Rules & Legislation Committee
June 12, 2025

APPROVED AS TO FORM AND LEGALITY ___________________________ CITY ATTORNEY’S OFFICE OAKLAND CITY COUNCIL RESOLUTION NO. ______________ C.M.S. RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH KEENAN & ASSOCIATES FOR THE PROVISION OF EMPLOYEE BENEFITS BROKER AND CONSULTATION SERVICES FOR A FIVE-YEAR TERM WITH AN OPTION TO EXTEND FOR TWO YEARS FOR A TOTAL AMOUNT NOT TO EXCEED FOUR HUNDRED EIGHTY-ONE THOUSAND TWO HUNDRED FIFTY DOLLARS ($481,250) WHEREAS, the City provides a wide array of Employee Benefits to its benefit-eligible employees and dependents; and WHEREAS, a qualified, licensed broker is required to provide employee benefits planning, consulting, and brokerage services in the areas of plan design, administration of provider contracts, plan renewals, and overall maintenance of employee benefits programs; and WHEREAS, the City’s current benefits broker, Keenan & Associates. has provided these services to the City since 2015; and WHEREAS, the current broker is compensated for services in the form of commissions received from plan providers; and WHEREAS, in accordance with Oakland Municipal Code, Section 2.04.051, Competitive Process and Qualification-Based Awards for Professional Services, and the City’s purchasing policies and procedures, staff concluded a formal Request for Qualifications (RFP) on May 21, 2021 to ensure continued fair and equitable contracting of this program; and WHEREAS, Keenan & Associates was found to be the most qualified and most responsive vendor to the RFP; and WHEREAS, in accordance with Oakland Municipal Code, Section 2.04.051, Competitive Process and Qualification-Based Awards for Professional Services, and the City’s purchasing policies and procedures, staff initiated a formal Request for Qualifications (RFP) on October 25, 2024 to ensure continued fair and equitable contracting of this program; and WHEREAS, on January 3, 2025, the Human Resources Management Department, concluded the formal RFP, soliciting proposals from qualified firms for employee benefits broker and consulting services; and WHEREAS, Keenan & Associates was found to be the most qualified and most responsive vendor to the RFP; and WHEREAS, Keenan & Associates will act as the City’s Broker of Record as it relates to Employee Benefits Programs; and WHEREAS, under the proposed agreement, Keenan & Associates will provide necessary program services, including 1) Broker Services: Benefit Plans Administration and Renewal; 2) Benefit Plan Design Services; 3) Analysis and Reporting Services; 4) Employee Engagement and Benefits Communications; and 5) Miscellaneous Other Services; and WHEREAS, the services listed above would be provided at no direct cost to the City, and Keenan & Associates. would receive compensation in the form of commission paid by the benefits providers; and WHEREAS, the City wishes to engage services with Keenan & Associates, effective September 1, 2023; and WHEREAS, Keenan and Associates, Inc. will be compensated at an approved commissioned rate for a contract amount not to exceed three hundred forty-three thousand seven hundred fifty dollars ($343,750) for contract years 2023-2028, and with acceptable performance, an option to extend the agreement for two additional years for a total not to exceed four hundred eighty-one thousand and two hundred fifty dollars ($481,250) over the seven-year contract period; and WHEREAS, the City Administrator finds that the services are professional, scientific or technical and awarding this agreement will not result in the loss of salary or employment by any person having permanent status in the competitive service; and WHEREAS, commissions received from benefit providers will not exceed amounts indicated in the table below; and Contract Period Broker Service Base Fee Professional Wellness Commissions Not to Exceed 09/01/23 – 08/31/24 $56,250 $12,500 $68,750 09/01/24 – 08/31/25 $56,250 $12,500 $68,750 09/01/25 – 08/31/26 $56,250 $12,500 $68,750 09/01/26 – 08/31/27 $56,250 $12,500 $68,750 09/01/27 – 08/31/28 $56,250 $12,500 $68,750 RESOLVED: The services listed above would be provided at no direct cost to the City and Keenan & Associates would receive compensation in the form of commission paid by the benefits providers; now, therefore, be it RESOLVED: That the City Administrator is hereby authorized to enter into a professional services agreement with Keenan & Associates for the provision of employee benefits broker and consultation services for a five-year term with an option to extend for two years for a total amount not to exceed four hundred eighty-one thousand two hundred fifty dollars ($481,250); and be it FURTHER RESOLVED: That the City Administrator is authorized to modify, extend and/or amend this agreement for services, except for any increase in the contract amount without returning to the City Council. IN COUNCIL, OAKLAND, CALIFORNIA, PASSED BY THE FOLLOWING VOTE: AYES - BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG, AND PRESIDENT JENKINS NOES – ABSENT – ABSTENTION – ATTEST: ASHA REED City Clerk and Clerk of the Council of the City of Oakland, California 342029v1 / JL