Insurance Broker RFP 25_18.pdf

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RFP No. 25-18

EMPLOYEE BENEFITS INSURANCE BROKER SERVICES

August 11, 2025

City of Escondido

Human Resources – Benefits Division

201 N. Broadway

Escondido, CA 92025

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REQUEST FOR PROPOSALS No. 25-18

EMPLOYEE BENEFIT BROKERAGE CONSULTING SERVICES

I. INVITATION

The City of Escondido is seeking proposals for Benefits Broker/Consultant services from a professional, highly qualified benefits brokerage and consulting firm to provide a full range of services related to the design, implementation, analysis, maintenance, improvements, and communication of an employee insurance benefits program.

The goal is to initiate these broker services effective January 1, 2026. The contract will commence on January 1, 2026 and propose to remain in effect through December 31, 2028. The contact resulting from this RFP will also include, at the City’s discretion, three additional one-year terms.

Interested and qualified brokers/consultants who have demonstrated their ability at comparable work are invited to submit proposals.

Prospective consultants must submit one original, three copies and an electronic file in Portable

Document Format (PDF) on a USB drive and must be received by 5 p.m. on September 15, 2025

(“Submission Deadline”) Any proposals received after the Submission Deadline will not be accepted. Proposals must be in a sealed envelope or package labeled RFP 25-18 Employee

Benefits Insurance Broker Services”. Submittals and requests for information relative to this

Request for Proposal should be addressed to:

City of Escondido Patrice Russell – Human Resources Manager 201 N. Broadway Escondido, CA 92025 Patrice.Russell@escondido.gov

Each proposal shall be in accordance with specifications, instructions, and information contained in this RFP. The City reserves the right to reject any or all proposals for any reason it deems necessary, to waive defects or irregularities in any proposal, and to accept the proposal deemed the most advantageous to the City.

II. BACKGRUND OF THE CITY OF ESCONDIDO

The City of Escondido operates under the City Council/City Manager form of government. The City has approximately 775 full-time and 240 part time temporary employees. In addition to Unclassified/Management and Unclassified Clerical/Technical Positions, City employees are represented by six bargaining units:

• Escondido Police Officers Association Sworn Personnel

• Escondido Police Officers Association Non-Sworn Bargaining Unit

• Escondido Firefighters Association Safety Personnel and Non-Safety Personnel

• Escondido City Employees’ Association Supervisory Bargaining Unit

• City of Escondido Maintenance and Operations Bargaining Unit Teamsters Local 911 mailto:Patrice.Russell@escondido.gov

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• City of Escondido Administrative, Clerical, Engineering Unit Teamsters Local 911

The City offers the following benefit plans:

• Health Plans (Kaiser HMO and Kaiser HDHP)

• Dental Plans (Delta Self-Insured PPO and Delta fully-insured DMO)

• Vision Plan (Anthem Blue Cross)

• Employee Assistance Program (Cigna)

• Health & Dependent Care Flexible Spending Accounts (TRI-AD)

• COBRA Administration (TRI-AD)

• Legal Plan (Arag)

• Pet Insurance ( Spot Pet Insurance)

• 529 Plan (TIAA-CREFF)

• Life Insurance (The Hartford)

• Short and Long Term Disability (The Hartford)

• Accident, Critical Illness, Hospital (The Hartford)

• Retirement (CalPERS)

• Deferred Compensation (MissionSquare)

Retirees are eligible to enroll in Kaiser Retiree health group plan. The City does not contribute towards their medical premium.

III. SCOPE OF WORK

The selected consultant shall perform a full range of services related to the design, implementation, maintenance, communication, and improvement of the City’s group health, dental, life, short /long-term disability, vision, and voluntary plans.

1. Assisting the City in administering all group insurance plans, responding to questions from and providing information to staff, and providing other consulting services during the course of the plan year.

2. Evaluating potential health care strategic components in the areas of cost and innovation that fit the City’s business and demographics.

