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The Request for Proposal (RFP) was sent to Cooper, Muenter, Fratus; Sitzmann, Morris, Lavis; and <br />Driver Alliant, in October, 2004. The three firms sent proposals to Human Resources for evaluation. <br />Criteria for selection, as outlined in the RFP, included understanding of the work required, quality and <br />responsiveness of the proposal, demonstrated competence and professional qualifications, experience <br />and success implementing new and enhancing existing programs in government agencies, references, <br />and costs. The recommendation to change to Driver Alliant is a reflection of their proven performance <br />and reputation with other public agencies, and ability to provide expert representation in the market to <br />secure the most cost effective benefits available. <br /> <br />Staff reviewed all three proposals, checked references, and reviewed the performances and services of <br />current brokers. Driver Alliant is being recommended based on proposed service capabilities, past <br />performance, excellent references and experience with public sector entities in identifying cost-effective <br />plans. <br /> <br />It is staff's recommendation that having one broker with increased service capabilities will assist the <br />City in securing the best plan sponsors for employee benefits for the most competitive costs, in part by <br />the broker's ability to leverage their "book of business". Driver Alliant will facilitate a much greater <br />degree of disclosure by plan sponsors regarding utilization data and underwriting specifics. This data <br />analysis is particularly useful in negotiating lower rates and competitive bids by other plan sponsors. <br /> <br />FISCAL IMPACT <br /> <br />Insurance brokers usually receive commissions from plan sponsors and do not directly bill the City for <br />their services, so the fiscal impact is only an indirect one. Cooper, Muenter, Frants currently receives <br />a commission of 3 % on the Health Net medical plan and 3 % on the Ameritas dental plan. Driver <br />Alliant proposes a 3% commission on health plans and a 3% commission on the dental plan. Driver <br />Alliant's proposal includes a much greater range of services. <br /> <br />Respectfully Submitted, <br /> <br />Assistant to the City Manager <br /> <br />Sue Rossi <br />Finance Director <br /> <br />Nelson Fialho <br />City Manager <br /> <br />SR:05:013 2 <br /> <br /> <br />