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2014-1020 Study Session PACKET
CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, October 20, 2014 Siskiyou Room, 51 Winburn Way 5: 30 p.m. Study Session 1. Public Input (15 minutes maximum) 2. Look Ahead review 3. Discussion regarding Bee City USA Proposal 4. Review and discussion of self-insurance for health benefits 5. Discussion of wall graphics 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 I). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014, CHARTER CABLE WILL BROADCAST MEETINGS ON CHANNEL 180 OR 181. 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D :F 7 ~ s N ~ n O~ N n~ to .d OO o 0X z~ ma N :t O N W 1 O s N O 1 CITY OF -ASHLAND Council Communication October 20, 2014, Study Session Discussion Regarding Bee City USA Proposal FROM: Dave Kanner, city administrator, dave.kanner@ashland.or.us SUMMARY At its July 15, 2014, business meeting, citizens approached the Council with a request that the City of Ashland apply to become a Bee City USA. Bee City USA is a relatively new program, similar to the Tree City USA program, in which participating cities take various steps to recognize, protect and celebrate bees and other pollinators. The Council requested that this item be placed on a study session agenda. BACKGROUND AND POLICY IMPLICATIONS: In June of 2012, the city of Asheville, North Carolina, decided to celebrate pollinators of all varieties and become the inaugural Bee City USA. In August of 2014, Talent, Oregon, followed suit and became the second Bee City USA. At the July 15, 2014, City Council meeting, Kristina Lefever and Laura Ferguson requested that Council consider applying for Ashland to become a Bee City USA. Council requested that this be placed on a Study Session agenda for discussion and consideration. In order to become a Bee City USA, Ashland would be required to: 1. Fill out and submit the Bee City USA application. 2. Establish a Bee City USA committee or subcommittee devoted to pollinator conservation 3. Approve a Bee City USA resolution 4. Hold an annual celebration of being a Bee City USA with a proclamation and public awareness programs 5. Publicly acknowledge the Bee City USA designation with signage in town and web links on the City of Ashland website 6. Annually submit a renewal application with a report on Bee City related activities FISCAL IMPLICATIONS: Costs will include staff time to run the required Bee City USA committee or subcommittee, as well as costs to create and hang the required signage. It's possible other costs will be required, depending upon how Council would like the public awareness portion of the requirement to be handled. STAFF RECOMMENDATION AND REQUESTED ACTION: N/A SUGGESTED MOTION: N/A This item is for discussion purposes only. Page 1 of 2 Fr, CITY OF -ASHLAND ATTACHMENTS: FA Qs regarding becoming a Bee Cites Bee City USA Application Bee City USA Resolution Bee City USA Proclamation Page 2 of 2 I~ t ~wll Follow us. (httP(M0AsdA-111bfmiebon -11 ~1ts~° Search y News & Events U) Frequently Asked Questions Become A Bee City USA Ubecome-a-bee-city- usa.html) What is Bee City USA? F ~.r Pollinators are vital to humans and our planet. One in every three bites Pollinator Week of food we eat is courtesy of insect pollination-- 85% of flowering (/pollinator-week.html) plants depend on pollinators for reproduction. About (/about.html) Bee City USA designation is both an honor and a responsibility. The FAQ's Ufags.html) Hummingbird moth. Hnot,,. J,~FWS Bee City USA program endorses a set of standards, defined in a Create Custom resolution, for creating sustainable pollinator habitats. Cities and towns Pollinator Plant List across America are invited to adopt these standards and become a Bee City USA designee. Ucreate-custom- F ollinator-plant- st.html) Why Do Pollinators Need Our Help? Resources U.S. honey bee populations are declining at a stunning annual rate of 30% or more. While honey Uresources.html) bees may be more appreciated for their pollination services because we enjoy the honey and wax they produce and they are transportable to orchards and fields, the thousands of native bee species-- Our Supporters (lour- bumble, mining, mason, sweat, alkali, cuckoo, orchard, carder, leafcutter, carpenter, long-horned, supporters.htmt) squash, sunflower, digger, etc.--also have been declining at alarming rates, and in many cases, going Education extinct. (/education.html) Contact Us (/contact- The threat to native bees increases the more specialized they are due to their tongue length and the us.html) nest building materials they require. Size also matters: bumble bees are bigger and can fly a mile or Press Releases Upress more from their nests to forage, but sweat bees are smaller and usually fly no more than 200 yards - releases.html) from their nest. Attracting Native Pollinators, produced by the Xerces Society (http://www.xerces.org/), is an excellent resource on this topic. Other pollinators include butterflies, moths, beetles, hummingbirds, and bats. In the old days, bears and skunks, and the occasional famine caused by droughts, were beekeepers' greatest worries. Unfortunately, the threats have grown more insidious. Honey bees and other pollinator populations started declining in the 1950s with the introduction of pesticides, some of which have since been banned. Later, in the 1980s, the arrival of parasitic mites in the United