Agenda packet — Finance Committee, December 16, 2024 (part 1 of 2)

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www.modestogov.com
AGENDA
City of Modesto

FINANCE COMMITTEE

COUNCIL WORKSHOP
2001-40 Del Puerto Room
Tenth Street Place, 1010 10th Street
Modesto, California
Monday, December 16, 2024 at 4:00 PM
Roll Call: Nick Bavaro, Chair
Rosa Escutia-Braaton, Vice-Chair
David Wright, Member
Alternates: Eric Alvarez, Jeremiah Williams, Chris Ricci, Sue Zwahlen Council has not delegated directive or final approval authority to the Committees.

Committee actions are recommendations to the full City Council, not final decisions on an issue. * Public Comment will only be in-person. Members of the public who wish to address the Committee, by providing public comment, during the meeting must do so in-person in the 2001-40 Del Puerto Room. As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation. *Members of the public will be allowed to provide public comment through Zoom if a Committee Member is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Committee meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link https://attend.wordly.ai/join/RJDY-6364.
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"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.

You may observe a livestream of the meeting at http://media.modestogov.com. You may also view or listen to the meeting as indicated below.

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

CONFERENCING OR TELEPHONE
Joining the Committee meeting via Zoom
The City of Modesto is now offering the ability to view Committee meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
 Enter the following link into an Internet Browser
https://us02web.zoom.us/j/86945970570,
 Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID 869 4597 0570
 Passcode 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Committee meeting.

Joining the Committee meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can listen by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID 869 4597 0570 Passcode 84326

PUBLIC COMMENTS IN PERSON
Three-minute time limit per speaker.

Only interested persons in the audience may present these matters. Under State law, Committee Members may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Committee Member or the Committee itself may take action to direct staff to place a matter of business on a future agenda.

SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Committee - 2 -
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Members and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.

This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City’s Web site at www.modestogov.com.

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website www.modestogov.com/councilmeetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting
Any and all of the following agenda items are subject to action by the Modesto City Council.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED:

Information concerning the consent items listed below has been forwarded to each Committee Member prior to this meeting for study. Unless some member of the audience or Committee Member has a question concerning an item and asks that it be withdrawn from the consent list, the Committee approves the items at one time. The action taken by the Committee in approving consent items is set forth in the explanation of this individual item.

CONSENT
An item may be removed from consent and discussed at the request of an audience member or Committee Member.

Consent

1. Consider an Agreement with Alliant Insurance Services Inc., Irvine CA as broker of record for Employee Benefit Plans for an amount not to exceed $490,000 over five years and forwarding to Council for approval. (Funding Source: Various Funds)  Motion recommending a Sole Source Agreement with Alliant Insurance Services Inc., Irvine CA as the broker of record for Employee Benefit Plans for a three-year Agreement with two one-year extension options, with an annual estimated amount of $98,000, and a total amount not to exceed $490,000 over five years; and forwarding to Council for approval.
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HUMAN RESOURCES; Dawn Kelley, 209-577-5490, [email protected] Consent

2. Consider an Agreement with Employers Choice Screening (ECS), Santa Fe Springs, CA to conduct Pre-Employment Background Checks for an amount not to exceed $125,000 over five years and forwarding to Council for approval. (Funding Source:

Various Funds)
 Motion recommending an Agreement with Employers Choice Screening (ECS), Santa Fe Springs, CA to conduct Pre-Employment Background Checks for a three-year Agreement with two one-year extension options, for an estimated annual amount of $25,000 and total amount not to exceed $125,000 over five years and forwarding to Council for approval.

HUMAN RESOURCES; Dawn Kelley, 209-577-5490, [email protected] Consent

3. Consider an Agreement with University of Massachusetts (UMass) Global for an Employee Leadership Development Program in a total amount not to exceed $295,000 over five years and forwarding to Council for approval. (Funding Source: Various Funds)
 Motion recommending the Agreement with UMass Global for an Employee Leadership Developmental Program for a two-year Agreement with three oneyear extension options, for an annual estimated amount $59,000 and a total amount not to exceed $295,000 over five years; and forwarding to Council for approval.

HUMAN RESOURCES; Wanda King, 209-571-5125, [email protected] Consent

4. Consider the Plans and Specifications for the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project; a Construction Contract with Mid Cal Pipeline & Utilities, Inc., of Merced, CA in the amount of $1,731,369, plus 15% in contingency (if needed), for a total payment amount not to exceed $1,991,075; and an Engineering Support during Construction Agreement with Siegfried Engineering, of Modesto, CA in the amount of $29,800, plus $2,980 in additional services (if needed), for a total payment amount not to exceed $32,780 and forwarding to Council for approval. (Funding Source: Water Fund)
 Motion recommending the Plans and Specifications for the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project, and a Construction Contract with Mid Cal Pipeline & Utilities, of Merced, CA in the amount of $1,731,369, plus 15% in contingency (if needed), for a total payment amount not to exceed $1,991,075 and forwarding to Council for approval.  Motion recommending an Engineering Support during Construction Agreement with Siegfried Engineering, of Modesto, CA, for the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project in the amount of $29,800, plus $2,980 in additional services, if needed, for a total amount not to exceed $32,780 and forwarding to Council for approval.
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 Motion recommending amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $678,500 to be transferred into the Project from Water Reserves to fund the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project and forwarding to Council for approval.

UTILITIES; Edgar Vargas, 209-577-5424, [email protected]

NEW BUSINESS

5. Consider establishing the creation of a new Fund to track the Opioids Settlement Proceeds and Opioids Spending Plan as defined by the State of California Department of Health Care Services (DHCS) and forwarding to Council for approval. (Funding Source: Settlement Proceeds)
 Motion recommending the creation of a new Fund, 1890 – Opioid Settlements Fund, to track the Opioids Settlement Proceeds and Opioids Spending Plan as defined by the State of California Department of Health Care Services (DHCS), and forwarding to Council for approval.
 Motion recommending amending the Fiscal Year 2024-2025 Multi-Year Operating Budget to establish projects for the Opioids Spending Plan based upon the settlement amounts listed above, and forwarding to Council for approval.

POLICE DEPARTMENT; Chris Adams, 209-572-9500, [email protected]

ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on at by
date time signature
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 16, 2024
Date: November 25, 2024
TO: Finance Committee
Nick Bavaro, Chair
Rose Escutia-Braaton, Vice-Chair
David Wright, Committee Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Alliant Insurance Services Consulting and Broker of Record Agreement CONTACT: Dawn Kelley, Human Resources Manager
[email protected], 209-577-5490
DESCRIPTION:

Consider an Agreement with Alliant Insurance Services Inc., Irvine CA as broker of record for Employee Benefit Plans for an amount not to exceed $490,000 over five years and forwarding to Council for approval. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

This item supports the 2020-2025 Strategic Plan’s Service and Delivery Goals & Strategies - Building a High-Performing Organization by Attracting and Retaining High Performance Employees.

BACKGROUND:

Alliant Insurance Services, Inc. is the sole source insurance broker who provides insurance products and services offered through Public Risk Innovation, Solutions and Management Programs (PRISM). Alliant and PRISM Health jointly developed their unique product in 1978.

There has been no change to their relationship and brokers of record since inception. The Brokerage Agreement between PRISM and Alliant Insurance Services outlines the relationship between Alliant and PRISM and duties are clearly identified on page 7, section 11 and in Addendum A5, A-7, A-8, Addendum B- Addendum D, which are included in the Bid Waiver attachment.

On February 5, 2019, by Resolution No. 2019-54, the City Council approved a consulting and broker of record agreement with Alliant Insurance Services to broker insurance services with PRISM.
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Alliant Insurance Services Consulting and Broker of Record Agreement

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DISCUSSION:

The average premium increase between 2019 and 2024 for the City of Modesto with PRISM Health Medical was -4.45%. In comparison, the California Preferred Provider Organization (PPO) Trend increase was +7.50% and CalPERS Health was +11.71% during this same period.

PRISM’s healthcare model controls cost increases by working with providers and pooling public agencies to gain economies of scale. The pooling approach creates value and long-term stability for the City by securing the lowest possible fixed costs from premier carrier partners and combining similar risk profiles in a financially stable pool. This differs from a traditional health plan, which uses the utilization data for the agency alone. The PRISM Health Program requires a minimum of three years in the pool and once an agency leaves the pool, they cannot rejoin for a minimum of three years. This would require gaining insurance plans through the open market for at least three years and the cost of health continues to rise.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow formal bid procedures.

However, MMC 8-3.204(b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process. Here, the brokerage agreement with Alliant Insurance Services, Inc. is the sole source broker for PRISM Health is the best option for City of Modesto. Therefore, staff recommends the Consulting Agreement with Alliant Insurance Services, Inc. should be exempt from the formal bidding procedures in accordance with Modesto Municipal Code 8-3.204(b) since Alliant Insurance Services, Inc. is the Sole Provider and broker of PRISM Insurance Services.

FISCAL IMPACT:

Total cost over five (5) years will not exceed $490,000. Cost is budgeted within the Employee Benefits Fund (5520), which is funded through an internal service fund model charged out to all departments.
2019 – 2024 Cost for Previous Contract
2019 2020 2021 2022 2023 2024 Total
$49,000 $98,000 $98,000 $98,000 $98,000 $49,000
$490,000
2025 – 2030 Cost for New Contract
2025 2026 2027 2028 2029 2030 Total
$49,000 $98,000 $98,000 $98,000 $98,000 $49,000
$490,000
RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending a Sole Source Agreement with Alliant Insurance Services Inc., Irvine CA as the broker of record for Employee Benefit Plans for a three-year Agreement with two one-year extension options, with an annual estimated amount of $98,000, and a total amount not to exceed $490,000 over five years; and forwarding to Council for approval.

Christina Alger, Director of Human Resources
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Alliant Insurance Services Consulting and Broker of Record Agreement

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Joseph P. Lopez, City Manager
Attachments:

1. Alliant Service Agreement

2. Signed Bid Waiver

3. Resolution 2019-54
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CONSULTING SERVICES AGREEMENT
This Consulting Services Agreement (“Agreement”) is effective February 1, 2025 (“Effective Date”) between Alliant Insurance Services, Inc., a California corporation with its principal place of business at 18100 Von Karman Ave, 10th Floor, Irvine, CA 92612 (“Alliant”), and City of Modesto, a municipal corporation with its principal place of business at 1010 10th Street, Suite 6100, Modesto, CA 95354 (“Client”). Alliant and Client may be referred to in this Agreement individually as a “Party” and together as the “Parties.” The schedules, attachments and exhibits referenced in and attached to this Agreement shall be deemed an integral part of this Agreement and the term Agreement as referenced herein shall include all schedules, attachments and exhibits. In the event any inconsistency or conflict exists between the provisions of this Agreement and any schedules, attachments or exhibits attached hereto, the provisions of this Agreement shall supersede the provisions of any such schedules, attachments or exhibits.

1. Services.
a. Scope of Services. Alliant shall provide the services described in Schedule I (collectively, “Services”) for Client’s employee benefit plan(s) for which Alliant is designated as the broker of record (“Plan(s)”).
b. Services Warranty. Alliant warrants that the Services will be performed in a professional and workmanlike manner in accordance with industry standards and in compliance with applicable laws and regulations.

2. Compensation Disclosure. In consideration for the Services, Alliant discloses the compensation it receives pursuant to this Agreement in Schedule II.

3. Client Obligations.
a. Service-Specific Obligations. Client shall be responsible for all client obligations identified in Schedule I.
b. Client-Provided Information. Client shall, promptly after the Effective Date and thereafter upon Alliant’s request, provide all information requested by Alliant that may be necessary for Alliant to perform the Services, including, without limitation, information about Client, Client’s existing employee benefits plans, loss experience, and risk exposures; provided that, Client shall not provide Alliant with any individual’s personally identifiable information unless Alliant specifically requests such information in order to perform the Services. Client acknowledges that Alliant relies on such Client-provided information in order to perform the Services. Client confirms that all information it provides to Alliant will be complete and accurate. c. Material Changes. Client shall promptly report to Alliant in writing any significant changes in exposures, loss-related data, Client’s operations, coverages or limits, lines of coverage, or any other change that will change the scope or nature of Client’s insurance plans.
d. Review. Client shall promptly review coverage documents, templates, and other documents for the Plan(s) provided by Alliant, the insurer, or the third party administrator (TPA), to ensure that the documents are consistent with Client’s specifications. Client shall promptly inform Alliant of any discrepancies or required changes.
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CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. e. Delay. Client shall perform its obligations under this Section 3, including the obligation to provide all information requested by Alliant, as soon as practicable but no later than the dates agreed upon by Alliant and Client. Alliant is not liable for any delay or partial performance in performing the Services to the extent such delay or partial performance arises from Client’s delay in performing its obligations under this Section 3 or promptly making decisions related to the Plan(s).

4. Disclaimers.
a. Not Legal or Tax Advice. Alliant is not responsible for Client’s compliance with any laws, regulations, and/or statutes affecting the Plan(s). None of the services, advice, recommendations, or communications provided by Alliant constitutes legal or tax advice, analysis, or opinion, and Client shall not interpret or rely on any of Alliant’s services, advice, recommendations, or communications as legal or tax advice, analysis, or opinion.
b. No Fiduciary Relationship. Alliant will not have discretionary authority or discretionary control with respect to the administration or management of any of the Plan(s). Alliant also will not have authority to exercise any discretion or control with regard to the management, use, or disposition of any assets of the Plan(s) and will not render any investment advice with respect to the Plan(s) or any assets of the Plan(s). Alliant does not provide services as a fiduciary of the Plan(s), and its performance of the Services will not make it a “fiduciary” for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. Client shall not represent that Alliant is a fiduciary for purposes of ERISA. c. Plan Recommendations and Funding. Any plans or plan provisions recommended by Alliant are solely recommendations, and Client, not Alliant, has the ultimate authority to select and modify the plans. Alliant shall have no responsibility, risk, liability, or obligation for funding the Plan(s). All responsibility, risk, liability, and obligation for funding the Plan(s) lies solely with the Plan(s) and the plan sponsor(s). d. Preferred Pricing. Alliant expended resources and goodwill to negotiate favorable pricing terms from certain third party vendors or service providers for the benefit of Alliant’s clients (such negotiated pricing terms, “Preferred Pricing”). To the extent Client engages a third party to provide services for the Plan and benefits from such third party’s Preferred Pricing as a client of Alliant, Client acknowledges that its access to such Preferred Pricing will terminate upon the termination of this Agreement.
e. Other Brokers. Alliant is not responsible for, and hereby disclaims all liability for, any acts, errors, and/or omissions of Client’s previous brokers, consultants, and/or advisors. If Client has any employee benefits plan(s) for which Alliant is not the broker of record, Alliant is not responsible for performing any services with respect to such plan(s) and hereby disclaims all liability for any acts, errors, and/or omissions of Client’s other brokers, consultants, and/or advisors.

5. Confidentiality.
a. Definitions. The Services and work product exchanged by the Parties under this Agreement are to be used exclusively to carry out the terms, conditions, and purposes set forth in this Agreement. During the Term, the Parties may each exchange information considered confidential, proprietary, and/or trade secret, #1..
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. including, without limitation, financial information, pricing information, intellectual property, ideas, concepts, systems, designs, research and technical information, business and operational policies, plans, processes, procedures and strategies, system design and operating specifications, data, recommendations, proposals, reports and similar information (collectively, “Confidential Information”).

Confidential Information specifically includes the compensation information contained in Schedule II and any amendments or addendums to this Agreement containing information on the compensation Alliant receives under the terms of this Agreement.

For purposes of this Section 5, the Party disclosing Confidential Information is the “Disclosing Party” and the Party receiving Confidential Information is the “Receiving Party.”
b. Exclusions. Confidential Information does not include information that is (i) in, or that becomes part of, the public domain other than as a result of a breach of this Section 5; (ii) independently developed by the Receiving Party as demonstrated by its records; (iii) lawfully known by the Receiving Party, without any obligation of confidentiality or other restriction on use or disclosure, prior to disclosure of the information by Disclosing Party; or (iv) disclosed by a third party whom the Receiving Party has no reason to believe has any confidentiality or fiduciary obligation to such information’s owner.
c. Legal Compulsion. A Receiving Party may disclose Confidential Information only to the extent necessary to comply with a valid order of a court or governmental agency with proper jurisdiction or as required by law or regulation; provided that, the Receiving Party shall, to the extent allowed by law, promptly advise the Disclosing Party of the order, subpoena, or request in order to enable the Disclosing Party to employ lawful means to avoid or limit disclosure. Either Party is also entitled to release Confidential Information as required to prosecute or defend any claim under this Agreement; provided however, that the Party seeking to release or use the information shall take all reasonable steps necessary to avoid disclosing Confidential Information, including filing documents and papers under seal. d. Non-Disclosure; Reasonable Efforts. Except as otherwise provided in this Agreement or as required by applicable law, a Receiving Party shall not distribute, use, or rely upon Confidential Information without the Disclosing Party’s permission.

Additionally, except as otherwise provided in this Agreement, a Receiving Party shall not directly or indirectly communicate, divulge, or otherwise disclose the Confidential Information to any unauthorized person or entity. The Parties shall employ reasonable and customary business practices to protect and secure Confidential Information from unauthorized release or distribution and to limit access and usage of Confidential Information to those employees, officers, directors, agents, subcontractors, representatives, and advisors (including, without limitation, attorneys, accountants, and financial advisors) (collectively, its “Representatives”) who have legitimate “need to know” the information in order to perform under this Agreement and who are bound by obligations of confidentiality no less restrictive than this Section 5. The Receiving Party will be liable for any breach of this Agreement by any of its Representatives.
e. Ownership of Confidential Information. Except as otherwise provided in this Agreement, Confidential Information is and remains the absolute and exclusive property of the Disclosing Party and its unique and variable asset. f. Return of Confidential Information. Upon this Agreement’s termination or earlier upon the Disclosing Party’s request, the Receiving Party shall promptly return all #1..
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

Confidential Information, including all copies, received in non-electronic form and shall destroy all information received electronically. Notwithstanding anything to the contrary in this Agreement, the Receiving Party may retain copies of Confidential Information in order to comply with legal or regulatory requirements and any electronic files automatically saved pursuant to its archiving and document retention procedures and that cannot reasonably be deleted; with respect to all such retained copies, the Receiving Party will remain subject to the confidentiality obligations stated in this Section 5 for so long as the copies are retained. g. Survival. The obligations contained in this Section 5 will survive termination of this Agreement for a period of two years or longer as required by law. Nothing in this section limits or otherwise diminishes the protections afforded to trade secret information or by applicable law.
h. Injunctive Relief. A breach of this Section 5 may cause irreparable injury to a Disclosing Party. For this reason, in the event of a breach, a Disclosing Party is entitled to seek injunctive relief or other equitable relief, without prejudice to any other remedies that may be available.

6. Licenses and Ownership.
a. Media License. To the extent that Alliant will prepare benefit brochures, open enrollment materials, or other benefit communications for Client’s employees (collectively, “Benefit Materials”), and Client has or will provide photographs, images, other media, trademarks, and/or logos (collectively, “Media”) to include in the Benefit Materials, Client hereby grants Alliant a worldwide, perpetual, royaltyfree, non-exclusive, sublicensable right and license to use the Media in the Benefit Materials. This license includes the right to use, reproduce, edit, crop, retouch, distribute, and create derivative works of the Media as needed to incorporate the Media into the Benefit Materials and to otherwise prepare and distribute the Benefit Materials. Client represents and warrants that (i) it is the owner of the Media or has the right to grant Alliant the licenses to use the Media, free of all liens, claims, and encumbrances; and (ii) Alliant’s use of the Media as specified in this Agreement will not infringe the rights, including the personal or proprietary rights, of any other party. b. Other Client Information. Client hereby grants Alliant a worldwide, royalty-free, non-exclusive, sublicensable, and revocable license to use all Client-provided information as necessary to provide the Services. Client represents and warrants that it has or will obtain the necessary consents from each individual before providing or otherwise disclosing any of the individual’s personally identifiable information to Alliant.
c. Ownership. Except as otherwise expressly stated in this Agreement, Client will retain all ownership rights in the Media and other Client-provided information. Alliant will retain all ownership rights to all information, data, benefit analysis, materials, specifications, and products supplied by Alliant (collectively, “Work Product”), together with all intellectual property rights in the Work Product. Work Product is solely for use by Client and its Plan(s) and may not, without Alliant’s prior written consent, be shared with anyone other than Client’s employees and advisors who have a legitimate need to know, Plan participants and beneficiaries, or as required by law.