3. Researching and advising the City of any new developments in the law and employee benefit programs on an ongoing basis.

4. Reviewing claims experience, claim service, and claim administration to ensure maximum benefit to the City.

5. Determining and recommending the most economical funding methods for the benefit programs.

6. Representing the City in all negotiations with providers on all issues including those related to premiums, benefit levels, plan design, and special terms and conditions.

7. Meeting with and providing reports to various City representatives including City Council, City

Manager, Human Resources staff and the Insurance Committee.

8. Assisting the City with the implementation and communication of new programs or changes to existing programs, which will include attending and presenting information at Open Enrollment meetings.

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9. As requested by the City, preparing bid specifications and soliciting proposals from insurance markets which specialize in group insurance plans as needed. Evaluate bids and bidders, including administration, claim payment procedures, customer service, network, financial soundness, and identifying the most cost-beneficial package from among the various bidders.

10. Consultant shall provide annual Health & Wellness Expo, electronic employee communication materials, and COBRA Administration.

11. In November of each year, Consultant shall prepare a forecast for the following year of insurance premiums and services cost, and provide notice of interim changes when anticipated.

12. Assist the City in evaluating, implementing, and measuring the City’s wellness program.

13. Advise the City on any federal mandated compliance requirement relevant to City programs, benefit plans, and insurance plans, and provide guidance, when requested by the City, in developing compliance strategies.

IV. SCHEDULE FOR THE RFP (Subject to change)

RFP released August 11, 2025

Deadline to submit questions August 25, 2025 by 5 p.m.

Responses to RFP due September 15, 2025 by 5 p.m.

Appropriate Committee reviews responses

Week of October 6, 2025

Conduct Interviews with selected broker/consultants

Week of October 20, 2025

Select broker/consultant Week of November 3, 2025

Broker/consultant agreement finalized (signed agreement returned to the City with all applicable documents)

November 10, 2025

City Council Adoption December 10, 2025

Contract Effective January 1, 2026

The City expressly reserves the right to make modifications to the estimated completion dates indicated above.

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V. CONTRACT LENGTH

This proposal is for awarding a contract to cover a two year period with three one-year options to renew under the same terms and conditions. The first year applicable in the agreement will begin on January 1, 2026.

The City may, at its option and with the approval of the consultant, extend the period of the agreement for up to three additional years provided the scope of the engagement does not change. The parties may extend the initial agreement term via amendments. Termination of the

Agreement by the City can occur at any time during the Agreement period and at the City’s discretion.

VI. The contract award will be made after selection of one respondent’s proposal from among all respondents with implementation of services to follow. However, this RFP does not indicate a commitment by the City to award a contract to any successful respondent. The City intends to evaluate the proposed services based upon the data presented in response to the RFP. The proposals will then be reviewed based on qualifications, specific experience, references, familiarity with the services and pricing, and then rated according to which company best meets the City’s requirements.

Those firms whose proposals most closely meet the needs of the City will be required to attend an interview with the City staff. Failure to attend this meeting, if selected, may give cause to have your proposal declared non-responsive, at the City’s discretion.

VII. SELECTION & AWARD CRITERIA

The contract resulting from this RFP will be awarded to the most responsive and responsible consultant whose proposal conforms to the requirements of this RFP and is considered to be the most advantageous to the City, taking into consideration not just the proposal price, but also the evaluation criteria set forth in this RFP. The City will act as the sole judge of information submitted in response to this RFP. The City reserves the right to: (i) request additional information or clarification of any submitted information, (ii) cancel or amend this RFP, including the proposal evaluation process, at any time, and (iii) not enter into any contract resulting from this RFP and issue similar solicitations in the future.

The RFP responses will be evaluated based upon the following:

• The degree to which each proposal responds to the needs of the City and this request

(responsiveness, preciseness, thoroughness, etc.)

• Perceived ability of broker to negotiate a benefits program that meets the needs of the

City.

