Resolution No. 2011-182RESOLUTION NO. 2011-182
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE ACTIONS TAKEN BY
THE RISK MANAGER IN ESTABLISHING LINCOLN NATIONAL
LIFE INSURANCE COMPANY FOR LIFE INSURANCE BENEFITS
FOR THE CALENDAR YEAR 2011 AND APPROVING THE
RENEWAL OF LIFE INSURANCE BENEFITS FROM THE LINCOLN
NATIONAL LIFE INSURANCE COMPANY FOR ACTIVE
EMPLOYEES AND CITY COUNCIL MEMBERS FOR THE CALENDAR
YEAR 2012
WHEREAS, on November 9, 2009, the City Council of the City
of Vernon adopted Resolution No. 10,093 approving life insurance
benefits for active employees, identified consultants and City Council
members with Lincoln National Life Insurance Company ("Lincoln") for
the period of January 1, 2010 through December 31, 2010; and
WHEREAS, Risk Management renewed the life insurance benefits
policy with Lincoln for the period of January 1, 2011 through
December 31, 2011 with an annual rate of approximately $9,974.04
guaranteed for a one (1) year period; and
WHEREAS, Lincoln has provided the City with a renewal offer
for life insurance benefits with no change in rate for active employees
and City Council members for the period of January 1, 2012 through
December 31, 2012, with an annual rate of approximately $10,111.20
guaranteed for a one (1) year period; and
WHEREAS, by memo dated October 24, 2011, the Risk Manager
recommended that (i) his actions in obtaining life insurance benefits
with Lincoln for the period of January 1, 2011 through
December 31, 2011, be ratified and (ii) the City renew life insurance
benefits for active employees and City Council members for the
calendar year 2012 based on an approximate annual premium of
$10,111.20, with no rate increase; and
WHEREAS, the City Council intends to renew the life
insurance benefits for 2012 based upon the recommendations of the Risk
Manager; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (b)(1) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to renew life insurance benefits for active employees and
City Council members with Lincoln.
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
ratifies the actions of the Risk Manager in obtaining the life
insurance benefits policy from Lincoln for the calendar year 2011,
SECTION 3: The City Council of the City of Vernon hereby
approves the renewal of Lincoln Financial Basic Life Insurance for
active employees and City Council members, with no change in benefits or
rates for the calendar year 2012.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized.
2
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 1st day of November, 2011.
ATTEST:/ I�
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Ana Barcia, Deputy City Clerk
1i TwA
Title: M/ Mayor Pro -Tern
_3-
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Ana Barcia, Deputy City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2011-182,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, November 1, 2011, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this d day of November, 2011, at Vernon, California.
(SEAL)
4:� —
Ana Barcia, Deputy City Clerk
4
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 2, 2.011
TO: Willard Yamaguchi, City Clerk/Risk Manager
FROM: Ana Barcia, Deputy City Clerk
RE: Resolution No. 2011-182 - A Resolution of the City Council
of the City of Vernon Approving and Ratifying the Actions
Taken by the Risk Manager in Establishing Lincoln National
Life Insurance Company for Life Insurance Benefits for the
Calendar Year 2011 and Approving the Renewal of Life
Insurance Benefits from the Lincoln National Life Insurance
Company for Active Employees and City Council Members for
the Calendar Year 2012
Transmitted herewith is a copy of Resolution No. 2011-182 referenced
above, which was approved by City Council on November 1, 2011.
Thank you.
AB:dj
Attachment
c: Karina Rueda
Resolution No. 2011-182
Agreement No. 11-118
RECEIVED
OCT 2 6 2011
CITY CLERK'S OFFICE
DA: October 24, 2011
Staff Report
Risk Management'
TO: Honorable Mayor and City Council
FR: Willard G. Yamaguchi, Risk Manager W
RE: Health Benefits Renewal 2012
Lincoln Financial Group Basic Life Insurance for Full Time Employees
Life Insurance 2011
RECEIVED
OCT 2 6 2011
CITY ADMINISTRATION
Due to inadvertence and/or mistake, Risk Management failed to submit a request to the Council
for approval of the 2011 life insurance program for employees.
Life Insurance 2012
FIA Insurance (FIA), the City's insurance broker for life insurance benefits, solicited quotes
from Lincoln Financial Group, Vernon's current life insurance provider, Aetna, MetLife,
Assurant, and Unum. Quotes were received from Lincoln Financial Group, Aetna, and MetLife.
Assurant and Unum declined.
FIA was able to secure a renewal of the basic life insurance policy for full time employees with
no change in rate from 2010. The cost of said renewal for calendar year 2012 is $10,111.20.
