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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 15, 2015 <br />TITLE: <br />EMPLOYEE GROUP INSURANCE <br />RENEWALS (STRATEGIC PLAN NO. 7,6) <br />l ° <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1" Reading <br />❑ <br />Ordinance on 2nd Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Authorize the City Manager and Clerk of the Council to execute agreements for the renewal of <br />long term disability, dental, vision, employee assistance, employee group life and accidental death <br />and dismemberment insurance from January 1, 2016 to expire on December 31, 2016, subject to <br />non - substantive changes approved by the City Manager and City Attorney. <br />2. Authorize the City Manager to approve the rates as offered by CalPERS for 2016 Health <br />Premiums for medical insurance. <br />3. Authorize the City Manager and Clerk of the Council to recognize the ongoing agreement with <br />REACH Employee Assistance, Inc. executed in January 1, 2015 expiring on December 31, 2017, <br />subject to non - substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The City utilizes the services of two insurance brokers Mercer and Cook Insurance Service. <br />Mercer is the broker of record on the life and accidental death & dismemberment (AD &D) <br />coverage, long -term disability (LTD) insurance through the carrier Aetna and EAP Program <br />through REACH for all employees. Cook Insurance Service is the broker of record for dental <br />coverage through the carriers Delta and MetLife. These coverages are sent out to bid by the <br />brokers on a regular basis, usually in the summer of each year. Rates are finalized and issued in <br />time for open enrollment in September of each year. The new rates are effective annually on <br />January 1. We are currently in the second year of a two -year rate guarantee for Life, AD &D and <br />LTD rates through December 31, 2016. The City is currently in the second year of a two -year <br />contract with Delta and MetLife for dental coverage. Delta rates will increase by 6.6 %. However, <br />MetLife has agreed there will be no rate increase. <br />The Employee Assistance Program assists employees and their eligible dependents in handling <br />problems that may be interfering with their performance on the job. Consultation for problems <br />such as alcohol and drug abuse, legal, marital and family problems are available. REACH <br />currently provides services under this program. Full time and part time employees are eligible to <br />25A -1 <br />