Agenda Report
Fullerton City Council
MEETING DATE: NOVEMBER 19, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES PREPARED BY: CHRISTINE PILAPIL, HUMAN RESOURCES MANAGER I SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH BURNHAM BENEFITS INSURANCE SERVICES FOR BENEFITS BROKER SERVICES
SUMMARY
Staff requests City Council approve this agreement so the City may utilize 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.
PROPOSED MOTION
Approve and authorize City Manager, or designee, to execute and administer the Professional Services Agreement and related documents with Burnham Benefits Insurance Services, A BPR Company, in a form approved by City Attorney.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Do not approve the PSA and provide direction to staff
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
This insurance services broker has contracted with the City since 2019.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The City budgets benefits programs in an internal service fund in the Group Insurance Fund (Fund 66). The proposed annual fee for Burnham Benefits Insurance Services totals $77,250 for the first three years of the Agreement with built-in escalators for three optional renewal years. The Fiscal Year 2024-25 Adopted Budget has sufficient funds allocated.
DISCUSSION
Burnham Benefits Insurance Services (Burnham) served as the City health benefits broker since 2019. The current agreement expires on December 31, 2024.
The City solicited Request for Proposals (RFP) from qualified consultants and firms to provide benefits brokerage and consulting services in support of the City Health and Benefits program in June 2024. Six firms responded to the RFP:
Alliant Insurance Services
Burnham Benefits Insurance Services
Custom Benefit Consultants, Inc,
HUB International
Keenan & Associates
McGriff Insurance Services.
Staff disqualified two proposals due to non-compliance with the RFP. An evaluation committee composed of representatives from the Confidential, Management and Police Management bargaining units reviewed qualified proposals. The committee evaluated proposals on:
adherence to RFP instructions
firm qualifications
project management approach
detailed work plan
proposed fees.
Staff recommends Burnham as the City Benefits Broker based on the proposal and fee structure. Staff continues to be pleased with the level of services provided by Burnham.
Burnham reduced dental, vision and life / disability insurance premiums and negotiated savings in medical premiums from initial to final renewals. Burnham is heavily invested in the public sector, supporting more than 115 public clients throughout California and representing nearly 175,000 employees. The proposed PSA has a three-year term with three one-year options to extend. The proposed annual fee totals $77,250 for the first three years.
Attachments:
Attachment 1 – Proposed Professional Services Agreement cc: City Manager Eric J. Levitt
Burnham Benefits Insurance Services PSA
November 19, 2024 - Page 2