Title:
Consider and take action on a resolution authorizing a three-year agreement with Flores for Flexible Spending Account (FSA), Health Savings Account (HSA), and COBRA administration services in an amount not to exceed $53,109 (Director of Human Resources)
Background:
Approval of this item will authorize the City to retain Flores as the administrator for the City's Flexible Spending Account (FSA), Health Savings Account (HSA), and COBRA programs, with services continuing under the new contract terms effective October 1, 2025, for a three-year term.
The City of League City, in collaboration with HUB International, conducted a Request for Information (RFI) to evaluate FSA, HSA, and COBRA administrative service providers. HUB recommended switching to I-Solved based on slightly lower annual costs. However, after thorough review, staff determined that transitioning to a new provider would introduce significant disruption to employees and benefits administration. Flores has consistently provided high-quality customer service, and the cost difference between Flores and I-Solved was relatively small ($3,654 / year). These factors led to the decision to retain Flores to ensure service continuity and protect the City's best interests.
The annual cost under Flores is estimated at $17,703, which includes administration fees for FSA, HSA, and COBRA services. The total cost over the three-year term is estimated at $53,109.
Attachments:
1. Proposed Resolution
2. Flores Services Proposal
3. HUB RFI Summary Presentation
4. Cost Comparison Chart
5. Flores Report Card
FUNDING
{ X }Funding in the amount of $17,703 is available in Non-Departmental Employee Insurance Account #1650000-50700 in FY2026. The remaining $35,406 will be budgeted in FY2027 and FY2028, upon Council’s approval of future budgets.
STRATEGIC PLANNING
{ X } NOT APPLICABLE