HomeMy WebLinkAbout4.03 Delta Dental Contract~,~`•J1j-'UB~r~ CITY CLERK
~ ~ 111 File # ^~~~'~~
~
~- ~ -i~ 8~ ~ (~ 0 D - ~
~~~~//
~~LIFOR~1~ AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 5, 2009
SUBJECT: Delta Dental Contract Renewal and Amendment
Report Prepared by: Julie Carter, Human Resources Director
ATTACHMENTS: Resolution
RECOMMENDATION: Adopt Resolution authorizing City Manager to execute a contract
renewal and amendment with Delta Dental of California.
C__~;
FINANCIAL STATEMENT: If approved by City Council, funding will be included in the City's
Fiscal Year 2009/2010 budget to cover premium costs. Delta Dental
proposes a 5.9% premium increase for Fiscal Year 2009-2010
which, based on a current employee census, represents $6,482.16
annual increase.
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/DPO. 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.
Current City Benefit: Delta Dental/DPO provides a maximum of $2,500 coverage far 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.
COPIES TO: Dulcey Lester, Wells Fargo of CA
Insurance Services, Inc.
ITEM NO. "~• ~
/~~ ~.
~~
r:~ ~~~
Delta Dental proposes that effective July 1, 2009, the monthly premiums will increase 5.9% to be:
Coverage Group Current Rates
from 7-1-07 Proposed Rates
7-1-09 to 6-30-10
One Party $46.67 $49.43
Two Party $89.19 $94.43
Three or More Party $147.55 $156.26
Based on current employee census this represents an annual increase of $6,482. The previous premium
adjustment occurred on July 2007 in the amount of 2.68%.
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.
°,r~) ~
i ~~
RESOLUTION NO. XX - 09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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, 2009.
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 period of July 1, 2009 through June 30, 2010.
PASSED, APPROVED AND ADOPTED this 5~' day of May, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
~'.3 J`-S-o I
ATTACHMENT 1