AGENDA TITLE:
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Adopt a Resolution Waiving the Bid Process and Approving Renewal of Dental Claims Administration Agreement with Stanislaus Foundation for Medical Care and Further Authorizing the Interim City Manager to Execute Agreement (IS - HR)
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MEETING DATE:
February 18, 2026
PREPARED BY:
Cristina Gonzales, Interim Human Resources Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution waiving the bid process and approving renewal of dental claims administration agreement with Stanislaus Foundation for Medical Care and further authorizing the Interim City Manager to execute agreement.
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BACKGROUND INFORMATION:
The third party administrator (TPA) for the City’s self-insured dental plan is Stanislaus Foundation for Medical Care (SFMC). The services provided by SFMC are ministerial in nature and include review and processing of dental claims, submittal of payments to provider or claimant, written notification of denials to claimant, maintenance of records, and preparation of monthly utilization reports. The City Council can waive the bid process when the purchase would be in the best interest of the City. In this case, Stanislaus Foundation for Medical Care provides the self-insured administration of employee dental and orthodontia coverage. It is recommended to keep this low-cost agreement for continuity of services avoiding vendor conversion and employee coverage disruption.
The term of this agreement shall begin on July 1, 2025 and continue in effect until June 30, 2027. This contract, Attachment 1, shall be automatically renewed for an additional one-year term unless notice of intent not to renew is given by one party to the other party at least 60 days prior to the termination date of the current term. The fees, as listed on Exhibit B of Attachment 1, will remain the same for the duration of the contract.
Staff recommends that the City Council adopt the resolution approving the Administrative Services Agreement with Stanislaus Foundation for Medical Care for the administration and processing of dental claims.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Annual cost not to exceed $45,000
FUNDING AVAILABLE:
Included in Benefits Fund appropriations (65522000).