Agenda packet — Beaumont City Council, August 19, 2025 (part 16 of 24)

City of Beaumont (The City)
Appendix H

PLAN I INVEST I PROTECT
VOyA.

Page 1855 of 3058 ends

Voya Financial Fact Sheet
Fourth -Quarter 2024
Our aspirational vision:

Clearing your path to financial confidence
and a more fulfilling life
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company offering products, solutions and technologies that help its individual, workplace and institutional clients become well planned, well invested and well protected. Voya also is purpose -driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World's Most Ethical Companies® by Ethisphere; a member of the Bloomberg Gender -Equality Index; and a "Best Place to Work for Disability Inclusion" on the Disability Equality Index.

Fast Facts
Idg
Total assets under
management and
administration*

15.7 million
Customers
01 10,000
Employees
$894 billion t Top 5
�� Provider of
retirement plans**
{t} Top 3 ID
One of the 50
�� Group provider of lot Largest institutional asset
supplemental health managers globally****
insurance***
*As of Dec. 31, 2024
**Pensions & Investments magazine, Defined Contribution Record Keepers Directory (as measured by total participants), April 2024 ***LIMRA 2Q 2024 Workplace Supplemental Health In Force Final Report; Marketshare-Total Group Based Supp. Health.

Insurance is underwritten by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY), members of the Voya® family of companies. **** Voya Investment Management ranked 48th largest institutional investment manager (of 411 surveyed) on Pensions & Investments' Top Money Managers list published June 2024, based on worldwide institutional AUM as of 12/31/23. This voluntary ranking is open to firms managing assets for U.S. institutional tax-exempt clients. Managers self -report data through a survey distributed by P&l to known and new participating managers. No fee was paid for consideration.

Page 1856 of 3058 ends

PLAN
INVEST

PROTECT
VOA

FINANCIAL

Percentage of adjusted
operating earnings by segment*
Before income taxes and for the trailing twelve months ended Dec. 31, 2024. Excludes notable items by segment and Corporate.
4% Health Solutions
Investment
Management
Wealth
Solutions
Investment Management
Voya Investment Management manages public and
private fixed income, equities, multi -asset solutions
and alternative strategies for institutions, financial
intermediaries and individual investors, drawing on a
50 -year legacy of active investing and the expertise of 300+ investment professionals.

Workplace Solutions
Voya provides workplace benefits and savings products,
technologies and solutions through its Wealth Solutions and Health Solutions businesses. Voya offers innovative digital capabilities that focus on customer needs and
enhance the participant education and user experience
through all life stages. Examples include: myVoyage,
a first -of -its -kind personalized financial -guidance and connected workplace -benefits digital platform, and Voya Claims 360, an integrated and intuitive model designed
to simplify the claims process for supplemental health
insurance products.
- Wealth Solutions
Voya is a leading provider of retirement products and
services in the U.S., serving approximately 39,000 U.S. employers and over 7 million individual retirement plan participants. Voya also has approximately 450 financial professionals serving retail and workplace clients. Voya is focused on guiding Americans to greater retirement
readiness and financial wellness through employer -
sponsored savings plans and holistic retirement and
income guidance.
- Health Solutions
Through its insurance companies, Voya is a leading
provider of supplemental health insurance in the U.S.
and offers a comprehensive and highly flexible portfolio of stop loss, life, disability, and voluntary insurance products to businesses covering approximately 7.2
million individuals through the workplace. Voya also
offers health savings and spending accounts through
our health accounts solutions business. Benefitfocus,
a Voya company and a leading benefits administration
provider, extends the reach of Voya's workplace
benefits and savings offerings by engaging directly with approximately 11.9 million employees in the U.S.

Customer data for Voya's Health Solutions and Wealth Solutions customers per Voya Financial Inc. as of 12131/2023.

Health Account Solutions, including Health Savings Accounts, Flexible Spending Accounts, Commuter Benefits, Health Reimbursement Arrangements, and COBRA Administration offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). HSA custodial services provided by Voya Institutional Trust Company.

Insurance products are underwritten by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Within the State of New York, only ReliaStar Life Insurance Company of New York is admitted, and its products issued. Both are members of the Voya® family of companies. Voya Employee Benefits is a division of both companies. Product availability and specific provisions may vary by state.

VOA

FINANCIAL

PLAN I INVEST I PROTECT

Page 1857 of 3058 ends

Awards and Recognitions

EQUALITY
100
2023
Leader in LGBTQ+
2024
Workplace Inclusion
MSCI ESG Leaders
Indexes Constituent

ETHISPHERE'

WORLD'S MOST

ETHICAL
COMPANIES®
2014 - 2024
Great
Place
To
Work.

Certified
NOV 2024N0V2025
USA
Third -party awards and/or rankings about entities within the Voya family of companies are given based upon various criteria and methodologies. Awards and/or rankings are not representative of actual client experiences or outcomes, and are not indicative of any future performance. For certain awards/rankings, Voya pays a fee to be considered. For material facts regarding an award, including but not limited to whether a fee was paid to be eligible for the award, please visit https://www.voya.com/about-us/our-character/awards-and-recoc nition. "World's Most Ethical Companies" and "Ethisphere" names and marks are registered trademarks of Ethisphere LLC.

THE INCLUSION OF VOYA FINANCIAL, INC., IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF VOYA FINANCIAL, INC., BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Strengthening our culture
through workplace flexibility,
employee well-being and
living our purpose
84% 71%
favorable sentiment overall
among Voya Financial
employees.

Source: Voya Financial employee sentiment survey data, as of June 2024
Voya provides a variety of benefits
and services for its employees with
an emphasis on physical, mental
and financial well-being, including a
no -cost tuition program, access to
financial advisors and paid parental
leave for both parents after the birth
or adoption of a child.
of employees volunteered over
18,000 hours during Voya's
2024 National Days of Service.

Source: Benevity data, as of June 25, 2024
As part of Voya's National Days of
Service, Voya employees continue
to give back to their communities
and advance Voya's commitment to
volunteerism.
25%
of employees belong to
at least one of Voya's 11
employee -led councils.

Source: Voya Financial workforce data, as of
Dec. 31, 2024
Each council creates a supportive
community of colleagues who share
similar experiences and their allies,
as they learn to better understand
and embrace differences and
support each other. Councils are
also business collaborators who
help the company advance strategy
through business plans, goal
development and progress tracking.

PLAN I INVEST I PROTECT

Page 1858 of 3058 ends

VOA

FINANCIAL

Voya's culture and values are reflected in how we serve clients and communities r
Voya Foundation makes a meaningful difference in the community and empowers employees to engage in supporting causes that matter most to them, including nonprofits that serve health and human services, education and animal welfare.
tit
Customers
A customer -centric approach drives
our strategy to provide innovative,
technology -driven solutions and
capabilities that promote the
financial well-being of all of our
customers' employees.
4616
Colleagues
We are committed to attracting
and retaining talent and
incentivizing high performance.

We prioritize the development of
a workforce that best serves the
diversity of the marketplace, while
cultivating a meaningful employee
experience, a culture of inclusion,
and a holistic approach to our
employees' well-being.
t.�
Communities
We partner with businesses and
organizations that share our
commitment to advancing financial
resilience and meeting the needs of
our local communities.

Dozens of Voya employees serve on nonprofit boards, where they develop leadership skills and connect with colleagues around Voya's culture of giving back.

Each employee receives 40 hours per year of paid time off to volunteer.

All full-time employees receive up to $5,000 from Voya Foundation to match personal donations to any approved 501(c)(3) organization.

Voya Cares® resources, thought leadership and advocacy for disability inclusion Voya Cares is committed to making a positive difference in the lives of people with disabilities and their caregivers from birth through aging. The program provides advocacy, educational resources and workplace solutions to help
employers meet the complex needs of the aging and
disabilities community in their workforce. Learn more by visiting VoyaCares.com.

Voya also received a top score of 100 on the 2024 Disability Equality Index®, designating the company as a "Best Place to Work for Disability Inclusion" for the seventh consecutive year.

BEST PLACE TO WORK FOR

DISABILITY INCLUSION

UNITED STATES
100
VOA

FINANCIAL
Products and services offered through the Voya® family of companies. 201713 254277_0225 CN4188064_0126

PLAN I INVEST I PROTECT

Page 1859 of 3058 ends

City of Beaumont (The City)
Appendix I

PLAN I INVEST I PROTECT
VOyA.

Page 1860 of 3058 ends

Kim Anderson
Strategic Relationship Manager, Tax Exempt Markets
Joined Voya in 1999
As a Strategic Relationship Manager, Kim oversees the business strategy for existing clients in the governmental and healthcare markets. These responsibilities include informing clients of updates to Voya solutions and services, advising on regulatory impacts to client plans, conducting research and briefing clients on industry best practices, serving as a client advocate within Voya for product and service enhancements, and is responsible for the overall relationship and satisfaction of her clients. Kim was formerly a Regional Vice President within Voya's Tax Exempt Markets division. She managed and supported Voya's local enrollment financial professionals, served as the single point of accountability for our tax exempt plan sponsors, and worked to ensure our defined contribution plan clients were satisfied with the services they receive from Voya.

Kim has held various roles servicing defined contribution plans in the Tax Exempt marketplace. Kim has provided on -site services to plan participants and has hired, trained and supervised enrollment financial professionals. She implemented our management system for field leaders and enrollment financial professionals and has knowledge and experience with Voya's systems, processes and tools necessary to support our local enrollment financial professionals. _ducatioi
• Bachelor of Science, Texas A&M
University -Commerce
Professional Designations
• Financial Industry Regulatory Authority
(FINRA) Series 7, 24 and 66
• Life, Health and Variable Annuity Licenses
Investment advisor representative and registered representative of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC).

CN2727860_0225

PLAN I INVEST I PROTECT

Page 1861 of 3058 ends

VOAy«

FINANCIAL

Aubrae Lombardo
Plan Manager
Joined Voya in 2020
As a plan manager, Aubrae is the primary plan sponsor contact for all day-to-day service needs.

The liaison between the local field office, plan sponsor, operational departments and call center.

Daily responsibilities include assisting with inquires, providing monthly and quarterly reports, supporting plan audits, and assisting sponsors and client relations managers with a variety of issues.

She has been with Voya since 2020, starting in the call center as a Team Lead and now as a Plan manager. She supports 401(k), 401(a), 403(b) and 457 plans, Healthcare, Governmental, Education and Corporate.

Registered representative of, Voya Financial Partners, LLC (member SIPC).

CN2727860_0225

PLAN I INVEST I PROTECT

Page 1862 of 3058 ends

VOAy«

FINANCIAL

Bob L. Tan, CFP®' CRPC®
Voya Financial Advisors
Joined Voya in 2006
Bob Tan is a seasoned financial advisor with over two decades of experience, commencing his career in 1998. He graduated with a Bachelor's degree from the University of California, Riverside.

In 2021, he achieved the esteemed Certified Financial Planner, CFP° designation, showcasing his commitment to excellence in financial planning.

Joining Voya Financial Advisors in 2006, Bob has been a dedicated professional in the industry.

He holds a series of licenses including FINRA Series 6, 7, 24, 26, 63, and 66, demonstrating a comprehensive understanding of financial markets and regulations. Furthermore, Bob is a Chartered Retirement Planning Counselor, CRPC®, further enhancing his expertise in retirement planning strategies.

Education
• Bachelor of Science,
University of California, Riverside
Professional Designations
■ Financial Industry Regulatory Authority
(FINRA) Series 6, 7, 24, 26, 63 and 66
Affiliations
• Chartered Retirement Planning Counselor,
CRPC°
Registered representative of, Voya Financial Partners, LLC (member SIPC).

CN2727860_0225

PLAN I INVEST I PROTECT

Page 1863 of 3058 ends

VOAy«

FINANCIAL

Greg Anderson
Implementation Manager, Client Transition Services
Joined Voya in 1997
Greg manages the transition process for Voya's public sector clients. Responsibilities include complete oversight of the plan transition process — including communication with plan sponsors, engagement with prior record keepers, plan installation and testing, participant transition communications, and coordination of project timelines.

Greg has worked in Voya's Arizona, California, and Connecticut offices, providing both participant and plan management services. Greg served as the team leader and business consultant for the Government Major Case Administrative Services team, as well serving as the team leader and business consultant for the Government Major Case Operations team. • Bachelor of Science,
Business Administration, University of
Arizona
Professional Designations
• Financial Industry Regulatory Authority
(FINRA) Series 6
Affiliations
• Society of Professional Asset Managers
and Record Keepers (SPARK)
Registered representative of, Voya Financial Partners, LLC (member SIPC).

CN2727860_0225

PLAN I INVEST I PROTECT

Page 1864 of 3058 ends

VOA

FINANCIAL

City of Beaumont (The City)
Exceptions
Exhibit A — Agreement for Professional Services

PLAN I INVEST I PROTECT
VOyA.

Page 1865 of 3058 ends

City of Beaumont
Voya respectfully requests the clarifications to Exhibit A — Agreement for Professional Services below noted in red track changes.

3. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services;. Contractor shall remain primarily responsible for all work performed by any subcontractor. provicec, iowever, •iat CO\TRACTOR sia not subcontract any o tie Services without tie written consent of C TY.

Voya's comment: Voya utilizes subcontractors on an enterprise - wide basis (e.g., printing and mailing) and cannot obtain consent from each client without interrupting workflows.

6. Insurance.

6.02 Business Auto Coverage in an amount no less than $1 million combined sincle limit per accident. If CONTRACTOR or CONTRACTOR's employees will use personal autos in performance of the Services hereunder, CONTRACTOR shall provide evidence of personal auto liability coverage for each such person.

6.04 Optional Insurance Coverage. Choose and check one: Required X /Not Required ; Obtain a policy of errors and omissions insurance in a minimum amount of $2 million per occurrence claim to cover any negligent acts or omissions committed by CONTRACTOR, its employees and/or agents in the performance of any Services for CITY.

Voya's Comment: Voya noted changes to clarify how our policy is written.

7. General Conditions pertaining to Insurance Coverage

7.02. Prior to beginning the Services under this Agreement, CONTRACTOR shall furnish CITY with certificates of insurance, anc endorsements, anc upon rogues-, comp ctc copies of a po icics, including complete copies of all endorsements. All copies of po icies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

Voya's Comment: Voya does not share copies of our policies. Endorsements will be displayed on Certificates of Insurance.

7.03. All required policies shall be issued by a highly rated insurer with a minimum A.M.

Best rating of "A -:VII"). The insurer(s) shall be admitted and licensed to do business in California.

The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

7.05 A coverage ypes anc imits requirec are suSec o approve , modi ica ion anc additional requirements by CITY, as the need arises. CONTRACTOR shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect CITY's protection without CITY's prior written consent.

Voya's Comment: We purchase insurance at the enterprise level, as such, no one client can influence or limits or coverage.

PLAN I INVEST I PROTECT
1 VOA.

FINANCIAL

Page 1866 of 3058 ends

City of Beaumont

8. Indemnification.

Section 8.01:
b. Without affecting the rights of CITY under any provision of this Agreement or this Section, CONTRACTOR shall not be required to indemnify and hold harmless CITY as set forth above for liability attributable solely to the fault of CITY, provided such fault is determined by agreement between the parties, or the result of the CONTRACTOR properly followinc the written direction of an authorized representative of the CITY, or the findings of a court of competent jurisdiction. This exception will apply only in instances where CITY is shown to have been solely at fault and not in instances where CONTRACTOR is solely or partially at fault or in instances where CITY's fault accounts for only a percentage of the liability involved. In those instances, the obligation of CONTRACTOR will be all-inclusive and CITY will be indemnified for all liability incurred, even though a percentage of liability is attributable to conduct of CITY.

CONTRACTOR acknowledges that its obligation pursuant to this Section extends to liability attributable to CITY, if that liability is less than the sole fault of CITY.

CONTRACTOR has no obligation under this Agreement for liability proven in a court of competent jurisdiction or by written agreement between the parties to be the sole fault of CITY.

Voya's comment: Voya serves as a directed recordkeeper and is obligated to follow the direction of an authorized representative of the plan. This language was added to reflect that understanding.

PLAN I INVEST I PROTECT
2 VOA.

FINANCIAL

Page 1867 of 3058 ends

City of Beaumont (The City)
Addendums
Signed Acknowledgements

PLAN I INVEST I PROTECT
VOyA.

Page 1868 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
Addendum #1
RFP: RETIREMENT PLAN ADMINISTRATION 401(A) AND 457 (B)
QueJLIVIIN (X. 1-'1115 1N GI J

1. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No, a consultant was not involved with this RFP.

2. Can you share the existing investment line up with us, including fund fees and tickers?
➢ ABSZX, EMGDX, RFTTX, RFJTX, RRCTX, RFDTX, RFETX, RFFTX,

RFGTX, RFHTX, RFITX, RFKTX, RFUTX, RFVTX, BRHYX, MPHQX, 00211R824, CIVIX, LMOIX, CSRIX, 41026F209,...

3. Wi11 the City allow bidders to offer proprietary funds? ➢ Yes, but will need to also offer third -party mutual funds options

4. Wi11 the successful bidder select investments for the new plan or will the City do so? ➢ The successful bidder will consult with City on the best investment options, and mutual decisions will direct investments.

5. Can you share the current fees charged by Ascensus?
➢ The annual base fee is $6,000 to administer each plan (401A, 457, 457FICA) plus $65 per active participant over 100 + Advisor Fees - .003% of each plan asset balance.

6. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No, a consultant was not involved with this RFP.

7. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
➢ The City is confirming this information and will provide a response as soon as possible.

8. Can you please provide a breakdown of the current value of plan assets by investment option by provider or vendor offered under the plan(s). If possible, please include ticker symbols/CUSIPS.
➢ The City is confirming this information and will provide a response as soon as possible.

9. Please provide a breakdown of the number of participant accounts with a balance by active vs. inactive accounts?
➢ The City is confirming this information and will provide a response as soon as possible.

10. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? ➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1869 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

11. Can you please provide the total amount of contributions per plan for each of the past three years (2022, 2023 and 2024).
➢ The City is confirming this information and will provide a response as soon as possible.

12. Can you please provide the total amount of distributions per plan for each of the past three years (2022, 2023 and 2024)
➢ The City is confirming this information and will provide a response as soon as possible.

13. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
➢ The City is confirming this information and will provide a response as soon as possible.

14. Are managed account services currently available under the plans? If yes, please provide the following:
a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.)
b. The number of participants enrolled in service
c. The amount of assets under the service.
➢ The City is confirming this information and will provide a response as soon as possible.

15. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? ➢ The City is confirming this information and will provide a response as soon as possible.

16. How many employees are eligible to participate in the City's 457 plan? ➢ All full-time employees are eligible to participate. We currently have 216 FTE.

17. How many total participants with a balance for each plan? ➢ The City is confirming this information and will provide a response as soon as possible.

18. How many actively contributing participants for each plan? ➢ The City is confirming this information and will provide a response as soon as possible.

19. Please provide the current asset allocation for each plan. ➢ The City is confirming this information and will provide a response as soon as possible.

20. What is the current fixed/stable value rate?
➢ The City is confirming this information and will provide a response as soon as possible.

21. Please describe any penalties or restrictions to the movement of assets to a newly selected provider.
➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1870 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

22. How many days of onsite education is the City seeking annually? ➢ At least twice a year.

23. Please provide the annual distributions for each plan. ➢ The City is confirming this information and will provide a response as soon as possible.

24. Do any of the plans currently offer managed accounts? If so, please provide the amount of assets and number of participants utilizing them. ➢ The City is confirming this information and will provide a response as soon as possible.

25. Please describe any overlap in participation between plans. Provide the unique counts.
➢ The City is confirming this information and will provide a response as soon as possible.

26. How many participants are there in the 401(a) plan? How many participants in the 457(b) plan? How many participants in the 457 FICA plan? ➢ The City is confirming this information and will provide a response as soon as possible.

27. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No,a consultant is not involved in the RFP process.

28. Can you share the existing investment line up with us, including fund fees and tickers?
➢ The City is confirming this information and will provide a response as soon as possible.

29. Will the City allow bidders to offer proprietary funds? ➢ Yes, but will also need to offer 3rd party mutual fund options.

30. Will the successful bidder select investments for the new plan or will the City do so? ➢ The successful bidder will consult with the City on the best investment options, and mutual decision will direct investments.

31. Can you share the current fees charged by Ascensus? ➢ The annual base fee is $6,000.00 to administer each plan (401A, 457, 457FICA) plus $65 per active participant over 100+ Advisor fees - .003% of each plan asset balance.

32. Can you please provide the number of account balances in both plan types? Also, can you provide the total number of unique account balances between both plans? ➢ The City is confirming this information and will provide a response as soon as possible.

33. Can you please provide the current fund investment breakdown for both plans? ➢ The City is confirming this information and will provide a response as soon as possible.

34. Please identify any termination provisions applicable to any fixed/stable value assets (i.e. market value adjustment and or 12 -month and/or 5 year put.) ➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1871 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

35. Please identify and provide a current estimate of any market value adjustment, termination charge or surrender charge that may apply when terminating with the current Plan Administrator.
➢ The City is confirming this information and will provide a response as soon as possible.

36. Are loans allowed on the plans? If so, what are the number of outstanding loans? How are the loan repayments handled, ACH or payroll deduct? ➢ Yes, loans are allowed on the plans. Loan payoffs can be handled via payroll deduction but non -payroll deduction options exist.

37. Are there any Self -Directed Brokerage accounts? If so, how many accounts are there? ➢ The City is confirming this information and will provide a response as soon as possible.

38. Is there a Managed Account option in place? If so, what are the total plan assets being managed?
➢ The City is confirming this information and will provide a response as soon as possible.

39. How many days of annual on -site education does the plan require? ➢ At least twice a year.

40. What is the total amount of participants with a balance per plan? ➢ The City is confirming this information and will provide a response as soon as possible.

41. How man unique participants are there? Someone who has the 457b and the 401a is considered 1 unique participant.
➢ The City is confirming this information and will provide a response as soon as possible.

42. What is the breakdown of assets by investment option? If this cannot be provided, please provide the amount allocated to fixed/stable value/cash and the amount allocated to Target Date Funds today
➢ The City is confirming this information and will provide a response as soon as possible.

43. Are there any plan termination fees, CDSCs, or surrender charges? ➢ The City is confirming this information and will provide a response as soon as possible.

44. If the plan is using a fixed or stable value product today, are there any discontinuance provisions like an MVA or deferred payout? If there is an MVA, what is the amount/percentage?
➢ The City is confirming this information and will provide a response as soon as possible.

45. Is the fixed option in the FICA plan the same as the 457b/401 a? What is the current crediting rate?
➢ The City is confirming this information and will provide a response as soon as possible.

46. Who is your current payroll provider today or is it ran in-house with payroll software? ➢ Ran in-house with payroll software.
1/28/2025

Page 1872 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

47. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No,a consultant is not involved in the RFP process.

48. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
➢ The City is confirming this information and will provide a response as soon as possible.

49. Can you please provide a breakdown of the current value of plan assets by investment option by provider or vendor offered under the plan(s). If possible, please include ticker symbols/CUSIPS.
➢ The City is confirming this information and will provide a response as soon as possible.

50. Please provide a breakdown of the number of participant accounts with a balance by active vs. inactive accounts?
➢ The City is confirming this information and will provide a response as soon as possible.

51. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? ➢ The City is confirming this information and will provide a response as soon as possible.

52. Can you please provide the total amount of contributions per plan for each of the past three years (2022, 2023 and 2024).
➢ The City is confirming this information and will provide a response as soon as possible.

53. Can you please provide the total amount of distributions per plan for each of the past three years (2022, 2023 and 2024)
➢ The City is confirming this information and will provide a response as soon as possible.

54. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
➢ The City is confirming this information and will provide a response as soon as possible.

55. Are managed account services currently available under the plans? If yes, please provide the following:
a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.)
b. The number of participants enrolled in service
c. The amount of assets under the service.
➢ The City is confirming this information and will provide a response as soon as possible.

56. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? ➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1873 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

57. Please provide the number of active and terminated participants in each plan. ➢ The City is confirming this information and will provide a response as soon as possible.

58. What is the balance and crediting rate of the current stable value/fixed interest fund? ➢ The City is confirming this information and will provide a response as soon as possible.

59. Are there liquidity restrictions on any investments? ➢ The City is confirming this information and will provide a response as soon as possible.

60. Please provide the total assets currently invested in any target -date or target -risk funds/models.
➢ The City is confirming this information and will provide a response as soon as possible.

61. Are managed accounts offered? If so, what are the assets currently invested in managed accounts?
➢ The City is confirming this information and will provide a response as soon as possible.

62. How many on-site/virtual education days does the City currently receive? ➢ 2x a year.

63. How many on-site/virtual education days will the City request from the new provider?
➢ At least twice a year to host educational seminars for staff.

64. Did you mean to do a RFP for Administrative aspects only? Nothing in the RFP that I can see has anything to do with fiduciary advisor
➢ We are looking for an advisor that can provide - plan administration, recordkeeping, communication, education, and investment management options respective to each plan. We did not use the word fiduciary, but it's expected that the advisor will act ethically and legally to consult us with the best investment options. They can offer propriety funds (if that's what he's getting at with a fiduciary advisor) but should also offer other third -party funds.

Acknowledgement of Addendum #1 (To be included with proposal) Signature
Gavin Gruenberg
Print Name
May 1, 2025
Date
1/28/2025

Page 1874 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
Addendum #2
RFP: RETIREMENT PLAN ADMINISTRATION 401(A) AND 457(B)
QueJLIVIIN (X. 1-'1115 1N GI J

1. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No, a consultant was not involved with this RFP.

