SUBJECT
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Consideration to renew contract FY24-078 to ComPsych Corporation, Chicago, Illinois to provide an Employee Assistance Program (EAP) and to authorize the City Manager to execute all contract documents. This program allows employees to receive employee trainings and confidential assistance in many areas without having to access their medical benefits plan. The City of Laredo provides EAP coverage to approximately 2,900 employees and their dependents. The types of services provided are: confidential counseling (stress, anxiety, depression, relationships, grief, etc.) financial planning, legal support, smoking cessation to name a few. It is estimated that the program will incur a cost of approximately $52,548 per year, for a total contract value of $262,740. The contract is based on a fee of $1.51 per active employee per month. Contract has a five-year price rate guarantee and is subject to future appropriations. This contract was for an initial term of two (2) years with an option to extend the contract three (3) additional one (1) year periods. This is extension 1 of 3. Funding is available in the Human Resources Risk Management Fund - Employee Health and Wellness Division.
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PREVIOUS COUNCIL ACTION
On September 16, 2024, Council approved a two-year contract (Motion 24-1746).
BACKGROUND
Request for proposals were solicited through Cit-E bid from qualified firms to continue providing professional services for the City of Laredo’s Employee Assistance Program (EAP). ComPsych Corporation, Chicago, Illinois was considered by a City staff committee. This program allows employees to receive confidential assistance in many areas without accessing the health care system. The City of Laredo provides EAP coverage for approximately 2,900 employees and their dependents.
The Employee Health and Wellness Division, under the direction of the Human Resources Department, will administer the EAP. The EAP is a City-wide based program, and overall reporting on utilization shall be reported to Employee Health and Wellness on a quarterly, annual and as needed basis. Reporting shall include but is not limited to cases, services, treatments, referrals, utilization rates, management training, mandatory referrals and drug & alcohol/substance abuse case management. The contract is based on a fee of $1.51 per active employee per month and has a five (5) year price rate guarantee. This contract was for an initial term of two (2) years with an option to extend the contract three (3) additional one (1) year periods. This is Extension 1 of 3.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
• Goal 6.2: Promote psychological and emotional well-being.
• Policy 6.2.1: Expand access to behavioral health services, counseling, and mental wellness resources.
• Goal 7.1: Improve access to health services for all residents.
• Policy 7.1.2: Increase access to preventive health and wellness services, including behavioral health support.
• Goal 7.4: Foster a culture of health through education, prevention, and wellness initiatives.
• Policy 7.4.2: Support workplace wellness programs that promote healthy behaviors, resilience, and overall well-being.
• Goal 7.5: Strengthen public health systems and organizational capacity.
• Policy 7.5.3: Promote employee health and wellness initiatives that enhance workforce productivity and quality of public services.
Summary of alignment: This action aligns with the Viva Laredo Comprehensive Plan by ensuring the continued availability of comprehensive Employee Assistance Program (EAP) services that promote mental health, emotional well-being, and overall workforce wellness. The program provides confidential counseling, financial and legal assistance, substance abuse support, stress management, and employee training, helping employees address personal and workplace challenges before they impact health and job performance. By supporting a healthy, resilient municipal workforce and expanding access to preventive behavioral health resources, the program strengthens the City's organizational capacity to deliver high-quality public services while fostering a culture of health and wellness.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that Council approve the Motion.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Employee Health and Wellness Division
Account #: 594-2062-513-5551
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Funding is available through the Risk Management Fund-Human Resources Employee Health & Wellness, expense account 594-2062-513-55-51.