7. Term and Termination.
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. a. Term. Unless terminated in accordance with this Section 7, this Agreement will have an initial term of three years from the Effective Date (“Initial Term”), after which it will automatically renew for two successive one-year periods (“Renewal Term(s)”).

The Initial Term and all Renewal Term(s) are collectively the “Term.” b. Termination.
i. For Convenience. Either Party may terminate this Agreement by notifying the other Party in writing of its intent not to renew the Agreement at least 60 days before the end of the Initial Term or the then-current Renewal Term.

Additionally, during any Renewal Term, either Party may terminate this Agreement for any reason upon 90 days’ prior written notice. ii. For Cause. During the Initial Term or any Renewal Term, either Party may terminate this Agreement if the other Party’s material breach remains uncured for 30 days following its receipt of the terminating Party’s written notice of the breach.
c. Final Fees. No later than 30 days after this Agreement’s termination, Alliant shall issue a final invoice for any services performed and expenses incurred by Alliant on or before the Agreement’s effective date of termination and that remain payable by Client. The Client shall pay such invoice within 45 days of its receipt of the invoice. d. Survival. Except as otherwise stated in this Agreement, the rights and obligations contained in Sections 5, 7, 8, 9, 10, and 11 of this Agreement shall survive the termination of this Agreement.

8. Indemnification.
a. Claims Subject to Indemnification. With respect to any action, claim, suit, investigation, or proceeding brought by a third party and that arises out of this Agreement (each, a “Third Party Claim”), each Party (“Indemnitor”) shall indemnify, defend, and hold harmless the other Party, including its affiliates and each of their officers, directors, employees, and assigns (each, an “Indemnitee”), from and against all losses, damages, claims, fines, penalties, costs, and expenses (including reasonable attorneys’ fees) (collectively, “Losses”) arising out of that Third Party Claim to the extent the Losses resulted from the Indemnitor’s breach of this Agreement, negligence, willful misconduct, and/or violation of applicable law or regulation.
b. Process. Indemnitee shall promptly notify Indemnitor in writing of any claims subject to indemnification under this Section 8, provided that Indemnitee’s delay in providing such notice will not relieve Indemnitor of its indemnification obligations except to the extent that Indemnitor is materially prejudiced by the delay. Indemnitor, at its sole expense, will have the right to control the defense and settlement of the claim.

Indemnitor may settle or consent to the entry of any judgment with respect to any claim involving only the payment of money, but shall not, without the Indemnitee’s prior written consent, which shall not be unreasonably withheld, settle any other claim or consent to any judgment that obligates Indemnitee to take any independent action or pay money. Indemnitee shall reasonably cooperate with the Indemnitor, at Indemnitor’s expense, in connection with the defense of any claim subject to this Section 8 and shall, at the Indemnitor’s expense, provide all information reasonably requested for defense of such claim. The Indemnitee may, at its own expense, retain separate counsel and participate in (but not control) any action under this Section 8. #1..
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

9. Limitation of Liability. Alliant will not be liable to Client for any special, indirect, consequential, or punitive damages arising out of this Agreement, even if Alliant knows of the possibility of such damages. Additionally, Alliant will not be liable to Client for damages of any kind in an amount in excess of the total amount Client paid to Alliant for the Services in the twelve-month period preceding the incident giving rise to such liability. Notwithstanding the foregoing, nothing in this Section 9 shall limit a Party’s indemnification obligations under Section 8 or limit a Party’s liability resulting from the Party’s fraud, gross negligence, or willful misconduct.

10. Miscellaneous.
a. Independent Contractor. Alliant is an independent contractor for Client. This Agreement does not create a partnership, joint venture, franchise, employment, or any agency relationship between the Parties. Neither Party has any authority to act on behalf of the other Party or bind the other Party in any respect; provided, however, that Alliant has the authority to act as a broker on behalf of Client as contemplated hereunder.
b. Notice. All notices given under this Agreement shall be in writing and deemed given:
(i) on the business day when delivered personally; (ii) one business day after being sent by a reputable overnight courier services (charges prepaid); or (iii) five business days after being sent by certified mail (charges prepaid). Notices must be sent to the Party’s following address or any other address that the Party designates by proper notice:

If to Client: If to Alliant:

City of Modesto Alliant Insurance Services, Inc.
1010 Tenth Street 560 Mission Street
Suite 6100 6
th Floor
Modesto, CA 95354 San Francisco, CA 94105
Attn: Christina Alger Attn: Christine Kerns
With a copy to:

General Counsel
701 B Street, 6th Floor
San Diego, CA 92101
c. Governing Law; Venue. This Agreement will be governed by and construed in accordance with the laws of California without regard to its conflicts of law principles, and the Parties each consent to the exclusive jurisdiction of the state and federal courts in California.
d. Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party, except that prior written consent will not be required for a Party to assign this Agreement to its successor in interest after a merger, consolidation, reorganization, or sale of substantially all of that Party’s assets.

Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the Parties and their permitted successors and assigns. #1..
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. e. Waiver. A Party’s failure to enforce any provision of this Agreement shall not be construed as a waiver of that provision and shall not prevent the subsequent enforcement of each and every provision of this Agreement. f. No Third Party Beneficiaries. Except as stated in this Agreement, this Agreement does not create any right or cause of action in or on behalf of any person or entity other than the Parties.
g. Entire Agreement; Amendments; Severability. This Agreement, together with its attached schedules, constitutes the entire agreement between the Parties relating to its subject matter and supersedes all prior or contemporaneous agreements, negotiations, representations and proposals of any kind, whether written, oral, express or implied, related to its subject matter. Any modification to this Agreement must be in writing and signed by authorized representatives of both Parties. If any provision of this Agreement is declared invalid by a court of competent jurisdiction, that provision will be severed from this Agreement without affecting the validity or enforceability of all other provisions of this Agreement, which will remain in full force and effect.
h. Construction. The Parties jointly negotiated the terms of this Agreement and each Party has had an opportunity to review and discuss each provision with legal counsel, to the extent desired. Therefore, the normal rule of construction that construes any ambiguities against the drafting party shall not be employed in the interpretation of this Agreement.
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Version 01/12/2022 8
Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

SO AGREED:

City of Modesto
By: _________________________________
Name: Christina Alger
Title: Director of Human Resources
Alliant Insurance Services, Inc.

By: _________________________________
Name: Christine Kerns
Title: Executive Vice President
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

SCHEDULE I
Services

1. Plans and Lines of Coverage. The services set forth in Schedule I.a. apply to the following Client’s current group benefits programs. Core benefits included:
 Medical benefit plans
 Pharmacy benefit plans
 Dental benefit plans
 Vision benefit plans
 Employee Assistance Programs
 Life and Accident insurance plans
 Disability insurance plans
 Administrative plans (does not include provision of actual TPA services) o Flexible Spending Accounts
o Health Savings Accounts (HSA)
o COBRA
 Wellness plans
 Voluntary benefits plans
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Version 01/12/2022 10
Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. a. Standard Services
Service Frequency
Overall Strategy
Set/review goals and objectives against financial strategies Annually Evaluate market trends, competitive environment, and culture Annually Develop/refresh multiyear strategic glide path and financial plan to support goals and objectives Annually
Benchmark plan designs, costs and contributions Annually Facilitate planning meetings and prepare executive-level documents as necessary
Annually
Evaluate funding and risk retention strategies As Needed Develop and manage service/benefit calendar Annually
Develop custom benchmarking As Needed
Financial and Renewal Management
Deliver expected vs. budget reports including claim experience, fixed fees, and high cost claims
As available
Prepare pre-renewal analysis to inform renewal strategy Annually Initiate renewals with vendors, negotiate annual rates and terms and conditions Annually
Conduct self-insured underwriting analysis Annually
Price plan design alternatives Annually
Develop employer premiums and calculate COBRA rates Annually Model employee contributions Annually
Develop budget projections Annually
Calculate annual reserve (IBNR) estimates Annually
Marketing and Placement Support
Prepare request for proposals (RFP) - evaluate potential vendors and develop bid specifications As needed
Conduct detailed bid analysis – compare financial and quality responses, review plan designs, evaluate alternative cost and funding alternatives, negotiate performance guarantees
As needed
Facilitate finalist meetings and scorecard analysis; negotiate best and final rates As needed
Implementation support: facilitate project plan management, review administrative agreements and contract terms and conditions As needed Conduct network discount and disruption analysis As needed Vendor Management
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

Service Frequency
Manage and regularly evaluate insurance carrier and service provider relationships Ongoing
Conduct utilization review meetings Annually
Support escalated claim or plan design issues As needed Review plan document changes (contracts, policies, SBCs) Annually Health, Well-being and Productivity
Develop well-being strategy (including incentive design) in combination with annual benefit objective setting and strategy discussions Annually Assist in navigating the vendor landscape as it pertains to well-being programs and point solutions Ongoing
Support marketing of vendors As needed
Provide access to standard communication toolkit including monthly newsletter, annual communications calendar, health educational flyers and pamphlets on relevant health conditions and well-being initiatives As needed
Share clinical opinion guides and infographics on common topics such as preventive care, cancer, diabetes, stress, screenings and biometrics As needed Support annual review of program engagement, participation and outcomes reports and provide feedback and recommendations As needed Provide templates for employee and employer surveys and assessments As needed Compliance
Offer ongoing education through webcasts, podcasts, white papers, and legislative alerts Ongoing
Provided daily Q&A support by designated Alliant compliance consultant on client’s group health plan compliance questions, e.g. ERISA, COBRA, HIPAA, ACA, section 125, etc.

Ongoing
Provide consolidated annual notices package that includes the main Federal requirements including Medicare Part D, HIPAA privacy, Women’s Healthcare Rights Act
Annually
Provide template documents for ERISA compliance including wrap plan documents, SPD’s, Summary Material Modifications, COBRA model notices, customizable HIPAA Privacy and Security policies and procedures As needed
Access to Human Resources Support Service, e.g., HR Workplace or similar service Ongoing
Communications
Facilitate communication strategies for open enrollment and new hires Annually Assess current communication materials provided by vendors and developed in-house Annually
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Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

Service Frequency
Draft open enrollment materials based on Alliant’s template materials including announcement letter/email, open enrollment PowerPoint, benefit guides
Annually
Provide consolidated annual notices package that includes the main Federal requirements including Medicare Part D, HIPAA privacy, Women’s Healthcare Rights Act
Annually
Coordinate vendor materials and supplies to support open enrollment Annually Provide access to library of videos and educational materials As needed Offer professional voiceover recordings As needed
Coordinate translation services As needed
Conduct open enrollment meetings and/or virtual or live benefits fairs Annually Alliant Medicare Solutions including provision of educational materials and decision support for employees eligible for Medicare via employer-specific toll-free number
Ongoing
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Version 01/12/2022 13
Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

SCHEDULE II

COMPENSATION DISCLOSURE
As consideration for the Services Alliant provides pursuant to this Agreement, Alliant will receive the compensation set forth below.

Alliant may be paid both direct and indirect compensation for the Services provided. Indirect compensation may include both base and contingent commissions from certain insurance carriers.

Contingent commissions are generally calculated at the calendar year end and contingent upon a number of factors not directly related to Client’s plan. Whether Alliant receives contingent commissions is a decision made exclusively by each carrier based on their own unique set of factors. These factors include the overall number of employer plans and/or plan participants in plans for which Alliant placed insurance, and retention rates, among others. In general, payment of contingent commissions does not impact your plans’ premiums. Historically, these contingent commissions are in the ranges noted in the table below. Alliant uses this contingent and supplemental compensation to staff and resource proprietary programs specifically designed to maximize the performance of your plan and provide the highest quality experience for your employees and their dependents.

1. Direct Compensation.
a. Fees. Client shall pay Alliant the following fees for the Services set forth above.

Policy Year Fee
2/1/2025 98,000
2/1/2026 98,000
2/1/2027 98,000
For subsequent optional policy years, fee will remain at $98,000. b. Payment. Client shall pay any fee hereunder within 45 days of its receipt of Alliant’s monthly invoice.

2. Indirect Compensation.

Projected Base Compensation
Carrier/ Vendor Funding Type Line of Coverage
Base
Compensation
Standard Fully-insured Term Life & AD&D 10%
Standard Fully-insured Supplemental Life 10%
Standard Fully-insured Disability 10%
a. Contingent Commission Opt Out. As set forth above, Alliant may receive income as a result of contingent commission agreements with certain insurance carriers.

Client may opt-out of having its plan premiums included in the calculation of these #1..
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Version 01/12/2022 14
Alliant Employee Benefits, a division of Alliant Insurance Services, Inc.

CA License No. 0C36861. © 2024 Alliant Insurance Services, Inc. contingent commissions by accessing the “opt-out” form from the link on Alliant’s website: http://www.alliant.com/Legal-Notices/Pages/Disclosure-Policy.aspx. The parties acknowledge that these commissions, if any, are determined by insurance carriers, and if the Client does not opt-out, it remains the carriers’ exclusive decision to include or exclude certain premiums in any calculation. The availability of information related to the carriers’ decision-making process on the payment of these contingent commissions is solely within the discretion of each insurance carrier. Note that if your organization has opted out of contingent or override commissions, Alliant returns those commissions to the carrier per the opt-out request, if received. b. Noncash Compensation. Alliant may, as is standard in the industry, receive certain non-cash compensation from Plan insurance carriers, vendors, and service providers that is not connected to any particular employer plan or Alliant client. Provision of non-cash compensation is solely within the discretion of the entity providing Alliant the non-cash compensation. This compensation can include gifts valued at less than $100 annually, an occasional dinner, or ticket to a sporting event, or other entertainment, or reimbursements in connection with educational meetings or training events, client workshops or events, or marketing or advertising initiatives. Plan vendors, insurance carriers, and service providers may also occasionally pay or reimburse Alliant for the costs associated with, education or training events that certain Alliant team members attend, and for Alliant sponsored conferences and events.
c. Changes in Compensation. As required under ERISA 408(b)(2), Alliant will provide timely, updated disclosures for any changes in the compensation set forth above. d. Changes in Services. If Client requests a change in Services or if changes in Client’s size, operations, or organization require a change in the scope and/or nature of the Services and/or Plans, the compensation described in this Section 1 will be adjusted accordingly.
e. Disclosure by Other Plan Service Providers. Any other plan service provider that is subject to the 408(b)(2) disclosure requirements is required to make its own independent 408(b)(2) disclosure and any such disclosure is not included in this Agreement.

3. Services Included in Cost of Premium. In addition to the compensation described in this Schedule II, Alliant and/or its related entities may receive additional compensation for underwriting, program administration, and other services that are (a) provided to either Client or the insurance carrier, (b) not contracted for directly by Client, and (c) outside the scope of Services described in Schedule I. This additional compensation, if any, will be included in the cost of the premium Client pays to the carrier and accordingly, will create no additional cost for Client. Notwithstanding this paragraph, any services contracted for directly by Client may be subject to additional costs, as provided in Section 1 above. #1..
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$490,000;$98,000annually.

Human Resources
Brokerage services for Medical and ancillary employee benefits Alliant Brokerage Services
Christine Kerns 714-585-4138
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WTWDOFRPPW

RWWFRORJPWWFWDWRYWFRORJWJD
$OJPWRPPWW $BBBBRBBBB
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5TWR
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RPPW
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Dawn Kelley 10/01/2024
Christina Alger
Armando Fabro
Dianne Love
DeAnna Christensen
10/1/2024
Alliant Brokerage Services is the sole source insurance broker to obtain insurance products and services from Public Risk Innovation, Solutiuons and Management Programs (PRISM).

Alliant and Prism jointly developed their unique product in 1978 and have not changed brokers of record since inception. Attached is the current Brokerage Agreement which outlines the relationship between Alliant and PRISM. Duties are clearly identified on page 7, section 11 and in the Addedum A1-A10. Average increase for COM over the prior four years with PRISMHealth Medical was (4.45%). PPO Trend is 7.50% and CalPERS is 11.71%. If City of Modesto leaves the PRISMHealth Program we cannot rejoin for 3 years. That could put COM in a vulnerable position for higher rates with no choices for cost containment. #1..
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AlliantInsuranceServicesBidWaiverUnsigned
FinalAuditReport 2024-11-25
Created: 2024-11-25
By: JuanaLynch([email protected])
Status: Signed
TransactionID: CBJCHBCAABAAYUMO7qcgaaZV3-if2_sEktaOkOKE1E_i "AlliantInsuranceServicesBidWaiverUnsigned"History
DocumentcreatedbyJuanaLynch([email protected])
2024-11-25-7:16:04PMGMT
DocumentemailedtoCelestiaLove([email protected])forsignature 2024-11-25-7:17:57PMGMT
EmailviewedbyCelestiaLove([email protected])
2024-11-25-7:43:27PMGMT
Documente-signedbyCelestiaLove([email protected])
SignatureDate:2024-11-25-7:45:01PMGMT-TimeSource:server DocumentemailedtoDeAnnaChristensen([email protected])forsignature 2024-11-25-7:45:05PMGMT
EmailviewedbyDeAnnaChristensen([email protected]) 2024-11-25-8:46:47PMGMT
Documente-signedbyDeAnnaChristensen([email protected]) SignatureDate:2024-11-25-8:47:14PMGMT-TimeSource:server Agreementcompleted.
2024-11-25-8:47:14PMGMT
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MODESTO CITY COUNCIL
RESOLUTION NO. 2019-54

RESOLUTION APPROVING AN AGREEMENT WITH ALLIANT INSURANCE SERVICES, INC. FOR INSURANCE BROKER SERVICES FOR THE CITY’S

MEDICAL COVERAGE PLAN AND AUTHORIZING THE CITY MANAGER,

OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT
WHEREAS, the City of Modesto provides its employees with employee and dependent health insurance coverage; and
WHEREAS, the City contacted Alliant Insurance Services immediately following notice of the current health plan provider’s failures to obtain alternative coverage options; and
WHEREAS, Alliant Insurance Services obtained quotes directly from the market and from EIA Health through CSAC, a Joint Power Agency (JPA); and WHEREAS, after reviewing options, EIA Health was determined most comprehensive and affordable; and
WHEREAS, the City’sself-insured dental and vision plan designs and administration will remain the same.

NOW, THEREFORE,BE IT RESOLVED by the Council of the City of Modesto that the Council hereby approves an agreement with Alliant Insurance Services, Inc. for participation in group medical insurance coverage.

BE IT FURTHER RESOLVED that the Council hereby approves the continuation of dental and vision coverage through the City’s self-insured programs.

BE IT FURTHER RESOLVED that the Director of Human Resources is hereby authorized to serve as the coordinator for the various plans. 02/05/2019/HR/NSantoyo/Item 18 2019-54
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BE IT FURTHER RESOLVED that the City Manager is authorized to pay the difference between the old premiums and the new premiums for a period not to exceed 4 months from the Employee Benefits Fund as to minimize the harm or disruption as a result of this unplanned transition in health insurance premiums.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute all necessary agreements relating to employee and dependent health care as set forth herein, in a form approved by the City Attorney.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 5
th day of February, 2019, by Councilmember Ridenour,
who moved its adoption, which motion being duly seconded by Councilmember Ah You, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: Ah You, Kenoyer, Madrigal, Ridenour, Zoslocki, Mayor Brandvold
NOES: Councilmembers: None
ABSENT: Councilmembers: Grewal
ATTEST:

STEPHANIE LOPEZ, Cit/Clerk
(SEAL)
APPROVED AS TO FORM:

By:

ADAM U. LINDGREN,City Ajtfbmey
02/05/2019/HR/NSantoyo/Item 18 2019-54
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 16, 2024
Date: December 6, 2024
TO: Finance Committee
Nick Bavaro, Chair
Rosa Escutia-Braaton, Vice-Chair
David Wright, Committee Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Employers Choice Screening Pre-Employment Background Services Agreement CONTACT: Dawn Kelley, Human Resources Manager
[email protected], 209-577-5490
DESCRIPTION:

Consider an Agreement with Employers Choice Screening (ECS), Santa Fe Springs, CA to conduct Pre-Employment Background Checks for an amount not to exceed $125,000 over five (5) years and forwarding to Council for approval. (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:

This item supports the 2020-2025 Strategic Plan’s Service and Delivery Goals & Strategies - Building a High-Performing Organization by Attracting and Retaining High Performance Employees.

BACKGROUND:

Local governments across the state, including City of Modesto, utilize professional third-party background check companies to perform their pre-employment background checks. It is one way the City can build a high-performance organization that attracts and retains high performance employees. Pre-employment background checks provide confirmation about a candidate’s qualifications, verification of education/ employment and ensures a safer work environment through responsible hiring practices.

The Human Resources Department has utilized the existing third-party background check vendor Employee Relations, Inc. since January 31, 2020 to conduct time-consuming background checks.

