Fiscal Note
This contract will cost approximately $30,000-40,000 per year. Funding is included in the 2010 Operating Budget.
Title
To authorize the Mayor and City Clerk to sign a two-year contract with an automatic two-year renewal with Employee Benefits Corporation (EBC) for third party administration of the City’s flexible spending account.
Body
WHEREAS, as a result of a competitive request for proposals and review process, Employee Benefits Corporation (EBC) was selected as a contractor to administer the City’s flexible spending account program (Health care and dependent care reimbursement program) beginning in 2006; and
WHEREAS, EBC has been providing these services for the City since 2006 with positive results, few employee complaints, high quality of service to both City staff and employees, and quick reimbursement turn-around time; and
WHEREAS, the 2009 contract will expire at the end of March, 2010 and renewal is necessary to continue to offer flexible spending accounts to City employees for 2010; and
WHEREAS, based on EBC’s positive past performance, Human Resources recommends continuing to purchase these services from EBC for the 2010 and 2011 benefit plan years; with an automatic renewal for an additional two (2) years unless the City chooses to terminate the contract; and
WHEREAS, the approximate cost for these services will be $30-40,000 per year, MGO 4.26(4)(b) requires council approval for a service contract over $25,000 per year if the contract was not competitively bid, and it is the recommendation of the Human Resources Department and the Purchasing Division that it would be most advantageous to the city to continue to receive services from EBC as provided in MGO 4.26(4)(a)7.
NOW, THEREFORE, BE IT RESOLVED, City staff are authorized to negotiate and the Mayor and City Clerk are authorized sign a contract with Employee Benefits Corporation for third-party administration of the flex spending program, for a term covering the 2010-2011 p...
Click here for full text