1991-18 RESOLUTION NO . 91 -18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE ELECTING TO PARTICIPATE IN THE EMPLOYEE HEALTH
BENEFIT PLAN OF THE SOUTHERN CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY .
WHEREAS, pursuant to the provisions of Section 6500 etc . , of the
Government Code of the State of California , the Southern California Joint
Powers Insurance Authority was created by a Joint Powers Agreement; and
WHEREAS, the Southern California Joint Powers Insurance Authority has
undertaken a study to determine the feasibility of providing an Employee
Health Benefit Plan for its Member Cities and other covered agencies; and
WHEREAS, the Authority ' s Consultants and City Managers Committee have
prepared a general plan for Employee Health Benefits including self-funding
provisions and excess stop-loss insurance coverage ; and
WHEREAS, the Executive Committee at a regular meeting on April 25, 1984
approved said plan , retained Cal-Surance Group to service as brokers and
market the plan , and retained a third party administrator to administer the
program; and
WHEREAS, the program was approved by the Executive Committee of the
Authority, as outlined in the report of Cal -Surance Group, dated April 6,
1984, and the City Manager ' s memorandum report of April 14, 1984 along with
- Exhibit "A-H" ; and
WHEREAS, the Executive Committee of said Authority has determined said
project as approved and modified by it is feasible and should be
implemented to become legally effective to participate do so by Resolution
filed with the Insurance Manager ; and
WHEREAS, the Insurance Manager and City Manager ' s Committee were
authorized by the Executive Committee of the Authority to put into effect
said plan effective July 1, 1991, with all reasonable and necessary
modifications to make the same effective for a term of three ( 3 ) years
subject to such approval , amendment, and/or revocation that the Authority
may from time to time adopt.
NOW, THEREFORE, BE IT RESOLVED :
SECTION 1. That on the effective date of this Resolution , but in no event
prior to July 1, 1991, the City of Grand Terrace elects and agrees to
participate in the Employee Health Benefit Plan of the Southern California
Joint Powers Insurance Authority, as above outlined , and prior to that date
to :
A. File with the Authority a Certified copy of this Resolution authorizing
participation in the program.
RESOLUTION NO. 91 -18
Page 2
B. Pay the initial premium fixed by the Authority .
C. Provide coverage for one or more Officer and employee for one or more
of the Authority ' s self-funded Employee Benefit Plans .
SECTION 2. By this Resolution , said City agrees to abide by the Employee
Health Benefit Plan of the Southern California Powers Insurance Authority,
with amendments aforementioned , and as above outlined and the Mayor and
Deputy City Clerk are authorized to execute all necessary agreements,
acknowledgements or memorandums required for the City ' s participation in
said program.
SECTION 3. The City, by this Resolution , commits itself to participate in
the J P I A Employee Health Benefit Plan , as above outlined , for a term
commencing on the effective date of this resolution .
SECTION 4. The Deputy City Clerk is directed to file a Certified Copy of
this Resolution with the Southern California Joint Powers Insurance
Authority , 4852 La Palma Avenue , La Palma , CAlifornia 90623 and this
Resolution shall be effective immediately upon adoption .
PASSED, APPROVED AND ADOPTED this 27th date of June 1991.