States killed most feral honey bee colonies and further reduced honeybee populations. Then, in late 2006, North American beekeepers witnessed a mysterious phenomenon dubbed "Colony Collapse Disorder." Adult bees abruptly vanished from hundreds of colonies, deserting the queen and her brood. Today, it is generally believed that honey bee decline is caused by a complex combination of factors that progressively weaken their individual and collective immune systems, including diseases, parasites, mono-cropping, and exposure to systemic pesticides that permeate the entire plant being treated. Marla Spivak's Ted Talk on You Tube succi (http://www.ted.com/talks/marla_Spivak_why_bees_are_disappearing.html)nctly explains the situation. What Is Pollinator-Friendly Habitat (/uploads/1/2/8/9/12899788/pollinatorfriendlypractices.pdf)? The ideal pollinator-friendly habitat: • Provides diverse and abundant pollinator food sources (nectar and pollen from blooming plants) that bloom in succession. • Provides water for drinking, nest-building and cooling, diluting stored honey, and butterfly .puddling.,, { k t l''' 1~► ! Is pesticide-free or has pesticide use carried out with least ill effects on pollinators. Male eastern I iger Swallowtail on thistle. Photo. James Wilson • Is comprised of mostly, if not all, native species of grasses, perennials, shrubs and trees. (Many native pollinators prefer or depend on the native plants with which they co-evolved for millions of years.) • Sources plants from nurseries that do not treat seeds with neonicotinoid pesticides, which permeate the entire plant and remain active for as much as years. (Some big box stores label their plants "bee-friendly" even though they were grown from seeds treated with "neonics.") • Provides for safe and humane removal of bees when required. • Provides undisturbed spaces (leaf piles, unmowed fields, fallen trees) for nesting and overwintering for native pollinators. Municipalities can raise pollinator awareness by designating pollinator zones in public spaces with explanatory signage. How Do I Identify Pollinators? (http://www.beecityusa.org/types-of-pollinators.htmi) There are about 200,000 species of animals in the world that provide pollination services. However the most prolific are native bees and honey bees. The US Forest Service has a Pollinator of the Month website (http://www.fs.fed.us/wildflowers/pollinators/pollinator-of-the-month/index.shtm1) and the USDA has a basic introduction to how to distinguish pollinators from other insects (http://www.ars.usda.gov/Main/docs.htm?docid=11414.). What About The Danger of Stings? According to the North American Pollinator Protection Campaign (NAPPC) in their "No Fear of Stings!" brochure, "Some people may have an allergic reaction (even some who do not know they are allergic to stings). A very small proportion of the adult population (3%) and children (about 0.5%) are allergic to bee stings and are at risk of possible systemic reactions including anaphylactic shock. If someone experiences nausea, wheezing, or difficulty breathing following a sting, or if they are stung multiple times, they should seek immediate medical care. This is rare, but is an early systemic symptom of anaphylactic shock. You are more at risk of being struck by lightning (about 700 fatalities per year) than dying from a bee sting. For example, in the U.S. population, only 40 people out of 310 million people die from stings in a typical year. Many of these incidents are actually from wasp or ant stings rather than native bees or honey bees. Ground-nesting yellow jacket wasps (Vespula species) are defensive around their populous nests." To order copies of this excellent brochure produced by the Garden Taskforce of the North American Pollinator Protection Campaign (NAPPC), go to www.polinator.org/brochures.htm (http://www.polinator.org/brochures.htm) or download a copy here (/uploads/1 /2/8/9/12899788/nappc.nofear.brochfinal.pdf). Bee City USA urges urban beekeepers to take every precaution to avert honey bee contact with neighbors. See "North Carolina State Beekeeper Association's Best Practices for Urban Beekeepers (/uploads/1/2/8/9/12899788/ncsba_best_practices_for_urban_beekeepers.pdf)" for guidelines. Is There A Model Beekeeping Ordinance? While having a beekeeping ordinance is not required for being a Bee City USA community, we encourage responsible beekeeping policies. A search (at www.municode.com (http://www.municode.com)) through the more than 1,000 bee-related city ordinances around the country reveals a wide assortment of regulations, conditions and guidelines for urban beekeepers. These range from quite progressive and pro-beekeeping to outright prohibitions. As the importance of bees and the value of beekeeping becomes better publicized and understood, more and more cities are working to write ordinances that permit and promote responsible beekeeping. That is, beekeeping done on a scale and in a fashion that is safe, considerate of others and appropriate to areas of greater population density. Madison, Wisconsin, (http://www.cityofmadison.com/dpced/bi/obtaining-a-city-of-madison-beekeeping-license/108/) has an extremely well drafted city ordinance developed in cooperation between city officials and the local beekeeping community. It addresses hive barriers and setbacks that create safe flight patterns in dense neighborhoods. It is worth a look if your city lacks an