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Council defers Ameriflex/benefits vendor decisions to allow further review and local presentations
Summary
Council deferred action on three HR benefit items (flex spending, HSA, and COBRA administration) for two weeks after staff explained bids and one low bidder conditioned COBRA pricing on also receiving flex administration; staff said COBRA may be brought in-house to save administrative costs.
City HR Benefit Manager Janet Fuller told the council July 13 that three benefit administration lines—FSA, HSA and COBRA—were marketed together but bid as individual line items. The city selected low bids for the FSA and HSA but plans to bring COBRA administration in-house to save administrative costs; one bidder (IBC) said their COBRA pricing was contingent on also receiving flex administration.
IBC's Stuart Lee urged caution about bringing COBRA in-house, calling COBRA administration a "federal law that is very scrutinized" and noting external administration is inexpensive and shifts legal risk away from the employer. Staff said the 2% local-preference purchasing rule applies to goods not services, and councilmembers asked to see Ameriflex present and to allow local vendors an opportunity to address concerns.
Council moved and approved a two-week deferral for items 20, 21 and 22 so Ameriflex and other vendors could present and staff could return with recommended next steps.
