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City Clerk's Office Item # M7
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: November 10, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Heather Graham, Mayor
Marisa Pacheco, Director of Human Resources
SUBJECT: A RESOLUTION APPROVING A SERVICE AGREEMENT BETWEEN
THE CITY OF PUEBLO AND CROSSOVER HEALTH RELATING TO
EMPLOYEE HEALTH CLINIC SERVICES COMMENCING JANUARY 1,
2026
SUMMARY:
Attached is a Resolution accepting an agreement between the City of Pueblo and
Crossover Health relating to employee health clinic services.
PREVIOUS COUNCIL ACTION:
Not Applicable.
BACKGROUND:
The City has been working on long-range cost savings strategies to assist with controlling
the cost of health care and health care benefits for the City of Pueblo and Pueblo Transit
who share a medical health plan. The first element of the strategy was accomplished in
2019 through the move to a self-funded model to provide the City with the ability to
manage the financial portion of the health plan rather than being subject to the desires
of health insurance carriers. The self-funded model allows the City, not the insurance
carrier, to retain any surplus funds, to make plan design changes, and provides greater
data transparency.
Since 2019, the plan has amassed a significant reserve fund, which now provides the
opportunity to implement the next cost-saving measure which is to establish an on-site
employee health clinic. All services provided through the Clinic, to include primary care,
acute care, and urgent care, will be covered under the proposed agreement and will not
be charged to the insurance plan; thereby reducing plan utilization and claims
costs. Further, the clinic will provide convenient access to quality healthcare services at
little to no cost to benefit-eligible City and Pueblo Transit employees and their
dependents. On-site clinic services as proposed are used across the country by both
private and public sector employers and represent a progressive employer-of-choice
program designed to attract and retain employees
The City conducted a comprehensive and competitive request for proposal (RFP)
process through broker partner HUB International to identify the most competitive
provider for employee health clinic services. Crossover Health was the most competitive
bid for such services.
Assuming passage of this resolution, the agreement with Crossover Health will become
opening date of March 1, 2026. The term will be for a one (1) year period with two (2)
one-year options to renew followed by yearly options to renew thereafter.
FINANCIAL IMPLICATIONS:
The total cost of the service agreement is $906,553 annually, which is paid in monthly
installments of $75,546 per month. Funding for the services will be paid through the
reserve of the Self-Insured Health Benefit Fund. This cost represents fair market value
for these services based on the responses received in the RFP process.
BOARD/COMMISSION RECOMMENDATION:
Not Applicable.
STAKEHOLDER PROCESS:
A rating committee was convened to review the qualified Request for Proposal
Bids.
The unanimous decision following
review of the bids, vendor interviews, site visits and reference checks was Crossover
Health.
Additionally, the City Benefits Committee for the City consisting of representatives from
the Pueblo Association of Government Employees, International Brotherhood of Police
Officers Local No. 537, International Association of Firefighters Local No. 3,
Amalgamated Transit Union No. 662 and members of City management all unanimously
support the creation of the employee health clinic.
ALTERNATIVES:
The no-action alternative would be to reject the resolution resulting in the employee
health clinic not moving forward.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
1. City of Pueblo Crossover Health SOW with Occ Health (2025.10.30) (1)
2. City of Pueblo Crossover Health PSA (XO 2025.10.30)
RESOLUTION NO. 16171
A RESOLUTION APPROVING A SERVICE AGREEMENT
BETWEEN THE CITY OF PUEBLO AND CROSSOVER HEALTH
RELATING TO EMPLOYEE HEALTH CLINIC SERVICES
COMMENCING JANUARY 1, 2026
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The Service Agreement between the City of Pueblo and Crossover Health relating to
provision of employee health clinic services commencing January 1, 2026, a copy of which is
attached hereto, having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is authorized to execute and deliver the Services
Agreement in the name of the City, and the City Clerk is directed to affix the seal of the City thereto
and attest same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent with
the intent of this Resolution and the attached agreement to effectuate the transactions described
therein.
SECTION 4.
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED: November 10, 2025
BY: Brett Boston
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
CITY CLERK