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APPROVE A MOTION AUTHORIZING AGREEMENT WITH ALLIANT INSURANCE SERVICES, INC. FOR BENEFITS CONSULTING SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager, or designee, to execute a three (3) year agreement with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Alliant Insurance Services, Inc, for benefits consulting services, not to exceed $750,000.00.
2. Approve findings which support and justify an exception to the competitive bidding process pursuant to the Stockton Municipal Code Section 3.68.070(A)(3) where the City held a competitive Request for Proposals.
It is further recommended that the City Manager is hereby authorized to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City currently contracts with Alliant Insurance Services, Inc. to provide benefit consulting and actuarial services. The agreement with Alliant will expire on January 31, 2027. Pursuant to Stockton Municipal Code (SMC) 3.68.070, the Human Resources Department issued a Request for Proposals (RFP) on June 4, 2026, to solicit proposals for Benefit Consulting Services for the City of Stockton (City) employee benefits program. On July 22, 2026, the RFP Evaluation Committee (Committee) evaluated and scored proposals and unanimously chose Alliant Insurance Services, Inc. (Alliant). If approved, the agreement with Alliant will begin on February 1, 2027, and continue for an initial three years through January 31, 2030, with an option to extend for two additional one-year periods (Attachment A).
Alliant will bill the City for services rendered based on a flat fee as noted in the contract; however, annual fees shall not exceed $150,000 per year or $750,000 for the five-year term for providing comprehensive benefit consulting as required by the City. The billing structure is similar and consistent with the current benefits consultant contract.
It is recommended that Council approve a motion to approve findings pursuant to Stockton Municipal Code (SMC) section 3.68.070 and authorize the City Manager to execute a Professional Services Agreement with Alliant.
DISCUSSION
Background
The City provides a comprehensive benefits program, including a variety of health and voluntary benefits, to its active employees and their eligible dependents. For medical, the City offers nine fully insured plan options through Kaiser Permanente and Sutter Health Plus. The City also offers two dental plan options through Delta Dental and one vision plan option through Vision Service Plan. Other City-provided benefits include a Section 125 plan for health care, dependent care expenses, a limited flexible spending account, commuter benefits, life insurance, long-term disability, employee assistance services, and voluntary benefit plans such as supplemental life insurance, short-term disability, accident, critical illness, and hospital indemnity.
In the past several years, the City has seen significant benefit-related changes affecting employees. It is critical that the City have the assistance of industry experts to help manage insurance vendor relationships, including negotiating premium rates, ensuring continued compliance with legislative requirements such as the Affordable Care Act, and conducting required actuarial services. The City’s benefit consultant is also directly involved in working with staff on designing benefit plans that meet the specific needs of plan participants, helping to improve healthcare delivery, and developing cost containment measures that maintain and reduce program costs, all while providing the best possible level of customer service and competitive benefits to all employees.
Present Situation
Alliant has been the City’s benefits consultant and provider of actuarial services since January 2022. Alliant’s contract has been extended twice for one (1) year each per original agreement. On May 19, 2026, the City Manager approved and authorized Human Resources staff to conduct the RFP process.
The City issued the RFP for Benefit Consulting Services on June 4, 2026, and received three (3) proposals. The City established a committee to evaluate the submitted proposals and select the best consulting company.
On July 22, 2026, the Committee reviewed and scored the three (3) proposals based on the following criteria:
1. Qualifications
2. Past Performance
3. Industry expertise
4. Customer Support and Service
The Procurement department reviewed and ranked the cost for each proposal and combined scores, ranking Alliant Insurance Services Inc. highest out of the three proposals.
After reviewing and evaluating the three (3) proposals, the Committee selected Alliant to provide benefits consulting services. The Committee unanimously ranked Alliant as its lead choice because of Alliant’s understanding of the City’s needs. The Committee also recognized Alliant’s understanding of the City’s unique needs through its work with many California public entities, including the California Association of Highway Patrolmen, East Bay Municipal Utility District (EBMUD), the City of Pleasanton, and the City of San Jose.
Alliant has public entity expertise with over 1,000 public entity clients, including many cities, counties, special districts, community college districts, and K-12 public schools. Alliant’s knowledge of the healthcare marketplace, combined with its experience working with clients of similar size, positions it to deliver highly customized, account-level service to the City.
Findings
Pursuant to SMC section 3.68.070(A)(3), Council may approve findings that support an exception to the competitive bidding process. These findings include:
1. Use of RFP is appropriate for this agreement because it relies on the evaluation of professional qualifications, experience, industry expertise, and customer support and service as the basis of the selection.
2. The City needs a specialized insurance broker networks and dedicated risk-modeling expertise that fall outside the City’s current internal scope.
3. Utilizing an insurance broker ensures the City achieves full market access and expert placement.
FINANCIAL SUMMARY
The annual cost for benefit consultant services with Alliant will be $150,000 per year during the five-year contract term, with a total cost not to exceed $750,000. Funding for this contract is budgeted in the HR FY26-27 budget.
Attachment A - Alliant Insurance Services, Inc. Agreement