City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01930 12/9/2025
Professional Services Agreement with Alliant Insurance Services, Inc. for Insurance Brokerage Services
File ID: 2025-01930
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager, or designee, to execute a three-year, two-month, Cooperative Agreement through Sourcewell with Alliant Insurances, Inc. at a cost not-to-exceed amount of $609,228 for Insurance Brokerage Services.
Contact: Pat Flaherty, Risk Manager, (916) 808-8587, [email protected], Human Resources Department
Presenter: None
Attachments:
1-Description/Analysis
2-Alliant (Sourcewell) Cooperative Agreement
Description/Analysis
Issue Detail: The City has an ongoing need for professional insurance brokerage services, as the current contract with Alliant Insurance Services, Inc. (Alliant) is set to expire. These services are essential to maintaining the City’s risk management program and ensuring the protection of City assets. The City relies on its insurance broker to place and manage a range of commercial insurance policies, including property, automobile, general liability, public officials’ errors and omissions liability, and employment practices liability coverage. In addition, the broker facilitates a convenient and cost- effective mechanism for members of the public to obtain special event insurance for activities held at City facilities.
The City participates in the cooperative purchasing program administered by Sourcewell, which competitively solicited and awarded Contract No. 012125-AIS to Alliant through Request for Proposal (RFP) No. 012125 for Risk Management, Employee Benefits, and Insurance Consulting Services.
Utilizing this cooperative purchasing agreement allows the City to access competitively priced and pre-vetted professional services without conducting a separate procurement process.
File ID: 2025-01930 12/9/2025
Alliant has provided consistent and reliable service under the City’s current agreement, demonstrating a thorough understanding of the City’s insurance needs and risk profile. Entering into a new agreement with Alliant through the Sourcewell cooperative contract will allow the City to maintain operational continuity, ensure compliance with insurance requirements, and avoid disruption to essential risk management functions.
Policy Considerations: Council approval is required to execute agreements for services if the amount to be expended under each such agreement is $250,000 or more. This recommendation is consistent with City Code section 3.56 and in accordance with Procurement Policy Number AP-4101 Section 1.1(b).
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): This report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The City utilizes a professional insurance broker to place insurance policies and provide risk manager-related services. This is the most effective and efficient method of protecting the City from losses that are covered by insurance.
Purchasing insurance helps to protect the City from catastrophic auto accidents, dangerous condition claims and workers’ compensation injuries. Insurance also protects the City for damages to City assets, as well as pollution, crime, fine arts, and airport/aircraft exposures.
Approval of the agreement with Alliant Insurance Services, Inc. will ensure uninterrupted access to specialized insurance brokerage services critical to the City’s ability to secure appropriate coverage and manage risk efficiently.
Financial Considerations: The annual cost for insurance brokerage services, including a Sourcewell membership discount, are:
1/1/2026 - 12/31/2026 $188,338.00
1/1/2027 - 12/31/2027 $194,285.00
1/1/2028 - 12/31/2028 $ 200,411.00
1/1/2029 - 2/24/2029 $ 26,194.00
File ID: 2025-01930 12/9/2025
The total not-to-exceed amount over the three-year, two-month term of the contract is $609,228.
This amount is included in the FY2025/26 Approved Risk Management Budget (Fund 6502) and the corresponding expense budgets will be established for the duration of the contract through the annual budget process.
Local Business Enterprise (LBE): Not applicable.
CONTRACT #: PRC003940 PROJECT: CONTRACT NAME: Insurance Brokerage Services NOT-TO-EXCEED AMOUNT: $178,920.63 AGREEMENT TERM: 4 years SOLICITATION: RFP AUTHORIZED RENEWALS: 3 one-year terms LBE (Y/N): N DEPARTMENT/DIVISION: Human Resources/Risk Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement – Approved by CAO 9-22-2025 The City of Sacramento ("City") and Alliant Insurance Services, Inc. ("Contractor"), hereby agree to this Cooperative/Piggybacking Purchase Agreement (“Agreement”), effective as of January 1, 2026. WHEREAS, the City wishes to purchase Risk Management, Employee Benefits, and Insurance Consulting Services, pursuant to the terms of this Agreement and Contract No. 012125-ASI, dated February 24, 2029 (the “Cooperative Contract,” which is incorporated herein by this reference), with Sourcewell (“Cooperative Purchasing Organization”). NOW THEREFORE, Contractor and the City agree as follows: 1. The City agrees to purchase, pursuant to the terms of this Agreement and the Cooperative Contract, Insurance Brokerage Services. In no way shall payment from City to Contractor under this Agreement exceed NOT TO EXCEED AMOUNT. 2. Scope of work. [To be completed by the City representative] [Check one]: [_X__] City’s purchase of the goods and/or services described herein shall be as set forth in Exhibit _A_. The goods and/or services shall be delivered to the City no later than January 1, 2026. The terms of this Agreement and the Cooperative Contract shall control over any contrary terms included in Exhibit _A_ ; and/or [___] City’s purchase of the goods and/or services described herein, including the date(s) of delivery, shall be as set forth in purchase order(s) issued by the City. The terms of this Agreement and the Cooperative Contract shall control over any contrary terms included in a purchase order. 3. The City shall have all the same pricing, terms, conditions, rights, and obligations as the Cooperative Purchasing Organization under the Cooperative Contract. 4. Term. [To be completed by the City representative] [Check one]: [___] The term of this Agreement shall run through END DATE. [_X__] The term of this Agreement shall run concurrent with the term of the Cooperative Contract. If the Cooperative Purchasing Organization renews or extends the Cooperative Contract by written amendment, then this Agreement will automatically extend, not to go beyond a total term of five years. In addition to whichever line above in this Section 4 is checked, (i) the City may terminate this Agreement upon notice to Contractor, and (ii) at any time prior to expiration of this Agreement, the City has the option to extend the term of this Agreement through the term of the Cooperative Contract, inclusive of any renewals and extensions to the Cooperative Contract.
