travel and land use in urban areas that will avoid the air pollution, traffic and livability Page I of 3 problems faced by other large urban areas of the country through measures designed to increase transportation choices and make more efficient use of the existing transportation system."; and WHEREAS, the Street Dedication Map, Planned Intersection and Roadway Improvement Map and Planned Bikeway Network Map are adopted official maps for long range planning purposes, and are periodically amended to identify streets and pedestrian and bicycle pats that will be needed in the future to connect the street network and provide access to undeveloped areas within the Urban Growth Boundary (UGB); and WHEREAS, the Ashland Comprehensive Plan includes the following policies addressing street dedications: 1) Development of a modified grid street pattern shall be encouraged for connecting new and existing neighborhoods during subdivisions, partitions, and through the use of the Street Dedication map. (10.09.02.32); and 2) Street dedications shall be required as a condition of land development. A future street dedication map shall be adopted and implemented as part of the Land Use Ordinance. (10.09.02.34).; and WHEREAS, the City Council of the City of Ashland has determined that in order protect and benefit the health, safety and welfare of existing and future residents, and to address changes in existing conditions and projected needs related to land use and transportation patterns, it is necessary to amend the Ashland Comprehensive Plan in the manner proposed, that an adequate factual base exists for the amendments, the amendments are consistent with the comprehensive plan and that such amendments are fully supported by the record of this proceeding. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. The above recitations are true and correct and are incorporated herein by this reference. SECTION 2. The officially adopted City of Ashland Street Dedication Map, referenced in Ashland as Figure 10-1 in the Ashland Transportation System Plan is hereby amended to include the Normal Neighborhood Plan Street Network attached hereto as Exhibit A. SECTION 4. The City of Ashland Planned Bikeway Network Map, referenced in the Ashland Transportation System Plan as Figure 8-1. is hereby amended to include the Normal Neighborhood Plan Pedestrian and Bicycle Network attached hereto as Exhibit B. SECTION 5. The City of Ashland Planned Intersection and Roadway Improvement Map, referenced in the Ashland Transportation System Plan as Figure 10-3. is hereby amended to include East Main Street as a Planned Avenue from Walker Avenue to Ashland St. SECTION 6. The Ashland Street Standards Handbook, Street Design Standards is hereby amended to include a new classification of "Shared Street" as attached hereto as Exhibit C. Page 2 of 3 SECTION 7. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 8. Codification. Provisions of this Ordinance shall be incorporated in the City Comprehensive Plan and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 1, 3-6 need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 2014, and duly PASSED and ADOPTED this day of 12014. Barbara M. Christensen, City Recorder SIGNED and APPROVED this _ day of , 2014. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney Page 3 of 3 CITY OF ExhibitA ASHLAND -7,a . 1 r~ j t T yK t f a s Ash Gt- , onrop ~~onrno an4 ! 00 ~Mmn c ❑ i;, o0 0 0 ~Y J Shared Streets maybe ° f < Y _ g alternatively developed ' •y 'g1p6,i ~A 0 n , i~ • - ` as alleys or multi-use paths O _ ❑ I~I air c r L Improved crossing will require t: an application for an at grade ~r '?-"..i'~ ❑ } p ; j railroad crossing be approved ° ! D q D mM 9 ° a , }5th 0 n 'art y'C Z / n { YCC 1. ~E z o ry, ' 444."^."' ~ l •p cW- ell. lCD 00 L HL-ANpST p,(j C.; P~• j `R •zzP ' - - _ '~a?s ASµt~pi 'i. Normal Neighborhood Plan 0 200 400 800 1,200 Feet Street Network ' ' ' I ' 'III Neighborhood Collector Alley Neighborhood Street - - - - Multi-Use Path O~IOIIOIrI Shared Street 3111/2014 C I T Y OF Exhibit B ASHLAND y A I 1 k _14 ~ r a (W Sfr .3 si~3; r,~ _ t c~ , y a/n st/ f IUD r ~ , . I'le ~ 'S art ;P~~~~ • of E I ~x CA -s Id RAW 4 s ~ ' tti ,spy 11 ti WON ~ a . •~•i f s. !School • o v' :t iJ •~~t °~1 I+~ r;,1/- "~i • .[e • 1 ~j t _ I ,w 6 Normal Neighborhood Plan 0 200 400 800 1,200 Feet Pedestrian and Bicycle Network ' I I I' I I I' I I I unions alley moswimo shared street streets with sidewalks multi-use path _ r= avenue with sidewalks & bikelanes *000 central bike path 3/11/2014 Exhibit C Shared Street Provides access to residential in an area in which right-of-way is constrained by natural features, topography or historically significant structures. The constrained right-of-way prevents typical bicycle and pedestrian facilities such as sidewalks and bicycle lanes. Therefore, the entire width of the street is collectively shared by pedestrians, bicycles, and autos. The design of the street should emphasize a slower speed environment and provide clear physical and visual indications the space is shared across modes. Street Function: Provide vehicular, pedestrian, and bicycle neighborhood circulation and access to individual residential and commercial properties designed to encourage socializing with neighbors, outdoor play for children, and creating comfortable spaces for walking and biking. Connectivity: Connects to all types of streets. Average Daily Traffic: 1,500 or less motor vehicle trips per day Managed Speed: Motor vehicle travel speeds should be below 15 mph Right-of-Way Width: 25' Pavement width: 18' minimum, maintaining full fire truck access and minimum turning paths at all changes in alignment and intersections. Motor Vehicle Travel Lanes: Minimum 12' clear width. Bike Lanes: Not applicable, bicyclists can share the travel lane and easily negotiate these low use areas Parking: Parking and loading areas may be provided within the right of way with careful consideration to ensure parked vehicles do not obstruct pedestrian, bicycles, or emergency vehicle access. Parkrow: Not applicable Sidewalks: Not applicable, pedestrians can share the travel lane and easily negotiate these low use areas. Refuge areas are to be provided within the right of way to allow pedestrians to step out of the travel lane when necessary. Shared Street Cross Section J ~ "`?'4b irk i Y 1 fil 18, 25'