• Broker’s demonstrated expertise in negotiating benefit plans on behalf of clients similar to the City.

• The experience, professional credentials, and references of those persons who will be assigned to service the City’s account.

• Responsiveness to communication needs; ability to provide a prompt response to City requests for information.

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• Broker’s and other assigned staff’s availability and accessibility, including the location of the office that will be servicing our account.

• Your conceptual approach and ideas related to service, as well as how you will manage the City’s account.

• Broker’s ability to provide proactive support to the City Human Resources function including dissemination of current general and legal updates as well as time-sensitive insurance carrier information.

• Method of scope of compensation (net cost of broker services)

General Information

All proposals and related materials become the property of the City and may be returned only at its option.

The City is not obligated to accept any proposal or to negotiate with any respondent. All transactions are subject to the final approval of the City who reserves the right to reject any or all proposals without cause or liability.

All costs directly or indirectly related to responding to RFP (including all costs incurred in supplementary documentation, information or presentation) will be borne by the proposer.

VIII. BROKER/CONSULTANT QUALIFICATIONS

The proposal response must be concise, well organized, and demonstrate the firm’s understanding of the Scope of Work and key personnel qualifications. The proposal shall include, at a minimum, the information listed below:

1. Title page. Include the name of the proposer’s firm, address, telephone number, name of contact person, date and the subject: EMPLOYEE BENEFIT BROKERAGE CONSULTING

SERVICES.

2. Cover letter and Executive Summary.

a. This letter should be signed by the person in your firm who is authorized to negotiate terms, render binding decisions and commit the firm’s resources, certify that all information is accurate, state that the proposal is valid for 120 days from submission date, give full contact information regarding the proposal, and include a statement of your intention to bid on all sections of the scope of work.

b. Summarize the proposer’s understanding of the work to be done and make a positive commitment to perform the work in accordance with the terms of the proposal being submitted. This section should summarize the key points of your submittal and should answer the question: “Why should the City of Escondido engage this firm?”

c. You must include a statement that by submitting a proposal in response to this RFP, you acknowledge that you have read and understand the contents of the RFP and agree to comply with the requirements and conditions contained in the RFP and all of the applicable Exhibits/Attachments hereto. Failure to provide statement/acknowledgement may result in rejection of proposal.

3. Firm information

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a. Organizational structure of the firm, including the type of firm (individual, partnership, corporation, subsidiary, or government entity); and history, including number of years in existence, number and location of offices, total number of employees.

b. Names and titles of all principals/officers of the firm (name, title, phone number).

c. List applicable certifications and licenses and the associated numbers.

4. Project-related experience

a. Describe the ability of your firm to provide local service to sites/offices located in

Escondido.

b. How many years has your firm been providing benefits to municipalities?

c. List the municipalities your firm provided similar services for within the past three (3) years. Include the number of employees for each agency.

d. Discuss your company’s resources and activities as they relate to knowledge and understanding of our industry.

e. Describe the responsibility, experience and qualifications of the individual(s) who would comprise the service team.

f. Describe the firm’s philosophy for servicing an account and commitment to customer service and quality assurance.

g. Describe your firm’s resources or methods to provide education on best practices, trends or hot topics.

h. Describe the organization’s legal research capabilities and how you communicate legislative updates to your clients.

i. Describe your renewal process and timelines.

j. Describe your firm’s capabilities with regard to communication. Include ongoing employee communication/open enrollment and web based communications.

k. Describe the resources and tools available for benchmarking.

l. What resources and tools do you offer clients around wellness initiatives?

IX. FEE INFORMATION

Describe your method of compensation for your services. Discuss how your method of compensation will be transparent and reported to our team. Does your company accept any carrier “overrides”? If on a commission basis, would your company be taking any form of compensation beyond the commission built into our premium rates? If selected, what are your methods of disclosing compensation to the City and the frequency of that disclosure?

