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Item 4C - Memo CITY OF SOUTH LAKE MEMORANDUM July 23, 2026 TO: Alison Ortowski, City Manager FROM: Stacey Black, Assistant City Manager/Senior Director of Human Resources SUBJECT: Approve a contract renewal with Standard Insurance Company to provide an employee assistance program and employee long-term disability, life, and accidental death and dismemberment insurance for the Plan Year October 1, 2026 to September 30, 2027. Action Requested: Approve a contract renewal with Standard Insurance Company (The Standard) to provide an employee assistance program and employee long-term disability, life, and accidental death and dismemberment insurance for the Plan Year October 1 , 2026 to September 30, 2027. Background Information: One of the City's strategic priorities is to attract, develop, and retain a talented and motivated workforce capable of delivering exceptional services to residents. A competitive and financially sustainable employee benefits program is an essential component of that strategy and supports employee well-being, financial security, and workforce stability. The City provides all employees with access to an employee assistance program as part of the comprehensive employee benefits package. It also offers full-time employees long-term disability (LTD) insurance, basic life insurance (Life), and accidental death and dismemberment (AD&D) insurance. Employee Assistance Program The City provides an Employee Assistance Program (EAP) as part of its benefits package. The EAP provides confidential resources to help employees and their household members address personal, family, financial, legal, and workplace challenges before they become issues that affect employee well-being, attendance, or job performance. The program supports employee wellness while helping maintain a healthy, productive workforce. The Standard administers the City's EAP through its partner, Health Advocate, offering up to six confidential counseling sessions per issue per year at no cost to employees, along with legal and financial Alison Ortowski, City Manager Item 4C July 23, 2026 Page 2 guidance. Employees can access support by phone, email, live chat, virtual telehealth, or in-person sessions. The cost of The Standard's EAP is $1 .75 per employee per month, totaling about $12,075 annually. By bundling the EAP with the City's LTD, Life, and AD&D coverages, the City benefits from favorable multi- line pricing, helping maintain low program costs. Additionally, the plan is currently in its third year of a three-year rate guarantee. Long-Term Disability, Life, and AD&D Insurance. The City provides long-term disability (LTD), life insurance, and accidental death and dismemberment (AD&D) insurance to eligible full- time employees. These benefits provide income replacement and financial protection to employees and their families in the event of a qualifying disability, death, or accidental death. The Standard provides the following levels of coverage to employees: LTD Life AD&D 1x annual salary up to $50,000. 60% of salary after a 1x annual salary 90-day waiting period. up to $50,000. Sworn public safety employees receive an additional 1x annual salary up to $50,000. In addition to the coverage provided by the City, employees have the option to purchase additional voluntary life insurance or AD&D insurance for themselves, spouse and/or children. The City does not contribute to the cost of any additional voluntary insurance. The Standard has been the City's carrier for LTD, Life, and AD&D insurance since October 1 , 2019, following a competitive bidding process. Since that time, the City has experienced stable pricing, favorable claims experience, satisfactory service levels, and reliable administration of these benefits. Staff evaluated the proposed renewal based on pricing, plan performance, service quality, and overall value to the City. It continues existing coverage levels with no premium increases and guarantees all rates through September 30, 2028. In an environment where employers continue to experience upward pressure on insurance costs, maintaining flat rates and securing a multi-year rate guarantee represents a favorable renewal outcome. The proposed renewal maintains current benefit levels, avoids Alison Orlowski, City Manager Item 4C July 23, 2026 Page 3 disruption to employees, and provides long-term rate stability without increasing costs. Given the City's favorable experience with The Standard since 2019, including stable pricing, reliable service, favorable claims experience, competitive pricing, and