The total amount of funds, approved by Council most recently under the fourth amendment by Resolution No. 2024-416, on November 12, 2024, to be expended within the agreement was not to exceed $100,000. Costs of this service have increased due to an influx of new hires, and dramatic increases in costs of some individual background checks. #2..
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Finance Committee, December 16, 2024
Employers Choice Screening Pre-Employment Background Services Agreement

Page 2 of 3 ends

Using a third-party provider assists the City in maintaining a compliant background screening program and mitigates potential legal risks. ECS can professionally and legally conduct time consuming and difficult background checks ensuring all Federal, State, and local laws and regulations are followed.

DISCUSSION:

Using a dedicated professional services third-party background company has proven successful for the City, and it is critical the City retain professional services to conduct pre-employment background checks for current needs.

On May 9, 2024, the City Manager authorized the HR Manager to solicit the procurement for PreEmployment Background Checks. On May 9, 2024, the Human Resource Department issued Request for Proposals (RFP) #2324-91 for the Pre-Employment Background Checks on the City’s PlanetBids public bidding website under various commodity codes1. Prospective bidders were notified online and via email of the bid opportunity. Thirty (30) companies downloaded the RFP document from PlanetBids.

On June 6, 2024, proposals were opened electronically. Seven (7) chose to respond, there were no local proposals received. An evaluation committee comprised of four (4) City staff members which included the HR Manager, HR Technicians, and HR Analyst evaluated the proposals. The evaluation was based on the following criteria which was captured in the City’s RFP document:

1. Principal Staff Contact

2. Qualifications

3. References

4. Costs

5. Software Security
Based on being ranked highest in total evaluation criteria, the evaluation committee recommends the award of proposal for the Pre-Employment Background Checks to Employers Choice Screening (ECS), Santa Fe Springs, CA. Employers Choice Screening (ECS) ranked highest on the following criteria:
 Ability to address all RFP Requirements
 Provided overview of pre-employment background check process  Principal Staff Contact
 References
 Software Security
 Integration with NEO-GOV
 Overall cost
In accordance with Modesto Municipal Code Section 8-3.203 which requires all purchases, whose total maximum cost exceeds $100,000 for material, equipment, or contractual services to follow the formal bid procedures. In accordance with Modesto Municipal Code 8-3.204 (a) Exceptions to Formal Bidding Requirements, Agreements for Professional Services are exempt from the 1 91800-Consulting Services, 91858-Governmental Consulting, 91865-Human Relations Consulting, 91885-Personnel/Employment Consulting (Human Resources), 96130-Employment Agency and Search Firm Services (Including Background Investigations and Drug Testing For Employment), 96162-Personnel Services (Not Employment) #2..
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Finance Committee, December 16, 2024
Employers Choice Screening Pre-Employment Background Services Agreement

Page 3 of 3 ends

bidding requirements of Modesto Municipal Code 8-3.203 if competitive quotations or proposals have been sought informally from at least three (3) qualified entities. An approval to provide PreEmployment Background Services to Employers Choice Screening conforms to Modesto Municipal Code 8-3.204, subsection (a) as they are providing professional services. Staff received seven (7) proposals and evaluated them based on the ability to address the RFP requirements, qualifications, references, software security, integration, and cost.

FISCAL IMPACT:

The cost is estimated at $25,000 annually with the total amount not to exceed $125,000 during term of the proposed five (5) year agreement. Funding will be absorbed through vacancy savings from the given position within the applicable departments’ existing budget. Funds affected will be determined by the hiring needs over the term.

Below is a summary of the last five-year spending for the current agreement with Employee Relations, Inc.

Period Amount Released
Year 1 $ 5,336
Year 2 $ 11,962
Year 3 $ 21,999
Year 4 $ 22,983
Year 5 (thru 01/30/2025) $ 1,556
Total $ 63,836
RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending an Agreement with Employers Choice Screening (ECS), Santa Fe Springs, CA to conduct Pre-Employment Background Checks for a three (3) year Agreement with two (2) one-year extension options, for an estimated annual amount of $25,000 and total amount not to exceed $125,000 over five (5) years and forwarding to Council for approval.

Christina Alger, Director of Human Resources
Joseph P. Lopez, City Manager
Attachments:

1. Agreement Standard Consultant Employers Choice Screening

2. RFP Employers Choice Screening Submission

3. Exhibit A Employers Choice Screening Scope of Work

4. Exhibit B Employers Choice Screening Rate Sheet

5. RESO 2024-416 Employee Relations
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STANDARD AGREEMENT

FOR CONSULTANT SERVICES
THIS AGREEMENT for Consulting Services (“Agreement”) made and entered into in the City of Modesto, State of California, this 10th day of December, 2024, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "CITY", and EMPLOYERS CHOICE SCREENING, a California corporation, hereinafter referred to as "CONSULTANT".

This AGREEMENT is made with regard to the following recitals:
a. The CITY has determined there is a need for pre-employment background screening services and a service agreement should be prepared for the CITY to utilize Employers Choice Screening. b. CONSULTANT represents that it is qualified, willing, and able to provide the services to prepare said document(s).

NOW, THEREFORE, in consideration of this AGREEMENT, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:

1. SCOPE OF SERVICES.

CONSULTANT shall undertake and complete the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit "A" or "Project", incorporated herein by this reference.

2. TERM OF AGREEMENT.

The term of the AGREEMENT shall be for a period of three (3) years, with two (2) one-year extension options at the sole discretion of CITY, for a total of up to five (5) years.

Year 1: December 01, 2024 through November 30, 2025
Year 2: December 01, 2025 through November 30, 2026
Year 3: December 01, 2026 through November 30, 2027
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Year 4: December 01, 2027 through November 30, 2028
Year 5: December 01, 2028 through November 30, 2029
Price increases for subsequent AGREEMENT years, four and, five shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONSULTANT in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

3. COMPENSATION.

CONSULTANT agrees to accept a sum not to exceed $125,000 (maximum compensation) as full remuneration for performing all services for Modesto in accordance with Exhibit "A.” The Compensation shall be paid pursuant in the manner and at the times set forth below:

CITY shall pay CONSULTANT on a time and materials basis for CONSULTANT’s actual costs for all work called for in Exhibit “A” to this AGREEMENT. All work to be performed under this AGREEMENT shall be billed at the rates set forth in Exhibit “B” attached hereto and incorporated herein. CONSULTANT shall submit monthly invoices to CITY which include detailed fees, packages, and court costs for all work completed, and detailed receipts for any reimbursable expenses paid by CONSULTANT and identified in Exhibit “B” or approved by the CITY in writing.

CITY shall pay CONSULTANT “Net 30 terms via CITY’s ePay Program” or “Net 45 Days via manual check”.

4. OBLIGATIONS OF CONSULTANT.

Throughout the term of this AGREEMENT, CONSULTANT shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business. CONSULTANT warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, #2..
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facilities and other resources necessary to provide the CITY with the services contemplated by this AGREEMENT. CONSULTANT further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.

5. PERFORMANCE BY KEY EMPLOYEE.

CONSULTANT has represented to CITY that Jesus Ariel Lopez, Contracts Manager will be the person primarily responsible for the performance of the services referred to in this AGREEMENT. CITY has entered into this AGREEMENT in reliance on that representation by CONSULTANT.

6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.

Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the CITY, and may be used, reused, or otherwise disposed of by CITY as it may require without any additional cost to CITY. No reports shall be used by the CONSULTANT for purposes other than this contract without the express prior written consent of CITY.

Title to Data
If, as a part of the AGREEMENT, CONSULTANT is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the originals of all such data generated under this AGREEMENT will be delivered to CITY upon the completion or termination of services under the contract. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the CITY and are not necessarily suitable for any future or other use.
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All materials, documents, data or information obtained from the CITY data files or any CITY medium furnished to CONSULTANT in the performance of this AGREEMENT will at all times remain the property of the CITY. Such data or information may not be used or copied for direct or indirect use by CONSULTANT after termination of this AGREEMENT without written consent of the CITY.

7. NEWS AND INFORMATION RELEASE.

CONSULTANT agrees that it will not issue any news releases in connection with either the award of this AGREEMENT, or any subsequent amendment of or efforts under this AGREEMENT, without first obtaining review and approval of said news releases from the City Manager.

8. CONFLICT OF INTEREST.

CONSULTANT warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would create a “conflict of interest”, as that term is defined in the Political Reform Act (Gov. Code § 81000 et seq), for the CONSULTANT in the performance of this AGREEMENT.

CONSULTANT warrants that, in performance of this AGREEMENT, CONSULTANT shall not employ any person having any such interest. CONSULTANT understands that, if this AGREEMENT is made in violation of Government Code § 1090 et seq., the entire AGREEMENT is void and CONSULTANT will not be entitled to any compensation for services performed. CONSULTANT agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this AGREEMENT if so, required at the option of CITY.

9. AMENDMENTS.

This AGREEMENT, including the Exhibits attached hereto, may be amended only by a writing signed by both Parties. CITY will not be responsible to pay any charges CONSULTANT may incur in performing services not identified in Exhibit ‘A’ unless first authorized by the CITY in writing.

10. INDEPENDENT CONTRACTOR.
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All acts of CONSULTANT, its agents, officers, and employees and all others acting on behalf of CONSULTANT relating to the performance of this AGREEMENT, shall be performed as independent contractors and not as agents, officers, or employees of CITY. Except as CITY may specify in writing, CONSULTANT has no authority to bind or incur any obligation on behalf of CITY. CONSULTANT has no authority or responsibility to exercise any rights or power vested in the CITY. It is understood by both CONSULTANT and CITY that this AGREEMENT shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture. CONSULTANT, its agents, officers and employees are and, at all times during the terms of this AGREEMENT, shall represent and conduct themselves as independent contractors and not as employees of CITY.

CONSULTANT shall determine and control the method, details and means of performing the work and services to be provided by CONSULTANT under this AGREEMENT. CONSULTANT shall be responsible to CITY only for the requirements and results specified in this AGREEMENT, and, except as expressly provided in this AGREEMENT, shall not be subjected to CITY's control with respect to the physical action or activities of the CONSULTANT in fulfillment of this AGREEMENT. CONSULTANT is permitted to provide services to others during the same period service is provided to CITY under this AGREEMENT. If necessary, CONSULTANT has the responsibility for employing other persons or firms to assist CONSULTANT in fulfilling the terms and obligations under this AGREEMENT.

If in the performance of this AGREEMENT any third persons are employed by CONSULTANT, such persons shall be entirely and exclusively under the direction, supervision, and control of CONSULTANT. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the CONSULTANT.

It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONSULTANT or CONSULTANT's assigned personnel shall have any entitlement as a CITY #2..
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employee, right to act on behalf of the CITY in any capacity whatsoever as an agent, or to bind the CITY to any obligation whatsoever. It is further understood and agreed that CONSULTANT must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of CONSULTANT's personnel.

11. ASSIGNMENT.

Neither this AGREEMENT nor any portion thereof shall be subcontracted or assigned, other than noted in Exhibit ‘A’, without the express prior written consent of the CITY in each and every instance.

12. PATENT/COPYRIGHT MATERIALS.

Unless otherwise expressly provided in the contract, CONSULTANT shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this AGREEMENT. CONSULTANT shall furnish a warranty of such right to use to CITY at the request of CITY.

13. NOTICES.

Notice required by this AGREEMENT shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with the provisions of this Section.

Notices shall be delivered either by: (a) personal delivery; (b) overnight courier service which obtains confirmation of delivery; or (c) certified mail, return receipt requested, if delivery is confirmed by a return receipt; or (d) by electronic transmission subject to reasonable proof that the notice was both transmitted and received. Each such notice shall be sent to the parties at the address respectively set forth below or to such other address as a party may designate by written notice given in accordance with the provisions of this Section:

FOR CONSULTANT: Name: Jesus Ariel Lopez, Contracts Manager Address: Employers Choice Screening
Attention: Jesus Ariel Lopez, Contracts Manager
Phone: (562)319-0413, ext. 104
Email: [email protected]
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CITY: Name: City of Modesto
Address: Purchasing Division
P.O. Box 642
Attention: Modesto, CA 95353
Phone: (209) 577-5412
Facsimile: (209) 544-8821

14. INSURANCE REQUIREMENTS.

During the term of this AGREEMENT, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit (C) to this AGREEMENT , attached hereto and incorporated herein by this reference, and shall otherwise comply with the other provisions of Exhibit (C) to this AGREEMENT. The city utilizes a software program “PINS Advantage” where vendor is responsible for uploading and maintaining updated insurance.

15. TERMINATION OF AGREEMENT.

Termination for Default
In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance.

Within ten (10) days after receipt of notification, the breaching party shall correct any non-performance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

Termination by City for Convenience
CITY may cancel this AGREEMENT at any time, with or without cause, upon written notification to CONSULTANT.

Post-Termination Procedure
Upon receipt of a written notice of termination, the CONSULTANT shall:
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a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subconsultants and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontractors except as necessary to complete any portion of the work that is not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any CONSULTANT or subconsultant include lost profits for portions of the Work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONSULTANT in performing the work whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the Project as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the Project and/or property related to the Project; h. If CITY so requests, and at CITY's cost, CONSULTANT shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONSULTANT's work on the project.
i. The CONSULTANT understands and agrees that CITY may, in CITY's sole discretion, refuse to pay CONSULTANT for that portion of CONSULTANT's services which were performed by #2..
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CONSULTANT on the project prior to the termination date and which remain unacceptable and/or not useful to CITY as of the termination date.

CITY will pay CONSULTANT for work actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONSULTANT after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
j. The cost of settling and paying valid claims arising out of the termination of the work such as subconsultant AGREEMENTs or contracts for materials;
k. The AGREEMENT price allocable to the portion of the work properly performed, or goods supplied to the work site by the CONSULTANT as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONSULTANT.

16. INDEMNITY.

If CONSULTANT is Design Professional, pursuant to the full language of California Civil Code §2782, Design Professional agrees to indemnify, including the cost to defend, CITY, its agents, officers, employees and volunteers, harmless from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Design Professional and its employees or agents in the performance of services under this contract, but this indemnity does not apply to liability for damages arising from the sole or active negligence, or willful acts of the CITY; and does not apply to any passive negligence of the CITY unless caused at least in part by the Design Professional. The CITY agrees that in no event shall the cost to defend charged to the Design Professional exceed that professional’s proportionate percentage of fault. This duty to indemnify shall not be waived or modified by contractual AGREEMENT or acts of the parties. #2..
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If CONSULTANT is not a Design Professional, the CONSULTANT shall hold the CITY, its agents, officers, employees, and volunteers harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONSULTANT, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the CITY.

CONSULTANT's obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONSULTANT to procure and maintain a policy of insurance.

In the event that CONSULTANT or any employee, agent, or subcontractor of CONSULTANT providing services under this AGREEMENT is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of CITY, CONSULTANT shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONSULTANT or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.

17. DISPUTE RESOLUTION.

Venue for all claims, controversies, or disputes arising out of, or relating to the formation of this AGREEMENT, or the breach, termination execution, enforcement, interpretation, or validity of this AGREEMENT, including the determination of the scope or applicability of this contract provision shall be in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.
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18. ATTORNEY’S FEES.

If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

19. ENTIRE AGREEMENT.

This AGREEMENT and its exhibits contain the entire understanding between CONSULTANT and CITY. All previous proposals, offers and communications relative to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT.

20. PARTIAL INVALIDITY.

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

21. WAIVER.

The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

22. AUDIT.

The CITY's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify CONSULTANT's charges to CITY under this AGREEMENT.
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CONSULTANT agrees to retain reports, records, documents, and files related to charges under this AGREEMENT for a period of four (4) years following the date of final payment for CONSULTANT services. CITY's representative shall have the right to reproduce any of the aforesaid documents.

23. GOVERNING LAW.

This AGREEMENT shall be governed according to the laws of the State of California.

24. HEADINGS NOT CONTROLLING.

Headings used in the AGREEMENT are for reference purposes only and shall not be considered in construing this AGREEMENT.

25. COMPLIANCE WITH LAWS.

CONSULTANT shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. CONSULTANT shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.

26. CITY BUSINESS LICENSE.

CONSULTANT will have a City of Modesto business license. #2..
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this AGREEMENT by its City Manager and attestation by its City Clerk under authority of Resolution No. 20 -______, adopted by the Council of the City of Modesto on the ______ day of ________________, 20 , and Employers Choice Screening has caused this AGREEMENT to be duly executed as of the Effective Date.
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Exhibit C:

Insurance Requirements for Professional Services
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification, it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Modesto requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Modesto.

Umbrella or Excess Coverage
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement.

This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

The insurance policies are to contain, or be endorsed to contain, the following provisions:
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Additional Insured Status
The City of Modesto, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations.

General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance with coverage equal to ISO form CG 2010. If Completed Operations endorsement is required, a separate endorsement equal to ISO form CG 2037 is required.

Primary Coverage
The Additional Insured coverage under the Contractor’s policy shall be “primary and non-contributory” and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13. The City of Modesto does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Modesto.

Waiver of Subrogation
Contractor hereby grants to City of Modesto a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Modesto by virtue of the payment of any loss under such insurance.

Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Modesto has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Modesto may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Modesto.

Claims Made Policies (applicable to Professional Liability only) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
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2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Contractor shall furnish the City of Modesto with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements are to be received and approved by the City of Modesto Risk Services before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Modesto reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Subcontractors
Contractors shall require and verify that all subcontractors, or other parties hired for this work, purchase and maintain coverage for indemnity and insurance requirements as least as broad as specified in this agreement to the extent they apply to the scope of the subcontractor’s work with the same certificate of insurance requirements and naming as additional insureds all parties to this contract.

Special Risks or Circumstances
City of Modesto reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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RFP 2324-91 Pre-Employment Background Check
Prepared for:

Kelly Rice-Ortiz, Executive Assistant
City of Modesto
1010 10th street ST #5300
Modesto, CA 95354
Prepared By:

Jesus Ariel Lopez, Contracts Manager
Employers Choice Screening
13210 Florence Ave.

Santa Fe Springs, CA 90670
E: [email protected] P: (562) 319- 0413 EXT. 104 © 2024 Employers Choice Screening, a division of ECO, Inc.

Thurs day, June 6, 2024 5:00 PM
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Background Screening Services 1 | P a g e
Table of Contents
Cover Letter .................................................................................................................................................. 2 Company Profile............................................................................................................................................ 4 Project Understanding & Experience............................................................................................................ 6 Screening Services Overview ......................................................................................................................12 Privacy and Security Information................................................................................................................19 Methodology, Quality Assurance & System Overview ...............................................................................24 Rate Sheet...................................................................................................................................................50 Required Forms...........................................................................................................................................65 #2..
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Background Screening Services 2 | P a g e
Cover Letter
June 5, 2024
1010 10th Street #5300
Modesto, CA 95354
Re: RFP 2324-91 Pre-Employment Background Check
Dear City of Modesto Purchasing Team,
We are pleased to respond to your request for a proposal regarding Background Screening Services for the City of Modesto. I am eager to introduce you and your team to Employers Choice Screening (ECS), an accredited and certified Consumer Reporting Agency (CRA) with over 20 years of experience delivering human resource-related screening services nationwide. ECS helps organizations ensure the security and credibility of their prospective employment, volunteer, and other personnel they screen and hire. We want to offer your organization the same stellar customer support, reliability, and performance we have provided similar government municipalities through our easy-to-use screening solution, tools, and streamlined applicant experience.

As a Professional Background Screening Association (PBSA) accredited firm, ECS puts an emphasis on and invests our resources in Compliance, Quality Assurance, Information Security, and Customer Service, offering the best overall investment value to all our clients. As a potential background screening partner, we offer you a competitive price offering, the highest levels of quality assurance and security processes to protect your secure information, a proactive approach to communication and response through prompt and quality customer support, and a streamlined cloud-based solution to assist you when conducting pre-employment background checks on your candidates. ECS stands by its experience, approach, methodology, customer service support, and qualified FCRA-certified team members. We will remain engaged with your team, listening, advising, and developing a complete screening solution that will remain flexible and help minimize your timeto-hire.

