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ORDINANCE NO. 8516
AN ORDINANCE AMENDING CHAPTERS 3 AND 6 OF
TITLE VI OF THE PUEBLO MUNICIPAL CODE RELATING
TO EMPLOYMENT BENEFITS FOR SAME GENDER
DOMESTIC PARTNERS
WHEREAS, some households in the City of Pueblo are made up of persons who
are not related by marriage or blood relationships but who nevertheless share their lives
and resources and support one another in their daily living; and
WHEREAS, many couples who live together often have partnerships,
responsibilities and bonds similar to those of married couples and who nurture and care
for one another in sickness and in health; and
WHEREAS, members of the same gender domestic partnership community are
often discriminated against in ways including denial of services, housing, employment
and spousal benefits; and
WHEREAS, fairness in the workplace has been recognized as a fundamental
right protected under federal law and the City of Pueblo’s non-discrimination policy
underscores its commitment to tolerance, inclusiveness, equality and justice; and
WHEREAS, the City of Pueblo offers employment-based benefits to spouses of
employees, yet same gender couples are at a significant disadvantage because they
can not legally marry in Colorado and are unable to claim benefits for same gender
domestic partners; and
WHEREAS, the exclusion of same gender domestic partners as dependents
under an employer sponsored health insurance plan makes unmarried couples and their
children more likely to be uninsured; and
WHEREAS, more and more employers recognize this inequity and offer
employment benefits to same gender domestic partners; and
WHEREAS, employers who offer same gender domestic partnership benefits are
at a competitive advantage over those employers who do not offer such benefits as they
are able to offer a more comprehensive benefits package, as part of the overall
compensation, to recruit and retain skilled employees; and
WHEREAS, the City must remain a competitive employer in the market,
recruiting and retaining the best employees for City government positions by offering a
comprehensive compensation and benefits package; and
WHEREAS, it is therefore important for the City to offer same gender domestic
partner benefits to its employees in order to give the City a competitive edge in
attracting and retaining qualified individuals for employment with the City; and
WHEREAS, consistent with section 6-1-7 of Chapter 6, Title VI of the Pueblo
Municipal Code, as amended, the City is committed to providing equal employment
benefits in the service of the City regardless of sexual orientation; and
WHEREAS, the matters herein relate to local and municipal matters which are by
Article XX of the Colorado Constitution reserved to home rule cities. NOW,
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate
matter being deleted, underscoring indicates new matter being added)
SECTION 1.
Section 6-3-1 of Chapter 3, Title VI of the Pueblo Municipal Code, as amended,
is hereby amended to add new subsections 6-3-1 (20.1) and 6-3-1 (33.1) to read as
follows:
Sec. 6-3-1. Definitions.
For the interpretation of this Title and the civil service rules adopted by the
City Council, the following words and terms shall be construed as follows:
. . .
(20.1) means an employee and spouse or spousal
Family
equivalent and one (1) or more eligible children.
. . .
(33.1) and s mean
Same gender domestic partnerpousal equivalent
an adult of the same gender with whom an employee is in an exclusive
committed relationship, who is not related to the employee and who
shares basic living expenses with the intent for the relationship to last
indefinitely. A same gender domestic partner or spousal equivalent
cannot be related by blood to a degree which would prevent marriage in
Colorado and cannot be married to another person. An employee
claiming a same gender domestic partner or spousal equivalent
dependent shall file with the Human Resources Department an affidavit
of spousal equivalency on a form approved by the City Attorney.
. . . .
SECTION 2.
The first sentence of subsections (a) and (b) of Section 6-6-5 of Chapter 6, Title
VI of the Pueblo Municipal Code, as amended, are hereby amended to read as follows:
Sec. 6-6-5. Paid sick leave benefits.
(a) Paid sick leave to the extent the same is accrued and unused shall be
granted to permanent, full-time employees and probationary employees in case
of actual illness or disability occurring without negligence of the employee, or for
a maximum of three (3) work days in each consecutive twelve (12) months for an
, spousal equivalent
illness of the employee's spouse or child subject to
verification thereof.
. . .
(b) Paid sick leave to the extent the same is accrued and unused shall be
granted to police officers in the case of actual illness, injury or disability of the
police officer, occurring without negligence of the police officer; or for a maximum
of three (3) work days in each consecutive twelve (12) months for a life-
,
threatening illness or illness requiring hospitalization of the employee's spouse
spousal equivalent
or child, subject to verification thereof.
. . . .
SECTION 3.
Subsection (b) of Section 6-6-8 of Chapter 6, Title VI of the Pueblo Municipal
Code, as amended, is hereby amended to read as follows:
Sec. 6-6-8. Funeral leave.
