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Authorize Agreement with IGOE Administrative Services <br />October 20, 2020 <br />Page 2 <br />parking expenses. Healthcare account funds not used in the calendar year are eligible to roll over <br />into the next plan year for a maximum of $500. <br />The City does not contribute to the employee's accounts; the employee pays for their contributions <br />out of their paycheck. The City does pay a nominal administration fee on behalf of the employees <br />to administer the plan. <br />FISCAL IMPACT <br />The IGOE Administrative Services agreement has a bundled rate which includes implementation <br />and plans administration. There is a monthly flat rate of $4.00 per participant. This rate is <br />guaranteed until December 31, 2023 (Exhibit 1 and Exhibit 2). Each year, approximately 170 <br />eligible City of Santa Ana employees participate in the Section 125 Flexible Spending Accounts. <br />The number of participants varies, as well as certain fees (e.g., $5 per manual enrollment, ACH <br />Rejections, Reimbursement Reissuance) therefore a 10 percent contingency has been factored <br />into the total cost. Funds are budgeted and available for Fiscal Year 2020-2021 in the Employee <br />Group Insurance Fund, Insurance Payment Account (No. 08109053-64010) and will be budgeted <br />every subsequent year thereafter. <br />Account Unit - <br />Accounting Unit- <br />Fund <br />Account <br />Fiscal Year <br />Account# <br />Description <br />Descri tion <br />Amount <br />Employee Group <br />2020-21 (Jan. <br />Internal Service <br />Insurance, Insurance <br />2021 to Jun. 2021) <br />08109053-64010 <br />Fund <br />Payment <br />4,500.00 <br />Employee Group <br />Internal Service <br />Insurance, Insurance <br />2021-22 <br />08109053-64010 <br />Fund <br />Payment <br />9,000.00 <br />Employee Group <br />Internal Service <br />Insurance, Insurance <br />2022-23 <br />08109053-64010 <br />Fund <br />Payment <br />9,000.00 <br />Employee Group <br />2023-24 (Jul. 2023 <br />Internal Service <br />Insurance, Insurance <br />to Dec. 2023) <br />08109053-64010 <br />Fund <br />Payment <br />4,500.00 <br />Total <br />27,000.00 <br />Fiscal Impact Verified By: Kathryn Down, CPA, Executive Director — Finance and Management <br />Services Agency <br />Submitted by: Steven V. Pham, Executive Director — Human Resources Department <br />Exhibits: 1. IGOE Spending Account Services Agreement <br />2. IGOE Business Associate Agreement <br />25A-2 <br />