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HomeMy WebLinkAbout04. Employee benefits broker servicesCentral Contra Costa Sanitary District 44% BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 5, 2015 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH ALLIANT EMPLOYEE BENEFITS TO PROVIDE EMPLOYEE BENEFITS BROKER SERVICES Submitted By: Initiating . " "` IDiv.: Te'i O'Malley Opera Human Resources Manager Hymn ReOgrp ps REVIEWED AND RECOMMENDED FOR BOARD AC A. Sasaki - Deputy General Manager Ke Irn [Roger S. Bailey o §unse a District I� eral Manager ISSUE: Board of Directors' author ;atao ;is require�li Nr the General Manager to execute professional services agre� engix moun Qy¢.gggater than $100,000. BACKGROUND: T �; District's curren� enefit Nat[O al Financial Partners rg;. , , , (NFP) Services, h� "ovided =employee,n i ro " -vices for over 20 years. However, to ensure?tl0e dillgeri" is being, �itfucted m ntracting for all District - related services, it was determlrid that a f�1 pest for Proposal RFP for a benefits broker would be dissemih4teditq�a,a tnterestad�p rties. On D r' °i�iber 3, 201:x, g n R as pub vertised on BidSync. Six firms respo nz with qualified d r i sive proposals. After evaluating the proposals based upiO",the approach ateg r r owledge, and expertise, staff selected Alliant t Employee Ben ,,!its (Alliant) p Alliant was established in 19 and currently provides employee benefit - related services to 26,000 clients n0, lo wide. Their core competencies include, but are not limited to, benefit adminjstretion; legal compliance; analytics (benchmarking, cost control, etc.); and joint la r r management support and education. The agreement will be initiated for a two -year duration at a cost not to exceed $115,000 per year, with an option to extend for an additional three years on a year -to -year basis. ALTERNATIVES /CONSIDERATIONS: The Board can elect not to authorize the General Manager to execute the agreement. This is not recommended as it is necessary for the District to retain a benefits broker, and Alliant was the top scoring proposer via the RFP process. Page 1 of 2 POSITION PAPER Board Meeting Date: November 5, 2015 Subject-' AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH ALLIANT EMPLOYEE BENEFITS TO PROVIDE EMPLOYEE BENEFITS BROKER SERVICES FINANCIAL IMPACTS: This action would result in an annual cost of $115,000. For comparative purposes, the District, in Fiscal Year 2014 -15, paid the current benefits broker $275,228. Staff anticipates an annual cost savings of approximately $160,000. COMMITTEE RECOMMENDATION: The Administration Committee reviewed this matter at the meeting on October 26, 2015 and recommended approval of the agreement. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an agreement with Alliant Employee Benefits to provide employee benefits broker services. NAGM \Christina \Teji \PP - Benefits Broker (Alliant).doc Page 2 of 2