Resolution No. 70781
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RESOLUTION NO. 7078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF A NEW UNIVERSAL CARE GROUP
SUBSCRIBER AGREEMENT (90-100) BY AND BETWEEN
THE CITY OF VERNON AND UNIVERSAL CARE
WHEREAS, the City Council of the City of Vernon, by
adoption of Resolution No. 6725, approved and authorized the
Iexecution of a Universal Care Group Subscriber Agreement (Group
No. 90-100) with Universal Care; and
WHEREAS, the agreement took effect January 1, 1996, and
by its terms was renewable by resolution of the City Council on
January 1, 1998; and
WHEREAS, the City Council, by adoption of Resolution No.
7061, renewed the agreement; and
WHEREAS, Universal Care has since presented the City
with a new written agreement, dated December 22, 1997, with an
effective date of January 1, 1998, to supersede and replace the
agreement approved by Resolution No. 6725 and renewed by
Resolution No. 7061 on December 16, 1997; and
WHEREAS, the new agreement contains substantially the
same terms as the old agreement, except for new provisions
regarding renewal, plan amendments, arbitration, and benefits; and
WHEREAS, Universal Care has represented to the City that
there will be no change in rates for the next twelve months; and
WHEREAS, the City Administrator has recommended to the
City Council that the new agreement be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
Ihereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves the Universal Care Group Subscriber Agreement
(90-100) by and between the City of Vernon and Universal Care,
dated December 22, 1997 (effective January 1, 1998), a copy of
which has been presented to the City Council concurrently with
this resolution, and the City Council hereby orders said agreement
to be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
agreement for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 27th day of January, 1998.
- EONIS C. MALBURG, MaycFr
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
) ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 7078, was duly adopted by the City Council of the
6 City of Vernon at an adjourned regular meeting of the City Council
7 duly held on Tuesday, January 27, 1998, and thereafter was duly
8 signed by the Mayor of the City of Vernon.
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10 BRUCE V. MALKENHORST, City Clerk
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CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX: (213) 581-7924
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (213) 583-8811
January 13, 1998
City Council
City of Vernon
Honorable Members:
DA
330-5818
KEVIN WILSON
or of Community Services & Water
FAX: (213) 588-2761
KENNETH J. DeDARIO
Director of Light & Power
FAX: (213) 583-1983
DAVE TELFORD
Fire Chief
FAX: (213) 581-1385
LOUIS ROSENKRANTZ
Police Chief
FAX: (213) 581-1178
On December 16, 1997, the City Council adopted Resolution No.
7061, renewing an agreement with Universal Care dated January 1,
1996. Universal Care then prepared a new written agreement which
the City received on December 30, 1997.
The new agreement is substantially the same as the existing
agreement, but there are several new terms that make it necessary
to submit the new agreement for Council approval. There still
remains no change in fees. This has been reviewed by the City
Attorney and it is hereby recommended that said agreement be
approved.
Accordingly, transmitted herewith is the new agreement unsigned.
Very truly yours,
Bruce V. Malkenhorst
City Clerk
BVM/mm
enclosures
MEMORANDUM
VIA FAX AND REGULAR MAIT.
TO: Bruce V. Malkenhorst, City Administ
FROM: David B. Brearley, City Attorne��,
DATE: January 12, 1998
SUBJECT: Universal Care -- Group Subscriber
On December 16, 1997, the City Council adopted Resolution
No. 7061, renewing an agreement with Universal Care dated January
1, 1996. Universal Care then apparently prepared new written
agreement, which the City received on December 30 and forwarded
to me for approval as to legal form.
The new agreement is substantially the same as the existing
agreement, but there are several new terms that make it necessary
to submit the new agreement to the City Council for approval.
For example, paragraph 8(a) has been changed to provide for
automatic annual renewal instead of renewal by resolution of the
council. Paragraph 8(c) is new, giving Universal Care the right
to amend the plan on 45 days' notice. Paragraphs 12(c), (d) and
(g), on binding arbitration, are new. The new agreement
specifically excludes in vitro fertilization as a benefit, while
the old one did not.
Accordingly, I am returning the new agreement unsigned with
the hardcopy of this memo. I assume the agreement will be on the
next City Council agenda and will forward a resolution approving
it to you later this week.
Encl.
N �
a
MEMORANDUM
TO: Bruce V. Malkenhorst, City Administrator
FROM: Joan Francone, Risk Manager .
DATE: January 15, 1998
SUBJECT: UNIVERSAL CARE HMO INSURANCE RENEWAL
The following changes were added to the Universal Care HMO agreement as a
result of legislation:
• The Department of Corporations Toll -Free Number and explanation
of its use is included.
• Binding Arbitration language has been revised to reflect "single
neutral arbitrator" language for disputes under $200,000. A
hardship provision effective, August 1, 1997, is also included.
• Revision to the Grievance Procedure relating to response times and
expedited reviews is included.
Also added:
• Automatic renewal until terminated. Automatic renewal is our
usual procedure unless there is a material change to the agreement
or change in fee structure.
• 45 days' notice to amend the agreement.
Excluded:
• In vitro fertilization.
As indicated in my memo of December 10, 1997, there will be no premium
increase for 1998.
Universal Care HMO is regulated by the Department Corporations not the
Department of Insurance. Based on recent HMO criticism, I anticipate more
legislative action to occur.
JF/ca
Enclosure
c: City Attorney
TO: Bruce V. Malkenhorst, City Administrator
FROM: Joan Francone, Risk Manager
J
DATE: December 10, 1997 `
SUBJECT: UNIVERSAL CARE HMO INSURANCE RENEWAL
Pursuant to the attached letter from Peter H. Cobo, Universal Care HMO has
confirmed that rates will remain unchanged for the policy year from January 1,
1998 to January 1, 1999.
Rates will remain as follows:
Employee $98.58
Employee plus one $226.70
Employee plus two or more $394.59
The Universal Care HMO census report for December 1, 1997 indicates the
following distribution:
Employee 45
Employee plus one 47
Employee plus two or more 106
TOTAL 198
With the anticipation of a rate increase, I am pleased that Universal rates have
remained unchanged.
JF/ca
Enclosure
c: City Attorney