HomeMy WebLinkAbout06. Authorize extension of contract with Alliant Employee Benefits through 01-15-21 Page 1 of 2
Item 6.
CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: DECEMBER 20, 2018
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TWO-YEAR
EXTENSION, IN THE AMOUNT OF $115,000 PER YEAR, TO THE EXISTING
AGREEMENT WITH ALLIANT EMPLOYEE BENEFITS FOR EMPLOYEE
BENEFITS BROKER SERVICES EFFECTIVE JANUARY 15, 2019
THROUGH JANUARY 15, 2021
SUBMITTED BY: INITIATING DEPARTMENT:
TEJI O'MALLEY, HUMAN RESOURCES SECRETARYOF THE DISTRICT
MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
Roger S. Bailey
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
December 20, 2018 Regular Board Meeting Agenda Packet- Page 43 of 168
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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 CaIPERS 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.
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 Board
approval.
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute a two-year extension, in the amount of$115,000 per year, to the
existing agreement with Alliant Employee Benefits for employee benefits broker services effective January
15, 2019 through January 15, 2021.
Strategic Plan Tie-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 20, 2018 Regular Board Meeting Agenda Packet- Page 44 of 168