We offer a secure, robust, and effective cloud-based solution, allowing you to streamline your hiring process by utilizing our advanced business intelligence tools and finding the best configurable workflow to meet your hiring needs. We offer you the ease and convenience of a mobile-enabled electronic background check process, including electronic applicant consent and authorization capabilities and compliance with all FCRA requirements. Our user-friendly process allows applicants to provide their information directly through our online application, communicate with our staff through our applicant portal chat feature, and upload support documentation directly to our secure portal for quick processing. Orders may also be placed using our data entry option, through a personalized applicant portal link, or through a direct system integration with your existing ATS or HR Applicant Tracking system, NEOGOV. Our secure, cloud-based solution provides 24/7 system availability, which is ADA Compliant and fully compatible with all web browsers, making it accessible from all desktop, mobile, and smart devices. #2..
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Background Screening Services 3 | P a g e
System features include, but are not limited to:

Unlimited individual user profiles with 24/7 system
accessibility
Real-time status updates, notifications, and
customized daily workflow account notes
Applicant Order Status Portal with document
upload capabilities
Customized applicant instructions and
electronic application forms
Comprehensive and customized electronic
adverse action procedures and management tools
Readily available ad hoc report and filtering options
Batch order upload option
electronic invoice retrieval and management
By submitting a response, we acknowledge that our company has carefully reviewed your requested services and has fully informed ourselves and agreed to all existing conditions, limitations, and proposed scope of work related to this request. We will address your requirements below, explaining our company’s ability to perform all services sought and fully demonstrate our thorough knowledge and understanding of pre-employment background screening services as described in the scope of work provided. As a proposed prime vendor, we are currently staffed to meet your projected screening needs. We agree to accommodate and adjust our resources if the projected scope or volume changes over the contract term. ECS currently services a variety of industries, including, but not limited to, governmental municipalities (city/county/state/and federal), public utilities and transportation authorities, parks and recreation departments, education institutions, corporations, and a variety of different-sized commercial businesses alike. We have no defaulted, incomplete, or failed to perform contracts to report. All work has been performed through completion and has received satisfactory reviews as part of our ongoing Quality Management (QA) review process, as well as client surveys. We appreciate the opportunity to respond to your request and look forward to a potential business partnership with the City of Modesto if selected to provide our services.

Best regards,
Jesus Ariel Lopez MBA/APMP/CPSP
Vice President of Sales
13210 Florence Avenue, Santa Fe Springs, CA 90670
E: [email protected]
P: (562) 319-0413 | Ext. 104
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Background Screening Services 4 | P a g e
Company Profile
Employers Choice Screening (ECS) began as a division of a Corporate Private Investigations firm, Diversified Risk Management Inc., in 2002, offering Background Screening, Drug Testing, Occupational Health Screening, and Compliance Training services in addition to workplace investigations, harassment investigations, and other employee misconduct prevention services.

As our clients began seeing the value in implementing proactive screening services before the need for investigation into employee misconduct, Employers Choice Online Inc. was created and formed as a stand-alone S-Corp in 2011, providing a dedicated national resource of Human Resource services to corporate, commercial, and government clients across the United States.

Corporate Information
Business Name: Employers Choice Online, Inc. I DBA: Employers Choice Screening State of Incorporation: CA / Status: S-Corp / Date of Incorporation: 08/04/2011 CA State Entity Number: C3402978 I FEIN: 45-3193031 I DUNS: 078273241 Unique Entity ID (UEI): XNY3W3ESBJ83 / CAGE: 6LB09
Bus ines s Licenses and Regis tered Agent Offices
Employers Choice Screening currently holds a CA Business license in our home state and multiple foreign state business licenses, including FL, KS, NY, VA, LA, MT, TX, IL, and WA, which were acquired upon award of contracts in those states. This includes registered offices and agent staff, who work on our behalf on specific agreements and clients we serve in these states. Allocated staff and work will be performed from our main office in Santa Fe Springs, CA.

Hours of Operation Monday through Friday: 6:00 AM – 5:00 PM PST Live Chat Service – during regular business hours
Customer Support Ticket System:
[email protected]
Contact Methods
Phone: (562) 319-0413
E-Fax: (562) 261-1404
E-mail: [email protected]
13210 Florence Ave,
Santa Fe Springs, CA 90670
P: (562) 319 – 0413 / F: (562) 261-1404
W: www.employerschoicescreening.com
E: [email protected]
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Background Screening Services 5 | P a g e
Insurance Requirements
Employers Choice Screening, at its sole expense, agrees to maintain any insurance coverage required to perform work on this contract. A copy of our Insurance Policy is readily available upon request for review. Please contact Jesus Lopez, Contracts Manager, at [email protected] with a formal request, and a copy of our policy will be provided to you for review.

Certifications
ECS is a certified and registered small, disadvantaged, and minority-owned business. Please contact
[email protected] for more
certification information that may help you meet your
supplier diversity goals.

Professional Background Screening Association (PBSA / formerly NAPBS)
ECS has been an active member of the PBSA since 2004, becoming an accredited firm in 2017. Our company remains engaged and attends all midyear and annual conferences, keeping ourselves informed and educated on the latest news, updates, and current local, state, and federal laws and regulations relating to our industry. Program accreditation and continuous compliance include completing yearly audits and reviews related to our internal policies and procedures to ensure the quality and performance of our services. The accreditation program is governed by a strict and thorough set of professional standards of specified requirements, and measurements focused on information security, legal and compliance standards, a focus on client education, monitored researcher and data standards, verification service standards, and strict business practices as it relates to Background Screening.

CLICK HERE to view the PBSA Accredited Firms Directory
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Background Screening Services 6 | P a g e
Project Understanding & Experience
Experience
ECS currently services a variety of industries, including, but not limited to, governmental municipalities (city/county/state/and federal), public utilities and local and state transportation authorities, parks and recreation departments, education institutions, large corporations, and a variety of different sized businesses alike. We have no defaulted, incomplete, or failed to perform contracts to report. All work has been performed through completion and has received satisfactory reviews as part of our ongoing Quality Management (QA) review process and quarterly client surveys we receive.

By submitting a response, Employers Choice Screening acknowledges that our company has carefully read all sections of your RFP, including all forms, schedules, addendums, and exhibits hereto, and has fully informed ourselves and agreed to all existing conditions, limitations, and proposed scope of work related to this bid. We will address your requirements throughout this proposal response, explaining our company’s ability to perform all services sought and fully demonstrate our thorough knowledge and understanding of pre-employment background screening services as described in the scope of work provided.

References
County of San Diego, CA
5530 Overland, Suite 210, San Diego, CA 92123
Contact: Ramisi Briggs, Sr. HR Analyst
P: (858) 694-3620 / E: [email protected] Contract: Background Investigation Services - 560530 Term: July 2019 – Present
City of Poway, CA
13325 Civic Center Drive Poway, AC 92064
Contact: Lenai Bustos, Human Resources
P: (858) 668-4443 / E: [email protected]
Contract Info: 04/01/2024 - Present
City of Fort Lauderdale, FL
101 NE 3rd Ave, Suite 1430 Fort Lauderdale, FL 33301
Contact : Carmen Alfonso, Human Resources
P: (954) 828-4300 / E: [email protected]
Contract Info:
03/2012 – 09/2017 (contract completed through the term) 01/2019 – Present (Contract PP190764)
City of Bellevue, WA
450 110th Avenue NE. Bellevue, WA 98004
Contact: Rebecca Su, Human Resources Manager
P: (425) 452-6817 / E: [email protected]
Term: January 2019 – Present
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Background Screening Services 7 | P a g e
The Employer’s Choice Difference
Employers Choice Screening focuses on Compliance,
Quality Assurance, Information Security, and
Customer Service. We utilize a variety of trusted and
secure government-run databases directly integrated
with our screening software, in conjunction with our
network of qualified and continuously audited court
researchers (domestic and international), who
contribute record information to your overall
Background Screening Report. All information received
goes through our Quality Assurance review to ensure
the accuracy of the information being reported before
completion, minimizing the need for reinvestigation and ensuring you receive quality record information that can be used when making a sound hiring decision. Furthermore, our internal Quality Management processes continuously monitor our daily tasks, customer satisfaction, and service delivery metrics to ensure that quality standards are always met with each deliverable service we provide.

Service Commitment
As a potential background screening partner, we plan to deliver the best overall value through a competitive price offering, the highest level of quality assurance and security procedures to protect your investment, a proactive customer support approach to communication, and timely and professional responses provided, and a secure online screening solution aimed to provide a streamlined and user-friendly candidate experience which helps our clients meet their hiring objectives. Our system offers the flexibility and customization to tailor your account to meet your screening needs. Our industry-leading service offerings also come with exceptional customer support from our FCRA Advanced certified team. We will remain engaged with your team by listening, advising, and developing a complete system that will help provide long-term solutions for your organization.

Mission Statement: To exceed our client’s expectations when providing quality background screening services at the best overall value to our clients.

Vision: To empower clients with the knowledge and resources to hire qualified employees and maintain a safe workplace.

Account Management & Organizational Structure
ECS employs a team of dedicated full-time management, compliance, quality assurance, sales, and customer service staff who will be directly assigned to your account. We leverage technology to provide our services, integrating with various data providers that directly provide record information to our system for review and report completion. Additional staff needed to deliver our services, such as domestic and international court researchers, third-party data and service providers, IT system support staff, and registered agents in specific states, as needed, to meet particular contracting requirements, are not included in the total number of employees employed and can be scaled up to meet particular project requirements. #2..
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You will be assigned a dedicated Account Manager and a Customer Service Specialist to assist your HR team and its candidates with questions and daily activities related to your orders.

We provide responsive, personalized service to all clients through our 24/7 online system access, U.S.-based customer support, and direct access to our qualified and experienced FCRA-certified investigative team members. As a proposed vendor, we are currently staffed to meet your projected screening needs. We agree to accommodate and adjust our resources as needed if the projected scope or volume should change over the term of this contract.

Furthermore, ECS guarantees that the key personnel in our staffing plan will be assigned to this project throughout the contract term. If you determine that the account manager or any of our staff cannot perform in accordance with the service requirements of this contract, the named team members shall be replaced at the client's written request. Furthermore, if any personnel changes are made at any time, updated personnel will also be named with a similar assignment guarantee.

Staffing
Jesus Ariel Lopez, Vice President of Sales

MBA / APMP / CPSP
Contact Info: P: (562) 319-0413 EXT.104
E: [email protected]
Experience: 10/2015 – Present
Certifications: PBSA – FCRA Basic & Advanced Certification Mr. Lopez has been employed with ECS for nine years. He is responsible for searching and responding to contract opportunities, proposal writing, networking, attending industry trade shows and conferences, business development, and project management of all awarded government contracts. Mr. Lopez holds a bachelor’s degree in business management and a master’s degree in business administration, which helps our company grow, specifically in relation to government and large private or public sector contracting opportunities. Mr. Lopez has successfully managed and served as the contract manager for all ECS city, state, county, and federal contracts. He is familiar with managing and troubleshooting contracts related to our services. Mr. Lopez’s prior experience includes purchasing and marketing, e-commerce, operations management, customer service, and sales and business development.

Mr. Lopez will be the Primary Point of Contact (POC) responsible for the initial account set-up, onboarding staff/system training, monthly invoice and billing process, and facilitating ongoing training and customer support as needed. He monitors daily contract workflow to meet all contract requirements and metrics. Any issues, concerns, or recommendations may be submitted to Jesus for review. Any updates will be made to your account, processes, and procedures to ensure we meet all your requirements and expectations as your Background Screening provider throughout the contract term.
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Amber Garcia, Operations / Compliance Manager
Contact Info: P: (562) 319-0413 EXT.118
E: [email protected]
Experience: 09/2022 – Present
Certifications: PBSA – FCRA Basic & Advanced Certification Amber serves as the Operations Manager for Employers Choice Screening, providing updates to all clients on best practices, compliance updates, law changes, industry trends, and recommendations throughout the contract term. Amber also manages our internal Quality Management system, which reviews all processes and procedures to ensure the best overall service and customer support offerings to all clients. Amber is your assigned point of contact for addressing any issues with staff and monitoring our performance to ensure we meet all your requirements and expectations as your background screening provider throughout the contract term.

Joshua Efraim, Customer Support Specialist
Contact Info: P: (562) 319-0413 EXT.106
E: [email protected]
Experience: 10/2020 – Present
Certifications: PBSA – FCRA Basic & Advanced Certification Joshua is the Customer Service Specialist, bringing several years of customer service support experience to ECS. He assists clients with daily requests submitted through our online platform, phone, or online ticketing system, [email protected]. Josh assists clients and applicants regarding our system, order status updates, password resets, and other daily function assistance requests.

Additional Support Staff
Silvia Salas, Records Team Lead
Contact Info: P: (562) 319-0413 EXT.116
E: [email protected]
Experience: 09/2019– Present
Certifications: PBSA – FCRA Basic & Advanced Certification Silvia serves as the Records Team Lead for Employers Choice Screening, overseeing the daily operations, quality control, and timely completion of all record searches within the Records Department. Record searches include all levels of criminal record history, address trace history, credit history, and motor vehicle history.
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Corey Rodriguez, Verifications Team Lead
Contact Info: P: (562) 319-0413 EXT.109
E: [email protected]
Experience: 09/2021– Present
Certifications: PBSA – FCRA Basic & Advanced Certification Corey serves as the Verifications Team Lead for Employers Choice Screening, overseeing the daily operations, quality control, and timely completion of all verification searches within the Verifications Department. Verification searches include all education, employment, license, military, and reference verifications.

Onboarding and Training
We are committed to providing professional
guidance and the best customer support to
ensure an efficient implementation and
onboarding process that will meet your
organization’s specific needs and deadlines.

Upon contract award notification, your assigned
Account Manager will reach out (within 24 hours
of notification) to introduce themselves, create
your account based on bid specifications, and
schedule a follow-up onboarding TEAMS
introduction call at your team’s earliest convenience. The scheduled TEAMS webinar call will walk you through our web-based solution (share screen), set up your specific and customized account preferences, and walk you through our screening process from beginning to end, answering any specific questions your team may have before going live with your account. Any recommendations or adjustments you make will be implemented promptly after the call and followed up with a confirmation email for reference.

Upon account creation, your Account Manager will provide a System User Guide (PDF) and a recorded copy of the
onboarding TEAMS webinar (optional), which can be used
for onboarding future staff or as a quick refresher guide for your current team. As requested throughout the contract, ECS is always available to schedule follow-up training
sessions for all new and existing users.

Employers Choice Screening provides continuous news,
updates, and industry best-practice blogs, articles, and webinars through our various social media channels, cloudbased platform NEWS & Announcements Section of the Dashboard, and the RESOURCES Section of our website.
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Cus tomer Support Satis faction
Employers Choice Screening guarantees a direct and
proactive approach with all our clients, including those for whom we have been awarded contracts through a formal
bidding process. You will be assigned a dedicated team
consisting of an Account Manager and a dedicated
Customer Service Specialist, as well as access to our
daily research and processing team. This personalized
level of customer service allows our specialized team to provide prompt same-day responses and assist you
during the term of this contract. You will be assigned a team that fully understands your account's specific requirements and specifications, enabling us to promptly process your orders and questions separate from those requests submitted by our everyday B2B, commercial, and non-contracted clients.

For support with daily questions and inquiries, you may contact your direct account manager by phone or email or submit a ticket request to [email protected]. Furthermore, our background screening processes and procedures undergo continuous quality assurance reviews to ensure compliance and accuracy with the information we receive. They are managed by our quality management system, which is detailed below. Our current accuracy metrics on total reports completed is 99.8% and rarely call for reinvestigation. Reinvestigations usually occur when applicant records are returned incorrectly by the court or updated documents are required via applicant request to the court for updated case decision details.

ECS has a long-lasting relationship with most of our clients, many going as far back as a decade while operating as a division of Diversified Risk Management Inc. Our average client retention rate, based on active clients ordering within the last three years, is 99.6%. Our customer satisfaction is continuously monitored as part of our Quality Management System (QMS). All inquiries submitted by phone or online through our customer service ticketing system are constantly reviewed for quality and performance improvement. Online submissions automatically yield a customer satisfaction survey that will allow customers to rate their level of service and provide specific feedback regarding each service issue and how it was resolved. Biquarterly surveys are also sent out and logged into our quality management system, providing a Customer Satisfaction Score (CSAT), which rates our customer service, delivery times, and services offered to each client. Our current Performance Score through March 2024 is 98.9% based on customer satisfaction data collected.
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Screening Services Overview
Services under this Solicitation s hall include, but may not be limited to, the following as outlined in the s olicitation: Scope of Work provided. Click each s earch below to view full details .

Click Here to view our full-service catalog:

Criminal Background Searches
Employers Choice Screening offers various criminal background searches with tailor-made solutions for your business’s specific needs. With customizable order options, we’re sure that we can provide you with the background check that best suits your needs.

Average Turn-Around Time: 1-3+ business days determined by jurisdiction searched.

SSN Address Trace & Validation (includes aliases)
Verifying an applicant’s address history and personal information gives you confidence in your applicant’s integrity and is used as the foundation of any comprehensive background check.

Social Security Number Validation
This identity search uses information from the Social Security Administration (SSA) to determine if a Social Security Number (SSN) provided by an applicant is valid and checks the SSA Death Index to detect any inconsistencies. This service can also help verify if the SSN holder’s name, date of birth, and SSN match SSA records by obtaining the information directly from the SSA.

Note: the SSN Validation search does not confirm that the SSN belongs to your candidate. This must be done through a Consent-Based Social Security Verification (CBSV). #2..
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Social Security Number Address Trace
This identity search helps identify the names and addresses associated with an applicant’s Social Security Number (SSN). This information may be used to request additional public record searches within the jurisdictions corresponding to the candidate’s identified addresses.

Average Turn-Around Time: Instant
County Criminal Record Search
A County Criminal Record Search provides misdemeanor and felony offenses as the foundation of any comprehensive Background Check.

County Criminal Record Searches are the most reliable and thorough source for obtaining an applicant’s criminal past. They are available in over 3,000 counties across the U.S. Results will typically include file, offense and disposition dates, case number, charges, the severity of each charge, disposition and sentencing details, including probation violations and pending court cases when available. The standard scope for a County Criminal Record Search is seven years, with extended searches available in some jurisdictions. These searches depend on the limited availability of archived records, state laws, and Fair Credit Reporting Act (FCRA) regulations in a given jurisdiction.

ECS offers county criminal record searches that include the most current and complete criminal record information pulled directly from each local jurisdiction searched. Most national and state criminal databases are updated periodically and are missing critical record information.

Including a County Criminal Record Search provides you with the most up-to-date information, ensuring the verification of criminal record hits reported from statewide and national criminal databases.

Our widespread network of court researchers ensures the quality and timeliness of record information returned to our clients based on the jurisdiction searched. To correctly identify and verify county criminal records, our trained FCRA-certified research team audits every search strictly per FCRA regulation before including criminal information in each completed screening report. Through this Quality Assurance review, ECS provides our clients with the most accurate, comprehensive, and reliable information available.

Statewide Criminal Record Database Search
A Statewide Criminal Record Search provides a wider search scope of criminal history, searching available state repositories, which include district courts, state police departments, bureaus of investigations, The State Department of Corrections, The State Admin Office of Courts, and select statewide court systems that encompass some or all counties within a state.

A Statewide Criminal Record Search may return different levels of reportable criminal record information based on the jurisdiction and availability in each state when searched. This search helps employers increase their criminal search scope beyond a county-level search for a more comprehensive Background Check option.

National Criminal Database Record Search
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up on a county or statewide search. Adding a National Criminal Record Database Search can help employers uncover additional criminal records in jurisdictions beyond those known addresses provided by your applicant, searching in counties and states where your applicant has worked, lived, or attended school.

A National Criminal Record Database Search draws from over 500 million records from thousands of jurisdictions, including counties, The Department of Corrections (DOC), The Administrative Office of Courts (AOC), and Sex Offender registries from all 50 states, plus Washington DC, Guam, and Puerto Rico.

When a record is returned, ECS will confirm the accuracy of the record hit with the originating source at the county or state courthouse. The National Criminal Database Search is only available with additional county and statewide record searches.

Average Turn-Around Time: Instant to 1 business day if record hit is found for QA review clearance
National Sex Offender Registry Search
A Sex Offender Registry Search is processed through the National Sex Offender Registry Public database and each state registry. Employers Choice Screening uses identifying data from your candidate to confirm or identify individuals who appear on the registry.

Average Turn-Around Time: Instant
Federal Criminal Record Search
A Federal Criminal Records Search provides record information that is not available or included in a traditional criminal search conducted at the county or state level. This search is processed by searching the Public Access to Court Electronic Records (PACER) federal index for potential record hits. Federal record hits can uncover additional records related to violations of federal criminal law. This may include tax evasion, fraud, embezzlement, mail, and wire fraud, immigration law violations, postal offenses, interstate drug trafficking, arms violations, kidnapping charges, and other related crimes that may have occurred on federal property and have violated federal law. A Federal Criminal Record Search:

Search all Federal District Criminal Courts
Identify criminal cases heard in a Federal District Court Reports federal criminal offenses such as white-collar crimes, crimes that cross state lines, trafficking, etc.

