CC RES 1981-032 RESOLUTION NO. 81-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT
WITH THE CITIES OF ROLLING HILLS ESTATES AND ROLLING HILLS
COVERING A JOINT INSURANCE PROGRAM FOR HEALTH, MEDICAL, DENTAL,
LIFE, AND PRESCRIPTION DRUG INSURANCE.
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES RESOLVE AS FOLLOWS:
WHEREAS, the cities of Rancho Palos Verdes, Rolling Hills Estates
and Rolling Hills have expressed an interest in entering into an agreement
covering a joint insurance program for health, medical, dental, life, and
prescription drug insurance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
DOES RESOLVE AS FOLLOWS:
The City Manager is hereby authorized to execute the agreement with the
other two cities, as contained in Exhibit "A", which becomes a part of this resolution.
PASSED, APPROVED AND ADOPTED THIS 21st day of April, 1981.
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MAYOR
ATTEST:
DONALD F. GULUZZY, CITY CLERK &
EX OFFICIO CLERK OF THE COUNCIL
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CI CLERK
I HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. 81-32 approved and adopted by the City Council of the City of
Rancho Palos Verdes at a meeting thereof held on the 21st day of April, 1981.
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AGREEMENT COVERING A JOINT INSURANCE PROGRAM FOR -
HEALTH, MEDICAL, DENTAL, LIFE, AND PRESCRIPTION DRUG INSURANCE
WHEREAS, the cities of Rancho Palos Verdes, Rolling Hills Estates
and Rolling Hills desire to enter into a joint health, medical, dental
life, and prescription drug insurance program for the mutual benefit of
all three cities; and
WHEREAS, under such a joint insurance program it will become neces-
sary for one of the three cities to become the "Lead City" in the ad-
ministration of the program; and
WHEREAS, as a "Lead City" that City will be responsible for the
collection of premiums from the other two cities, the preparation of
the necessary monthly premium reports and the dispatching, of such
reports with the necessary monies.
NOW, THEREFORE, it is agreed as follows:
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1. The three aforementioned Cities will enter into a one year
contract with a renewable option clause with the Liberty
Mutual Insurance Company to supply health, medical, dental,
,..� life and prescription drug insurance for all of the full time
employees of the aforementioned three Cities. This contract
shall be at set premium rates for the first full year.
2 . The designation of the "Lead City" shall he the result of a
mutual agreement between the three Cities in the program.
3. The two "Non-Lead Cities" shall make an initial deposit
with the "Lead City" equal to three months premium at least
ten days prior to the start of the program. Thereafter,
these two Cities shall make a monthly premium deposit with
the "Lead City" at least ten days prior to the insurance
company due date. The amount of the deposit necessary
shall be determined by the "Lead City" based upon the
insurance company 's invoice.
E X H I B I T " A "
AGREEMENT COVERING A JOINT INSURANCE PROGRAM FOR HEALTH, MEDICAL,
DENTAL, LIFE, AND PRESCRIPTION DRUG INSURANCE
PAGE 2
4 . An amount equal to two months premium for the two "Non-
Lead Cities" shall be held in escrow by the Lead City.
Should any one of the two "Non-Lead Cities" fail to make
the necessary premium deposit, the required premium shall
be paid out of those funds in escrow.
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5. Should either of the two "Non-Lead Cities" fall 30 days
late in the payment of their monthly premium to the "Lead
City" , the "Lead City" shall pay the required premium out
of those funds left in escrow and notify the insurance
company in writing of the termination of the coverage for
the City failing to pay the agreed upon premium amounts to
the "Lead City" . Any funds originally deposited in escrow
by a terminated City and remaining in escrow following said
termination shall be returned to that City.
6. The cost of the "Lead City" employees time spent on the
administration of the monthly premium reports shall be
covered by the interest earned on the investment of the
funds being held in escrow by said "Lead City" .
7.. Prescription drug insurance shall be applicable only where
a generic drug exists. Non-generic drugs will not be subject
to the drug insurance.
CITY MANAGER - DATE:
RANCHO PALOS VERDES
CITY MANAGER DATE:
ROLLING HILLS ESTATES
CITY MANAGER DATE :
ROLLING HILLS
E X H I B I T " A "