HomeMy WebLinkAboutStaff Report 424-08City of Palo Alto
CRy Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:NOVEMBER 17, 2008
REPORT TYPE: CONSENT CALENDER
CMR: 424:08
SUBJECT:Approval of an Amendment to Contract C06115547 with Delta Dental
to Extend the Term for an Additional Three Months and Add $23,112
for a Total Not to Exceed Amount of $328,112 for Claims
Administration Services for the City of Palo Alto’s Self-Funded Dental
Plan
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or designee to
execute the attached contract amendment extending the City’s existing three-year
contract with Delta Dental for the provision of claims administration services for the City
of Palo Alto’s self-funded dental plan. The amendment would extend the contract for an
additional three-month period and increase the amount of the contract by $23,112 to
cover premium costs through December 31, 2008 for a total not to exceed contract
amount of $328,112.
DISCUSSION
Beginning October 1, 2005, the City entered into a three-year contract with Delta Dental
for dental claims administration, saving the City approximately $61,954 annually in
premium costs per year compared to the previous administrator. The additional three
months proposed in this amendment would increase the total contract amount from
$305,000 to $328,112 in the third year of the contract. The premium cost per employee
per month for this year of the contract increased by five percent (5%) as provided in the
contract. However, the cost per employee per month for this three month extension
period will decrease due to a change in the City’s benefits broker that allows the City to
obtain an improved pooled contract rate.
CMR: 424:08 Page 1 of 2
Staff is requesting that an additional $23,112 be added to the contract to extend the
existing contract for a period of three months. Staff has issued a Request For Proposal
(RFP) to solicit bids for dental claims administration services to ensure that rates are cost
competitive and to determine if the City’s claims administration can be improved. The
additional three months will allow staff sufficient time to review proposals and to select a
vendor by January 1, 2009. The requested extension will also allow the term of the new
contract to change to a calendar-year period, which is preferable to staff to effectively
manage the renewal process with the benefits broker and claims administrator.
RESOURCE IMPACT
Funding for this contract amendment is provided in the 2008-2009 budget.
POLICY IMPLICATIONS
This request is consistent with current Council policy direction.
ENVIRONMENTAL REVIEW
This is not a project requiring review under the California Environmental Quality Act
(CEQA).
ATTACHMENTS
A: Amendment No. One to Agreement No.C06115547
B: Agreement No. C06115547
PREPARED BY:
DEPARTMENT HEAD:
Sandra T.R. Blanch, Assistant Director, Human Resources
Russ Carlsen
Director of Human Resources
CITY MANAGER APPROVAL:
Cit3Z~anager
CMR: 424:08 Page 2 of 2
AMENDMENT NO. I TO AGREE~IENT NO. C06115547
BETWEEN THE CITY OF PALO ALTO AND
DELTA DENTAL of CALIFORNIA
This Amendment No.i to Agreement No.
C06115547("Agreement") is entered into September i, 2008, by and
between the CITY OF PALO ALTO ("CITY"), and Delta Dental of
California, a California Corporation, located at i00 First Street,
San Francisco, CA 94105 (PH) 415-972-8300 ("CONTRACTOR").
RE C I T A L S:
WHEREAS, the. Agreement was entered into between the
parties for the provision of Dental Plan Claims Administration; and
WHEREAS, the parties wish to amend the Agreement;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION 3. The section entitled "TERMS" is hereby
amended to read as follows:
"TERMS. The services provided under this Agreement shall
commence on October i, 2005 and shall be provided through
December 31, 2008."
SECTION 4. The section entitled COMPENSATION is
hereby amended, to read as follows:
081112 9000050 Amend, agt
Rev. July 3 i, 1998
CITY ~=== pay CONTRACTOR as c .....~ation for the ru=±
performance of this Agreement:
A sum, not to exceed a total of $328,112.0@, in
accordance with the fee schedule set forth in Exhibit
"B~, attached hereto and incorporated herein by this
reference. Fees reflected on attached Exhibit B, are
effective September 1, 20@8.
The following exhibit(s) to the Agreement is/are hereby
amended to read as set forth in the attachment(s} to this
Amendment, which are incorporated in full by this reference:
a.Exhibit B entitled: Fee Schedule
Except as herein modified, all other provisions of the
Agreement, including any exhibits and subsequent amendments
thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly
authorized representatives executed this Amendment on the date
first above written.
2
081112 9000050 Amend.agt
Rev. July 31, 1998
5624028~8 ÷ 1650~292~02
EXHIBIT B
SCHEDULE OF FEES
EFFECTIVE SEPTEmbER 1r 2008
CITY shall pay CONTRACTOR for the full amount of dentist’s
statements submitted to DELTA.
In addition, effective September i, 2008, CITY shall pay
CONTRACTOR a maximum fee of seven dollars and twenty cents
($7.20) per enrolled employee per month in exchange for
CONTRACTOR’s provision of dental claims administration services
for the CITY’s self funded dental plan.
The total compensation under this Agreement, shall not exceed
$328,112.00.