2. Can you share the existing investment line up with us, including fund fees and tickers?
➢ ABSZX, EMGDX, RFTTX, RFJTX, RRCTX, RFDTX, RFETX, RFFTX,

RFGTX, RFHTX, RFITX, RFKTX, RFUTX, RFVTX, BRHYX, MPHQX, 00211R824, CIVIX, LMOIX, CSRIX, 41026F209,...

3. Will the City allow bidders to offer proprietary funds? ➢ Yes, but will need to also offer third -party mutual funds options

4. Will the successful bidder select investments for the new plan or will the City do so? ➢ The successful bidder will consult with City on the best investment options, and mutual decisions will direct investments.

6. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No, a consultant was not involved with this RFP.

7. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
➢ 12 month put-on plan level withdrawals, but no participant level restrictions.

10. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? 71 participants in both 457b and 401a, 3 participants in only 401a. 1/28/2025

Page 1875 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

11. Can you please provide the total amount of contributions per plan for each of the past three years (2022, 2023 and 2024).
➢ 457: 2022 - $638,790, 2023 - $66,108, 2024 - $853,086 ➢ 401a: 2022 - $0, 2023 - $7,885, 2024 - $12,164
➢ FICA: 2022 - $23,061, 2023 - $22,404, 2024 - $23,864

12. Can you please provide the total amount of distributions per plan for each of the past three years (2022, 2023 and 2024)
➢ 457: 2022 - $234,062, 2023 - $187,273, 2024 - $1,078,093 401a: 2022 - $92,083, 2023 - $40,127, 2024 - $456,685
FICA: 2022 - $14,625, 2023 - $53,526, 2024 - $32,355

13. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
➢ 457: 28
➢ 401a: 14
➢ FICA:27

14. Are managed account services currently available under the plans? If yes, please provide the following:

15. ➢ Managed accounts are available on the platform, but not currently in the plans a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.
➢ Stadion Storyline(removed as QDIA effective 12/2/2024), b. The number of participants enrolled in service
)%. 0
c. The amount of assets under the service.
➢ 0

16. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? Not offered in plan, but available on platform

17. How many employees are eligible to participate in the City's 457 plan? ➢ All full-time employees are eligible to participate. We currently have 216 FTE.

18. How many total participants with a balance for each plan? ➢ The City is confirming this information and will provide a response as soon as possible.

19. How many actively contributing participants for each plan? ➢ Eligible 457 Active Participants - 116
➢ 401(A) Active Participants — 3
➢ 457 FICA Active Participants — 27

20. Please provide the current asset allocation for each plan. ➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1876 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

21. What is the current fixed/stable value rate?
Reported 7 -day yield a/o 3/31/2025: 4.23%

22. Please describe any penalties or restrictions to the movement of assets to a newly selected provider.
➢ The City is confirming this information and will provide a response as soon as possible.

23. How many days of onsite education is the City seeking annually? ➢ At least twice a year.

24. Please provide the annual distributions for each plan. ➢ 457: 2022 - $234,062, 2023 - $187,273, 2024 - $1,078,093 > 401a: 2022 - $92,083, 2023 - $40,127, 2024 - $456,685 ➢ FICA: 2022 - $14,625, 2023 - $53,526, 2024 - $32,355

25. Do any of the plans currently offer managed accounts? If so, please provide the amount of assets and number of participants utilizing them. > Managed accounts are available on the platform, but not currently in the plans.

26. Please describe any overlap in participation between plans. Provide the unique counts.
> 71 participants in both 457b and 401a, 3 participants in only 401a.

27. How many participants are there in the 401(a) plan? How many participants in the 457(b) plan? How many participants in the 457 FICA plan? > Eligible 457 Active Participants - 116 ; Terminated — 31 > 401(A) Active Participants — 3 ; Terminated — 22
> 457 FICA Active Participants — 27 ; Terminated — 122

28. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No,a consultant is not involved in the RFP process.

29. Can you share the existing investment line up with us, including fund fees and tickers?
> The City is confirming this information and will provide a response as soon as possible.

30. Will the City allow bidders to offer proprietary funds? ➢ Yes, but will also need to offer 3rd party mutual fund options.

31. Will the successful bidder select investments for the new plan or will the City do so? > The successful bidder will consult with the City on the best investment options, and mutual decision will direct investments.

32. Can you share the current fees charged by Ascensus? ➢ The annual base fee is $6,000.00 to administer each plan (401A, 457, 457FICA) plus $65 per active participant over 100+ Advisor fees - .003% of each plan asset balance.
1/28/2025

Page 1877 of 3058 ends

i =___

BEAUMONT
-C A L I F O R N I A

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

33. Can you please provide the number of account balances in both plan types? Also, can you provide the total number of unique account balances between both plans? > The City is confirming this information and will provide a response as soon as possible.

34. Can you please provide the current fund investment breakdown for both plans? ➢ The City is confirming this information and will provide a response as soon as possible.

35. Please identify any termination provisions applicable to any fixed/stable value assets (i.e. market value adjustment and or 12 -month and/or 5 year put.) ➢ The City is confirming this information and will provide a response as soon as possible.

36. Please identify and provide a current estimate of any market value adjustment, termination charge or surrender charge that may apply when terminating with the current Plan Administrator.
➢ The City is confirming this information and will provide a response as soon as possible.

37. Are loans allowed on the plans? If so, what are the number of outstanding loans? How are the loan repayments handled, ACH or payroll deduct? ➢ Yes, loans are allowed on the plans. Loan payoffs can be handled via payroll deduction but non -payroll deduction options exist.

38. Are there any Self -Directed Brokerage accounts? If so, how many accounts are there? Not offered in plan, but available on platform.

39. Is there a Managed Account option in place? If so, what are the total plan assets being managed?
Managed accounts are available on the platform, but not currently in the plans.

40. How many days of annual on -site education does the plan require? ➢ At least twice a year.

41. What is the total amount of participants with a balance per plan? ➢ Eligible 457 Active Participants - 116
> 401(A) Active Participants — 3
> 457 FICA Active Participants — 27

42. How man unique participants are there? Someone who has the 457b and the 401a is considered 1 unique participant.
71 participants in both 457b and 401a.

43. What is the breakdown of assets by investment option? If this cannot be provided, please provide the amount allocated to fixed/stable value/cash and the amount allocated to Target Date Funds today
> The City is confirming this information and will provide a response as soon as possible.

44. Are there any plan termination fees, CDSCs, or surrender charges? 1/28/2025

Page 1878 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
> The City is confirming this information and will provide a response as soon as possible.

45. If the plan is using a fixed or stable value product today, are there any discontinuance provisions like an MVA or deferred payout? If there is an MVA, what is the amount/percentage?
➢ The City is confirming this information and will provide a response as soon as possible.

46. Is the fixed option in the FICA plan the same as the 457b/401 a? What is the current crediting rate?
➢ The City is confirming this information and will provide a response as soon as possible.

47. Who is your current payroll provider today or is it ran in-house with payroll software? > Ran in-house with payroll software.

48. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No,a consultant is not involved in the RFP process.

49. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
> 12 month put-on plan level withdrawals, but no participant level restrictions.

50. Can you please provide a breakdown of the current value of plan assets by investment option by provider or vendor offered under the plan(s). If possible, please include ticker symbols/CUSIPS.
> The City is confirming this information and will provide a response as soon as possible.

51. Please provide a breakdown of the number of participant accounts with a balance by active vs. inactive accounts?
> Eligible 457 Active Participants - 116 ; Terminated — 31 ➢ (A) Active Participants — 3 ; Terminated — 22
> 457 FICA Active Participants — 27 ; Terminated — 122

52. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? ➢ 71 participants in both 457b and 401a, 3 participants in only 401a.

53. Can you please provide the total amount of contributions per plan for each of the past three years (2022, 2023 and 2024).
➢ 457: 2022 - $638,790, 2023 - $66,108, 2024 - $853,086 ➢ 401a: 2022 - $0, 2023 - $7,885, 2024 - $12,164
> FICA: 2022 - $23,061, 2023 - $22,404, 2024 - $23,864

54. Can you please provide the total amount of distributions per plan for each of the past three years (2022, 2023 and 2024)
> 457: 2022 - $234,062, 2023 - $187,273, 2024 - $1,078,093 ➢ 401a: 2022 - $92,083, 2023 - $40,127, 2024 - $456,685 > FICA: 2022 - $14,625, 2023 - $53,526, 2024 - $32,355
1/28/2025

Page 1879 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

55. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
> 457: 28
➢ 401a: 14
> FICA:27

56. Are managed account services currently available under the plans? If yes, please provide the following:
a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.)
> Stadion Storyline (removed as QDIA effective 12/2/2024), Morningstar Retirement Manager available options, but not currently active in the plan.
b. The number of participants enrolled in service
➢ 0
c. The amount of assets under the service.
➢ 0

57. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? Managed accounts are available on the platform, but not currently in the plans ➢ Not offered in plan, but available on platform.

58. Please provide the number of active and terminated participants in each plan. > Eligible 457 Active Participants - 116 ; Terminated — 31 > 401(A) Active Participants — 3 ; Terminated — 22
> 457 FICA Active Participants — 27 ; Terminated — 122

59. What is the balance and crediting rate of the current stable value/fixed interest fund? > The City is confirming this information and will provide a response as soon as possible.

60. Are there liquidity restrictions on any investments? 12 month put-on plan level withdrawals, but no participant level restrictions.

61. Please provide the total assets currently invested in any target -date or target -risk funds/models.
➢ The City is confirming this information and will provide a response as soon as possible.

62. Are managed accounts offered? If so, what are the assets currently invested in managed accounts?
Managed accounts are available on the platform, but not currently in the plans.

62. How many on-site/virtual education days does the City currently receive? ➢ 2x a year.

63. How many on-site/virtual education days will the City request from the new provider?
> At least twice a year to host educational seminars for staff. 1/28/2025

Page 1880 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

64. Did you mean to do a RFP for Administrative aspects only? Nothing in the RFP that I can see has anything to do with fiduciary advisor
> We are looking for an advisor that can provide - plan administration, recordkeeping, communication, education, and investment management options respective to each plan. We did not use the word fiduciary, but it's expected that the advisor will act ethically and legally to consult us with the best investment options. They can offer propriety funds (if that's what he's getting at with a fiduciary advisor) but should also offer other third -party funds.

Acknowledgement of Addendum #2 (To be included with proposal) -,.+.4,1. t......a.,-.7
Signature
Gavin Gruenberg
Print Name
May 1, 2025
Date
1/28/2025

Page 1881 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-
BeaumontCa.go
City of Beaumont
Addendum #3
RFP: RETIREMENT PLAN ADMINISTRATION 401 (a) AND 457(B)

PLEASE NOTE THE DUE DATE FOR THIS RFP HAS BEEN EXTENDED Please note that the RFP due date has now been extended to 5/05/25 5:00 pm. As mentioned in the RFP, the City is requesting vendors to submit 1 unbound hard copy mailed or hand delivered to the City Hall and 1 color pdf copy submitted on planetbids by May 05, 2025 at 5:00 pm.

Acknowledgement of Addendum #3 (To be included with proposal) Signature
Gavin Gruenberg
Print Name
May 1, 2025
Date

Page 1882 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
Addendum #4
RFP: RETIREMENT PLAN ADMINISTRATION 401(A) AND 457 (B)
QueJLIVIIN (X. 1-'1115 1N GI J

1. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No, a consultant was not involved with this RFP.

2. Can you share the existing investment line up with us, including fund fees and tickers?
➢ ABSZX, EMGDX, RFTTX, RFJTX, RRCTX, RFDTX, RFETX, RFFTX,

RFGTX, RFHTX, RFITX, RFKTX, RFUTX, RFVTX, BRHYX, MPHQX, 00211R824, CIVIX, LMOIX, CSRIX, 41026F209,...

3. Wi11 the City allow bidders to offer proprietary funds? ➢ Yes, but will need to also offer third -party mutual funds options

6. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No, a consultant was not involved with this RFP.

7. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
➢ 12 month put-on plan level withdrawals, but no participant level restrictions.

10. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? ➢ 71 participants in both 457b and 401a, 3 participants in only 401a. 1/28/2025

Page 1883 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

13. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
➢ 457: 28
➢ 401a: 14
➢ FICA:27

14. Are managed account services currently available under the plans? If yes, please provide the following:
➢ Managed accounts are available on the platform, but not currently in the plans

15. a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.
➢ Stadion Storyline(removed as QDIA effective 12/2/2024), b. The number of participants enrolled in service
➢ 0
c. The amount of assets under the service.
➢ 0

16. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? ➢ Not offered in plan, but available on platform

17. How many employees are eligible to participate in the City's 457 plan? ➢ All full-time employees are eligible to participate. We currently have 216 FTE.

18. How many total participants with a balance for each plan? ➢ The City is confirming this information and will provide a response as soon as possible.

19. How many actively contributing participants for each plan? ➢ Eligible 457 Active Participants - 116
➢ 401(A) Active Participants — 3
➢ 457 FICA Active Participants — 27

20. Please provide the current asset allocation for each plan. ➢ The City is confirming this information and will provide a response as soon as possible.
1/28/2025

Page 1884 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

21. What is the current fixed/stable value rate?
➢ Reported 7 -day yield a/o 3/31/2025: 4.23%

22. Please describe any penalties or restrictions to the movement of assets to a newly selected provider.
$1,500 plan termination fee, no CDSC or fund level -surrender charges.

23. How many days of onsite education is the City seeking annually? ➢ At least twice a year.

24. Please provide the annual distributions for each plan. ➢ 457: 2022 - $234,062, 2023 - $187,273, 2024 - $1,078,093 ➢ 401a: 2022 - $92,083, 2023 - $40,127, 2024 - $456,685 ➢ FICA: 2022 - $14,625, 2023 - $53,526, 2024 - $32,355

25. Do any of the plans currently offer managed accounts? If so, please provide the amount of assets and number of participants utilizing them. ➢ Managed accounts are available on the platform, but not currently in the plans.

26. Please describe any overlap in participation between plans. Provide the unique counts.
➢ 71 participants in both 457b and 401a, 3 participants in only 401a.

27. How many participants are there in the 401(a) plan? How many participants in the 457(b) plan? How many participants in the 457 FICA plan? ➢ Eligible 457 Active Participants - 116 ; Terminated — 31 ➢ 401(A) Active Participants — 3 ; Terminated — 22
➢ 457 FICA Active Participants — 27 ; Terminated — 122

28. Does the City have a consultant involved with this RFP? If so, can you share the name?
➢ No,a consultant is not involved in the RFP process.

29. Can you share the existing investment line up with us, including fund fees and tickers?
➢ The City is confirming this information and will provide a response as soon as possible.

30. Will the City allow bidders to offer proprietary funds? ➢ Yes, but will also need to offer 3rd party mutual fund options.

31. Will the successful bidder select investments for the new plan or will the City do so? ➢ The successful bidder will consult with the City on the best investment options, and mutual decision will direct investments.

Page 1885 of 3058 ends

i =___

BEAUMONT
-C A L I F O R N I A

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

34. Can you please provide the current fund investment breakdown for both plans? ➢ The City is confirming this information and will provide a response as soon as possible.

35. Please identify any termination provisions applicable to any fixed/stable value assets (i.e. market value adjustment and or 12 -month and/or 5 year put.) ➢ None. $1,500 plan termination fee, no CDSC or fund level -surrender charges.

36. Please identify and provide a current estimate of any market value adjustment, termination charge or surrender charge that may apply when terminating with the current Plan Administrator.
$1,500 plan termination fee, no CDSC or fund level -surrender charges.

37. Are loans allowed on the plans? If so, what are the number of outstanding loans? How are the loan repayments handled, ACH or payroll deduct? > Yes, loans are allowed on the plans. Loan payoffs can be handled via payroll deduction but non -payroll deduction options exist.

38. Are there any Self -Directed Brokerage accounts? If so, how many accounts are there? ➢ Not offered in plan, but available on platform.

39. Is there a Managed Account option in place? If so, what are the total plan assets being managed?
➢ Managed accounts are available on the platform, but not currently in the plans.

40. How many days of annual on -site education does the plan require? ➢ At least twice a year.

41. What is the total amount of participants with a balance per plan? > Eligible 457 Active Participants - 116
> 401(A) Active Participants — 3
> 457 FICA Active Participants — 27

42. How man unique participants are there? Someone who has the 457b and the 401a is considered 1 unique participant.
➢ 71 participants in both 457b and 401a.

43. What is the breakdown of assets by investment option? If this cannot be provided, please provide the amount allocated to fixed/stable value/cash and the amount allocated to Target Date Funds today
➢ $2,092,878 in target date fund series, $625,647 in target risk/balance fund

44. Are there any plan termination fees, CDSCs, or surrender charges? ➢ $1,500 plan termination fee, no CDSC or fund level -surrender charges. s
1/28/2025

Page 1886 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont

45. If the plan is using a fixed or stable value product today, are there any discontinuance provisions like an MVA or deferred payout? If there is an MVA, what is the amount/percentage?
➢ N/A

46. Is the fixed option in the FICA plan the same as the 457b/401a? What is the current crediting rate?
> Investment options are the same across all three plans

47. Who is your current payroll provider today or is it ran in-house with payroll software? > Ran in-house with payroll software.

48. Is the City currently working with a consultant or advisor and if so, are they assisting you in the evaluation of this RFP?
➢ No,a consultant is not involved in the RFP process.

49. Are there any liquidity restrictions on the assets in the stable value/fixed account? If so, please describe.
➢ 12 month put-on plan level withdrawals, but no participant level restrictions.

50. Can you please provide a breakdown of the current value of plan assets by investment option by provider or vendor offered under the plan(s). If possible, please include ticker symbols/CUSIPS.
➢ The City is confirming this information and will provide a response as soon as possible.

52. Is there employee overlap among the 457(b) & 401(a) plans? If so, please provide the number of unique participants are across the tax codes? > 71 participants in both 457b and 401a, 3 participants in only 401a.

53. Can you please provide the total amount of contributions per plan for each of the past three years (2022, 2023 and 2024).
> 457: 2022 - $638,790, 2023 - $66,108, 2024 - $853,086 ➢ 401a: 2022 - $0, 2023 - $7,885, 2024 - $12,164
> FICA: 2022 - $23,061, 2023 - $22,404, 2024 - $23,864

55. Can you please provide the total number of withdrawals and distributions, excluding loans, processed in the previous year (2024) per plan?
> 457: 28
> 401a: 14
1/28/2025

Page 1887 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
➢ FICA:27

56. Are managed account services currently available under the plans? If yes, please provide the following:
➢ Managed accounts are available on the platform, but not currently in the plans a. The identity of the current advice provider (e.g., Financial Engines, Morningstar, etc.)
➢ Stadion Storyline (removed as QDIA effective 12/2/2024), Morningstar Retirement Manager available options, but not currently active in the plan.
b. The number of participants enrolled in service
➢ 0
c. The amount of assets under the service.
➢ 0

57. Are self directed brokerage accounts (also known as self managed accounts) currently available under the plan(s)? If yes, what percent of the assets are in it? ➢ Not offered in plan, but available on platform.

58. Please provide the number of active and terminated participants in each plan. ➢ Eligible 457 Active Participants - 116 ; Terminated — 31 ➢ 401(A) Active Participants — 3 ; Terminated — 22
➢ 457 FICA Active Participants — 27 ; Terminated — 122

59. What is the balance and crediting rate of the current stable value/fixed interest fund? ➢ $445,303.82 and 4.23% as of 03/31/25

60. Are there liquidity restrictions on any investments? ➢ 12 month put-on plan level withdrawals, but no participant level restrictions.

61. Please provide the total assets currently invested in any target -date or target -risk funds/models.
➢ $2,092,878 in target fund series, $625,647 in target risk/balance funds.

62. Are managed accounts offered? If so, what are the assets currently invested in managed accounts?
➢ Managed accounts are available on the platform, but not currently in the plans.

62. How many on-site/virtual education days does the City currently receive? ➢ 2x a year.

63. How many on-site/virtual education days will the City request from the new provider?
➢ At least twice a year to host educational seminars for staff.

Page 1888 of 3058 ends

BEAUMONT
-CALIFORNIA-

BEAUMONT
550 E. 6th Street
Phone (951) 572-3236
BeaumontCa.gov
City of Beaumont
expected that the advisor will act ethically and legally to consult us with the best investment options. They can offer propriety funds (if that's what he's getting at with a fiduciary advisor) but should also offer other third -party funds.

Acknowledgement of Addendum #4 (To be included with proposal) Signature
Gavin Gruenberg
Print Name
May 1, 2025
Date
1/28/2025

Page 1889 of 3058 ends

Program Highlights
and Fee Summary
Thank you for your interest in Voya Financial® as the
provider for your retirement plan.

With a vision to be America's Retirement Company®, we don't just innovate. We innovate with a purpose. We are redefining what it means to be a leading financial services company and work to make a secure financial future possible — one person, one family and one institution at a time.

PLAN I INVEST I PROTECT

Page 1890 of 3058 ends

VOA

FINANCIAL

Program Highlights and Fee Summary
RetireFlex-MF with Voya Fixed Account B
Tailor Designed for City of Beaumont
Thank you for your interest in Voya Financial® as the provider for your retirement plan. For more than 50 years, we've helped millions of people prepare for their financial futures through employer -sponsored retirement plans and understand the importance of providing meaningful solutions that drive increased plan health and retirement readiness for your employees. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya's vision is to be America's Retirement Company®.

We are pleased to present you with the following proposal, which will remain in effect until July 27, 2025.

Plan
Assumptions*
Assumed number of
participant accounts
Assumed first -year
contribution amount
Assumed transferred
asset amount
Voya Fixed Account
allocation
Voya assumes use of one of our standard electronic methods of transmitting deposits and allocation instructions. We also assume all existing plan variable assets will transfer to Voya simultaneously on date of conversion from your current provider.

Voya's pricing assumes an ongoing fee of 0.05% for 3(38) services Voya's proposal does not include reimbursement of any surrender charge, market value adjustment or deferred sales charge that may be assessed on assets being transferred.
* Our fee quote is based upon certain assumptions about your plan shown above. If the actual transferred asset amount and/or number of participating employees varies 10% or greater from the assumptions above, we reserve the right to adjust the recordkeeping fees and/or Fixed Account credited rate in accordance with our administrative practice within 180 calendar days following the date of the initial transferred asset contribution.

Your Service Team
ILIEEML.. Phon ,EL
Justin Camisa Vice President, Voya Financial
Government Sales Director
(303)717-5922 [email protected]
20240913-3831511-12415353

Page 1891 of 3058 ends

Recordkeeping Fees' & Fund Revenue Requirement
ype
Annual Asset -Based Service Fee (assessed on all assets with the exception of the self -directed brokerage accounts)
Pricing assuming 3 Billing Groups
Scenario 1:

Open Architecture Platform with the Voya Fixed Account B as the stability of principal option is:

Scenario 2:

Open Architecture Platform with the Voya Fixed Account B as the stability of principal option & MyCompass Funds as the Target Date Fund option:
*Pricing assumes the assets in the current fixed/stable value funds will map to Voya's Fixed B Account.
**Pricing assumes the assets in the current fixed/stable value funds will map to Voya's Fixed B Account and the assets in the current target date funds will map to MyCompass Blend Target Date Funds.

Annual Participant Service Fee
Fund revenue requirement
Amount

0.40%*

0.33%**
$0.00

0.00%
The charges identified above compensate Voya, in part, for the services we provide under your contract. They are also used to compensate your representative for ongoing services. Charges are based upon the plan assumptions indicated, in addition to the fund menu selected and the compensation paid to any third party as directed by you.

If applicable, this proposal is subject to a fund revenue requirement as state above. We shall apply to this requirement the revenue that we receive from mutual fund companies for services rendered on behalf of the plan. Such revenue shall include 12b-1 revenue, sub -transfer agency fees, and any administrative services fees paid to us by the mutual fund companies. If we receive less than the required revenue annually, the plan will be billed the difference between actual and required revenue.

This fee is subject to annual review and may be adjusted based on your case characteristics and optional plan services.

Fund Management Fees:

Fund management fees and other fund operating expenses will apply. These fees depend upon the investment option chosen. Please refer to the Individual Fund prospectuses or Fund Fact Sheets for fund fee information. A portion of that fee may be paid to Voya as a form of revenue sharing. Please see the RetireFlex-MF information booklet for additional information.
1 Voya reserves the right to increase recordkeeping charge(s) if the actual characteristics vary materially from the original plan assumptions reflected herein. We also reserve the right to deduct the charge(s) from participant accounts. 20240913-3831511-12415353

Page 1892 of 3058 ends

Compensation Paid
pe
Amount
Percent of first -year contributions
Percent of renewal year contributions
Percent of transferred assets
Asset -based compensation

0.00%

0.00%
This compensation structure is reflected in the Recordkeeping Fees shown herein.

Compensation for the first year is paid on transferred assets plus first -year contributions and will be based on the above.

If applicable, asset -based compensation is paid monthly. The amount paid is calculated by taking the applicable annual rate divided by 12, multiplied by the contract's value at the close of business on the last business day of the month. 20240913-3831511-12415353

Page 1893 of 3058 ends

Investment Options
Your investment options include a fixed interest investment option, plus a selection of a broad menu of mutual funds from well-known fund managers.

You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and an information booklet containing this and other information can be obtained by contacting your local representative.

Please read the information carefully before investing.

Fixed Interest Investment Option
Declared interest Rate*: 3.35%
Guaranteed Minimum Interest Rate: 1.00%
You may have selected a fixed account option under the Program. A fixed account is an investment option offered through the Program that is subject to guaranteed minimum interest rates. Voya's claims -paying ability should be taken into consideration in evaluating interest rate guarantees provided under the Contract. These rate guarantees do not apply to the investment return or principal value of the fund investment options.

