Report to Mayor and City Council
Monday, November 06, 2017
Consent
SUBJECT:
Title
APPROVAL OF AGREEMENT FOR ADMINISTRATIVE SERVICES WITH PRINCIPAL LIFE FOR ADMINISTRATION OF THE CITY OF CARSON SELF-INSURED DENTAL PLAN AND AMENDMENT TO AGREEMENT FOR ADMINISTRATIVE SERVICES FOR BENDER BENEFITS BROKER ADMINISTRATION (CITY COUNCIL)
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I. SUMMARY
The City Council approved changing Dental insurance services providers from Premiere Access to Principal Life through direction to the City's Labor Negotiators in April/May 2017. Accordingly, the change in carriers has taken place and staff negotiated a one-year Administrative Services Agreement with Principal Life for processing of non-discretionary claims and for performing administrative functions related to the Dental insurance plan. The agreement may be renewed at the City's option for up to three successive one-year terms. As part of the agreement with Principal, Principal will compensate Bender Benefits, the insurance broker the City currently uses under the terms set forth in the Amendment to the Agreement for Administrative Services
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a one-year contract for dental insurance administrative services to Principal Life including payment of broker fees to Bender Benefits commencing November 1, 2017 with three one-year City renewal options and should the City exercise those options the agreement has the potential of reaching November 1, 2021; AND
2. AUTHORIZE the Mayor to execute the contract after approval as to form by the City Attorney and AUTHORIZE the City Manager to execute each of the optional extensions in one year increments.
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III. ALTERNATIVES
The City Council may take any other action it deems appropriate.
IV. BACKGROUND
The City is self-insured for employee dental coverage. As a result, the City pays the cost of services for employees and their families when they visit the dentist. Dentists who are either a PP...
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