ATTEST:
AV ^D �-
Ue p u y City Clerk(/
RESOLUTION NO . 91 -18
Page 3
I BRENDA STANFILL, Deputy City Clerk of the City of Grand
Terrace , do hereby certify that the foregoing Resolution was introduced and
adopted at a regular meeting on the 27th day of June , 1991, by the
following vote :
AYES : Councilmembers Carlstrom, Christianson and Hilkey; Mayor Pro
Tem Grant; Mayor Matteson
NOES : None
ABSENT : None
ABSTAIN : None
Deputy City C er
Approved as to form:
City ttorney
INSURANCE -AUTHORITY
-EXECUTIVE COMMITTEE•~
TINS OF CCNTEN S
PROGRAM _�f,���i TS ANC C�E���I�RA;ES
A . MEDICAL,
B. LIFE/ACCIDENTAL DEATH DISMENERMENT
C. DENIAL
�1 p STOP-LOSS
` OP- OSS
I I , u�BRAT I��N CiF F (� RAN1
A , DEPOSIT RATES
O. FINANCIAL
I , FIRST YEAR FUNDING PROJECTIONS
2 , RETROSPECTIVE FUNDING
C . PARTICIPATION
D. ENROLLMENT
F . CLAIMS PROCESSING
1
AA
E
Mir
OURANrE
� 1
' - ,7
April 1984
Honorable President and Members Of
uXesutwve col-i'm y"
T? i.s letter and its attacbme.nvs represent our report
c_, I.,hw Zr I o y .er Pr o gr-arns we are recommending be
of f'er,�d to "(tJ ?Ij') Meri ers . The programs themselves have been
�esJgz)ed with the �on-vIderable assistance of Mr . NI . A . Cornell
of Warren , if cveIFb a-nd miff do and of'he prof ession-al staift
o: ehe Authority , Mir . Ij m ;:acre and: 'Xr. George Anas.t . Their
5��> s4 nC•e '+; S invaluable , 'and contr bUted -significantly to
vi,!gat we �,e.: .eve will be a s:iccessful. progra ,
1
we are prepared Ito offer c progr am,, that
u ,% +Jc:;i "J e.-1n:idr.0 iti:, Yv e rdb>rr)vr e Jens1 ve ve iS laf i t.J f 0µ°e
AN ;,eds ., aI cP. e dncb 'aC ,' nq siEn':1. c a i i t t'CoS .
C-cn.;aM;;men `i pr0v1 :MonS !
... 4. f f� 4.nd Act 66en to DP,a h 6' L.S.. em er)be r?i P,nt
a
Dental Care. and
Vision P &re
These prog rwlr,s also od ?r Members the oppolrtl�nity C4
1 , Any „savings that may accrue under the
program !
2 . The flexibility to crpvide benefits that
are more or less than the "core" plans ,
an d
ae `TIhe ability to manage the program In the
future tnrouSr: analysis of claim) loss data .
•a
;���ncr rt ? a t' a,d�rit• Sk,eQur- ve 0 mittee
Apr' '��
Il-D .
Thiu;s:. 'sae>reA ! be Calavdllabie t• ,rough
or se l %- Uqi d de Yr ogn-...mm , scimin is 4} er ed b.v µ ad-
minlstr"error, with insurance SC,:)P-lcss protection a�.ain+t
ev5, jcn: w,h wre 5ie.,! ected aft' n Istr7tvrs prInting of ate
irC`e ` 'd a ri tli a arid sat-;o Lin-ceym.env 1",ateria i<.nd es-
4; s p s ' o e.at-i6ns for open enrollment Teetin s
der .:w �.,};i;�� c�� s �. a� d � d 1� �� 1z
�.o• np r;a+1 `:a ra ay p,artii pate by b ,
�!' ? �,!? te Ali'^ w :!r 7i�Y$LG' the or`tjrr am ' n greater
�e ; 1 a W z'>G:, ��! r;dar � t�r "li �llYol u'� � v,! C�, d. ScvsSlr,Ey
S r.i Ar" 41C r e's dent
a .i•.i t 'Y M1BU..6. t L U
Y
`�1 e re s?-dc-r, N
c-n .6 osu r^1.s
.T 1_1 f•a— 1 _. _` 1 VJ G J_ 1 _ = 1 � tir .. _ .-.
