City Council
Report
City Council Meeting: March 14, 2023
Agenda Item: 5.D
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To: Mayor and City Council
From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Award Contract to Alliant Insurance Services, Inc. for Employee Benefit Consulting Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute an agreement with Alliant Insurance Services, Inc. for employee benefit consulting services for the Human Resources Department. This recommended award is made as an exception to the competitive bidding process pursuant to Municipal Code section 2.24.250 (c) and is for a total amount not to exceed $550,000 (including a $54,320 contingency) over five years with future year funding contingent on Council budget approval.
Summary
Like most large employers, the City of Santa Monica offers access to a range of health care insurance plans as an employee benefit. To ensure cost-effectiveness in a competitive marketplace for health plan coverage, the City contracts with a consultant to provide benefits consulting services which includes the negotiation of health and welfare insurance benefit plans and renewals with insurance carriers, issuing and assisting with requests for proposals for health insurance coverage, handling problematic insurance claim issues, proactive communication of emerging trends and regulatory updates, and other employee health and welfare issues.
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Discussion
The City’s current employee benefit consultant, Alliant, was awarded a five-year contract following a competitive request for proposal (RFP) process in 2018. Alliant provides a full range of employee benefits consulting services and day-to-day benefit plan administration, which includes the following services: renewal negotiations with carriers; contract review; claims/service assistance with vendors; legislative updates and interpretation; client meetings; vendor interface (correspondence and meetings); plan design; employee benefits strategic planning; financial analysis; claims experience analysis and reporting; plan marketing and general consulting services related to City employee benefit plans.
Vendor Selection
Exception to Competitive Bidding
Staff recommends Alliant Insurance Services, Inc., to provide employee benefit consulting services as an exception to competitive bidding per Municipal Code section
2.24.250 (c). The City of Stockton conducted a competitive RFP process in which Alliant was unanimously selected from seven (7) proposals and the negotiated rate for services for the City of Santa Monica is more competitive than what was included in the City of Stockton RFP.
The Santa Monica Municipal Code allows an exception to the competitive bidding process if a competitive bidding process was followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services supplied to the City are at the same or better price.
Environmental Review
The award contract would have no possibility of significant effect on the environment, and therefore, is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with Alliant Insurance Services, Inc., for employee benefit consulting services. Future year funding is contingent on Council budget approval.
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Contract Request
FY 2023-24 Amount Future Years Department Account # Total Contract Amount $94,300 $455,700 01130004.552010 $550,000
Prepared By: Mark Brower, Deputy Director
Approved Forwarded to Council
Attachments:
A. City of Stockton Staff Report
B. OAKS