extended rate guarantees, staff determined that conducting a new procurement would not be expected to produce a more advantageous outcome for the City at this time. Accordingly, staff believes the proposed renewal represents the best overall value for the City and recommends continuing the existing coverage arrangement. A summary of the rates and associated annual estimated premium costs, based on a fully staffed workforce, is provided below. Coverage Rate Volume Estimated Cost Monthly Annual LTD Rate/$100 $0.236 $3,221,391 $7,602 $91,230 AD&❑ Rate/$1,000 $0.025 $18,949,000 $471 $5,654 Basic Life Rate/$1,000 $0.070 $18,948,000 $1,319 $15,832 Total: $112,717 Financial Considerations: Coverage Est. Annual Est. Annual Cost Increase Employee Assistance Program $12,075 $0 Long-term Disability Insurance $91,230 $0 Life Insurance $15,832 $0 Accidental Death & Dismemberment $5,654 $0 Insurance TOTAL: $124,792 $0 The estimated annual costs shown above assume a fully staffed workforce, with all authorized full-time positions filled throughout the entire plan year. Actual monthly premiums are calculated based on the employees enrolled in coverage each month; therefore, actual annual costs may vary depending on staffing levels during the year. The total estimated annual cost for these benefits is $124,792, with no rate increase from the current plan year. Maintaining flat rates allows the City to continue providing these benefits while avoiding additional budgetary impacts during FY 2027. Alison Ortowski, City Manager Item 4C July 23, 2026 Page 4 The proposed EAP, LTD, Life, and AD&D plan costs will be included in the Fiscal Year 2027 proposed budget. All LTD, Life, and AD&D rates are guaranteed through September 30, 2028, providing the City with cost certainty for the next two plan years despite continued upward pressure across the employee benefits market. Strategic Link: Performance Management and Service Delivery: attract, develop, and retain a skilled workforce. Citizen Input/ Board Review: N/A Legal Review: The contract documents have been reviewed by the City Attorney's Office. Alternatives: Deny the contract renewal with The Standard and seek alternative options. Supporting Documents: The following supporting documents are attached: • The Standard Renewal Summary • Health Advocate Proposal Staff Recommendation: Staff recommends approval of the proposed contract renewal with Standard Insurance Company. The renewal maintains existing benefit levels, results in no premium increases, extends guaranteed rates through September 30, 2028, and continues a proven partnership that provides reliable service, stable pricing, and long-term value to the City and its employees. City of Southlake 2026 Renewal Summary it% Policy 758490 Thank you for choosing Standard Insurance Company (The Standard) as your employee benefits partner since October 1, 2019. We appreciate your business and the opportunity to renew our commitment. We strive to provide City of Southlake and your employees outstanding value, expertise and personal service. As always, our goal is to help you take care of your business and your employees. Our team remains committed to helping you achieve strategic goals for your benefits program, streamline administration and increase employee satisfaction. In short — better results with less noise. Thank you again for your continued business. Our Approach to Renewals —Continued Partnership The renewal rates for your Group Life, Disability insurance will be effective October 1, 2026. In designing fair renewal pricing, we may review three components of rating: 1. The Manual Rate: We use your current census file demographics, plan design, industry and location to determine a rate for your coverage based on The Standard's book of business of other similar customers. We do this for groups of all sizes. 2. The Experience Rate: In addition, we may use your past claims history to help us determine your renewal rates. Whether we use your claims history—or don't include it—depends on the size of your group and the lines of coverage inforce. Especially for large groups, past claims experience can be a fair and useful predictor of future liability. 