The fixed account option provides stability of principal and credits interest on all amounts allocated to this option.

The fixed account option consists of a Guaranteed Minimum Interest Rate (the "GMIR") that is set for the life of the Contract. The GMIR is stated in the Contract. Each calendar year (1/1 to 12/31), Voya will also set a one-year minimum guaranteed floor rate which will apply to all amounts held in the fixed account option during that calendar year.

During the year, Voya will credit interest to the fixed account option at a "current credited interest rate". The current credited interest rate may change but is guaranteed not to be below either the minimum guaranteed floor rate or the GMIR. Voya will not apply a decrease in the rate following a rate change initiated solely by us prior to the last day of the three-month period measured from the first day of the month in which such change was effective. The rate for your plan's initial investment in the fixed account may be in effect for less than a full three- month period.

The GMIR applicable to the Contract and the current credited interest rate (which we may change at any time, subject to certain restrictions) will be provided to plan participants at enrollment.

All interest rates applicable to the fixed account option are expressed as an annual effective yield. Interest is credited on a daily basis. Once credited, the interest becomes a part of the principal. This means that participant accounts earn compound interest. Taking the effect of compounding into consideration, the interest credited each day yields the current credited interest rate. Any changes in the current interest rate will apply to all amounts in the fixed account option.

You have elected the Put provision for the fixed account option. You will receive an endorsement to your contract detailing the option selected.

Voya Fixed Account B
The current credited rate will be based on both the New Money Rate and the Portfolio Rate and will transition over time to be fully based on Portfolio Rates. The New Money Rate is the interest rate established by Voya from time to time and is based on expected yields on newly acquired investments. A Portfolio Rate is an interest rate established by Voya from time to time and is based on expected yields on all investments backing Fixed Account B. When determining credited rates, the Company will take into account, among other things, the risks and costs assumed by Voya under the Contract and anticipated cash flows.

There may be restrictions on surrenders and transfers associated with the Fixed Account B and in certain states and for certain types of plans a Market Value Adjustment ("MVA") may apply on surrenders under the Contract. *Based on the previously stated assumptions for your plan, this is the declared interest rate for your contract as of the date in which this proposal was created. This rate includes the effect of any additional services and features selected by the plan 20240913-3831511-12415353

Page 1894 of 3058 ends

sponsor, including but not limited to the amount of compensation paid to your sales representative. This rate is subject to change at any time, subject to certain restrictions.

Important Information
Mutual funds under a custodial agreement are intended as long-term investments designed for retirement purposes. Money distributed will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is a long-term insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims -paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Early withdrawals taken from the 401(a)/401(k) plan prior to age 59 will be subject to the IRS 10% premature distribution penalty tax, unless an IRS exception applies. Amounts distributed will be taxed as ordinary income in the year it is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax -deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. 20240913-3831511-12415353

Page 1895 of 3058 ends

Standard and Optional Recordkeeping Services
Certain services require Plan Sponsor information support Online enrollments
Customer Service Representatives to handle
participant toll -free phone inquiries
Financial education and counseling for terminated or
retiring employees by licensed Transition Counselors
Daily valuation of participant accounts
Internet and toll -free telephone service for account
inquiries, allocation changes, and fund transfers
Quarterly plan activity reports via the Sponsor Website Quarterly delivery of participant statements of activity Regularly scheduled and adhoc contribution / loan
repayment processing — electronic format required
Vesting calculations based on hours worked in plan
year or elapsed time from date of hire
Calculation, processing and disbursement of final
distribution payments
Plan Document services include Volume Submitter for
401 Plans and Specimen Document for 457 Plans
Excess Revenue Budget
Sponsor Website for plan & participant level access
Daily reconciliation of plan and participant activity
Notification to Plan Sponsor and calculation of
minimum distribution amount for participants subject to minimum distribution requirements
Voya authorized loans, withdrawals and distributions*
(optional service)
Eligibility tracking* (optional service)
Reallocation of forfeitures
Online initiation of loan, withdrawal and other
distribution requests*
Comprehensive compliance testing services available
including contribution limit monitoring and/or reporting (certain exclusions apply)
Preparation of standard audit package upon request
Regulatory updates for Voya plan documents
Other Optional Services (conditions may apply):
o Online Beneficiary Maintenance
o Paperless general purpose loans and distributions
o Hardship suspension reinstatement
o Contribution Rate Change
o Contribution Rate Escalator
° Automatic Enrollment
° Automatic Contribution increase (for plans that include automatic enrollment) *For Plans that meet underwriting requirements
20240913-3831511-12415353

Page 1896 of 3058 ends

Additional Services / Recordkeeping Fees (fees subject to change)
Loan initiation fee
Loan maintenance fee
Participant -initiated wire, overnight mail or stop payment Consulting services, audit support and special assistance You will be notified at the time of your request if an additional charge is applicable Self -Directed Brokerage Account*
With access to a broader range of investment options.

Trustee Services from Voya Institutional Trust Company
Direct, non -discretionary trustee services and Certified Annual Statement; $750 annually (fee is included in Recordkeeping Fees shown above).

Managed Accounts
Asset Allocation Made Easier
Supports the efforts of sponsors to improve the asset allocation of plan participants and simplify the investment selection process by creating custom model portfolios.
$100
one-time charge per loan
$25
annually per loan
$50
per occurrence
$200
per hour
$50
annually per participant
enrolled in service
$0.00
Refer to the Plan Sponsor
Investment Advisory Services
Agreements
$0.00
Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency Any insurance products, annuities and funding agreements that you may have purchased are sold as securities and are issued by Voya Retirement Insurance and Annuity Company ("VRIAC"). VRIAC is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC ("VIPS"). Neither VRIAC nor VIPS engage in the sale or solicitation of securities. If custodial or trust agreements are part of this arrangement, they may be provided by Voya Institutional Trust Company. All companies are members of the Voya ® family of companies. Securities distributed by Voya Financial Partners, LLC (member SIPC) or other broker -dealers with which it has a selling agreement. All products or services may not be available in all states.
* Schwab Personal Choice Retirement Account® (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers. Charles Schwab & Co., Inc. and Voya Financial are not affiliated and are not responsible for the products and services provided by the other. 77341 3044917.C.S© 2017 Voya Services Company. All rights reserved. CN 3831511_0926 Voya.com

PLAN I INVEST I PROTECT
tir in °
VOA

FINANCIAL

Page 1897 of 3058 ends

20240913-3831511-12415353

AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR is made and effective upon signature, by and between the CITY OF BEAUMONT ("CITY") whose address is 550 E. 6th Street, Beaumont, California 92223 and VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY whose address is 5780 Powers Ferry Rd, NW Atlanta, GA 30327 ("CONTRACTOR").

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. CITY desires to engage CONTRACTOR to provide deferred compensation retirement plan administration, recordkeeping, communication, education, investment management services, and 3 (38) fiduciary services for the City's 401(a) 457(b) and 457 FICA Plan; and
B. CONTRACTOR has made a proposal ("Proposal") to the CITY to provide such professional services, which Proposal is attached hereto as Exhibit "A"; and incorporated herein by this reference, and
C. CONTRACTOR agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to CITY that CONTRACTOR possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement, this Agreement shall be for the period of 3 initial years, with possible (2) one year — extensions with the approval of the City Council of the City and contingent on service provider review, which may be exercised at the discretion of City of Beaumont.

2. Services to be Performed. CONTRACTOR agrees to provide the services ("Services") as follows: Retirement Plan Administration 401(a) and 457 (b), and 457 FICA Plan and 3 (38) Fiduciary Services.Services shall be performed in the manner and according to the timeframe set forth in the Proposal.

3. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services; provided, however, that CONTRACTOR shall not subcontract any of the Services without the written consent of CITY

Page 18918 of 3058 ends

4. Compensation.

4.01 CONTRACOTR shall be paid at the rates set forth in the Costs Proposal and shall not increase at any rate without the prior written consent of the CITY.

Notwithstanding anything in this agreement to the contrary, total fees and charges paid by CITY to CONTRACTOR under this Agreement shall not exceed $44, 511 which is to be paid directly out of plan participant accounts.

4.02 CONTRACTOR shall not be compensated for any Services rendered nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the CITY, in writing.

4.03 CONTRACTOR, if applicable, shall submit to CITY, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The CITY shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. CITY shall have the right to review and audit all invoices prior to or after payment to CONTRACTOR. This review and audit may include, but not be limited to CITY' s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If CITY determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, CITY shall either return the bill to CONTRACTOR with a request for explanation or adjust the payment accordingly, and give notice to CONTRACTOR of the adjustment.

4.04 If the work is satisfactorily completed, CITY shall pay such invoice within thirty (30) days of its receipt. Should CITY dispute any portion of any invoice, CITY shall pay the undisputed portion within the time stated above, and at the same time advise CONTRACTOR in writing of the disputed portion.

5. Obligations of CONTRACTOR.

5.01 CONTRACTOR agrees to perform all Services in accordance with the terms and conditions of this Agreement and the Proposal. In the event that the terms of the Proposal shall conflict with the terms of this Agreement, or contain additional terms other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

5.02 Except as otherwise agreed by the parties, CONTRACTOR will supply all personnel, materials and equipment required to perform the Services. CONTRACTOR shall provide its own offices, telephones, vehicles and computers and set its own work

Page 189 ends

hours. CONTRACTOR will determine the method, details, and means of performing the Services under this Agreement.

5.03 CONTRACTOR shall keep CITY informed as to the progress of the Services by means of regular and frequent consultations. Additionally, when requested by CITY, CONTRACTOR shall prepare written status reports.

5.04 CONTRACTOR is responsible for paying, when due, all income taxes and other taxes, fees and withholding, including withholding state and federal taxes, social security, unemployment and worker's compensation, incurred as a result of the compensation paid under this Agreement. CONTRACTOR agrees to indemnify, defend and hold harmless CITY for any claims, costs, losses, fees, penalties, interest, or damages suffered by CITY resulting from CONTRACTOR's failure to comply with this provision.

5.05 In the event CONTRACTOR is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.

5.06 CONTRACTOR represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein. In the event CITY is required to obtain an approval or permit from another governmental entity, CONTRACTOR shall provide all necessary supporting documents to be filed with such entity.

5.07 CONTRACTOR shall be solely responsible for obtaining Employment Eligibility Verification information from CONTRACTOR's employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that CONTRACTOR's employees are eligible to work in the United States.

5.08 In the event that CONTRACTOR employs, contracts with, or otherwise utilizes any CalPers retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the CITY and shall be subject to the CITY's advance written approval.

5.09 Drug -free Workplace Certification. By signing this Agreement, the CONTRACTOR hereby certifies under penalty of perjury under the laws of the State of California that the CONTRACTOR will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug - free workplace.

5.10 CONTRACTOR shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder.

Page 1900 of 3058 ends

6. Insurance. CONTRACTOR hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal -OSHA.

Therefore, throughout the duration of this Agreement, CONTRACTOR hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit "B" are copies of Certificates of Insurance and endorsements as required by Section 7.02. If existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.

CONTRACTOR shall provide the following types and amounts of insurance:

6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; CONTRACTOR agrees to have its insurer endorse the general liability coverage required herein to include as additional insured's CITY, its officials, employees and agents. CONTRACTOR also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

6.02 Business Auto Coverage in an amount no less than $1 million per accident.

If CONTRACTOR or CONTRACTOR's employees will use personal autos in performance of the Services hereunder, CONTRACTOR shall provide evidence of personal auto liability coverage for each such person.

6.03 Workers' Compensation coverage for any of CONTRACTOR's employees that will be providing any Services hereunder. CONTRACTOR will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any workers' compensation will not limit the obligations of CONTRACTOR under this Agreement. CONTRACTOR expressly agrees not to use any statutory immunity defenses under such laws with respect to CITY, its employees, officials and agents.

6.04 Optional Insurance Coverage. Required X /Not Required ; Obtain a policy of errors and omissions insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by CONTRACTOR, its employees and/or agents in the performance of any Services for CITY.

7. General Conditions pertaining to Insurance Coverage

7.01 No liability insurance coverage provided shall prohibit CONTRACTOR from waiving the right of subrogation prior to a loss. CONTRACTOR waives all rights of subrogation against CITY regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do likewise.

7.02. Prior to beginning the Services under this Agreement, CONTRACTOR shall furnish CITY with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf

7.03. All required policies shall be issued by a highly rated insurer with a minimum

Page 19041 of 3058 ends

A.M. Best rating of "A:VII"). The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

7.04 Self-insurance does not comply with these insurance specifications.

CONTRACTOR acknowledges and agrees that that all insurance coverage required to be provided by CONTRACTOR or any subcontractor, shall apply first and on a primary, non- contributing basis in relation to any other insurance, indemnity or self-insurance available to CITY.

7.05 All coverage types and limits required are subject to approval, modification and additional requirements by CITY, as the need arises. CONTRACTOR shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect CITY's protection without CITY's prior written consent.

7.06 CONTRACTOR agrees to provide immediate notice to CITY of any claim or loss against CONTRACTOR or arising out of the Services performed under this Agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.

8. Indemnification.

8.01 CONTRACTOR and CITY agree that CITY, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by CONTRACTOR or any subcontractor or agent of either as set forth herein.

Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to CITY.

CONTRACTOR acknowledges that CITY would not enter into this Agreement in the absence of the commitment of CONTRACTOR to indemnify and protect CITY as set forth herein.
a. To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify and hold harmless CITY, its employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by CITY, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.

CONTRACTOR's obligation to defend, indemnify and hold harmless shall include any and all claims, suits and proceedings in which CONTRACTOR (and/or CONTRACTOR's agents and/or employees) is alleged to be an employee of CITY.

Page 19052 of 3058 ends

All obligations under this provision are to be paid by CONTRACTOR as they are incurred by CITY.
b. Without affecting the rights of CITY under any provision of this Agreement or this Section, CONTRACTOR shall not be required to indemnify and hold harmless CITY as set forth above for liability attributable solely to the fault of CITY, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where CITY is shown to have been solely at fault and not in instances where CONTRACTOR is solely or partially at fault or in instances where CITY's fault accounts for only a percentage of the liability involved. In those instances, the obligation of CONTRACTOR will be all-inclusive and CITY will be indemnified for all liability incurred, even though a percentage of liability is attributable to conduct of CITY. CONTRACTOR acknowledges that its obligation pursuant to this Section extends to liability attributable to CITY, if that liability is less than the sole fault of CITY. CONTRACTOR has no obligation under this Agreement for liability proven in a court of competent jurisdiction or by written agreement between the parties to be the sole fault of CITY.

9. Additional Services, Changes and Deletions.

9.01 In the event CONTRACTOR performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of CITY, CONTRACTOR shall not be compensated for such services.

CONTRACTOR expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the CITY in writing.

9.02 CONTRACTOR shall promptly advise the City Manager and Finance Director of CITY as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of Services. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the CITY and/or City Council.

10. Termination of Agreement.

10.01 Notwithstanding any other provision of this Agreement, CITY, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days' written notice to CONTRACTOR.

10.02 In the event of termination, the payment of monies due CONTRACTOR for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement.

Immediately upon termination, CONTRACTOR agrees to promptly provide and deliver to CITY all original documents, reports, studies, plans, specifications and the like which are in the possession or control of CONTRACTOR and pertain to CITY.

Page 19 ends

11. Status of CONTRACTOR.

11.01 CONTRACTOR shall perform the Services in CONTRACTOR's own way as an independent contractor, and in pursuit of CONTRACTOR'S independent calling, and not as an employee of CITY. However, CONTRACTOR shall regularly confer with CITY's City Manager as provided for in this Agreement.

11.02 CONTRACTOR agrees that it is not entitled to the rights and benefits afforded to CITY's employees, including disability or unemployment insurance, workers' compensation, retirement, CalPers, medical insurance, sick leave, or any other employment benefit. CONTRACTOR is responsible for providing, at its own expense, disability, unemployment, workers' compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.

11.03 CONTRACTOR hereby specifically represents and warrants to CITY that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of CITY and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services. Further, CONTRACTOR represents and warrants that the individual signing this Agreement on behalf of CONTRACTOR has the full authority to bind CONTRACTOR to this Agreement.

12. Ownership of Documents; Audit.

12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties and all other documents of any kind or nature prepared, developed or obtained by CONTRACTOR in connection with the performance of Services performed for the CITY shall become the sole property of CITY, and CONTRACTOR shall promptly deliver all such materials to CITY upon request. At the CITY's sole discretion, CONTRACTOR may be permitted to retain original documents, and furnish reproductions to CITY upon request, at no cost to CITY.

12.02 Subject to applicable federal and state laws, rules and regulations, CITY shall hold all intellectual property rights to any materials developed pursuant to this Agreement. CONTRACTOR shall not such use data or documents for purposes other than the performance of this Agreement, nor shall CONTRACTOR release, reproduce, distribute, publish, adapt for future use or any other purposes, or otherwise use, any data or other materials first produced in the performance of this Agreement, nor authorize others to do so, without the prior written consent of CITY.

12.03 CONTRACTOR shall retain and maintain, for a period not less than four years following termination of this Agreement, all time records, accounting records and vouchers and all other records with respect to all matters concerning Services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as CITY may deem necessary, CONTRACTOR shall make available to CITY' s agents for examination all of such records and shall permit CITY' s agents to audit, examine and reproduce such records.

Page 19 ends

13. Miscellaneous Provisions.

13.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by CONTRACTOR for CITY and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties.

13.02 CONTRACTOR shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of CITY. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.

13.03 CONTRACTOR shall timely file FPPC Form 700 Conflict of Interest Statements with CITY if required by California law and/or the CITY's conflict of interest policy.

13.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.

13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California.

13.06 CONTRACTOR covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder.

CONTRACTOR further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

13.07 CONTRACTOR has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. CONTRACTOR agrees that they are unaware of any financial or economic interest of any public officer or employee of the CITY relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the CITY may immediately terminate this Agreement by giving notice thereof. CONTRACTOR shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

13.08 Improper Consideration. CONTRACTOR shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any

Page 19055 of 3058 ends

officer, employee or agent of the CITY in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by CITY. The CITY, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the CITY with respect to the proposal and award process of this Agreement or any CITY contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any CITY contract has been awarded. CONTRACTOR shall immediately report any attempt by any CITY officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from CONTRACTOR.

13.09 Severability. If any portion of this Agreement is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above -written.

CITY: CONTRACTOR:

CITY OF BEAUMONT
By: By:

Mayor
Print Name:

Title:

Page 196 ends

EXHIBIT "A"

PROPOSAL
(insert behind this page)

Page 1907 of 3058 ends

EXHIBIT "B"

CERTIFICATES OF INSURANCE AND ENDORSEMENTS A
(insert behind this page)

Page 1908 of 3058 ends

BEAUMONT
CA _- O https://www.beaumontca.gov/29/City-Council
Proposers are responsible for accessing this link to review the names prior to answering the following questions.

1. Have you or your company, or any agent/board member on behalf of you or your company/entity, made any political contributions of more than $500 to any Beaumont City Council Member in the 12 months preceding the date of the submission of your proposal or application, or the anticipated date of any Council action? YES If yes, please identify the Council Member(s):

X NO

2. Do you or your company/entity, or any agency on behalf of you or your company/entity, anticipate or plan to make any political contribution of more than $500 to any Beaumont City Council Member in the 12 months following any Council action related to your proposal or application?
YES If yes, please identify the Council Member(s):

X NO
Answering yes to either of the two questions above does not preclude the Beaumont City Council from awarding a contract or approving an application or any subsequent action. It does however, preclude the identified Council Member(s) from participating in any actions related to your proposal or application.
8/12/2025
Date
nature of authorized
Voya Financial
Company/Applicant Name
City of Beaumont 1550 E. 6th Street, Beaumont, CA 92223 I (951) 769-8520 I BeaumontCA.gov

Page 1909 of 3058 ends

indi
vidual

BEAUMONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Kari Mendoza, Administrative Services Director
Eric Guzman, Human Resources Risk Analyst
DATE August 19, 2025
SUBJECT: Award a Professional Services Agreement to Sedgwick for Workers' Compensation Third Party Administrator Services
Description Renew Contract with Sedgwick for Workers' Compensation Third Party Administrator Services.

Background and Analysis:

The City operates a self -insured workers' compensation insurance program and requires the services of a third -party claims administrator to handle the day-to-day operations of the workers' compensation claims against the City. The goal of the workers' compensation program is to ensure prompt, fair, and cost-effective resolution of employee injury claims in compliance with the California Labor Code and regulations from the California Department of Industrial Relations.

The scope of services for the workers' compensation program includes setting up claims, investigating injuries, providing medical treatment, benefit coordination, monitoring and paying medical bills, managing disability status, litigation oversight, claims handling from inception to resolution, and regulatory state and Cal/OSHA reporting.

On August 4, 2015, the City engaged Sedgwick (formerly known as York Risk Services Group) to administer the workers' compensation program. The term with Sedgwick continues in effect until terminated by the cancellation provisions in the contract.

The City's current agreement with Sedgwick is due for reconsideration. As such, to ensure continued high -quality service and compliance with evolving regulations, staff initiated a Request for Proposals (RFP) process to solicit qualified firms to provide Third Party Administrator Services for a five-year term.

On May 15, 2025, the City published RFP #HR -25-021 online utilizing the City's website as well as the internet site called Planet Bids. By June 25th, 2025, staff received three

Page 1910 of 3058 ends

(3) bid proposals, including a proposal from our current provider. The Human Resources/Risk Management Department individually evaluated the proposals. The three proposals are summarized as follows:

1. AdminSure
Proposal Score: Average 97 out of 100
Bid: Year 1 — Flat Annual Fee - $64,800, Year 2: $66,744 Year 3: $70,748, Year 4 : $72,871, Year 5: $75,057.22

2. Innovative Claims Solutions (ICS)
Proposal Score: Average 91 out of 100
Bid: Year 1 — Flat Annual Fee - $68,600, Year 2: $71,250 Year 3: $74,000, Year 4: $76,900, Year 5: $79,900

3. Sedgwick Claims Management Services, Inc.

Proposal Score: Average 98 out of 100
Bid: Year 1 — Flat Annual Fee - Year 1 $44,195, Year 2: $45,300 Year 3: $46,433, Year 4: $47,594, Year 5: $48,784
Due to the evaluation scores, pricing difference, and assessment of a fully bundled third -party administrator, staff recommends approval of a contract renewal for a five- year term with Sedgwick Claims Management Services, Inc.

Fiscal Impact:

Funding for Third Party Administrator Services is included in the approved FY25/26 HR/Risk budget under 100-1240-7068-0000. There is no additional fiscal impact at this time. Total costs for the five-year agreement is $232,306.

The estimated cost to prepare this report is $150.

Recommended Action:

Authorize the City Manager to sign the Professional Services Agreement with Sedgwick Claims Management Services, Inc., for a renewed 5 —year term and two one-year renewals, subject to City Council approval.

Attachments:

A. Sedgwick Proposal
B. Cost Proposal

Page 1911 of 3058 ends

C. Professional Services Contract — Service Agreement for Administration of Claims Program

Page 1912 of 3058 ends

sedgwick
Prepared by Sedgwick I June 2025
Response to RFP for Workers
Compensation Third Party
Administrator Services
for the City of Beaumont
p Helping you navigate
the unexpected

5. Services/Scope of Work
The selected TPA shall provide the City with sufficiently qualified personnel to efficiently and effectively meet the responsibilities as defined below and any other duties incidental or in addition to those responsibilities as it relates to claims management services.

I. Services Required — Claims Personnel
The senior claims adjustors shall be state certified (SIP certification) and have a minimum of five years' experience in adjusting workers' compensation claims for public entities. The TPA shall also provide a supervisor who shall oversee the servicing of CITY's claims. The supervisor shall be state -certified and have at least 8 years' experience in adjusting public entity workers' compensation claims. The claims assistant shall have a minimum of 2 years of claims experience.

Paula Gentry, claims examiner, and Juan Tapia, claims team lead, both have more than 20 years of industry experience. We have provided their bios in the appendix. They possess all required licenses and knowledge of labor codes, salary continuation and rules/regulation pertaining to public entities. They have excellent communication and negotiation skills, and they provide exceptional service to the City's account. Sedgwick agrees to continue allowing the City the right to approve individuals assigned to the program.

The senior claims adjustor shall possess the following: A. Time management and organization skills sufficient to prioritize tasks. B. Knowledge of the Labor Code, 4850 benefits, presumptive injuries/illnesses, salary continuation, and rules/regulations pertaining to public entities. C. Exceptional written and verbal communication skills and negotiation skills. D. Ability to develop relationships with specialty medical providers and ancillary service vendors. The TPA shall provide adequate personnel for the claims unit as needed to cover vacation, illness, separation of employment, etc. No examiner(s) or supervisor outside the claims team shall service CITY's account without prior approval by CITY.

The City retains the right and opportunity to interview, approve, and/or reject all proposed individuals to be assigned to the City's account.

Sedgwick agrees to comply with these requirements.

II. Services Required - General Program Administration
TPA shall be licensed by the State Office of Self Insurance Plans and shall provide staff, professional, and clerical services, as required to administer a self -insured program in compliance with all rules and regulations governing the administration of self-insurance pursuant to State of California rules and regulations. The TPA shall ensure each claims examiner handling CITY's claims will receive continuing education training each year.

The TPA shall annually certify the training received by each claims examiner in writing each June 1st.

TPA shall conduct training in workers' compensation laws, claims reporting and procedures, claims systems procedures, and orientation meetings for CITY's Human Resources/Risk Management department staff as requested. TPA shall provide CITY with information on changes or proposed changes in rules and legislation affecting CITY's self -insured program.

