Title:
Consider and take action on a resolution authorizing a three-year interlocal agreement with The University of Texas Health Science Center at Houston for employee assistance program services through UTEAP for an amount not to exceed $59,184 (Director of Human Resources)
Background:
Approval of this item will authorize the City Manager to execute an interlocal agreement with The University of Texas Health Science Center at Houston for employee assistance program services provided through UTEAP for the period of July 1, 2026 through June 30, 2029, at an anticipated cost of approximately $59,184 over the three-year term based on current covered participant counts.
The Employee Assistance Program (EAP) provides confidential assessment, referral, short-term counseling, and work/life resources for City employees, volunteer firefighters, and eligible dependents. The proposed UTEAP agreement covers the City’s full-time and part-time employees and includes volunteer firefighters with the Fire Department and their dependents. For purposes of the agreement, covered participants include employees and volunteer firefighters and are used for the per-participant-per-month cost calculation. The proposed UTEAP agreement provides assessment, referral, and short-term counseling of up to six sessions per participant per issue; legal, financial, identity theft, and WorkLife services; program promotion; training; and quarterly utilization reporting. The agreement also includes four hours of onsite training and education per year, participation in the annual Health/Benefits Fair, two hours per year of Psychological First Aid training, and three and one-half hours per year of Mental Health Safety training for managers, leaders, and supervisors.
The City reviewed EAP provider options, including UTEAP, Cigna, Deer Oaks, and Interface Behavioral Health. The comparison identified lower-cost proposals; however, the cost difference between UTEAP and the lower-cost proposals is modest when compared to the total annual EAP budget. Based on the proposed UTEAP rate of $2.00 per participant per month for 822 covered participants, including volunteer firefighters, the annual cost is $19,728. The use of 822 covered participants explains why the cost basis is higher than the City’s full-time equivalent count; the EAP benefit is not limited to full-time equivalent positions. Applying the comparison rates to the same covered participant count, UTEAP is approximately $98.64 more per year than Deer Oaks and approximately $1,479.60 more per year than Interface Behavioral Health, while remaining approximately $1,874.16 less per year than Cigna. Compared with the lowest-cost option identified in the comparison, the difference is approximately $1.80 per covered participant per year, or approximately $4,438.80 over the three-year term. The provider comparison is included as backup and states that it is a summary and not intended to be a contract.
Staff recommends remaining with UTEAP as a best-value and continuity option. EAP services depend on employee trust, confidentiality, and voluntary use. Changing providers for limited annual savings would require new employee communications, revised access information, revised HR referral processes, and a new utilization reporting structure. Remaining with UTEAP preserves continuity for a confidential benefit that employees are already using and that Human Resources reports has received positive informal feedback from employees who voluntarily disclosed their use of the service.
The most recent UTEAP utilization report supports continued use of the program. For the report year beginning July 1, 2025, the report shows 714 covered participants, 25 year-to-date EAP cases, and 5 year-to-date WorkLife cases. The report also shows an actual year-to-date utilization rate of 4.20%, an annualized utilization rate of 5.60%, and 90% of year-to-date referrals as self-referrals. In addition, 30% of year-to-date users reported awareness of the EAP through prior participation, indicating existing employee familiarity with the UTEAP program.
UTEAP is based in Houston as a program of The University of Texas Health Science Center at Houston and has municipal EAP experience. UTEAP’s services include 24-hour access, six counseling visits per problem area, leadership consultation, management referral support, quarterly utilization reports, training options, WorkLife resources, and legal, financial, and identity theft support. These services align with the City’s need to support a broad workforce, including employees in public safety, field operations, customer service, and administrative roles.
CONTRACT ORIGINATION: Agreement originated with The University of Texas Health Science Center at Houston / UTEAP and includes approval as to legal form on behalf of UTHealth. City Attorney’s Office review must be confirmed before final posting.
Attachments:
1. Proposed Resolution
2. Exhibit A - Agreement for Employee Assistance Program
3. League City EAP RFI Comparison
FUNDING
{X} Funds are available from Human Resources Professional Services Account 1500000-53050 in the amount of $4,932 for FY2026. Funding for FY2027 and FY2028 will be $19,728, and $14,796 for FY2029, and will be available upon Council’s approval of the budget.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor # 5 Trained, Valued, and Committed Workforce