Average Turn-Around Time: 1 – 2 Business Days
Sanctions Search (OFAC/OIG/SAM/FACIS Search)
Our Sanctions Search accesses over 3000 government registries held by international government and regulatory enforcement resources to help identify restricted, sanctioned, and prohibited individuals related to political exposure, criminal activity, terrorism, financial sanctions, and debarments.

Average Turn-Around Time: Instant
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Record Searches
Credit Report
A credit report offers insight into an applicant’s fiscal responsibility and financial history. Results typically include address history, alias names, charge-offs, collection accounts, monthly payment history, eviction, and other financial events.

The FCRA requires permissible purposes to pull a credit report, and several states have placed restrictions on using credit reports as a determining factor in employment. They may require additional disclosures on the consent form before running a credit report. An employer should only use a credit report when it is specifically relevant to the job position, and appropriate policies and procedures are in place to ensure proper use of the credit report as a factor for determining employment. Credit reports are often used by employers in the financial sector and positions with high fiscal responsibility, such as executive and senior management positions.

Average Turn-Around Time: Instant
Civil Record Search
ECS can conduct civil litigation or lawsuit record searches at the county or federal jurisdiction levels. Federal civil searches are conducted at specific US District courts. A Civil Record Search is ideal for employers looking to hire applicants who will be handling money or will have access to secure financial information, C-level executives, CPAs, financial and banking staff, and business owners.

A Civil Record Search identified disputes involving:

Property
Money
Contracts
Average Turn-Around Time: 1-3+ business days determined by jurisdiction searched.

Motor Vehicle Report (MVR)
A Motor Vehicle Record (MVR) Check helps employers ensure that their drivers are licensed and free from citations and violations that could pose a risk to others on the road. Through our access to Department of Motor Vehicle records nationwide, employers gain valuable insight into an individual’s driving history.

Speeding violations, numerous tickets, license restrictions, and alcohol and substance driving violations are all filed with the DMV. Including an MVR Check as part of your background check protects your company, your reputation, and other drivers from applicants driving while employed by your company.

A driver is not limited to people who drive for a living, like trucking and delivery drivers. Any employee who may drive while employed by your company is a candidate for an MVR Check.

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employers must comply with annual MVR verification checks as a practical approach to maintaining safe drivers throughout the term of their employment! Verifications
Education Verification Report
Verify your applicant's educational history by checking their degree, diploma, general educational development (GED) test completion, or current enrollment status. Most employers find verifying education history as part of their background screening process time-consuming.

Our ECS Verification team can help verify education history directly with the institution or through their authorized agents. An education verification confirms the start and end dates of education, enrollment status if the current education program is not yet complete, and the level of the degree/diploma received with the institution.

An education verification conducted by ECS will help verify the educational history provided by your applicant, giving you greater confidence that they have the appropriate qualifications you require for the role you seek to fill.

Verification Options
verified through an authorized agent like the National Student Clearinghouse verified directly with the academic institution or school that issued the diploma, degree, or GED
verified through supporting documentation provided by your applicant. -copies of the listed degree/diploma
-official school transcripts with verified logos and signatures -verified through an authorized third-party agent like Transcript Network, Credentials eScrip-Safe, CeDiploma, etc.

Average Turn-Around Time: 1-3 Business Days based on the responsiveness of the contacted source
Training, Certification, or Licenses Verification
Confirm the validity and status of a license or certification of your candidate with this verification Our ECS Verification team will help verify the following:

If your applicant has been licensed or certified
If restrictions or violations have occurred
Whether the license or certificate is in good standing, has expired, or has been revoked The following information is reported on a Professional License & Certification Verification.

License or Certification Number
Document type and current status
Date issued and expiration date
Any disciplinary actions or restrictions
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Average Turn-Around Time: 1 – 2 Business Days
Employment Verification Report
Verify your applicant's employment history and job-related experience through our Employment Verification service.

Verifying employment history as part of your background screening process can be a timeconsuming task for most employers. Our ECS Verification team will help you verify an applicant’s employment history to validate that the information provided is accurate, the work experience provided is sufficient to meet your job requirements, and past titles, dates of employment, and job responsibilities are valid.

Employment verification will help verify the following:

Employment Type: Current/Past Employer(s) (7 or 10-year history option) Title/Position
Hire Date / End Date
Employment Type: Full-Time / Part-Time / Volunteer / Contractor Reason for Separation
Federal Motor Carrier Safety Administration/Department of Transportation (FMCSA/DOT) Employment History if applicable for DOT-regulated driving positions Verification Options:
verified directly through your applicant’s listed employer verified directly through an authorized agent like The Work Number, Tenstreet, Inverify, Thomas & Company, CCC Verify, Experian Verify, and other third-party data providers verified through supporting documentation provided by your applicant for contractor positions, self-employment, current employment positions, and employers who are not responsive or no longer in business
– a copy of a valid w-2 or 1099 tax form
– a copy of the applicant’s most recent pay stub
Average Turn-Around Time: 1-3 Business Days based on the responsiveness of the contacted source
DOT Employment Verification
DOT background checks protect your business by ensuring your commercial drivers are qualified
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Businesses regulated by the Department of Transportation (DOT) must conduct DOT background checks before hiring commercial drivers.

If your business hires commercial drivers, you know driver safety is essential not just to your business, but to everyone on the road. A U.S. Department of Transportation (DOT) background check is a specialized background check designed to ensure that drivers of commercial vehicles are qualified. Any business regulated by the DOT must conduct a DOT background check as part of its hiring process. DOT employment verifications must be completed within 30 days of the candidate's hiring, per the U.S. Department of Transportation.

A DOT Employment Verification gathers detailed information about the applicant’s employment history and driving record during the past three years of employment. In order to comply with DOT regulations, a DOT Employment Verification must contact all of the driver’s employers from the past three years to ask all of the questions required by the FMCSA in DOT Rule 49 CFR Part 391.

As part of the DOT Employment Verification, employers must notify applicants that they have the right to review the information their former employers provide, allowing them to dispute information they think may be inaccurate.

In order to meet DOT requirements:

ECS will make a DOT Employment inquiry through the mail, fax, telephone, or email. we will provide the past employer with a signed release from the applicant we will document all attempts made to contact previous employers to show good faith effort was made to obtain the required information required by DOT regulation.

Average Turn-Around Time: employers have up to 30 days to respond from the date of inquiry made by ECS. Status updates will be provided through our online platform with each attempt made.

Optional Services
International Criminal Record Searches
Search International records in over 250 Countries and Territories International Criminal Record Searches help discover potential crimes and offenses in an applicant’s previous countries of residence when hiring potential candidates abroad or that may have lived outside the United States.

Criminal record information is subject to availability based on a country’s laws and regulations and record-keeping practices. Some countries maintain only paper files at local jurisdictions or police departments, which can result in longer turnaround times or the unavailability of records found.

Specific requirements may apply to some international searches, including additional applicantsigned consent forms, supporting documents, and required applicant data to access information internationally.
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Average Turn-Around Time: 2-15+ business days. Varies by country International Verification Services
ECS provides international verification of employment and education credentials outside the United States. We verify information from Europe, Asia, the Middle East, South America, and Africa.

Average Turn-Around Time: 2-15+ business days. Varies by country Privacy and Security Information
ECS offers a secure, robust, and effective web-based
solution. It allows you to streamline your hiring process by utilizing our advanced business intelligence tools and finding the best configurable workflow to meet your
needs. All our staff is U.S.-based and works from our
Santa Fe Springs, CA main office.

All employees must pass a thorough, pre-employment
background screening before beginning employment.

Additional screening may be conducted as necessary for
promotion, transfer, or reassignment. Employees undergo job function and security awareness training as part of the onboarding process and regularly throughout their tenure. Training for the Software Engineering team includes secure coding practices (e.g. OWASP) training. Employees are assigned access rights and roles with the least privileges and only as necessary to fulfill their daily job responsibilities.

Sys tem Security Information
Employers Choice Screening utilizes a third-party SAAS software provider, Meridian Link / Tazworks, who provides the Background Screening software used to perform our services.

Our online system features address NIST defense standards, enforced through our PBSA Accreditation best practices, requirements, and Quality Management Process. #2..
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Certifications and As ses s ments
ECS undergoes Experian, PCI Data Security Standards
(PCI DSS), and SOC2 compliance certifications and
assessments as well and ongoing penetration testing.

A third-party PCI DSS Approved Scanning Vendor
(ASV) conducts external and internal network
vulnerability scans at least quarterly and after significant changes to our networking environments. An independent third-party security vendor conducts penetration testing at least annually and after significant changes.

A risk-based approach is used to prioritize remediation of any findings. For example, prioritizing critical and high severity vulnerabilities higher than lower scoring vulnerabilities. Remediation must ensure that no vulnerabilities exist that are scored greater than a 4.0 by the CVSS, or that are classified as "Critical" or "High Severity.”
Confidentiality and Security
Information security is the protection of information assets, and its objective is to protect the confidentiality, integrity, and availability of information technology resources and information assets in the organization’s possession. ECS's Information Security Policy applies to all information technology resources used to store, process, and/or transmit sensitive data and all sensitive data within the organization. Information security is shared between all parties accessing our systems, including end-users (the client), CRAs (Employers Choice Screening), TazWorks, and all service providers integrated with our online system.

Privacy and Data Security Policy: https://employerschoicescreening.com/privacy-securitypolicy/ Protecting the Confidentiality of Information
Our cloud-based systems are protected by security software (SSL) and permission-based authentication. Security is a high priority and an integral part of the design and development of our applicant screening system. Attention is given to high-profile threats such as viruses, denialof-service attacks, and other malicious activities over the internet, as well as maintaining the integrity and confidentiality of sensitive data such as credit reports, social security numbers, and other personally identifying information (PII). Our development staff uses industry-leading technology to secure our operating environment, including client authentication (passwordcontrolled access), data encryption, public-private key pair, firewalls, intrusion detection, filtering routers, and data backups. Each component is a layer of protection to safeguard information from unauthorized users, deliberate malfeasance, and inadvertent loss. Furthermore, our company holds additional cybersecurity, privacy, and liability insurance coverage, ensuring added protection and response in a cyberattack or data breach.

TazWorks' System operational health is monitored through a combination of AWS CloudTrail events and alarms, AWS Elastic Cloud Computing (EC2) health checks, AWS Relational Database Service (RDS) alarms, NewRelic analytic tools, and other third-party monitoring solutions. The Operations teams reviews utilization, performance, and availability through #2..
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console monitoring and active alerts and notifications through multiple channels, including email, SMS text, and telephone.

TazWorks provides a public facing status page at https://status.tazworks.com with real-time health information and support for notification subscriptions.

Monitoring and intrusion/threat detection and prevention (IDS/IPS) is achieved through a combination of Amazon Web Services (AWS) CloudTrail, AWS GuardDuty, AWS Web Application Firewall, RSYSLOG, and OSSEC. Events and alerts are logged, reviewed, evaluated, and handled as appropriate by the Operations team.

Data Encryption Policy
TazWorks encrypts sensitive data using industry-standard protocols and ciphers. Sensitive data in motion or transit (e.g., data transmitted across a network) is encrypted using HTTPS and TLS

1.2. Sensitive data at rest (e.g., data stored in a database) is encrypted using AES-256.

TazWorks manages encryption keys using a fully managed Key Management Service (KMS).

TazWorks does not provide access to, accept from, or manage encryption keys on behalf of end-users or CRAs. Designated users must sign a User Compliance Login Access Form stating that they understand and accept their custodial responsibilities before gaining access to our online system.

Sys tem Information & Capabilities
TazWorks' System is a web-based, software-as-a-service, background screening platform. The services and components comprising the system are primarily written in Java based on the Spring enterprise application framework. The technology stack includes React JavaScript, Java, Java Cryptography Extension (JCE), Apache Tomcat, CentOS, Spring Data JPA, and AWS Aurora MySQL compatible database.

Users securely access TazWorks' System over the Internet using HTTPS and a current version of Chrome, Firefox, Safari, Internet Explorer, or Microsoft Edge Internet browser.

TazWorks' System is designed to be highly available with minimal downtime. System failover is highly automated to ensure quick, efficient recovery in the event of system failures. TazWorks' standing maintenance window is daily from 10:00 PM to 10:30 PM Mountain Time, but most system maintenance occurs without any system interruption. Planned downtime is announced in advance through TazWorks' Software News and the TazWorks' System status page. TazWorks' System can scale both horizontally (i.e. increasing the number of computing resources) and vertically (i.e. increasing the performance of individual computing resources) to meet growth demands. Horizontal scaling policies based on computing resource utilization will automatically add and remove application and database servers as needed throughout the day.

Longer term resource demands can be achieved within minutes by resizing the performance profile of application and database server instances.

Us er Security & Sys tem Proces s es
Each system user is assigned a unique user account for system access. Users authenticate with a username, password, and multi-factor authentication (MFA) token. Passwords must meet minimum complexity requirements and are protected in the database using BCrypt hashing with #2..
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a cost factor of eleven. MFA tokens can be delivered via SMS-enabled devices, Google Authenticator, or email. User access can be restricted further by IP address whitelisting. User access to TazWorks' System is logged by user identifier and timestamp and can be provided offline by request as a User Audit Report. TazWorks maintains a Software Development Policy to ensure that security best practices (e.g.

OWASP, SANS CWE, CERT Secure Coding, etc.) are followed throughout the software development lifecycle. A standard, consistent, repeatable process helps prevent the inadvertent or malicious introduction of vulnerabilities into the TazWorks environment with code changes.

TazWorks follows the Agile Kanban methodology of software development. Features, issues, and initiatives go through needs analysis, security impact analysis, design, review/planning, active development, and testing phases. Changes are documented in Atlassian JIRA and follow a well defined approval and development workflow. The Product team reviews and approves issues and then assigns them to the Software Engineering team for development.

Once completed, all code changes must pass both manual and automated quality review gates before the Operations team can merge and deploy them into the production environment. These gates include units tests; static code analysis for common programming and security flaws; peer code reviews; and functionality, security, and regression testing by the Quality Assurance team.

Release candidates are created frequently, usually several times a day, to help minimize the footprint of the change set and facilitate rapid release of new code.

Single Sign- On (SSO) Sys tem Support
TazWorks' System supports service provider-initiated single sign-on using SAML 2.0.

Data Segregation & Storage
TazCloud segregates client data logically based on both End-User (Client) ID and Company ID.

There are multiple layers of programmatic checks to ensure that result sets from database queries are appropriately scoped by ID to the correct End-User and CRA and that the requesting service or user cannot access data belonging to other End-Users or CRAs.

TazWorks' system stores all data in the United States. Specifically, the data resides in the USWest-2 (Oregon) and US-East-1 (Virginia) AWS Regions. Amazon does not publish the exact locations of their Availability Zones (i.e. Data Centers) within their Regions, so we cannot provide exact address or city information.

TazWorks' system utilizes real-time database mirroring across multiple geographically isolated availability zones in the US-West-2 (Oregon) and US-East-1 (Virginia) AWS Regions to ensure the availability and durability of TazWorks' system data. In the event of a catastrophic primary database failure, the system can automatically promote a reader instance to primary in a matter of minutes. Additionally, nightly, encrypted database snapshots are kept for fourteen days allowing point-in-time recovery.

TazWorks' Development and Quality Assurance environments are located across several availability zones in the US-West-1 (California) AWS Region and are physically and logically segregated from the production environments. Production data is not used for development or testing purposes and is not introduced into the Development or Quality Assurance environments.
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Recovery Point Objective (RPO)
The TazWorks' system database is replicated twelve times across six separate, geographically isolated data centers in real-time. We expect virtually no data loss in the event of a catastrophic primary database failure for a recovery point objective on the order of tens of milliseconds.

Recovery Time Objective (RTO)
The recovery time objective for TazWorks' system is 24 hours. In practice, in the event of a catastrophic primary database failure, we expect failover to happen within minutes.

Patch Management Policy
All system components and software must have the latest vendor-supplied security patches installed, and critical security patches must be installed within one month of release. A riskbased approach is used to prioritize patch installations. For example, prioritizing critical infrastructure (for example, public-facing devices and systems, databases) higher than lesscritical internal devices to ensure high-priority systems and devices are addressed within one month and addressing less critical devices and systems within three months.

Sources for vulnerability information include the United States Computer Emergency Response Team (US-CERT) notification service and vendor-specific software patch notification and management systems (e.g., Windows Update, RPM).

Dis pos al of Personally Identifiable Information
To meet PBSA certification requirements under Section 1: Clause 1.11: Record Destruction, ECS has written procedures that follow FTC regulations and takes measures to ensure that all such records and data are destroyed and unrecoverable when purged. We ensure that we destroy/render inaccessible/unreadable and/or unrecoverable all consumer and client information per current FTC requirements.

Employers Choice has no previous cases of a breach, compromise, or hacks to report, and appropriate measures are continuously monitored and maintained to prevent and protect our clients' identities and personal data.

Business Continuity and Disaster Recovery Policy
We maintain a Business Continuity and Disaster Recovery Plan, which details the policies and procedures in the event of a disruption to critical system services or damage to IT equipment or data. These processes will ensure that those assets are recoverable to the right level and within the right time frame to deliver a return to normal operations with minimal impact on the business. ECS is responsible for maintaining business operations in the face of natural disasters, catastrophes, or security breaches. Emergency preparedness training and strategy are to be refined, discussed, and practiced in our annual Incident Response Meeting.

Record Retention Policy
To meet PBSA certification requirements under Section 1: Clause 1.5: Storage and Backup of Data, ECS has written policies to describe retention periods and the decision to purge records every (2) two years as recommended by industry best practices. Any change or amendment to our retention policy, as requested or per your retention policy, will be added to the contract to #2..
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meet your specific requirements. Before purging any information, your data will be backed up and provided on an external hard drive or an electronic media (thumb drive, CD, etc.) at the end of the contract.

Methodology, Quality Assurance & System Overview
ECS offers a secure, robust, and effective web-based
solution, allowing you to streamline your hiring process by utilizing our advanced business intelligence tools
and finding the best configurable workflow to meet your needs. We offer you the ease and convenience of a
mobile-compatible background check process,
providing electronic applicant consent and
authorization capabilities and electronic delivery and
acknowledgment in accordance with all federal, state,
and applicable local laws, standards, and regulations
necessary to perform these services.

By requesting information directly from your applicant
via a text message/email application link, we can retrieve your candidate’s information and begin to process their background check at a much quicker rate, providing faster turn-around times and the improved accuracy of the information received, with minimal data entry from your team. Orders may also be placed using our user-friendly data entry option for direct ordering by your HR staff, create a personalized applicant ordering portal/landing page using our Quick App Pro dedicated ordering link, or offer a complete system integration with the most popular or commonly used HR Applicant Tracking systems available.

Our web-based solution provides 24/7 system availability, which is ADA Compliant and fully compatible with all web browsers, making it accessible from all desktop, mobile, and smart devices. ECS system features include but are not limited to unlimited individual user profiles with 24/7 system accessibility, real-time order updates and status availability, customized applicant instructions and application forms, comprehensive and customized electronic adverse action procedures and management tools, readily available ad hoc report options, drop-down field categories for invoice and report filtering, customized notification settings, batch order upload option, document attachment upload capabilities, offline report archiving for secure storage, electronic invoice retrieval and management, an applicant report status portal, and much more.

Daily Workflow
2024 Average Completion Rate (Jan 01 – June 01): 2.47 business days Once the background screening process has been initiated in our system and the applicant has completed their online application, the expected average turnaround times are:

Instant to same-day results for SSN Address Trace and Identity Verification, Motor Vehicle Records, OFAC Terrorist Searches and Sanctions Check, National Criminal Database and Sex Offender Registry Records, and Credit Reports
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24 to 72+ hours for Domestic County/Statewide Criminal Record Searches (differ by jurisdiction), Federal Criminal Records, Professional License Verification, and Media Searches.

Record searches with hits may require additional time for review to ensure the accuracy of the information being provided to our clients. Additionally, records held in clerk-run courthouses, those affected by unexpected weather, or those adversely affected by changes to court case review policies (i.e., redaction of date of birth off criminal records in CA and MI) may require additional time to complete.

Our system automatically generates an estimated date of completion in the pending notes section based on an annual completion metric for each jurisdiction searched. Any deviations from these expected turn-around times will be communicated to the Human Resources representative who submitted the report through our dashboard and may be updated based on known delays in each region.
24-72+ hours for employment/academic verifications. Completion may vary and depends on the responsiveness of the source (employers/schools/university) or the applicant who is required to provide additional supporting documents as a means of verification. 2-15+ days to complete International Criminal Searches (vary by country).