X. CONTRACT

Before the City executes a contract resulting from this RFP, the selected firm shall furnish the City certificates evidencing insurance, as required by the City of Escondido. The city shall be named as additional insured. Certificates of Insurance must be accompanied by the applicable endorsements for the specific insurance policy.

The City’s standard Consulting Agreement is attached to this RFP as Exhibit 1. The successful consultant’s proposal submitted in response to this RFP may become part of the resulting

Consulting Agreement (Exhibit 1). Any proposed waiver, or change to the resulting Consulting

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Agreement (Exhibit 1) must be clearly identified in Prospective consultant’s proposal. All contracts, and any addenda thereto, shall be subject to the City’s sole discretion and approval.

The requirements and service standards of this RFP and the responses of the successful consultant will be incorporated by reference into the resulting agreement regarding the Project. The successful consultant shall enter into a contract within 20 calendar days of the City’s notice of award in substantially the same form as the Agreement (Exhibit 1).

XI. OTHER PROPOSAL INFORMATION

1. Reservations. Issuance of this RFP does not commit the City to award a contract, to pay any costs incurred in the preparation of a response to this request, or to procure a contract for services. The execution of any contract pursuant to this RFP is dependent upon the approval of the City, which may require City Council approval.

The City reserves the right to waive any irregularities or informalities in the proposal or proposal process. The City retains the right to reject all submittals. Selection is also dependent upon the negotiation of a mutually acceptable contract with the successful respondent.

2. Additional Information. Questions regarding this solicitation shall be submitted in writing to:

Patrice Russell

Human Resources Manager – Benefits & Workers’ Compensation

City of Escondido

201 N. Broadway

Escondido, CA 92025

760-839-4865

Patrice.Russell@escondido.gov

Respondents/firms are cautioned that any oral statements made that materially change any portion of this RFP are not valid unless subsequently ratified by a formal written amendment to this RFP.

The deadline for submission of questions is no later than 5 p.m. on August 25, 2025. No technical questions that may materially change any portion of this RFP will be accepted during the seven calendar days prior to the time and date set for receipt of proposals.

3. Right to Cancel. The City reserves the right to cancel, for any or no reason, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements.

4. Variations in Scope of Work. The City may materially change the scope of work. Such changes may include additions, deletions, or other revisions within the general scope of RFP requirements. No material changes or adjustments shall be made without a written amendment to this RFP, signed by the City Clerk.

mailto:Patrice.Russell@escondido.gov

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5. Applicable Laws. The contract awarded shall be governed in all respect by the laws of the

State of California, and any litigation related to the contract or this RFP shall be brought in the

State of California, with a venue of the San Diego Superior Courts. The firm awarded the contract shall comply with all applicable Federal, State, and local laws and regulations.

6. Nonconforming Terms and Conditions. Any proposal that includes terms and conditions that do not conform to the terms and conditions of this RFP is subject to rejection as non-responsive. The City reserves the right to permit the respondent to withdraw non-conforming terms and conditions from its proposal prior to action by the City Council of the City of

Escondido to award a contract.

7. Late Submissions: Any proposal received after the date and time specified for receipt shall not be accepted or considered.

8. Independent Contractor Status. The respondent agrees, if selected, that he or she shall perform the services as independent contractor(s) and not employee(s) of the City of

Escondido. The City shall not be considered the employer of respondent. The respondent understands, if selected, the respondent shall have the sole responsibility for deciding the manner and means of providing the services, except as outlined in the final contract and its attachments or exhibits.

9. Indemnification. The respondent agrees, if selected, to indemnify and hold harmless the City and all its officers and employees from any and all liability, claims, costs, including reasonable attorney’s fees, demands, damages, expenses, and causes of action as outlined in the contract.

10. Examination of Solicitation. The respondent understands that the information provided herein is intended solely to assist the respondent in submittal preparation. To the best of the

City’s knowledge, the information provided is accurate. However, the City does not warrant such accuracy, and any errors or omissions subsequently determined will not be construed as a basis for invalidating this solicitation. Further, by submitting a response to this solicitation, the respondent represents that he or she has thoroughly examined and become familiar with work required in the solicitation and is capable of performing quality work and to achieve the objectives of the City of Escondido.