CONTRACT #: PRC003940 PROJECT: CONTRACT NAME: Insurance Brokerage Services NOT-TO-EXCEED AMOUNT: $178,920.63 AGREEMENT TERM: 4 years SOLICITATION: RFP AUTHORIZED RENEWALS: 3 one-year terms LBE (Y/N): N DEPARTMENT/DIVISION: Human Resources/Risk Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement – Approved by CAO 9-22-2025
5. Notwithstanding any contrary term(s) in the Cooperative Contract, including any limitation of liability provision, Contractor shall defend, hold harmless and indemnify City, its officers and employees, and each and every one of them, from and against all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the work or services performed under this Agreement or the Cooperative Contract, including, any fees and costs reasonably incurred by City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), including Liabilities for personal injury or death, damage to personal, real or intellectual property, damage to the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of or failure to perform this Agreement or the Cooperative Contract by Contractor, any subcontractor (including lower-tier subcontractors) or agent of Contractor, their respective officers and employees, and anyone else for whose acts or omissions any of them may be liable, whether or not the Liabilities (i) are caused in part by a party indemnified hereunder, or (ii) are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for any damages for death or bodily injury to persons, injury to property, or other loss, damage, or expense, to the extent arising from the active negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, except when such agents, servants, or independent contractors are under the supervision and control of Contractor or any subcontractor (including lower-tier subcontractors) or agent of Contractor. 6. Insurance Requirements. [To be completed by the City representative]. Contractor shall, at Contractor’s sole cost and expense and for the full term of this Agreement or any extension thereof, satisfy the following insurance requirements which shall apply to Contractor’s performance under this Agreement. [Check one]: [_X__] the insurance limits and obligations contained in the Cooperative Contract. The City shall have all the same rights as the Cooperative Purchasing Organization under the Cooperative Contract. [___] the insurance requirements contained in Exhibit __ , notwithstanding any contrary insurance requirements contained in the Cooperative Contract. In addition to whichever line above in this Section 6 is checked, Contractor shall provide the City with certificates of insurance evidencing the insurance required upon request. 7. Public Work Requirements. [To be completed by the City representative]. The services provided under this Agreement include [Check one if applicable]: [___] Construction work in an amount exceeding $25,000; [___] Land surveying, material testing, or inspection services provided for a City construction CONTRACT #: PRC003940 PROJECT: CONTRACT NAME: Insurance Brokerage Services NOT-TO-EXCEED AMOUNT: $178,920.63 AGREEMENT TERM: 4 years SOLICITATION: RFP AUTHORIZED RENEWALS: 3 one-year terms LBE (Y/N): N DEPARTMENT/DIVISION: Human Resources/Risk Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement – Approved by CAO 9-22-2025 project during the design, pre-construction, construction, or post-construction phases of the project; or [___] Alteration, demolition, repair, or maintenance work in an amount exceeding $15,000. If any lines above in this section 7 is checked, this Agreement includes “Public Work” under the California Labor Code and is subject to the additional terms and conditions specified in the document titled “Public Work Requirements” located at: https://www.cityofsacramento.gov/finance/procurement/standard-agreements, which is incorporated herein by reference. 8. Notwithstanding any contrary term(s) in the Cooperative Contract, this Agreement shall be governed, construed and enforced in accordance with the laws of the State of California, except that the rule of interpretation in California Civil Code section 1654 will not apply. Venue of any litigation arising out of this Agreement will lie exclusively in the state trial court or Federal District Court located in Sacramento County in the State of California, and the parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts. 9. The Contractor shall be responsible for strict compliance with all applicable laws, regulations, court orders and other legal requirements applicable to the work to be accomplished under the Contract, including the California Occupational Safety and Health Act and all applicable safety orders issued by the Division of Occupational Safety and Health, Department of Industrial Relations, State of California, and all applicable requirements of Underwriters Laboratories and the Federal Communication Commission. 10. Contractor warrants and represents that the person or persons executing this Agreement on behalf of Contractor has or have been duly authorized by Contractor to sign this Agreement and bind Contractor to the terms hereof. 11. Except as specifically modified herein, all terms and conditions of the Cooperative Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions of the Cooperative Contract as stipulated and modified by this Agreement. Where there is a conflict between the terms and conditions of the Cooperative Contract and this Agreement, this Agreement shall control.
EXHIBIT A Scope of Services the City's insurance policies for property, excess liability, excess workers' compensation, a) report. b) Other insurance coverage or self- matters.