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HomeMy WebLinkAbout03.f. Agreement with Alliant Employee Benefits for employee benefits broker servicesCentral Contra Costa Sanitary District 3, 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 Dept /Div.: Teji O'Malley Operations Human Resources Manager Human Resources REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Sasaki -Deputy General Manager "�_ V l •►.1 r� Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: Board of Directors' authorization is required for the General Manager to execute professional services agreements for amounts greater than $100,000. BACKGROUND: The District's current benefits broker, National Financial Partners (NFP) Services, has provided employee benefits broker services for 20 plus years. However, to ensure due diligence is being conducted when it comes to contracting for all District related services, it had been determined that a Request for Proposal (RFP) for a benefits broker would be disseminated to all interested parties. The RFP was publicly advertised on BidSync and six firms responded with qualified and responsive proposals. After evaluating the proposals based upon the approach, strategy, knowledge, and expertise, staff has selected Alliant Employee Benefits ( Alliant). Alliant was established in 1925 and currently provides employee benefit related services to 26,000 clients nationwide. Their core competencies include, but are not limited to, benefit administration; legal compliance; analytics (benchmarking, cost control, etc.); and joint labor 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 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 annual cost of $115,000. For comparative purposes, the District, in FY2014 -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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \IM9F5ZMU \PP - Benefits Broker (Alliant).doc Page 2 of 2