ordinance or has one that would benefit from an update. Please notify webmaster at beeecityusa@gmail.com if you find broken links or other website issues. Follow us! (http(t#V6pae 4-6b(mdebaa C-)t Search V News S Events U) Become A Bee City USA(9) Become A Bee City USA (/become-a-bee-city- Help us build a movement to turn the tide for pollinators across America. Asheville became the usa.html) inaugural Bee City USA community in June 2012, and Talent, Oregon, Pollinator Week (/uploads/1/2/8/9/12899788/talent_certificate.pdf)was designated the second community in August (/pollinator-week.html) 2014. When we receive your signed Application (below) complete with attachments, we will add your About (/about.htmll community's name to the Bee City USA website, and send you the artwork to produce your own signs to proudly announce the commitment your municipality has made to sustain pollinators, and the larger FAQ's Ufaqs.html) Create Custom Pollinator Plant List 'I (Icreate-custom- Pi ollinator-plant- st.htmD Resources Uresources.html) Our Supporters (lour- supporters.html) Education (/education.html) ti . Contact Us Ucontact- us.htmp Press Releases Upress- + I releases.htmU a t n Asheville Councilman Cecil Bothwell (left) leads Pollinator Parade during August 18, 2012 launch of Bee City USA at Asheville City Market. Photo: Greg Starks environment. Benefits of Being a Bee City USA Community When city leaders complete the application process to become a full-fledged affiliate of Bee City USA, they: • extend the municipality's credibility to local grassroots pollinator conservation efforts, • institutionalize the municipality's commitment beyond any one elected official's or staff member's term of service, and • open doors to widespread collaboration for establishing and maintaining healthy pollinator habitat within the municipality's boundaries. By being a Bee City USA community, city leaders can improve their city or town's environment, eating habits, and economy: Help to ensure the survival of vital animal species crucial to our planet's complex food web. • Raise community awareness of how our food grows and improve local food production through expanded pollination. More than 150 food crops in the United States depend on pollinators, including blueberries, apples, oranges, squash, tomatoes, and almonds. • Improve local plant nursery markets by increasing demand for native, pollinator friendly plants. • Raise community awareness of the dangers of non-native invasive plants to the local ecosystem. • Raise community awareness of more natural ways to deal with home and garden pest problems than toxic chemical pesticides. • Raise community awareness of the local environment's seasonality as understanding grows about the pollinators' reliance on blooming plants and trees. • By encouraging urban beekeeping, increase micro and small business opportunities. Newly discovered pride in local food products, such as artisanal honey and other honey bee products, creates new business opportunities. Honey is absolutely unique to the nearby flowers from which the bees gather nectar. Its taste and color vary dramatically as a result. Furthermore, as the community of beekeepers grows, the market for beekeeping supplies grows. Here's How Cities 8r Towns May Apply (Note: All documents are supplied below.) 1. Review Bee City USA's Application. 2. Establish a Bee City USA committee or subcommittee devoted to pollinator conservation. 3. Develop your Bee City USA Resolution following the template provided. 4. Submit an Initial Application for Bee City USA designation. 5. Adopt the Bee City USA Resolution and email a copy of the signed Resolution to beecityusa@gmail.com (mailto:beecityusa@gmail.com). Once designated: 1. Annually celebrate being a Bee City USA designee with a Proclamation and public awareness activities. 2. Publicly acknowledge your commitment through signage and web links. 3. Following the Renewal Application form, annually report your activities to Bee City USA to renew your designation. Application Documents: Resolution Template (/uploads/1/2/8/9/12899788/resolution_template_4- 14.pdf), (/uploads/1/2/8/9/12899788/initial_application.pdf)Resolution Template in Word, (/uploads/1/2/8/9/12899788/resolution_template _4-14-word_doc.doc) Initial Application Form, (/uploads/1/2/8/9/12899788/initial_application_4-14.pdf) Initial Application Form in Word (/uploads/1/2/8/9/12899788/initial_application _4-14-word_doc.docx), Annual (/uploads/1/2/8/9/12899788/renewal_application _4-14.pdf)Renewal Application Form (/uploads/1/2/8/9/12899788/renewal_application_4-14.pdf), Annual Renewal Application Form in Word (/uploads/1/2/8/9/12899788/renewal_application_4-14-word_doc.docx), Sample Proclamation (/uploads/1/2/8/9/12899788/sample_bee_city_usa_proclamation_1-14.pdf), Sample Proclamation in Word (/uploads/1/2/8/9/12899788/sample_bee_city_usa_proclamation_1-14.docx) Would your town or city like to become a Bee City USA community? Name* First Last Email Comment BeecityUcSA INITIAL APPLICATION Please email this completed application with requested attachments to beecityusa@gmail.com with APPLICATION in the subject line. As (Title-Mayor or other city official) of (City/town and State), I herewith make application for this community's designation as Bee City USA having met the Bee City USA standards noted below, and recognizing that this application must be renewed annually to maintain Bee