Any deviations from these expected turn-around times will be communicated to the Human Resource representative who submitted the report to explain the delay with an estimated completion date.

Note: We are at the liberty of the courts and record providers who provide us information; thus, delays may occur in clerk-assisted courts, areas that may be affected by weather, or while gathering direct record information from employment and educational sources who are nonresponsive or have delayed response times to all requests submitted. All attempts made will be fully documented in the notes section of each pending report through completion, and updates will be promptly provided to the client.
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Quality Management Sys tem (QMS)
The ISO 9001:2015 certification establishes the criteria for developing and implementing a solid quality management
system that manages regulations, standards, and
customer satisfaction. This standard is based on a number of quality management principles, including a strong
customer focus, the motivation and commitment of top
management to maintain a strong and consistent quality of service, and the process approach and continual
improvement of that quality management system. Using
ISO 9001:2015 standards help ensure that our customers
get consistent, good-quality customer service and
screening services throughout the term of our business relationship. Through this standard, Employers Choice Screening has been certified to meet our internal customer requirements and continually improve all deliverable services offered to our clients. Our management team has designed a quality management system (QMS) to ensure that our quality policy is appropriate to the purpose of our organization. It includes a commitment to comply with quality requirements and continually improve the effectiveness of our QMS. We provide a framework for establishing and reviewing quality objectives that are communicated and understood within our organization and made available to our clients as well per request. Our processes are continuously checked for continued suitability and compliance as required for active certification.

Employers Choice Screening focuses on Compliance, Quality Assurance, Information Security, and Customer Service. We utilize a variety of trusted and secure government-run databases and other data providers directly integrated with our screening software, in conjunction with our network of qualified and continuously audited court researchers (domestic and international), who contribute record information to each Background Screening Report. All information received, including all criminal record hits, goes through our internal Quality Assurance review to ensure the accuracy of the information being reported before completion, minimizing the need for reinvestigation and ensuring you receive quality record information that can be used when making a sound hiring decision. Furthermore, our internal Quality Management System (QMS) continuously monitors our daily processes and employee training schedule to ensure that customer satisfaction and service delivery metrics are always met. Employees must complete Sexual Harassment Training, Cyber Security Training, Ethics, and Customer Service Training upon hire and specialized PBSA Advanced Certification training as part of their onboarding process.

Any issue identified or reported to our team by our clients is entered into our QMS System for review by our management team. All cases must be thoroughly reviewed, and a resolution must be provided within 30 days of review. All reported issues are then discussed internally during our Quarterly management meetings to prevent any reoccurrences and identify areas in Customer Service, internal processes and procedures, and Quality Assurance that we can improve. Client escalations will be reported to your account manager for review and resolution within 30 days of occurrence.
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Quality Assurance Review
Per PBSA requirements, all record hits are reviewed by our Records Team Lead before being reported on a final report. This is noted with a date and time stamp in our internal notes section of each search performed. Reportable record hits must contain at least three identifiers: a full name match, date of birth match, partial social security number match, or jurisdiction match from an accompanying driver’s license search or Social Security Number Address Trace match before we add to a completed screening report.

Compliance Management
ECS ensures that all reportable information returned to our clients is in full compliance with all local, state, federal, and international laws, rules, and regulations, including, but not limited to, the Fair Credit Reporting Act (FCRA), EEOC, the Fair and Accurate Credit Transactions Act (FACT), the California Investigative Consumer Reporting Agencies Act (ICRAA), the Consumer Credit Reporting Agencies Act (CCRAA), Driver’s Privacy Protection Act, United States Federal Motor Carrier Safety Administration regulations, and the Gramm-Leach-Billey Act (where applicable). We provide all applicants with an electronic or PDF Disclosure and Authorization Form, "FCRA Summary of Rights” documentation, and all appropriate state and federal notices when requesting applicant information for a Background Check.

As a nationwide human resource service provider providing domestic and international research and verification capabilities, we maintain a complete and updated 50-state compliance guide that is updated and maintained continuously for compliance. New state requirements and disclosures are retained in this guide and updated per specific requirements set by our PBSA certification. Anytime we are made aware of a change in law or any particular statute, we immediately alert all our clients via email and various communication channels. #2..
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Sys tem Overview
Das hboard / Homepage
To begin, please visit our homepage:
www.employerschoicescreening.com
Click the CLIENT LOGIN tab on the
upper left-hand side of our homepage
to enter your dashboard. As part of our
ongoing emphasis on providing the
utmost security to our users, our
system requires all users to log in
using our multi-factor authentication
process. ECS utilizes all appropriate
encryption and authentication
standards to protect the confidentiality
of all sensitive information provided to
our system, including periodic
penetration testing, security certifications such as our SOC 2 certification, and additional cyber security insurance coverage for the overall protection and security of all our client’s personally identifiable information.

Each user must reset their password every 90 days, and passwords must meet unique character requirements to be valid. Users will automatically be disabled after 120 days due to inactivity for added security. Users must re-verify their identity by answering security questions during password reset requests. Password resets can be requested through the “forgot password” link on the login page or by request by contacting our support team for assistance.

Users will also be logged out of the system every 5 minutes for added security if inactive or idle.

Our website uses encryption and authentication standards to protect the confidentiality of all web transactions, including date and time stamp and client IP address on all orders placed, monitoring all potential threats and risks. Additional User Audit reports are also available upon request.

A unique username and temporary password will be emailed to each user upon request and completion of our FCRA User Compliance Form, prompting a password reset for each user to select their unique password upon their first login attempt. Our system allows for an unlimited number of users to be added with individual customized settings and accessibility as requested.

Accessibility and visibility to each account’s reports will be determined and set per your specifications during the onboarding setup call.

Our dashboard page will display all upcoming system and software updates and compliance notifications, the latest court closures that may cause delays in record retrieval, and our company contact information. The dashboard will be your primary source for ordering and retrieving reports, viewing invoices, or generating any information reports using our system.

Notice of any known delays, disruptions, or office closures will be posted online and emailed before the estimated interruption date or as soon as we are aware of such changes to our everyday operations.
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Toolbar Sys tem Tabs (Right to Left)
Utility Tab
Users can pull AD-HOC Data
Reports directly from their Utilities
Tab > Report Designer. Reports
include but are not limited to, status
reports, time delivery reports,
itemized spend or completed file
summary reports, and many other
data reports available by date range.

Customized Report requests
containing additional information may
be requested through your Account
Manager and scheduled for delivery as needed. Reports may be viewed, downloaded as excel, quick books, pdf files, or printed as required.

Admin Tab
This allows the assigned
Administrators or Project
Managers to pull current and past
invoices from the system under
Billing > View Invoices. Billing Information
Payment Terms: Net 30
Acceptable Payment Methods: Credit Card / ACH / Check / P-Cards Electronic invoices are automatically generated and emailed each month to assigned parties.

They can also be mailed in hard copy form to your purchasing department for processing. Billing can be scheduled for automatic payment via credit card or ACH by contacting our Accounting Department at [email protected] for setup and payment authorization.

Our invoicing/billing process is flexible and can be customized to meet your specific needs.

Accounts can be set up to be billed by centralized corporate location, broken out by individual departments or subdivisions, or accompanied by a separate excel or PDF invoice report with itemized details and total spend per department.
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Reports Tab
Allows users to view Pending
and Completed Reports in
real-time
Manage the delivery of preadverse / adverse letter
distribution (disclosure queue)
Allows users to search archived
reports under Find > Advanced
Search.

Archiving System
All completed reports will be archived after 60 days and will be pulled to the back end of the system and searchable under the Find > Advanced Search section for added access level security. Archived reports cannot be updated or changed; they are only viewed or printed after they are archived in the system.

All completed reports are automatically purged from the online system two years after the order date. To meet any specific retention policies related to completed reports, completed files may be copied at the start of each year to a secure encrypted hard drive and stored offline throughout the contract term. This must be requested through your Account Manager at the start of this engagement. Completed reports will be archived offline and can be viewed/requested as needed throughout your contract with ECS.

Order Tab
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New Order:

Select a customized package or A La Carte
service, and submit your order.

Batch Order:

You may upload our customized excel worksheet
directly to our system, allowing multiple or group
orders to be placed for processing. Using this
feature, you may send multiple quick app email
invitation application requests or upload a group of
applicant information for direct processing.

Applicant Pending:

This allows you to view all
orders that have been placed
but have yet to be responded
to by your candidates.

Candidates will receive daily
notification reminders
regarding their pending
application requests.

Application links expire three
days after submission but can
be decreased/increased by
the client and resent/reset in
this tab as needed.
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Applicant Ready:

Once the applicant has
responded to and contributed
their personally identifiable
information, the status will
change from applicant pending
to applicant ready. This is
where our team begins
processing each background
check and reviewing and
screening each file for quality
assurance through completion.

XML Ready:

These orders have been received
externally from a third-party ATS
system and are ready for our team
to process and review.

Order/Submis s ion Proces s
Click the ORDER button on the top
menu and select NEW ORDER to
begin your order. Select our A La
Carte Option (single or individual
services) or any available preselected customized Package Option. Please contact your
account manager at any time to
update, add, or delete any
package options available in our
system for your account.
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Benefit: Our customized
package option allows you
the convenience of setting
required pre-selected criminal
searches as REQUIRED /
CHECKED for all background
checks submitted and the
flexibility to ADD / CHECK
OFF additional A La Carte
Services such as a Motor
Vehicle Report for driving
positions, Credit Report for
Financial positions, etc. as
needed per applicant when
ordering.

You may also add a la carte searches after placing your initial order in the system.

Additional Alias Name Match Juris diction Tool
Our system has a jurisdiction pre-selection tool that automatically matches your candidate’s information to possible alias and name variations from credit headers and other databases based on the date of birth and name match it finds. This information is also cross-referenced with the candidate’s social security address trace and known places of employment and education listed in their electronic screening application. This ensures a complete and comprehensive background check is completed on each candidate submitted to our system. #2..
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Ordering Options
We offer three convenient ordering
submission methods to meet your
needs and daily workflow
requirements.

Our mobile solution allows applicants the ease and convenience of completing their online application form, electronic consent, and acknowledgment of all compliance disclosures from their mobile device. This process minimizes delays in completion and allows applicants to provide us with the necessary information to begin their background check. Our mobile accessibility also benefits HR professionals looking to have access to completed background checks on the go. You may access our online portal, check on all existing reports’ status, and view completed reports at your convenience.

Once a package
selection has been made, select the QUICK APP
(electronic) or NEXT (manual) button to proceed.

Quick App: Electronic Request
After selecting the green QUICK APP
button, your HR representative will enter
the applicant’s first, middle (if applicable),
last name, and email address and click
SEND. With the applicant's consent, you
may also enter a phone number if they
desire to receive a text notification and an
email link to complete their online
application.
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The applicant will complete their
application, receive all FCRA
notices and disclosures, and
electronically consent to the
background check. All notices and
signed disclosure forms will be
automatically uploaded and
attached to the applicant’s
completed file for centralized
storage. They may be
downloaded or printed by our
clients as needed.

An automatic reminder email/text
notification will be sent every morning to applicants who still need to complete their online application. Reminders are set to 5 days by default before expiration but can be set to as many days as you deem necessary. Applicants who wish to opt out of future text notifications may do so after receiving the first text.

Application Link
Our dedicated Quick App Pro links are created as a
customized ordering portal that allows candidates to enter their information to initiate a background check. This link can be accessed from any phone, tablet, or laptop,
delivered through your dedicated online hiring landing
page, or delivered as an outgoing email notification to your candidates. This ordering option allows you to direct your candidate to a customized “Background Check
Portal” to complete their Background Check request
without requesting it through our website.

Sample Customized URL:
https://yourcompanyname.quickapp.pro/
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Manual Data Entry
By selecting NEXT, your
assigned human resources
representative can manually
enter the applicant’s information
into our online portal or transmit
an order via facsimile or
confidential email to your
account representative for
processing. A .pdf
downloadable/printable version
of our Disclosure and Authorization form and FCRA Summary of Rights will be provided to the applicant for completion. The client may use their existing disclosure and authorization form, as provided in your sample forms which names our company as the assigned CRA conducting the background check on their behalf. The client may also use their current forms if desired.

ECS reserves the right to review documents for compliance before use. The applicant will provide all the necessary information to conduct the background check and return the signed disclosure form to your HR department to proceed with their background check.

Applicant Tracking System (ATS) Integration
ECS integrates with the most widely used
ATS systems, including NEOGOV.

An ATS system integration allows your
team to place orders, check the status,
and receive completed reports through
your external ATS platform.

ECS- Open API
Clients may also leverage our ECS-API to
develop and connect their custom
applications to our platform solution. Our
API application capabilities allow clients to
connect their external HR systems to our
background screening platform by allowing
your third-party developers to combine
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Sys tem Integration Options
ECS provides a streamlined
solution to integrate all your
HR data from your various
ATS platforms into one
area. We provide this
service through an easy-touse browser extension. The
extension will automatically
detect emails and phone
numbers on your current
ATS page and prepopulate
them to our ordering app.

Simply select your Package Option and submit. You will receive a notification when your Background Check is complete. It’s that simple.

Full System Integration Option
ATS system features, customization, integration setup times, and fees vary per client need and will be evaluated based on the specifications provided by the client.

The Applicant Experience
Whether you are a small business, large corporation,
government agency, or niche employer, Employers
Choice Screening offers a secure and innovative webbased solution, helping you find the best configurable workflow to meet your particular needs. With over 20
years of experience, Employers Choice Screening can
help you customize and develop a screening program
that helps you make safe and informed hiring decisions
for your organization.

Employers Choice Screening extends our customer
service to your applicants, providing a streamlined user experience that allows for direct communication between us and your applicant throughout the screening process.

Our system allows for direct chat communication, tracks every action requested and taken throughout the
screening process, and allows applicants the ability to upload support documentation to our portal for review and approval.
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Background Screening Request Process
The applicant will receive an
application link request via
email/text with instructions on
completing their Background
Screening Questionnaire.

Once selected, the applicant will
enter the applicant portal and
contribute all information needed
to begin processing their
background check.

The applicant will electronically
consent to the background check
by selecting option 1 in the
application. If option two is
selected to opt out, the applicant
will receive a PDF fillable
disclosure and authorization
form, which they must submit via
secure email/fax/ or upload the
completed form to our secure
portal to proceed with the
background check manually.
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All required FCRA notices and
compliance forms will be
provided to the applicant and
acknowledged as received
electronically. The applicant will
receive state-specific
notifications and, if desired, optin to automatically receive a copy of their completed background
check by selecting the
appropriate box during this
process.

The applicant will enter all
personally identifiable and
relevant information (employment
history, education history,
residence history, alias names,
etc.) as requested in their
Background Check and submit it
for processing.

The applicant will receive a confirmation email
with an accompanying reference number to
confirm their application was completed and
accepted.

The applicant can also enter the Document
Portal to upload any supporting documents
directly to our online platform for review.
(Employment/Education/DOT Employment
Verification Form)
Applicants can return to the Documents Portal
anytime to update or provide additional forms
as our team requests.
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The Applicant Portal
ECS provides a mobile-friendly Applicant Portal, which makes it easy for candidates to view the status of their background check, access a copy of their completed report, upload documents, dispute inaccuracies on their report, and communicate with our team throughout the screening process.

The applicant will receive an email to
login into the Portal, which remains
active for up to 90 days after report
completion. Once they verify their File
Number, SSN, DOB, and Zip Code,
they will be taken to the Applicant
Portal. Applicants can view real-time
updates on each search (Pending &
Completed), view open support
document requests, and
communicate with our team directly
through our online chat feature. Chat
communication with the applicant will
be noted and available under
“Applicant Portal Messages.”
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Our verification team can directly request
supporting documentation and communicate with
your candidate through the portal, minimizing
delays and providing quicker completion of your
screening reports.

We will attach any required forms needed, and
an electronic notification will be sent to your
applicant to complete.

Applicants can instantly access their report once
all background check components have been
completed in the system.

Reporting/Completion Proces s
Our online system is available to receive orders 24/7 and will be processed by the system in the order they are received. Completed reports are returned during normal business hours, Monday through Friday PST. Expedited or rush ordering is available at no additional cost to you as an added-value service. Such requests can be noted under the “Order Notes Section” when placing orders on our platform. Note, rush processing requests do not guarantee expedited completion of a report as we are still at the liberty of the sources of information providing us with records for processing. However, ECS will make its best effort to promptly process information as it is received to complete each file according to your specific deadline or rush request.

Communication
ECS staff is always proactive in our approach and methodology when completing each search submitted through our platform. Each file goes through Quality Assurance to ensure all information submitted by your applicant during the Quick App process is complete and can be researched or verified by our staff. Any information correctly entered and returned as valid or missing data will be obtained by contacting the applicant for additional information or client staff as instructed. All correspondence will be noted under the Report Notes section of your file as a reference, and updates will be provided within the system under the CLIENT NOTES section of each report.
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Clos ing out requests due to lack of res ponse (Academic or Employment Verifications ) Our ECS team makes multiple reasonable attempts over five (5) consecutive business days to verify all information needed to complete each employment, academic, or DOT Alcohol & Drug Testing history. Our team will reach out to each listed source via phone call or email, access data from a listed third-party verification provider such as the Work Number or National Student Clearinghouse, or request that the applicant provides any supporting documents that may help partially verify employment history or academic completion per the client’s requirements when no other information is available or primary sources are unresponsive. Applicants are asked to upload supporting documents during the background screening application to minimize delays during the Background Screening review process.

If no information is available or sources are unresponsive by the 5th business day, ECS will contact the client (recruiter) who requested the Background Check to confirm the desired next steps if information cannot be verified through the multiple channels available. This excludes DOT verifications that will remain open for up to 30 days before closing due to a lack of documentation and response from the listed DOT employer. Files that include supporting documentation will be referenced in the notes section of the search, and the document will be available for reference, download, or print in your attachment tab. Files closed per client request will also be noted as “closed per client request” in the system.

Completed Reports
Our system yields instant and pending review status results, prompting additional quality assurance reviews and approval for select searches before completing each report. Employers Choice Screening can provide a non-legal review and consultation of records found on completed reports and provide a flag/no flag exclusion criterion for adjudication. All completed reports that contain adverse record information will be noted with a red flag for your attention and review. Based on the records found, employment decisions will be delegated to your HR staff for review. ECS can set additional notifications on flagged reports to be sent to select parties (i.e., department managers only) as requested through customized account settings. #2..
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Upon completing each background
report, authorized client personnel
will receive an email notification
containing an applicant’s name, file
number, and an embedded link to
their completed report. HR personnel
will be directed to our passwordprotected, confidential, and secure website to view, download, or print
completed reports. Access to
completed reports can be customized
and viewable by all users, only the assigned representative who ordered the Background Check or an assigned Hiring Manager. All completed reports are also electronically accessible on our platform for download, print, or electronically stored and archived within our system. Employers Choice Screening shall notify the client upon discovering inconsistencies, discrepancies, or derogatory information obtained. Completed background checks containing any adverse information shall be flagged for your review with accompanying notes. You may log in to our platform and view individual report status in your dashboard from the Reports Tab > Applicant Ready or Applicant Pending.

Applicants will also receive electronic notification through the Applicant Portal that their Background Check has been completed.

Adjudication : Pre- Advers e/Advers e Process & Management You may manage the adjudication
notification process directly from
our system. A Disclosure & Forms
tab is located on the system's
lower right-hand side of each
applicant report. Upon completing
each report, your HR team can
email/print and distribute a preadverse letter to applicants with reports that include adverse record information.

Applicants can dispute any adverse information on their report through our website form https://employerschoicescreening.com/contact-us/disputes/ after receiving their pre-adverse action letter.
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If no dispute is received within five
business days, a final adverse action
letter can be emailed/delivered to your
candidate as a final notification and
denial of employment based on the
findings of the final Background Check
report. Notification reminders can also
be set at each stage of the adverse
action process to notify your team when
to send each letter.

Pre-Adverse & Adverse Letters will be
branded with your logo, and the
language can be customized as
requested at no additional charge.

Notifications can be set to remind HR staff to provide applicants with the final adverse letter five days after the pre-adverse letter has been provided and no dispute is received by your applicant.

Applicant Dis pute Proces s
ECS makes it easy for your
applicant to contact us to initiate a
dispute regarding their screening
results after receiving the preadverse letter upon completion of their Background Screening Report.

