Exhibit 1 - Agenda Information Sheet - Amendment 2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: April 4, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a second amendment to a contract between the City of Denton and United
Healthcare Insurance Company, Inc., amending the contract approved by the City Council on October 23,
2018, in the not-to-exceed amount of $625,600.00; amended by Amendment 1 approved by Purchasing;
said second amendment to continue to provide employee voluntary vision insurance coverage; providing
for the expenditure of funds therefor; and providing an effective date (RFP 6826 – providing for an
additional second amendment expenditure amount not-to-exceed $107,400.00, with the total contract
amount not-to-exceed $782,000.00).
INFORMATION/BACKGROUND
As part of the City’s comprehensive benefits program, City employees and retirees can elect voluntary
vision coverage. The City’s voluntary vision coverage is a fully-insured product and funded 100 percent by
employees through payroll deduction or by bank draft for retirees. The City does not contribute to the
premiums for voluntary products. Due to increases in enrollment (14.1 percent from the 2019 plan year to
February 2023) and vision rates (12 percent rate increase for the 2022 plan year and 10 percent rate increase
for the 2023 plan year), the City reached the initial not-to-exceed amount of $625,600 in December 2022.
UHC has been the vision carrier since January 1, 2019, and no plan benefits changes have been made since
implementation. The City’s contract with UHC expires on December 31, 2023, however, the not-to-exceed
amount has been exhausted. The amendment will allow the City to continue the voluntary vision coverage
through the remainder of the current contract. The City will be going out for a Request for Proposal (RFP)
for benefits to be effective January 1, 2024.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On October 23, 2018, City Council approved a contract with United Healthcare Insurance Company, Inc.,
in the not-to-exceed amount of $625,600 (Ordinance 18-1672).
RECOMMENDATION
Award Amendment No. 2 with United Healthcare Insurance Company, Inc., to continue to provide
employee voluntary vision insurance coverage, in a not-to-exceed amount of $107,400, for a total amended
contract amount of $782,000.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRINCIPAL PLACE OF BUSINESS
United Healthcare Insurance Company, Inc.
Hartford, CT
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on December 31, 2023.
FISCAL INFORMATION
The voluntary vision coverage is funded 100 percent by employees through payroll deduction or by bank
draft for retirees. The City does not contribute to the premiums for voluntary products.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Amendment 1
Exhibit 4: Ordinance and Amendment 2
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Linda Kile, 940-349-8388.
Legal point of contact: Marcella Lunn at 940-349-8333.