. . .
(b) Benefits; Immediate Family. In the event of the death of a member of an
employee's immediate family, the employee shall be granted immediate funeral
leave from the date of death, plus five (5) consecutive work days thereafter for
Group A employees and seven (7) consecutive days for Group B employees.
spousal
Immediate family is defined as parent, brother, sister, spouse,
equivalent,
child, grandchild, grandparent, mother-in-law, father-in-law or other
relative residing in the same household with the employee.
. . . .
SECTION 4.
Subsection (b) of Section 6-6-13 of Chapter 6, Title VI of the Pueblo Municipal
Code, as amended, is hereby amended to read as follows:
Sec. 6-6-13. Maternity/paternity leave.
. . .
(b) Paternity leave shall not exceed three (3) weeks and shall commence at
the time of the birth of the child, unless otherwise agreed by the employee and
Leave shall be similarly granted when an
the appropriate supervisor.
employee’s spousal equivalent gives birth to a child.
. . . .
SECTION 5.
The City Council finds and determines that this Ordinance furthers the City of
Pueblo’s commitment to providing equal employment benefits in the service of the City
regardless of sexual orientation, in conformity with section 6-1-7 of Chapter 6, Title VI of
the Pueblo Municipal Code, as amended.
SECTION 6.
Consistent with the intent of this Ordinance and subject to applicable law, the
City Council directs and authorizes the City Manager to take actions necessary to
implement and ensure that benefits made available to an employee and a spouse are
extended to an employee and a spousal equivalent.
SECTION 7.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: September 24, 2012
BY: Leroy Garcia
COUNCIL PERSON
PASSED AND APPROVED: October 9, 2012
Background Paper for Proposed
ORDINANCE
DATE:September 24, 2012 AGENDA ITEM # R-1
DEPARTMENT:
City Council
Council Member Sandy Daff
Council Member Steve Nawrocki
TITLE:
AN ORDINANCE AMENDING CHAPTERS 3 AND 6 OF TITLE VI OF THE PUEBLO
MUNICIPAL CODE RELATING TO EMPLOYMENT BENEFITS FOR SAME GENDER
DOMESTIC PARTNERS
ISSUE:
Should City Council amend the Pueblo Municipal Code to provide employment benefits
for same gender domestic partners?
RECOMMENDATION:
Council Members Sandy Daff and Steve Nawrocki recommend approval.
BACKGROUND:
The enclosed Ordinance amends Title VI of the City’s Municipal Code by providing for
equal employment benefits to employees. Specifically, the Ordinance indicates that
existing benefits available to an employee with a spouse be provided to an employee
with a same gender domestic partner, or spousal equivalent. By way of example, the
benefits include sick leave, funeral leave, maternity or paternity leave, family and
medical leave, and health insurance benefits.
Currently, sections of the Code related to employment benefits do not recognize same
gender domestic partners, or spousal equivalents. However, Section 6-1-7 of the Code
specifies that “[n]o…employee shall be discriminated against or denied equal
employment opportunity in the service of the City on the basis of…sexual orientation....”
This Ordinance is consistent with, and in furtherance of, that policy statement.
Various local governments, institutions of higher education, private companies and the
State of Colorado have adopted similar law or policy addressing this issue and offering
employment benefits to same gender domestic partners. Many of those employers are
considered to be at a competitive advantage over those employers who do not offer
such benefits as they are able to offer a more comprehensive benefits package. As a
result, and to remain a competitive employer in the market, it is important for the City to
offer same gender domestic partner benefits to its employees.
Sections 1, 2, 3 and 4 of the Ordinance relate to matter being added to the Code related
to various employment benefits. However, many employment benefits available to City
employees are not codified and are contained in a collective bargaining agreement
(e.g., health insurance benefits). In order to ensure that equal benefits of this type are
available to same gender couples, Section 6 of the Ordinance directs and authorizes
the City Manager to ensure that benefits made available to an employee and a spouse
are extended to an employee and a spousal equivalent through the collective bargaining
process.
Please refer to the attached fact sheet for additional information.
FINANCIAL IMPACT:
The precise financial impact is unknown.
There will be no negative rate impact on the City’s health insurance plans if coverage
for same gender domestic partner is added. The City’s broker has researched the
potential total cost impact to the City and feels that it would be minimal, but largely
dependent upon demographics.
Research demonstrates that the majority of employers experience a total health benefits
cost increase of less than one percent, with an average of one percent of employees
electing coverage. One percent of the City of Pueblo’s current health enrollment
equates to 7.11 employees. Rounding that number up to eight employees and using
the most predictive cost model reflects a total annual health benefits cost of
$54,058.56.
