City Council Agenda Report
Meeting Date: November 19, 2024
From: Lisette Grizzelle, Interim Director of Human Resources Department: Human Resources
Submitted by: Lisette Grizzelle, Interim Director of Human Resources Subject
Amendment No. 1 to Services Agreement with Alliant Insurance Services, Inc.
Recommendation
A. Find that it is currently commercially unreasonable to rebid the contract for health benefits brokerage and consulting services in light of the ongoing open enrollment period and health benefits implementation period, pursuant to Vernon Municipal Code (VMC) Section 3.32.220 (B); and
B. Approve and authorize the City Administrator to execute Amendment No. 1 to the services agreement with Alliant Insurance Services, Inc., in substantially the same form as submitted, extending the term of the agreement for a period of six months from October 1, 2024 or until a new agreement is awarded, for a total amount not-to-exceed $40,000.
Background
The Human Resources (HR) Department utilizes the services of a professional Health Benefits Brokerage and Consulting firm to provide health benefit consulting services and to assist with the acquisition, implementation, maintenance, communication and improvement of employee and retiree health and welfare benefits.
On September 21, 2021, City Council approved a three-year agreement with Alliant Insurance Services, Inc. (Alliant) effective October 1, 2021 to September 30, 2024, with a total value not to exceed $222,000 to provide the aforementioned services. The HR Department plans to issue a Request for Proposals (RFP) to establish a new three-year agreement for health benefits brokerage and related consulting services. However, to ensure continuity of employee and retiree health benefits during the City’s current ongoing open enrollment period and health benefits implementation and audit during the first quarter of 2025, staff recommends that City Council approve a contract extension with the current firm, Alliant.
If approved, the proposed Amendment No. 1 would extend the contract term for six months from October 1, 2024, or until a new services agreement is awarded; whichever comes first. The extension would allow staff to process two upcoming quarterly invoices totaling approximately $40,000 and issue an RFP to solicit proposals and secure a vendor within the six-month period.
Pursuant to the City’s special good governance reform contract terms and procedures outlined in VMC Sections 3.32.220(B) and 3.32.110(B)(3), for contracts exceeding $100,000, only the City Council may find it commercially unreasonable to rebid the agreement and authorize an extension beyond the initial three-year term.
The proposed Amendment No. 1 has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is estimated at $40,000. Sufficient funds are available in the General Fund, Human Resources Department, Professional Services Administration Account No. 011-010-120- 529220 for the current fiscal year.
Attachments
1. Amendment No. 1 – Alliant Insurance Services, Inc.