TPA shall be responsible for all costs and penalties incurred as a result of its errors or delays in the administration of the claims. This includes, but is not limited to, its failure to determine compensability or to pay claims timely, self-imposed penalties, penalties imposed by the WCAB, or penalties imposed by other regulatory agencies.

Page 1914 of 3058 ends

sedgwickP I 2

CITY reserves the right to request the reassignment of vendors, subcontractors, or TPA employees that are not performing in a manner satisfactory to CITY. If the work is to be reassigned, CITY shall maintain sole discretion on reassignment. TPA shall prepare and provide CITY with the OSHA 300 and OSHA 300A annual reports; prepare and provide CITY with the Public Self -Insurance Annual Report; and as requested prepare charts and graphs, perform statistical analysis of claim frequency and severity, loss trends, etc.

At CITY's request, the TPA shall make available all CITY claim files for independent audit. TPA shall fully cooperate with the audit and provide all information and data required to conduct and complete the audit.

The TPA shall implement a disaster recovery plan that is intended to secure, and if necessary, restore information adversely affected by a security breach, force majeure, or natural disaster. TPA shall make reasonable efforts to ensure that, at all times, it has a sufficient number of trained personnel on hand to meet its obligations under the Agreement, including in the event of a force majeure, natural disaster, or pandemic. If necessary, the TPA shall complete a file and data transfer, including IT conversion, from the incumbent TPA. All costs incurred for this data transfer and conversion shall be borne by the TPA.

Sedgwick agrees to comply with this requirement. We are licensed by the State Office of Self Insurance Plans, and all examiners receive continuing education. Our staff have completed training with the City's HR/Risk Management staff, and we continually provide changes in rules and regulations as they impact the City's program. We do not employ vendors or subcontractors. Sedgwick routinely holds claim audits and we have implemented a disaster recovery plan that we make available to clients in the event of a disaster. No data transfer is needed, as we are the incumbent TPA.

III. Services required - Claims Administration
• Claims Administration (from handle claims inception to disposition) • Provide and manage a Medical Provider Network (MPN)
• Provide Managed Care Services, which shall include:
-Medical Billing Reviews
- Utilization Reviews
-Field Nurse Case Management
-Telephonic Nurse Case Management
- Pharmacy Card Services
• Case Load per examiner — Each senior claim examiner shall have a caseload not to exceed 150 open indemnity claims. Each claims assistant shall have a caseload not to exceed 100 open future medical claims and medical only claims. The supervisor shall oversee this requirement. -The WC supervisor shall regularly review the work product of the examiners. The supervisor shall review 50% of the examiners caseload monthly and conduct comprehensive reviews of all claims with reserves in excess of $50,000
• Forms — TPA to provide all forms necessary for the processing of benefits or claims information, including the Employer's Report of Occupational Injury of Illness (DWC Form 5020), Employees Claim Form (DWC-1), vouchers, checks, and other related forms. The cost of providing these forms shall be included within the contract price.

Page 1915 of 3058 ends

sedgwick'' I 3

• Staff Training - The TPA selected is expected to conduct system administrator and user training sessions for the City. At least three (3) training sessions are conducted for the groups (1— System Administrator Training, 2 — User Training). Furthermore, the vendor will also be required to provide all reference manuals, booklets, and/or other materials required for training.

Sedgwick agrees to comply with this requirement. We currently provide claims administration, MPN, bill review, utilization review, nurse case manager, and pharmacy services for the City. We maintain adequate caseloads and routinely audit the work of each examiner monthly. We have provided the necessary forms and staff training to ensure program success. We agree to additional training, should the City have any refresher needs.

IV. Services Required - Communication
The TPA shall maintain regular communications with the City and injured employees, from the inception to disposition of each claim. Communication is required but not limited to:
• TPA shall make initial contact with the claimant and establish a claim file within 24 hours of receiving the Employers' First Report of Injury from the city.
•TPA contacts the e physician's office within one to three days of notice of all new claims and shall provide follow-up and intervention with medical service providers on behalf of the City and the injured employee. • TPA shall be the point of contact for injured workers for assistance with all aspects of the workers' compensation process, including explanation of permanent disability ratings and other benefit notices • The TPA shall provide the City, on an annual basis, with a program improvement plan based on program utilization rates and cost -to -benefit analyses.
• The TPA will be required to provide a claim review with City Staff a minimum of twice in each quarter, equivalency of 8 claim reviews in a calendar year.

Sedgwick agrees to comply with this requirement. We maintain regular communication with the City and injured employees from initial contact through claim closure to ensure knowledge of the claim process, benefits, permanent disability ratings and overall employee responsibilities. We provide physician contact and intervention, and on an annual basis demonstrate program savings, improvements and cost benefit analyses. We also maintain the required eight claim reviews in a calendar year.

7. PROPOSAL REQUIREMENTS
The proposal shall clearly address all the information requested herein. To achieve a uniform review process and obtain the maximum degree of comparability, it is required that proposals be organized and contain all information as specified below.

A. Cover Letter: Maximum of two (2 pages serving as an Executive Summary which shall include an understanding of the scope of services. The RFP shall be transmitted with a cover letter that must be signed by an official authorized to bind the consultant contractually. The letter accompanying the RFP shall also provide the name, title, address, and telephone number of individuals with the authority to negotiate and contractually bind the consultant. The cover letter constitutes certification by the consultant, under penalty of perjury, that the consultant complies with nondiscrimination requirements of the State and Federal Government. An unsigned proposal or one signed by an individual unauthorized to bind the consultant may be rejected.

Page 1916 of 3058 ends

sedgwicle I 4

Raveena Chara
Procurement and Contracts Specialist
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
RE: Request for Proposals for Workers' Compensation Third Party Administrator Services Dear Raveena and the City's evaluation committee:

At Sedgwick, nothing is more rewarding than the opportunity to build on the solid foundation we have established with our long-standing clients. We have enjoyed a fruitful partnership with the City since 2015.

Ensuring the City has the right risk management solutions in place to meet future challenges allows us to maintain a clear focus on achieving healthy outcomes defined by your needs. Our solutions for the City expand across the entire risk management spectrum— workers' compensation, call center, managed care, Medicare and subrogation.

In this proposal, we offer several key elements of our service model that differentiate us from our competitors including the City's program highlights, notable savings and success metrics, your assigned service team, and recommendations for growth and achievement. We believe Sedgwick is the optimal partner for the City, and we hope to continue as your third -party administrator (TPA).

To underscore our commitment to the City, we outline program highlights below, but also look forward to partnering with the City to identify opportunities for further collaboration. Some benefits of our current partnership include:

We know your program history, opportunities and requirements better than any other TPA Our state-of-the-art technology provides access to claim data with flexible reporting and communication tools Close interaction between the City and Sedgwick that has played a significant role in managing the financial exposures and ultimately, controlling overall claim costs Through April 2025 YTD, only four new claims are indemnity type, litigation has been reduced by 7.6% on pending inventory and your closing ratio through 4.30.25 was 110% By renewing with Sedgwick, the City will avoid the disruption in services and personnel changes that often occur when a service provider is replaced. We will continue to leverage key initiatives that have been rolled out during the current contract term.

Sedgwick proposes that your program continue to be handled from our Rancho Cucamonga, California, office.

Stephanie Millhollon will continue as your claims director, with Juan Tapia as the claims team lead. Your assigned claims examiner, Paula Gentry, will continue providing optimal claims handling, with support from Adrianna Ramirez, claims associate. In addition to the operations team, Sedgwick offers a designated client services lead to support the City in all aspects of the program outside of direct claims management. Sedgwick will continue to listen, identify and analyze gaps and translate our shared vision into a roadmap for continued success. For continued improvement, we recommend a re -implementation meeting upon contract award to renew and refresh our commitment and goals. We will coordinate an implementation meeting to review current client service instructions and make any necessary changes, define mutually agreed upon goals and discuss metrics delivery. Thank you for your confidence in our people and organization, and for the opportunity to reaffirm our Sedgwick Copyright © 2025

Page 1917 of 3058 ends

sedgwick" I 5

dedication to the City's valued program.

As an authorized representative of Sedgwick, I have the authority to negotiate a contract with the City; however, should you have any questions concerning this proposal, Diana Huddleston, client services manager, will serve as the primary contact and will gladly assist you. She can be reached at 602.906.3634 or [email protected].

Scott Rogers
Executive Vice President and Chief Growth Officer
B. Introduction/Information: Introduction of the service proposal, including a statement of understanding for the types of services contemplated. Provide a discussion on how the objectives of the scope of services will be accomplished. Provide the name of the firm submitting the proposal, its mailing address, telephone number, and the name of the individual to contact if further information is required. Any participating firms and proposed sub -consultants shall be identified and included in the proposal (all sub -consultants must be approved by City prior to signing the agreement with City).

Sedgwick understands the City's objective is to partner with a TPA to continue providing workers' compensation claims management services to support your self -insured workers' compensation program. We have provided an in-depth response to the Scope of Services beginning below.

Firm information
Sedgwick Claims Management Services, Inc.
8125 Sedgwick Way, Memphis, TN 38125
Proposal contact
Client services contact
Alysen Wade
213.719.1339
Diana Huddleston
602.906.3634
C. Scope of Services: Provide a description of the tasks, sub -tasks, and deliverables that will be provided. The Scope of Services should be presented in a logical format that can be easily attached to the Professional Services Agreement (Exhibit B. Any additional items not mentioned above in the list but needed in order to perform the services requested shall be included in the proposal as additional items for consideration.

Sedgwick has provided comprehensive responses to the Scope of Services below.

V_ Scnne of Work

1. Assisting the City in processing and managing all aspects of workers' compensation claims filed by injured or ill public employees. From initiation to resolution which includes establishing a database record upon receipt of an injury report, determining compensability, setting and updating reserves, reviewing and verifying the details of the claim, managing medical discovery, and settling the claim, if applicable.

Sedgwick currently processes and manages all aspects of workers' compensation claims filed by the City's public employees. When the claim is reported by the City, Sedgwick takes immediate action to ensure timely and accurate handling. This process begins with gathering all relevant details from the report, verifying coverage and assigning the claim to the designated claims examiner. A claim number is assigned, and digital file created which is accessible to the City through our viaOne claim system in real time.

The City's HR department reports the incident to Sedgwick using our dedicated, toll -free telephone number or by accessing our claims administration platform through viaOne or our online, self-service portal, mySedgwick. The system records claim details collected during intake and routes this information to the appropriate service team.

Page 1918 of 3058 ends

sedgwjck" I 6

A team lead reviews the claim within 24 hours and assigns it to an examiner based on jurisdiction, claim type and complexity.

Once the claim is received by Sedgwick and assigned by the team lead, the claims examiner contacts the employee, the healthcare provider and the employer within 24 hours to review the facts surrounding the injury and make a compensability determination.

Our unique managed care model is designed to simplify processes and decrease both temporary total disability (TTD) and medical spend. This integrated model has achieved an 8% reduction in overall medical spend per claim and a 12% reduction in overall indemnity spend per claim, demonstrating the tangible value we bring to our clients. Our managed care solutions include end -to -end clinical solutions, medical bill review and PPO and ancillary networks. Our robust clinical team is made up of registered nurses (RN), credentialed vocational rehabilitation professionals and master's level licensed clinical social workers (LCSW). Each clinician plays a specific role in managing medical recovery and return to work during the life of the claim. From 24/7 nurse triage at the time of injury, to our full suite of case management services, we partner with the client and the claims team to work toward claim resolution.

Prior to settlement, the examiner will consider all outstanding issues within the scope of the claim and negotiate them as part of the settlement. The examiner does not wait for a finding of maximum medical improvement (MMI) and works to recognize all opportunities to enter a settlement agreement at the earliest time. Sedgwick colleagues are trained in negotiation techniques and work directly with the parties to effectuate a resolution. For the City, Sedgwick has achieved an average closing ratio of over 100% over the last three years, completed seven settlements since May 2024 and has reduced the City's aged inventory by 10 claims.

2. Upon receipt of the Employer's Report of Occupational Injury or Illness, Application for Adjudication of Claim, or any other notice of a new claim, the TPA will prepare an individual claim file within one (1) business day for each claim. A claim number shall be generated for each claim entered into the claims system. The file shall be available to CITY, including their representatives, claims auditors, and agents, for inspection and will contain all medical and factual information on each reported claim.

Sedgwick agrees to comply with this requirement. A team lead reviews the claim within 24 hours and assigns it to an examiner based on jurisdiction, claim type and complexity. Sedgwick sends claim acknowledgments via email within one business day of receipt of the claim.

3. In all non -litigated, lost time, or disputed cases, telephone or personal contact will be established with the injured employee/claimant within one (1) business day of receipt of notice of claim.

Sedgwick agrees to comply with this requirement. Establishing initial contact with the injured employee within 24 hours is critical in securing a successful outcome.

4. TPA expected to establish appropriate initial reserves within three (3) business days based on the information obtained at the time of claim set up.

Sedgwick agrees to comply with this requirement. Each claim is unique, with exposures determined by the injured employee, client, accident details and injuries sustained. Sedgwick establishes reserves to reflect the probable ultimate exposure based on available facts, with initial reserves set for indemnity, medical, and expense categories within three business days. These are reviewed and adjusted within 14 days per PRISM standards, then every 90 days, or within five days of any material change. For medical -only claims, Sedgwick uses rules - based, automated reserving driven by common combinations of injury nature, cause, and body part codes by Sedgwick Copyright © 2025

Page 1919 of 3058 ends

sedgwickP I 7

state; if insufficient data exists, a default reserve of $750 is applied. Examiners must validate reserve accuracy, and automated rules are reviewed quarterly to ensure alignment with cost trends and economic factors.

5. TPA expected to make a compensability determination within the timeframe allowed by California Law — (accept claim, deny claim, or delay acceptance pending the results of additional investigation) and the reasons for such determination will be made and documented in the claim file within two (2) business days from the receipt of the notification of the loss by the TPA
Sedgwick agrees to comply with this requirement. Sedgwick will comply with the City's request to make a compensability determination (accept, deny, or delay) within two business days of receiving a claim. During the initial investigation, the examiner identifies red flags or warning indicators and collaborates with the City to develop an investigative plan. This process includes recorded statements, witness interviews, medical record reviews and identifying discrepancies. If further investigation is warranted, the examiner consults with the City to refine the approach. Upon determining causation, the examiner communicates findings to the injured employee, ensuring they understand their options. In making a compensability decision, the examiner evaluates whether the claimant is a covered employee, whether the injury or disease occurred in the course of employment (AOE/COE), whether it resulted from work -related activities, whether treatment or disability is required, and whether any statutory defenses apply.

6. Arranging for investigation as applicable, ensuring all necessary documentation is provided in a timely manner including all benefit notices, proactively notifying the City and the excess carrier of all claims which exceed or may exceed the self-insurance retention.

Sedgwick agrees to comply with this requirement. Within two business days of receiving a claim, the examiner determines whether to accept, deny, or delay based on available information. If compensable, benefits are initiated, and notices issued; if further investigation is needed —due to concerns like prior injuries, medical history, or questionable activities —the examiner consults with the City and may issue a formal delay.

Investigative steps may include recorded statements, subpoenas for records, or medical -legal evaluations. Once the investigation concludes and the City concurs, a final compensability decision is made. Sedgwick strives to minimize delays and complies with all California regulations. For claims with escalating exposure —such as severe injuries, extended disability, or litigation —the examiner promptly evaluates reserves and, if nearing the self - insured retention threshold, notifies the employer and PRISM with a detailed status report. Updates are provided at key milestones or at least every 90 days.

7. With the direction of HR/Risk staff arranging legal counsel on behalf of the City as applicable, proactively seeking the opportunity to minimize the City's risk through in-depth claims analysis in an effort to identify the most appropriate cost-effective resolution.

Sedgwick agrees with this requirement and will continue to work with the City on gaining consensus prior to assigning a case to legal counsel. The recommendation for the involvement of defense counsel occurs when an administrative process such as mediation, conference or hearing requires legal representation and management of those processes. If a legal referral is needed, the claims examiner discusses their recommendation with the City and together they will agree on the approach as well as which law firm and specific attorney is to be assigned. Sedgwick examiners partner with defense counsel through timely communication and strategy sessions.

Page 1920 of 3058 ends

sedgw)ck" I 8

8. The claims adjusters is expected to work routinely with city staff, medical providers, injured employees, and defense attorneys, if applicable, to ensure claims are handled appropriately and in a timely manner.

Sedgwick agrees to comply with this requirement. Our claims examiners work directly with injured employees, City staff and attorneys to gather claim information and documentation, set reserves, document claim progress, manage the claim to closure and participate in claim reviews. Sedgwick will continue to send quarterly claim reviews and monthly reports with highlighted KPIs.

9. The TPA will investigate questionable claims with coordination, assistance, and approval from the City.

Sedgwick agrees to comply with this requirement. The initial investigation process begins when the claim is reported. The examiner reviews paperwork filed at the time of injury for any red flag indicators, concerns or benefits that may be due. They undertake a desk -level investigation to confirm the demographics of the injury and obtain information from the employee, employer and medical provider relative to the injury, past medical history and activity. If compensable, benefits for lost wages are addressed, notices issued and tasked for ongoing benefits. If additional questions or concerns arise from the desk -level investigation, we will discuss with the City to confirm concurrence and will issue a formal delay of the claim.

The questions/concerns warranting additional investigation could include prior injuries, past medical history or questionable outside activities prior to, at the time of or subsequent to the injury. During this investigative period, the examiner may assign an investigator to obtain recorded statements, subpoena medical or insurance records and may require a medical -legal evaluation to determine the compensability of the claim. Upon completing the investigation process and after concurrence from the City, we accept or deny the claim. Where a formal delay is required, Sedgwick completes the investigation quickly. We administer all claims, whether accepted, delayed or denied, in accordance with all California regulations, statutes and timeframes.

10. The TPA shall closely monitor all active claims and make timely reports to the City of case status, pending issues, suspected malfeasance, and any other pertinent program information.

Sedgwick agrees to comply with this requirement. Examiners are required to conduct ongoing reviews of each open active claim at a minimum of every 45 days. During these reviews, updates to the City concerning any pending issues or barriers to resolution should be brought to the attention of the City for discussion and agreed upon plan of action.

11. The TPA shall provide the City with regular loss reports, as requested by the City, and provide special reports such as OSIP Annual Report, OSHA Form 300, OSHA Form 300A.

Sedgwick agrees to comply with reporting requirements and provides a comprehensive monthly claim and expense report that includes detailed data on open and closed claims, financial summaries (total incurred, reserves, paid -to -date), new claims, closures, and categorized recovery amounts across all levels of the City's structure. Additionally, Sedgwick offers flexible OSHA recordkeeping through the viaOne OSHA tool, enabling centralized compliance with OSHA's reporting requirements. Our trained analysts manage all updates, including time tracking, injury classification, and privacy designations, and generate standard reports such as OSHA 300, 300A, 301, DART, and BLS surveys. We also support electronic submissions based on establishment size and NAICS codes.

12. The TPA shall, on behalf of the City, examine all reports of industrial injury to or disease of employees reported to it by the City and properly process each claim from its inception to resolution. Such procedures shall include, but not be limited to, determining the compensability of claimed injuries and illnesses under the Sedgwick Copyright © 2025

Page 1921 of 3058 ends

sedgwicle I 9

State Workers' Compensation Law, eligibility for payments of medical benefits and medical examinations, coordinating rehabilitation efforts, recommending payment of temporary and permanent disability compensation, and utilizing, as necessary or desirable, the advisory rating of the Permanent Disability Rating Bureau.

Sedgwick agrees to comply with this requirement.

13. All claim files shall be reviewed at least every 45 days for active claims and at least every six months for claims that have settled but remain open for the employee's future medical care. Each claim is expected to have a plan of action updated at least every (60) calendar days on active claims and 180 days for claims that have been settled.

Sedgwick agrees to comply with this requirement. An initial diary is set within 30 days of claim assignment to ensure the investigation, and first benefit payment (if appropriate) have been completed in a timely fashion.

Subsequent diaries are set no later than every 45 days for the examiner and 120 days for the supervisor for the life of the claim, in addition to those required by the examiner's follow-up activities. Future medical claims are reviewed at least once every six months, or sooner if treatment activity requires regular review. The team leads for the City's program will focus on technical quality by performing ongoing reviews of all open indemnity claims at various points in their life span. Sedgwick requires standard reviews after the first 30 days and every 90 days thereafter through the first year. We schedule subsequent reviews based on the individual merits of the claim.

14. The assigned adjuster is expected to follow a diary system and the supervisor shall monitor the diary reviews by printing a "No Activity" report each month to identify any files that have fallen off the diary system.

Our system generates a diary for open claims to assist the examiner by automatically documenting critical activities and performing data validation and edits during the claims management process. We may set additional diaries based on client instructions to remind the examiner and team lead of critical dates for the claim. The system allows for the examiner, team lead, nurse and other diaries on the same claim. Our internal control reports identify cases that are open without a diary so we can ensure no claims remain open without a diary.

15. The examiner shall request a report from the ISO on all new indemnity claims. The TPA shall review and analyze all reports.

Sedgwick agrees to comply with this requirement.

16. The TPA will help minimize the overall cost of workers' compensation which includes but is not limited to negotiating medical treatment costs, advocating for cost-effective rehabilitation services, and identifying fraudulent or unnecessary claims.

Sedgwick agrees to comply with this requirement. Sedgwick offers a fully integrated, end -to -end clinical solution that leverages early clinical involvement and predictive analytics to improve outcomes and control costs. Claims are identified for case management based on data insights and evaluated by licensed clinicians to determine the appropriate level of nurse intervention, with clients charged only for services performed. Our managed care services include nurse triage (29% lower average incurred), field and telephonic case management (saving $5,200 and $8,000 per claim, respectively), surgery nurses (14% reduction in PT costs, 13% increase in return to work), utilization review (49% of treatments denied or negotiated), pharmacy management (46% reduction in morphine equivalents, 77,000 scripts avoided), and return -to -work strategies (up to 60% reduction in indemnity incurred).

Additional cost containment services include medical bill review (15:1 ROI, 61% savings), national provider benchmarking (47% fewer lost -time files), and network solutions (PPO, pharmacy, and specialty networks) Sedgwick Copyright © 2025

Page 1922 of 3058 ends

sedgwick" I 10

continuously optimized by our network management team.

17. Medical Administration
The TPA, absent a Medical Provider Network (MPN), shall coordinate with CITY to develop a panel of occupational medical facilities and high -quality general practitioners, specialists, hospitals, and emergency treatment facilities to which injured employees should be referred. The panel shall be regularly reviewed and updated. The TPA shall assist CITY in identifying an industrial clinic and/or medical providers, if requested.

Sedgwick agrees to comply with this requirement. The City currently uses our Wellcomp MPN. The Wellcomp MPN meets the applicable access standards for pursuant to Labor Code Section 9767.5. The MPN provides access to primary care physicians or emergency care and other occupational health service specialists near the City's covered employees' residences or workplaces.

We have a team dedicated to providing ongoing MPN program management and ensuring excellent customer service for our clients' injured employees. The team has 17 years of experience in MPN implementation and coordination service with the California Department of Workers' Compensation and strategic development and oversight of Sedgwick's California MPN solutions.

18. Medical Payments
Medical bills will be matched to the file, reviewed for accuracy, and approved for payment within the time limits established by Labor Code Section 4603.2. If all or part of the bill is being disputed, the TPA will notify the medical provider, on the appropriate form letter, within the timeframe established by the Labor Code Section 4603.2.

Sedgwick agrees to comply with the medical payments requirement. All medical bills are validated and indexed to the appropriate claim file using identifying information on the bill such as name, date of birth, SSN, claim number, name of employer etc. Within five days of receipt, the examiner is required to send the bill to our bill review department for processing. Within our system, the examiner can dispute the bill, request additional information, or request full review and payment based on the status of the claim. Provider payments and Explanations of Review are required to be made within 21 days of Sedgwick received date.

19. Provision of Benefits
The TPA shall provide all compensation and medical benefits in a timely manner and in compliance with the statutory requirements of the California Labor Code. The TPA shall compute and pay temporary disability benefits to injured employees/claimants based upon earnings information and authorized disability periods.

The TPA shall review, compute, and pay all informal ratings, death benefits, Stipulated Awards, Findings and Awards, life pensions, or Compromise and Release settlements City shall establish a banking account from which such benefits are paid.

Sedgwick agrees to comply with the provision of benefits requirement. Accurate indemnity benefit payments are a critical responsibility of Sedgwick's claims examiners, supported by a system that aligns payments with documented work status and maintains a complete work history for the City's reference. Examiners use automated benefit approval diaries to ensure timely payments and regularly coordinate with the City's HR department to confirm off -work status and verify benefit accuracy. Indemnity payments are initiated within 14 days of disability onset or as required by statute, with subsequent checks processed in accordance with jurisdictional timelines. Long-term payments are scheduled in advance, and payments resulting from awards or Sedgwick Copyright © 2025

Page 1923 of 3058 ends

sedgwick" I 11

orders are issued within five days of receipt. All substantiated bills are paid within 21 days, or vendors are notified of non-payment reasons.

20. Allocated Loss Expenses
All allocated loss expenses shall be the responsibility of CITY. It is agreed and understood that, whenever practicable, allocated loss expenses should be paid directly from the applicable claim file. The above fee arrangement shall include all services included in this RFP except for payments made by the TPA on CITY's behalf for medical, disability, or other benefits, and allocated loss expense.

Sedgwick agrees to comply with this requirement. Please see our pricing narrative for all allocated loss expenses.

