REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE FOLLOWING:
SAN BERNARDINO COUNTY
BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE FOLLOWING:
BIG BEAR VALLEY RECREATION AND PARK DISTRICT
BLOOMINGTON RECREATION AND PARK DISTRICT
SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
June 23, 2026
FROM
LEONARDO GONZALEZ, Director, Human Resources Department
NOEL CASTILLO, Director, Department of Public Works - Special Districts
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Contract with Experian Employer Services, Inc., for Unemployment Insurance Administration Services and Income and Employment Verification Services and State of California Employment Development Department Power of Attorney Declaration Approval
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County, approve contract with Experian Employer Services, Inc., including non-standard terms, to provide Unemployment Insurance Administration Services and Income and Employment Verification Services for the period of July 1, 2026 through June 30, 2031, for a total cost of $84,000.
2. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, and the San Bernardino County Fire Protection District, approve the State of California Employment Development Department Power of Attorney Declaration forms that appoint Experian Employer Services, Inc., the contracted unemployment insurance administrator, to represent San Bernardino County, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, Board Governed County Service Areas, and the San Bernardino County Fire Protection District for Unemployment Insurance benefit reporting administration before the State of California Employment Development Department.
3. Acting as the governing body of San Bernardino County, authorize the Director of the Human Resources Department to sign and submit the Power of Attorney Declaration form to the State of California Employment Development Department.
4. Acting as the governing body of Board Governed County Service Areas, Big Bear Valley Recreation and Park District, and the Bloomington Recreation and Park District, authorize the Director of the Department of Public Works-Special Districts to sign and submit the Power of Attorney Declaration form to the State of California Employment Development Department.
5. Acting as the governing body of the San Bernardino County Fire Protection District, authorize the Fire Chief/Fire Warden to sign and submit the Power of Attorney Declaration form to the State of California Employment Development Department.
(Presenter: Leonardo Gonzalez, Director, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not require additional Discretionary General Funding (Net County Cost). The total amount of this contract will be $84,000 for the five-year contract term. The annual cost of the contract is $16,500 for the first through third year, $16,995 for the fourth year, and $17,505 for the fifth year. Adequate appropriation has been included in the Human Resources 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The California Unemployment Insurance Code establishes the unemployment insurance (UI) program and provides that certain benefits be provided to eligible individuals who separate from County service through no fault of their own. The Human Resources (HR) Department is responsible for administering the County’s participation in the UI program, including ensuring compliance with applicable state requirements, responding to claims for UI benefits, and doing so in the most cost-effective manner possible while minimizing liability and claims-related costs. In addition, HR is seeking to procure income and employment verification services to streamline the verification process across County departments by providing a centralized, secure, and efficient method of responding to verification requests from authorized agencies and third parties.
To support these objectives, in October 2025, HR conducted an informal solicitation for UI administration services and income and employment verification services. Following a comprehensive review of the proposals received, HR selected Experian Employer Services, Inc. (EES or Contractor), the County’s current service provider, based on its demonstrated experience, service capabilities, and cost effectiveness.
The recommended contract with EES (Contract) includes terms that differ from the standard County contract terms. The non-standard terms include the following:
1. The Contract contains an extended notice requirement for termination for convenience. The County may terminate the Contract for its convenience, with or without cause, with 60-day written notice of termination.
• County Policy 11-05 requires that the County have the right to terminate the contract, for any reason, with a 30-day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination
• Potential Impact: The County will need to be mindful of the additional notice period (i.e., 60 days) required to terminate the Contract.
