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HomeMy WebLinkAbout19-Human Resources ~ CI\ ; OF SAN BERNARDI 0 - REQUI )T FOR COUNCIL ~ON Q- 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. ~~ 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, . 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 1 2 3 4 5 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: 7 8 9 10 11 12 13 14 15 16 17 18 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 19 20 wit: 21 22 23 24 25 26 27 28 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 - 1 The foregoing resolution is hereby approved this ____ 2 3 4 5 6 Approved as to form: of , 1987. Mayor of the city of San Bernardino 7 ;:"/, .'~' . ~'//. ,."'. " j'/ ,.' />,......./../ ,_, _ ._' .",',~... (,,,' I .....J~. (;;... ~...., wi(.-~JJi;..,~" ; ~. .J r 8 city Attorney 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 23 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. 28 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. 5 6 7 8 9 10 ATTEST: 11 12 City Clerk 13 JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY By: Title CITY OF SAN BERNARDINO By Mayor 14 Approved as to form: 15 , .""1)" 1.'" 16 City Attorney 17 18 19 20 21 22 23 24 25 26 27 28 1/22/87 -2-