CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 7, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Andrea Russell, Director of Human Resources
Department: Human Resources
Subject: Award Professional Services Agreement with Alliant Insurance Services, Inc. for Employee Benefit Brokerage and Consulting Services in the amount of $150,000 (All Wards) Recommendation
It is recommended that the Mayor and City Council of San Bernardino, California
1. Authorize the Interim City Manager, or designee, to execute a professional services agreement with Alliant Insurance Services, Inc., as a sole source vendor to provide health insurance brokerage and consulting services for the City’s employee healthcare program.
2. Authorize the Director of Finance and Management Services to issue a purchase order to Alliant Insurance Services, Inc., in an amount not to exceed $150,000.
Executive Summary
Alliant Insurance Services, Inc. currently serves as the City’s health insurance broker and consultant for medical, dental, vision, life, and other voluntary employee coverage.
Alliant is also the exclusive broker for PRISM (Public Risk Innovation, Solutions, and Management), a public agency risk-sharing pool, which allows the City to benefit from pooled insurance purchasing power, and reduced premiums.
Background
Alliant has been the City’s employee benefit broker and consultant since 2013. In 2019, the Mayor and City Council adopted Resolution No. 2019-41 to extend the agreement with Alliant through June 30, 2025.
Discussion
With the agreement set to expire on June 30, 2025, the Human Resources Department recommends execution of a new agreement with Alliant Insurance services to avoid disruption in critical benefit services and potential premium increases due to loss of access to the PRISM pool. Alliant has consistently delivered value to the City by minimizing premium increases through pooled negotiation under PRISM, while also supporting the City’s health benefit plans with strategic planning, benefit plan renewal and marketing activities, vendor management, compliance, health, well-being and productivity initiatives, core benefits communications, and open enrollment support.
Although this item is to address the need for health benefits brokerage services, it is important to highlight that the partnership with Alliant extends beyond healthcare premiums. As the sole authorized broker for PRISM, Alliant is uniquely positioned to provide access to risk pooling arrangements that significantly reduce the City's overall insurance costs. If the City were to sever the relationship with Alliant and contract with another insurance broker, we would lose access to the PRISM pool, which we rely on to secure competitive premiums for our excess liability, excess workers’ compensation, master crime, cyber liability, and property insurance policies.
The impacts of losing access to PRISM are as follows:
Our recently renewed property insurance (effective 3/25-3/26) would terminate as of 6/30/25.
Our upcoming renewal for excess liability, excess workers’ comp, cyber, and crime coverage will expire effective 6/30/25.
The City will have to act to immediately secure new stand-alone insurance policies to avoid a lapse in coverage.
Stand-alone insurance will utilize the City’s individual risk factors and claims history to determine premium rates. (Stand-alone policy premiums are significantly higher than pooled premiums).
2021-2025 Strategic Targets and Goals
Authorizing the execution of the professional services agreement with Alliant Insurance Services, Inc. as a sole source vendor aligns with Key Target 1d Increased Financial & Operational Capacity by minimizing risk and litigation exposure.
Fiscal Impact
FINANCIAL
DATA
Current Fiscal Year: Next Fiscal Year: Total Cost: Ongoing Cost:
COST $ $ $ $
GENERAL
FUND
SHARE
$ $ $ $
Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California,
1. Authorize the Interim City Manager, or designee, to execute a professional services agreement with Alliant Insurance Services, Inc., as a sole source vendor to provide health insurance brokerage and consulting services for the City’s employee healthcare program.
2. Authorize the Director of Finance and Management Services to issue a purchase order to Alliant Insurance Services, Inc., in an amount not to exceed $150,000.
Attachments
Attachment 1 Professional Services Agreement Alliant Insurance Services 2025 Renewal
Attachment 2 Sole Source Justification Form – Alliant Insurance Services 2025 Renewal
Ward:
All Wards
Synopsis of Previous Council Actions:
March 20, 2019 Mayor and City Council adopted Resolution No. 2019-41 to extend the agreement with Alliant through June 30, 2025.
April 18, 2014 Mayor and City Council authorized the City Manager to execute the first amendment to the professional services agreement with Alliant Insurance Services, Inc.
SOURCE OF FUNDS:
The fiscal impact of this item is $150,000.
There is sufficient budget in the Department’s
proposed FY25/26 Operating Budget to fund
this agreement.
Budget Adjustment:
For Fiscal Year: /