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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Professional Services Agreement with Self Insured Services Company, LLC dba Benefit Coordinators Corporation for BenXcel and Benefits Administration Services
1. Motion Authorizing the City Manager to execute a Professional Services Agreement with Self Insured Services Company, LLC dba Benefit Coordinators Corporation (BCC) for BenXcel online benefits administration and related services for a five (5) year term beginning October 1, 2026, with two (2) one-year options to extend for a total of seven (7) years, with an annual not-to-exceed amount of $150,000 for Years 1-4 and $155,000 for Year 5 and any optional extensions (subject to annual appropriation).
COUNCIL ACTION
Item Type: Consent Calendar
Approved for June 23, 2026 calendar
EXECUTIVE SUMMARY
Staff requests Council authorization to enter into a five-year Professional Services Agreement with Self Insured Services Company, LLC dba Benefit Coordinators Corporation (BCC) to continue operation of the BenXcel benefits administration platform and related services for the City’s medical benefits. BCC/BenXcel was implemented on October 1, 2024, following a competitive broker procurement process and has since demonstrated reliable performance in administering employee benefits, carrier integrations, COBRA services, and consolidated billing functions. Entering into a long- term agreement will provide operational stability, avoid costly system replacement and implementation efforts, prevent disruption to employee benefit administration, and secure favorable rate protections for the City. The annual not-to-exceed cost for these services is $150,000 for Years 1-4 and $155,000 for Year 5 and any optional extensions .
RECOMMENDATION
Authorize the City Manager to execute a Professional Services Agreement with BCC for BenXcel online benefits administration and related services for a five year term beginning October 1, 2026, with two one-year options to extend, and with an annual not-to-exceed amount of $150,000 for Years 1-4 and $155,000 for Year 5 and any optional extensions (subject to annual appropriation).
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ANALYSIS
In December 2023, the City conducted a competitive procurement for Insurance Broker of Record services and awarded a contract to Alliant Insurance Services, Inc. As part of the solicitation, proposers were required to identify and negotiate services and fees with a qualified Third-Party Administrator (TPA) to provide comprehensive benefits administration services, including eligibility management, data integration, consolidated billing and remittance, COBRA administration, Medicare eligibility tracking, participant support, and related functions.
Alliant's proposal identified Benefit Coordinators Corporation (BCC) as its TPA partner for these services. Following the award, the City worked with Alliant and BCC to implement the BenXcel benefits administration platform. Implementation began in 2024 and involved extensive system configuration, data mapping, and integration with the City's MUNIS system and benefit carriers, including Anthem, Kaiser, Guardian, VSP, and Voya. The platform was successfully implemented and went live on October 1, 2024, under an initial one-year Professional Services Agreement, followed by a second one-year agreement for FY 2025-26.
During this two-year operational period, the City evaluated the platform's performance in a live production environment and confirmed that it met City standards for data integrity, processing accuracy, carrier connectivity, and user experience. BCC/BenXcel has consistently demonstrated reliable performance in administering eligibility transactions, consolidated billing, COBRA services, and flexible spending account administration.
Based on the successful implementation and demonstrated operational stability of the platform, staff recommends entering into a multi-year Professional Services Agreement with BCC.
The proposed agreement establishes a long-term framework for continued benefits administration services, providing operational continuity, vendor stability, and predictable costs. Under the negotiated terms, BCC will provide services for an initial five-year term beginning October 1, 2026, with two optional one-year extensions, for a total potential contract term of seven years. In addition, the City negotiated favorable pricing protections that will help control future administrative costs:
• Four-Year Rate Guarantee: BCC will maintain its current administrative rates for the first four years of the agreement (October 1, 2026, through September 30, 2030), eliminating annual rate increases during that period.
• Limited Year Five Adjustment and Fee Cap: Beginning October 1, 2030 (Year 5), the agreement permits a modest rate adjustment and increase to the annual fee cap of $155,000. This maximum cap would also apply during any optional extension periods exercised by the City.
STAKEHOLDERS/OUTREACH
The primary stakeholders are City of Glendale employees who rely on the BenXcel platform for medical benefit management. Outreach regarding benefits enrollment is 5d3
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conducted through internal City portals, department-wide emails, and annual benefits orientations.
FISCAL IMPACT
The annual not-to-exceed amount of $150,000 was included in the HR Department’s Proposed FY 2026-27 budget. Because the rate guarantee keeps costs flat at the current spending level for the first four years, the increased fee cap of $155,000 is only anticipated to begin in Year 5 to absorb minimal programmatic increases.
Proposed FY 2026-27 Appropriation
Amount: Account String: Funding Source:
$150,000 43110-6160-HRD-0010-P0000 Medical Insurance Fund Department Cost Center Programs
Human
Resources
Administration
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is exempt from CEQA/NEPA requirements as it is an administrative activity.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Council may direct staff to conduct a competitive solicitation for benefits administration services. This approach would require a new procurement process and subsequent system implementation, including data conversion, carrier integrations, employee training, and transition activities, which could increase administrative costs and create potential disruptions to benefits administration services.
2.Council may approve a shorter-term agreement. While this option would provide greater flexibility to revisit the service arrangement sooner, it may limit the City's ability to secure long-term pricing protections and operational stability.
ADMINISTRATIVE ACTION
Submitted by:
Paula Adams, Chief Human Resources Officer
Prepared by:
Aymee Martin, Assistant Director of Human Resources
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Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS