Title
Resolution to Approve Contract with Delta Dental of Michigan, Inc. to provide dental insurance coverage to City Employees and their Dependents ($2,125,000)
Memorandum
The attached Resolution authorizes a contract for dental coverage services with our dental care service provider for the term July 1, 2015 through December 31, 2017.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY16 approved budget through June 30, 2015 and required funding for the remainder of the contract term will be budgeted in the FY17 and FY18 budgets. The estimated annual cost of this employee benefit is $850,000.
The contract for this Plan is transitioning from a fiscal year term to a calendar year term; which will require retroactive approval of the contract term from July 1, 2015 to December 31, 2015.
Employee labor contracts and employee benefit plans establish the level of dental coverage for City employees. There is no change in the level of dental coverage with this payment authorization.
The benefit coverage levels will remain the same during the contract term as currently underwritten.
Staff
Prepared by: Kelly Beck, Employee Benefits Supervisor
Reviewed by: Robyn Wilkerson, Director of Human Resources and Labor Relations
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The City provides dental care coverage to City employees and their eligible dependents in accordance with the employee benefits program and various labor contracts at an estimated annual cost of approximately $850,000;
Whereas, The Human Resources Services recommends transitioning from a fiscal year contract term to a calendar year contract term; which will require the approval of an 30-month contract effective July 1, 2015 through December 31, 2017;
Whereas, There is no increase of premium during the contract term;
Whereas, Necessary funding for the July 1, 2015 through June 30, 2015 portion of the contract term were approved as part of the FY16 budget and the remainder of the required funding will be budgeted in the FY17 and FY18 budgets; and
Whereas, Delta Dental of Michigan complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That City Council approve the contract with Delta Dental of Michigan to provide dental insurance coverage to City employees and their eligible dependents for the period July 1, 2015 through December 31, 2017; and
RESOLVED, That the City Administrator is authorized and directed to execute the necessary contract documentation after approval as to form by the City Attorney and take any further necessary administrative actions to implement this resolution.