3. The Blended Rate: If applicable, we use a formula to determine how credible your Experience Rate is in predicting your future claims cost and blend it with your Manual Rate. This produces a Blended Rate that we use to determine your final renewal pricing. In this package, you'll see an experience table if we've used your claims history in our renewal pricing for a particular line of coverage. Otherwise, your renewal pricing is based solely on your manual rate. Please consider this renewal package the next step in our ongoing conversation about how we can best meet your needs. We may be able to work together to help you get more value out of your benefits program or reduce overall costs. We'd be happy to re-evaluate your plan design and benefits usage and discuss your options. Your Basic Life Renewal We understand that handling a Life insurance claim takes a special touch. Our Life benefits analysts complete annual grief training. This program helps them empathize with beneficiaries and recognize when they need special attention. We strive to help you make a tough time easier. Our goal is to provide support with easy claim filing, timely decisions, and prompt payment of approved claims. Census Demographics for Basic Life Categories Prior Calculation Current Calculation Change Female Lives 112 102 -10 Male Lives 260 255 -5 Benefit Volume $17,995,200 $17,251,600 $-743,600 % Benefit Volume Age 50 + 25% 25% 0% Based on our thorough analysis, we're offering the renewal rate[s] listed below. Renewal Date CurrentRenewal - Monthly Premium Change " October 1, 2026 $0.070 $0.070 $0 Rate mode is Per$1000 of Benefit **Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2028. The Standard is committed to helping you provide employees and their beneficiaries with the support they need. Below is a reminder of the additional services and tools offered with your Life plan. The Life Services Toolkit For employees, online services include estate planning and state-specific will preparation, identity theft prevention, financial calculators, wellness resources and more. For beneficiaries, the Life Services Toolkit offers grief and loss support by phone, online and face-to-face. They can also take advantage of access to financial counselors, legal consultation and other support services. This service is offered through a vendor that is not affiliated with The Standard. Travel Assistance Travel Assistance can provide a sense of security for your employees and their eligible family members anytime they travel with minimal restrictions. Available 24 hours a day —with access online or through a single phone call — Travel Assistance offers a full range of trip planning and travel support, including emergency evacuation services and medical, legal, and translation service referrals. This service is offered through a vendor that is not affiliated with The Standard. Your Additional Life Renewal Your Additional Life insurance from The Standard allows you to expand the benefit options you offer your employees. Your Additional Life plan can offer choice, flexibility, convenience and greater peace of mind for employees. Census Demographics for Additional Life Categories Prior Calculation Current Calculation Change Female Lives 40 34 -6 Male Lives 130 122 -8 Benefit Volume $23,285,000 $21,100,000 $-2,185,000 % Benefit Volume Age 50 + 25% 27% 2% Based on our thorough analysis, we're offering the renewal rate[s] listed below. Age Graded Rates for Additional Life: Change "Age Band Current Rate Renewal Rate Volume Monthly Premium 0—29 $0.058 $0.058 $1,580,000 $0 30—34 $0.061 $0.061 $1,760,000 $0 35—39 $0.075 $0.075 $4,030,000 $0 40—44 $0.117 $0.117 $3,950,000 $0 45—49 $0.184 $0.184 $4,070,000 $0 50—54 $0.286 $0.286 $2,780,000 $0 55—59 $0.456 $0.456 $1,280,000 $0 60—64 $0.570 $0.570 $1,000,000 $0 65—69 $0.820 $0.820 $630,000 $0 70—74 $1.348 $1.348 $0 $0 75 and over $4.280 $4.280 $20,000 $0 Total Monthly Premium Change: $0 Rate mode is Per$1000 of Benefit Age Graded Rates for Spouse Life: Change "Age Band Current Rate Renewal Rate Volume Monthly Premium 0 - 29 $0.093 $0.093 $120,000 $0 30 -34 $0.093 $0.093 $370,000 $0 35 -39 $0.114 $0.114 $720,000 $0 40 -44 $0.164 $0.164 $350,000 $0 45 -49 $0.247 $0.247 $430,000 $0 50 -54 $0.392 $0.392 $620,000 $0 55 -59 $0.630 $0.630 $260,000 $0 60 -64 $0.966 $0.966 $190,000 $0 65 -69 $1.638 $1.638 $0 $0 70 -74 $3.108 $3.108 $10,000 $0 75 and over $6.278 $6.278 $10,000 $0 Total Monthly Premium Change: $0 Rate mode is Per Thousand **Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2028. Your Long Term Disability Renewal The Standard's Long Term Disability insurance helps your employees protect a portion of their incomes. Our holistic approach can also support productivity by helping employees stay at or return to work. This coverage includes a Reasonable Accommodation Expense Benefit, which reimburses employers for approved workplace modifications of up to $25,000 that enable disabled employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD benefit payment. Census