Resolution 09946CITY OF ALAMEDA RESOLUTION NO. _9946
AUTHORIZING EXECUTION OF AN AGREEMENT FOR A CITY OF
ALAMEDA/BUREAU OF ELECTRICITY LONG-TERM DISABILITY
INSURANCE PROGRAM
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ALAMEDA that
the City Manager and City Clerk be, and each hereby is, authorized
to execute and to attest to, respectively, on behalf of the City,
an agreement with Alameda Associates for services in conjunction
with a Long-Term Disability Insurance Program for the City of
Alameda/Bureau of Electricity, said services to be performed as
outlined in the staff report entitled "Long Term Disability
Program", dated December 1, 1982, a copy of which is attached.
\I
BE IT FURTHER RESOLVED that Alameda Associates is hereby
named Broker of Record for this program.
Honorabi dyer dud
-dCpa Ili! CO I Ale MO r Member oi t.he City Couoc
Fror;w • Robrt L. Nonder
Assistant City Hang.
December 1, 1982
Subject: Long Term Disability Program
Background
Quotations for the Long Term Disability (LTD) insurance
program were received November 19, 1982, from Alameda Associss,
Levinson Bros., and Saylor & Hill Co. Each of the brok,ars
submitted proposals from the same two .underwriters: Si
Insurance Company and Mutual Benefit Life. The consultant •••• rrn
of Mortenson-Riee Associates reviewed the'proposals and has m6de
5 recommendation, which is included in the attached report. This
is one of those rare instances where the staff recommendation is
• • different from that of the C7onsultant, although the same result
will most probably be achieved.
• • Discussion
The prices as submitted for the 30-month period are
shown below, with the Levinson Bros. quotation representing the
only price difference.
Alameda Associates
Levinson Bros.
Saylor &
Non-guaranteed Guaranteed
$113,287
113,287
113,287
$141,436
144,209
141,436
However, as bointed out in the co16uitant's report, .Saylor & hill
• provided several program and rate options which, while
interesting, were not called for in the specification. 11 of
the other companies could have provided :3lml6r options Lit
L esponded. strictly to what was called for in the spectficott 0
After discussing this with the Regional Group Director of
Benefit Life, 1 have concluded: that the same rate and guanh •ae
as presented by SayLD1. & Hill, or 'potter, could be secured bv.
of the competing agehLn, once the City selects its brok .or
this particular precncm. What this means is that the Council an
Re: Resolutions No 16
12-7-82
Honorable Mayor and PacisT: 2
Members of the City Council December 1, 1982
select any one of these three as the City's broker and they in
turn could provide the same rate guarantee as Saylor & Hill using
Mutual Benefit Life. However, since Alameda Associates is the
City's life insurance broker (in addition to being our Workers'
Compensation broker) , there is every reason to believe that by
combining the life and LTD programs an even greater savings csuld
be achieved, both in terms of premiums and in the cost of
billings and double enrollment. I have subsequently discuF.,;ed
this with the consultant, who concurs with the assumptions and
the expected results.
Recommendations
Therefore, based on the above it is recommended tH,at
(1) the City accept the 30-month Mutual Benefit Life not to
exceed rate guarantee subject to census and salary changes as
follows:
1/1/83-4/1/84
4/1/84-4/1/85
4/1/85-6/3/85
.86% (15
1.10% (12 mos
1.20% ( 3 mos)
(2) Alameda Associates be named Broker of Record for this
program, and (3). the broker be instructed to approach Mutual
Benefit Life with the intended desire of reducing the LTD costs
or the life insurance cOsts.
Respectfully submitted,
Robert L. Wonder
Assistant City Manager
NEW:pk
APPROVED IO PORWARDING
TO THE CITY COUNCIL
t
difice of .the'rCity Manager
I` the undersigned, hereby certify that the foregoing Resolution
was duly and regularly adopted and passed by the Council of the
City of Alameda in regular meeting assembled on the 7th of December, 1982,
by the following vote to wit:
AYES: Councilmen Dioment, Gorman, Sherratt, Stone and President Corica - 5.
NOES: None.,
ABSENT:, None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 8th day of DecemOer, 1982.