Report to Mayor and City Council
Tuesday, October 17, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 5 TO THE AGREEMENT FOR ADMINISTRATIVE SERVICES WITH PRINCIPAL LIFE INSURANCE COMPANY FOR ADMINISTRATION OF THE CITY OF CARSON SELF-INSURED DENTAL PLAN AGREEMENT (CITY COUNCIL)
Body
I. SUMMARY
The City entered into an "Agreement for Administrative Services" with Principal Life Insurance Company effective November 1, 2017 ("Agreement") (Exhibit 1), for processing of non-discretionary claims and provision of administrative services related to the dental insurance plan for City employees. The Agreement originally provided for an initial one-year term with options for the City to extend the term of the Agreement for up to three successive one-year terms thereafter.
Effective November 1, 2018, Amendment No. 1 to the Agreement (Exhibit 2) extended the initial term of the Agreement by two years (until November 1, 2020) with all other provisions remaining intact, including the fee rates and the City's three one-year options to extend. Amendment No. 2 to the Agreement (Exhibit 3), which was approved by City Council on August 4, 2020, exercised the first of the City's three one-year options, thereby extending the term expiration date of the Agreement from November 1, 2020 to November 1, 2021, with two one-year options remaining thereafter. Amendment No. 3 to the Agreement (Exhibit 4), which was approved by City Council on September 7, 2021, exercised the City's second one-year option, thereby extending the term expiration date of the Agreement from November 1, 2021 to November 1, 2022. On November 1, 2022 Amendment No. 4 (Exhibit 5) was approved by City Council, exercising the City's third option, thereby extending the term expiration date to November 1, 2023.
After receiving approval from Principal for a 3-year rate pass, Staff now requests City Council approval of Amendment No. 5 to the Agreement (Exhibit 6) to extend the term expiration date of th...
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