2. The Contract limits Contractor’s liability. The Contract limits EES’s total aggregate liability to the County under the Contract, regardless of the nature of the legal or equitable right claimed to have been violated, to direct damages which shall not exceed the amount paid by the County to EES under the Contract for the particular services that are the subject of the alleged losses or injuries during the twelve-month period preceding the date on which the alleged losses or injuries by EES first accrued. Further, the Contract provides that notwithstanding any other provision of the Contract, in no event shall either party be liable to the other party for any incidental, indirect, consequential, punitive, special or increased damages, or damages to business reputation, damages arising from loss of business with third parties, or loss of profits from transactions with third parties, or willful infringement by the other party, whether any of the foregoing are foreseeable or not, and however caused, even if such party is advised of the possibility that such damages or lost profits might arise.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Contract amount, leaving the County financially liable for the excess. Additionally, the County will not be able to recover from Contractor, for incidental, indirect, consequential, punitive, special or increased damages, or damages to business reputation, damages arising from loss of business with third parties, or loss of profits from transactions with third parties, or willful infringement by EES, whether any of the foregoing are foreseeable or not, and however caused, even if either party is advised of the possibility that such damages or lost profits might arise.
3. Contractor’s indemnification obligations to the County are limited by the limitation of liability identified in bullet point number 2 above. Additionally, subject to the limitation of liability identified in bullet point number 2 above, the Contract further limits Contractor’s indemnification obligations to the County to third-party claims and/or Contractor’s gross negligence or willful misconduct in its performance under the Contract.
• The County standard contract indemnity provision requires, in sum, that the contractor indemnify, defend, and hold the County harmless from any and all claims, actions, losses, damages, and/or liability arising out of the Contract, from any cause whatsoever, including the acts, errors or omissions of any person, and for any costs or expenses incurred by the County on account of any claim, except where prohibited by law. The County’s standard contract provision for intellectual property indemnity includes, but is not limited to, the following: Contractor will indemnify, defend, and hold harmless County and its officers, employees, agents and volunteers, from any and all third party claims, costs (including without limitation reasonable attorneys’ fees), and losses for infringement of any United States patent, copyright, trademark or trade secret (Intellectual Property Rights) by any goods or services.
• Potential Impact: EES’ indemnification obligations to the County will be limited to the amount paid by the County to EES under the Contract for the particular services that are the subject of the alleged losses or injuries during the twelve-month period preceding the date on which the alleged losses or injuries by EES first accrued, and will be further limited to third-party claims or Contractor’s gross negligence or willful misconduct in its performance under the Contract. Claims could exceed the liability cap and the Contract amount, leaving the County financially liable for the excess. EES’ indemnification obligations to the County are limited such that EES will not be liable to the County or required to indemnify the County for any incidental, indirect, consequential, punitive, special or increased damages, or damages to business reputation, damages arising from loss of business with third parties, or loss of profits from transactions with third parties, or willful infringement by EES, whether any of the foregoing are foreseeable or not, and however caused, even if EES is advised of the possibility that such damages or lost profits might arise. If the County is sued for any claim, including intellectual property infringement based on its use of EES’ services, the County may be solely liable for the costs of defense and damages, which could exceed the total Contract amount.
4. The Contract does not require EES to meet all of the County’s insurance requirements pursuant to County Policies 11-05, 11-07 and 11-07 SP, including all of the County’s additional insured requirements, including that additional insured endorsements shall not limit the scope of coverage for the County to vicarious liability and shall allow coverage to the County to the full extent provided by the policy. The Contract does not contain all of the County’s standard proof of coverage requirements requiring that certificates of insurance must provide that such insurance shall not be terminated or expire without 30 days written notice to the County, or to furnish the declaration page to the County within 15 days of commencement of the Contract. The Contract allows EES to choose an insurance carrier with a minimum “Best” Insurance Guide rating of “A- VII” or an “equivalent rating with a similar rating agency.” Similarly, in the event that any policy of insurance required under the Contract does not comply with the Contract requirements, is not procured, or is cancelled and not replaced, the Contract does not grant the County the right to obtain insurance or require that premiums paid by the County be promptly reimbursed by Contractor or that County payments to EES be reduced to pay for the County purchased insurance. The Contract also does not require EES to execute amendments within 30 days due to changes requiring additional types of insurance coverage or higher coverage limits, and also does not contain all of the County’ standard insurance requirements for Workers’ Compensation/Employer Liability, Deductibles or Self-Insured Retention. The Contract does not contain certain other standard County insurance requirements, including coverage for explosion, collapse and underground hazards, Errors and Omissions Liability Insurance, or Directors and Officers Insurance.