FACT SHEET FOR SAME GENDER DOMESTIC PARTNER BENEFITS
AN ORDINANCE AMENDING CHAPTERS 3 AND 6 OF TITLE VI OF THE PUEBLO
MUNICIPAL CODE RELATING TO EMPLOYMENT BENEFITS FOR SAME GENDER
DOMESTIC PARTNERS
WHY?
The proposed Ordinance amending Title VI of the City’s Municipal Code by providing for equal
employment benefits (e.g., sick leave, funeral leave, maternity or paternity leave, family and
medical leave, and health insurance benefits) to employees with same gender domestic
partners is not a new idea. Indeed, Section 6-1-7 of the Pueblo Municipal Code specifies that
“[n]o…employee shall be discriminated against or denied equal employment opportunity in the
service of the City on the basis of…sexual orientation….” This Ordinance is consistent with,
and in furtherance of, that policy statement – a policy statement of many employers.
While addressing the changing needs of society and in an effort to treat all persons fairly and
equally, many local governments and private companies have already adopted similar law or
policy addressing this issue and offering employment benefits to same gender domestic
partners. Examples of entities offering same gender domestic partner benefits include:
State of Colorado Bank of America
City and County of Denver Wells Fargo
City of Boulder Ford
Chevron Coors
Barnes and Noble
WHAT IS A SAME GENDER DOMESTIC PARTNER OR SPOUSAL EQUIVALENT?
The Ordinance specifically defines same gender domestic partner and spousal equivalent,
requiring an employee alleging such to submit an affidavit to the City which states:
1. Employee and partner are adults and the same gender;
2. They are in an exclusive committed relationship sharing basic living expenses with intent
for the relationship to last indefinitely;
3. They are not related by blood to a degree which would prevent marriage in Colorado;
and
4. The employee or the partner are not married to another person.
The above elements are similar to those elements needed to establish “common law” marriage;
however, same-gender domestic partners can not legally marry in Colorado.
IMPLEMENTATION
As a practical matter, the scope of many employment benefits for City employees is currently
determined by virtue of collective bargaining agreement. The Ordinance directs and authorizes
the City Manager to take actions necessary to implement and ensure that benefits made
available to an employee and a spouse are extended to an employee and a spousal equivalent
through the collective bargaining process.
Specifically in the context of health insurance benefits, the City and collective bargaining units
have formed a collaborative consultation committee for the purposes of discussing bid
specifications and plan structures. The City solicits bids based upon that process. The
“Benefits Committee” unanimously supports implementation.
COST
Overall Rates
– Through discussions with insurance benefits providers, it has been determined
that there will be no negative rate impact on the City’s health insurance plans if coverage for
same gender domestic partner is added. The 9% renewal rate provided by United Healthcare
for 2013 included extending coverage to same gender domestic partners. There was a zero
percent impact on the renewal given the potential extension of coverage to this new population.
This is supported by a 2000 Hewitt Associates survey that confirmed coverage for domestic
partners is no more expensive than coverage for spouses or other dependents.
Overall Impact on Benefits Cost to City
– The City’s broker, HUB, was asked about the
impact on the overall cost to the City in providing to additional insureds; their answer is that the
cost impact to the plan will be minimal. Coverage for same gender domestic partners increases
the number of insured individuals enrolled in the health insurance plan, but that coverage is no
more expensive, utilization of the plan benefits is not greater than for other individuals and
enrollment may be relatively low depending on actual demographics.
A 2005 Hewitt Associates study found that the majority of employers — 64 percent —
experience a total financial impact of less than 1 percent of total benefits cost, 88 percent
experience financial impacts of 2 percent or less and only 5 percent experience financial
impacts of 3 percent or greater of total benefits cost.
Health Coverage Tax to Employee
– Because same gender domestic partners are not usually
“dependents” or “spouses” as defined in Tax Code, employees are taxed on the “fair market
value” of domestic partner health coverage. For a fully-insured plan, that means the premiums
relating to that domestic partner; for a self-funded plan, that means the premium equivalency for
that coverage (basically the COBRA rate minus 2% as calculated based on expected claims).
The Coverage must be reported on Form W-2.
Because of the Tax Code’s definition of “spouse” and “dependent,” domestic partners rarely
qualify and therefore cannot usually be covered under Cafeteria Plan, HSA or HRA. For
example, Internal Revenue Service Ruling 2006-36 indicates that the possibility of HRA
reimbursement for expenses for a non-dependent can affect the whole HRA and make all
reimbursements taxable.