4
081112 9000050 Amend.ag
Rev. July 3 l, 1998
¯OF PAI~O ~42_.TO CONTRACT
CITY OF PM%0 ALT.O
CITY O:g :PA~~
LhZ~~
i
i-
ALt..~chment C
PART !1 -iNSURANCE REQUIREMENTS .650
CONSUL~ANTS: TO THE. CI~ OF PAL, O ALTO (CJTY). AT THEIR S.OL~ EXPENSE. S’H~LL FOR TH:E TERM OF THE
CQNT&¢~CT OBTAIN AND MA~NTA.iN INSURANCE tN THE AMOUNTS FOR THE COV.~RAGE SPECIFIED :BELOW,
AFFORDED BY COMPANIES WITH A BEST’,S KEY RA~.NG OF A<VII~ .OR HIGHEr, UCENSED TO T~NSACT
INSU~NC~ BUSINESSiN THE STATE OF CALIFO~IA,
AWARD 1.S OON~TING£NT ON COMPL{ANcE WITH CI’P¢~S INSURANCE REQUIR:E~EN~S~ AS SPECIF.~D~ BELOW:
M,N MUM UM,~S ]
! :83O;&Y i#.uURY
! ~ROPERT’~ DAMAGE
-~ CQM~INE~~ODILYINJURY ~ PRO~£R~
.- EACH PERSON
IL
INSURANCE COVEF~AG~ MUST LNCL UDE:
A :PRO’,.-1S!OI,~ ~OF{ A WR:ITTEN I"HIRTY O.&V ADVAN:CE NOTICE TO O.T}~ "~ OF C-H,-"~NGE~ IN COVERAGE OR O~
A OONTRJ4.CTUAL LIAB]LI.,.’P¢ ENDORSEb;ENT P:ROV[OfNG INSUP~NC~ COVERAGE FOR C~NSULTANT’.S
AGREEMENT ~O :NDB!~N~FY
SOS-M~’r C-ERT~F .C ~TE{S) O]: ~t,,~S URAI~CE ="" =" ~"" ~" ’ " ........~OMPL ....SECTION AND. E,,,b,.,~’,Oh+~ REQUIRED COV=KAG.E, O~ n ,.~T= TH]S
S~CT~ON V -£ELO~,’~L AC’TUAL CERTIRCA]~(S) WILL BE ~QUIRED UPON AWARD,"’
NAME AND ADD,R~S8 OF .C-OMP/~Y AI~EQRDING CO~,~’E~j~GE (NOT AGENT OR BROKER)’,~_.e Atta,chme:ng C- 1.
NAt~]E ADOR~S~. AND ~HO,’.,IE NUMBER OF YOUR NSUR&NCE AGEI’4T:’.BROF, ER;
See Att-a~:-<hme:nt C-1
See Attac-hmez~t ,.-i
CiTY OF PALO ALTO PAGE I OF 2
PART II- ~INSUR~C:;E :REQUiREMEI~TS FORM 650
D.DEDUCTIBL£ AMOUNT[’S) ~CJSDUCTIB~ AMOUNTS IN E~C&~S OF $~D00 REQUIRES CI~"S PRIORAPPROVAl.}:
S~e At tach:ftve.nt
ili,AWARD ~IS CONTINGENT ON CON!PLIANC~ WITH .CI~’S INSURAJ’~3E REQUIREMENTS, AND PR.OPOSER’S
SUBMITTAL O:F CER-FTF~CA:rE(S) OF {NSUR.ANC~ EV[DE~qGNG COMPLIANCE WITH THE RBQUIREMENTS SPECIFIED
HERE;N,
IV.
WiTH R,_.SP.--,~ f TO ~A,Mm ARISING OU~.¢ OF ’7:HS OPEF’~TION~; OF TN.~ NAMED INSURED, INSURANCE AS
A~FORDED BY TH~S RO£)CY IS PRIMARY AND. IS NOT ADDITIONAL TO OR CO~{BUTING W~TH ANY
’ INS~}F,~-,r.4 .,~ C,~ ,Rle_D BY OR FOR 7HE B~NEF~T OF THE ADDITIONAL ,Nob,~-
T~4:E b~AMJNG OF MORE THAN ONE. PERSON, F~RM, OR CORPORATION AS INSURES UNDER THE ~OLtCY
SHALl_ NOT, FOR THAT REASON ALO~,~E, .E~NGUISH t(NY RIGF~S OF THE INSURED #~G~NST ANQTHEF{.
BUT T~4IS ~NDOR:SEM£NT, AND "£HE NAM~.NG OF MULTIPLE ~NSU~O~ ~HALL NOT !NCR~S~ ~E TO~AL
L[A~iL~ O~ YH~ .COMPA~f UNDER TH~ POL}OY.
~F T.H~ POUCY IS CANCELED BEFOR~ .~FS EX~IF~T!O;,f O~3’E FOR ANY RB&SON OTHER THAN
(30) DAY WR:i~N NOTICE BEFORE THE E~£ECTIVE ~D~ZE O~ :~ANOE~LA~ON.
;~ THE POLICY IS CANCeLeD BEFORE ~S E~:IPjkTION ~]~r~ FOR T~-E NON-PAYME~’4[ OF
PREMtUM.~ THE ~SSU.!NG COMPANY SHALL PROVID£ CF;T AT LEA~T A TEN ~) D~tCf W£1TTEN
NQ~tC£ BSFORE TH~ EFF, EC~:~ DATE OF CANCeLLATiON,
PROPOSER CERTIF[E.gTHAT ~ROPOSER~S £,;8UEANCE OOVSP~,GE ~ETS THE A~QVE R~QUIREMENTS.:
TH~ INFORMATION HERE~N IS CER~[FfED CORRECT BY SIGt~ATURE(S} BELOW, SIGNATURB(S) M~UST BE SAM.E
S:iGNATURE(S) AS APPEAR(S) ON S~CTION 30~A.
NOTICES SHAL:L BE MAILED
PURCHASING AND CONTRACT ADMINtSTR~TtON
CITY O~ .PALO ALTO
P,O. BOX 102.S0
PALO ALTO, CA 94303.
CITY. OF PALO ALTO PAGE 2 OF 2