Loading...
HomeMy WebLinkAbout29- Personnel C11 . OF SAN BERNARDL _3 . REQUE' T FOR COUNCIL AC 76 _ N From: Roger DeFrati s r,,D.-0jjWt:'!15econd Admendment to Agreement with John Hancock Life Insurance Company Dept: Personnel ;';;v ? i 1 for Administrative Services on City's Insurance and Benefit Programs Date: 1-8-88 Synopsis of Previous Council action: (if On November 4, 1985, the Council approved the basic agreement for John Hancock Life Insurance Company to provide administrative services and Stop-Loss Insurance for the City's self-funded health programs. First amendment Extending agreement was approved on February 2, 1987. Recommended motion: Adopt resolution Signature Contact person: Roger DeFrati s Phone: 5008 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: N/A Source: Finance: Council Notes: C11 1 OF SAN BERNARDL. 0 - REQUE�T FOR COUNCIL AC% _DN STAFF REPORT The City's agreement with the John Hancock Mutual Life Insurance Company expired on December 31, 1987 . 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, and their cost control techniques and coor- dination of benefits 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 1988 . The only change in the contract is a rate increase of $3 . 14 for ASO and $2 . 51 for Stop-Loss Insurance per employee per month, which incorporated into the premium and does not affect a cost to the City. 75.0264 1-8-88 1 2 RESOLUTION NO. 3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING3 THE EXECUTION OF A SECOND AMENDMENT TO AGREEMENT WITH THE JOHN HANCOCX LIFE INSURANCE COMPANY, RELATING TO AN EXTENSION OF 4 THE AGREEMENT FOR ADMINISTRATIVE SERVICES AND STOP-LOSS 5 INSURANCE ON THE CITY 'S INSURANCE A?ND 13ENEFIT PROGRA'MS. 6 BE IT RESOLVED BY THE IMAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 8 SECTION 1. The Mayor of the City of San Bernardino is 9 hereby authorized and directed to execute on behalf of said 10 City a Second Amendment to Agreement with the John Hancock 11 Mutual Life Insurance Company relating to an extension of the 12 agreement for Stop Loss Insurance and administrative services 13 on -he City's insurance and benefit- programs , a copy of which 14 is attached hereto, marked Exhibit "A" and incorporate) 15 herein by reference as fully as though set forth at length. 16 I HEREBY CERTIFY that the foregoing resolution was duly 17 adopted by the 'Mayor and Common Council of the City of San 18 Bernardino at a meeting thereof, held on the 19 day of 1988, by the following vote, to 20 wits 21 22 AYES: Council Members 23 24 A. 25 ABSENT: 26 City Clerk 28 (Continued) PAGE 1 1-8-88 t RESOLUTION AUTHOR.LGING SECOND AM:,.+D 1ENT TO AGREEMENT WITH THE JOHN HANCOCK LIFE INSURANCE COMPANY 1 The foregoing resolution is hereby approved this 2 of 1988. 3 4 Mayor of the City of San+Bernardino 5 6 Approved as to form and legal content: 7 8 C ' Attorney 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PAGE 2 1-8-88 SECOND AMENDMENT TO AGREEMENT 1 (Administrative Services) 2 3 THIS SECOND AMEND14ENT TO AGREEMENT is entered into this 4 day of , 1988, by and between JOHN HANCOCK 5 'MUTUAL LIFE INSURANCE COMPANY (herein called the Insurer) and 6 the City of SAN BERNARDINO, a municipal corporation (herein 7 called the policyholder) . $ Insurer and Policyholder agree as follows: 9 1. Recitals . 10 A. Insurer and Policyholder entered into an 11 agreement effective January 1, 1986, relating to insurer 12 providing administrative services and Stop-Loss Insurance for 13 the City's self-funded health programs in the area of clai.rns 14 processing and financial and technical consultation. 15 B. Insurer and Policyholder desire to amend said 16 agreement to provide for a one year extension of the agree- 17 ment and to provide that the charge to the Policyholder for 18 the basic administrative services including CAPS shall be 19 $12. 12 per employee monthly and for Stop-Loss Insurance shall 20 be $12.74 rather than the 1987 charge of $8. 98 and $10. 23 21 respectively. 22 2. Term. The term of the agreement is hereby 23 extended for an additional one year, commencing January 1, 24 11988 and terminating December 31, 1988. 25 3 • Amendment 'Co Appendix D. Appendix D of the 26 agreement .s amended to change the monthly premium for 27 administrative services from $8. 98 per employee to an admin- 28 istrative services premium of $12. 12 comprised of basic (Continued) PAGE 1 administrative services including CAPS and Stop-Loss insur- ance from $10. 23 per employee to $12. 74 her employee for 2 calendar year 1988. 3 4. Other Provisions . All other terms and conditions 4 of the agreement shall remain the same and full force and 5 effect . 6 IN WITNESS WHEREOF, the parties hereto have executed 7 this Second Amendment to Agreement on the lay and year first 8 above written. 9 10 11 JOHN HANCOCK MUTUAL LI7E INSURANCE 12 COMPANY 13 By' 14 Title. 15 ATTEST: CITY OF SAN BERNAROI O 16 18 City Clerk !2ayor 19 20 Approved as to form and Legal Content: 21 'C 22 , ity Attorney 23 24 25 26 27 28 PAGE 2 1-8-88 t X40a%w (mutual Life Insurance Company Group Insurance Operations Los Angeles Group Office John D. DeLong Senior Group Representative 4th Floor,425 Shatto Place November 16, 1987 (213) 380-1200 Mail Address: P.O. Box 60866, Terminal Annex Los Angeles, California 90060 Roger C. DeFratis Assistant Director Personnel Department CITY OF SAN BERNARDINO 300 North D Street San Bernardino, Ca 92418 Re: Renewal Factors for 1988 Dear Roger: This letter will confirm the new factors to be effective January 1, 1988. ASO fee $12.12 per employee Specific Stop Loss $10.96 per employee Aggregate Stop Loss $1.78 per employee Aggregate Monthly Dollar $308.00 per employee per month Factor Please review these figures and advise if you are in agreement. Sincerely, q cr� John D. DeLong Senior Group Representative JDD/dkr cc: Mike Baker 1 _Q_QQ