HomeMy WebLinkAboutResolution 1979 - 0055TLW p,’
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RESOLUTION NO.79-55
ESTABLISHING A PROGRAM OF LEGAL SELF—INSURANCE
BY THE DISTRICTS RE MEDICAL/HEALTH INSURANCE
A RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,
7 AND 11,ESTABLISHING A PROGRAM OF LEGAL SELF—
INSURANCE BY THE DISTRICTS RE MEDICAL/HEALTH
INSURANCE AND AUTHORIZING NECESSARY ACTIONS
FOR IMPLEMENTATION
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WHEREAS,the Fiscal Policy Committee and the Executive
Committee of the Boards of Directors have made studies relating
to the feasibility of being legally self—insured for medical!
health insurance;and,
WHEREAS,it has been recommended that the Districts be
legally self—insured for medical/health insurance for the
the reasons of significant cost savings that will likely be
realized,better programs will be established for the benefit
of District employees and a higher level of service of claims
can be expected;and,
WHEREAS,the Boards of Directors of County Sanitation
Districts Nos.1,2,3,5,6,7,and 11 approved implementation
of said self—insurance p.rogram;and,
WHEREAS,it has been further recommended that at such time
as the Districts become legally self—insured,that the services
of an administrator be retained to be responsible for all
aspects of claims processing and coordination with Districts’
staff and legal counsel:
NOW,THEREFORE,the Boards of Directors of County
Sanitation Districts Nos.1,2,3,5,6,7,and 11 of Orange
County,California,
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 The nonrenewal of the existing agreement
between the Districts and Connecticut General Insurance Company
toprovide primary medical/health insurance coverage is
approved effective July 1,1979,or as soon thereafter,as the
self—insurance program can be fully implemented;and,
Section 2 The General Manager is authori.zed to negotiate
and execute a medical/health insurance administrative services
agreement effective July 1,1979,in form approved by the
General Counsel;and,
Section 3 The District shall continue to maintain in
force and make available to all employees,a medical program
provided by a qualified Health Maintenance Organization (“HMO”);
and,
•Section 4 Medical/Health Insurance Reserve Account is
hereby established in the amount of,$100,000.00.
Section 5 Medical/Health Insurance Trust Account is
hereby established to provide funds that may be disbursed by
the Districts’Claims Administrator as payment of expenses and
claims;and,
•
Section 6 That the Director of Finance is hereby authorized
to open a commercial bank checking account for said Medical/
Health Insurance Trust Account in an amount appropriate to
accommodate efficient processing of medical/health insurance
claims,and provide for drawing of checks against said account
by the Districts’Claims Administrator;and,
Section 7 The Director of Finance is hereby authorized
to draw warrants for the initial deposit of funds in said
Medical/Health Insurance Trust Account and to reimburse said
account for authorized expenditures therefrom,and the
County Auditor—Controller and County Treasurer are hereby
authorized and directed to issue and pay said warrants.
PASSED AND ADOPTED at a regular meeting held May 9,1979.
—3—
STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
I,J.WAYNE SYLVESTER,Secretary of.the Boards of Directors of
County Sanitation Districts Nos.1,2,3,5,6,7,and 11 of Orange
County,California,do hereby certify that the above and foregoing
Resolution No.•955 was regularly passed and adopted at a
regular meeting of said Boards on the 9th day of May
.
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by the following vote,to wit:
AYES:Philip Anthony,Ruth Bailey,Norman Culver,Donald Fox,
Henry Frese,Francis Glockner,Beth Graham,Donald Holt,Jr.,
Bernard Houston,Elvin Hutchison,Frank Laszlo,Melvin
LeBaron,Don Mclnnis,Richard Olson,Ron Pattinson,Bob
Perry,Lester Reese,Thomas Riley,Earl Roget,Donald Roth,
.Paul Ryckoff,Donald Saltarelli,James Sharp,Don Smith,
Roger Stanton,Donald Strauss,Bernie Svalstad,Charles
Sylvia,Bill Vardoulis,Louis Velasquez,James Ward,Henry
Wedaa,Martha Weishaupt,Ray Williams,Duane Winters and
Harry Yamamoto
NOES:None
ABSENT:Howard Rowan and Don MacAllister
IN WITNESS WHEREOF,I have hereunto set my hand this 9th day
of 1~1ay ,
1979 ...
.
.
San ation I ist’ricts Nos.1,2,
3,,6,7,and 11 of Orange
County,California
S-I 01