Fiscal Note
This administrative service contract will not exceed $30,000 in 2006 and will increase by about $2600 in each of the subsequent years. Funding is included in the 2006 Requested Operating Budget and will need to be included in future years' budgets.
Title
To authorize the Mayor and City Clerk to sign a contract on behalf of the City with Employee Benefits Corporation (EBC) for third party adminstration of the city's flexible spending account, authorizing a 2-year contract for the 2006-2007 plan years, with options for renewal.
Body
WHEREAS, as a result of a competitive request for proposals and review process, a Employee Benefits Corporation (EBC) has been selected as a contractor to administer the City's flexible spending account program; and
WHEREAS, that RFP (#7746) requested bids on a two-year contract with the option of two additional 1-year renewals; and
WHEREAS, a resolution to authorize negotiation and signing a contract with EBC (RES-O5-00648) was adopted on August 2, 2005; and
WHEREAS, RES-05-00648 only authorized a 1-year contract term; however the Department of Human Resources has determined it is in the city's best interests to make a 2 year contract with the option for renewals as originally stated in the RFP and as negotiated w/ EBC, and APM 1-1 and MGO 3.61(5) require Council approval and accompanying fiscal authorization for service contracts with a duration of more than 1 year;
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are hereby authorized to enter into and sign a contract on behalf of the City with Employee Benefits Corporation for third-party administration of the flex spending program, for an initial term covering the 2006-2007 plan years, with two (2) optional renewal terms for the 2008 and 2009 plan years.