HomeMy WebLinkAbout2026.08.24 Council Workshop Packet
AGENDA
City Council Workshop Meeting
7:00 PM - Monday, August 24, 2026
Pasco City Hall, Council Chambers & Microsoft Teams Webinar
Page
1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would
like to provide public comment remotely, may continue to do so by filling out
the online form via the City’s website (www.pasco-wa.gov/publiccomment)
to obtain access information to comment. Requests to comment in meetings
must be received by 4:00 p.m. on the day of this workshop.
The Pasco City Council Workshops are broadcast live on PSC-TV Channel
191 on Charter/Spectrum Cable in Pasco and Richland and streamed at
www.pasco-wa.gov/psctvlive and on the City’s Facebook page at
www.facebook.com/cityofPasco.
To listen to the meeting via phone, call 1-332-249-0718 and use access
code 519260441#
Audio equipment available for the hearing impaired; contact the Clerk for
assistance.
Servicio de intéprete puede estar disponible con aviso. Por favor avisa la
Secretaria Municipal dos dias antes para garantizar la disponiblidad.
request. upon be provided service interpreter language (Spanish may
Please provide two business day's notice to the City Clerk to ensure
availability.)
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. VERBAL REPORTS FROM COUNCILMEMBERS
5. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC
COMMENT for scheduled topic each comment may public the on –
discussion, up to 2 minutes per person with a total of 8 minutes per item. If
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opposing sides wish to speak, then both sides receive an equal amount of
time to speak or up to 4 minutes each side.
3 - 13 (a) Health Insurance interfund loan update
Presentation by Sara Matzen
14 - 27 (b) Presentation - Pasco Aquatic Center Operations Update
Presentation by Tony Tuck
6. MISCELLANEOUS COUNCIL DISCUSSION
7. EXECUTIVE SESSION (10 min)
a) Discussion with legal counsel about current or potential litigation per
RCW 42.30.110(1)(i)
b) To consider the minimum offering price for sale or lease of real estate if
there's a likelihood that disclosure would decrease the price per RCW
42.30.110(1)(c)
8. ADJOURNMENT
9. ADDITIONAL NOTES
28 - 29 (a) Adopted Council Goals (Reference Only)
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AGENDA REPORT
FOR: City Council August 14, 2026
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 8/24/26
FROM: Sara Matzen, Human Resources Director
Human Resources
SUBJECT: Health Insurance interfund loan update
I. ATTACHMENT(S):
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Presentation by Sara Matzen
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
On October 20, 2025, City Council approved Resolution No. 4660, authorizing
a $6.5 million interfund loan to the Medical/Dental Insurance Fund. The loan
was necessary to stabilize the City’s self-funded medical plan after claims
costs had exceeded available funding and plan reserves had been significantly
depleted.
In conjunction with the interfund loan, the City implemented several changes
effective January 1, 2026, intended to improve the financial sustainability of the
plan. These included increasing medical plan funding for the first time in more
than 12 years, moving PERS plan participants to a tiered premium structure,
increasing Police and Fire composite premiums consistent with applicable
collective bargaining agreement provisions, transitioning medical plan
administration and network access to Premera Blue Cross, and implementing
additional medical and pharmacy management strategies.
Staff is providing Council with an update on overall plan performance following
implementation of the loan and the 2026 changes.
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Through June 30, 2026, the early results are encouraging:
Medical/Rx plan costs totaled approximately $5.0 million, compared with
an Alliant-modeled funding target of approximately $5.8 million, resulting
in costs at approximately 86% of the funding target.
This represents approximately $811,000 favorable to the modeled
funding target through the first six months of 2026.
Net Medical/Rx claims were approximately $1,487 per employee per
month, compared with approximately $1,806 in the prior plan year, a
decrease of 17.7%.
Total plan cost per employee per month decreased approximately 6.2%
compared with the prior plan year.
Dental plan costs are currently tracking at approximately 98% of the
funding target.
The plan continues to experience the claims volatility inherent in a self-funded
medical plan. Through June, five claimants had incurred more than $100,000
each in Medical/Rx claims and accounted for approximately 27% of total
Medical/Rx claims. Two claimants had exceeded $200,000 in total claims. The
City $200,000 standard a with specific stop-loss maintains insurance
deductible to help protect the fund from catastrophic individual claims, and
approximately stop-loss reimbursement for had been $343,700 identified
through June.
The first six months of experience indicate that the plan is moving in the
intended direction following the corrective actions implemented for 2026.
However, six months of experience is not sufficient to determine full-year
performance or long-term plan stability. Staff will continue monitoring claims,
stop-loss recoveries, fund reserves, actual revenues and expenditures, and
repayment of the interfund loan
V. DISCUSSION:
No Action Required
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August 24, 2026
Pasco City Council
Workshop
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Medical/Dental Insurance Fund Update
August 24, 2026
Pasco City Council
Six-month update following 2026 corrective actions
Council Update • Experience through June 30, 2026
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City of Pasco
What we committed to in fall 2025
October communications centered on stability, sustainability and quality access.
