HomeMy WebLinkAboutCC RESO 16,002RESOLUTION NO. 16,002
RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
A LETTER AGREEMENT WITH ROBERT B. CLARK
TO CONTINUE GROUP INSURANCE CONSULTING SERVICES
WHEREAS, the City of National City contracted with Robert B. Clark for
Group Insurance Consulting services from April 15, 1988 to April 15, 1989;
WHEREAS, Mr. Clark has provided effective assistance to the City;
WHEREAS, there is a continuing need for such services;
AND WHEREAS, Robert B. Clark has submitted a proposal to continue to
provide such services;
NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of
the City of National City hereby awards an agreement to continue GROUP
INSURANCE CONSULTING SERVICES TO:
ROBERT B. CLARK
BE IT FURTHER RESOLVED by the City Council of the City of National
City, California, that the City Manager is hereby authorized to execute on behalf of
the City, a letter agreement between ROBERT B. CLARK and the City of National
City to provide group insurance consulting services, a copy of which agreement is
attached hereto as Exhibit "A".
PASSED and ADOPTED this 20th day of June, 1989.
GE . Ws
GEORG H. WATERS, Mayor
ATTEST:
Lor Anne Peoples,
i
Clerk
APPROVED AS TO FORM:
46G
George H. Eiser, III, City Attorney
ROBERT B. CLARK • GROUP INSURANCE CONSULTANT
June 8, 1989
Mr. Richard D. Schulman
Personnel Director
City of National City
1243 National City Boulevard
National City, Ca. 92050
Dear Mr. Schulman:
This letter constitutes my proposal to provide group insurance
consulting services to the City of National City for the period
April 15, 1989 to April 15, 1990.
BACKGROUND
From 1978 to 1988, I provided group insurance consulting services
to the City of National City while associated with a local
consulting firm (the last five years as an independent contractor).
For the period April 15, 1988 to April 15, 1989, I provided
consulting services as an independent consultant. The primary
service provided in the last year was to negotiate a favorable
renewal action with The Travelers Insurance Company regarding the
City's medical and dental plan. A rate increase of 22.4% was
requested as of July 1, 1988, but The Travelers was persuaded to
continue all rates and in fact to waive premium for two months,
resulting in a de facto rate decrease of 16.7%. (A similar waiver
of two months' premium was also negotiated in 1987.)
PROPOSED CONSULTING SERVICES
As of July 1, 1989 The Travelers is requesting an increase in
premium for medical/dental coverages of 109.4%, resulting in an
annual premium increase of about $252,000. The following services
regarding this renewal are being proposed:
1. Analyze the current financial status of The Travelers plan, and
determine whether funds in the Special Experience Rating Account
(SERA) are available to subsidize renewal rates.
2. Review the renewal calculation, and determine whether the
proposed rate increase is justified.
3. Review the options available to the City regarding establishing
a more cost effective plan. This includes determining the
feasibility of offering additional health Maintenance Organizations
(HMO's), of offering the health plans sponsored by PERS, and of
finding a replacement for The Travelers indemnity plan.
4. Assist the City with implementation of a revised program,
consisting of either additional HMO's or the PERS health plans
(life insurance and dental would be retained by The Travelers).
386 EAST 1I STREET, SUITE 209-201 • CHULA VISTA, CA 92010 • (619) 482-1518 EXHIBIT A
Richard D. Schulman
June 8, 1989
Page 2
5. Meet with City management and employees to describe any proposed
new plans.
In addition to the above services relating to the renewal, the
following services are proposed:
1. Review The Travelers financial results for the plan year ending
July 1, 1989, and ensure that all funds are properly credited to
the City.
2. Assist with any problems with administration or claims
adjustment.
3. Advise regarding the effect on the City's group plans of any
state or federal legislation (except Section 89, which is covered
by a separate proposal).
FEES
The annual fees for the above services will be $3,500, including
all expenses.
If competitive bids are solicited and evaluated for dental
coverage, the additional fees will be $500.
If competitive bids for an indemnity plan replacing The Travelers
are solicited and evaluated, the additional fees would range from
$500 to $1,500, depending on the response to the request for bids.
(If no company bids, the maximum fee would be $500.)
QUALIFICATIONS
My background includes 12 years' experience as a group underwriter
with three major insurance companies, as well as 11 years'
consulting experience. As a consultant, I have provided services to
some of the largest employers in San Diego County, such as the City
of San Diego, Sea World, the San Diego Zoo, Grossmont District
Hospital, and Scripps Memorial Hospitals.
If this proposal is accepted, please sign the enclosed copy of this
letter and return it in the envelope provided.
I have enjoyed very much working with you and other members of City
management, and look forward to continuing to be of assistance to
the City of National City.
Sincerely,
Robert B. Clark
City Manager