Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES PREPARED BY: CHRISTINE PILAPIL, HUMAN RESOURCES MANAGER I SUBJECT: BROKER SERVICES AGREEMENT AMENDMENT ONE
SUMMARY
City Council consideration to exercise its option to extend the Broker Services Agreement with Burnham Benefits Insurance Services (Burnham) for the City’s health benefit program through December 31, 2023.
RECOMMENDATION
Approve and authorize City Manager, or designee, to execute and administer Burnham Benefits Insurance Services Broker Services Agreement Amendment Number One.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The City shall compensate Broker through direct payment of broker fees at the following annual rates:
January 1, 2022 – December 31, 2022 $75,000
January 1, 2023 – December 31, 2023 $77,250
The Fiscal Year 2022-23 Adopted Budget includes the necessary funds for this broker services agreement.
DISCUSSION
The City utilizes a benefits broker to provide benefit program assessment and review, renewal analysis and negotiation, claim utilization review, carrier performance monitoring and support and consultation of health benefit trends and legislative compliance. Burnham has served as the City’s health benefits broker since 2019.
Burnham’s annual fee has remained flat since 2019. The Brokers Services Agreement allows for a 3% annual increase. Staff continues to be pleased with the level of service provided by Burnham and believes the 3% increase is warranted. Since Burnham’s Agreement will expire in 2023, staff will initiate a Request for Proposals in 2023 for broker services.
Attachments:
Attachment 1 – Proposed Amendment with Burnham Insurance Services cc: City Manager Eric J. Levitt
Burnham Benefits Amendment One
September 20, 2022