• County policy requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and as set forth in County policy (including specifically, County Policies 11-05, 11-07 and 11-07 SP) and in the County standard contract.
• Potential Impact: The County has no assurance that EES will be financially responsible for claims that may arise under the Contract, which could result in expenses to the County that exceed the total Agreement amount.
HR recommends approval of the Contract, including the non-standard terms, because EES was determined to provide the best overall value to the County based on demonstrated experience, proven performance, service capabilities, and cost effectiveness. HR further determined that the benefits of securing specialized unemployment insurance administration and employment verification services, including regulatory compliance support, streamlined administrative processes, improved responsiveness to verification requests, and potential reductions in claims-related costs, outweigh the risks associated with the non-standard contract provisions.
Recommendation No. 2 will approve the State of California EDD Power of Attorney (POA) Declaration forms that appoint EES to represent San Bernardino County, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, Board Governed County Service Areas, and the San Bernardino County Fire Protection District for UI benefit reporting administration before EDD, which is necessary to comply with California Unemployment Insurance Code mandates. The POA Declaration form also appoints EES to represent San Bernardino County, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, Board Governed County Service Areas, and the San Bernardino County Fire Protection District before EDD for changes to their mailing address for benefit reporting purposes.
In addition, Recommendations No. 3, No. 4 and No. 5 will authorize the Director of the Human Resources Department, Director of the Department of Public Works-Special Districts, and Fire Chief/Fire Warden to sign and submit the POA Declaration forms to EDD.
PROCUREMENT
In October 2025, HR conducted an informal solicitation for UI administration services and income and employment verification services. Requests for quotations were solicited from three vendors. The following vendors submitted responsible and responsive bids:
|
Proposer Name |
Location |
5-Year Contract Cost |
Annual Excess Claim Fees |
|
Experian Employer Services, Inc |
Costa Mesa, CA |
$84,000 |
None |
|
UC Advantage |
Aliso Viejo, CA |
$82,822 |
• Protestable claims: $20 per claim after 165 claims/year • Non-protestable claim: $10 per claim after 468 claims/year |
|
ADP Smart Compliance |
Roseland, NJ |
$64,000 |
• $20.33 per claim after 630 claims/year • Rate subject to renegotiation if protest rate exceeds 10% |
HR evaluated the proposals based on vendor qualifications, service capabilities, experience, pricing, and the ability to meet the County’s operational and compliance requirements. As part of the evaluation process, HR reviewed written proposals and participated in virtual demonstrations conducted by each vendor.
Based on the evaluation, HR recommends awarding the contract to EES, the County’s current provider of these services. EES demonstrated extensive experience in UI administration services and income and employment verification services, strong capabilities, and the best overall cost effectiveness. The two lower-cost proposals include claim volume limitations that could result in additional claim costs if claim activity exceeds projected levels. Given the County’s historical claims experience, with approximately 24% of an average of 670 claims per year being subject to protest, those pricing structures present a greater risk of unanticipated expenses. EES’s fixed-fee, unlimited-claims pricing model provides predictable and stable costs by eliminating additional fees associated with fluctuations in claims volume.
Purchasing supports this competitive procurement based on the informal quotes solicited for the UI administration services and income and employment verification services.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jose A. Mendoza, Deputy County Counsel, 387-5455) on June 8, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on May 26, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on May 28, 2026; Innovation and Technology Department (Don Le, Interim Chief Information Officer, 388-5501) on June 8, 2026; and County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077, Matthew Dalton, Administrative Analyst, 387-5005, and Jessica Trillo, Principal Administrative Analyst, 387-4222) on June 5, 2026.