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AGENDA ITEM REVIEW FORM

5.D.

Special City Council Meeting

Meeting Date:: 06/25/2019
Department Head:: Kay Macuil
Submitted By:: Kay Macuil, City Attorney, Attorney's Office

Action Requested:

Motion

ITEM:

Discussion and possible action on any and all matters regarding employee benefits contracts which are not administered by the San Luis Employee Benefits Trust. (Maria Muñoz, Human Resources Technician)

SUMMARY:

Background

At the budget meeting on April 26, 2019, Benefits Broker and Consultant Susan Posada presented costs and other information for City Council's consideration regarding renewing the employee benefits. (A copy of the PowerPoint provided at that meeting is attached).

The San Luis Employee Benefits Trust does not administer all the employee benefits. The city contracts directly for some of the employee benefits. Those contracts are the vision care plan, short-term disability, long-term disability (for public safety employees only), basic life insurance including accidental death and dismemberment, and a medical plan through Transwestern Insurance. The Transwestern Insurance is a small contract of $96,50 and was approved by the City Manager under his purchasing authority.

Policies that are changing

Changes Ms. Posada negotiated this year include:

1. A 4-year lock on the vision care rates (Ms. Posada informs us that without a change in rate, the provider does not require a signature); and

2. Expansion of short-term disability benefits, which will allow employees who are eligible for short-term disability to take sick leave while on disability up to 100% of their income.

3. The accidental death and dismemberment coverage rate changed from a premium of 40¢ per $1,000 of benefits to 50¢ per $1,000.00 of benefit.

Since City Council had no objection to these changes at the budget meeting in April, staff included these changes in the summary of benefits at open enrollment in May. Other contracts remain the same.

Staff recommends approval of these changes.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE FOUR-YEAR LOCK ON RATES FOR THE VISION BENEFIT, THE AMENDMENT TO THE SHORT-TERM DISABILITY AND THE RATE CHANGE FOR ACCIDENTAL DEATH AND DISMEMBERMENT AS PRESENTED.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:: Yes
CITY/STATE/FEDERAL FUNDS:: City
TOTAL:: 148196.83
BUDGETED AMOUNT:: ?
AVAILABLE AMOUNT TO TRANSFER:: N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:: ?

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

The annual premium for the vision plan is $45,747.48
The annual premium is estimated to be $21,334.73
The annual premium for the short-term disability is with the amendment is $81,114.62 (this is a 37.12% change and $21,956.80 increase)

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