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TO: LL2 Executive s\f j L A YY« y,`J:}-1y�u'� is 4 tee
j alr �s 0. Ramsey, greeddent
Alex H, Bearium, Vice P esiaent
ArMarldo Mtge, Secretary
Cecil N . G.xeen, Member
I,eonard Loy , Member
Frank Palacio, Member
Roy L. Paul, Member
Albert. G., Perex, Member
James Van Horn, Me,Taber
Fz2UM: Gaylord F. Knapp, Chairztl—
DATE ��_-'` �
--NI-
City Manager ' s CctrGini o April. 7 A , 1984
The City Ma-lager ' S COO-mit+tee, is ze ,x1ar �rtµetmrx*¢ �'
Monday , April. 16 , 1984 , reviewed, after .Can exturisLve
presJitatlon by Our consultants, the att shed p:e ^gt rrar
Cal-Svtance dated April 5 , 1984 (4v�s.ibit A, I deScribin- and
recommending a health insurance pro ll a- 91r The attendees
were:
Dave Caretto, City of Signal Mill
Howard Chambers, Cite of. La%ewood
Pete Cornell, Warren:, 14cVeigh G r f . n
Maria Edwards, Ci�y Of Bell Gardens
Jim Hall, Cal.--Surance
Gaylord F. Knapp, City of Cerritos
John Mackerer, ' Cal-Surance
Jim Moore, SCjPIA
MS.' Moscow, Cal. wellness Program
Don Nuttall., Casty of Santa Fe Sprinos
Robert Puff, City of San Dimas
Jim Ram,Sey, City of Lawndal.e
`a Frank Ruiz, City of La Puente
hazy Sloan, City of La Mirada
April 18 , 1984
.� Page 2
After the pres�'r'tationi the City Manager la anl:i "ina�.T2ce
Committees zel/iewed the reCommend?ed health, °,nyvra Fce program
at length . Among the more prominent fraatutes �* .his pro r:ai-a
would be: z
1) Self-funded medical., derdtal and visual plans which t.ould
be opted for individual.l,y, or co le(,4 i ell y, by an , membe x
city.
2) A series of roost containment measilre to Q ,.o:naCioaI1V
reduce most high medical insuirance bt,i ,l,t at;to tie
programo.
3-) Memt,er cities could individually mtadil-E bh-elf pro{fir lns
-- and the claims Would automatically be �aken care Aa by
the administrator of t),e pzograme
4) Extremely co:aprehensive health data wou`?d t;-- by
individual employee and aggregated into they C ty
Authority as a whole to help ► s out in sbibS;e-quen- war ' s
placement of our insurance,
5) The use of a Lloyd' s of; London stop loss policy which
would eliminate any individual c?ae,m exyos -re O: !550r000
up to $9500000 .
6) The advantage of Joining an experience rated he tth
program whenever a city' s current proqram expire-E
7) A pool arrangement whereby losses at tUje l,, wer, esjd woOd
be absorbed by the employer and Losses at tde Upper end
Would be absorbed by a pool with the max i,r:1U M �{ernb¢r loss
per claim of $4 , 500®
E) Two deductible options for major medical wolu d be
availabze:
a. $200 per individual./$400 per family
b, $500 per individual./$1000 per fu;nily
�,'' 9) Within the above btlt` dredu 0.1 e�(s�:, `i _ _ '•' _. � ���.e
April 181 1984
Page 3
10) The program utilizes 10. all of its cotiawra,ge Cat' GOe ies,
major medical, dental, and vision, 1 fai&- y 4§
coverage which should heat or alaw s,C oupa?ca4e �aa,ny o.,
our cities' present health insurance programs,
By way of backejcoun3i Cal,-SQr,-).nc,--- attempted Since
ALL�ersb�r ;
the placement of ou J?I%A health insurance wit:r ti fulla>
insured program. tl,ris proved to be Impossible, a is
plan was designed as the best remain ng a?t-ev awi,ve,
The plan is intended to achieve a minimum 10% sa.v ing s in
health insurance costs, wh.i.l.e at the vax;e tirme llowir g t-he
ultimate in flexibility considering the faot that this ire�ra
is one which will be part of the Meet and "OnAlec process in
all of our cities , As with our other i.nsurar,-- p-.a, . after.
the first, few years of existence, we hope to fine tune thL�M
with much beater data available to us than currently exiS
and realize greater savings in our excess Insurance costs ,
etc,
r�
While there is no absolute way of knowing how many cities for
mere importantly, how many employees, would. oPt for this
program, it is hoped that by ;he end of the first year that
we will be insu-ir:g over 1., 500 ",xaployees with cepei'A ents
is hoped that the program, should you cone r J , our
recommendation, would begin opera (Mrollment June, 1.931 .