Allocated Loss Expense shall mean all WCAB or court costs, fees, and expenses; fees for service of process; fees to attorneys; fees of independent adjusters or attorneys for investigation or adjustment of claims for AOE/COE investigations not performed by the TPA's workers' compensation claims personnel; the cost of employing experts for the purpose of preparing maps, photographs, diagrams, chemical or physical questions; the cost of copies of transcripts of testimony of coroner's inquests or private records; the cost of depositions and court reporter or recorded statements; and any similar costs or expenses properly chargeable to the defense of a particular claim or to the protection of the subrogation rights of CITY; provided, however, that all of the above services performed by the TPA's personnel shall not be considered allocated loss expenses unless CITY is informed by the TPA that an AOE/COE investigation is necessary and CITY requests, in writing, that the TPA perform that investigation; the TPA personnel can then perform the investigation and the costs of that investigation shall be considered as allocated loss expenses. If CITY does not request the AOE/COE investigation be performed by the TPA personnel, such investigation shall be referred by the TPA to an independent investigator. Allocated loss expense shall also include medical cost containment program costs as defined in Title 8, Division 1, Chapter 8, Subchapter 2, Article 6, and Section 15300.

Sedgwick agrees to comply with this requirement.

21. The initial Indemnity Payment
The initial indemnity payment or voucher will be issued and mailed to the injured employee/claimant or employer, if appropriate, together with a properly completed DWC benefit notice within ten (10) business days of the knowledge of the first day of disability.

Sedgwick agrees to comply with this requirement. Sedgwick best practices dictate that claims examiners issue lost wage benefits timely and for the correct amount. This consists of confirming and documenting the compensability determination, obtaining a current medical work status, calculating the average weekly wage upon receipt of a wage statement from the employer and establishing a payment diary. Following the initial disability payment, ongoing payments are diaried every 14 days for review and additional benefit payment, if supported, or termination if return to work has or will occur. A DWC benefit notice is sent any time there is a change in the benefit.

Late payments must include the self-imposed increase in accordance with the Labor Code. Reasons for the late payment shall be clearly documented in the computer notepad within one (1) business day.

Sedgwick agrees to comply with this requirement. We are responsible for any fines and penalties that are a result of noncompliance with the California Labor Code, or the workers' compensation rules and regulations of the state, that are the fault of Sedgwick and/or our vendors. We operate openly and honestly with our clients in Sedgwick Copyright © 2025

Page 1924 of 3058 ends

sedgwick" I 12

penalty assessments on claims. All penalty payments are transparent on the claim file, whether by the client or by Sedgwick. We have an automated process to reimburse the client for any TPA penalties that the CSD reviews for accuracy. Sedgwick uses different payment codes to ensure proper processing of these payments. We reimburse the client for penalties that are determined to be our responsibility monthly, or whatever time interval the client deems appropriate based on the coding.

The City participates in the PERS retirement system and shall pay Labor Code 4850 benefits.

Sedgwick agrees to comply with this requirement.

All indemnity payments or vouchers subsequent to the first payment will be verified, except for obvious long- term disability, and issued timely in compliance with the Labor Code.

Sedgwick agrees to comply with this requirement.

22. Return to Work
The TPA shall provide assistance to CITY in coordinating return to work information that is appropriate for injured employees while recovering and prior to their return to regular duties. The TPA shall consult with CITY at least once a month in those cases where the injury residuals might involve work restrictions and assist CITY in the provision of modified duty when appropriate. The TPA shall notify CITY immediately upon receipt of an employee's permanent work restrictions so that CITY can determine the availability of permanent modified or alternative work.

Sedgwick agrees to comply with this requirement. Sedgwick realizes the importance of a safe return to work (RTW) and will continue to collaborate with the City to establish a tailored approach to identify and administer claims that require modified duty placement. The examiner serves as a liaison between the medical provider, the injured employee and the employer to facilitate a safe and timely return to work. To do this, the examiner obtains the work status report from the provider and reviews the work restrictions with the City to collaborate with them on light duty or transitional roles which may be available. With the assistance of the claims examiner, the employer communicates the light duty availability to the employee with encouragement and emphasis on safety.

23. Permanent Disability
The TPA shall determine the nature and extent of permanent disability and arrange for an informal disability rating whenever possible to avoid Workers' Compensation Appeals Board (WCAB) litigation. Determination of the level of permanent disability shall be clearly noted in the claim file within one (1) business day.

Sedgwick agrees to comply with this requirement.

The TPA shall take advantage of any potential apportionment potential to prior claims, disabilities, and impairments. The TPA shall also advise CITY on the date of injury of potential credits and increases to permanent disability benefits should CITY accommodate permanent/alternative work for at least twelve (12) months.

Sedgwick agrees to comply with this requirement.

All permanent disability benefit notices shall be sent to the employee/claimant as required by the California Labor Code. Copies of benefit notices will be maintained in the applicable claim file with a copy to the city.

Sedgwick agrees to comply with this requirement.

24. Supplemental Job Displacement Benefits (SJDB)
Sedgwick Copyright © 2025

Page 1925 of 3058 ends

sedgwicle I 13

In accordance with all applicable California laws, the TPA shall advise the injured employee/claimant of his/her right to SJDB, provide appropriate SJDB, control SJDB costs, attempt to secure the prompt conclusion of SJDB, and provide notification to CITY should work restrictions require permanent or modified alternative accommodations.

Sedgwick agrees to comply with this requirement.

25. Settlements
The TPA shall obtain CITY authorization on all settlements and/or stipulations. If the total incurred amount exceeds CITY's retention with the excess carrier, the written settlement proposal shall also be directed to the excess carrier to provide authority in addition to CITY's authority. The TPA or defense counsel shall forward settlement proposals to CITY and the excess carrier if applicable. All requests for settlement authority shall be clear and concise and include a written claim analysis, estimate of permanent disability, coverage, and the defense counsel's comments and recommendations along with the dates of any pending litigation activity or conferences at the WCAB. If multiple claims are included in a settlement, the request shall outline the amount to be paid for each applicable benefit type to be paid on each claim. Settlement considerations must include an evaluation of the need for a Medicare Set Aside (MSA). Any referral for an MSA evaluation must have the prior approval of CITY.

Sedgwick agrees to comply with this requirement. Our examiners have specific settlement and payment authority levels based on their experience that the City can customize. If the settlement exceeds their authority, examiners notify their team lead and the City with a timely and complete evaluation of the claim exposure, recommendations, settlement range and discussion as to whether excess authority or a Medicare Set Aside will be required. Only after appropriate settlement authority is provided will it be pursued. Prior to making any referral for MSA, approval will be requested from the City.

26. Award Payment
Payments on Awards, computations, commutations, or Compromise and Release agreements will be issued within ten (10) calendar days, following receipt of the CITY's authorization. Payments will be made sooner if necessary to ensure payments are made within twenty (20) calendar days of the WCAB approval date. Late payments must include the self-imposed increase and appropriate interest in accordance with the Labor Code.

The TPA shall document the claim file with the date of WCAB approval, the amount of the settlement, and the type and duration of future medical care recommended by the applicable medical provider. The TPA shall also document the reason(s) for any late payment of the Award. Any penalties associated with late payment shall be incurred by the TPA.

Sedgwick agrees to comply with this requirement. We will issue settlement payments in a timely manner and per Labor Code guidelines and will ensure each settlement is paid within 10 calendar days. If by some chance there are any penalties or interest due on a settlement payment and is the error of Sedgwick, that exposure will not be paid off the file and no exposure to the City.

27. Subrogation
The TPA shall promptly initiate an investigation of issues identified as material to potential litigation and subrogation recovery. In all cases where a third party is responsible for the injury to the employee/claimant, the TPA shall send a letter to the entity indicating they will pursue subrogation unless instructed otherwise by Sedgwick Copyright © 2025

Page 1926 of 3058 ends

sedgwicle I 14

CITY. If the injured worker brings a civil action against the party responsible for the injury, the TPA shall consult with CITY about the value of the subrogation claim and other considerations.

Sedgwick agrees to comply with this requirement. We identify subrogation opportunities during the initial investigation and throughout the life of the claim in coordination with the appropriate representatives of the City to assist in determining any waiver of subrogation or other contractual agreements. Sedgwick's centralized subrogation unit, which will put the liable parties on notice, actively manages and continues to monitor the claim until all subrogation recoveries have been secured.

Sedgwick has a team of data mining experts who holistically evaluate a program, review criteria and produce a supplemental, in-depth claim subrogation report. Our complimentary data mining approach is so thorough that we find subrogation opportunities in almost 15% of all cases we review over a four -month period, which has resulted in savings of $2.3 million for our clients.

28. Fraudulent Claims
Any claim with suspected fraudulent activity shall be referred to the TPA's special investigation process for further investigation and potential referral to the appropriate authorities. The claim will be referred to an investigator with CITY's prior approval, to conduct further investigation. CITY will be notified of the referral and be provided with periodic updates.

Sedgwick agrees to comply with this requirement. Suspicious claims can be detected at any time during the claims management process. We utilize a claim monitoring tool to identify suspicious claims based on industry - standard red flags. The tool identifies claims that reach a threshold and alert the claims examiner as well as SIU to the claim and the red flags. We educate our claims teams about investigation indicators throughout the life of the claim. Our initial investigation focuses on identifying potentially fraudulent claims so we can engage SIU and apply appropriate techniques. Where an additional outside investigation is required, we engage SIU to perform background checks, surveillance, field investigations and other public record checks to create an appropriate case. For claims where we suspect provider fraud, we use our initial investigation and claim process to explore these circumstances.

29. Future Medical Claims
Claims that remain open to monitor future medical care shall remain open for two (2) years from the last provision of any benefit in accordance with Labor Code 3207. Reviews of the file shall be documented in the claim notes to include settlement information, future medical care outline, last date and type of treatment, name of excess carrier, excess carrier reporting level, and excess carrier reporting history.

Sedgwick agrees to comply with this requirement.

Reserves for future medical treatment will be reviewed every one -hundred eighty (180) calendar days and adjusted for use over a three (3) year average and the injured employee/claimant's life expectancy based on the most recent version of the U.S. Life Table. The reason(s) and calculation(s) for the adjustment(s) shall be clearly documented in the claim file within one (1) business day.

Sedgwick agrees to comply with this requirement.

The TPA shall evaluate the claim at least annually to determine a reasonable amount for settlement of future medical benefits and any remaining benefits due. The reason(s) and calculation(s) for the recommended settlement amount shall be clearly documented in the computer notepad within one (1) business day. The TPA Sedgwick Copyright © 2025

Page 1927 of 3058 ends

sedgwick'' I 15

shall clearly document the claim file with the outcome of the settlement negotiations with the employee/claimant and/or applicant's attorney. Refer to Item 25 regarding the consideration of MSA settlements.

Sedgwick agrees to comply with this requirement.

Should active litigation develop after the claim has been settled, the claim will be considered active and will no longer be considered a future medical claim. All appropriate performance standards contained in this document pertaining to active claims will apply.

Sedgwick agrees to comply with this requirement.

30. Excess Coverage
Cases that have the potential to exceed CITY's self -insured retention shall be reported in accordance with the reporting criteria established by the excess coverage policies. All cases that meet the established reporting criteria are to be reported within ten (10) business days of the day on which it is known the criteria is met, or sooner if required by the excess carrier. The report shall be on a form satisfactory to the excess carrier and submitted electronically ninety (90) calendar days from the date of the initial notice and every ninety (90) calendar days thereafter, unless indicated otherwise by the excess carrier. Each submission shall include the supporting documents required by the excess carrier.

Sedgwick agrees to comply with this requirement. Excess notification is part of our claim handling standards.

Sedgwick enters client -specific excess parameters into our claims system. If a claim meets an excess trigger, the examiner reviews the file and sends a narrative report to the excess carrier. Our system flags that the carrier has been advised and establishes an automated diary to follow up with the excess carrier on any issues. The system also automatically notifies the client services director by email regarding files that need to be reviewed for proper reporting requirements.

A copy of the submission to the excess carrier and subsequent reports shall be forwarded electronically to CITY until such time as the TPA is instructed otherwise.

Sedgwick agrees to comply to this requirement. JURIS has system -generated alerts to ensure claims are reported timely for initial and subsequent reporting requirements and this can be customized to ensure the City also receives a copy of the initial and subsequent reports

31. Excess Reimbursements/Recoveries
The TPA shall be responsible for collecting reimbursements and recoveries from the excess carrier and on a quarterly basis. Reimbursements shall be requested by the twentieth (20th) of the following month after the quarter ending March 31, June 30, September 30, and December 31. If the claim remains open to monitor future medical care, reimbursements shall be immediately requested when the claim is reviewed semi- annually.

Sedgwick agrees to comply with this requirement. Carrier reimbursement processes can vary by client. Per our service expectations, if examiner engagement is required in requesting reimbursement, we monitor and follow up as required for receipt of carrier reimbursement and set system diaries to ensure carrier reimbursement is timely requested and received, if appropriate. These system diaries can be customized to comply with the City's requirement that reimbursement requests be submitted on or by specific dates.

Page 1928 of 3058 ends

sedgwick" I 16

A copy of the request to the excess carrier shall be forwarded to CITY until such time as the TPA is instructed otherwise.

Sedgwick agrees to comply with this requirement.

32. Overpayments
The TPA shall be responsible for collecting any overpayment of any benefit. In the event that the TPA fails to collect the overpayment, the TPA may be responsible to reimburse CITY for the amount of the overpayment.

Any settlement which considers credit for an overpayment against "new and further" disability must be reviewed and approved by CITY. The claim notes shall outline the reason and amount of the overpayment and the efforts taken to request reimbursement for the overpayment.

Sedgwick agrees to comply with this requirement. While we strive to prevent overpayments, if one is identified, we will document it in the overpayment tracking system, notify the injured employee with a letter detailing the amount, reason and recovery method, seek approval from the City before applying any credit against future disability benefits and initiate recovery promptly. All overpayments and recoveries are tracked in the electronic claim file, with flagged status for ongoing monitoring.

33. Penalties/Self-Imposed Increases
Late payment of all benefits must include the self-imposed penalty/increase in accordance with California law.

The claim notes shall outline the reason and amount of the penalties/increases.

Sedgwick agrees to comply with this requirement.

The TPA shall adhere to the requirements outlined in Section 25, Settlements, when settling exposures for penalties/increases.

Sedgwick agrees to comply with this requirement.

34. Case Closure
Every attempt should be made to conclude cases as fairly and expeditiously as possible to avoid unnecessary litigation.

Sedgwick agrees to comply with this requirement. Sedgwick prioritizes proactive resolution to avoid litigation whenever possible, with examiners working urgently and empathetically to deliver benefits, set expectations, and guide injured employees toward closure. When litigation is unavoidable, our comprehensive litigation management program —outlined in the appendix —establishes clear expectations for examiners and defense counsel, emphasizing early, cost-effective resolution strategies informed by industry -wide analysis. Examiners collaborate closely with counsel to develop and execute resolution plans or prepare for defense, while continuing to manage the claim and maintain communication with the client. Over the past three years, Sedgwick has maintained an average claim closing ratio exceeding 100%, and we offer detailed reports and scorecards for claims flagged as "in litigation."
Claims with $3,000 for more paid to date and/or open beyond 180 days from the date of entry shall be converted to indemnity status and a reasonable, precautionary indemnity reserved placed on the claim.

All indemnity cases where permanent disability is not an issue, will be closed within sixty (60) calendar days of the final financial transaction or final correspondence to the employee/claimant as required by law.

All indemnity claims where permanent disability is an issue will remain open for two (2) years from the last payment of any benefit and then closed within sixty (60) calendar days of that date.

Page 1929 of 3058 ends

sedgwicV I 17

All indemnity claims where permanent disability has been denied will be closed within 30 days of denial.

35. Compliance with Labor Code
Sedgwick agrees to comply with this requirement.

36. Financial Administration
CITY has established a trust account from which the TPA shall make all indemnity, medical, and allocated loss expense payments. Payment authorization limits and payment policies will be established by CITY and reviewed from time to time with the TPA. The TPA's monthly service fee shall not be paid from the trust account.

Sedgwick agrees to comply with this requirement.

The TPA shall maintain complete and accurate records with respect to costs, expenses, receipts, and other such information required by CITY that relate to the performance of services under this RFP. The TPA shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

Sedgwick agrees to comply with this requirement. Our accounting team recently upgraded to Sage Intacct for accounting and financial reporting. Intacct enables us to automate the preparation of budgets, allocations and financial statements, while also providing the necessary level of security, user controls and authority levels needed to maintain the integrity of the financial reporting function.

37. Right to Audit
CITY or its designated representative is authorized to visit the TPA's processing and/or storage premises for the purpose of performing a claims audit, and shall have access to all data, including paper documents, microfilm, microfiche, and magnetically stored data which relate to payments or non -payments made by the TPA. Any assistance or service provided in response to a claims audit described above will be rendered at no additional cost to CITY.

Sedgwick agrees to comply with this requirement. We welcome independent audits as directed by the City; however, all costs associated with a third -party audit for the independent review team are the responsibility of City. Sedgwick will provide on -site or electronic access to requested file information without limitations on the number of files reviewed, type of files reviewed and/or staff interviews associated with the operational review.

Sedgwick would like the opportunity to review and comment on the results prior to publishing the final findings.

38. Payments Outside of Coverage Period
No charges to CITY for payments made on behalf of persons who were not valid employees of the covered CITY on the date of injury shall be accepted for payment by CITY. The TPA may be responsible to reimburse CITY for any amounts paid in error.

Sedgwick agrees to comply with this requirement.

39. Client Services
The TPA shall consult annually with CITY on the establishment and coordination of necessary procedures and practices to meet the needs of CITY with respect to the administration and processing of claims.

Sedgwick agrees to comply with this requirement. The City's client services manager is responsible for consulting on all aspects of their program to ensure alignment and consistency in claims handling by actively engaging in Sedgwick Copyright © 2025

Page 1930 of 3058 ends

sedgwick" I 18

discussions around procedures and best practices. These interactions may occur at any time the City deems necessary. Ongoing collaboration ensures that both the City and Sedgwick remain informed, aligned and proactive, driving positive outcomes.

The TPA shall provide CITY with information regarding statutes, proposed changes to statutes, and changes to the rules and regulations affecting CITY and its responsibility as a legally uninsured workers' compensation authority.

Sedgwick agrees to comply with this requirement. If Sedgwick is aware of any changes or updates to statutes, rules or regulations, that information is immediately provided to the City, along with an explanation if those changes or updates require procedure updates.

40. Computer Access
The TPA shall provide online access at no additional charge to CITY. Such data shall be in a format accessible from CITY's computers and will permit CITY to print copies of the data on its printers. The TPA shall provide CITY with training for use of their computer system. If CITY, under the TPA's guidance, is not able to maintain online interface with data maintained by the TPA, the TPA may be required to provide a copy of all data processed during the previous month to CITY;s office on a disk by the tenth (10th) calendar day following month end.

Sedgwick agrees to comply with this requirement. Our training team assists in all client user training. Sedgwick offers several options for training, depending on the application. For viaOne, we typically use webinar-based training. We will continue to work with the City to offer live training plans, which may be provided on site, at a centralized location or at a Sedgwick service office. viaOne users have system support available 24 hours per day, seven days per week. We also provide documentation and offer post -training support through our viaOne support team. Sedgwick support colleagues are available after hours by mobile phone.

The TPA shall also provide online access to the excess carrier and their vendors as requested.

Sedgwick agrees to comply with this requirement. The Sedgwick application security team controls user access.

The security team monitors and maintains system access, which includes adding and removing users, assigning roles, password management, etc.

41. Confidentiality of Information
All data, documents, or other information developed or received, verbally or in writing, in performance of the agreement between the TPA and CITY are confidential and not to be disclosed to any person except as authorized by CITY, the TPA, or as required by law.

Sedgwick agrees to comply with this requirement.

42. Protection of Data
It is the TPA's responsibility to develop and implement processes and procedures relating to the protection of CITY's electronic data, including a suitable security and back-up system for all stored data and a written policy with respect to disaster recovery, physical and electronic data security, and electronic data retention.

Sedgwick agrees to comply with this requirement. Sedgwick is committed to safeguarding the City's information and ensuring operational resilience through a robust Business Continuity Plan (BCP). The BCP outlines coordinated response and recovery procedures for both corporate and field offices in the event of unplanned disruptions such as service outages, facility loss, or access issues. A centralized corporate team oversees these Sedgwick Copyright © 2025

Page 1931 of 3058 ends

sedgwick" I 19

efforts, supporting rapid recovery of affected operations. The plan includes detailed incident response protocols and recovery strategies designed to minimize confusion, reduce operational downtime, and restore essential business functions promptly and effectively.

43. Computer Generated Reports/Loss Runs
Computer Generated Reports/Loss Runs The TPA shall, at its expense, by the tenth (10th) calendar day of the following month, unless otherwise specified below:

A. Electronically provide the following information monthly to CITY, as it pertains to their respective claims:
i. A listing of all open claims showing the employee/claimant's name, claim number, date of injury, paid amount, future liability, total incurred, and any amounts recovered; ii. A listing of information needed for CITY to complete the applicable OSHA logs for claims where temporary disability benefits were paid during the applicable month showing the paid -to -date amounts, from and through dates of temporary disability benefits paid, claim number, and date of injury; and iii. A summary listing by fiscal year showing paid -to -date amounts, future liability or reserve amounts, total incurred amounts, number of open claims, and number of closed claims.

Sedgwick agrees to comply with these requirements.

B. Provide the following information monthly to CITY electronically in Excel, PDF, and the appropriate formats:
i. All open and closed claims run by fiscal year to include the employee/claimant's name, claim number, date of injury, occupation, free form text description of the injury, free form text description of the cause, site, and nature of the injury, number of days temporary disability benefits were paid, paid amount separated by type, future liability or reserves separated by type, total incurred separated by type, and any amounts recovered for subrogation or excess insurance.
ii. A summary listing run by program year showing paid to date amount amounts, future liability or reserve amounts, total incurred amounts, number of open claims, and number of closed claims; iii. A check register, excluding vouchers, in check number order, including any voids, refunds, and recoveries received with a page showing the total payments for the month by fiscal year; iv. A check register, including all activity, in check number order, including any voids, refunds, and recoveries received with a page showing the total payments for the month to be run by fiscal year; v. A voucher register run by fiscal year; and
vi. A "No Activity" report listing the claims that have had no activity during the previous one hundred eighty (180) calendar days. The report components should include no reserve changes, no payments, no recoveries, no refunds, and/or no computer notepad activity.

Sedgwick agrees to comply with these requirements.

C. Provide the following quarterly reports, in addition to the regular monthly reports, to CITY electronically in Excel format:
i. A listing of any administrative penalties/increases paid during the quarter. The report shall designate the party responsible for the penalty/increase;
ii. A listing of subrogation claims showing the employee/claimant's name, claim number, date of injury, paid to date amounts, future liability, total incurred amounts, and any excess or subrogation recoveries; iii.

Page 1932 of 3058 ends

sedgwick'' I 20

iii. As of June 30, September 30, December 31, and March 31, a listing of all open and closed claims with a total incurred value in excess of $75,000 to be run by fiscal year alphabetically. The report should include the employee/claimant name, claim number, date of injury, paid to date amounts, future liability, total incurred amounts, and any excess insurance or subrogation recoveries; iv. As of June 30, September 30, December 31, and March 31, a listing of all open and closed claims with a total incurred value in excess of $125,000 to be run by fiscal year alphabetically. The report should include the employee/claimant name, claim number, date of injury, paid to date amounts, future liability, total incurred amounts, and any excess insurance or subrogation recoveries; and v. As of June 30, September 30, December 31, and March 31, a listing of all open and closed claims with a total incurred value in excess of $250,000 to be run by fiscal year alphabetically. The report should include the employee/claimant name, claim number, date of injury, paid to date amounts, future liability, total incurred amounts, and any excess insurance or subrogation recoveries.

Sedgwick agrees to comply with these requirements.

D. The TPA shall provide loss data information to the excess carrier on a monthly basis in the format outlined by the excess carrier. The submissions shall be submitted to the excess carrier's secure File Transfer Protocols (FTP) server or website by the tenth (10th) calendar day of the following month. The submission shall include the required fields outlined by the excess carrier. The submissions will be made electronically in addition to the loss runs provided to CITY and will be made at no additional cost to CITY or its excess carrier.

Sedgwick agrees to comply with this requirement.

E. Provide a report to CITY annually in Excel format as of the end of the fiscal year, in addition to the regular monthly and quarterly reports, a year-end report. The report shall include all open and closed claims run by fiscal year, to include the employee/claimant name, claim number, date of injury, occupation, text description of the injury, number of days temporary disability benefits were paid, paid amount separated by type, future liability or reserves separated by type, total incurred separated by type, and any amounts recovered for subrogation or excess insurance.

Sedgwick agrees to comply with this requirement.

F. The TPA shall also provide appropriate reports as requested documenting the timely and accurate reporting of CITY'S claims to the Centers for Medicare and Medicaid Services (CMS).

Sedgwick agrees to comply with this requirement.

G. The TPA shall assist in the preparation of all reports that are now or will be required by the State of California or other government agencies with respect to self-insurance programs. The TPA will also assist in the preparation of all reports to statistical database organizations as requested by CITY.

Sedgwick agrees to comply with this requirement.

H. The TPA will provide CITY a quarterly listing of any administrative penalties/increases paid in the quarters ending March 31, June 30, September 30, and December 31. The report shall designate the party responsible for the penalty/increase.

Sedgwick agrees to comply with this requirement.

Page 1933 of 3058 ends

sedgwicle I 21

If the penalty/increase was the responsibility of the TPA, the TPA shall issue a check payable to CITY for reimbursement of the penalties/increases. The check and report shall be submitted to CITY by the twentieth (20th) calendar day of the following month after the quarter ends.

