HomeMy WebLinkAboutReso. 1983 - 133 - Approving renewal of contract with arthur k gallagher company for administration services of medical and dental program RESOLUTION NO. )5,/.3 -1-2D
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING RENEWAL OF CONTRACT WITH ARTHUR J. GALLAGHER
COMPANY FOR ADMINISTRATIVE SERVICES OF MEDICAL AND DENTAL
PROGRAM AND AUTHORIZING THE MAYOR TO EXECUTE SAME.
WHEREAS, the existing contract between the City of Redding
and Arthur J. Gallagher Company through Gallagher Bassett Insur-
ance Service for administrative services of the medical and
dental program for City employees will terminate July 31 , 1983;
WHEREAS, the City Council deems it to be in the best inter-
ests of the City to renew said contract for an additional term;
and
WHEREAS, it has been determined that this matter is categor-
ically exempt from the provisions of CEQA;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Redding as follows:
1 . The contract between the City of Redding and Arthur J.
Gallagher Company with Gallagher Bassett Insurance Service,
attached hereto as Exhibit "A" and incorporated herein, effective
July 1 , 1983 , is hereby approved.
2 . The Mayor of the City of Redding is hereby authorized
to execute said contract on behalf of the City of Redding.
I HEREBY CERTIFY that the foregoing Resolution was intro-
duced and read at a regular meeting of the City Council of the
City of Redding on the 18th day of July , 1983 , and
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was duly adopted at said meeting by the following vote:
AYES: COUNCILMEN: Demsher, Fulton, Kirkpatrick, Pugh, and Gard
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: None
' fro oal
'BA` AL EN GARD, Mayor
City of Redding
ATTEST:
C a.
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
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N ALL A. HAYS, C ty Attorney
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EXHIBIT A
July 14, 1983
Mr. James Bristow
Finance Director
The City of Redding
760 Parkview Avenue
Redding, California 96001
RE: Gallagher Bassett Insurance Service
Group Health Claims Service Agreement
Dear Mr. Bristow:
This will confirm our agreement to carry out the obligations of the service
organization for The City of Redding for the period August 1, 1983 through
June 30, 1984.
•
The service and administration will include the following:
I. GENERAL
A. Providing suitable facilities, personnel, procedures, forms and
instructions for the administration of claims under the Plan
Document. _
B. Assisting in the preparation of the Plan Document and any
changes thereto.
C. Assisting in the establishment of banking facilities to handle the
flow of benefit payments.
D. Preparing the descriptive booklets and identification cards.
II. CLAIMS
A. Determining, in accordance with the Plan Document, the qualifi-
cation of claims submitted, making such investigation as may be
necessary.
B. Making payment of the amounts due employees and their depen-
dents for medical services that qualify under the Plan Document.
C. Coordinating claims where other group coverages apply to the
same claim.
D. Providing advice on disputed or non-routine claims.
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III. ACCOUNTING AND CONTROLS
A. Providing the Employer with a monthly accounting of payments
made, with sufficient detail to provide for the audit and control
of funds used.
B. Claim cost control information furnished monthly and reviewed
periodically.
C. Submission of monthly claim experience reports.
IV. ADMINISTRATION
A. Continuing supervision of benefits with annual evaluation of loss
• fund and renewal requirements.
B. Marketing and placement of stop-loss coverage on a "best
efforts" basis.
C. Keeping informed as to trends in the employee benefit industry.
D. Ongoing availability for consultation on any employee benefit
programs.
Gallagher Bassett Insurance Service or Arthur J. Gallagher & Co. will not be
liable or responsible for payment of any Federal, State or Local taxes on
premiums which may be levied during the period of this agreement.
The annual service fee (exclusive of stop loss insurance charges) is
estimated to be $27,930 for the claims related services. The actual cost is
determined by the multiplication of the number of employees covered each
month times the monthly service fee rate factor. Based upon the number of
employees (490) covered at the time the proposal was presented, the
monthly service fee rate factor would be $4.75/employee. The fee is to be
paid on the basis of the actual number of employees covered each month.
In the event of cancellation of this Agreement to perform these services
with The City of Redding, Gallagher Bassett will continue to handle pending
incurred claims on the following terms: Gallagher Bassett Insurance Service
will receive ninety percent (90%) of the monthly fee for the first sixty (60)
days of services and seventy-five percent (7596) of the monthly fee for the
next thirty (30) days; 50% for the next 30 days. After one hundred twenty
(120) days, files will be returned to The City of Redding in an orderly
manner. The City of Redding agrees to indemnify, protect, save and keep
harmless Gallagher Bassett Insurance Service and Arthur 3. Gallagher & Co.
from any and all loss, cost, damage, or expense arriving out of the
administration and handling of any claims after these records and files have
been returned.
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This Agreement entered on this first day of August between The City of
Redding and Gallagher Bassett Insurance Service.
GALLAGHER BASSETT INSURANCE SERVICE
a division of Arthur J. Gallagher & Co.
Ja , s R. Enright, Vice Presid j t
• CCEPTED:
• B The City of Reddin Date July 26, 1983
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