EMPLOYEE AND UNION MESSAGE
The City told employees and unions that the self-funded
medical plan needed immediate action to restore solvency
and preserve access to quality coverage.
Stability Stabilize the medical fund and preserve the self-funded model.
Sustainability Align funding with actual plan costs and begin loan repayment.
Quality Access Move to Premera/BCBS to broaden in-network access and receive better claims discounts.
2026 CORRECTIVE ACTIONS
Council-approved $6.5M interfund loan
Medical funding increased for the first time in over 12 years
Tiered medical premiums implemented for PERS employees
Police and Fire premium structures remained governed by CBAs which is a composite rate
Transitioned medical network to Premera/BCBS
Dependent eligibility audit and stronger medical/Rx management
Tonight’s update is an accountability check: did the 2026 actions begin moving the plan back toward financial stability?
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.2
Recovery of all past Rx rebates owed to City by prior PBM ~$950,000
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City of Pasco
Six months in: Medical plan is running at a surplus
Medical/Rx plan experience through June 30, 2026.
86%
Total plan cost / modeled funding
target
$811K
Favorable to initial modeled funding
target
$5.0M
Medical/Rx total plan cost
$5.8M
Medical/Rx funding target
$4.99 million
$5.8
0
1
2
3
4
5
6
Total Plan Cost Funding Target
Context for Council
2025 full plan year ran at 145% of funding.
2026 first six months are running at 86% of modeled funding.
Plan costs are currently running below the 2026 funding target.
Funding was set conservatively to 1.) Payoff loan and 2.)
Replenish reserves in order to meet state requirements.
The funded position has materially improved; the result should still be reconciled to actual fund activity before year-end decisions.
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.3
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City of Pasco
The improvement is not only from higher premiums
Funding is better aligned, and claims experience is also lower than the prior plan year.
Funding alignment improved
$1,345
$2,122
0
600
1200
1800
2400
Prior PY 2026 YTD
+57.9%
Funding target PEPM
+51.5%
Employee contribution PEPM
Claims experience also improved
$1,806 $1,487
0
550
1100
1650
2200
Prior PY 2026 YTD
-17.7%
Net claims PEPM
-6.2%
Total plan cost PEPM
The City increased funding from $1,345 to $2,122 per employee per month, while net claims decreased from $1,806 to $1,487 per employee per month.
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.4
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City of Pasco
2026 plan performance remains favorable across plan populations
Medical/Rx experience through June 30, 2026
What the data show
Both primary medical populations are currently below their 2026 funding targets.
Dental is tracking near its funding target.
Results represent the first six months of a self-funded plan and will continue to fluctuate.
Overall plan performance through June is encouraging, but continued monitoring is necessary before drawing conclusions about full-year results.
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.5
86%
98%
0%
20%
40%
60%
80%
100%
120%
Medical/Rx Dental
86%
Medical/Rx cost to modeled funding target
98%
Dental cost to modeled funding target
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City of Pasco
Self-funded volatility remains the primary risk
The City retains individual claim costs up to the applicable stop-loss deductible; insurance reimburses
eligible costs above that threshold.
$200K
Standard Individual stop-loss
deductible
3
Claimants between $100K and
$200K
5
Claimants with total claims above
$200K
$343.7K
Stop-loss reimbursement identified
through June
0.73
0.27
All other claimants Claimants over $100K
A small number of high-cost claimants can materially affect a self-funded plan; stop-loss helps limit catastrophic exposure.
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.6
73% All other claims
27% Claims from 5 high-cost claimants
2 Claimants exceeded the $200K stop-loss threshold
How stop-loss works
The City is self-funded and pays claims through
its administrator Premera Blue Cross.
For most claimants, the City retains eligible
costs up to the $200,000 specific deductible.
Stop-loss reimburses eligible costs above that
threshold.
This protects against catastrophic claims, but it
does not eliminate normal claims volatility.
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City of Pasco
Where we are today
The corrective actions are producing the intended financial stabilization, with continued monitoring needed.
Stability Improving Medical/Rx is running at 86% of modeled funding through June.
Sustainability Trending right Funding is better aligned with plan costs but reserves and loan repayment still require discipline.
Quality access Expanded The City preserved the self-funded plan while moving to Premera Blue Cross network access.
NEXT GOVERNANCE STEPS
Reconcile Alliant experience reporting to Finance fund activity.
Continue monthly monitoring of claims, stop-loss, reserves, and loan repayment.
Avoid rate reductions or structural changes based on six months of favorable experience.
Continue cost containment work through HR, Finance, broker/consultant, and the Benefits & Wellness Committee.