Sedgwick agrees to comply with this requirement.

I. Provide other special reports required of CITY including, but not limited to, loss trend reports, claim abstract reports, reports required by actuaries, excess insurance carriers, etc. If new programming is required in order to provide such special reports, the TPA shall pay at its own expense for new or special programming costs.

Sedgwick agrees to comply with this requirement.

Any corrections to the loss runs shall be made within thirty (30) calendar days of a request for correction.

Sedgwick agrees to comply with this requirement.

Other than standard monthly loss runs referenced in this section, computer generated loss data reports requested by CITY shall be provided within five (5) business days.

Sedgwick agrees to comply with this requirement.

44. Online Interface
The TPA shall provide read only online access to CITY. CITY shall have access to the claim file, including, but not limited to, examiner notes, paid, reserves and total incurred amounts, investigation reports, treating physician's reports, etc.

Sedgwick agrees to comply with this requirement.

The TPA shall provide CITY online access to complete and submit the Employer's First Report (Form 5020).

Sedgwick agrees to comply with this requirement. Sedgwick can produce the employer's first report of injury for all U.S. states. We file these reports with the state either via paper or electronically, depending upon the requirements of the state. Additionally, we can send copies of the employer's first report of injury to an intricate distribution of client destinations via email or fax.

45. Medicare Reporting
The TPA firm shall, either directly, or through an independent third -party reporting service, update and maintain all data fields required by the Centers for Medicare & Medicaid Services ("CMS") for mandatory insurer reporting in accordance with Section 111 of the Medicare Secondary Payer Act.

Sedgwick agrees to comply with this requirement. Sedgwick's Medicare compliance department trains our examiners to understand their roles and responsibilities in Medicare reporting through extensive annual training.

Sedgwick's Medicare compliance department oversees the entire process. They evaluate data and errors to make sure the data is corrected by the examiners in a timely fashion and evaluate all systems for improvements and automation opportunities. This team is also responsible for responding to any changes made by CMS to the MMSEA user's guide. Using these processes, Sedgwick receives fewer than 1% error messages back from CMS despite the hundreds of thousands of claims we report every year.

46. Excess Reporting
Cases that have the potential to exceed CITY's self -insured retention shall be reported in accordance with the reporting criteria established by the excess insurance providers.

Sedgwick agrees to comply with this requirement.

Page 1934 of 3058 ends

sedgwick'' I 22

47. Record Retention
All claim files and associated data shall be maintained in accordance with statutory time requirements and CITY's Record Retention Policy. CITY shall be notified prior to any destruction of files to determine if CITY wishes to retain the claim file at their own expense.

Sedgwick agrees to comply with this requirement. Sedgwick retains all claims data in our claims system for the life of the claim. We continue to retain this information upon termination of services unless otherwise obligated by stated contract provisions for the distribution of claims data. There are no additional charges for file storage while Sedgwick is under contract to the City. At the termination of the contract, however, the City may be charged the prevailing rate for storing paper files at a storage facility or for the transfer of imaged files. The City is responsible for the storage of claim files closed at the time that Sedgwick begins claims administration.

All records, files, transcripts, computer tapes and any other materials on workers' compensation adjusting activities developed on CITY's workers' compensation claims is the property of CITY and must be relinquished in good order and condition upon termination of an eventful contract with the TPA without an additional cost.

Sedgwick agrees to comply with this requirement. Claim records are the property of the City. The City has the right to review all files at any time and can determine if the files should be retained or destroyed.

48. Conflict of Interest
The TPA shall avoid all conflicts of interest or the appearance of conflicts of interest in performance of the contract. The TPA shall disclose any and all compensation received for ancillary services related to CITY, such as bill review services, managed care, or investigations.

Sedgwick agrees to comply with this requirement.

D. Approach: The firm's approach to delivering the scope of services. Provide a description of the firm's approach to communicating effectively with City staff and officials, other jurisdictional stakeholders, and the public, to facilitate successful delivery of assigned tasks.

Sedgwick recommends continuing to manage the City's workers' compensation program within the current office structure to maintain continuity and ensure that assigned colleagues remain well -versed in applicable regulations. The City's team—Devora Brainard-DeLong (VP, Client Services), Diana Huddleston (Client Services Manager), Stephanie Millhollon (Claims Director), Juan Tapia (Claims Team Lead), Paula Gentry (Claims Examiner), and Adrianna Ramirez (Claims Associate) —brings deep expertise in claims handling and a strong understanding of the City's culture and program evolution.

E. Structure and Content of Work Product: The firm will describe the way in which the work product will be structured and presented upon completion. Include computer and software compatibility information.

Our workers' compensation claims process and systems utilized is included in the appendix.

F. Communication: Provide a description of the firm's approach to communicating effectively with City staff and officials, other jurisdictional stakeholders, and the public, to facilitate successful delivery of assigned tasks.

Sedgwick is focused on maintaining high -quality customer service through regular and effective communication with the City and adhering to applicable service agreements.

G. Firm Profile: Provide a description of the firm, including number of professional personnel, years in business, office location(s), organizational structure (e.g., corporation, partnership, sole practitioner, etc.), areas of particular expertise, etc. The following information should also be included:

Page 1935 of 3058 ends

sedgwick`'' I 23

Founded in 1969, Sedgwick is a privately owned global provider of claims and productivity management solutions, operating in 80 countries with over 33,000 colleagues. As a 100% owned subsidiary of Sedgwick, L.P., with the Carlyle Group as the majority shareholder and minority ownership by Stone Point Capital, Altas Partners, CDPQ, Onex, and management investors, Sedgwick is structured into regional business units to ensure strategic, senior -level support and local responsiveness. We build long-term partnerships by aligning with client needs and delivering consultative expertise, efficient service, and industry -leading technology. Our areas of expertise span workers' compensation, disability, FMLA, paid family leave, general and professional liability, healthcare risk management, and specialty services such as affinity programs, fleet management, and warranty solutions.

Name
Address
Sedgwick
Claims 8125 Sedgwick
Management Way
Services, Inc.

City, State, Zip
Memphis, TN 38125
Structure
Incorporation
Website
Corporation Illinois, U.S. https://www.sedgwick.com/
Proposal Contact:

Alysen Wade: phone — 213.719.1339; email — [email protected] Client Services Contact
Diana Huddleston: phone — 602.906.3634; email — [email protected] In addition, any participating firms and proposed subcontractors shall be identified and included in the proposal (all subcontractors must be approved by the City prior to signing the agreement with the City).

Sedgwick does not utilize any subcontractors on the City's contract.

H. Location of principal office that will be responsible for the implementation of this contract.

As the City's current partner, implementation is not applicable. Sedgwick manages the City's claims from our Rancho Cucamonga, California, office.

I. Proposed Team: Provide a summary description of all personnel who will be involved with facilitating the workers' compensation program on the behalf of the City, their roles and responsibilities, and their experience with public agencies. In addition to this summary, full resumes must be provided.

Diana Huddleston will continue to serve as the City's client services manager. Diana has been with Sedgwick for four years and has 30 years of workers' compensation claims experience. Her experience with public entities includes a cumulative of 20 years. Her biography is included in the appendix.

J. References: Provide at least three (3) references from previous cities, counties or other agencies for similar work completed within the last five (5) years, which include: name, address, contact person and phone number for the agency, length of time services were provided, staff assigned to each project by your firm, and a description of the services provided. All submitted materials shall become the property of the City of Beaumont.

We have provided our references in the appendix.

K. Firm Experience/Qualifications:

A list of the five (5), most recent municipalities your firm has contracted with.

Page 1936 of 3058 ends

sedgwicle I 24

Each description shall include:
• The name of the client and a contact name, address, and telephone number. • The scope of the TPAs' services.
• The month and year the services started and the month and year they were completed. • The total value of the services provided.
• The key personnel involved and the sub -consultants employed, if necessary.

Our most recent municipal contracts include University of California, San Francisco; Judicial Council of California, Administrative of the Courts; Metropolitan Transportation Authority (MTA); County of Maui; and City of Los Angeles. Due to the nature of public records, Sedgwick would prefer to offer the additional information if selected as a finalist.

L. List of all current/outstanding contracts, their status, and the completion date for each contract.

Due to the nature of public records, Sedgwick would prefer to offer this information if selected as a finalist.

M. Any other information that should be considered, such as any special services or customer service philosophy that define your firm's practice.

Following our stewardship meeting in August 2024, Sedgwick recommended several opportunities, including targeted claim review and training specific for the police department; schedule time to review client service instructions (CSI) with HR and the claims team to ensure they are appropriate for your current needs; and continued support for HR/risk management with all workers' compensation needs. We remain committed to these recommendations and look forward to continuing our partnership to drive even greater success together.

N. The firm will be required to have professional liability insurance including liability at a minimum of one million per occurrence, and two million in the aggregate, worker's compensation, and vehicle coverage including comprehensive and collision insurance naming the City of Beaumont, its officials, its employees, and agents as additional insured. The proposal shall state whether such insurances will be in force at time of contract execution.

Sedgwick agrees to comply with the above requirements, with the noted redlined edits included in our contract redlines table document in the appendix. Copies of our certificates of insurance are included in the appendix.

O. Cost proposal: Provide detailed cost of services in a separate sealed envelope.

Please see the cost proposal for an overview of our pricing.

Costing should include:
• Break down by a per unit rate (i.e. per box, per plan set, per binder, per drawer, per book, per trip, etc.). • Provide a table with estimates based on information outlined in this RFP. • Fixed prices, including out-of-pocket expenses, for all costs associated within the scope of this proposal, • Additional billable costs for non -specified tasks
• Total fees and expenses for the entire scope of the project • Any area which proposers believe should be included in the scope of work in this proposal, but which is not stipulated in this RFP, and identifies the costs associated with the services rendered. • Pricing should include total costs for 3 — initial year agreement and costs for potential renewal years including any Pricing adjustment factors.

Page 1937 of 3058 ends

sedgwicle I 25

Customized Program Design and Pricing Proposal 07.23.2025 Contract term: 07.01.2025 - 06.30.2031
'rogram design
Workers' compensation claims will be managed from the Rancho Cucamonga, CA, service area.

Summary of first -year fees
All fees assume the full deployment of Sedgwick managed care services.

Coverage line
Estimated frequency
Indemnity claim
Medical only claim
Incident only
Takeover indemnity claim (1)
Takeover medical only claim (1)
Annual flat fet
14 12
2 8
0 Sedgwick offers an annual flat fee pricing option based on the estimated claim volumes outlined above and the estimated required staffing to service those claims. Under this option, Sedgwick may propose additional charges if changes in program requirements or significant increase in claim volume impacts the staffing requirements of the unit.

Claims open at contract termination will either be transferred to the new administrator or handled by Sedgwick for an additional annual fee.

Claim fee estimates
Coverage line
Year 1
Year 2
Year 3
Year 4
Year 5
Workers' compensation flat fee
RMIS access (annual)
Total estimated first -year fees
Year 6
(Optional)
$44,195 $45,300 $46,433 $47,594 $48,784 $50,004
Waived Waived Waived Waived Waived Waived
$44,195 $45,300 $46,433 $47,594 $48,784 $50,004
Sedgwick Copyright © 2025

Page 1938 of 3058 ends

sedgwick

Items included in the quoted fees:
• RMIS access: viaOne® access for three (3) users, which provides a platform -independent, web -based suite of services for viewing and analyzing claims data • RMIS data outgoing feed: Monthly data file to a single carrier • Claims reporting: Sedgwick's pricing includes the use of telephonic reporting with a standard script through the Sedgwick call center and/or web reporting technology. Any other method (i.e., fax, email, land mail, customized telephonic script or additional services outside standard intake scope) will incur a fee of $0 per reported incident
• Claim reviews: Quarterly telephonic claim reviews with electronic status reports • Banking services, including report only/basic escheatment • Takeover claims
Additional bundled services and fees:
• Data conversion of additional sources of historical data for handling by Sedgwick • Conversion of imaged documents beyond Sedgwick's best practice standards will incur additional fees
• Subrogation and other recovery services (second injury funds and other special funds) will be charged 25% of recoveries
• Special investigation unit (SIU) services will be charged at prevailing rates • RMIS access: Additional viaOne access is $1,011 in year 1, $1,036 in year 2, and $1,062 in year 3 per user per year
• RMIS data feeds: Additional interface files are $239 per month for monthly file, $685 per month for weekly file or $2,063 per month for daily file
• RMIS: System interfaces or custom programming charged at $90 per hour • Loss control and ergonomic services will be charged at prevailing rates • MMSEA/SCHIP Medicare reporting fee: One-time $9 charge per claim for claims involving bodily injuries (workers' compensation, liability, no fault)
o Sedgwick will make reasonable efforts to obtain the relevant Medicare reporting data from the prior claim system during the implementation process. However, it is possible that closed claims will contain Medicare reporting errors that are not in compliance with Medicare rules and regulations and require additional Sedgwick resources to correct. There will be a charge of $15 per claim to correct these errors, and the fee will be invoiced in lump Sedgwick Copyright © 2025

Page 1939 of 3058 ends

sedgwick" 2

sum once all errors are identified
• Optional full escheatment services charged at $16,815 per year for claim -related payments issued from an escrow account in Sedgwick's tax ID. Under this process, Sedgwick reports uncashed claim - related payments to the appropriate state, according to each state's unclaimed property law • OSHA services: The foundation of our approach to OSHA -compliant recordkeeping services starts with our proprietary risk management information system, JURIS®. Sedgwick's OSHA recordkeeping service allows the customer to outsource the OSHA recordkeeping process to the maximum extent possible, relying on Sedgwick professionals whose sole responsibility is OSHA recordkeeping. The system is able to generate standard reports, such as the OSHA 300, 300A, 301 and sharps logs, as well as other reports, such as DART and BLS surveys. Fees are $7,350 for annual administration, $515 per user per year and $35 per incident setup in viaOne OSHA. Other optional OSHA services available upon request include: Sharps, case uploads, ASTM classification/reporting, workplace violence reporting, SIF monitoring and reporting, OSHA liaison, BLS/electronic reporting, OSHA recordkeeping audit and other ad hoc requests
Sedgwick managed care
All claims administration fees and services contemplate the deployment of Sedgwick's managed care services for all bill review, case management and ancillary network services (i.e., durable medical equipment [DME], home health, diagnostics, etc.).

The rates shall increase each year over the expiring rates by the greater of 3.0% or the percentage increase as reported by the U.S. Department of Labor— Bureau of Labor Statistics ( http://www.bls.gov/cpi/home.htm) for the Consumer Price Index for All Urban Consumers (CPI -U) for the U.S. City Average, All Items, unadjusted, covering the prior 12 month period, published as of the month ending three months prior to the start of the each contract year.

Service
Rate
Medical bill review and other savings
State fee scheduling/usual, customary and
reasonable; state reporting $9.27 per bill
State EDI reporting in required states Add $1.70
All other savings (PPO, OON, other savings) 30% of savings California statewide medical provider
network (MPN) (all California bills) $6.83 flat rate per bill Telephonic clinical services
Telephonic case management (TCM): Evaluation and recommendation: $165 • Telephonic nurse case manager 1— 30 days: $420
• Surgery nurse case manager Every 30 days thereafter: $335 Sedgwick Copyright © 2025

Page 1940 of 3058 ends

sedgwick'" 3

Service
Behavioral health specialist (BHS)
Physical therapy case management
Customized nurse services (e.g., assessment
nurse)
Rate
$118 per hour (1)
1— 30 days: $420
Every 30 days thereafter: $335
$118 per hour (1)
Utilization review (UR) and physician advisor
UR and pharmacy UR
Physician advisor/peer review
Physician review of records
Physician advisor appeal
Complex pharmacy management
Medical FCM: Full field
Catastrophic/crisis care management
International medical FCM
$140 per review
$275 per review
$305 per hour
$380 per review
Pharmacy nurse management/pain coaching: $128
per hour
Physician and PharmD management (as needed):
$305 per hour
Field case management (FCM)
$118 per hour, plus direct expenses (1)(2)
Urgent/catastrophic case management: $190 per
hour (1)
$190 per hour (1)
Countries near US and US Territory (Canada,
Mexico, Puerto Rico, Bahamas, USVI): $180 per
hour
All other countries: $208 per hour
FCM tasks:

One visit clinical assessment $785 flat fee
- Limited assignment task $118 per hour (1)
- Specialty task services: life care plan,
expert testimony, customized services $185 per hour
Vocational and work placement solutions
Transitional work placement (at not -for-
profit)
Return to work (RTW) specialist
Workplace consultation — program/policy
design and planning
Vocational — full FCM
$955 for placement or no-show
$118 per hour (1)
Telephonic RTW
$225 per hour, plus direct expenses
$118 per hour, plus direct expenses (1)(2)
Sedgwick Copyright © 2025

Page 1941 of 3058 ends

sedgwick"
4 Service
Vocational field tasks:

Vocational assessment/testing
- Labor market survey
- Automated transferable skills analysis
- Job analysis or ergonomic evaluation
Clinical consultation services
Standard (24/7/365 access to nurse): $100 per call
Premium (standard plus option of blended intake
or limited customization): $118 per call
Clinical consultation Advanced (premium plus option to customize workflows): $130 per call*
*Level of customization may warrant additional
fees
Sedgwick administrative services
28% of the below fee schedule savings subject to
Lien resolution minimum fee of $140 and cap of $7,725 per lien Expert witness testimony or hearing representation
charged at $135 per hour plus direct expenses
Electronic versions of panel cards will be provided
Mandatory state panel postings at no additional cost. Physical panel cards will incur pass -through costs at current printing and mailing
rates to be paid by the client.

Sedgwick standard medical card No charge; customization starts at $3,710 (1) Alaska, California, Hawaii, New York at $150 per hour; CAT at $205 per hour (2) Minnesota QRC Med/Voc at will be charged at the prevailing state fee schedule Rate
$1,040 flat fee
$700 flat fee
$390 flat fee
$865 flat fee
Special Investigation Unit (SIU) service fees
SIU fees are detailed below. Fees may change from time to time upon sixty (60) days written notice:

Service name
Social media investigation
Smart plus investigation
Comprehensive background
Canvassing services
Skip tracing/individual locate
Price
Research services
$325
$550
$625
$250
$315
Sedgwick Copyright © 2025

Page 1942 of 3058 ends

sedgwick'" 5

Service name
Asset check
Criminal and civil check
Records request
Social media monitoring
Other research services
Surveillance
Unmanned surveillance
Video copies
Alive and well check - in person
Alive and well check - virtual
interview
Activity check

AOE/COE
Recorded statement
Scene investigation
Trial/deposition
International investigations
Other field services
Suspect file review
Price
$225
$135 plus cost of records
Additional counties or names: $75 (per county or name)
$100 plus cost of records
$25 per week of monitoring
Quote upon request
Surveillance services
$ 100 per hour (portal to portal): All states
Mileage charged at IRS standard mileage rate
Additional expenses to hourly rate:

Report writing (up to 1/2 hour per day at standard
surveillance rates)
Pre -surveillance investigation: $85 License plate searches:
$20 (per search post pre -surveillance)
Vehicle Sightings Report (license plate recognition) - $75 $850 per day (three-day minimum)
Deployment and extraction of stationary device:
$100 per hour: All states
Mileage charged at IRS standard mileage rate
$100 per additional copy plus shipping
Field services
$450: All states
$125
$475: All states
$100 per hour (portal to portal): All states
Mileage charged at IRS standard mileage rate
Quote upon request
Quote upon request
Assessment services
$125 per hour
Sedgwick Copyright © 2025

Page 1943 of 3058 ends

sedgwick'" 6

Service name
Fraud investigation (includes
state reporting)
Red flag analytics review
Other assessment services
Price
$125 per hour
$125 per hour
Quote upon request
Subrogation and Other Recoveries:

Sedgwick shall pursue recoveries for subrogation, second injury funds, and other applicable special funds such as supplemental state funds, COLA reimbursements, retro funds, and other similar funds. Client shall pay Sedgwick twenty-five percent (25%) of the recovery received. All fees and expenses, including attorneys' fees or investigations, for pursuit of any recovery shall be charged to the appropriate Qualified Claim file as an allocated loss adjustment expense.

As determined by the parties, Sedgwick shall either:
a. Deposit the recovery funds and issue payment from Sedgwick's accounts Payable system to Client for the net recovery (less Sedgwick's fee). Sedgwick will deposit the net recovery check into the Client's loss -funding account or forward it directly to the Client. b. Deposit the recovery funds into the Client's loss -funding account and Sedgwick shall receive payment from the claim file or directly from Client.

Definitions, terms and conditions
Definitions
Life of claim: Sedgwick will provide services to client on a life of claim basis. Sedgwick will continue to process client's claims remaining open at the expiration or termination of the agreement, if any, provided that client shall continue to make adequate funds available for payment of such claims, including any allocated loss adjustment expenses and pay information technology fees, fees for data files, program management fees and any other applicable fees all of which may increase each year during the life of the claims.

Indemnity claim: An indemnity claim shall mean any workers' compensation qualified claim as follows:
• For which a payment is made or reserve is posted under the indemnity portion (i.e., not medical and not expense) of the qualified claim or there is time lost from work • For which an application for adjudication of a claim or hearing notice is received or otherwise involves litigation or communication from or to a petitioner's attorney • Where incurred medical costs exceed $3,000
• That is denied
Sedgwick Copyright © 2025

Page 1944 of 3058 ends

sedgwick" 7

• For which the City requests to be investigated or classified as an indemnity claim • That Sedgwick determines additional investigation is necessary to determine compensability, to comply with applicable laws or both
• For which subrogation is investigated or pursued
• That is open longer than 12 months
Medical only claim: A medical only claim is defined as any claim that is not an indemnity claim or an incident only claim. For the Texas non -subscriber portion of the program, a medical only claim is defined as any Texas non -subscriber employee injury benefit plan qualified claim that is not an indemnity claim or an incident only.

Incident only: Incident only claims are claims reported by the City that require no payment or activity other than generating a record in the claims administration system. These claims carry no reserves, and no contacts are made by Sedgwick. If contacts are required on incident only cases, additional fees will apply.

Allocated expenses: The claim fees agreed to shall include all costs incurred by Sedgwick in handling claims submitted except those costs normally referred to as "allocated expenses." These expenses will be billed to the individual claim file when incurred.

In some cases, Sedgwick engages subcontractors to assist us in providing services. In order to hold down the cost to our clients, Sedgwick may have arrangements with these subcontractors to cover expenses for certain activities, including but not limited to development of integrated data systems, account management, quality oversight and ongoing projects that improve penetration and efficiency for our examiners. These cooperative service agreements are not transactional -based and are not dependent on any activity generated by the City. In fact, the flat cooperative service fees remain the same regardless of whether the City uses the vendors on your program or not.

Allocated expenses include but are not limited to:
• Attorney fees and costs
• Hearing representation in lieu of attorney fees, including preparation, travel expenses, attendance and system notations
• Court costs and appeal bonds
• Cost of providing rehabilitation services
• Cost of surveillance activities and other outside investigations • Cost of expert witnesses, accident reconstruction specialists or any other specialist necessary for the investigation and/or defense of a claim
• Cost incurred to obtain statements, photographs, records, transcripts, depositions, digital call recordings, etc.

Page 1945 of 3058 ends

sedgwick" 8

• Cost of inspections, appraisals, repair management, rental/replacement, etc. • Cost of independent medical exam
• Cost of medical bill review, PPO, managed care and other similar programs • Cost of medical experts, peer review, UR, case management, pre -certifications and medical necessity evaluations
• Cost of translation services
• Medicare reporting and compliance services fees and costs • Index filings
• Cost of vocational evaluations, vocational services, training or other vocational activities • Cost of outside assistance necessary to prepare or protect the City's subrogation right or Special Disability Trust Fund claim
• Expenses for travel to depositions, mediations, arbitrations, hearings or other legal proceedings at the City's request or as required by law or rule of a federal, state or local agency Terms and conditions
Quotation expiration: All pricing quoted is valid for a period of 180 days from submission unless a written extension is requested.

Takeover of existing claims: Takeover claims are anticipated for workers' compensation and liability, and pricing and parameters for such takeover have been included in the pricing section of this document.

Payment terms: All one-time fees are billed upon notification of award. All recurring fees such as claims service and information technology fees are billed on a quarterly basis in advance based on annual estimates. The estimates are subject to audit 30 days after the conclusion of each contract year. All invoices are payable upon receipt
Taxes: All applicable taxes will be added to the service fees where this is required. Sedgwick may be required, in some jurisdictions, to collect and remit sales tax on the services provided to the City. If billed, the taxes will be stated separately on the invoice. If Sedgwick is provided an exemption certificate, in good faith, tax will not be charged. In the event that a jurisdiction invalidates or does not accept the exemption certificate, Sedgwick will not be liable for any penalty or interest that may be charged.

Early termination: Should the City terminate for convenience within the first 12 months of the agreement, the City shall pay Sedgwick fees equal to three months of the service fees. Should the City terminate during the second 12 months, the City shall pay fees equal to two months of the service fees. Termination fees are payable within 30 days of the date of notice of such termination.

Page 1946 of 3058 ends

sedgwick" 9

administration.

Submission of all applicable claims: The fees quoted are based on the assumption that the City will forward to Sedgwick all claims arising during the applicable time period in a covered jurisdiction. In the event that the City does not forward all such claims to Sedgwick, we reserve the right to adjust the fees accordingly.

Page 1947 of 3058 ends

sedgwick'" 10

SERVICE AGREEMENT FOR ADMINISTRATION OF

A CLAIMS PROGRAM
This Agreement is entered into effective the _ day of , 20_ ("Effective Date"), by and between Sedgwick Claims Management Services, Inc. ("Sedgwick") and ("Client").

