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BACKGROUND In 1979 the California State Association of Counties — Excess Insurance Authority (CSAC-EIA) was established when 29 California counties formed a member directed risk sharing pool dedicated to controlling losses, and providing risk management and employee benefit solutions. Since then CSAC-EIA's membership has expanded to include special districts, cities, and other public agencies. There are two methods to access the reduced administrative costs and lower premium for benefits. The first method is to participate in the insurance pool and the second method is to become a member of the CSAC-EIA. The City of Pleasanton joined this pool and contracted through the CSAC-EIA for its vision plan on July 1, 2009, and for its life and disability insurance on January 1, 2010. At that time, the City was only required to complete an agreement to pay premiums to participate in these two programs. Historically, the Delta Dental program through CSAC-EIA was only available to counties and special districts. Cities could participate in the CSAC-EIA dental program through what was known as the City Advantage Program (CAP), and Pleasanton took advantage of this program. In 2010, Delta Dental agreed to open the CSAC-EIA Delta Dental program to cities and, as part of the process, merged the CAP pool with the larger CSAC-EIA pool. In order for Pleasanton to continue to retain the Delta Dental program, the City must become a member of the CSAC-EIA, not simply participate in the insurance pool. DISCUSSION As stated earlier, the CAP pool has been merged with the larger CSAC-EIA pool. The City had two options in renewing this program with Delta Dental. It could contract directly with Delta Dental; however the rate quoted includes an increase of 10.5%. The second option was to become a member of CSAC-EIA. Under this scenario, the City would be granted a lower fee increase of 5.7% for the same plan design with the same provider. This translates into a total annual savings of $36,408. To become a member of CSAC-EIA, the City Council must adopt a resolution to join the organization and authorize the City Manager to act on the City's behalf in administrative matters as it relates to the CSAC-EIA. (Those actions that must be approved by the City Council will continue to reside with the governing body.) The resolution format required by CSAC-EIA is attached to this staff report. By becoming a member of CSAC-EIA and implementing the Delta Dental program through this organization effective July 1, 2011, there will be no interruption in dental benefits for City employees. Submitted by: Fiscal Review: Appro ed by: Gam_ r q r , ulie Yua iu Emily Wagner Nelson Nelson Fialho Assistant City Manager/ Director of Finance City Manager Administrative Services Director Page 2 of 3