Preliminary; subject to Finance reconciliation. Source: June 2026 medical plan experience report.7
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AGENDA REPORT
FOR: City Council August 13, 2026
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 8/24/26
FROM: Angela Pashon, Director
Parks & Recreation
SUBJECT: Presentation - Pasco Aquatic Center Operations Update
I. ATTACHMENT(S):
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Presentation only
III. FISCAL IMPACT:
NA
IV. HISTORY AND FACTS BRIEF:
Background:
The Pasco Public Facilities District (PFD) funded and constructed an
indoor/outdoor aquatic facility. Through an interlocal agreement (ILA), the City
of Pasco began operating and managing PAC in June 2026 with all costs
associated with the operation being funded by the PFD. Construction of the
Pasco Aquatic Center (PAC) completed mid-2026 and officially opened to the
public June 27, 2026. With the facility operation is approaching two months,
staff will provide an overview of its operation.
V. DISCUSSION:
Recommendation:
No action is requested.
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Pasco Aquatic
Center
8/24/26
Pasco City Council
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Attendance Overview
Admissions Breakdown
Capacity Strategy
Customer Feedback
Safety & Incident Trends
Emergency Preparedness
Staffing
Marketing & Outreach
Community Impact
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03
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Pool Admissions
Youth 3U
•3U AM 2,294
Adult Admissions
•Adult Summer Admission (Non-
Resident):6,172
•Adult Summer Admission
(Resident):5,799
•Adult Total:11,971
Senior Admissions
•Senior Summer Admission
(Resident):698
•Senior Summer Admission (Non-
Resident):622
•Senior Total:1,320
Youth Admissions
•Youth Summer Admission (Non-
Resident):6,680
•Youth Summer Admission
(Resident):6,793
•Youth Total:13,473
•Walk-Ins –15,745
Total:44,803
Attendance Overview
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Total Attendance
44,803
Admissions Breakdown
4
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Adult Senior Youth Walk-Ins 3U AM
Attendance
Attendance
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Phased Approach
•Starting at 300, increasing
weekly by 50
•Current Operating
Capacity: 450
Capacity Strategy
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Key Themes
•Reservations
•Phone Access
•Capacity Frustrations
Actions Taken
•Improved Workflow
•Callback Practices
•Instructional Videos
Customer Feedback Overview
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•Assistance entries increase
with higher attendance
•Drop slide: highest
intervention area
•Lazy river: minor issues
reduced significantly
Safety & Incident Trends
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•Bi-weekly in-services
•Regular Mock Drills
•Focus on rescue consistency
and readiness
Emergency Preparedness
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•180 Hires, 150 Active
•Lifeguard Certifications
completed
•Shadowing
•Meetings
•Communication Channels
Maintained
Staffing Overview
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•Mixed media campaigns
•Consistent digital messaging
•5,200 Facebook followers
•950 Instagram
•124,500 web hits
•Strong face-to-face
community engagement
Marketing & Outreach
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•High attendance
•Family recreation access
•Local job creation
•Growing partnerships &
equitable access discussions
Community Impact
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•Strong attendance
•Safe & effective operations
•High engagement
•Meaningful community
benefit
Final Splash
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Promote a high-quality of life through quality programs, services and
appropriate investment and re- investment in community
infrastructure.
City Council Goals
QUALITY OF LIFE
2024-2025
Enhance the long-term viability, value, and service levels of services
and programs.
FINANCIAL SUSTAINABILITY
Promote a highly functional multi-modal transportation system.
COMMUNITY TRANSPORTATION NETWORK
Implement targeted strategies to reduce crime through strategic
investments in infrastructure, staffing, and equipment.
COMMUNITY SAFETY
Promote and encourage economic vitality.
ECONOMIC VITALITY
Identify opportunities to enhance City of Pasco identity, cohesion,
and image.
CITY IDENTITY
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METAS DEL CONCEJO MUNICIPAL
2024-2025
Promover una alta calidad de vida a través de programas, servicios
y inversion apropiada y reinversión en la comunidad infraestructura
comunitaria.
CALIDAD DE VIDA
Promover viabilidad financiera a largo plazo, valor, y niveles de
calidad de los servicios y programas.
SOSTENIBIILIDAD FINANCIERA
Promover un sistema de transporte multimodal altamente funcional.
RED DE TRANSPORTE DE LA COMUNIDAD
Implementar estrategias específicas para reducir la delincuencia por
medios de inversiones estratégicas en infraestructura, personal y equipo.
SEGURIDAD DE NUESTRA COMUNIDAD
Promover y fomentar vitalidad económica.
VITALIDAD ECONOMICA
Identificar oportunidades para mejorar la identidad comunitaria, la
cohesión, y la imagen.
IDENTIDAD COMUNITARIA
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