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Employee Group Insurance Renewals September 5, 2017 Page 3 City staff is asking for authorization to enter into an agreement with Reach Employee Assistance Inc., to provide employee assistance plan services for City employees for the term of January 1, 2018 to December 31, 2020. The City has previously contracted with Reach to provide these same services and has been pleased with the services provided. 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 participate in the Employee Assistance Program. The costs to the City are billed on a monthly basis of $1.85 for full-time employees and $1.25 for part-time employees. The current rates will not increase for the term of the new agreement starting in 2018. Under the scope of the City's Insurance Benefit Broker Agreement with Keenan & Associates, is requesting to change its Flexible Spending Account and Retiree Dental Billing vendor from Conexis to TASC. City staff is requesting approval to enter into an Agreement with TASC to purchase employee flex spending accounts.. The City does not contribute to the employee's accounts; the employee pays for their contributions out of their paycheck. The City will be required to pay a nominal administration fee on behalf of the employees to administer the plan; a one-time set up fee of $300, administration fee of $4.25 per participant and an annual renewal fee of $100. The Agreement will automatically renew each year unless the City provides notice of cancellation pursuant to the terms of the Agreement. City staff is requesting approval to enter into an Agreement with TASC to administer the City's retiree dental billing. The City does not contribute to the premiums; the retirees pay the premiums directly to TASC. The City would be required to pay a nominal administration fee to administer the plan; a one-time set up fee of $250, administration fee of $2.25 per participant and an annual renewal fee of $125. The City has an established and ongoing agreement with ICMA-RC VantageCare Retirement Health Savings Plan to provide employees a benefit to deposit and withdraw tax free dollars for qualified medical expenses at retirement. FISCAL IMPACT Funds in the amount of $4,925,158 are budgeted and available in the Personnel Services Employee Benefits account (account no. 08109053-64010) to pay for City administered insurance coverage effective January 1, 2018. Funds in the amount of $9,500 are budgeted and available in the Section 125 Benefits account (account no. 08109052-64094) for flex spending administration. Funds in the amount of $8,898,207 are budgeted and available in the Employee Benefits account (account no. 08109053-64010) to pay for the insurance coverage administered 25E-3