Aetna's bid was slightly lower than Lincoln, but considering the fact that Lincoln has been the
underwriter for at least three years with virtually no change in rates or coverage, and paid out a
claim earlier this year, Risk Management recommends Lincoln Financial Group. MetLife's bid
was higher than Lincoln and Aetna.
Fiscal Impact
Sufficient funds have been budgeted by each Department for this expenditure.
Recommendation
Risk Management recommends the ratification of payment to Lincoln Financial Group for the
2011 life insurance premiums for full time employees and the renewal of Lincoln Financial
Group for 2012 basic life insurance premiums for full time employees.
WGY/kr
Enclosure
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Juarez, Debbie
From:
Juarez, Debbie
Sent:
Wednesday, November 02, 2011 7:50 AM
To:
Rueda, Karina
Subject:
RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos.
2011-180, 2011-181, 2011-182, 2011-183
Ok, thanks. I will need copies of the communications for the file, please.
Deborah Juarez
Records 911a.uagementAssistant.
City of Vernou - City Cfer(s C ffice
4305 Santa TeAvenue
Vernon, CA .90058
(323) 583-8811
From: Rueda, Karina
Sent: Wednesday, November 02, 2011 7:49 AM
To: Juarez, Debbie
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182, 2011-183
Yes, our brokers and Ins companies negotiated the renewals and the confirmation was either verbal or by e-mail
communication.
From: Juarez, Debbie
Sent: Wednesday, November 02, 2011 7:48 AM
To: Rueda, Karina
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182, 2011-183
Are they being handled by e-mail communication again?
(De6orafi Juarez
*cords WanageruentA.ssistaut
City of Vernon - City CCerks Office
4305Santa TeAvenue
9,leruon, (fit 90058
(323) 583-8811
From: Rueda, Karina
Sent: Wednesday, November 02, 2011 7:46 AM
To: Juarez, Debbie
Subject: RE: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182, 2011-183
No agreements.
From: Juarez, Debbie
Sent: Wednesday, November 02, 2011 7:46 AM
To: Rueda, Karina
Subject: Aetna Medical and Aetna Dental and Lincoln National Life Insurance Policies Res. Nos. 2011-180, 2011-181,
2011-182,2011-183
Hi Karina. Are there going to be actual agreements associated with these resolutions?
DeGorat ` narez
Recordr WanngententAssistant
City of Vernon - City C, -rk,'s office
4305Santa EeA.venue
`iI'ernon, (,; 4 90058
(323) 583-8811
#moo // - Id:,2
Juarez, Debbie
From: Rueda, Karina
Sent: Monday, February 06, 2012 12:56 PM
To: Juarez, Debbie
Subject: FW: City of Vernon - Retirees & Life Ins Confirmation
Attachments: 2011 rptMain Letter. PDF
From: Ellie Jones [mailto:Elliej@fia-insurance.com]
Sent: Friday, February 03, 2012 10:04 AM
To: Rueda, Karina
Subject: RE: City of Vernon
Hi Karina,
It was good to see you today but for such a short time O.
Since there is no negotiation for retirees medical there was no need of confirmation, Also, the life insurance with Lincoln
was a rate pass and confirmation was verbally done — see attached
Thank you and let me know if any questions.
Regards,
Ellie
From: Rueda, Karina [mailto:KRueda@ci.vernon.ca.us]
Sent: Thursday, February 02, 2012 2:36 PM
To: Ellie Jones
Subject: RE: City of Vernon
Ellie — Is there anything for the retiree plans and the life insurance?
Karina
From: Ellie Jones [mailto:Elliej@fia-insurance.com]
Sent: Monday, January 30, 2012 10:02 AM
To: Rueda, Karina
Subject: FW: City of Vernon
This is my final email for medical and dental.
Thanks!
Ellie
From: Ellie Jones
Sent: Friday, October 21, 2011 1:53 PM
To: 'Radius, Robert'
Subject: RE: City of Vernon
Per Willard and Karina — medical plans are confirmed:
HSA 5 — HDHP — same as current plan — no changes
HMO High is the same as current with the exception of a $30 specialist —100% hospitalization.
Final Blended Rates — please see attached.
Thanks!
Ellie
Elizabeth Jones
Vice President
Manager - Employee Benefits
FIA Insurance Services, Inc.