City USA designation. STANDARD 1: Establish a Bee City USA Commission, Board, Subcommittee, or Responsible City Department and their Representative (i.e. Liaison to Bee City USA) • Name of responsible entity: • Name of representative, phone, and email: • Date of establishment of board or subcommittee: • List or attach member names: • List scheduled meeting dates: STANDARD 2: Develop Bee City USA Resolution Following Template Provided by Bee City USA Please attach resolution to be adopted and provide date resolution is scheduled for consideration by municipality's governing body: [Date to be considered] STANDARD 3: Agree to Publicly Acknowledge Your Bee City USA Designation as Outlined in the Bee City USA Resolution, Within One Year of the Date Entered Below. STANDARD 4: Agree to Publicly Celebrate Your Bee City USA Designation Annually as Outlined in the Bee City USA Resolution, Within One Year of the Date Entered Below. STANDARD 5: Agree to Re-apply for Bee City USA Designation and Summarize Annual Activities to Raise Awareness Of and Sustain Pollinators as Outlined in the Bee City USA Resolution, Within One Year of the Date Entered Below. Mayor or equivalent: (Liaison) Person Completing This Form: Name: Name: Title: Title: Address: Address: City: City: State: Zip: State: Zip: Phone: Phone: Email: Email: Signature/Date: Signature/Date: Bee City USA initial Application, Page 1 of 2 Please send this document in PDF format to beecityusana,gmail.com. Upon a favorable review of your application and after receipt of an electronic copy of your adopted Bee City USA resolution (template provided), we will promptly add your municipality to the list of designated communities on our website, and send you a Bee City USA community certificate and artwork for you to produce your Bee City USA street sign(s). Certification (To be completed by Bee City USA) Congratulations! Bee City USA is pleased to advise you that we received your application and have concluded that you have met the standards for designation as a Bee City USA community through the calendar year. With your help, we are making the world safer for pollinators, one city at a time. If we take care of the pollinators, they will take care of us. Bee City USA Initial Application, Page 2 of 2 RESOLUTION NO. RESOLUTION DESIGNATING [city/town], [state] A BEE CITY USA WHEREAS, the goal of BEE CITY USA is to promote healthy, sustainable habitats and communities for bees and other pollinators; and WHEREAS, thanks to the tremendous diversity of wild native bees, along with the honey bees that were brought here from Europe in the 1600s, we have very diverse dietary choices rich in fruits, nuts and vegetables: "One in every three bites of food we eat is courtesy of insect pollination. Even our meat and milk trace back to insects that pollinate the alfalfa and other feed for beef cattle and cows " (Mace Vaughan, Pollinator Program Director for the Xerces Society for Invertebrate Conservation); and WHEREAS, bees and other pollinators around the globe have experienced dramatic declines due to a combination of habitat loss, use of pesticides, and the spread of pests and diseases, with grave implications for the future health of flora and fauna; and WHEREAS, cities and their residents have the opportunity to support bees and other pollinators on both public and private land; and WHEREAS, supporting pollinators fosters environmental awareness and sustainability, and increases interactions among community stewards such as commercial and backyard beekeepers, farmers, children, educators, Master Naturalists, Master Gardeners, plant nurseries, municipalities, neighborhoods, and garden suppliers and clubs; and WHEREAS, the economic benefits of (native and honey) bee-friendliness are: • Healthy ecosystems--insect pollinators are required for pollination and reproduction of about 85% of flowering plants globally, plants that: 1) are vital for clean air and water; 2) provide food, fiber and shelter for people and wildlife; and 3) support the very insects that pollinate our crops and form the basis of food webs. • Increased vegetable and fruit crop yields due to bee pollination. • Increased habitat for natural enemies of crop pests and therefore reduced need for and costs associated with pesticides. • Increased demand for pollinator-friendly plant materials from local nurseries and growers. • Income earned by beekeepers and others through the sale of bee products, beekeeping equipment and supplies, and hive rentals for pollination; and, heightened prestige and premium asking prices for place- based honey, which enhances the visibility and reputation of its community of origin; and WHEREAS, [city/town] should be a BEE CITY USA affiliate because: • XXXX • XXXX • XXXX WHEREAS, ideal pollinator-friendly habitat: • Provides diverse and abundant nectar and pollen from plants blooming in succession. • Provides clean water for drinking, nest-building, cooling, diluting stored honey, and butterfly puddling. • Is pesticide-free or has pesticide use carried out with least ill effects on pollinators. • Is comprised of mostly, if not all, native species of annual and perennial wildflowers, shrubs, trees, and grasses because many native pollinators prefer or depend on the native plants with which they co- evolved. • Includes, where possible, designated pollinator zones in public spaces with signage to educate the public and build awareness. Bee