Resolution No. 7257E
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RESOLUTION NO. 7257
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AMENDMENT NO. 11 TO THE
ADMINISTRATIVE SERVICES AGREEMENT (GUSI-2R04,
GUSI-2R05 AND GUSI-9V57) BY AND BETWEEN THE
CITY OF VERNON AND UNITED OF OMAHA LIFE
INSURANCE COMPANY
WHEREAS, the City Council of the City of Vernon has
agreements with United of Omaha Life Insurance Company ("Omaha")
for administering the City's employee health care plan; and
WHEREAS, Omaha has submitted Amendment No. 11 to said
Agreement, amending Provisions 5.1.1, 5.1.2 and 5.1.3 relative to
administration fees payable by City to Omaha, and amending
Provision 5.2.4 to increase the Mutually Preferred PPO Access Fee
to $2.00 per employee medical exposure per month, effective
January 1, 1999; and
WHEREAS, Omaha charges the City a separate Utilization
Management Fee to review charges by medical providers in order to
insure that employees are not overcharged for medical services;
and
WHEREAS, Omaha has proposed an increase in the
Utilization Management Fee from the current rate of $1.68 per
employee per month to $2.00 per employee per month; and
WHEREAS, the City Administrator has recommended approval
of said Amendment and the proposed increase in the Utilization
Management Fee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
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11 hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves Amendment No. 11 to Administrative Services (GUSI-
2R04, GUSI-2R05 AND GUSI-9V57), effective January 1, 1999 through
December 31, 1999, the terms of which are stated in a memorandum
dated December 30, 1998 from Bruce V. Malkenhorst, Finance
Director, to the Finance Committee of the City of Vernon, a copy
of which has been made available to the City Council concurrently
with this resolution, and the City Council hereby orders said
Amendment to be received and filed by the City Clerk; provided,
that the Amendment shall contain terms consistent with those
stated in the aforementioned memorandum. The City Council further
approves the increase in the Utilization Management Fee to $2.00
per employee per month.
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
Amendment for, and on behalf of, the City of Vernon; provided,
that the Amendment shall contain terms consistent with those
stated in the memorandum mentioned in Section 2 of this
Resolution.
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 5th day of January, 1999.
LEONIS C. MIXLBURG, YMayor
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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s
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. 7257, was -duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the City Council duly held
7 on Tuesday, January 5, 1999, and thereafter was duly signed by the
8 Mayor of the City of Vernon.
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10 BRUCE V. MALKENHORST, City Clerk
11 (SEAL)
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
Finance Committee
City of Vernon
Honorable Members:
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
December 30, 1998
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
The Risk Manager is requesting to renew the Mutual of Omaha
Medical/Dental/Vision/Life Insurance Program with the following rate
increases.
Life Insurance
AD&D Insurance
Dependent Life Insurance
Medial/Dental/Vision Fees
PPO Access Fee
Utilization Management Fee
Specific Stop Loss Fee
Aggregate Stop Loss
Current
$.39/$1000
$.05/$1000
$.38/dependent unit
6.2% of claims
$1.00/ee/mo
$1.68/ee/mo
$62.00/ee/mo
$1.59/ee/mo
Adiusted Offer
6.5% of claims
$2.00/ee/mo
$2.00/ee/mo
$65.10/ee/mo
$1.67/ee/mo
It is hereby recommended that renewal of the Mutual of Omaha Insurance
Program, with the above referenced rate increases, be approved
effective January 1, 1999 thru December 31, 1999.
Very truly yours,
Bruce V. Malkenhorst
Director of Finance
BVM/gst
enclosures
OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: 1/18/99
TO: Joan Francone, Risk Manager
FROM: Greg S. Tsujiuchi
RE: Mutual of Omaha Master Stop Loss Renewal Policy / Amendment No. 11 to the Administrative
Services Agreement
Attached herewith are signed copies of Resolutions Number 7257 & 7258 for your records. Upon your receipt of
the two, executed, above referenced documents that correspond with these Resolutions, please forward to the City
Administrator's Office.
cc: GJO