San Benito awards employee-benefits broker contract to Valley Risk Consulting

The San Benito City Commission voted Aug. 19 to award RFP 2025-08-001 (amended) for employee-benefits insurance broker and consulting services to Valley Risk Consulting, staff and the selected firm said.

Finance staff presented a tabulation showing seven firms submitted responses to the amended RFP: Ortegaon, Valley Risk, Salazar, Lone Star, Higginbotham, Public Sector/Gallagher and Anchor Benefits. Stephanie, the city's finance director, told the commission that staff contacted references and that Valley Risk Consulting received multiple favorable references from neighboring public entities.

John Sakulinski, a Valley Risk representative, told commissioners the firm is based in South McAllen and works with multiple Rio Grande Valley public entities. He said Valley Risk will act as the city's agent/broker of record and that, as is standard in the market, compensation comes from carrier commissions rather than direct city fees. Stephanie said commissions are disclosed to the city on required procurement forms and estimated industry-standard commissions are in the 4% to 5% range for medical premium administration and higher for voluntary supplemental products; Stephanie said the city's current agent historically charged a 25% commission on voluntary supplemental products and that other bidders listed 15% or lower.

Why it matters: The broker will shop plans ahead of employee open enrollment and advise city staff on options for the self-funded plan the city currently uses. Staff and HR representatives told the commission the current provider has produced negative employee feedback, and staff said they needed a broker in place quickly to begin shopping plans for September open enrollment.

Discussion and vote

Commissioners asked for clarity on fees and conflict-of-interest questionnaires; Stephanie said some bidders had not submitted conflict-of-interest forms during the initial posting but were asked to resubmit with the amended solicitation and that bid materials are available for review. Several firms represented in the audience spoke briefly about their fee structures and local presence. The commission debated motions and amendments on the floor. After motions and seconds, a majority voted to award the RFP to Valley Risk Consulting. A single negative voice was recorded on the floor (name not specified on the hearing record); staff said detailed commission vote counts and the carrier-commission amounts will be available in procurement files.

Contract implementation and next steps

Staff said the selected broker will return with full presentation of options (fully insured, level-funded or self-funded carriers and proposed stop-loss arrangements) and will support HR for open enrollment. Staff expects the chosen firm to shop carriers and return comparative proposals before any change to the city's plan is finalized. Stephanie said the city will not accept a proposal that costs more than the city's current costs and that the broker selection was intended to produce comparable or reduced premium costs.

Ending

Commissioners directed staff to finalize contract documents and receive the broker's presentable plan options in time for September open-enrollment preparations.