0468RESOLUTION NO. 468
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH THE CITIES OF
ROLLING HILLS ESTATES AND RANCHO PALOS VERDES
COVERING A JOINT INSURANCE PROGRAM FOR HEALTH,
MEDICAL, DENTAL, AND LIFE INSURANCE.
THE CITY COUNCIL'OF THE CITY OF ROLLING HILLS 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, and life insurance; and
WHEREAS, such a joint insurance program will result in
cost savings for each of the three cities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS 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 27th day of
April, 1981..
0ayor of .the City -6f Rollir�g Hills
I hereby certify that the foregoing Resolution was duly
adopted by the City Council of the City of Rolling Hills,
California at a regular meeting thereof held on the 27th
day of April, 1981, by the following vote of the Council:
AYES: Councilmembers Pernell, Rose, Swanson
Mayor Crocker
NOES:. None
ABSENT: Councilman Heinsheimer
ty Clez'ic ` �.
1
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.
U
U . NOW, - THEREFORE, .it is agreed as . follows
1. The three aforementioned Cities will enter into a one year
contract with a. renewable option clause with the Liberty
Life Assurance.: 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 be 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 IB 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.
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 o . ut
of those funds left in escrow and notify the insurance-,
coinpany 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
CITY MANAGER
DATE:
RANCHO.PALOS VERDES
CITY MANAGER
ROLLING HILLS ESTATES
CITY MANAGER
ROLLING HILLS
E X H I B I T 7 A"