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HomeMy WebLinkAboutContracts & Agreements_101-2026AGREEMENT TO PERFORM PROFESSIONAL SERVICES This agreement for the provision of employee assistance services ("Agreement") is made and entered in this 7s day of July, 2026 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City)" and Alliant Insurance Services, Inc., a California corporation ("Consultant"). City and Consultant are sometimes individually referred to herein as a "Party" and, together, as the "Parties." In consideration of the mutual promises contained herein, City and Consultant agree as follows: ARTICLE I — ENGAGEMENT OF CONSULTANT 1.1 City hereby engages Consultant to provide broker services for employee benefits (the "Services"). L2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services. ARTICLE 2 -• SERVICES O(�NITLTANT 2.1 The Services that Consultant shall perform are more particularly described in Exhibit "A," entitled "Scope of Services and Fees," which is attached hereto and incorporated herein by reference. 2.2 ' Consultant shall comply with applicable federal, state and local taws and regulations in the performance of this Agreement including but not limited to State prevailing wage laws. ARTICLE 3—RESPONSIBILITIES-OF CITY 3.1 City shall make available to Consultant information in its possession that may assist Consultant in performing the Services. 3.2 City designates the Jenna Yorck, Human Resources Manager, as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. ARTICLE 4 m. PERFORMANCE OF SERVICES 4.1 The term of this agreement shall commence on July 1, 2026, and end on June 30, 2029 ("Initial Term"). City shall have the right to extend the Initial Term of the Agreement for two (2) additional one (1) year terms (each, a "Renewal Term"), on the same terms and conditions of this Agreement by providing not less than thirty (30) days written notice to 11cmoblgwcmeotstAgreement w Alliant.bm.06.24.2026.FY2$26.23$.dmx Consultant prior to the expiration of the Initial Term, The Initial Term and the Renewal Term are collectively referred to herein as the "Penn." 4.2 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to the City, consistent with City Council adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City Staff. ARTICLE 5 -- PAYMENTS TO CONSULTANT 5.1 Consultant agrees to accept carrier commissions as full compensation for the services performed under this agreement, in accordance with Exhibit "A" entitled "Scope of Services and Fees." 5.2 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile, if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section: CX City Clerk City of Redlands 35 Cajon Street, Suite 200 P.O. Box 3005 (mailing) Redlands, CA 92373 Phone: 909-798-7531 jdonaldson@cityofredlands.org Con us ltannt Henry Beceiro First Vice President, Lead Consultant Alliant Insurance Services, Inc. 18100 Von Karman Ave., 101 Floor Irvine, CA. 92612 Phone: 949-756-0271 Henry.Beceiro@Alliant.com 5.3 In addition to the compensation described in this Agreement, Consultant and/or its related entities may receive additional compensation for underwriting, program administration, and other services that are (a) provided to either City or the insurance carrier, (b) not contracted for directly by City, and (c) outside the scope of Services described in Exhibit A. This additional compensation, if any, will be included in the cost of the premium City pays to the carrier and accordingly, will create no additional cost for City. Notwithstanding this paragraph, any services contracted for directly by City may be subject to additional costs. 5.4 With exception, Consultant may also receive income as a result of a contingent or supplemental income agreement with the insurance carriers. City may opt -out of having its premiums included in the calculation of indirect income by accessing the "opt -out" form from the link on Consultant's website: http://www,alliant.com/Legal- Notices/Pages/Disclosure-Policy.aspx. The parties acknowledge that indirect income, if 2 f:1c"m\Agmce tsLAgme=n1 w Alllant.bm.06.24.2026.FY2526,235.dmx any, is determined by insurance carriers, and if City does not opt -out, it remains the carriers' exclusive decision to include or exclude certain premiums in any calculation. The availability of information regarding the make-up of any indirect income payment is at the carrier's discretion. ARTICLE 6 --• INSURANCE AND INDEMNIFICATION 6, t insurance required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Except for Professional Liability, Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City. A. Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self -insured or exempt from the workers' compensation laws of the State of California. Consultant shall execute and provide City with Exhibit "B," entitled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference prior to occupancy of the Premises. B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured, and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. C. Professional Liability insurance throughout the Term of this agreement in the amount of One Million Dollars ($1,000,000) per claim made. D. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles. City shall be named as an additional insured, and such insurance shall be primary and non-contributing to any insurance or self- insurance maintained by City. E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. in the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor. 3 l kmolAgrenm=OAgmement w Alliant.bm..06.24.2026.FY2526-235.dwx 6.2 Consultant shall defend, indemnify and hold harmless City and its elected officials, employees and agents from and against any and all claims, losses or liability, including reasonable attorneys' fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services. ARTI LE1-- --ICTS OF INTEREST 7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant's Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement. 7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant: A. Does not make a governmental decision whether to: (i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize the City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof. B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302. 7.3 In the event City officially determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Clerk. ARTICLE 8 -- GENERAL CONSIDERATIONS 8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other r\cmo\Ag¢em=10Agme nl w Allimt.bm.06.24.2026.FY2526-235.doex relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party. 8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City's immediate termination of this Agreement. 