Background

The 2013 broker agreement was last extended in 2019 to June 30, 2021. In that extension amendment, the agreement renews automatically for two-year periods, unless at the end of any period of extension, a party gives the other party at least 60 days’ notice in writing of the intention to terminate.

At the March 10, 2021, meeting of the trust, Susan Posada offered an amendment with a simple 3-year extension (rather than the 2-year automatic extension) with no change in commission (Number 6 attachment to this Agenda Item). The Trust continued the item to the May 5, 2021, meeting.  After discussion in both an open session and in an executive session, there was insufficient time for an open session vote due to a City Council Work Session scheduled at 6:30 p.m. that day.

The item is on the agenda to consider an alternate proposal to extend the agreement for 3 years to July 1, 2024,  and on or before June 30, 2023, the Trust may give written notice to Ms. Posada of its intent to put out the Agreement for a request for qualifications and proposals for services to start July 1, 2024. 

Attachments to this Agenda
The first attachment is the proposal to give a year's notice of intent to go out for requests for qualifications and proposals.
The second attachment is the broker history.
The third through fifth attachments are the agreement and the amendments to date.
The sixth attachment is Ms. Posada's proposed amendment for a three-year extension.

Services 
The services include (but are not limited to) the following consultant and brokerage services on the following benefits for both the U.S. and Mexico Plans:
-Medical,
-Prescription Drugs,
-Dental,
-Short-term Disability/Salary Continuation,
-Long-term Disability,
-Group Life Insurance,
-Voluntary Life and Accidental Death and Disability, and
-Other related services.
 
In addition, the agreement provides that Ms. Posada will :
-give  information on legislative developments affecting employee benefit plans, 
 
-meet quarterly, semi-annually and annually for strategic planning for the Trust, and
 
-assist with the administration of the programs, including resolution of vendor service issues and addressing employee and management questions.

Renewal Options:
Option 1 - Renew broker agreement for three years with the option of going out to bid with one-years' notice in 2023.
Option 2 -  Renew broker agreement for a flat three years.
Option 3 - Renew automatically for two years with both parties having the option of 60-days' notice to end renewal at the end of the two years under the current amendment signed June 12, 2019.

 

I MOVE TO APPROVE OPTION ____ AS PRESENTED.