Once a dispute request is received,
our ECS team opens a support
ticket to start reinvestigation and
reaches out to your applicant for
supporting documentation and
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resolution to the dispute request, providing an updated report once the reinvestigation is complete. ECS can use color-coded statuses to show each background check stage for easy visibility, allowing you to track and manage your background check from start to finish.

Additional Sys tem Features
Cus tomized Account Set- up and Us er Preferences
Accounts may be customized to meet your unique reporting and invoicing needs. Accounts can be set up as an individual master account, a master account separated by location/department with the individual preference setting options, or a master account with separate sub-child accounts. These options allow for personal user preference and accessibility settings and controlled visibility among departments and users ordering and retrieving reports. Information obtained will be held strictly confidential and released only to those requestors identified during account set-up. Additional security preferences such as truncated social security numbers, dates of birth, and other sensitive information can be set for extra security on final reports as requested.

My Profile Option / Manage Themes
This feature allows users to
customize their platform
display features,
preferences, theme, and
dashboard look for your
specific account.
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Quick App Client Features
Your “Background Screening
Application” and candidate
notifications will be branded and
customized as part of this
contract.

Adminis trative Rights
Each account can be customized to assign restricted or unrestricted access and visibility to each user. Set unique controls and ordering rights, track online system activity, and access to reports by the user. Our system can add multiple locations, departments, and unlimited users to allow category-specific reporting and invoicing.

Cus tomized Field Settings
Capture and set mandatory or optional fields such as the Position/Title of the applicant, Employee Status (Employee / Volunteer / Intern / Seasonal), Job Location, Department, or Internal Department Billing Codes to assist with customized Ad-HOC reports or invoice filter options.
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Document Management
Our system allows users to upload additional documents to each background screening report by selecting the + button under the attachments tab of each applicant report. This assists with centralized applicant report filing and storage within our secure platform. Additional supporting documentation such as copies of employment records, school degrees or diplomas, or quick verify documents will also be uploaded for your reference when reviewing your completed report. Duplicate Alerts Notification
Our system will automatically flag duplicate orders during the ordering process. Our team member will contact the human resources point of contact and provide a file number and the most recent date of the completed background check for your review and cancel the pending duplicate order in our system. The Client may also set specific instructions to your account when a duplicate background check is approved for re-processing.

Online Sys tem Communication
Our system allows us to communicate with our clients through our online portal. Individual searches can be flagged as Client Message enabling the end-user to read real-time notes and messages from our team regarding the current status or cause of delay (if applicable) on each search. These messages will be accompanied by a notification email from your account manager notifying you of a pending message for your attention and review. #2..
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Dedicated Account Notes
Our system allows us to add dedicated account notes per your specifications, allowing our team to process and complete each search per your scope of work and instruction. #2..
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Cus tom Form Creation Options
We can create custom
electronic forms your agency
uses to meet specific screening
and hiring requirements. These
forms can be part of the
electronic form completed by
your candidate or provided as
a downloadable option for
candidates to complete and reupload to the platform as an attachment to your completed
report.

Custom Screening Filters
ECS recognizes the benefits of an
additional screening and review
process, which can help your team
streamline and improve the
effectiveness of your background
screening and decision-making
process.

Our clients can further enhance their candidate review process by setting color-coded decision classifications to allow your team to view different stages of the hiring process, including approved /declined /under review /adverse candidate review/dispute candidate request. #2..
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Rate Sheet
Standard Background Check $40.00 + applicable fees
(7-year history, all names/aliases)
Social Security Number Address Trace + Validation
County Criminal Record Search
National Criminal Record Database Search
National Sex Offender Registry
Federal Criminal Record Search
Driver Background Check $45.00 + applicable fees
(7-year history, all names/aliases)
Social Security Number Address Trace + Validation
County Criminal Record Search
National Criminal Record Database Search
National Sex Offender Registry
Federal Criminal Record Search
Motor Vehicle Report
Comprehensive Background Check $60.00 + applicable fees (7-year history, all names/aliases)
Social Security Number Address Trace + Validation
County Criminal Record Search
National Criminal Record Database Search
National Sex Offender Registry
Federal Criminal Record Search
Education verification (Highest level earned)
Employment Verification (last two employers)
Discount Package options are available upon request. We customize package options based on position, requirements, and other information our clients provide during the onboarding process. #2..
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Add On Services
Credit Report $6.00
County Civil Record Check $12.00
Motor Vehicle Report $6.00
Education Verification $8.00
Employment Verification $10.00
Professional References $8.00
Professional License / Certification Verification $6.00 Optional Services
International Criminal Record Search $12.00
International Employment/Education Verification $12.00
Social Media Search $30.00
Drug Testing $50.00
DOT Employment Verification $8.00
Disclaimer: Some searches may be subject to fees to access data and information needed to complete your background screening report.

This list is updated periodically as third-party systems and government-run databases inform us of fee increases. Updates are also provided on our main dashboard as they become available. • County and State Court Access Fees in certain jurisdictions • International Criminal Record and Employment/Education Data Verification Fees **International Searches are subject to pass-through third-party research fees. These additional fees are provided at the time of order with estimated completion times for approval. Fees vary by country
• Motor Vehicle Report DMV State Record Access Fees
• Third-Party Education & Employment Data Verification Fees (ie. Equifax Work Number, National Student Clearinghouse, etc.) #2..
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County Court Access Fees
State County Fee
AL ALL COUNTIES $1.00
AR BRADLEY $6.00
AR CALHOUN $5.00
AR CARROLL $1.00
AR CHICOT $5.00
AR CLARK $10.00
AR CLAY $12.00
AR CLEBURNE $5.00
AR CONWAY $5.00
AR CROSS $10.00
AR DESHA $5.00
AR FRANKLIN $5.00
AR GRANT $10.00
AR GREENE $5.00
AR HEMPSTEAD $5.00
AR HOWARD $1.00
AR IZARD $6.00
AR JEFFERSON $5.00
AR JOHNSON $5.00
AR LAWRENCE $5.00
AR LEE $20.00
AR MILLER $5.00
AR MISSISSIPPI $4.00
AR NEVADA $6.00
AR OUACHITA $5.00
AR PERRY $5.00
AR PHILLIPS $5.00
AR POPE $3.00
AR RANDOLPH $6.00
AR SAINT FRANCIS $5.00
AR SHARP $6.00
AR WASHINGTON $5.00
AR YELL $3.00
AZ ALL JUSTICE COURTS $28.00
CA ALPINE $15.00
CA AMADOR $15.00
CA COLUSA $5.00
CA DEL NORTE $15.00
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CA EL DORADO $5.00
CA HUMBOLDT $15.00
CA IMPERIAL $15.00
CA INYO $15.00
CA KERN $15.00
CA LAKE $15.00
CA LASSEN $15.00
CA LOS ANGELES $5.00
CA MARIN $15.00
CA MARIPOSA $15.00
CA MENDOCINO $15.00
CA MODOC $15.00
CA MONO $15.00
CA PLUMAS $15.00
CA SACRAMENTO $15.00
CA SAN BENITO $15.00
CA SAN LUIS OBISPO $15.00
CA SIERRA $15.00
CA SISKIYOU $15.00
CA TRINITY $15.00
CA TULARE $.50 per page for all records
CA TUOLUMNE $15.00
CO ALL COUNTIES $2.20
CO DENVER $6.00
FL SUWANNEE $20.00
FL TAYLOR $20.00
HI ALL COUNTIES $5.00 + $15.00 for records
ID ALL COUNTIES $6.00
IL ALL COUNTIES $1.00
IL COOK $0.00
KY ANDERSON $25.00
KS ATCHISON $4.00
KS BARBER $4.00
KS BARTON $4.00
KS BROWN $4.00
KS CHASE $4.00
KS CHEYENNE $4.00
KS CLARK $4.00
KS CLOUD $4.00
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KS COMANCHE $4.00
KS DECATUR $4.00
KS DONIPHAN $4.00
KS DOUGLAS $4.00
KS EDWARDS $4.00
KS ELK $4.00
KS ELLIS $4.00
KS ELLSWORTH $4.00
KS FINNEY $4.00
KS FORD $4.00
KS GOVE $4.00
KS GRAHAM $4.00
KS GRANT $4.00
KS GRAY $4.00
KS GREELEY $4.00
KS GREENWOOD $4.00
KS HAMILTON $4.00
KS HARPER $4.00
KS HARVEY $4.00
KS HASKELL $4.00
KS HODGEMAN $4.00
KS JACKSON $4.00
KS JEFFERSON $4.00
KS JEWELL $4.00
KS KEARNY $4.00
KS KINGMAN $4.00
KS KIOWA $4.00
KS LANE $4.00
KS LEAVENWORTH $4.00
KS LINCOLN $4.00
KS LOGAN $4.00
KS LYON $4.00
KS MARSHALL $4.00
KS MCPHERSON $4.00
KS MEADE $4.00
KS MITCHELL $4.00
KS MORTON $4.00
KS NEMAHA $4.00
KS NESS $4.00
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KS NORTON $4.00
KS OSBORNE $4.00
KS OTTAWA $4.00
KS PAWNEE $4.00
KS PHILLIPS $4.00
KS POTTAWATOMIE $4.00
KS PRATT $4.00
KS RAWLINS $4.00
KS RENO $4.00
KS REPUBLIC $4.00
KS RICE $4.00
KS ROOKS $4.00
KS RUSH $4.00
KS RUSSELL $4.00
KS SALINE $4.00
KS SCOTT $4.00
KS SEDGWICK $4.00
KS SEWARD $4.00
KS SHAWNEE $4.00
KS SHERIDAN $4.00
KS SHERMAN $4.00
KS SMITH $4.00
KS STAFFORD $4.00
KS STANTON $4.00
KS STEVENS $4.00
KS SUMNER $4.00
KS THOMAS $4.00
KS TREGO $4.00
KS WABAUNSEE $4.00
KS WALLACE $4.00
KS WASHINGTON $4.00
KS WICHITA $4.00
KS WYANDOTTE $4.00
LA CAMERON $20.00
LA CATAHOULA $20.00
LA EVANGELINE $5.00
LA TENSAS $20.00
ME ALL COUNTIES $40.00
MI ALCONA $20.00
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MI ALGER $20.00
MI ARENAC $20.00
MI BARAGA $15.00
MI BARRY $10.00
MI BENZIE $3.00
MI BERRIEN $20.00
MI BRANCH $20.00
MI CASS $20.00
MI CHARLEVOIX $15.00
MI CLARE $19.00
MI CRAWFORD $10.00
MI DELTA $40.00
MI DICKINSON $20.00
MI EMMET $5.00
MI GLADWIN $16.00
MI GOGEBIC $50.00
MI HILLSDALE $20.00
MI HURON $10.00
MI IONIA $12.00
MI IOSCO $20.00
MI IRON $40.00
MI JACKSON $1.25
MI KALKASKA $10.00
MI KEWEENAW $10.00
MI MACKINAC $10.00
MI MACOMB $20.00
MI MARQUETTE $20.00
MI MASON $5.00
MI MECOSTA $10.00
MI MENOMINEE $15.00
MI MIDLAND $11.00
MI MISSAUKEE $10.00
MI MONTCALM $17.00
MI MONTMORENCY $10.00
MI OCEANA $10.00
MI OGEMAW $10.00
MI ONTONAGON $30.00
MI OSCEOLA $10.00
MI OSCODA $20.00
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MI OTTAWA $10.00
MI OTSEGO $10.00
MI PRESQUE ISLE $5.00
MI ROSCOMMON $10.00
MI SANILAC $20.00
MI SCHOOLCRAFT $20.00
MI SHIAWASSEE $10.00
MI TUSCOLA $10.00
MS GEORGE $10.00
MS GREENE $10
MS HANCOCK $15.00
MS JACKSON $1.00
MS PERRY $15.00
MS STONE $10.00
MS TIPPAH $2.50
MS WARREN $10.00
MT BEAVERHEAD $24.00
MT BIG HORN $39.00
MT BLAINE $14.00
MT BROADWATER $28.00
MT CARBON $24.00
MT CARTER $28.00
MT CASCADE $24.00
MT CHOUTEAU $28.00
MT CUSTER $31.00
MT DANIELS $31.00
MT DAWSON $24.00
MT DEER LODGE $24.00
MT FALLON $39.00
MT FERGUS $29.00
MT FLATHEAD $39.00
MT GALLATIN $39.00
MT GARFIELD $28.00
MT GLACIER $24.00
MT GOLDEN VALLEY $28.00
MT GRANITE $21.00
MT HILL $28.00
MT JEFFERSON $34.00
MT JUDITH BASIN $28.00
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MT LAKE $15.00
MT LEWIS AND CLARK $28.00
MT LIBERTY $28.00
MT LINCOLN $28.00
MT MADISON $28.00
MT MCCONE $39.00
MT MEAGHER $28.00
MT MINERAL $28.00
MT MISSOULA $28.00
MT MUSSELSHELL $28.00
MT PARK $39.00
MT PETROLEUM $28.00
MT PHILLIPS $24.00
MT PONDERA $19.00
MT POWDER RIVER $39.00
MT POWELL $39.00
MT PRAIRIE $34.00
MT RAVALLI $28.00
MT RICHLAND $39.00
MT ROOSEVELT $28.00
MT ROSEBUD $19.00
MT SANDERS $39.00
MT SHERIDAN $28.00
MT SILVER BOW $24.00
MT STILLWATER $28.00
MT SWEET GRASS $28.00
MT TETON $19.00
MT TOOLE $63.00
MT TREASURE $39.00
MT VALLEY $28.00
MT WHEATLAND $28.00
MT WIBAUX $28.00
MT YELLOWSTONE $24.00
NC ALL COUNTIES $1.00
NH BELKNAP $20.00
NH CARROLL $20.00
NH CHESHIRE $20.00
NH COOS $20.00
NH GRAFTON $20.00
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NH HILLSBOROUGH $20.00
NH MERRIMACK $20.00
NH ROCKINGHAM $20.00
NH STRAFFORD $20.00
NH SULLIVAN $20.00
NJ ALL COUNTIES $4.00
NV CARSON CITY $15.00
NV CHURCHILL $15.00
NV CLARK $7.00
NV DOUGLAS $15.00
NV ELKO $15.00
NV ESMERALDA $15.00
NV EUREKA $15.00
NV HUMBOLDT $15.00
NV LANDER $15.00
NV LINCOLN $15.00
NV LYON $15.00
NV MINERAL $15.00
NV NYE $15.00
NV PERSHING $15.00
NV STOREY $15.00
NV WASHOE $15.00
NV WHITE PINE $15.00
NY ALLEGANY $98.00
NY BRONX $98.00
NY CAYUGA $98.00
NY CHEMUNG $98.00
NY CORTLAND $20.00
NY FULTON $98.00
NY HAMILTON $20.00
NY KINGS $98.00
NY MADISON $10.00
NY MONTGOMERY $98.00
NY NASSAU $98.00
NY NEW YORK $98.00
NY NYOCA $98.00
NY ORLEANS $98.00
NY OSWEGO $20.00
NY QUEENS $98.00
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NY RENSSELAER $20.00
NY RICHMOND $98.00
NY SAINT LAWRENCE $15.00
NY SCHUYLER $10.00
NY STEUBEN $20.00
NY TOMPKINS $20.00
NY WYOMING $15.00
SD AURORA $20.00
SD BEADLE $20.00
SD BENNETT $20.00
SD BON HOMME $20.00
SD BROOKINGS $20.00
SD BROWN $20.00
SD BRULE $20.00
SD BUFFALO $20.00
SD BUTTE $20.00
SD CAMPBELL $20.00
SD CHARLES MIX $20.00
SD CLARK $20.00
SD CLAY $20.00
SD CODINGTON $20.00
SD CORSON $20.00
SD CUSTER $20.00
SD DAVISON $20.00
SD DAY $20.00
SD DEUEL $20.00
SD DEWEY $20.00
SD DOUGLAS $20.00
SD EDMUNDS $20.00
SD FALL RIVER $20.00
SD FAULK $20.00
SD GRANT $20.00
SD GREGORY $20.00
SD HAAKON $20.00
SD HAMLIN $20.00
SD HAND $20.00
SD HANSON $20.00
SD HARDING $20.00
SD HUGHES $20.00
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SD HUTCHINSON $20.00
SD HYDE $20.00
SD JACKSON $20.00
SD JERAULD $20.00
SD JONES $20.00
SD KINGSBURY $20.00
SD LAKE $20.00
SD LAWRENCE $20.00
SD LINCOLN $20.00
SD LYMAN $20.00
SD MARSHALL $20.00
SD MCCOOK $20.00
SD MCPHERSON $20.00
SD MEADE $20.00
SD MELLETTE $20.00
SD MINER $20.00
SD MINNEHAHA $20.00
SD MOODY $20.00
SD PENNINGTON $20.00
SD PERKINS $20.00
SD POTTER $20.00
SD ROBERTS $20.00
SD SANBORN $20.00
SD SHANNON $20.00
SD SPINK $20.00
SD STANLEY $20.00
SD SULLY $20.00
SD TODD $20.00
SD TRIPP $20.00
SD TURNER $20.00
SD UNION $20.00
SD WALWORTH $20.00
SD YANKTON $20.00
SD ZIEBACH $20.00
TN BENTON $5.00
TN BLEDSOE $5.00
TN CARROLL $5.00
TN HOUSTON $10.00
TN HUMPHREYS $10.00
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TN JOHNSON $10.00
TN KNOX $15.00
TN MARION $3.00
UT ALL COUNTIES $1.00
VI ALL COUNTIES $12.00
WA ALL COUNTIES $1.35
WY ALL COUNTIES $20.00
State Court Access Fees
State Fee
ALABAMA $1.00
COLORADO $6.70
FLORIDA $25.00
HAWAII $10.00
IDAHO $0.00
INDIANA $17.00
IOWA $0.00
KANSAS $20.00
KENTUCKY $25.00
MAINE $31.00
MICHIGAN $10.00
NEW YORK $98.00
NORTH CAROLINA $0.00
SOUTH CAROLINA $26.00
SOUTH DAKOTA $20.00
TEXAS $5.00
UTAH $1.00
WASHINGTON $1.35
GEORGIA $0.00
ILLINOIS $10.00
MAINE $31.00
MISSISSIPPI $10.00
MONTANA $20.00
NEW JERSEY $4.00
TENNESSEE $29.00
VERMONT $30.00
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State Motor Vehicle Fees
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Additional Third-Party Fees
System Search Type Pass through Fee
The Work Number Employment $109.00 Flat Fee, all employers listed with client approval
ADP Employment $69.99
Other payroll
providers
Employment $10.00
CCC Verify,
Tenstreet, Driver
Facts, Thomas &
Company and other
employment record
providers
Employment Fees vary by provider
The National
Student Clearing
House
Education Fees vary by institution
Parchment,
Diploma Sender
and other High
School/GED
transcript providers
Education Varies by institution
International
Criminal Searches
Criminal Vary by country, with client approval
International
Employment
Verification
Employment Vary by country, with client approval
Additional systems may be accessed as needed. Access fees will be sent to the client for approval before accessing these databases.
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Required Forms
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EXHIBIT A

EMPLOYERS CHOICE SCREENING

SCOPE OF WORK
Criminal Background Search
Employers Choice Screening offers various criminal background searches with tailor-made solutions for your business’s specific needs. With customizable order options, we’re sure that we can provide you with the background check that best suits your needs.

Note: the SSN Validation search does not confirm that the SSN belongs to your candidate. This must be done through a Consent-Based Social Security Verification (CBSV) Social Security Number Address Trace
This identity search helps identify the names and addresses associated with an applicant’s Social Security Number (SSN). This information may be used to request additional public record searches within the jurisdictions corresponding to the candidate’s identified addresses.

County Criminal Record Search
A County Criminal Record Search provides misdemeanor and felony offenses as the foundation of any comprehensive Background Check.

The standard scope for a County Criminal Record Search is seven years, with extended searches available in some jurisdictions.

A Statewide Criminal Record Search may return different levels of reportable criminal record information based on the jurisdiction and availability in each state when searched.

Federal Criminal Record Search
A Federal Criminal Records Search provides record information that is not available or included in a traditional criminal search conducted at the county or state level. This search is processed by searching the Public Access to Court Electronic Records (PACER) federal index for potential record hits. #2..
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National Sex Offender Registry Search
A Sex Offender Registry Search is processed through the National Sex Offender Registry Public database and each state registry. Employers Choice Screening uses identifying data from your candidate to confirm or identify individuals who appear on the registry.

Sanctions Search (OFAC/OIG/SAM/FACIS Search)
Our Sanctions Search accesses over 3000 government registries held by international government and regulatory enforcement resources to help identify restricted, sanctioned, and prohibited individuals related to political exposure, criminal activity, terrorism, financial sanctions, and debarments.

