HomeMy WebLinkAbout3.b. Review Position Paper to authorize GM to execute extension with Alliant Employee Benefits Page 1 of 2
Item 3.b.
CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: DECEMBER 11, 2018
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE A TWO-YEAR EXTENSION IN THE AMOUNT OF
$115,000 PER YEAR, TO THE CONTRACT WITH ALLIANT EMPLOYEE
BENEFITS TO PROVIDE EMPLOYEE BENEFITS BROKER SERVICES
SUBMITTED BY: INITIATING DEPARTMENT:
TEJI O'MALLEY, HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES
MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ISSUE
Board authorization is requested for the General Manager to execute an extension to the contract with
Alliant Employee Benefits (Alliant)to provide employee benefits broker services effective January 15,
2019 through January 15, 2021.
BACKGROUND
I n 2015, the Board authorized the General Manager to execute an agreement with Alliant to provide
employee benefits broker services, to 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.
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. Alliant possesses extensive knowledge of the local health insurance market, as they have many
local public agencies, including counties, cities, and special districts as clients.
Alliant has been instrumental in providing the District with proactive compliance and benefits related advice
and counsel. They have done this while exhibiting a high level of responsiveness and excellent customer
service. Additionally, Alliant has and will provide valuable resources throughout the transition of District
employees and retirees from our current health insurance plans to the CalPERS medical plans.
For above mentioned reasons, staff is now requesting that the agreement with Alliant be extended for an
additional two years, through January 15, 2021.
December 11, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 21 of 30
Page 2 of 2
ALTERNATIVES/CONSIDERATIONS
The Board can elect not to authorize the General Manager to execute the extension of the agreement.
This is not recommended at this time, as Central San has the upcoming CaIPERS Healthcare transition
that will require timely benefit advice, and Central San has already begun working with staff from Alliant.
FINANCIAL IMPACTS
The current rate for employee benefits broker services is $115,000 per year. If the Board were to
authorize the General Manager to execute the extension of the agreement with Alliant, Alliant would not
increase their annual cost, which would remain at$115,000.
COMMITTEE RECOMMENDATION
The Administration Committee reviewed this matter on December 11, 2018 and
recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute a two-year extension of the agreement, in the amount of$115,000
per year, with Alliant Employee Benefits to provide employee benefits broker services effective January 15,
2019 through January 15, 2021.
Strategic Plan re-In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
GOAL FOUR: Develop and retain a highly trained and innovative workforce
Strategy 2- Enhance relationships with employees and bargaining units
December 11, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 22 of 30