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