Water and Power Conservation,,, a way of life
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1 ANTONIO R. VILLARAIGOSA Mayor Commission THOMAS S. SAYLES, Prc$idcnr ERIC HOLOMAN, Vice-President CHRISTINA E. NOONAN JONATHAN PAR FREY BARBARA E. MOSCHOS,sccretmy RONALD 0. NICHOLS Ge11eral Manager April21, 2011 The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California Honorable Members: Subject: Health Plan Agreement Nos and with United Concordia Dental Plans of California, Inc. Pursuant to Charter Section 373, enclosed for approval by your Honorable Body is Resolution No , adopted by the Board of Water and Power Commissioners (Board) on April20, 2011, approved as to form and legality by the City Attorney, which authorizes execution of United Concordia Dental Plans of California, Inc., Agreement Nos and , effective July 1, As directed by the Board, transmitted to you are supporting documents. If no Council action is taken within 60 days of submission, this item shall be deemed approved pursuant to the Administrative Code. If there are any questions regarding this item, please contact Ms. Winifred Yancy, Director of Local Government and Community Relations, at (213) Sincerely, Barbara E. Moschos Board Secretary BEM:oja Enclosures: LADWP Resolution Board Letter Agreement Nos and (CD) Water and Power Conservation,,, a way of life 111 North Hope Street, Los Angeles, California 90012~2607 Mailing address: Box 51111, Los Angeles Telephone: (213) Cable address: DEWAPOLA. rf9', Racyde;tie and mada tn:rn fi:'ic')'cloo wasta 'ClQ'
2 c/enc: Mayor Antonio Villaraigosa Jan C. Perry, Chair, Energy and the Environment Committee Gerry F. Miller, Chief Legislative Analyst Miguel A. Santana, City Administrative Officer Rafael Prieto, Legislative Analyst, CLA William R. Koenig, Chief Administrative Analyst Winifred Yancy
3 RESOLUTION NO BE IT RESOLVED that Agreements and , approved as to form and legality by the City Attorney and filed with the Secretary of the Board, between the Department of Water and Power of the City of Los Angeles (LADWP) and United Concordia Dental Plans of California, Inc., be and the same are hereby approved. BE IT FURTHER RESOLVED that pursuant to City Charter Section 371(e)10, these Agreements are exempt from the competitive bidding process because existing labor agreements specifically list the various plans as health care options for LADWP employees and therefore competitive bidding is not practical or advantageous. BE IT FURTHER RESOLVED that pursuant to City Charter Section 1022, the services require specialized expertise and can be performed more economically or feasibly by an independent contractor than by City employees. BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Water and Power Revenue Funds in payment of the obligations arising under these agreements. BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board be and they are hereby authorized and directed to execute said agreements for and on behalf of the LADWP, subject to approval by the Los Angeles City Council in accordance with City Charter Section 373. I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of a resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held APR 2 0? 0 11
4 LOS ANGELES DEPARTMENT OF WATER AND POWER (LADWP) BOARD APPROVAL LETTER II TO: BOARD OF WATER AND--POWER COMMISSIONERS. DATE: March 31, 2011 a~a.k}}j~ a~ CECILIA K.T. WELDON Chief Administrative Officer RONALD 0. NICHOLS General Manager SUBJECT: Agreements and Between the Los Angeles Department of Water and Power and United Concordia Dental Plans of California, Inc., to Provide Dental Care Services for Active and Retired Employees - I I FOR COMMISSION OFFICE USE: RESOLUTION NO. CITY COUNCIL APPROVAL IF YES, BY WHICH CITY REQUIRED: Yes IXl No 0 CHARTER SECTION: 373 New Contract (not replactng existing contract) D Replacement Contract [2('] Amendment to Existing Contract PURPOSE Transmitted for approval by your Honorable Board is a resolution, approved as to form and legality by the City Attorney, that authorizes the Los Angeles Department of Water and Power (LADWP) to execute Agreements and , with United Concordia Dental Plans of California, Inc. (United Concordia) to provide continued dental care services to the LADWP's active and retired employees in accordance with long-standing agreements with the various labor organizations and the Retired Employees Association. Agreement will cover active and retired employees who enroll in the United Concordia Plus (DHMO) plan. Agreement will cover retirees who enroll in the United Concordia Preferred (DPO) plan. COST AND DURATION These Agreements are for a one-year period beginning July 1, 2011 and ending June 30, They have an estimated cost to the LADWP of $0.6 million for active employees and $2.4 million for retirees. Premium rates are increased from the current year's rates by 4.3 percent for active employees and 2.0 percent for retired employees. The total projected cost of health and dental plans for active and retired LADWP employees in is $201 million. These costs increased from the current year's costs by 3. 9 percent.
5 Board of Water and Power Commissioners Page 2 March 31, 2011 BACKGROUND The LADWP currently provides health and dental benefits to over 16,000 active and retired employees and their eligible dependents at a budgeted cost of approximately $193.5 million in These benefits have been provided continuously for many years. Existing labor agreements specifically list the various plans as health care options for LADWP employees. For this reason, these plans are renewed annually without a competitive bid process. Because no competitive process is held, these Agreements, once adopted by the Board of Water and Power Commissioners, must be approved by the City Council. METHOD OF SELECTION. 0 Competitive 0 Cooperative Purchase [Xi Sole Source Since existing labor agreements specifically list the various plans as health care options for LADWP employees, in accordance with City Charter Section 371(e)10, the use of competitive bidding would not be practical or advantageous. ENVIRONMENTAL DETERMINATION In accordance with the California Environmental Quality Act (CEQA), it has been determined that awarding contracts with United Concordia to provide continued health care services to the LADWP is exempt pursuant to the General Exemption described in CEQA Guidelines Section (b)(3). General Exemptions apply in situations where it can be seen with reasonable certainty that there is no possibility that the activity in question may have a significant effect on the environment. LOS ANGELES CITY COUNCIL APPROVAL An Executive Directive No. 4 waiver was granted by the Mayor's Office on March 31, 2011 for the Board letter and resolution to proceed directly to the City Council.
6 Board of Water and Power Commissioners Page 3 March 31, 2011 RECOMMENDATION It is recommended that your Honorable Board adopt the resolution and that the Agreement be executed as authorized in the resolution. The City Council shall have sixty (60) days from the date they are transmitted to approve this Agreement. GF:veh Attachment e-c/att: Ronald 0. Nichols Richard M. Brown Aram Benyamin James B. McDaniel Cecilia K.T. Weldon Lorraine A. Paskett Ann M. Santilli John C. Kokoska George Fogelson
Commission THOMAS S. SAYLES,P, esidenl BlUe HOLOMAN,!'ic. p,.esidc,,{ RlCHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY
ANTONIO Mayor R. VILLARAIGOSA Commission THOMAS S. SAYLES,P, esidenl BlUe HOLOMAN,!'ic. p,.esidc,,{ RlCHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY RONALD O. NICHOLS Gel'Iel'.(!/ Mwwger BARBARA E.
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