Tel 626-395-9298 - direct
Fax 626-792-1130
Email elliej@fia-insurance.com
License N 0175794
From: Ellie Jones
Sent: Thursday, October 20, 2011 12:01 PM
To: 'Radius, Robert'
Cc: 'mikel@aetna.com'
Subject: City of Vernon
Importance: High
Hi Rob,
Dental Plan sold:
Flat Two Year Rate Guarantee
PPO
EE $57.37
EE+Spouse $122.51
EE+Child(ren) $116.49
EE+Fam!ly $189.76
DMO Plan 56
EE
$19.22
EE+Spouse
$36.51
EE+Child(ren)
$38.43
EE+Family
$54.77
Medical: Renewed
PPO — HDHP HSA 5 — BLENDED RATES
HMO HIGH $20 OV - $30 SPECIALIST —100% HOSPITAL
Vernon is asking for clear copy of the plan designs for 2012 with the new effective date of 1/1/2012 on the
document. They need this ASAP please.
Thankyou!
Ellie
Elizabeth Jones
Vice President
Manager - Employee Benefits
PIA Insurance Services, Inc.
Tel 626-395-9298 -direct
Fax 626-792-1130
Email elliej@fia-insurance.com
License 9 0175794
CONFIDENTIALITY NOTICE: This E-mail (including attachments) is confidential and may be legally
privileged. It may contain information which is confidential or prohibited from any disclosure under the HIPAA
Privacy Rule, Cal-GLBA or other federal or state laws. It is intended to be conveyed only to the designated
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This e-mail may contain confidential or privileged information. If you think you have received this e-mail in
error, please advise the sender by reply e-mail and then delete this e-mail immediately. Thank you. Aetna
CONFIDENTIALITY NOTICE: This E-mail (including attachments) is confidential and may be legally
privileged. It may contain information which is confidential or prohibited from any disclosure under the HIPAA
Privacy Rule, Cal-GLBA or other federal or state laws. It is intended to be conveyed only to the designated
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reproduction of this message by unintended recipients is not authorized and may be unlawful. Please reply to
the sender if you have received the message in error and delete this e-mail, along with any attachments, from
your computer. Please note that any personal views or opinions presented in this email are solely those of the
author and do not necessarily represent those of the company. Thank you
CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it may contain
confidential information that is legally privileged. If you are not the Intended recipient, or a person responsible for delivering it to the intended
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transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify the sender. Please destroy
the original transmission and Its attachments without reading or saving in any manner.
CONFIDENTIALITY NOTICE: This E-mail (including attachments) is confidential and may be legally
privileged. It may contain information which is confidential or prohibited from any disclosure under the HIPAA
Privacy Rule, Cal-GLBA or other federal or state laws. It is intended to be conveyed only to the designated
recipient(s). If you are not the intended recipient, you.are hereby notified that any retention, dissemination,
distribution, or copying of this communication is strictly prohibited. and that use, dissemination, distribution, or
reproduction of this message by unintended recipients is not authorized and may be unlawful. Please reply to
the sender if you have received the message in error and delete this e-mail, along with any attachments, from
your computer. Please note that any personal views or opinions presented in this email are solely those of the
author and do not necessarily represent those of the company. Thank you
n Lincoln
Financial Group
August 15, 2011
City of Vernon
4305 Sante Fe Ave
Vernon, CA 90058
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
RE: Renewal for Policy Number(s): 01-0109858
The Lincoln National Life
Insurance Company
8801 Indian Hills Drive
Omaha, NE 68114-4066
toll free (800) 423-2765
w .LFG.com
We are proud to provide your company with quality group products and services at a cost that delivers
sound value.
Each renewal period, we analyze current benefit and rate structures to determine the appropriate rates for
continued group insurance protection for your valued employees. This process includes recalculation of the
premium rates to reflect factors like:
• plan features
• demographics
• nature of business
• experience
• any adjustments to our underlying rate structure
Based upon our review, your renewal rates, effective 1/1/2012, are as follows:
per
The monthly premium shown is based upon current billed lives and volume.
We appreciate your business and look forward to the continued opportunity to meet your group insurance
needs. If you have any questions or if we can be of further assistance, please contact your local group
representative at 1-866-607-8011.
Sincerely,
Connie Ern
Group Underwriting
cc: FIA Insurance Services Inc
99 S Lake Ave #300
Pasadena, CA 91101
cc: Dori Lieberman
This letter serves as a policy amendment and should be kept with your policy.
Lincoln Financial Group focuses on making life easier for you by doing business
the way you want to do business - via the Web, telephone, IVR, e-mail and fax.
We are committed to being there when you need usl
Visit us on the web at www.jpfic.com or contact us at 1 (800) 423-2765.