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CI\ ; OF SAN BERNARDI 0 - REQUI )T FOR COUNCIL ~ON
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From: Nary Jane Perl i ck REC'O. - A~WcnF~i rst Amendment to Agreement with
'. rJohn Hancock Life Insurance Company
1387 JAN 22 P~i 3: ,}or Administrative ~ervices on City's
fhsurance and Beneflt Proqrams.
Personnel
Dept:
Date: Janua ry 9, 1987
Synopsis of Previous Council action:
On November 4, 1985, the Council approved the basic agreement for John Hancock
Life Insurance Company to provide administrative services for the City's self-
funded health programs.
Recommended motion:
Adopt resolution.
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Contact person: I"ary ,Jane Perl ick
Phone: 5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
N/A
.
Source:
Finance:
Council "!otes:
1-9-87
75-0262
Agenda Item No. /1,
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CII _ OF SAN BERNARDI~ ~ - REQUI T FOR COUNCIL ACw. ON
STAFF REPORT
The City's agreement with the John Hancock Mutual Life
Insurance Company expired on December 31, 1986. This firm has
provided administrative services for the City's self-funded
health programs in the area of claims processing and financial
and technical consultation. This service was very competent
and met all contract requirements during this past year.
The John Hancock Company was extremely cooperative and
professional during the changeover from the Blue Cross
administrators, and their cost control techniques and
coordination of benefit systems have resulted in substantial
savings. For these reasons, the Personnel Department is
recommending renewal of the John Hancock Company's contract for
the calendar year 1987.
The only change in the contract is an administrative service
rate increase of $1.40 per employee, which is incorporated into
the employee's portion of the insurance and is not an
additional cost to the City.
January 22, 1987
75-0264
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A FIRST AMENDMENT TO AGREEME~~ WITH THE JOHN
HANCOCK LIFE INSURANCE COMPANY, RELATING TO AN EXTENSION OF
THE AGREEMENT FOR ADMINISTRATIVE SERVICES ON THE CITY'S
INSURANCE AND BENEFIT PROGRAMS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
6 CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute on behalf of
said
Amendment
to
Agreement with the
John Hancock
City a First
Mutual Life Insurance Company relating to an extension of the
agreement for administrative services on the City's insurance
and benefit
programs,
a copy of which is
attached
hereto,
by reference
nAn and incorporated herein
as
marked Exhibit
fully as though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
and
Common
Council of the City of San
adopted by the Mayor
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1-9-87
day of
meeting thereof, held on the
, 1987, by the following vote, to
Bernardino at a
Council Members
AYES:
NAYS:
ABSENT:
City Clerk
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1 The foregoing resolution is hereby approved this ____
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6 Approved as to form:
of
, 1987.
Mayor of the city of San Bernardino
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8 city Attorney
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1-9-87
1 FIRST AMENDMENT TO AGREEMENT
2 (Administrative Services)
3 THIS FIRST AMENDMENT TO AGREEMENT is entered into this
4 day of , 1987, by and between JOHN HANCOCK MUTUAL
5 LIFE INSURANCE COMPANY (herein called the Insurer) and the CITY OF
6 SAN BERNARDINO, a municipal corporation (herein called the
7 policyholder).
8 Insurer and Policyholder agree as follows:
9 1. Recitals.
10 A. Insurer and Policyholder entered into an agreement
11 effective January 1, 1987, relating to Insurer providing
12 administrative services for the City's self-funded health programs
13 in the area of claims processing and financial and technical
14 consul.tat ion.
15 8. Insurer and Policyholder desire to amend said
16 agreement to provide for a one year extension of the agreement and
17 to provide that the charge to the Policyholder for the basic
18 services shall be $8.08 per employee monthly plus CAPS at $.90 per
19 employee monthly rather than the present charge of $7.58.
20 2. Term. The term of the agreement is hereby extended for
21 an additional one year, commencing January 1, 1987 and terminating
22 December 31, 1987.
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3. Amendment to Appendix D. Appendix D of the agreement is
24 amended to change the monthly premium for administrative services
25 from $7.58 per employee to an administrative services premium of
26 $8.98 comprised of $8.08 per employee monthly for basic services
27 p~us $.90 per employee monthly for CAPS.
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4.
Other Provisions.
All other terms and conditions of the
, 1'1'1/0"7
1 agreement shall remain the same and be in full force and effect.
2 IN WITNESS WHEREOF, the parties hereto have executed this
3 First Amendment to Agreement on the day and year first above
4 wri tten.
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10 ATTEST:
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12 City Clerk
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JOHN HANCOCK MUTUAL LIFE INSURANCE
COMPANY
By:
Title
CITY OF SAN BERNARDINO
By
Mayor
14 Approved as to form:
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16 City Attorney
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1/22/87
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