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21-0921_ALLIANT INSURANCE SERVICES_Agenda Report_E13City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Sam Penrod, Human Resources and Risk Manager DATE: September 21, 2021 SUBJECT: First Amendment to the Professional Services Agreement with Alliant Insurance Services, Inc., for Insurance Broker Services RECOMMENDATION: Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Alliant Insurance Services, Inc., for employee health benefits insurance broker services, extending the term through December 31, 2026, and increasing the not-to-exceed amount to $152,625. DISCUSSION/ANALYSIS: The City’s current four-year agreement with Alliant Insurance Services, Inc., (Alliant) is set to expire on September 30, 2021. Alliant provides insurance broker services for employee health benefits, including dental, vision, life, and disability insurance. The four- year agreement was the result of a competitive Request for Proposal (RFP) process, and Alliant has provided exceptional service assisting staff during the annual open enrollment period, providing guidance to staff to meet the City’s obligations under the Affordable Care Act, negotiating the annual premiums for the dental, vision, life, and disability insurance plans, and assisting staff in addressing individual insurance needs. When the four-year agreement was approved, staff was successful in negotiating a decrease in the annual cost of services to $16,500. Alliant’s base rate for services is typically about 20% higher, but they have agreed to maintain their annual fee. To keep the continuity in quality services, staff recommends a five-year extension of the professional services agreement with Alliant. 9/21/2021 E13 City Council Agenda Report September 21, 2021 Page 2 of 2 FISCAL IMPACT: The total cost of the five-year amendment is $86,625, and funds for the current year are included in the City’s adopted operating budget. ENVIRONMENTAL REVIEW: In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from CEQA per Section 15061(b)(3), the general rule that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. 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 activity is not subject to CEQA. A professional services agreement with Alliant Insurance Services, Inc. to provide health insurance broker services would not be an activity with potential to cause significant effect on the environment and is therefore exempt from CEQA. PRIOR CITY COUNCIL REVIEW: • On September 5, 2017, the City Council approved a four-year professional services agreement with Alliant. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: Alliant Insurance Services, Inc. ATTACHMENT: Attachment 1 Proposed Amendment No. 1 to the Professional Services Agreement with Alliant Insurance Services, Inc. Page 1 AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ALLIANT INSURANCE SERVICES, INC. 1. Parties and Date This Amendment No. 1 to the Professional Services Agreement is made and entered into as of this 21st day of September 2021, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Alliant Insurance Services, Inc., a Delaware corporation with its principal place of business at 1301 Dove Street, Suite 200, Newport Beach, CA 92660 (herein referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals 2.1 Consultant. The City and Consultant entered into an agreement entitled “City of San Juan Capistrano Professional Services Agreement,” effective October 1, 2017 (“Agreement”) for the purpose of retaining the services of Consultant as health insurance broker for the City. 2.2 Amendment Purpose. The purpose of this Amendment is to amend the Agreement, effective October 1, 2021. 3. Section 2: Compensation 2 (b) In no event shall the total amount paid for services rendered by Consultant under the Agreement exceed the sum of $152,625 (one-hundred-fifty-two-thousand six-hundred-twenty-five dollars). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice, which includes a description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 4. Section 5: Term of Agreement The term of this Agreement shall be from October 1, 2021 through December 31, 2026, unless earlier terminated as provided herein. The Parties may, by mutual consent, extend the term of Page 2 this Agreement as needed to complete the necessary projects. 5. Severability If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Page 3 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ALLIANT INSURANCE SERVICES, INC. CITY OF SAN JUAN CAPISTRANO ALLIANT INSURANCE SERVICES, INC. Approved By: Benjamin Siegel, City Manager Michael Morales, First VP Date Date Attested By: Maria Morris, City Clerk Approved As To Form: Jeffrey Ballinger, City Attorney