City USA Resolution Template-4/14 (Revised with assistance from the Xerces Society, February 2013.) Page t of 2 • Provides for safe and humane removal of bees when required. • Provides undisturbed spaces (leaf and brush piles, un-mowed fields or field margins, fallen trees and other dead wood) for nesting and overwintering for native pollinators; and WHEREAS, in order to enhance understanding among municipal staff and the public about the vital role that pollinators play and what each of us can do to sustain them, the [City/Town] of [name of city/town] agrees to meet the following standards required of all BEE CITY USA affiliates: 1) Establish/maintain a subcommittee of an appropriate municipal body or department, comprised of citizens and staffed by employees, charged with assembling and disseminating information on topics of pollinator-friendly habitat and policies to municipal departments, residents, businesses, and developers. For example, it might be a subcommittee of the Sustainability, Natural Resources, or Tree Commission. 2) Pass this BEE CITY USA resolution (which articulates these standards). 3) Publicly acknowledge the community's commitment by agreeing to a) install/maintain at least one authorized BEE CITY USA street sign in a prominent location, and b) create/maintain links on appropriate pages of the municipal website which includes the municipality's BEE CITY USA liaison(s), links to a PDF of this signed Resolution and the BEE CITY USA website, and summaries of the pollinator-friendly activities the municipality has undertaken or accomplished the previous year(s). 4) Commit to annually celebrate National Pollinator Week (third full week of June) or some other appropriate occasion through events, proclamations, and promotions that showcase the municipality's commitment to being a BEE CITY USA affiliate. 5) Commit to annually apply for renewal of the community's designation and submit a report of BEE CITY USA activities following the format provided. NOW, THEREFORE, BE IT RESOLVED BY THE [City/Town Council or appropriate body] THAT: The [City/Town Council or appropriate body] accepts the designation and commits to the standards of BEE CITY USA. Read, approved, and adopted this day of 20_ City/Town Clerk Mayor (or appropriate official) Approved as to form: City/Town Attorney Bee City USA Resolution Template-4/14 (Revised with assistance from the Xerces Society, February 2013.) Page 2 of 2 City/Town of PROCLAMATION WHEREAS, pollinator species such as thousands of species of bees are essential partners in producing much of our food supply; and WHEREAS, pollinator species provide significant environmental benefits that are necessary for maintaining healthy, biodiverse urban and suburban ecosystems; and WHEREAS, pollination plays a vital role for the trees and plants of our community, enhancing our quality of life, and creating recreational and economic development opportunities; and WHEREAS, for decades the City/Town of has managed urban landscapes and public lands that include many municipal parks and greenways, as well as wildlife habitats; and WHEREAS, the City/Town of provides recommendations to developers and residents regarding landscaping to promote wise conservation stewardship, including the protection of pollinators and maintenance of their habitats in urban and suburban environments; and NOW, THEREFORE, I, , Mayor of the City/Town of , do hereby proclaim the day/week of [month, day(s), year] as our municipality's observance of National Pollinator Week And, [City/Town/Community] as an affiliate of Bee City USA@ and urge all citizens to recognize this observance. In witness whereof, I have hereunto set my hand and caused the seal of [City/Town, State], to be affixed this _ _day of [month], [year]. NOTE: Please send a copy of your proclamation to Bee City USA at beecityusa(a)gmail.com This proclamation was inspired by the sample proclamation provided by the Pollinator Partnership for National Pollinator Week at http://pollinator.org/npw_action.htm. Bee it y UJ A 4,14 CITY OF ASHLAND Council Communication October 20, 2014, Study Session Review and discussion of self-insurance for health benefits FROM: Dave Kanner, City Administrator, dave.kanner@ashland.or.us Tina Gray, Human Resource Manager, grayt@ashland.or.us SUMMARY The City of Ashland became self-insured for health benefits effective July 1, 2013. At the renewal of our plan document in June of this year, Councilor Voisin requested a study session review of how self- insurance works. Self-insurance is not a change in health benefits per se; rather it is a change in the way the City pays for health benefits. Rather than paying an annual premium to an insurance company that establishes benefits, processes claims, purchases stop-loss insurance and establishes preferred provider networks, the City pays claims directly (through a contracted third party administrator), purchases stop-loss insurance and contracts directly with a preferred provider network. The City thus saves money by reducing administrative costs and eliminating profit. The City also gains the ability to tailor its plan to its group as deemed necessary or desirable. Staff will be joined at this study session by representatives of J.L. Jones & Associates, the City's insurance consultant. BACKGROUND AND POLICY IMPLICATIONS: For more than 25 years, Ashland was part of the City County Insurance Benefit Trust (CIS), as are