Record Searches
Credit Report
A credit report offers insight into an applicant’s fiscal responsibility and financial history. Results typically include address history, alias names, charge-offs, collection accounts, monthly payment history, eviction, and other financial events.

Civil Record Search
ECS can conduct civil litigation or lawsuit record searches at the county or federal jurisdiction levels.

Verifications
Education Verification Report
Training, Certification, or Licenses Verification
Employment Verification Report
DOT Employment Verification
Optional Services
International Criminal Record Searches
Search International records in over 250 Countries and Territories International Verification Services
ECS provides international verification of employment and education credentials outside the United States.

We verify information from Europe, Asia, the Middle East, South America, and Africa. #2..
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EXHIBIT B
Employers Choice Screening

RATE SHEET
Discount customized packages based on position, requirements, and other information provided during the onboarding process are available.

Package Proposals
Standard Background Check $40.00 + applicable fees1
(7-year history, all names/aliases)
• Social Security Number Address Trace + Validation
• County Criminal Record Search
• National Criminal Record Database Search
• National Sex Offender Registry
• Federal Criminal Record Search
Driver Background Check $45.00 + applicable fees1
(7-year history, all names/aliases)
• Social Security Number Address Trace + Validation
• County Criminal Record Search
• National Criminal Record Database Search
• National Sex Offender Registry
• Federal Criminal Record Search
• Motor Vehicle Report
Comprehensive Background Check $60.00 + applicable fees1 (7-year history, all names/aliases)
• Social Security Number Address Trace + Validation
• County Criminal Record Search
• National Criminal Record Database Search
• National Sex Offender Registry
• Federal Criminal Record Search
• Education verification (Highest level earned)
• Employment Verification (last two employers)
1 County and State Court Access Fees in certain jurisdictions International Criminal Record and Employment/Education Data Verification Fees Motor Vehicle Report DMV State Record Access Fees
Third-Party Education & Employment Data Verification Fees #2..
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Add On Services
• Credit Report $6.00
• County Civil Record Check $12.00
• Motor Vehicle Report $6.00
• Education Verification $8.00
• Employment Verification $10.00
• Professional References $8.00
• Professional License / Certification Verification $6.00 Optional Services
• International Criminal Record Search $12.00
• International Employment/Education Verification $12.00 • Social Media Search $30.00
• Drug Testing $50.00
• DOT Employment Verification $8.00
Third-party systems and government-run databases may have fee increases.

Updates are provided on the ECS main dashboard as they become available. #2..
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11/12/2024/HR/CAlger/Item 13 1 2024-416

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-416

RESOLUTION APPROVING THE FOURTH AMENDMENT TO THE

AGREEMENT WITH EMPLOYEE RELATIONS, GLENDALE, CA FOR

CONDUCTING PRE-EMPLOYMENT BACKGROUND CHECKS TO
INCREASE AMOUNT BY $35,100 FROM $64,900 TO A NEW TOTAL AMOUNT NOT TO EXCEED $100,000 AND AUTHORIZING THE CITY MANAGER, OR

HIS DESIGNEE, TO EXECUTE THE AMENDMENT
WHEREAS, the Human Resources Department has utilized Employee Relations, Inc., Glendale, CA to conduct pre-employment background checks since January 31, 2020; and
WHEREAS, the Human Resources Department executed the first amendment, under City Manager authority, with Employee Relations on March 4, 2022, to increase funds from $24,000 to $45,000; and
WHEREAS, the second amendment, under City Manager authority was executed on May 30, 2023, to increase funds from $45,000 to $49,900; and WHEREAS, the third amendment, under City Council authority was executed on September 12, 2023, Resolution 2023-406, increased funds from $49,900 to $64,900 which was based on recent yearly averages which should have been sufficient to complete the need, however, with the recent influx of new hires, and dramatic increases in costs of some background checks conducted, it was not; and WHEREAS, the Human Resources Department has completed the new informal bid process and expects to award a new Pre-employment Background Check Professional Services Agreement, with Council approval, prior to January 2025; and WHEREAS, failure to increase funds will result in no new hires being processed until the new Agreement is awarded; and
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Now University of Massachusetts Global (UMASS Global).

CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

December 16, 2024
Date: October 17, 2024
TO: Finance Committee
Nick Bavaro, Chair
Rosa Escutia-Braaton, Vice-Chair
David Wright, Committee Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Employee Leadership Development Program Agreement CONTACT: Wanda King, Organizational Development Coordinator [email protected], (209) 571-5125
DESCRIPTION:

Consider an Agreement with University of Massachusetts (UMass) Global for an Employee Leadership Development Program in a total amount not to exceed $295,000 over five years and forwarding to Council for approval. (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:

This item supports the 2020-2025 Strategic Plan’s Service and Delivery Goals & Strategies - Building a High-Performing Organization by Attracting and Retaining High Performance Employees.

BACKGROUND:

Prior to 2018, the City of Modesto did not have formal leadership or employee professional development programs in place. Employees were promoted to leadership positions based on their proficiency of skillsets in which they applied to their current roles. Promotions were typically awarded for excellence in their current roles; however, providing formal training in leadership would ensure a successful transition to supervisory roles.

To ensure a coordinated effort in developing a comprehensive program, the City Council approved the Organizational Development Coordinator position in 2018. This position is responsible for all employee leadership and professional development programs throughout the City.

On February 25, 2020, by Resolution No. 2020-101, City Council approved a five-year Agreement in a total amount not to exceed of $250,000 with Brandman Universityi. This program is an integral part of Organizational Development’s employee career and leadership development programs at the City of Modesto.
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From 2020-present, the Organizational Development team successfully launched the following transformational programs to the City of Modesto Employees:
 Ten-week UMass Global Leadership Academy: offered twice per year to front-line managers through Executive management staff. Due to COVID-19, UMass Global Leadership Academy launched Fall of 2021.
 Six-month Crew Lead Supervisor Academy (CLSA): offered once per year to Crew Leads and Supervisor staff and employees considered for future leadership positions.  Four-hour Emerging Leaders: Professional and Personal development multi-topic curriculum, classes offered several times a month throughout the year. This was offered to all City employees at five various locations.
 Employee Mentor program, offered in three (3) to twelve (12) month periods.  Employee Job Shadow Program, offered in one (1) to four (4) hour increments.  Department Team Building events: Over 260 employees participated in team building events that promote effective employee engagement, communication, conflict management, and much more.
 Employee Assessments: Myers Briggs Type Indicator (MBTI) assessments, administered by in-house-certified MBTI Practitioners.
 UMass and Trident University: College discount scholarships for City employees.  On-going Employee Coaching: Career and Personal development These ongoing programs provide proven tools and best practices to the City’s future leaders that foster high emotional intelligence, self-awareness, self-regulation, positive and proactive employee engagement, innovative and creative problem-solving and successful decisionmaking skills, accountability, effective communication and excellent conflict management resolution best practices. In addition to leadership curriculum, Microsoft Office courses, City Budgets, OnBase Agenda Report Writing, and other City of Modesto specific technical courses are offered throughout the year.

It is imperative to ensure these programs are perpetual in fostering highly trained leadership and highly functioning teams that work together to promote excellence in performance for service delivery and encourage employee retention by creating a workplace culture that values employees and their continued learning and professional development. This overarching organizational development strategy benefits the organization from a risk management perspective by having trained managers and supervisors throughout the organization for years to come.

DISCUSSION:

The COVID pandemic postponed the launch of the UMass Global Leadership Academy originally scheduled for March 2020 and rescheduled to September 2021. Despite the schedule delay, the City of Modesto, to date, has 149 mid-management to Senior Executive Leaders graduate from the UMass Global Leadership Academy. The chart below shows the number of leaders who have graduated from the program by year and department. #3..
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C M O H R F I N C ED P W U T L P R N I T M F D M P D EN G TOTA L 1 2
2 1
3 8
1 2 2 22
2 4
5 5
6 10
3 2 3 5
45 1
5 5
4 8
6 3
4 36
3 1 3
5 2
11 5 5 3
6 2
46 7 7 15 16 15 37 15 12 6 17 2 149
2021-2024 UMASS GLOBAL LEADERSHIP ACADEMY GRADUATES
2021 2022 2023 2024 Total
In addition to the Leadership Academy, the City has had over 120 graduates from the Crew Lead Supervisor Academy and over 965 Emerging Leaders class participants.

The employee professional development program has had multiple positive contributions from 2018 through 2024. Turnover has been reduced from a high of 15.7% to below 10% currently.

Employee surveys have improved with the average rating being a 2.7 in 2022 to a 3.4 in 2024.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow formal bid procedures. However, exceptions to the formal bidding process are granted in MMC 8-204(d) “Where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in procurement for the City at the lowest possible cost commensurate with the desired quality.” The City of Modesto has established a working partnership to develop an Employee Leadership Program with Umass Global that has been critical to leadership development and employee morale. Therefore, staff recommends the Employee Leadership Development Program through UMass Global should be exempt from the formal bidding procedure in accordance with Modesto Municipal Code 8-

3.204(d) since UMass Global has an established Employee Leadership Development Program with the City of Modesto and switching to a new training and development platform will result additional financial cost and development, including resources needed to implement a new program. UMass provides a complimentary ongoing monthly leadership Webinars, valued at $1,000, and a complimentary two custom developed Webinars per year, valued at $900.

Entering into an agreement saves us approximately $22,000 per year. Additionally, UMass offers City of Modesto Employees and dependent family members UMass College Tuition Discount scholarships up to 15% on degree programs. Other Vendors do not offer these additional benefits.

FISCAL IMPACT:

The total cost for this agreement will not exceed $295,000 for all services for the full term of the agreement. The total fiscal impact for Fiscal Year 2025-2030 is $59,000 for each year proposed. Funding for services provided will be spread across several funds, absorbed within approved department training and professional services budgets for the term of this #3..
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agreement.

Below is a summary of the last five-year spending for UMASS Global.

Period Amount Released
Year 1 $ -
Year 2 $ 24,400
Year 3 $ 48,321
Year 4 $ 72,437
Year 5 (thru 02/25/25) $ 23,108
Total $ 168,266
Estimated expenditures for the next five years are budgeted in various funds, with the first three years fixed and a 5% increase annually in years four and five, 5% increase is based on a possible CPI increase:

Year Hourly Rate Estimated Hour Additional Materials Estimated Total Program Cost 1 $ 550.00 90 $ 5,000.00 $ 54,500.00
2 $ 550.00 90 $ 5,000.00 $ 54,500.00
3 $ 600.00 90 $ 5,000.00 $ 59,000.00
*4 $ 630.00 90 $ 5,250.00 $ 61,950.00
*5 $ 661.50 90 $ 5,512.50 $ 65,047.50
*5% increase applied GRAND TOTAL: $ 294,997.50
RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the Agreement with UMass Global for an Employee Leadership Developmental Program for a two-year Agreement with three one-year extension options, for an annual estimated amount $59,000 and a total amount not to exceed $295,000 over five years; and forwarding to Council for approval.

Approved by:

Christina Alger, HR Director
Joseph P. Lopez, City Manager
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Attachments:

1. Agreement

2. Exhibit A

3. Bid Waiver-UMASS Global-signed
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STANDARD AGREEMENT

FOR CONSULTANT SERVICES
THIS AGREEMENT for consultant services (the “Agreement”) made and entered into in the City of Modesto, State of California, this ______ day of , 2025, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "CITY", and UMASS GLOBAL, a California corporation, hereinafter referred to as "CONSULTANT".

This AGREEMENT is made with regard to the following recitals:
a. The CITY has determined that an AGREEMENT should be prepared for the CITY to engage in leadership development training.
b. CONSULTANT represents that it is qualified, willing, and able to provide the services to prepare said document(s).

NOW, THEREFORE, in consideration of this AGREEMENT, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:

1. SCOPE OF SERVICES.

CONSULTANT shall undertake and complete the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit "A", incorporated herein by this reference.

2. TERM OF AGREEMENT.

The term of the AGREEMENT shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of CITY, for a total of up to five (5) years.

Year 1: FEBRUARY 26, 2025 through FEBRUARY 25, 2026
Year 2: FEBRUARY 26, 2026 through FEBRUARY 25, 2027
Year 3: FEBRUARY 26, 2027 through FEBRUARY 25, 2028
Year 4: FEBRUARY 26, 2028 through FEBRUARY 25, 2029
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Year 5: FEBRUARY 26, 2029 through FEBRUARY 25, 2030
Pricing as set forth in Exhibit “A”, incorporated herein, shall remain firm for the first three (3) years of the agreement.

Price increases for subsequent AGREEMENT years four and five shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONSULTANT in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

3. COMPENSATION.

CONSULTANT agrees to accept an estimated annual amount of $59,000 and a sum not to exceed $295,000 (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials for Modesto in accordance with Exhibit "A.” The Compensation shall be paid pursuant in the manner and at the times set forth below:

CITY shall pay CONSULTANT on a time and materials basis for CONSULTANT’s actual costs for all work called for in Exhibit “A” to this AGREEMENT. All work to be performed under this AGREEMENT shall be billed at the hourly rates set forth in Exhibit “A” attached hereto. CONSULTANT shall submit monthly invoices to CITY which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any reimbursable expenses paid by CONSULTANT and identified in Exhibit “A” or approved by the CITY in writing.

CITY shall pay CONSULTANT [ “Net 45 Days via manual check”.]

4. OBLIGATIONS OF CONSULTANT.

Throughout the term of this AGREEMENT, CONSULTANT shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business. CONSULTANT warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, #3..
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facilities and other resources necessary to provide the CITY with the services contemplated by this AGREEMENT. CONSULTANT further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.

5. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.

Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the CITY, and may be used by CITY as it may require without any additional cost to CITY. No reports shall be used by the CONSULTANT for purposes other than this contract without the express prior written consent of CITY.

All materials, documents, data or information obtained from the CITY data files or any CITY medium furnished to CONSULTANT in the performance of this AGREEMENT will at all times remain the property of the CITY. Such data or information may not be used or copied for direct or indirect use by CONSULTANT after termination of this AGREEMENT without written consent of the CITY. #3..
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6. NEWS AND INFORMATION RELEASE.

7. CONFLICT OF INTEREST.

8. AMENDMENTS.

This AGREEMENT, including the Exhibits attached hereto, may be amended only by a writing signed by both Parties. CITY will not be responsible to pay any charges CONSULTANT may incur in performing services not identified in Exhibit “A” unless first authorized by the CITY in writing.

9. INDEPENDENT CONTRACTOR.

All acts of CONSULTANT, its agents, officers, and employees and all others acting on behalf of CONSULTANT relating to the performance of this AGREEMENT, shall be performed as independent contractors and not as agents, officers, or employees of CITY. Except as CITY may specify in writing, CONSULTANT has no authority to bind or incur any obligation on behalf of CITY. CONSULTANT has no authority or responsibility to exercise any rights or power vested in the CITY. It is understood by both #3..
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CONSULTANT and CITY that this AGREEMENT shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture. CONSULTANT, its agents, officers and employees are and, at all times during the terms of this AGREEMENT, shall represent and conduct themselves as independent contractors and not as employees of CITY.

It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONSULTANT or CONSULTANT's assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of the CITY in any capacity whatsoever as an agent, or to bind the CITY to any obligation whatsoever. It is further understood and agreed that CONSULTANT must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of CONSULTANT's personnel.

10. ASSIGNMENT.
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Neither this AGREEMENT nor any portion thereof shall be subcontracted or assigned, other than noted in Exhibit “A”, without the express prior written consent of the CITY in each and every instance.

11. PATENT/COPYRIGHT MATERIALS.

12. NOTICES.

Notice required by this AGREEMENT shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with the provisions of this Section.

FOR CONSULTANT: Name: University of Massachusetts Global, School of Extended Education
Address: 65 Enterprise, suite 150, Aliso Viejo,
CA 92656
Attention: Reagan Forlenzo, Director of Corporate
Training
Phone: (949) 383-3303
CITY: Name: City of Modesto
Address: Purchasing Division
P.O. Box 642
Attention: Wanda King, Organization
Development Coordinator
Phone: (209) 571-5125
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13. INSURANCE REQUIREMENTS.

During the term of this AGREEMENT, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit “B” to this AGREEMENT, and incorporated herein, and shall otherwise comply with the other provisions of Exhibit “B” to this AGREEMENT. The city utilizes a software program “PINS Advantage” where vendors are responsible for uploading and maintaining updated insurance.

14. TERMINATION OF AGREEMENT.

Termination by City for Convenience
CITY may cancel this AGREEMENT at any time, with or without cause, upon written notification to CONSULTANT.

Post-Termination Procedure
Upon receipt of a written notice of termination, the CONSULTANT shall:
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a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subconsultants and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontractors except as necessary to complete any portion of the work that is not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any CONSULTANT or subconsultant include lost profits for portions of the Work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONSULTANT in performing the work whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the Project as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the Project and/or property related to the Project; h. If CITY so requests, and at CITY's cost, CONSULTANT shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONSULTANT's work on the project.
i. The CONSULTANT understands and agrees that CITY may, in CITY's sole discretion, refuse to pay CONSULTANT for that portion of CONSULTANT's services which were performed by #3..
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CONSULTANT on the project prior to the termination date and which remain unacceptable and/or not useful to CITY as of the termination date.

15. INDEMNITY.

If CONSULTANT is Design Professional, pursuant to the full language of California Civil Code §2782, CONSULTANT agrees to indemnify, including the cost to defend, CITY, its agents, officers, employees and volunteers, harmless from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT and its employees or agents in the performance of services under this Agreement, but this indemnity does not apply to liability for damages arising from the sole or active negligence, or willful acts of the CITY; and does not apply to any passive negligence of the CITY unless caused at least in part by the CONSULTANT. The CITY agrees that in no event shall the cost to defend charged to the CONSULTANT exceed that CONSULTANT’s proportionate percentage of fault. This duty to indemnify shall not be waived or modified by contractual AGREEMENT or acts of the parties. #3..
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If CONSULTANT is not a Design Professional, the CONSULTANT shall hold the CITY, its agents, officers, employees, and volunteers harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONSULTANT, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the CITY.

16. DISPUTE RESOLUTION.

17. ATTORNEY’S FEES.

18. ENTIRE AGREEMENT.

This AGREEMENT and its exhibits contain the entire understanding between CONSULTANT and CITY. All previous proposals, offers and communications related to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT.

19. PARTIAL INVALIDITY.

20. WAIVER.

21. AUDIT.

The CITY's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify CONSULTANT's charges to CITY under this AGREEMENT.
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CONSULTANT agrees to retain reports, records, documents, and files related to charges under this AGREEMENT for a period of four (4) years following the date of final payment for CONSULTANT services. CITY's representative shall have the right to reproduce any of the aforesaid documents.

22. GOVERNING LAW.

This AGREEMENT shall be governed according to the laws of the State of California.

23. HEADINGS NOT CONTROLLING.

Headings used in the AGREEMENT are for reference purposes only and shall not be considered in construing this AGREEMENT.

25. COMPLIANCE WITH LAWS.

26. CITY BUSINESS LICENSE.

CONSULTANT will have a City of Modesto business license. #3..
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Exhibit B:

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

Umbrella or Excess Coverage
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement.

The insurance policies are to contain, or be endorsed to contain, the following provisions:
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Additional Insured Status
The City of Modesto, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Modesto.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Modesto.

Claims Made Policies (applicable to Professional Liability only) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
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2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this AGREEMENT by its City Manager and attestation by its City Clerk under authority of Resolution No. 20 -______, adopted by the Council of the City of Modesto on the ______ day of ________________, 20 , and UMASS GLOBAL, has caused this AGREEMENT to be duly executed as of the Effective Date.
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Leadership Academy Program Proposal
Prepared for:

Wanda King
City of Modesto, Organizational Development
By
Reagan Forlenzo, Director of Corporate Training
University of Massachusetts Global, School of Extended Education [email protected]
949-383-3303
April 24, 2025
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Leadership Academy Program
This program is designed for both emerging and experienced leaders who want practical and proven tools to build leadership capacity, improve employee performance, increase team effectiveness, and enhance organizational productivity. Participants work in “learning teams” to build accountability and collaboration as well as to develop and implement an Individual Development Plan. New knowledge and skills are applied to specific leadership challenges, based on actual workplace issues or situations, and the results are presented during a Capstone event.

We have found that 4-hour modular block sessions delivered once per week for 10 weeks is optimal to facilitate learning and provides enough time to implement the learning back into the workplace without losing too much time between sessions during this spaced learning.

Finance CommitteeDecember 16, 2024

Finance Committee
December 16, 2024