City Council
Report
City Council Meeting: March 10, 2026
Agenda Item: 4.D
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To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Award RFP to and Authorize the City Manager to Negotiate and enter into an Agreement with Businessolver for a Benefits Administration System Recommended Action
Staff recommends the City Council.
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines
2. Award RFP to Businessolver for a benefits administration system for the Human Resources Department;
3. Authorize the City Manager to negotiate and execute an agreement with Businessolver in the amount not to exceed $1,497,019 (including a 10% contingency) for a total amount not to exceed $1,646,721 over a five-year period with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica (City) seeks to engage Businessolver to provide a third-party benefit administration system supporting employee and retiree benefit programs. The system provides integrated functionality for benefits enrollment, eligibility tracking, lifeevent processing, and ongoing benefit maintenance. It allows employees to review benefit options, make elections, and update information through a self-service portal, while enabling Human Resources staff to efficiently administer plans, monitor participation, and ensure compliance with applicable regulations such as the Affordable Care Act.
Discussion
The City currently uses a benefit administration system to support employee and retiree benefit plans. Alight Solutions LLC is our current provider and has formally notified the 2 of 4
City that the contract will terminate effective December 31, 2026. Alliant, a fee-based insurance brokerage, acts as the City’s agent in assisting with the administration of the City’s benefit plans and negotiating associated rates for the City. Alliant is also responsible for conducting an annual analysis of the premium costs and going out to bid when appropriate. Per previous practice, the Human Resources Department asked Alliant to administer a Request for Proposal (RFP) process in May 2025. Alliant prepared the bid specifications and conducted the procurement on the City’s behalf.
Provider Selection
Bidder Recommendation
Best Qualified
Person/Firm
Businessolver
Evaluation Criteria Ability, capacity, and skill of the bidder to perform services; Training, experience, and efficiency of the bidder; quality of the services offered; ability to provide such future
maintenance or services as may be needed
RFPs Received
BCC (Benefit
Coordinators
Corporation)
BRMS (Benefit & Risk
Management Services)
Navia Businessolver
Justification to Award
Staff then interviewed 4 firms. Staff recommends Businessolver as the best qualified firm to act as City’s benefits administration vendor based on their ability to provide the full scope of requested services and ability to provide future maintenance or services as may be needed. Businessolver’s quoted rate guaranteed for the first five years.
Environmental Review
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The agreement for ongoing benefit administration services is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The agreement would provide administrative services to the City and would not result in physical effects. Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
None
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with Businessolver to provide a cloud-based benefit administration platform supporting the City’s employee and retiree benefit programs.
Contract Request
FY 2025-26
Request Amount
Future Years
Amount Department Account # Total Contract Amount
$94,747 $1,551,974 01130001.552010 $1,646,721
Future year funding is contingent on Council budget approval.
Prepared By: Jennifer Garcia, Benefits Administrator
Approved Forwarded to Council
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Attachments:
A. Levine Act Disclosure Form 2025_3-27-25 (Businessolver) B. OAKS INITIATIVE FORM (Businessolver)