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HomeMy WebLinkAboutSR - C26820 - Employee Dental BenefitsCITY OF PALM DESERT HUMAN RESOURCES DEPARTMENT STAFF REPORT REQUEST: Request for approval of Contract No. C26820 with Delta Dental through June 30, 2009. SUBMITTED BY: Lori Carney, Human Resources Manager CASE NOS. N/A DATE: August 9, 2007 CONTENTS: Staff Report Contract No. C26830 Delta Dental Recommendation: By Minute Motion authorize Mayor to approve Contract No. C26830 with Delta Dental through June 30, 2009. Executive Summary: A yes vote will approve the Delta Dental contract for employee dental benefits through June 30, 2009. Discussion: The City receives broker services from ABD for dental, vision, life and LTD insurance. ABD negotiates rates and contracts on our behalf as part of a municipal pool. The City approved Contract No. C16130 with Delta Dental to provide employee dental benefits July 1, 1999, and has continued the contract through June 30, 2006. ABD has negotiated a new contract for the City with Delta Dental, which continues our employee dental benefits at reasonable rates. This contract includes an improvement in prosthetic dental benefits as well as cost saving options for employees utilizing a preferred provider network. Annual costs for dental benefits fluctuate with the number of employees and family sizes; however the approximate cost will be $201,810 annually. The monthly premium per employee is as follows: G WR\HR Group Documents\ Staff Reports40elta Dental Renewal 2007-2008.doc Employee Only Employee + 1 dependant: Employee + 2 or more: $39.18 $73.87 $124.73 This represents an average increase of 2.7%. This is a reasonable increase in cost in line with expectations and Delta Dental has provided us with a good value for our premium dollar. Submitted by: Human Resources Manager Approval: Carlos Ortega, City Manager Division Head: / Sheila Gilligan, Assistant City Managerommunity Services Paul Gibson, Finance Director ZITY COUNCIL ACTION: APPROVED ✓ DENIED RECEIVED OTHER MEETIN DATE -6'1-O'1 AYES • , t'it'Jt✓_-tt/,�4p v-4, a/fl Kte nq NOES. ABSENT: Y7 ABSTAIN ; VERIFIED BY: `&///d/Tl )riginal on File with City Clerk's Office G:V- RV-lR Group Documonts\Staf ReportslDelta Dental Ronowal 2007-2008.doc