HomeMy WebLinkAboutItem 4.04 Dental Plan Amend (2)CITY CLERK
File # ^~^2 0' 0
>C ~ oo -.~c
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: September 17, 1996
SUBJECT:
EXHIBITS ATTACHED:
RECOMMENDATION: ; ~' V` - ~
~
Amendment to Benefit Plan - Prepared by: Lou Ann Riera-Texeira,
Assistant to the City Manager
Resolution Amending the Benefit Plan
Adopt Resolution
FINANCIAL STATEMENT: Delta Dental has proposed renewal rates which will result in an
increase of 5% effective October 1, 1996. The approximate cost of
this increase for Fiscal Year 1996-97 is $1,552. Sufficient funds are
included in the 1996-97 budget to cover these costs.
DESCRIPTION: The City's Personnel System Rules require the City Council to
adopt a Benefit Plan. This Plan provides a summary of the City's benefit program including medical,
dental, life and disability insurance, retirement, holidays, car allowance and travel expenses, and
participation in various voluntary benefit programs.
The City currently provides dental insurance under contract with Delta Dental. The contract requires the
City to pay the full family premium rate for eligible employees including regular employees who work
30+ hours per week. In addition, the contract provides that the City pay the premium for the employee
only for those employees regularly scheduled to work between 20 and 29 hours per week.
The City has a two year contract with Delta Dental which expires on September 30, 1996. Delta has
informed the City of a proposed renewal rate increase of 5% for a one year period beginning October 1,
1996 and ending September 30, 1997. The current and proposed rates are shown below.
>; Current l~ate ~'roposed Rate ,' R~ttewal Change '
One Party $ 36.06 $ 37.86 5%
Two Party $ 69.28 $ 72.74 5%
Three Party+ $116.23 $122.04 5%
According to Delta Dental, renewal rates are based on the combined experience of more than 700 groups
employing less than 100 employees each. Further, Delta indicates that pooling experience has proven to
be the most reliable method of forecasting costs for groups of this size. It should be noted that the prior
two year contract with Delta Dental resulted in no rate increase.
-------------------------------------------------------------------
COPIES TO:
H/cc-forms/agdastmt.doc
~l
ITEM NO. 0,~,
V
Based on the City's current enrlent, the proposed renewal rates effective. October 1, 1996, will result
in an increase of approximatel 52 for the remainder of Fiscal Year .-97. The attached resolution
proposes amending the Benefit P an to increase the City's contribution to a maximum of $122.04 per
month for family coverage and $37.86 for the employee only. Staff recommends that the City Council
review the proposed change and adopt the attached resolution.
.
.';
.--
.
.
RESOLUTION NO. - 96
:;.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and
WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by the City.
NOW, TIffiREFORE BE IT RESOLVED that the City Council of the City of Dublin hereby
amend Resolution 37-96 to include the following:
Section 3. Dental Insurance: Beginning with the October 1996 premium, the City will contribute on
behalf of each employee scheduled to regularly work at least 30 hours per week, a maximum of $122,04
per month to a dental insurance plan selected by the City, Beginning with the October 1996 premium,
the City will contribute on behalf of each regular employee scheduled to work between 20 and 29 hours
per week, a maximum of $37.86 per month to a dental insurance plan selected by the City,
PASSED, APPROVED AND ADOPTED this 17th day of September, 1996,
AYES:
.::. NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
fVcc-fo~resodent
..