8.3 Records, drawings, designs, cost estimates, electronic data files, databases and any other documents specifically developed by Consultant for City in connection with its performance of the Services, and any copyright interest in such documents, shall become the property of City and shall be delivered to City upon completion of the Services, or upon the request of City, Any reuse of such documents, and any use of incomplete documents, shall be at City's sole risk. Notwithstanding the foregoing, City acknowledges that Consultant, in performing the Services, may use patented and copyrighted materials, trade secrets, proprietary data, know-how, ideas, concepts, methodologies, practices, processes, procedures, techniques and written materials of Consultant that existed prior to the commencement of the Services or are developed independently of this Agreement, and City agrees that Consultant shall retain all right, title, and interest in and to such items; provided, however, that Consultant hereby grants City a non-exclusive, non -assignable, perpetual, royalty -free license to use such items that are embedded in Consultant's deliverables and are required for City's own internal use of Consultant's deliverables. 8.4 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor its agents shall have control over the conduct of Consultant or Consultant's employees, except as herein set forth, Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation. 8.5 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant, Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, in accordance with Section 8.3 herein, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other 5 I:kmo\Agmcm mtsWgrccmcnt w Alliant,bm.0624.2026.FY2526-235.doca information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination. 8.6 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant. 8.7 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, an amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant. 8.8 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of law's provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California. 8.9 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement. IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement. CITY OF R DLANDS 4y'A`� Mario Saucedo, Mayor ATTEST: iea onaldson, City Eierk 6 L1cmo\Agreem"\Agreement w All iant.bm.Q6.24.2o26.FY2526-235.doex ALLIANT INSURANCE SERVICES, INC. By: /2\ Henry Becei , First Vice President EXHIBIT W SCOPE OF SERVICES AND FEES SCOPE OF SERVICES: Consultant will provide broker services for employee benefits. The pricing will include the following broker services A. Strategic Planning Development of a multi -year benefits strategy aligned with organizational goals, budget objectives, workforce needs, and market trends. B. Pre -renewal Meeting (strategy, market update, compliance, etc.) A meeting held prior to renewal to review claims experience, discuss cost drivers, evaluate market conditions, address compliance changes, and align on the upcoming renewal approach. C. Renewal Negotiation, Analysis, and Recommendations Negotiating with carriers for the most competitive rates and terms, analyzing renewal proposals, and providing recommendations based on data, benchmarks, and cost projections. D. Procurement of Alternative Cost Saving Initiatives and Options Identifying and evaluating alternative vendors, plan designs, funding models, and programs that may reduce costs while maintaining quality coverage. E. Utilization Review and Trend Analysis Assessment of how employees are using benefits, identifying cost trends, and recommending interventions to manage claims and improve care quality. F. Access to Consultant Purchasing Programs Providing access to preferred pricing or programs available through the broker's network, group purchasing power, or proprietary offerings. G. Legislative Compliance Support and Contract Review Guidance on federal and state benefits laws (e.g., ACA, ERISA), along with reviewing contracts to ensure compliance and appropriate terms. H. Health Care Reform Compliance and Consulting Monitoring changes in health care reform laws and advising on necessary adjustments to stay compliant and avoid penalties. BemoWgmementslAgmement w Alliant,bm.06.24.2026.FY2526-235.dmz I. Contract Review Review of carrier, vendor, and benefits administration contracts to ensure accuracy, proper rates, performance terms, and protections for the employer. J. Administration and Implementation Support Assistance with annual renewals, plan changes, system updates, carrier coordination, and overall benefits administration logistics. K. Benchmarking Comparison of your benefit plans to similar organizations or regional/national data to ensure competitiveness and alignment with public sector standards. L. Employer Advocacy and Problem Resolution Support for HR/benefits staff` in resolving carrier issues, escalations, billing discrepancies, and service concerns. M. Employee Advocacy Services Direct support for employees when resolving claims issues, understanding benefits, or navigating carriers and vendors. N. Open Enrollment Coordination and Support Planning and executing open enrollment activities, including scheduling, materials, carrier sessions, and system readiness. 0. Employee Communication Development (brochures, notices, wallet card) Creation of benefits communication materials that are clear, compliant, and easy for employees to understand. P. Employee Surveys Designing and administering surveys to measure employee satisfaction, needs, and perception of benefits to inform future planning. Q. Wellness Program Consulting, Analysis, and Recommendations Evaluation and development of wellness strategies, programs, and initiatives aimed at improving employee health and reducing claims costs. R. HR Workplace Services Access to an HR compliance and resource platform that provides tools, training modules, policy templates, and HR/legal guidance. 8 19cmo\Agmcmcnts%Agmement w Alliant.bm.06.24.2626.FY2528Q35.docx FEES: Compensation to the broker is made through insurance carrier commissions from entities. Consultant will serve as a broker and shall be compensated on a commission -based structure by insurance carriers for each policy sold and maintained by the City. OPTIONAL SERVICES: 1. The Consultant (broker) or its related companies might earn extra money They can receive additional compensation for certain behind the scenes services such as: a Underwriting support • Program administration • Other insurance related services 2. These services may be provided too: The. City, or a The insurance carrier (the insurance company) 3. These services are not part of the City's direct contract Meaning: • The City did not specifically hire or pay the Consultant for these tasks. • They are outside the scope of the required Services listed in Exhibit A. 4. flow is this extra compensation paid a Any extra payments to the Consultant come from the insurance carrier, not directly from the City. • They are built into the insurance premium the City pays --just like normal carrier operating costs. a Because of that, the City does not pay anything extra out of pocket, 9 lAemokAgmemmOAgr emem w Alliam.bm.06.24.2026.FY2526-235.3ocx IM 11171107Y WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one, or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees, CHECK ONE )< I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code § 1861). _I affirm that at all times; in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California. However, at any time, if I employ any person that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance. I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. ALLIANT INSURANCE SERVICES, INC. By. /I - 2..- y _ Date: %✓NP 2 q � 'O?C Henry Beceirn, irst Vice President 10 lA moUgreementsMgmement w Alliant.bm.06.24.2026.NY2526Q35.dmx