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Home My WebLink AboutReso. 1990-476 - Authorizing contracts with Anthem Companies, Union Mutual Life Ins. and Amend Agreement to Administer Health Care plan . � � RESOLUTION N0. � 'a � A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING ENTERING INTO AND AUTHORIZING THE MAYOR TO EXECUTE CONTRACTS WITH THE ANTHEM COMPANIES (FORMERLY KNOWN AS AMERICAN GENERAL GROUP INSURANCE COMPANY OF CALIFORNIA) AND UNION MUTUAL LIFE INSURANCE COMPANY FOR GROUP BENEFIT PROGRAMS, AND AN AMENDMENT TO THE AGREEMENT TO ADMINISTER HEALTH CARE PLAN WITH CONCEPT ADMINISTRATORS INC . WHEREAS , pursuant to the terms of the attached Report to City Council ( forming pazt of this Resolution) dated September 11 , 1990 , the Director of Personnel Services has recommended the following: ( 1) Renewing the City ' s contract with The Anthem Companies (formerly known as American General Group Insurance Company of California) for insuring employee life and dependent life insurance benefits , as well as the City' s excess health and dental policy, for the period October 1 , 1990 , throuqh June 30 , 1991 ; ( 2) Changing from Standard of Oregon to Union Mutual Life Insurance Company for insuring City employees for long-term disability; ( 3) Entering into a contract with Union Mutual Life Insurance Company for insuring City employees for long-term disability, for the period October 1 , 1990 , through June 30 , 1991 ; and a 0 � J � � � (4) Entering into an amendment to the Agreement tc Administer Health Care Plan with Concept Administrator: Inc . for the period October 1 , 1990 , through June 30 , 1991 ; and WHEREAS , based on said recommendations , City Council deem; it to be in the best interests of the City to enter into sai� contracts/amendment; and WHEREAS , it has been determined that this matter i< categorically exempt from the provisions of the Californi� Environmental Quality Act; NOW, THEREFORE , IT IS HEREBY RESOLVED by the City Council of the City of Redding that the City enter into the followinc contracts/amendment in the amounts of and/or rates set forth or the attached Report to City Council : 1 . A renewal contract with The Anthem Companies ( formerl} known as American General Group Insurance Company of California) for insuring employee life and dependent life insurance benefits , as well as the City' s exces=. health and dental policy, for the period October 1 , 1990 , through June 30 , 1991 . 2 . A contract with Union Mutual Life Insurance Company foz insuring City employees for long-term disability, foi the period October 1 , 1990 , through June 30 , 1991 . -2- � � 3 . An amendment to the existing Agreement to Administer Health Care Plan with Concept Administrators Inc . for the period October 1 , 1990 , through June 30 , 1991 . BE IT FURTHER RESOLVED that the Mayor of the City of Redding is hereby authorized to execute the necessary contracts/amendment when available , on behalf of the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding on the aforesaid documents , when appropriate . I HEREBY CERTIFY that the foregoinq Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 2nd day of October , 1990 , and was duly adopted at said meeting by the followinq vote: AYES : COUNCIL MEMBERS : ArnesS , Dahl , Fulton, MosS R Buffum NOES : COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS : Plone ABSTAIN: COUNCIL MEMBERS: Plone i L/ / i ANCY UFFUM, ayor Ci � of Redding ATTEST: FOR j PPROVED: �.��./� /./.�//,�t'/' -�-�li ETHEL A. NICHOLS , City Clerk NDALL A. HAY , City Attorney -3- . . . .. � � . � BUSIPIESS INSURANCE SERVICES we V ake t�.Dinerence Bene�it Spec�alis�s September 6 , 1990 Mr. James Bristow, Personnel Director CITY OF REDDING 760 Parkview Avenue Redding, CA 96001 RE: RENEWAL ACTION 10-1-90 Dear Jim: Enclosed is our report and conclusions concerning the Health Plan renewal . Originally, our renewal date was scheduled for September i , 1990 . In an attempt to bring the plan renewal date in line with the City' s Fiscal Year and to involve the new Risk Manager, Barry Mlinarcik, in the renewal proceedings, we were able to negotiate a shortened 1990-91 plan year with American General . American General has agreed to hold the current rates through September 1990 and to have the new rates become effective from October 1 , 1990 through June 30 , 1991 . We are very pleased to present American General ' s renewal proposal . It is indeed one of the best overall renewals we have seen in recent months . Our fixed costs ' creased_ by approximately 16� and the_m�ci�p�p. cleims liability received only a 2€ increase . Originally, the life rate £ook the largest--"hit�� from . 22 to . 26 ; however , we have been successful in negotiating a . 02 reduction in the renewal figure . The 1990-91 life rate will be . 24/1000 which translates to a 9� increase reflective of the increase in the population and average age . As is our normal procedure , we conducted a market analysis to verify that our renewal rates are indeed competitive . After considering approximately thirty different markets , we sent RFP ' s to sixteen of them. �'hose who a i nea�a�a so because they felt they could not be competitive and we received quotes from ten others . I have presented three of the ouotes in detail and briefly outlined the fixed and maximum costs of the others aithin the comparative analysis section . The results substantiate the fact that we have received a very fair renewal from a quality carrier. 4i Quail Court, Suite 3�3, Walnut Creek, Calitomia 94596, (415) 947-183� FAX (415) 947-t364 AFFILIATE OFFICES: Denver, CO • Houston, TX . Los Angeles, CA . Phoeniz,AZ . Salt Lake Ciry, UT . Seattle, WA � , . ., � r Mr. James Bristow September 6 , 1990 Page 2 Jim, there may be a couple of carriers who would be willing to "buy" the stop-loss coverage at a lower rate; however, we must always be very wary of this ploy because they will almost always come back upon the following renewal with an exorbitant increase because our ability to move tvice in two years would be limited. We also decided it might be time to compare Concept's administration costs against some alternative TPA' s . This evaluation is also included with the comparative analysis . Lastly , we marketed the Long Term Disability coverage for al: employees except Police and Fire. I believe we may have a cost effective alternative to the current Standard of Oregon plan. It would probably be good to discuss it in person as there are a number of possible enhancements that can be offered. Jim, I look forward to meeting with you and Mr. Mlinarcik to discuss this report in detail and to perhaps discuss our strategy as we look to the future . Sincerely, (��?�� -�� Charles E. Bertolina, Principal cc : Barry Mlinarcik , Risk Manager