For City Council Meeting [July 14, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Angela McCray, Director of Human Resources & Risk Management
Title
Request City Council to Approve the Professional Services Agreement with Benefit Bridge a cooperative partnership through the relationship and current Broker of Record, Keenan & Associates for services related to the City’s overall Benefit Administration Program and Employee Self-Service Portal.
Body
BACKGROUND:
The City’s new broker, Keenan & Associates (“Keenan”), hired October 2019 has a unique product that connects the City’s benefits to their carriers (including CALPERS) and allows the employees as well as their dependents on-line access to benefit enrollment including; the capability to manage, view and control various aspects of employee benefit program. The use of this product will streamline the employee benefit and open-enrollment process and allow employees access to their benefits and resource information 24/7.
The cost of this product is $20,000 a year with an additional $7,500 the first year for installation and activation. The proposed not-to-exceed amount of $27,500 will fund a one (1) year contract/agreement which includes setup, enrollment, annual installation, initial training and implementation to the Benefit Bridge portal. Upon conclusion of the first year, the $20,000 will become an annual cost in order to ensure enrollment and self-service access. This first year, if approved, as a result of plan design and carrier changes, we will sustain a savings of approximately $19,325 to assist in the funding for the initial cost and installation for the program.
Staff is processing the agreement now, in order to begin the building, development and training components associated with the program, in order to effectively launch a June/July testing and Go-Live date for all employees. New funds are not required for implementation of this program.
ANALYSIS/DISCUSSION:
Staff is seeking City Council approval to authorize the Professional Services Agreement to begin work and build-out of the on-line self-service portal specific to plan design and contracted carriers relative to the City of Rialto.
Benefit Bridge dramatically improves the accuracy of benefits eligibility and billing for our employees while at the same time significantly reduces administrative time and cost in the Human Resources/Risk Management Department in the management of these programs. Further, this system is a cost-effective solution for our city (public agencies) to enhance the processes associated with open enrollment, benefits content, and direct benefit related communications. Through a single portal, employees will be able to access benefit enrollment, eligibility, communications, self-service tools to maximize the effectiveness of our benefit plans, and administrative resources.
ENVIRONMENTAL IMPACT:
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b) (5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsible manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report and the attachments associated with said staff report.
FINANCIAL IMPACT:
Operating Budget Impact
Costs of this program are included in the current operating budget.
Capital Budget Impact:
This action has no impact on the Capital Fund Budget.
RECOMMENDATION:
Staff recommends that the City Council formally approve the Professional Services Agreement with Benefit Bridge to allow City staff to begin platform build-out for an anticipated go-live date of August 2020.