XII. GENERAL CONDITIONS

PLEASE READ CAREFULLY. THE FOLLOWING GENERAL TERMS AND CONDITIONS ARE A PART

OF ALL PROPOSALS SUBMITTED IN RESPONSE TO THIS RFP AND THE RESULTING CONTRACT.

This RFP as advertised, the specification requirements detailed in this RFP (including the following General Provisions), and documents on file with the City pertaining to the Project are subject to all provisions of the Ordinances of the City of Escondido. Each prospective consultant submitting a response to this RFP warrants that the submitted proposal is genuine

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In submitting a proposal in response to this RFP, each prospective consultant agrees to the following general terms and conditions:

1. Public Information: The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal in response to this RFP indicates the prospective consultant’s acceptance of all terms and conditions contained in this RFP, including all exhibits and attachments hereto, unless clearly and specifically stated otherwise.

2. Confidential Information: Any information deemed confidential or proprietary should be clearly identified by the prospective consultant as such. Information identified as confidential or proprietary will be protected and treated with confidentiality to the extent permitted by applicable local, state, and federal law.

3. Addendums: The City reserves the right to amend, alter, or revoke this RFP at any time. Any modifications, clarification, or additions will be distributed via email as an addendum.

4. Proposal Preparation Cost: The City is not obligated to reimburse any prospective consultant for expenses incurred in preparing proposals in response to this RFP. All Prospective consultants shall bear their own costs, fees, and expenses incurred in preparing proposals in response to this RFP.

5. Withdrawal of Proposal: A prospective consultant may modify or withdraw their proposal, either personally or by written request via email, at any time prior to the Submission Deadline. Such requests should be directed to the City’s Project Manager.

6. Inaccuracies or Misinterpretations: Subject to the City’s sole discretion, the City may terminate a prospective consultant from the RFP process or terminate any agreement with the Prospective consultant if the City determines that said Prospective consultant has: (i) made a material misstatement, (ii) made a material misrepresentation, or (iii) provided materially inaccurate information.

7. Optional Items: Prospective consultants may elect to provide recommendations and pricing for optional items. Pricing for optional items shall not be included in the minimum requirements pricing.

8. Business License: The successful consultant shall be required to obtain a City of Escondido

Business License pursuant to the terms of Exhibit 1.

9. Signature: All proposals shall be signed in the name of the prospective consultant and shall bear the original signature in longhand of the persons duly authorized to sign the proposal. Obligations assumed by such signature shall be fulfilled.

10. Right to Reject Proposal: The City reserves the right to reject any or all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any items or combination of items. The City is not obligated to explain or justify its selection or rejection of

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11. Right to Conduct Personal Interviews: The City reserves the right to conduct personal interviews or require oral presentations of any or all prospective consultants prior to selection.

12. Right to Request Additional Information: Prospective consultants shall furnish additional information as the City may reasonably require. The City reserves the right to investigate the qualifications of prospective consultants as it deems appropriate.

13. Right to Determine Financial Responsibility and Viability: The City reserves the right to request information pertaining to the financial stability of a prospective consultant to allow an appraisal of a prospective consultant’s current financial condition.

14. Understanding the Services to be Performed: By submitting a proposal in response to this RFP, each prospective consultant certifies that they have fully read and understand this RFP and have full knowledge of the scope, nature, quantity, and quality of services to be performed. Each prospective consultant understands that, if successful, they will be required to enter into a written contract in substantially the same form as Exhibit 1.

15. Award of Contract: Proposals submitted in response to this RFP will be analyzed and the contract awarded to the responsible prospective consultant whose proposal conforms to this RFP and is considered to be the most advantageous to the City, taking into consideration not just the proposal price, but also the evaluation criteria set forth in this RFP. If the prospective consultant does not execute a contract in substantially the same form as Exhibit 1 within 20 days after notification of award, the City may, subject to its sole discretion, (i) give notice to the Prospective consultant of the City's intent to select from the remaining Prospective consultants or (ii) issue a new RFP for the services.