Demographics for Long Term Disability Categories Prior Calculation Current Calculation Change Female Lives 112 104 -8 Male Lives 260 253 -7 Benefit Volume $2,502,528 $2,286,760 $-215,768 % Benefit Volume Age 50 + 28% 28% 0% Experience Data for Long Term Disability Components From October 1, 2019 through February Adjusted Premium $257,856 Incurred Claims $174,300 Number of Active Claims 2 Number of Closed Claims 0 Experience Rate 0.27 Credibility 25.00% Manual Rate 0.23 Blended Rate * 0.24 Blended Rate = (Experience Rate)(Credibility)+ (Manual Rate)(1-Credibility) Based on our thorough analysis of the plan and future expected claim experience, we're offering the renewal rate[s] listed below. Renewal Date Current Rate Renewal Rate Monthly Premium Change " October 1, 2026 $0.236 $0.236 $0 Rate mode is Percent of Insured Earnings **Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2028. Thank You and Next Steps We appreciate the opportunity to continue our partnership with City of Southlake. A summary of our Renewal Offer is in the chart below. Thank you for allowing Standard Insurance Company the opportunity to support your insurance needs. Product &Services Through 09/30/26 Effective 10/01/26 Basic Life $0.070 Per$1000 of Benefit $0.070 Per$1000 of Benefit Travel Assistance Included in Rates for Life Included in Rates for Life Basic AD&D $0.025 Per$1000 of Benefit $0.025 Per$1000 of Benefit Additional Life Rate Varies Rate Varies, no change Spouse Dependent Life Rate Varies Rate Varies, no change Member AD&D $0.030 Per$1,000 of Benefit $0.030 Per$1,000 of Benefit Spouse AD&D $0.030 Per$1,000 of Benefit $0.030 Per$1,000 of Benefit Child AD&D $0.030 Per$1,000 of Benefit $0.030 Per$1,000 of Benefit Child Dependent Life $0.200 Per$1000, Elective $0.200 Per$1000, Elective LTD $0.236 Percent of Insured $0.236 Percent of Insured Earnings Earnings *The above shown rates are monthly. You can count on us to help you retain and attract employees by providing the benefits and services they value — now and for years to come. We're always available to address any questions you have about this renewal or for any service needs. Please reach out to the Dallas group office at (800) 727-7112 and we'll be happy to help. 94 a C Carin 9 foryou 101 in all ways , SM Always , (a. HealthAdvocatd'A Life & Emotional Health (EAP) Prepared for: City of Southlake 4/29/2024 Life& Emotional Health Health Advocate Proposal Trusted support for organizations and their employees Health Advocate's Life& Emotional Health solution offers caring, in-the-moment support, to modern access to emotional health resources and first-class partnerships with human resources and leadership. From individual counseling to conflict resolution and crisis intervention, our experts give you the support you need to create a workplace that's emotionally healthy and psychologically safe. Digital engagement Our digital experience is inclusive and easy +:V wy_ - to navigate, with multiple ways for members to browse, access services and reach their optimal emotional well-being. • Personalized assessments, checklists : - Support/ • Schedule online counseling,coaching CoachingLifestyle r Virtual Telehealth Platform • State-specific Legal Center • Financial Fitness Center L Face-to-Face Sessions Call• Email • Message • Live Chat g1 Expert clinical support Calls to our program are answered by a Health Advocate Master's-level EAP clinician,who provides confidential, in-the-moment support for a wide range of personal challenges. Experienced Work/Life Specialists help individuals achieve a healthy work/life balance. Fr _7 ia rEmo rManagel, rFinanc' 11 rm-aster's—, ( tional , I I ; W rklLife level Wellness Assistance 0 & Legal LLfinicians) iL speciafists , LPr:ogr�amAj Experts., 6L 6L �A L66L 2417Support•250+Languages•HIPAA-Compliant cg HealthAdvocateM ©2024 Health Advocate Life& Emotional Health Health Advocate Proposal Powerful digital resources Our digital platform offers self-service access to numerous resources and information,as well as real-time engagement through chat and instant messaging. o�. Virtual self-service • Members log on to the Health Advocate website/app • Complete a virtual assessment i • Choose a provider • Schedule their own appointment Digital Cognitive Behavioral Therapy(dCBT) Self-guided resource features evidence-based content, practical resources and inspiration to change thinking patterns and improve quality of life. Personalized Legal Center State-of-the-art legal library and state-specific templates to create wills, powers of attorney, rental agreements and more. Free consults