Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: September 19, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Symetra Life Insurance Company, for
basic/supplemental life and accidental death and dismemberment and voluntary short-term and group long-
term disability (collectively “Life and Disability”) coverage for City employees for the Human Resources
Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8239 –
awarded to Symetra Life Insurance Company, for three (3) years, with the option for two (2) additional one
(1) year extensions, in the total five (5) year not-to-exceed amount of $5,750,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
The City requested competitive proposals for basic/supplemental life and accidental death and
dismemberment (AD&D), voluntary short-term (STD), and group long-term disability (LTD) (collectively
“Life and Disability”) benefits for employees as part of the City’s comprehensive benefits package. The
cost for the basic life AD&D, and group LTD benefits is paid 100% by the City; the cost for the
supplemental life and AD&D and voluntary LTD is paid 100% by the employees.
Life and Disability benefits have been provided through Symetra Life Insurance Company (Symetra) since
January 1, 2019. Symetra has been a good partner during this time period, with the last of the City’s one-
year renewals ending on December 31, 2023. Due to the expiration of the current contract, RFP #8239 was
issued to the life and disability insurance market.
The City received responses to the RFP from nine (9) life and disability insurance companies, including
Symetra, the incumbent vendor. Table 1 below lists the companies that responded, as well as the comparison
of the proposed prices for the life and disability benefits as compared to the current cost through Symetra.
Table 1 – Proposed Life and Disability Rates
Company Increase (Decrease) to Current Rates
Blue Cross Blue Shield of TX/Dearborn (7.50%)
MetLife 207.50%
Mutual of Omaha Same as expiring rates
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Ochs Inc Same as expiring rates
Standard Same as expiring rates
SunLife Same as expiring rates
Symetra – Incumbent – BAFO (12.50%)
The Hartford Same as expiring rates
Voya Same as expiring rates
All proposals were reviewed and scored by an evaluation team that included staff from the City’s Employee
Insurance Committee (EIC), Human Resources, and other departments.
Based on the evaluation of the proposals, both staff and the City’s benefits consultant, McGriff, Seibels, &
Williams, recommend awarding the contract for Life and Disability insurance benefits to Symetra, the
incumbent vendor. Symetra’s proposal provides lower monthly premiums over the current rates and
represents a 12.50% savings over the current plan, which means savings for the City and employees.
Symetra also proposed a 3-year rate guarantee through the end of 2026 (rates will not change during the
first three (3) years of the contract).
Symetra’s benefits will remain the same under the new contract.
Project
Description
Estimated 5-Year Expenditure
Year 1 Year 2 Year 3 Year 4 Year 5
Basic
Life/AD&D $53,057.34 $55,710.21 $58,495.72 $64,491.53 $71,101.91
Supplemental/
Dependent
Life/AD&D
$451,575.60 $474,154.38 $497,862.10 $546,694.41 $600,422.11
Retiree Life
Only $32,313.60 $33,929.28 $35,625.74 $41,147.73 $47,525.63
Short-Term
Disability $264,129.12 $277,335.58 $291,202.35 $321,050.60 $353,958.28
Long-Term
Disability $114,822.89 $120,564.03 $126,592.23 $139,567.94 $153,873.65
Contingency $91,589.86 $96,169.35 $100,977.81 $111,295.22 $122,688.16
Total $1,007,488.41 $1,057,862.83 $1,110,755.95 $1,224,247.43 $1,349,569.74
*5% employee increase each year, starting with 2024 average count for Years 2-5
Request for Proposals was sent to 115 prospective suppliers of this item, including three (3) Denton firms.
In addition, specifications were placed on the Procurement website for prospective suppliers to download
and advertised in the local newspaper. Nine (9) proposals were received and evaluated based on published
criteria, including compliance with specifications, probable performance, and price. Based upon this
evaluation, Symetra Life Insurance Company was ranked the highest and determined to be the best value
for the City.
RECOMMENDATION
Award a contract with Symetra Life Insurance Company, for basic/supplemental life and accidental death
and dismemberment and voluntary short-term and group long-term disability (collectively “Life and
Disability”) coverage for City employees for the Human Resources Department, in a three (3) year, with
the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of
$5,750,000.
PRINCIPAL PLACE OF BUSINESS
Symetra Life Insurance Company
Bellevue, WA
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract, with the option to renew for two (2) additional one (1) year periods, with
all terms and conditions remaining the same. Services under this contract will begin on January 1, 2024.
FISCAL INFORMATION
These services will be funded from a combination of the following Health Insurance Fund accounts,
850500.6716, 850500.6163, and 850500.6167.
Basic/Supplemental Life and AD&D 850500.6716 $3,370,518.02
Group Long-Term Disability 850500.6163 $720,962.82
Voluntary Short-Term Disability 850500.6167 $1,658,443.52
The requisition will be entered into the Purchasing software system in the amount of $1,007,488.41, after
October 1, 2023. The budgeted amount for this item is $5,750,000. The City will only pay for services
rendered and is not obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Ordinance and Contract
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.