HomeMy WebLinkAboutC27650 - Amendment Number 4 and 5 - Employee Dental BenefitsCITY OF PALM DESERT
HUMAN RESOURCES DEPARTMENT
STAFF REPORT
REQUEST: Request for approval of one year renewal Contract No. C27650
with Delta Dental through June 30, 2013, and approval of
amendment No. 4 allowing for the voluntary enrollment of part-time
employees.
SUBMITTED BY: Lori Carney, Human Resources Manager
CASE NOS
DATE:
N/A
July 12, 2012
CONTENTS: Staff Report
Contract C27650 Delta Dental — Amendment No. 4, and
Amendment No. 5
Recommendation:
By Minute Motion authorize Mayor to approve Amendment No. 4 and
Amendment No. 5 to Contract No. C27650 with Delta Dental through June 30,
2013.
Background:
The City receives broker services from Wells Fargo Insurance for dental, vision, life and
LTD insurance. Wells Fargo negotiates rates and contracts on our behalf as part of a
municipal pool. The City approved Contract No. C27650 with Delta Dental to provide
employee dental benefits on May 8, 2008, and has continued the contract through
June 30, 2012.
Amendment No. 4 — Part-time Employees
In March 2012, the Council authorized the creation of a new class of "part-time"
employees to fill needs in the Visitor Center. The employees do not receive the same
level of benefits or premium reimbursement that full time employees do. Our current
contract requires that all employees be automatically enrolled in our plan for dental
benefits. City policy requires part-time employees to contribute 50% of the premium for
Staff Report
Delta Dental Contract Amendment No. 4 and No. 5 (C27650)
July 12, 2012
Page 2 of 2
benefits they are enrolled in. Amendment No. 4 incorporates our definition of "part-time"
employee into the contract and provides for their voluntary enrollment in the program.
Amendment No. 5 — Contract renewal
Our contract contains an option for renewal through June 30, 2013. Amendment No. 5
renews the contract through June 30, 2013, with no increase in rates. The City would
likely experience substantially increased costs if it were to leave the municipal pool and
seek a plan on the open market. However, staff does plan to review the benefits of an
RFP for services prior to the July 1, 2014 renewal of all ancillary benefits, to ensure we
are continuing to receive the best value.
Annual costs for dental benefits fluctuate with the number of employees and family
sizes; however the approximate cost will be $172,000 annually, which has been
accounted for in the Fiscal Year 2012/2013 budget. The monthly premium per
employee is as follows:
Employee Only $45.75
Employee + 1 dependant: $86.27
Employee + 2 or more: $145.67
Fiscal Analysis
No increase in cost per employee, with total annual costs of approximately $172,000.00,
funds are available in the FY 2012/2013 budget.
Submitted b CITY COUNCILACTION
APPROVED ✓ DENIED
RECEIVED OTHER
MEETIPiG DATE ` La' 2 LLD-
-AYES: i-In(-ni K. K)CO10'1'ej14Sig! T�e
Lori Carney, NOES: None
Human Resources Manager ABSENT- LL34,0 _
ABSTAIN:
VERIFIED BY:
Approval: Original on File with City Clerk's O ce
Paul Gibson,
Finance Director
AMENDMENT NO. 4 TO AGREEMENT
GROUP #00065
AGREEMENT dated July 1, 2007, between CITY OF PALM DESERT and DELTA DENTAL OF
CALIFORNIA "Delta Dental," is hereby amended, effective May 1, 2012, as follows:
Paragraph 2.1 is amended to read:
2.1 All regular part-time employees who work less than 40 hours per week and more than 20
hours per week and who successfully completes the probationary period may enroll in this
plan and will become eligible to receive Benefits on the first day of the month following date
of hire.
Regular part-time employees are eligible provided they are employed on a basis of 20 or
more hours per week and are eligible for paid holidays, vacation, leaves of absence credits
and CalPERS service credit, proportional to their assigned work hours.
For example, an employee scheduled to work six hours per day is eligible for six hours of
holiday credit. Employees who are regularly scheduled to work 30 hours per week would
receive 75% accrual of vacation and sick leave.
Regular part-time employees who are regularly scheduled for less than 40 hours per week
will be eligible to receive fixed cost Benefits such as health, dental, vision, long term disability
and life insurance plans at 50% of the current premium paid for employees with regular full-
time status.
Employees working less than 20 hours per week do not acquire regular status and are not
entitled to Benefits. Such employees serve at the pleasure of the appointing authority.
CITY OF PALM DESERT
Date Amendment Signed
By:
Signature
Printed Name
Title
DATE: June 20, 2012
DELTA DENTAL OF CALIFORNIA
Belinda Martinez, Senior Vice President
Sales/Marketing
Kevin Jackson, Group Vice President
Underwriting & Actuarial Services
AMENDMENT NO. 5 TO AGREEMENT
RENEWAL
GROUP #65
AGREEMENT dated July 1, 2007, as amended, between CITY OF PALM DESERT and DELTA
DENTAL OF CALIFORNIA "Delta Dental," is hereby further amended, effective July 1, 2012, as follows:
Paragraph 1.4 is amended to read:
1.4 "Contract Term" means the period. beginning on July 1, 2012, and ending on June 30, 2013 and
each subsequent yearly period during which this Contract remains in effect.
CITY OF PALM DESERT
DELTA DENTAL GROUP #65
Date Amendment Signed:
By:
Signature
Printed Name
Title
DATE: June 19, 2012
DELTA DENTAL OF CALIFORNIA
Belinda Martinez
Senior Vice President
Sales/Marketing
Kevin Jackson
Group Vice President
Underwriting & Actuarial