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
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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