many cities and counties in Oregon. When CIS premiums began increasing at rates the City considered unsustainable, the City left the trust and bid out its insurance needs, ultimately purchasing insurance through PacificSource. At the same time, the Council asked staff to explore the feasibility of converting to a self-funded benefits plan. After monitoring claims experience for two years, staff recommended and Council approved the conversion to a self-funded benefits plan. In a self-insurance plan, the self-insured entity establishes a separate account from which it directly pays medical, dental and vision claims, rather than paying a premium to a health insurance company that pays those claims. Claims management and payment is handled by a contracted third party administrator (TPA) and the self-insured entity purchases stop-loss insurance to protect the City from catastrophic individual claims as well as aggregate stop-loss to insulate the city from the risk of multiple large claims in one year. Stop-loss insurance is not required in order to be self-insured but it is considered a prudent practice. Locally, Ashland Community Hospital, the Ashland School District, the Oregon Shakespeare Festival and Jackson County managers are also self-insured. Staff worked with our health benefits consultant, J.L. Jones & Associates, to bid the City's TPA and reinsurance contracts and as a result of that process, contracted with PacificSource to be our TPA and Page 1 of 2 CITY OF -ASH LAN D reinsurer. Contracting with PacificSource also offered the advantage of a seamless transition in terms of claims management. All insurance, whether purchased or self-funded, is governed by a plan document. In the City's case, the PacificSource plan document became the City of Ashland Employee Health Benefits Plan Document. Some minor changes were made to this document for FY '15 as they relate to required coverages under the Affordable Care Act and to the denial of benefits appeal process. The City has established an Employee Health Benefit Advisory Committee (EHBAC) which acts as a self-directed employee oversight team with representatives from each employee group and bargaining unit. The EHBAC makes recommendations to management regarding any changes to the employee health plan. Because the City owns the plan, we can make changes based on utilization, rather than passively accepting changes dictated by health insurance companies for profit motives. Recommendations of the EHBAC are included annually in.a recommendation to the City Council when the Council adopts the plan document. Attached to this Council Communication is an FAQ that was distributed to all City employees in March 2013, when the City was considering the move to self-insured health benefits. FISCAL IMPLICATIONS: The City budgeted approximately $4 million for health benefits charges (in essence, health insurance premiums) in both FY '14 and FY '15. Had the City remained fully insured with PacificSource, our premium would have been $4.4 million in FY '14 and somewhere in the range of $5 million in FY '15, with similar increases continuing into the next budget cycle. The City experienced an unusually bad claims year in FY '14, which will likely lead to an increase in health benefits charges in the 2015-17 biennium, but even with this increase the City is saving money by being self-insured. STAFF RECOMMENDATION AND REQUESTED ACTION: N/A. This item is scheduled for information only. SUGGESTED MOTIONS: N/A ATTACHMENTS: Frequently asked questions, March 2013. Page 2 of 2 ~A, 1. In a nutshell, what does it mean to be self-insured? Being self-insured means that rather than paying an insurance company to pay medical, dental and vision claims, we pay the claims ourselves, using a third-party administrator to process the claims on our behalf. Rather than sending our money to an insurance company, the money stays in our budget and is controlled by the city. The insurance coverage itself does not change. The method we use to pay for claims changes. 2. What are the primary reasons the city is considering going from a fully-insured health plan with PacificSource to a self-insured program? The advantages of being self-insured are cost savings and control of the insurance plan. It's estimated that 17 to 20 cents of every dollar paid to a health insurance company goes to administration, overhead and profit. (The Affordable Care Act will limit that to 15 cents on the dollar.) A self-insured plan can offer the exact same insurance for lower administrative costs and no profit. It is simply less expensive to offer the exact same insurance through a self-insured plan than through an insurance company. We estimate the first-year savings under a self-insured plan at $200,000 to $600,000, but how much we save will depend on actual claims experience. Self-insurance also gives us far more control in terms of benefit design and cost containment than private insurance. An employee health benefits advisory committee would make recommendations about the mix and design of benefits rather than a private company (in another city) with no stake in the City of Ashland other than to profit from us. Right now, our insurance company could change the mix of services covered (and raise our premiums) and we would find ourselves in a take-it-or-leave-it position. We could seek a different insurance provider, but with few to choose from in the Rogue Valley, there would be no guarantees that we could get the same (or even a similar) plan at a reasonable cost. With self-insurance, we own the plan and we decide on changes to the coverages. 