16. Contract Funding: The City’s funding of any agreement resulting from this RFP shall be on a fiscal year basis and is subject to annual appropriations. Prospective consultant acknowledges that the

City is a municipal corporation, is precluded by the State Constitution and other laws from entering into obligations that financially bind future governing bodies, and that, therefore, nothing in this RFP shall constitute an obligation of future legislative bodies of the City or State to appropriate funds for any agreement resulting from this RFP. Accordingly, prospective consultants acknowledge and agree that the funding for any agreement resulting from this RFP shall be contingent upon appropriation of funds.

17. City Provisions to Prevail: The terms of this RFP and the terms of any agreement resulting from this RFP shall govern the services. Any standard terms and conditions of the successful consultant shall not be acceptable to the City unless expressly agreed to by the City by separate document.

The City reserves the right to reject a proposal containing unacceptable conditions as non-responsive as a condition of evaluation or award of the proposal.

18. Equal Employment Opportunity: The consultant awarded the project shall comply with all equal employment opportunity provisions of federal, state, and local non-discrimination laws, orders, regulations and guidelines as may be applicable to the consultant and be in effect during the performance of any agreement resulting from this RFP.

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19. Consulting Agreement: Consultants submitting a proposal in response to this RFP shall be prepared to use the City’s standard contract form (Exhibit 1) rather than its own contract form.

Services may not commence until Agreement for services is executed.

20. Prospective Consultant’s Invoices: Invoices shall be prepared and submitted to the City of

Escondido. Invoices shall be submitted on a monthly basis and contain the following information:

Invoices should include all applicable sales or other taxes, and shall be remitted to appropriate agencies on the City’s behalf. All payments made pursuant to this contract are not assignable and shall only be made payable to the seller.

21. Payment Terms: The City’s payment terms are Net 30 days from date of invoice. No pre-payment or partial up front down payment will be made for any services or equipment. The time period allowed for payment, as indicated on the face hereof or offered by quote, bid, or proposal shall commence upon receipt of Prospective consultant’s invoice or upon receipt of the goods or services, whichever is later.

22. Insurance Requirements: The successful consultant must have insurance in accordance with the requirements listed in Exhibit 1.

23. Public Agency Clause: It is intended that other public agencies (e.g., city districts, public authorities, municipal utilities, public school districts and other political subdivisions or public corporations of California) shall have the option to participate in any award made as a result of this solicitation. The City shall incur no financial responsibility for their order placement and payments to the successful consultant. This option shall not be considered in proposal evaluation.

State whether said option is granted:

YES NO

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NONCOLLUSION DECLARATION

TO BE EXECUTED BY PROSPECTIVE CONSULTANT AND SUBMITTED WITH PROPOSAL

The undersigned declares:

The foregoing proposal submitted in response to the City of Escondido’s Request for Proposals No. 25-18 is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The proposal is genuine and not collusive or sham. The prospective consultant has not directly or indirectly induced or solicited any other prospective consultant to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any prospective consultant or anyone else to put in a sham proposal, or to refrain from submitting a proposal. The prospective consultant has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the prospective consultant or any other prospective consultant, or to fix any overhead, profit, or cost element of proposal price, or of that of any other prospective consultant. All statements contained in the proposal are true. The prospective consultant has not, directly or indirectly, submitted their proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham proposal, and has not paid, and will not pay, any person or entity for such purpose.

Each individual executing this declaration on behalf of a prospective consultant that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that they have full power to execute, and does execute, this declaration on behalf of the prospective consultant.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ______________________.

Date

Signature Signature

Title Title

Of Of

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY

MICHAEL R. MCGUINNESS, City Attorney

By: ______________________