Resolution No. 73271
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RESOLUTION NO, 7327
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AMENDMENT NOS. 11 AND 12 TO THE
ADMINISTRATIVE SERVICES AGREEMENT (GUSI-2R04,
GUSI-2RO5 AND GUSI-9V57) BY AND BETWEEN THE
CITY OF VERNON AND UNITED OF OMAHA LIFE
INSURANCE COMPANY, AND RESCINDING RESOLUTION
NO. 7257
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, on or about November 30, 1998, Omaha proposed
Amendment No. 11 to the Administrative Services Agreement (GUSI-
2R04, GUSI-2R05 AND GUSI-9V57) ("Agreement"), the terms of which
were approved by the City Council by adoption of Resolution No.
7257 on January 5, 1999; and
WHEREAS, Omaha failed to execute Amendment No. 11 as.
approved by Resolution No. 7257, and has now proposed a new
Amendment No. 11 and an Amendment No. 12 to the Agreement;
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,
but said fee has never been incorporated into the Agreement; and
WHEREAS, Omaha has submitted a new Amendment No. 11 to
add Section 5.2.5 to the Agreement, establishing the Utilization
Management Fee at the rate of $1.68 per employee per month,
effective July 1, 1998; and
WHEREAS, proposed Amendment No. 12 to the Agreement (1)
amends Provisions 5.1.1, 5.1.2 and 5.1.3 to increase the
administration fees paid by the City to Omaha in connection with
.e
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the City's medical, dental and vision programs, effective January
1, 1999; (2) amends Provision 5.2.4 to increase the Mutually
Preferred PPO Access Fee to $2.00 per employee per medical
exposure per month, effective January 1, 1999, and (3) and amends
Provision 5.2.5 to increase the Utilization Management Fee to
$2.00 per employee per medical exposure per month, effective
January 1, 1999; and
WHEREAS, the fee increases set forth in proposed
Amendment No. 12 are the same as the increases approved by the
City Council in Resolution No. 7257;
WHEREAS, the City Administrator has recommended approval
of said Amendments.
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
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves Amendment Nos. 11 and 12 to Administrative
Services (GUSI-2R04, GUSI-2R05 AND GUSI-9V57), copies of which`
have been made available to the City Council concurrently with
this resolution, and the City Council hereby orders said
Amendments 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
Amendments for, and on behalf of, the'City of Vernon.
SECTION 4: Resolution No. 7257 is hereby rescinded.
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SECTION 5: 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 4th day of May, 1999.
.cam .
r �LEONIS C. MAL URG, Mayor
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 7327, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, May 4, 1999, and thereafter was duly signed by the
Mayor of the City of Vernon.
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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