3. How would this change impact employees? It has a positive impact on employees by giving them a direct voice in the design of the health insurance plan and a direct influence over the fiscal integrity of the plan. Because the coverage itself would not change, at least until the employee advisory committee recommends changes, employees will not see a change in coverage. 4. When we changed from Blue Cross Blue Shield to Pacific Source, my prescription out-of-pocket costs went up or down because the two plans had different drug tiers. Will I have the same issue if the city self-insures? No, and this perfectly illustrates why it is better to be self-insured than to purchase insurance from an insurance company. When we purchase insurance, we are at the mercy of the insurance company in terms of coverages and plan structure. When we're self- insured, we will own the plan and no one can change it but us, based on the needs and desires of the City and its employees. S. Currently when I am referred to a new doctor, I check the list of PacificSource Preferred Providers to ensure my doctor is on the list. If the city goes to self- insurance what "list" will I need to refer to? We'll stick with the same list of preferred providers we currently use. 6. If for some reason I was denied coverage for a particular procedure, who would I appeal the denial to? An appeal would first go to the third party administrator. If an employee was not happy with the outcome of that appeal, it is typically appealed to the plan administrator, which in our case would be the city administrator. Some employees have expressed concern about sharing personal health information with the city administrator, so we can certainly look into having the option of appealing to a hired hearings officer (although I'm not sure why that's preferable to appealing to someone with a direct stake in the health and happiness of the employee). 7. I've heard people say that self-insurance gives the city more flexibility with our plan, but I'm not sure what that means, can you explain? As a self-insured entity, we have a virtually unlimited ability to change the mix of coverages, to add or delete benefits, to change the balance of co-pays and deductibles, etc., depending on our employees' needs and desires. Of course, none of this is done without a recommendation from the employee benefits advisory committee. When a small group such as ours purchases insurance, the insurance company will typically not tailor a plan to our specific needs and desires. It's on "off-the-shelf" product that we buy as is, although insurance companies will often lower their premiums in exchange for higher deductibles. 8. The City has had good claims experience over the past few years. What would happen if suddenly we had a year of bad experience? Our charges to the departments (which become our "premiums") and the employee premium contributions would increase, unless we have enough money in reserve to cover the increased cost. In that sense, self-insurance is no different than private insurance. If we have a bad year, the insurance company is going to raise our premiums and it's unlikely those premiums will ever go down. As a self-insured entity we will have to do an annual actuarial study to determine the value of full family, employee-plus-one, and single-person coverage. Those values will provide the basis for determining employee premium contributions. However, if we're self-insured, the employee health benefits advisory committee has the option of recommending a re-calibration of the plan to hold costs down. Too, the money that would be the insurance company's profit instead stays in a health benefits reserve fund. If the reserves become large enough during the good years, they can be used to keep charges down after the bad years. With private insurance, we have no reserve fund. Again, any money not used to pay claims becomes the insurance company's profit. In addition, the City will purchase individual and aggregate stop-loss insurance, which covers claims over and above a certain level. 9. If I'm out of state, or in Mexico, would my benefits be the same as if I were in Ashland? Whatever the plan currently provides for out-of-state or international coverage is what would be provided under a self-insured plan unless coverage is changed pursuant to a recommendation of the employee health benefits advisory committee. 10. Now when I have a question about my coverage or a claim, I contact PacificSource customer service. If we were self-insured, who would I call with questions? You would contact the third-party administrator, which may well turn out to be PacificSource customer service. It's interesting to note that in addition to providing insurance, PacificSource provides third-party administrator services to self-insured entities and the quote they have given us for that service is very favorable. Going with PacificSource would also allow for a very easy transition for claims administration. CITY OF ASHLAND Council Communication October 20, 2014, Study Session Discussion of Wall Graphics FROM: Bill Molnar, community development director, molnarbnashland.or.us SUMMARY This item relates to land use issues and city code compliance efforts regarding wall