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Item 4H Contract renewal with United Healthcare to provide employee dental benefits for plan year October 1, 2015 to September 30, 2016. 4H Madame Mayor and members of the City Council, this presentation will cover Item 4H on the August 4, 2015 City Council Agenda. 1 Item 4G Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016. The purpose of this item to is to request City Council approval of a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 through September 30, 2016. 2 Critical Business Outcomes CBO1 - Continue to implement Southlake 2030 Plan by focusing on short-term initiatives. CBO2 - Become an employer of choice by developing a plan to recruit, develop and retain employees committed to excellence. CBO3 - Develop long-term strategies to address future financial uncertainties and challenges. CBO4 - Improve mobility by proactively completing traffic analysis of key areas. CBO5 -Optimize resources through collaboration and partnerships to reduce costs and add service value. The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. Deliver on Our Focus Areas Performance Management & Service Delivery C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement City of Southlake Strategy Map Approving the contract renewal with United Healthcare links to the City’s strategy map relative to the focus area of [CLICK] Performance Management and Service Delivery and specifically to the corporate business objective of [CLICK] Attract, develop, and retain a skilled workforce. It also supports the critical business outcome [CLICK] to be an employer of choice. 3 Background United Healthcare Bid insurance in 2010 2 plans: PPO and DHMO The City’s current dental insurance provider is United Healthcare. United Healthcare has been the City’s dental provider since October 1, 2010 and dental insurance was last competitively bid in 2010. The dental plan is a fully insured plan. The City pays a monthly per employee premium to United Healthcare and United assumes the risk and accepts the financial responsibility for dental claims and administrative costs. Employees are offered two plan options: a traditional PPO plan and a dental HMO plan. This provides employees with an opportunity to choose a plan that best meets their own unique needs. The City currently pays the entire premium for employee only dental coverage and the employee pays the entire dependent cost. 4 Renewal For new plan year, United Healthcare has proposed no rate increase and no plan design changes to the DPPO plan. United has also proposed no rate increase for the dental HMO plan, however, the City’s current plan design will no longer be offered by United. Therefore, they have recommended dental HMO plan. The recommended plan includes minor plan improvements. In addition, UHC has offered a 24 month rate guarantee for both plans. 5 Financial Considerations Estimated cost of dental insurance premiums: Funding for dental insurance will be included in the proposed FY 2016 budget. The estimated cost of dental insurance premiums is $18,320 per month, or $219,843 annually (combined City and employee premium contributions). There is no annual estimated premium increase in the City’s portion of dental insurance FY 2016.   Funding for the proposed dental insurance plan costs will be included in the proposed budget for Fiscal Year 2016. 6 Staff Recommendation Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016. Staff recommends City Council Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016. 7 Questions: Stacey Black 817-748-8063 8 If you have any questions regarding this item, please contact Director of Human Resources Stacey Black at 817-748-8063. Thank you for your attention.