RECITALS
Choose ALTERNATIVE 1, 2, OR 3
ALTERNATIVE 1- use for self -insured -only programs

1. Client self -insures its claims administration program for professional liability, general liability, automobile liability, property liability, and workers' compensation risks and desires to have Sedgwick provide the specific services set forth below in connection with such self -insured program (the "Program," as defined on Exhibit A, attached hereto).

2. Sedgwick is willing to provide such services on the terms and conditions hereinafter stated.

ALTERNATIVE 2 - use for insured -only programs

1. Client insures its claims administration program for professional liability, general liability, automobile liability, property liability, and workers' compensation risks and desires to have Sedgwick provide the specific services set forth below in connection with such insured program (the "Program," as defined on Exhibit A, attached hereto), and Client's carrier(s) ("Insurer") has agreed that these claims services will be provided by Sedgwick, subject to the terms of a separate written agreement between Sedgwick and Insurer.

2. Sedgwick is willing to provide such services on the terms and conditions hereinafter stated.

ALTERNATIVE 3 - use for programs having both insured and self -insured portions

1. Client self -insures and insures portions of its claims administration program for professional liability, general liability, automobile liability, property liability, and workers' compensation risks and desires to have Sedgwick provide the specific services set forth below in connection with such insured program with Client's carrier(s) ("Insurer") and self -insured program (collectively referred to as the "Program," as defined on Exhibit A, attached hereto). For the insured portion, Insurer has agreed that these claims services will be provided by Sedgwick, subject to the terms of a separate written agreement between Sedgwick and Insurer.

2. Sedgwick is willing to provide such services on the terms and conditions hereinafter c/xxxxx

Page 1948 of 3058 ends

stated.

AGREEMENT

1. Services to Be Performed by Sedgwick: Sedgwick agrees to perform the following services:

A. With regard to Claims Administration, Sedgwick shall:
(1) During the term of this Agreement, review all claim and loss reports received from Client that are required to be reviewed under the Program (a "Qualified Claim"), and process each such claim or loss report in accordance with applicable statutory and administrative regulations; (2) Conduct an investigation of each Qualified Claim to the extent deemed necessary by Sedgwick in the performance of its obligations hereunder; (3)
Arrange for independent investigators, appraisers, or medical or other experts to the extent deemed necessary by Sedgwick in connection with processing any Qualified Claim;
(4) Pay benefits, expenses, and adjust or settle each Qualified Claim, but only if in the sole judgment of Sedgwick such payment would be prudent for Client and the anticipated amount thereof does not exceed the limit specified in accordance with paragraphs 2F and 2G below, or as Client specifically approves or directs such action in writing; (5)
Maintain a file for each Qualified Claim which shall be the property of Client (for self -insured claims) or Insurer (for insured claims) and which shall be available for review by Client or Insurer during normal business hours upon three (3) days prior written notice;
(6) Notify Client's first layer of insurance coverage for each Qualified Claim where the values may exceed Client's retention, providing such insurer with necessary information on the current status of those claims, unless relieved of this obligation by Client pursuant to paragraph 2A; (7)
Assist Client's counsel, if requested, in preparing the defense of litigated cases arising out of Qualified Claims, negotiating settlements and pursuing subrogation or contribution actions;
(8) Maintain a current estimate of the expected total cost of each Qualified Claim which is based on facts known at the estimation date, but is not trended or actuarially developed;
(9)
Use a proprietary data management system to furnish to Client agreed C/XXXXX 2

Page 1949 of 3058 ends

upon loss and information reports. These reports shall contain information such as each Qualified Claim date, condensed claim description, payments made, estimated future costs and total expected costs of all Qualified Claims, as well as summary and other data deemed relevant by Sedgwick, but not IBNR (incurred but not reported) claims or actuarially developed loss values; and
(10) Choose ALTERNATIVE 1 or 2
ALTERNATIVE 1- use for bank accounts established by Sedgwick Annually report federal, state and local 1099 information under Sedgwick's tax identification number(s) for vendor payments issued by Sedgwick on bank accounts established and managed by Sedgwick on behalf of Client, but not for payment authorizations when Sedgwick does not issue the checks. Client recognizes and agrees that any earnings credits realized on the account(s) will be utilized to offset banking analysis fees related to any Sedgwick managed claim fund account. To the extent that earnings credits do not off -set all bank account fees, Client shall pay the additional bank account fees due.

ALTERNATIVE 2 - use for Client -owned bank accounts on which Sedgwick is authorized to write checks
Annually report federal, state and local 1099 information under Client's tax identification number(s), when Client has provided all required IRS authorizations, for vendor payments issued by Sedgwick on bank accounts owned by Client, but not for payment authorizations when Sedgwick does not issue the checks.

The following sections should only be used when the referenced services are selected, and in such instances the appropriate service schedules, if any, must also be attached.

B. Sedgwick will provide managed care services as set forth in the attached Managed Care Service Schedule.

C. Sedgwick will provide the call center services as set forth in the attached Call Center Service Schedule.

D. Sedgwick shall provide the special investigative unit (SIU) services set forth in the attached SIU Service Schedule.

E. Sedgwick shall provide Client with the capability to perform searches in a database which contains information regarding Client's Qualified Claims as set forth in the attached OSHA Database Service Schedule.

F. Sedgwick will provide the Ohio Hearing Representative services as set forth in the attached Ohio Hearing Representative Service Schedule.

C/XXXXX 3

Page 1950 of 3058 ends

G. Sedgwick will provide the MMSEA/SCHIP Reporting services as set forth in the Medicare Reporting Services Schedule attached hereto.

H. Sedgwick will provide the clinical consultation services as set forth in the Clinical Consultation Services Schedule attached hereto.

I. Sedgwick will provide the Washington state oversight services as set forth in the Washington State Oversight Services Schedule attached hereto.

J. Sedgwick will provide the Washington state enhanced legal support services as set forth in the Washington State Enhanced Legal Support Services Schedule attached hereto.

K. Sedgwick will provide the unemployment compensation services as set forth in the attached Unemployment Compensation Services Schedule.

L. Sedgwick will provide the loss control services set forth in the attached Loss Control Services Schedule.

M. Sedgwick will provide the ergonomic services set forth in the attached Ergonomic Services Schedule.

2. Obligations of Client:

A. Client shall provide Sedgwick in a timely manner with its first layer of insurance coverage for the policy years necessary for proper notification of applicable Qualified Claims to such first layer insurers by Sedgwick. Should Client fail to provide this information, Sedgwick shall be relieved of any such reporting obligations.

B. Client shall pay to Sedgwick a service fee which, in the initial term of this Agreement, shall be computed and payable as shown in Exhibit B, attached hereto and made a part of this Agreement, plus applicable taxes, if any. Client shall reimburse Sedgwick for the reasonable and customary out-of-pocket expenses incurred by Sedgwick such as travel expenses in conjunction with the services being performed. If Client, in its sole discretion, requests Sedgwick to perform services outside of the scope of work listed herein, then Client shall compensate Sedgwick for such services at Sedgwick's then applicable standard rates for such service.

C. Client shall at all times provide funds adequate for the payment of Qualified Claims, including allocated loss adjustment expenses. For purposes of this Agreement, allocated loss adjustment expenses shall mean all costs, charges or expenses incurred by Sedgwick, its agents or its employees which are properly chargeable to a Qualified Claim including, without limitation, court costs; fees C/XXXXX 4

Page 1951 of 3058 ends

and expenses of attorneys; appeal bonds; independent adjusters; investigators; appraisers; vocational services, training or evaluation; medical expenses and medical cost containment service providers (including those provided by Sedgwick, if applicable); durable medical equipment; rehabilitation services; experts and witnesses; fees for obtaining statements, diagrams, reports, records, documents, transcripts, depositions, Medicare reporting and compliance services fees and costs, index bureau filings and re -filings, and photographs; cost of file retrieval; cost associated with the pursuit of subrogation and/or Special Injury Fund claims; hearing representation services; and travel fees and expenses incurred at Client's request. Sedgwick may, but need not, elect to utilize its own staff or affiliated entities to perform these services. Associated fees and costs will be charged as allocated loss adjustment expenses.

D. Client shall deposit funds for payment of Qualified Claims, including allocated loss adjustment expenses, in a bank account or accounts (the "Claim Account").

Client shall be responsible for providing sufficient funds to enable Sedgwick to write checks on the Claim Account for use in the payment of Client's Qualified Claims. Such funds shall be provided by electronic funds transfer at the inception of the Program and replenished by electronic funds transfer promptly from time to time thereafter. The amount of the escrow required for the Claim Account may be modified in the following instances:
(1) There is a substantial increase or decrease in claims payment activity; (2) Client fails to fund the Claim Account within the agreed upon time period; (3) There is a change in funding cycle;
(4) The escrow is recalculated at Client's request; or
(5) The escrow amount is automatically recalculated on an annual basis.

E. It is expressly understood that Sedgwick shall not be required to advance its own funds to pay losses or allocated loss adjustment expenses for any Qualified Claim hereunder. It is further understood that if Client fails to promptly provide funds sufficient to allow required payments to be made timely, or if funds previously provided by or on behalf of Client are seized, frozen or otherwise unavailable to Sedgwick to allow required payments to be made timely on account of the bankruptcy, receivership, or other insolvency proceeding of Client [or Insurer, in cases where Insurer funds claim account], Sedgwick will have no obligation to perform any claims payments services during any period of underfunding.

F. Sedgwick shall have full discretion to make an individual payment of an allocated loss adjustment expense in an amount up to $xxx on any Qualified Claim and shall not need the approval of Client to make such payments. This amount may be changed at any time by Client upon ten (10) days prior written notice to C/XXXXX 5

Page 1952 of 3058 ends

Sedgwick. It is agreed that Sedgwick shall have full authority and control in all matters pertaining to the payment, processing, investigation and administration of Qualified Claims within the limit established by this paragraph.

G. Sedgwick shall have full discretion to redeem, compromise or settle any Qualified Claim for an amount not to exceed $xxx and shall not need the approval of Client to consummate such redemption, compromise or settlement. This amount may be changed at any time by Client upon ten (10) days prior written notice to Sedgwick. Failure of Sedgwick to settle a Qualified Claim within such limit, however, shall not subject Sedgwick to any liability whatsoever in the event of an adverse judgment entered by any court or the settlement of such Qualified Claim for an amount in excess of such limit.

H. Should Client fail to make timely payments of any service fees due Sedgwick or should Client in any other way breach a material term of this Agreement, Sedgwick shall then have the right to refuse to perform any further services or terminate this Agreement. If Sedgwick elects to exercise its rights under this paragraph, in addition to all other legal or equitable remedies, Sedgwick will have the right to its full minimum fee, if any, as well as any other fees for which Sedgwick may be eligible, and may collect such fees from any loss fund that may be in Sedgwick's care, custody and control.

Upon receipt of any form of notice advising of facts which are or may be a Qualified Claim, Client shall promptly assign the Qualified Claim to Sedgwick for management. Client shall promptly provide Sedgwick with such information as Sedgwick may require, including, but not limited to, any copy of documents describing its Program, including but not limited to documents submitted to any legal, administrative or regulatory authority for approval of the Program, as well as incident reports and related information in Client's possession and otherwise cooperate with Sedgwick in carrying out Sedgwick's tasks hereunder.

3. Discontinuance of Operations:

Should Client discontinue its business for any reason, all fees due Sedgwick shall be paid immediately. Sedgwick shall have no further obligation to continue to provide the services called for in this Agreement, and, at Sedgwick's option, this Agreement shall be considered terminated as of the date Client ceases operations or is subject to a bankruptcy or receivership filing, either voluntarily or involuntarily.

4. Covered Jurisdictions:

This Agreement shall cover all operations of Client in the state(s) of

5. Term of Agreement and Termination:

C/XXXXX 6

Page 1953 of 3058 ends

A. The term of this Agreement shall be for the period commencing on , 20_ and ending on , 20_.

B. This Agreement may be terminated by either party at any time, provided that at least sixty (60) days prior written notice of the effective date of termination is given to the other party.

Choose ALTERNATIVE 1 or 2
C. ALTERNATIVE 1- use life of contract programs
Sedgwick is providing services to Client on a life of contract basis. If requested by Client, Sedgwick will continue to process Client's Qualified Claims remaining open at the expiration or termination of this Agreement, if any, provided that Client shall continue to make adequate funds available for the payment of such Qualified Claims, including any allocated loss adjustment expenses and pay information technology fees, fees for encrypted data files, program management fees, and any other applicable fees. This provision shall not apply unless the additional fee for this service shall have been negotiated and agreed to in writing prior to the effective date of termination.

C. ALTERNATIVE 2 - use life of claim programs
Sedgwick is providing services to Client on a life of claim basis. Sedgwick will continue to process Client's Qualified Claims remaining open at the expiration or termination of this Agreement, if any, provided that Client shall continue to make adequate funds available for the payment of such Qualified Claims, including any allocated loss adjustment expenses and pay information technology fees, fees for encrypted data files, program management fees, and any other applicable fees all of which may increase each year during the life of the claims.

D. If Sedgwick is required by Insurer to adjust Client's insured Qualified Claims after expiration or termination of this Agreement, Client shall continue to fund claims payments and allocated loss adjustment expenses as otherwise provided herein, and Client shall pay Sedgwick a mutually agreed upon fee, plus the prevailing fee for any information technology or encrypted data files required by Insurer.

E. If Insurer fails to pay Sedgwick service fees which it is obligated to pay, then Sedgwick may present all unpaid invoices to Client and Client shall pay such service fees within thirty (30) days of presentment. If Insurer is responsible for funding the Claim Account and fails to adequately do so, then Client shall immediately and adequately fund the Claim Account upon notice from Sedgwick of the deficiency.

F. Upon expiration or termination of this Agreement, Sedgwick shall deliver, at Client's sole cost, the hard copy and imaged files that Sedgwick has maintained for Qualified Claims (but not including any computer hardware, firmware, C/XXXXX 7

Page 1954 of 3058 ends

software or other proprietary information of Sedgwick), except those Sedgwick has agreed in writing to continue to process or files that are owned by Insurer; provided, however, that Sedgwick or its agents, employees or attorneys shall continue to be entitled to inspect all such files and make copies or extracts there from. Imaged files shall be transferred to Client in the same electronic format.

Client shall pay Sedgwick a one-time payment for transition of Qualified Claims as consideration for Sedgwick's associated costs, which costs may include, but are not limited to, carrier coordination, coordination with the new third party administrator, if any, necessary mailings and notifications, catalog and transfer of hard inventory, digital recording retrieval & transfer, advanced TTD payments, multiple loss runs, payment history for advanced TTD, claim hot list, banking reconciliation, validation of billings paid in field prior to transfer, field examiners validation and release of pending payments, client services & parameters group time (B2B interface shutoff, intake shutoff, CSI shutdown), as well as technology items such as preliminary and final data extract, image extract, bill review extract, MMSEA extract and hierarchy structure extract. If Client does not agree to accept such files, they will be retained or destroyed at Sedgwick's option and Client shall have no recourse against Sedgwick for failure to retain them.

G. Should Client terminate the Agreement for convenience within the first twelve months of the Agreement, the Client shall pay Sedgwick fees equal to three months of the service fees. Should Client terminate for convenience within the second twelve months of the Agreement, the Client shall pay Sedgwick fees equal to two months of the service fees. Termination fees are payable within thirty (30) days of the date of notice of such termination.

6. Professional Advice:

Nothing in this Agreement is intended to require Sedgwick to engage in the practice of law, and services provided shall not be considered legal, tax or accounting advice, and Sedgwick shall in no event give, or be required to give, any legal opinion or provide any legal, tax or accounting representation to Client. Client acknowledges that Sedgwick has been engaged to provide certain services and that it is not the intent of the parties that Sedgwick assume any insurance risk. Sedgwick shall not act as an insurer for Client, and this Agreement shall not be construed as an insurance policy; it being understood that Sedgwick is in no event financially responsible for payment or satisfaction of Client's claims, lawsuits, or any form of cause of action against Client from Sedgwick funds.

7. Indemnification:

A. Sedgwick shall be fully responsible for exercising reasonable care at all times in the performance of its obligations hereunder. However, if Sedgwick is named as a party to any litigation or proceeding, or is the subject of any claim or demand because of its actions on behalf of Client, Client agrees to indemnify, defend, and hold Sedgwick, its officers, directors, employees and agents harmless from any and all losses, damages, costs, judgments and expenses (including attorneys' fees C/XXXXX 8

Page 1955 of 3058 ends

and costs) with respect to any such litigation, proceeding, claim or demand, unless and until a finding is entered to the effect that Sedgwick failed to exercise such reasonable care in the performance of its obligations hereunder. Sedgwick agrees to indemnify, hold harmless and defend Client, its directors, officers, employees and agents from and against any and all liabilities, loss or damage that they may suffer as a result of any claim, demand, cost or judgment against them arising out of the negligence or willful misconduct of Sedgwick in connection with its performance under this Agreement, provided that such acts or omissions do not arise out of or relate to oral or written instructions, procedures or forms supplied by Client or to Client's internal management or adjustment of its claims. Each party agrees to keep the other fully informed of any matter for which it is defending, holding harmless or indemnifying the other party. Each party reserves the right to appoint its own counsel, at its own expense, regarding any matter defended hereunder and to approve any settlements of same.

B. Notwithstanding anything to the contrary contained in the above paragraph, it is understood and agreed that if Client, directly or through a subcontractor or vendor of Client's choosing, including any prior subcontractor, third party administrator, or vendor ("Client Subcontractor"), retains administration of a claim or performs or performed any services for a claim Sedgwick administers, or if Client otherwise directs the administration of a claim, Client will indemnify, defend, and hold Sedgwick, its officers, directors, employees and agents harmless from the losses, damages, costs, judgments and expenses (including attorneys' fees and costs) as a result of any litigation or proceeding, fines, penalties, revocation of license, or any other state regulatory investigation or action arising against Sedgwick related to the acts or omissions of Client or the Client Subcontractor.

C. If Client's access to claim data includes the ability to add and modify data, Sedgwick shall not be required to verify, or otherwise be responsible for, the accuracy of data added or modified by Client. Client shall indemnify, defend and hold Sedgwick, its officers, directors, employees and agents harmless for any loss, cost (including attorneys' fees), claim or judgment which is attributable to Client's input or modification of data.

D. The parties agree that in no event shall Sedgwick's liability under this Agreement exceed the service fees paid to Sedgwick for the six (6) months immediately prior to the event from which the claim or matter arises. IN NO EVENT SHALL

SEDGWICK BE LIABLE FOR ANY LOSS OR DAMAGE TO REVENUES,

PROFITS OR GOODWILL OR OTHER SPECIAL, INDIRECT, INCIDENTAL

OR CONSEQUENTIAL DAMAGES OF ANY KIND RESULTING FROM ITS

PERFORMANCE OR FAILURE TO PERFORM UNDER THIS AGREEMENT

OR RESULTING FROM THE FURNISHING, PERFORMANCE, USE OR

LOSS OF USE OF ANY SOFTWARE, SYSTEM, SITE, OR DELIVERABLE

PROVIDED TO CLIENT HEREUNDER, INCLUDING WITHOUT

LIMITATION ANY INTERRUPTION OF BUSINESS, OR FOR ANY

DAMAGES OR FINES ARISING FROM ANY ACTS OR OMISSIONS OF
C/XXXXX 9

Page 1956 of 3058 ends

CLIENT SUBCONTRACTOR, EVEN IF SEDGWICK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE.

E. Notwithstanding the foregoing, an indemnifying party will not settle a claim without the indemnified party's written consent, unless such settlement results in (i) a full release of all parties, (ii) no liability to the indemnified party or future obligation of the indemnified party, and (iii) no admission of wrongdoing by Client or Sedgwick.

F. The provisions of this section shall survive the expiration or termination of the Agreement.

8. Network Security/Confidentiality:

A. If Client's access to the data management system requires a network connection (the "Network Connection") between Client's network and Sedgwick's network, Sedgwick and Client shall take reasonable and customary precautions to prevent unauthorized access to or use of the Network Connection through their respective networks. The parties agree, however, that each party is responsible for the security of its own network. Neither party shall be liable to the other for unauthorized access to the Network Connection, so long as the accused party shall have taken reasonable and customary precautions to prevent such unauthorized access.

B. Whether or not marked as such, and without regard to the media in which such records are stored, "Confidential Information" shall mean:
(1) any business or technical information pertaining to the parties herein or to third parties, which is furnished, disclosed or made available by one party to the other, including, without limitation, specifications, prototypes, software, marketing plans, financial data and personnel statistics; and (2) Medical records, reports and information, as well as any other non- medical records, reports or information pertaining to claimants under the Program.

C. Each party agrees to protect Confidential Information received hereunder with the same degree of care that such party exercises with its own confidential information (but in no event less than reasonable care) and to limit access and disclosure of Confidential Information only to their employees, agents and contractors who have a "need to know," and who agree to maintain confidentiality in accordance with this section. Notwithstanding the foregoing, Client agrees to permit Sedgwick to compile and disseminate aggregate, de -identified information for auditing, compliance, internal assessments, process improvement and related analytics, benchmarking purposes or forward to a data collection facility data for Qualified Claims handled pursuant to this Agreement, provided that such facility C/xxxxx 1O

Page 1957 of 3058 ends

agrees in writing to keep Client's data confidential. Further, Sedgwick shall be entitled, without violation of this section and without the prior consent of Client, to retain claims administration information and to forward claims administration information to government agencies to the extent required by law for the proper performance of the services set forth herein.

D. The provisions of this section shall survive the expiration or termination of the Agreement.

9. Notices:

Any notice required to be given under this Agreement shall be sent by certified or registered mail, postage prepaid, to General Counsel - Americas, Sedgwick Claims Management Services, Inc., 8125 Sedgwick Way, Memphis, TN 38125, in the case of Sedgwick, and to , in the case of Client.

10. Assignment:

The Client may not assign its rights or obligations under this Agreement. Sedgwick may assign or subcontract part of the services required hereunder and may at its discretion delegate to a subsidiary or affiliate such of its duties as it deems appropriate, provided that such subcontracting or delegation shall not relieve Sedgwick of any of its obligations hereunder.

11. Entire Agreement and Modification or Amendment:

This Agreement and its attached exhibits and schedules represents the full and final understanding of the parties with respect to the subject matter described herein and supersedes any and all prior agreements or understandings, written or oral, express or implied. This Agreement may be modified or amended only by a written statement signed by both parties.

12. Applicable Law:

The terms and conditions of this Agreement shall be governed by the laws of the State of Tennessee without regard to conflicts of law principles. If any dispute or claim arises hereunder that the parties are not able to resolve amicably, the parties agree and stipulate that such litigation shall be resolved in the State of Tennessee, and the parties irrevocably submit to the exclusive venue and jurisdiction of such court for the purpose of any such action or proceeding. In the event of a dispute between the parties resulting in litigation, the prevailing party may, in addition to any other relief obtained, recover its court costs and reasonable attorney's fees.

13. State Specific Requirements:

A. With respect to Kentucky self -insured workers' compensation claims, in order to C/xxxxx 11

Page 1958 of 3058 ends

comply with the requirements set forth in administrative regulation 803 KAR 25:021 Sec 3 (6), Sedgwick agrees to adjust any and all claims for a period of sixty (60) days following an order from the commissioner finding the self -insured employer in default unless a substitute service organization has been procured.

B. With respect to Michigan self -insured workers compensation claims, it is agreed pursuant to the State of Michigan Workers Compensation Act of 1969 and Administrative Rules (R 408.43m (7)) that Sedgwick will administer all claims with dates of injury or disease within the contract term until their conclusion unless the service company is relieved of that responsibility in writing by the bureau. In the event that Sedgwick is required to administer claims pursuant to this section, Client shall pay Sedgwick's standard fees for any such additional service.

C. With respect to Tennessee self -insured, workers' compensation claims, the parties agree that, as applicable to either or both parties, all Tennessee Insurance Laws, Regulations and lawful orders of the Commissioner shall be followed and fully adhered to, including, but not limited to, Tenn. Code Ann. § 50-6-405 and Tenn.

Comp. R. & Regs., 0780-1-81.

D. With respect to Workers' Compensation Claims administered within the State of Arkansas, the parties agree as follows, in regards to insured programs:

For purposes of this section, "Insurer" shall refer to Client's insurance carrier. "Department" shall refer to the Arkansas Insurance Depai liiient. "Employer" shall refer to Client.

1. Sedgwick is acting on behalf of the Insurer for the payment of claims both within and in excess of the deductible.

2. Sedgwick shall periodically provide accurate and timely data to the Insurer on all claims paid from "first dollar" to enable the Insurer to report the data to the appropriate regulatory authority or advisory or rating organization, and to ensure that the calculation of the Employer's experience rating reflects all such claims.

3. To ensure that claims are paid without interruption, the Insurer shall immediately replenish the loss escrow account if it is not replenished timely by the Employer and shall bill the Employer for such amount. The Employer's failure to reimburse the Insurer according to the terms of the insurance policy shall be reason to cancel the policy for non-payment of premium.

4. The Employer must report all claims to Sedgwick and shall not pay directly, or procure payment indirectly, any amounts within the deductible outside of the funding arrangement provided for in the contract between Sedgwick and the Insurer. Although the Employer has the right to be informed of potential settlements under Ark. Code Ann. §23-63-112, the Employer has no right to C/XXXXX 12

Page 1959 of 3058 ends

direct whether a claim is paid or denied nor the amount to be paid by the Insurer or Sedgwick.