graphics. At the October 7, 2014, meeting, the Council requested that a discussion of this issue be placed on the next available study session agenda. This is an opportunity for Council to determine what action if any they would like to consider on the issue of wall graphics within the City. Unless approved as Public Art, wall graphics are prohibited by the Land Use Ordinance. BACKGROUND AND POLICY IMPLICATIONS: The topic of wall graphics recently came to light as part of the issuance of a City sign permit for a local downtown business, The Book Exchange, located at 90 N. Pioneer Street. Wall graphics are listed under Prohibited Signs in the City's Sign Regulations, AMC 18.96.020: 33. Wall Graphics. Including but not limited to any mosaic, mural or painting or graphic art technique or combination or grouping of mosaics, murals, or paintings or graphic art techniques applied, implanted or placed directly onto a wall or fence. Apparently a previous business occupying the space at 90 N. Pioneer painted the illustration on the front fagade of the building. As part of the approval of a new application for installation of a canvas awning sign for The Book Exchange, a condition accompanied the sign permit approval requiring that the wall graphics be removed. Prohibited signs are defined in the sign code as a public nuisance and are required to be removed or the nuisance abated. A change in business provides the opportunity to correct existing infractions of the city's sign code. Sign Code - History The City of Ashland first adopted a sign code in 1968. Wall graphics were not identified in the initial code. The first definition of wall graphics appeared 1982, when the sign code was revised and replaced in its entirety. It was at this time that wall graphics first were listed under the Prohibited Signs section and have remained since. From a review of the limited legislative history of Ashland's Sign Code, it is uncertain as to the objectives or purpose for prohibiting wall graphics. One might assume that there was concern over the potential impacts stemming from unregulated graphics and murals, applied at random to building facades and the disruption that may result to the otherwise more orderly pattern of business identifications envisioned through the sign code. Page 1 of 2 ~r, CITY OF -ASHLAND Public Art and Signs Over the years, the difference between what constitutes public art and what is a sign has been debated. In order to clarify this issue, an ordinance defining and regulating the process for establishing public art was adopted in 2010. The process for acquiring public art generally starts with advertising a request for proposal and the creation of a selection panel. The selection panel evaluates the proposals and makes a recommendation to the City's Public Arts Commission. The Public Arts Commission then forwards a recommendation to the Council for final selection. In cases where public art is proposed to be placed on private property, the City is required to receive authorization to use the private property for public art by securing permission through a written agreement or other legal instrument. With the inception of the public art process in 2010, the sign code was amended concurrently to explicitly state that "public art shall not be considered a sign." Oregon municipalities vary substantially regarding how wall graphics and murals are regulated within their jurisdictions (see attached matrix). A number of communities take an approach similar to Ashland's in which murals may be designated as public art by a city committee and are therefore exempted from the sign code. Other communities range from permitting murals without any review process, regulate them as wall signs subject standards within the sign code, or allowing private murals following a neighborhood involvement process and certification that that no compensation was provided for display of the mural on the private property. Enforcement of Wall Graphics Code compliance action directed toward the removal of wall graphics has occurred infrequently. There have been instances where the information accompanying the sign permit is unclear, incorrectly identifying the wall graphic as a wall sign and not describing that the graphic would be painted directly to the wall face. In a few circumstances and as long as the area of the wall graphic was within the parameters for total sign area set by the Land Use Ordinance, it appears the wall graphic was permitted to be retained. A notation would be placed in the file requiring the wall graphic to be removed when a change in business occurred or an application to replace signs was requested. FISCAL IMPLICATIONS: N/A STAFF RECOMMENDATION AND REQUESTED ACTION: Staff is not requesting action by Council at this time. The item is only for the purpose of discussion. SUGGESTED MOTION: N/A ATTACHMENTS: • Matrix of other cities Page 2 of 2 o o cn 3 ° Y 03 d a c o con o °q 4 a~ w 3 co en cl " on c i o a o Y w a can as -a m 'o 0 0 0 o a°'i a°i 3 sU~ coa a) cj o y 3 a a o°q 3 Y o o U C) al (1) C13 U ca > col m o ar C at ao c~d c~i N to c, `aa-0 C13 oc i C C P. c3 d -a cz: o o a' to bb cl :3 U to 4d 16 Y o o o cn o a? a o o ca 4 y a, co° a s 0 0 0 0 y o 3 w a w o 0 3 U j as C~3 0 0 0 0 0 0 cd ca -0 > a3 It -0 C) lu 0 0 o ai o o o a o c U o F~ o o a o° o a o F~ c T w o .o m o ca .a u u u a N u con o o [ a) O. 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