RECOMMENDATION
To implement the JPIAs health insurance progfa m, as with our
liability and worker ' s compensation proaraMS, we "U' d
recommend utilizing the consultant' s basic report; as the
general administrative plan with moaificationv as indicated.
below. To implement this programs we xe(;owunend that the
SCJPIA Executive Colivnittee take the following actions,#
1.) Adopt the report to the Executive Committee from Cal-
Suza.nce or, ::he health insurance program, dated April 5,
1554 , as the basic implementing guidelines for this
program, (EXEIBIi' A)
2) Adopt the recommendations for "Implementat ion of Employee
Benefits Program" dated April. 17 , 1.984 to the Executive
Com.mi.ttee from Jim Moore: Program Coordinator , 'EX81BlT
i' B)
L
.UN— IS-A— 4I WELT 1 S c`:f=.JPIA
i"mot •'
SCJPIA txeouLive Co=4$.ttee =:
April, 1.8® 1984 .,
Page 4
a. Delete page i- of the f'al-S°uranCe re;�o� � ��hIt is
superseded by 'Chi,- following policy ter mm����r��4ios3�
b. Any or all of the proposed health.. �sisl,76 zraf_;e p�f�gr.zm
could be utilizedit.
by a member ca in trs i.;sd al
components , including majo4 medi.c.a,l , isrY.a1.� dental
aDd term life at a flat Late of "10 , 00
,
c. perwit other individually neq<�niated adju traents
between the cities and the insurance auths-n ity to
provide More flexibility in the e"!eal.th insurance
e
offerings and to be separately administered,
d, Approve the l..os,s pooling plan, as indicated in E"XHIIBIT
C,
r
e. Approve, for the excess covet:a e of the major ; r her-
the Lloyd ' s $30tO O threshold to $950 , 00 per cja.ia3.
(EXHIBIT D)
f, Part.-turtle e.irp?oyeeS would not be cove ;d 'this
plan,
g. The rate Sche'dule for major medical is hereby adopted
as EXHIBIT I;-I, with the al-beam iv€ thre e " a- d r tn.
schedule adopted as EXHIBIT? E-2.
h. Visual rates will be as indicated on EXbalBI F:
i , Dental aPd orthodontia rates will b4 as indicated o'n
tXHSB1T G.
j . Guoup life rates will be as indices-ed on
k. A minimum three vear memberzhilp to by .—equired when a
city initially joins.
. Where will be an open enrollment per acid and time a
member citxy' s current health insurance policies lapse,
irrespective of whether or not it coinii,ides wit-h the
- JPIA health insurance year.
l
M. A retrospective anQ-lysls will be done annually are with
general liability, and a formula will be de-gelopod for
refunding a portion of a Ci.ty' s gees or cone-rse y,
billing them for any cosh incurred over their
deposit
TL,H— 1 `_+ E:D 1 r �c =,_ FP'
SCJPXi% Executive Committee
April 18 f 1984
page 5
4) The City Manager ' -d ait{l Fiiaance Corrum-6 `..,t,c af1per
interviewing three presentations, that
, 3�>q
<_'^h
Street be selected as t� � adaiiµist �ar1r ��r the
insurance claims.
5) To implemer't ji. and 42 as
the . PIA s,-a�f tv send out copies of 'Chi - report t t;• all'!
Authority members, along wits, thei� re;����r �na.� �:ion to
review it in conjunction wit, t -teir present taFa�,th
insurance, an. it they concure to return a resolut.ican
prepaz'ed by the Authority Attitarney, acopt:e_4 by their Ci�t,
Council indicating their intent to pl—Uticipate ir; this
program, An adequate per, fr_i- of ti,�..e EQ�r rp it l e ; should 'ne
allowed.
-- P j m
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