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STAFF REPORT C I T Y C L E R K
DUBLIN CITY COUNCIL File # ^~000-D0~
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DATE: March 15, 2011
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJE . Delta Dental Contract Renewal and Amendment
Prepared By: Angelica Smith, Administrative Analyst
EXECUTIVE SUMMARY:
The City Council will consider authorizing the City Manager to execute the contract renewal and
amendment with Delta Dental California.
FINANCIAL IMPACT:
If approved by City Councit, funding will be included in the City's Fiscal Year 2011/2012 budget
to cover premium costs. Delta Dental proposes a 4.78% premium increase for Fiscaf Year
2011-2012 which, based on a current employee census, represents $5,818.60 annual increase.
This increase is below the market trend of 6.6%.
RECOMMENDATION:
Staff recommends the City Council adopt the resolution authorizing the City Manager to execute
a contract renewal and amendment with Delta Dental of California.
Submitted By
Human Resources Director
Revie y
Assistant City Manager
Page 1 of 2 ITEM NO. ~ 2--
DESCRIPTION:
The City has maintained Delta Dental insurance since 1989. On July 1, 2001, the City joined
ABD Insurance Services Municipality Pool and continued dental coverage through Delta
Dental/PPO. ABD Insurance was recently acquired by Wells Fargo of California lnsurance
Service Inc. and they have continued to provide the same municipality pool for smaller cities.
The municipality pool provides smaller cities with the opportunity to be part of a 30,000
municipal participant group, which provides added purchasing power when negotiating contract
renewals.
Delta Dental/PPO provides a maximum of $2,500 coverage for each enrollee per calendar year
and the City's contract provides for the follow payment for services as follows:
Preventive 100%
Basic 90%
Crowns 60%
Prosthodontics 60%
Payment for orthodontic benefits is limited to a lifetime maximum of $1,500 for
dependent children
~ Delta Dental proposes that, effective July 1, 2011, the monthly premium will increase 4.78% to
be:
Covera e Grou
Current Rates Proposed Rates
7-1-11 to 6-30-12
One Part $52.02 $54.51
Two Part $99.41 $104.16
Three or More Part ~ $164.46 $172.32
Based on current employee census (86 employees), this represents an annual increase of
$5,818.60. The previous premium adjustment occurred on July 2010 in the amount of 5.25%.
The proposed contract will extend from July 1, 2011 to June 30, 2012.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Resolution authorizing the City Manager to execute contract
renewal and amendment with Delta Dental of California.
Page 2 of 2
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RESOLUTION NO. XX -11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT RENEWAL AND AMENDMENT
WITH DELTA DENTAL OF CALIFORNIA
WHEREAS, the City of Dublin has entered into an agreement with Delta Dental of California
to provide dental insurance to eligible City employees; and
WHEREAS, the existing contract term will expire on June 30, 2011.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby authorizes the City Manager to execute the contract renewal and amendment to the
agreement with Delta Dental of California for the period of July 1, 2011 through June 30, 2012.
PASSED, APPROVED AND ADOPTED. this 15th day of March, 2011, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
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ATTACHMENT 1