Item 5.2
Revised 3/26/2024
Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE CONSULTANT SERVICES
AGREEMENT TO PROVIDE EMPLOYEE BENEFIT
INSURANCE BROKER SERVICES BETWEEN THE CITY AND
MARSH & MCLENNAN AGENCY, LLC.
WHEREAS, the City is desirous of retaining a qualified employee benefit insurance broker to provide insurance broker services for the City’s employee benefits program; and
WHEREAS, the City of Chula Vista’s last services agreement between the City and Marsh & McLennan Agency, LLC. was established in June 2019 to provide employee benefits insurance broker services; and
WHEREAS, in order to procure these services in 2019 , the City solicited proposals in accordance with Chula Vista Municipal Code Section 2.56.110 for professional services, received four proposals, and selected Marsh & McLennan Agency , LLC. as the most qualified amongst those submitting; and
WHEREAS, Marsh & McLennan Agency, LLC. is a qualified and licensed insurance broker for employee benefit insurance services; and
WHEREAS, Marsh & McLennan Agency , LLC. warrants and represents that it is experienced and staffed in a manner such that it can continue to deliver the services required of Consultant to the City in accordance with the timeframes and terms and conditions of the Agreement; and
WHEREAS, the agreement established in 2019 with Marsh & McLennan Agency , LLC expired on December 31, 2023, and the Ci ty is desirous of continuing and retaining employee benefit insurance broker services from Marsh & McLennan Agency , LLC. until another Request for Proposals process is successfully completed prior to the end of this agreement; and
WHEREAS, Chula Vista Municipal Code Section 2.56.110(H)(2) provides for the award of a contract for professional consultant services, without competitive bidding, as impractical or impossible by resolution of the City Council (for contracts with a maximum contract amount in excess of $100,000) that the competitive bidding requirements are impractical, or impossible, or that City interests would be materially better served by applying a different purchasing procedure, the City Council may award the contract utilizing alternative procedures consistent with best purchasing practices; and
WHEREAS, Marsh & McLennan Agency, LLC. has demonstrated their ability to perform the scope of work of a benefits insurance broker, negotiate competitive health insurance premium rates and has developed a strong partnership with the Human Resources Department and Health Resolution No.
Insurance Committee (consisting of representatives from Human Resources, Finance, all collective bargaining units), which are both critical to the annual benefits renewal process; and
WHEREAS, compensation for Marsh & McLennan Agency , LLC. is based on monthly broker commissions built into the employee insurance benefit plans and based upon percentages negotiated with the various insurance companies and paid directly to the broker by various insurance companies; and
WHEREAS, considering that the preparation, execution of, and review of annual Benefits Open Enrollment, approval to waive the competitive bid process would enable staff to continue working with M arsh & McLennan Agency LLC within the normal annual benefits renewal timeline and avoid disruption to strategic planning and implementation of the 2025 employee benefits plans.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves entering into the Consultant Services Agreement to Provide Employee Benefit Insurance Broker Services between the City and Marsh & McLennan Agency , LLC., in substantially the form presented, with such minor modifications as may be required or approved by the City Attorney and City Manager, a copy of which shall be kept on file in the Office of the City Clerk; waives the competitive bidding process with respect to the Agreement, pursuant to CVMC Section 2.56.110(H)(2); and authorizes and directs the City Manager to negotiate the final terms of, and execute, the Agreement.
Presented by Approved as to form by
Tanya Tomlinson Jill D.S. Maland
Director of Human Resources/ Lounsbery Ferguson Altona & Peak Risk Management Acting City Attorney