5. Sedgwick will notify injured workers at the onset of a claim that the claim is being adjusted and, if appropriate, will be paid on behalf of the Insurer to avoid any possible confusion on the part of the claimant that the Employer is a self insured entity.

6. Sedgwick is not providing and shall not charge the Employer for safety services required by the Arkansas Workers' Compensation Commission.

7. No agreement between Sedgwick and an Insurer shall alter the terms of the insurance policy approved by the Department.

8. Sedgwick may charge and collect from the Employer for that portion of the unallocated loss adjustment expenses that are Sedgwick's service fees so long as those amounts are reported to the Insurer and the Insurer's filed rates provide a method for the reduction in its loss cost multiplier for Sedgwick collected unallocated loss adjust expenses.

9. Subject to the contractual right of the Employer to a refund of unearned premium or deposit as provided in the insurance policy, any funds paid into the loss escrow account are to be administered by Sedgwick in accordance with instruction from the Insurer.

10. The parties shall adhere to any other applicable provisions as set forth in Arkansas Insurance Department Revised Bulletin Number 10-2009 as issued August 6, 2010.

E. With respect to Qualified Claims that are processed in the State of Oregon, Client grants Sedgwick the power of attorney to act on the Client's behalf as required in Oregon Revised Statute 731.475. Furthermore, any services, including Care Management Services, that are set forth in this Agreement but are explicitly prohibited to be performed in the State of Oregon, will not be used by Client and references to such services contained herein shall be deemed to be stricken from this Agreement.

14. Force Maieure:

Neither party shall be liable to the other party or be deemed to have breached this Agreement for any failure or delay in the performance of all or any portion of its obligations under this Agreement if such failure or delay is due to any contingency beyond its reasonable control (a "force majeure"). Without limiting the generality of the foregoing, such contingency includes, but is not limited to, acts of God, fires, floods, pandemics, storms, earthquakes, riots, boycotts, strikes, lock -outs, acts of terror, wars and war operations, restraints of government, power or communication line failure or other C/XXXXX 13

Page 1960 of 3058 ends

circumstance beyond such party's reasonable control, or by reason of the bankruptcy, receivership or other insolvency proceeding of any bank or other financial institution where funds to pay losses and allocated loss adjustment expenses are held, or by reason of a judgment, ruling or order of any court or agency of competent jurisdiction or change of law or regulation subsequent to the execution of this Agreement. Both parties are obligated to provide reasonable back-up capability to avoid the potential interruptions described above. If a force majeure occurs, the party delayed or unable to perform shall give immediate notice to the other party. Client acknowledges that the foregoing provision does not apply to Client's obligation to make timely payment of any fees due Sedgwick, and that Sedgwick shall be entitled to all remedies set forth in this Agreement and those allowed by law for Client's failure to timely pay such fees.

15. Headings:

Headings herein are for convenience of reference only and shall not be considered in any interpretation of this Agreement.

16. Relationship of Parties; Expenses:

Nothing contained in this Agreement shall be deemed to create a partnership or joint venture between the parties hereto; the only relationship among the parties shall be that of independent parties to a contract. Except as expressly provided herein, no party hereto shall have authority or shall hold itself out as having authority to act for or bind any other party hereto. Except as expressly set forth herein, each party shall bear all expenses it may incur in connection with the execution, delivery and performance of this Agreement.

17. Waiver of Breach:

Failure of either party hereto to require the performance by the other party hereto of any obligation under this Agreement shall not affect its right subsequently to require performance of that or any other obligation. Any waiver by any party hereto of any breach of any provision of this Agreement shall not be construed as a continuing waiver of any such provision or a waiver of any succeeding breach or modification of any other right under this Agreement.

18. Subcontractor Disclosure:

Through contractual arrangements with subcontractors, Sedgwick provides a full range of medical management and investigative services to its clients, as well as structured settlements, claim indexing services, imaging, auto -bill adjudication, and extra -territorial claims administration services. Medical management services include, but are not limited to, bill review, network access, pharmacy benefits management, peer review, field case management, electro-medical devices, bone growth stimulators, orthotics, prosthetics, translation and interpretation, transportation, medical supplies, IV and respiratory therapy, home health, and durable medical equipment. Client recognizes and agrees that delivery of some of these services are being provided pursuant to separate C/XXXXX 14

Page 1961 of 3058 ends

agreements between subcontractors and Sedgwick. Invoices for these services will be paid as allocated loss adjustment expenses on individual claims, unless otherwise agreed between Client and Sedgwick. Notwithstanding the foregoing, Client agrees and understands that Client is obligated to make payment to the subcontractors either directly or by remitting such payment to Sedgwick, for any money due for subcontracted services which have been provided under this Agreement. Client acknowledges that Sedgwick receives a portion of charges for subcontracted services as reimbursement for cost of program management, administration, and technological and service enhancements. In no event will charges to Client exceed the amount indicated in the Agreement.

19. Equitable Adjustment:

This Agreement contemplates that the standards applicable to this Agreement are those in effect on the date of this Agreement, whether such standards are set forth in statutes, regulations, rules, orders, case law or otherwise. In the event of a change in a service standard, Sedgwick shall be entitled to an equitable adjustment in its compensation if such change increases Sedgwick's cost of providing the services under this Agreement or reduces its profitability.

20. Non -Solicitation:

Client acknowledges and agrees that Sedgwick personnel who perform the services are a valuable asset to Sedgwick and difficult to replace. Accordingly, Client agrees that, during the term of the Agreement, and for twelve months thereafter, it will not solicit, contract or hire Sedgwick personnel or encourage them to seek employment or any other contractual arrangements with Client. The parties further agree that in the event Client breaches the provision of this Section, Client shall pay Sedgwick liquidated damages in the amount of two times the annual compensation to be paid to such person for each such breach, which is the parties' good faith estimate of the amount of damages to Sedgwick from such breach. This Section shall survive the termination of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the dates written below.

Insert Name of Client Sedgwick Claims Management Services, Inc.

By By
Title Title
Date Date
C/XXXXX 15

Page 1962 of 3058 ends

BEAUMON
-C A L I F O R N !IT
Staff Report
TO: City Council
FROM: Steven D. Jones, Community Development Director
Sara Retmier, Chief Building Official
DATE August 19, 2025
SUBJECT: Service Agreement for Tree Trimming and Removal Performed on Private Properties
Description Consideration of a four-year term general service agreement contract award for tree trimming and removal performed on private properties with West Coast Arborists, Inc.

Background and Analysis:

On March 12, 2025, in accordance with the Beaumont Municipal Code (BMC) Section

3.01.040, City staff issued a Request for Proposals (RFP) for as -needed tree trimming and removal services performed on private properties. The scope of work includes trimming and/or removal of trees on an as -needed basis, specifically those that are dead, decaying, or otherwise constitute a public nuisance or fire hazard on private property, as defined under BMC Chapters 8.32 (Nuisances) and 8.08 (Weeds and Waste Matter). The Request for Proposal closed on April 2, 2025, with a total of nine (9) proposals received.

Proposals were evaluated based on several criteria, including the proposer's understanding of the scope, possession of a valid and appropriate contractor's license, and demonstrated ability to meet the City's operational needs. West Coast Arborists, Inc. submitted the most responsive and qualified proposal, excelling in all evaluation categories.

Following a comprehensive review of all submissions, staff recommends awarding the contract for as -needed tree trimming services performed on private properties to West Coast Arborists, Inc. If approved, all services would be performed in compliance with the applicable sections of the Beaumont Municipal Code.

Although the City Manager is authorized to approve contracts within this dollar amount, the City currently holds a separate agreement with West Coast Arborists, Inc. in the amount of $1,720,000 for certain public grounds maintenance services administered by the Community Services Department. Because the combined value of both agreements

Page 1963 of 3058 ends

would exceed the City Manager's cumulative signing authority, City Council approval is required.

Fiscal Impact:

Funding for tree trimming and removal services performed on private properties is included in the adopted operating budget under the Community Development Department — Community Enhancement (2030). The proposed not -to -exceed contract amount of $40,000 —allocated at $10,000 annually over a four (4) -year term —is aligned with both current and anticipated budget appropriations.

The estimated staff cost to prepare this report is approximately $480.

Recommended Action:

Award a General Services agreement to West Coast Arborists, Inc. with a not -to -exceed amount of $40,000 over a four (4) -year term, with annual payments not to exceed $10,000. If approved, the agreement would be effective from June 1, 2025, through May 31, 2029, for as -needed tree trimming and removal services performed in support of the Community Development Department's Community Enhancement Division.

Authorize the issuance of a purchase order to West Coast Arborists, Inc. in the amount of $10,000, for the purchase of tree trimming and removal performed on private properties for FY26.

Attachments:

A. General Services Agreement
B. Levine Act Statement

Page 1964 of 3058 ends

City of Beaumont Agreement
C25-56

AGREEMENT FOR GENERAL SERVICES
THIS AGREEMENT FOR MAINTENANCE SERVICES is made and effective August 19, 2025, by and between the CITY OF BEAUMONT ("CITY") whose address is 550 E. 6th Street, Beaumont, California 92223 and WEST COAST ARBORIST INC. whose address is 2200 E. Via Burton Street; Anaheim, CA 92806 ("CONTRACTOR").

RECITALS
A. CONTRACTOR submitted a proposal ("Proposal") in response to a request from the CITY to provide certain services, which Proposals are attached hereto as Exhibit "B" and made a part hereof by this reference; and
B. CITY desires to engage CONTRACTOR to provide the services provided for in the Proposals; and

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until completion of the services ("Services") provided for in the Proposal.

Contractor shall commence the Services on or around August 19, 2025 and shall complete the Services no later than May 31, 2028 with an option to extend for two (1) year periods. Work will be assigned on an as -needed basis and no work shall be completed until such time the City provides the Contractor with an approved work order. Notwithstanding the forgoing, City may terminate this Agreement upon written notice to Contractor, provided it pays Contractor for all services provide prior to termination.

2. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services; provided, however, that CONTRACTOR shall not subcontract any of the Services without the written consent of CITY. 3. Compensation.

3.01 CONTRACTOR shall be paid at the rates set forth in the Proposals.

Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by CITY to CONTRACTOR for the completion of the Services under this Agreement shall not exceed Thirty -Thousand Dollars ($30,000).

3.02 CONTRACTOR will be requested to submit a written quote for the services specified in the request, in accordance with the terms and pricing outlined in the proposal. The quotation shall incorporate the cost elements set forth in Exhibit A.

4. Obligations of CONTRACTOR.
1

Page 1965 of 3058 ends

City of Beaumont Agreement
C25-56

4.01 In the event that the terms of the Proposal shall conflict with the terms of this Agreement, or contain additional terms other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

4.02 CONTRACTOR is responsible for paying, when due, all income and other taxes, fees and withholding, including withholding state and federal taxes, social security, unemployment and worker's compensation, incurred as a result of the compensation paid under this Agreement. CONTRACTOR agrees to indemnify, defend and hold harmless CITY for any claims, costs, losses, fees, penalties, interest, or damages suffered by CITY resulting from CONTRACTOR's failure to comply with this provision.

4.03 CONTRACTOR shall be solely responsible for obtaining Employment Eligibility Verification information from CONTRACTOR's employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that CONTRACTOR's employees are eligible to work in the United States.

4.04 Drug -free Workplace Certification. By signing this Agreement, the CONTRACTOR hereby certifies under penalty of perjury under the laws of the State of California that the CONTRACTOR will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug -free workplace.

4.05 CONTRACTOR shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder.

4.06 Contractor shall comply with all applicable laws and regulations relating to prevailing wages. Wage rates for this Project shall be in accordance with the "General Wage Determination Made by the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1", for Riverside County.

5. Insurance. CONTRACTOR hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal -OSHA. Attached hereto as Exhibit "C" are copies of Certificates of Insurance and endorsements as required by Section 6.02. Therefore, throughout the duration of this Agreement, CONTRACTOR hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below.

If existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so. CONTRACTOR shall provide the following types and amounts of insurance:

5.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; CONTRACTOR agrees to have its insurer endorse the general liability coverage required herein to include as additional insured's CITY, its officials, employees and agents. CONTRACTOR also agrees to require all contractors 2

Page 1966 of 3058 ends

City of Beaumont Agreement
C25-56
and subcontractors to provide the same coverage required under this Section 6.

5.02 Business Auto Coverage in an amount no less than $1 million per accident.

If CONTRACTOR or CONTRACTOR's employees will use personal autos in performance of the Services hereunder, CONTRACTOR shall provide evidence of personal auto liability coverage for each such person.

5.03 Workers' Compensation coverage for any of CONTRACTOR's employees that will be providing any Services hereunder. CONTRACTOR will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any workers' compensation will not limit the obligations of CONTRACTOR under this Agreement.

CONTRACTOR expressly agrees not to use any statutory immunity defenses under such laws with respect to CITY, its employees, officials and agents.

6. General Conditions Pertaining to Insurance Coverage

6.01 No liability insurance coverage provided shall prohibit CONTRACTOR from waiving the right of subrogation prior to a loss. CONTRACTOR waives all rights of subrogation against CITY regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do likewise.

6.02. Prior to beginning the Services under this Agreement, CONTRACTOR shall furnish CITY with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

6.03. All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of "A:VII"). The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

6.04 Self-insurance does not comply with these insurance specifications.

CONTRACTOR acknowledges and agrees that that all insurance coverage required to be provided by CONTRACTOR or any subcontractor, shall apply first and on a primary, non-contributing basis in relation to any other insurance, indemnity or self-insurance available to CITY.

7. Indemnification.

7.01 CONTRACTOR and CITY agree that CITY, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by CONTRACTOR or any subcontractor or agent of either. Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest 3

Page 1967 of 3058 ends

City of Beaumont Agreement
C25-56
protection possible under the law to CITY. CONTRACTOR acknowledges that CITY would not enter into this Agreement in the absence of the commitment of CONTRACTOR to indemnify and protect CITY as set forth herein.
a. To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify and hold harmless CITY, its employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by CITY, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.

CONTRACTOR's obligation to defend, indemnify and hold harmless shall include any and all claims, suits and proceedings in which CONTRACTOR (and/or CONTRACTOR' s agents and/or employees) is alleged to be an employee of CITY.

8. Status of CONTRACTOR.

8.01 CONTRACTOR shall perform the Services in CONTRACTOR's own way as an independent contractor, and in pursuit of CONTRACTOR' s independent calling, and not as an employee of CITY. However, CONTRACTOR shall regularly confer with CITY's City Manager as provided for in this Agreement.

8.02 CONTRACTOR agrees that it is not entitled to the rights and benefits afforded to CITY's employees, including disability or unemployment insurance, workers' compensation, retirement, Ca1PERS, medical insurance, sick leave, or any other employment benefit. CONTRACTOR is responsible for providing, at its own expense, disability, unemployment, workers' compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.

8.03 CONTRACTOR hereby specifically represents and warrants to CITY that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of CITY and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services in the same geographic area where the CITY is located. Further, CONTRACTOR represents and warrants that the individual signing this Agreement on behalf of CONTRACTOR 4

Page 1968 of 3058 ends

City of Beaumont Agreement
C25-56
has the full authority to bind CONTRACTOR to this Agreement.

9. Miscellaneous Provisions.

9.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by CONTRACTOR for CITY and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties. The Recitals to this Agreement are hereby incorporated herein by this reference.

9.02 CONTRACTOR shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of CITY. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.

9.03 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.

9.04 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California.

9.05 CONTRACTOR covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder.

CONTRACTOR further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

9.06 Improper Consideration. CONTRACTOR shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the CITY in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by CITY. The CITY, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the CITY with respect to the proposal and award process of this Agreement or any CITY contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any CITY contract has been awarded. CONTRACTOR shall immediately report any attempt by any CITY officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from CONTRACTOR. [signatures on following page]
5

Page 1969 of 3058 ends

City of Beaumont Agreement
C25-56
IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above -written.

CITY:

CITY OF BEAUMONT
By:

Mike Lara, City Mayor
CONTRACTOR:

WEST COAST ARBORIST INC.

By:

Print Name: Patric
Date: Date: 08/07/25
ATTEST:

By:

Nicole Wheelwright, Deputy City Clerk
APPROVED AS TO FORM:

By:

John O. Pinkney, City Attorney
6 Title: Owner/President

Page 1970 of 3058 ends

City of Beaumont Agreement
C25-56
EXHIBIT "A"

REQUEST FOR PROPOSAL
7

Page 1971 of 3058 ends

Website:
www.beaumontca.gov

BEAUMONT
-C A L I F O R N I A
Address:
550 E. 6th Street
Beaumont, CA 92223
Request for Proposals
For
Weed Abatement Services
Proposals Due By:
5:00 pm
April 2, 2025
Contact:

Raveena Chara, Procurement Contract Specialist
550 E. 6th Street - Beaumont, California 92223
[email protected]
RFP Available
Planet Bids Portal at
htt )s://vendors. )lanetbids.com/ )ortal/66785/bo/bo-search Phone:
951.769.8520

Page 19712 of 3058 ends

City of Beaumont Weed Abatement Services
Request for Proposal
iiitruuucuiun

BEAUMONT
-CALIFORNIA
The City of Beaumont ("City") is seeking proposals from qualified contractors (Contractor) to perform as -needed services as identified in this RFP. There are three (3) scope of services that include Weed Abatement; Rubbish, Refuse, Dirt and Waste Matter Removal; and Tree Trimming. Proposals may be submitted for one (1) or all three (3) services.

1. Weed abatement services on private properties.

The City's Community Enhancement Department is responsible for weed abatement enforcement on private properties within the City limits. There are approximately 700 private property parcels of varying size subject to weed abatement requirements. The intent of this Request for Proposal is to contract with multiple qualified Contractor that will provide the City of Beaumont with the best possible weed abatement services to maintain public safety and minimize public nuisance at a level expected by City residents, City Council, City staff and visitors of the community. The selected Contractor(s) will work closely with City staff to ensure the most appropriate abatement services for the identified properties.

2. Rubbish, Refuse, Dirt and Waste Removal will be performed on private -property. Because this type of work can vary depending on the complexity and type of waste to be removed, prior to a work order being issued, the contractor will be asked to provide a quote for the project. The hourly rates in the contract will need to be used.

3. Tree Trimming services will be performed on private property. Prior to a work order being issued, the contractor will be asked to provide a quote. The fees quoted in the contract shall be used to estimate in the quote.

Responses must conform to the requirements of this Request for Proposal (RFP). The City reserves the right to waive any irregularity in any proposal, withdraw or amend this RFP or reject any proposal that does not comply with this RFP or City policies. All services provided by the Contractor shall be performed by individuals who meet the qualifications, education, and certification/licensing requirements for the position. The successful Contractor shall also have the resources to provide cost-effective and timely services, including providing customer service to the CITY.

Qualified Contractors that submit a proposal will be evaluated in accordance with the requirements defined within this RFP. The City reserves the right to waive any irregularity in any proposal, withdraw or amend this RFP or reject any proposal that does not comply with this RFP or City policies.

Background
The City was incorporated in November 1912 and is located in the San Gorgonio Pass portion of western Riverside County. It is bounded on the west by Calimesa and unincorporated areas, on the north by unincorporated county areas (Cherry Valley), on the south by unincorporated county areas and the City of San Jacinto, and on the east by the City of Banning. The land area within the City's

Page 193 of 3058 ends

.,::--•••:-........

City of Beaumont Weed Abatement Services
Request for Proposal

BEAUMONT
boundary is approximately 30 square miles.

The City operates under a council-manager format of government which consists of a Mayor, Mayor Pro-Tem, three Councilmembers and the City Manager. The positions of Mayor and Mayor Pro-Tem are rotated among the elected Councilmembers. A City Clerk and Treasurer are elected positions, each for a four-year term. Regular City Council meetings are held on the first and third Tuesdays of each month.

Additional Responsibilities
The Contractor shall be responsible for completing the specified services in accordance with the CITY's General Services Agreement (PSA) by Independent Contractor, a sample of which is attached (Exhibit A).

Term
The term of the agreement shall be determined upon the need for services and consistent with the City's policies. The initial period of the contract is four (4) years, with two one-year extensions as approved by the City Council, subject to agreement terms and the Beaumont Municipal Code.

Proposal Requirements
Proposals shall clearly address all the information requested and describe the methodology to be used to accomplish each of the project tasks. Please note: this RFP cannot identify each specific, individual task required to successfully and completely implement this project. The CITY relies on the professionalism and competence of the selected Contractor to be knowledgeable of the general areas identified in the scope of services. The CITY will not approve addenda to the selected Contractor's agreement which do not involve a substantial change from the general scope of work identified in this RFP.

The proposal shall clearly address all the information requested herein. To achieve a uniform review process and obtain the maximum degree of comparability, it is required that proposals be organized and contain all information as specified below.

A. Cover Letter: The RFP shall be transmitted with a cover letter that must be signed by an official authorized to bind the consultant contractually. The letter accompanying the RFP shall also provide the name, title, address, and telephone number of individuals with the authority to negotiate and contractually bind the consultant. The cover letter constitutes certification by the consultant that the consultant complies with nondiscrimination requirements of the State and Federal Government. An unsigned proposal or one signed by an individual unauthorized to bind the consultant may be rejected.

B. Introduction/Information: Introduction of the service proposal, including a statement of understanding for the types of services contemplated. Any participating firms and proposed sub -consultants shall be identified and included in the proposal (all sub -consultants must be approved by the City prior to signing the agreement with City). The participating firms need to provide clarity on which scopes of services (Weed abatement, Trash removal or Tree trimming) are they submitting a proposal on.

Page 19 ends

Weed Abatement Services
City of Beaumont
Request for Proposal

BEAUMONT
-CALIFORNIA-
C. Scoie of Services: Provide a description of the tasks, sub -tasks, and deliverables that will be provided.

The Scope of Work Program should be presented in logical format that can be easily attached to the Professional Services Agreement. Any additional items not mentioned in Exhibit A- Scope of Services but required to obtain final approval, shall be included in the proposal as additional items for consideration. The fully recommended Scope of Services should be presented as an attachment to the proposal and shall be in a logical format that can be easily attached to the Professional Services Agreement (Exhibit B).

D. Approach: The proposal should set forth a detailed work plan, including an explanation of the methodology and process for providing the services required in this RFP. Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion.

E. Firm Profile: Provide a description of the firm based off of the information requested below.

The following information should also be included:
• Name
• Street Address
• City, State, Zip Code
• Corporate Structure
• State/Country of Incorporation
• Website
• Contact Information
In addition, any participating firms and proposed subcontractors shall be identified and included in the proposal (all subcontractors must be approved by the City prior to signing the agreement with the City).

F. Location: Location of the principal office that will be responsible for the implementation of this contract.

G. References: at least three (3) references from previous cities, counties or other agencies for similar work completed within the last five (5) years, which include: name, address, contact person and phone number for the agency, length of time services were provided, staff assigned to each project by your firm, and a description of the services provided. All submitted materials shall become the property of the City of Beaumont.

H. Any other information which should be considered, such as any special services or customer service philosophy, which define your firm's practice.

I. Cost proposal: Submit the completed cost proposals attached with your proposal submission.

Page 19745 of 3058 ends

City of Beaumont :::----..

Weed Abatement Services

BEAUMONT
-CALIFORNIA-
Please note the proposed costs shall include full compensation for furnishing all labor, materials, supplies, tools, equipment, and incidentals necessary to complete all work contemplated and listed in the scope of services. This should include a not to exceed fee amount, fee schedule and hourly billable costs for the options discussed in Exhibit A- Scope of Services.

Request for Proposal
J. The firm will be required to maintain an active City of Beaumont Business License and professional liability insurance including general liability at a minimum of one million per occurrence, worker's compensation, and vehicle coverage including comprehensive and collision insurance naming the City of Beaumont as additional insured. The proposal shall state whether such license and insurance will be in force at time of contract execution.

Response Submittal
All questions or requests for clarifications regarding this RFP shall be submitted on planetbids by 5:00 p.m. PST April 2, 2025. Responses to all questions will be posted on the same website to allow all users to review the City's responses to all questions within one (1) week of the question due date.
*DUE DATE FOR QUESTIONS IS, MARCH 19, 2025 BY 5:00 P.M. * Submit one (1) digital copy of proposal and one (1) digital copy of the cost proposal in PDF format on Planetbids in accordance with the proposal submission deadline, which is 5:00 pm PST on April 2, 2025. Proposal must be titled "Proposal for Weed Abatement services" and the cost proposal must be titled "Cost proposal for Weed Abatement services" All costs associated with preparation of any proposal shall be the sole responsibility of the proposer. *DUE DATE FOR PROPOSALS IS APRIL 2, 2025 BY 5:00 P.M. * By proposing on this project, you are indicating that you agree to all terms and conditions of the City's General Services Agreement, which is attached to this RFP as Exhibit C .

No RFC or questions will be accepted after 5:00 p.m. on March 19, 2025. All RFC responses will be posted on the CITY's Planet Bids Portal by March 25, 2025.

No postmarked proposals will be accepted. Once submitted, proposals, including the composition of the consulting staff, cannot be altered without prior written consent of the CITY.

If prior to the date fixed for submission of Proposals, a prospective Company discovers any ambiguity, conflict, discrepancy, omission or other errors in this RFP or any of its appendices, exhibits or attachments, the Company shall immediately notify the City of such error in writing and request modification or clarification of the document. Modifications shall be made by written Addenda to the RFP.

If a Company fails to notify the City, prior to the date fixed for submissions of Proposals, of an error in the RFP known to the Company, or an error that reasonably should have been known to the Company, the Company shall submit its Proposal at its own risk, and if the Company is

Page 196 of 3058 ends

Beaumont City CouncilAugust 19, 2025

Beaumont City Council
August 19, 2025