City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 3, 2026 FROM: HUMAN RESOURCES WARDS: ALL
SUBJECT: PROFESSIONAL CONSULTANT SERVICES AGREEMENT FROM REQUEST FOR PROPOSAL (RFP) 2485 WITH THE ADVANTAGE GROUP OF TEMECULA, CA TO PROVIDE COBRA AND RETIREE BILLING & ADMINISTRATION SERVICES TO CITY OF RIVERSIDE COBRA AND RETIREE PARTICIPANTS ISSUE:
Approve the Professional Consultant Services Agreement from Request from Proposal (RFP) No. 2485 for The Advantage Group of Temecula, CA to provide COBRA and retiree billing administration services to COBRA participants and City of Riverside retirees for a contract effective January 1, 2026, through December 31, 2028, with two (2) additional (1) year extensions, not to exceed five years in total.
RECOMMENDATIONS:
That the City Council:
Approve the Professional Consultant Services Agreement from RFP 2485 with The Advantage Group (TAG) of Temecula, CA to provide COBRA and Retiree Billing Administrative Services January 1, 2026, through December 31, 2028, with an option to extend for two additional one-year terms; and Authorize the City Manager, or designee, to execute the agreement and make minor non-substantive changes.
BACKGROUND:
In the interest of meeting the needs of the City of Riverside COBRA participants and retirees, the Human Resources Department explored available options with highly qualified vendors that currently offer such services. The proposed services include billing, enrollment and termination of medical, dental and vision benefit plans for eligible participants enrolled in a COBRA or retiree benefits plan. The plans are offered to all City COBRA participants, retirees and eligible dependents paid for entirely by the enrollee.
DISCUSSION:
Request for Proposal (RFP) No. 2485 was posted on the City’s online bidding system, Planet Bids on August 18, 2025, seeking prospective bidder to provide Third Party Administrator (TPA) Services, which include providing COBRA and retiree billing administration of medical, dental, and vision plans to eligible employees, retirees and dependents in accordance with Federal law and City policies.
The solicitation notification is summarized in the table below:
Action
Number of Vendors
External Vendors Notified
114
City of Riverside Vendors Notified
215
Vendors who downloaded the RFP
15 Proposals received
2 A total of two proposals were received by qualified vendors. Both responses were found to be responsive and responsible. Under the guidance of the Purchasing Department, 3 City Staff, evaluated the proposals for 1 round, which resulted in The Advantage Group (TAG) ranking No. 1. The evaluation criteria, total points and rankings for the evaluation are summarized in the Table below.
Round 1
Evaluation Criteria
Total Points
Qualifications and Experience
35%
Pricing
20%
Professional References
10%
Scope pf Service, Delivery Strategy and Execution Plan
45%
Evaluation Results
Vendor
Location
Total Cost
Total Point
Rank
The Advantage Group (TAG)
Temecula, CA
$4.50
983.33
1 Total Administrative Services Corporation (TASC)
Madison, WI
$71.75
712.54
2 The Advantage Group has 35 years of experience and provides TPA services to more than 1,200 organizations nationwide including more than 100 California public sector organizations. As the TPA, The Advantage Group will assume responsibility for the administration of the City’s COBRA requirements including comprehensive reporting of COBRA-related activities available for City access anytime. The City will receive an assigned, certified COBRA specialist to perform all COBRA administrative duties. Additionally, The Advantage Group will provide billing and administrative services for the City’s retirees and eligible dependents which include, but are not limited to billing, collection, and distribution benefit premiums; all correspondence related to billing, enrollment, and termination of benefits; and a toll-free customer care center.
Based on the experience, qualifications, background, approach and methodology, and cost that The Advantage Group provides, the selection committee determined they would be the most qualified provider to administer COBRA and retiree billing administration for City retirees and COBRA participants.
Purchasing Resolution 24101 Section 508 states that, “Contracts procured through Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder, except that… (c) Contracts procured through Formal Procurement for Services or Professional Services, where a Request for Proposals or Request for Qualifications was used to solicit Bids, shall be awarded by the Awarding Entity in accordance with the evaluation criteria set forth in the Request for Proposals or Request for Qualifications.” The Purchasing Manager concurs that the recommended actions comply with the Purchasing Resolution 24101.
FISCAL IMPACT:
The total fiscal impact of this action is $0.50 per participant per month. Estimated annual usage amounts to an annual cost of approximately $13,000 based on most recent historical usage. Funds to cover these costs are budgeted and available in the General Fund, Human Resources, Professional Services account number 2100000-421000.
Prepared by: Michelle Vizcarra, Principal Human Resources Analyst Approved by: Rene Goldman, Human Resources Director
Certified as to
availability of funds: Julie Nemes, Interim Finance Director Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/Treasurer
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Professional Consultant Services Agreement with The Advantage Group.
RFP 2485 Award Recommendation
COBRA & Retiree Billing Plan ● Page 2