with Legal Specialists and discounts if retained. Financial Fitness Center The latest resources to help employees reach their financial goals - budgeting, debt management, taxes, retirement planning and more. Free Financial Specialist consults and discounts if retained. One free 30-minute consultation per issue,per year Additional tools and resources • Leading-edge educational content across the emotional well-being spectrum •Courses, webinars, and personalized assessments •Content specific to users' needs and preferences cg HealthAdvocateM ©2024 Health Advocate Life& Emotional Health Health Advocate Proposal Compassionate, in-the-moment support Our in-house clinicans offer caring, in-the-moment support when coaching on incredibly personal issues.With our hands-on approach and multiple ways to engage with us,we tailor our interactions to the needs of each individual. ` p Live intake and in-depth clinical assessment a 0 Personalized care plan s Guidance to the most appropriate level of support: Self-guided•In-person•Phone• Video 0° Instant access to all program services Hassle-Free Claims— Health Advocate works closely Over 85% with virtually every health plan, so members can count of cases are on continuity of care and seamless integration with their successfullygrog resolved within the program carrier's mental health network. Expansive open provider network Health Advocate has an extensive open network of over 65,000 licensed professional counselors in the U.S., Canada and Puerto Rico. Our program is Knox-Keene Licensed in California. Covering a wide range of specialties: • Stress • Gender identity • Anxiety • LGBTQIA+ • Depression • Substance abuse • Relationships • Trauma cg HealthAdvocateM ©2024 Health Advocate Life& Emotional Health Health Advocate Proposal Complete end-to-end support Our solution supports mental and physical health, legal and financial wellness and work/life balance, as well as the health of your organization. Short-Term Mobile Leadership Onsite Counseling& Lifestyle and Online Support &Virtual Coaching Referrals Tools Center Training 0 �Q0 24/7 Clinical Legal and Unlimited Disruptive Executive and Work/Life Financial Management Event Support Support Support Consultations Support (DEM) Program Work/life balance and optimal performance Work/life balance is essential to a healthy and productive workforce.Our team of trained experts helps ease the burden of everyday stressors by researching and arranging local resources— ensuring employees stay focused. Legal& Time Concierge Services Financial Eldercare Management Concerns Our - research: Aspects1. Home maintenance services 2. of trip. . restaurants and attractions Relocation Childcare Identity Theft Issues • ' vendors cg HealthAdvocateM ©2024 Health Advocate Organizational Support Health Advocate Proposal Focus on leadership and HR Our program recognizes that the stronger your leadership, the stronger your organization. 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Management Assistance 2417 Disruptive Event Program Management Services Managers and supervisors have Customized services help organizations unlimited telephonic access to our quickly react and respond to events specialists for guidance on a variety that impact employee productivity and of employee and workplace issues. well-being. 140+critical incidents monthly-, Leadership Trainings Critical Incident Support for: and Workshops* • Natural disasters Sessions empower management • Employee deaths to learn new skills and techniques • On-the-job accidents to strengthen overall performance. • Workplace violence Leadership Referrals • And more Our EAP Professionals consult with Violence Prevention Support supervisors and managers on sensitive Includes: employee situations. • Threat Management Team Substance Abuse Professional • Threat of Violence Consultation (SAP) Evaluations* • Fitness for Duty Evaluation with Violence Screen • Corporate Security Integration • Physical Security Audits • And more cg HealthAdvocateM ©2024 Health Advocate Communications Health Advocate Proposal • MOE Educate... Promote... Engage! Our program includes a suite of materials and support to educate your leadership team, leverage your internal communications and keep everyone engaged. For Employees I For Leadership F1 Educational emails U Employee benefit awareness 0 Flyers sessions a4 Posters & awareness campaigns Manager training sessions* =+ Home mailings* Webinars Digital monthly member newsletter ^ Online trainings and coursework M Promote the Health Advocate 0 r website and app AU Onsite workshops* Monthly promotions boost awareness Keep well-being top of mind year-round with our annual Activity Guide. This calendar includes monthly promotions and supporting materials such as flyers, monitor screens and email signatures. Health Advocate helps the whole family— Employees, spouses/partners, dependents, parents, parents-in-law l HealthAdvocateM ©2024 Health Advocate Reporting Health Advocate Proposal Real-time reporting, driven by data and Al Measure the value and impact of our programs using real-time, interactive and integrated reporting tools. �I I 1sJ745 Ot ;,M �o - �. r e O O © GO-, � Engagement Cases across all Savings Memberjourney Satisfaction AI-driven percentage programs and ROI insights scores recommendations Health Insights Dashboard* Key claims metric comparisons between time periods,individual health plans and k�""m�yn.o331W , sub-organizations Medical and pharmacy claims trends 39,537 $129.6M K n0.88 35 © and outcomes ❑ ��Measurement against market trends ® and key cost savings opportunities Enhanced reporting on: w • High-cost claimants ® Chronic medical conditions L„—,t, —� -- - Adv atB • Pharmacy spending • Predicted risk *Claims data required HealthAdvocateM ©2024 Health Advocate Pricing Service Price Life& Emotional Health (EAP) 1-6 face to face sessions $1.75 PEPM* Terms & Conditions Rates guaranteed through 09/30/2027. Pricing expires 60 days from the date of this proposal. Communications Materials: Health Advocate provides standard communications materials to clients for distribution to employees who are eligible for the program. *Life& Emotional Health (EAP) includes per issue, per member for in-person,video,&telephonic chat counseling,also includes family and work/life balance,financial wellness, legal services,concierge services,& Digital Cognitive Behavioral Therapy(dCBT).On-site support that is needed for any on-site training and/or disruptive event management is a fee of$275 per hour, plus travel expenses. ©zoza�-Waid,a&=t- d HealthAdvocate About Us Health Advocate Proposal Helping employers care for their employees & families in all ways. Always. Health Advocate offers a broad spectrum of integrated solutions that make healthcare easier and get people fully engaged in their health and well-being. A whole-person population health solution for everyone GUIDE ENGAGE M OWER IN PIRE PROTECT Health Advocacy Clinical Care Life& Emotional Personalized Health Screenings & Navigation Management Health (EAP) Well-Being &Vaccinations HIPAA-Compliant Member Website/App NCQA-Certified We welcome the opportunity to find out more about your organization's challenges so we can design a customized solution to meet your specific needs. We thank you for your consideration. Ashley Molina Client Success Executive,Channel 551.697.8212 amolina@HealthAdvocate.com allealthAdvocate'm ©2024 Health Advocate Testimonials Health Advocate Proposal What our members are saying... It's important to me that Health The service provided by Health Advocate was knowledgeable Advocate is truly remarkable. I would about LGBTQIA+ issues, and it's have paid thousands of dollars that I a testament to good mental health didn't truly owe. services that include everyone. Health Advocate has always had my It's a great resource for everyone. trust since they became a resource many As a manager, I definitely let my years ago. Keep up the excellent work. people know it's available. My experience was top-tier, as they are I took the tobacco cessation workshop available 24/7.Thank you. and have been tobacco-free for 6 months. This is the best and most effective benefit my company provides. I love the motivation my Wellness Coach provides. It has given me the I've had very good experiences with the extra push to live a healthier life. EAP, and I refer people all the time. Both of the nurses were super I'm going through caregiving issues with helpful and knowledgeable.They were my parents,and you find resources for a voice when I didn't have one. me anytime I need help. My issue was big, but my advocate I would probably not be in therapy now if didn't stop until I had what I needed. I had to navigate the process of finding Thank you! a therapist in my area. My advocate navigated that daunting and unpleasant This was a 10 out of 10 experience. process for me. I wish everyone had someone like you to help with situations like mine. They resolved my issue with minimal involvement on my part.This allowed The nurse was phenomenal with me to focus on my work and not chasing understanding our case and contacting healthcare workers. providers to try to resolve our issue. HealthAdvocateM ©2024 Health Advocate