SR-08-25-2015-3R
City Council
Report
City Council Regular Meeting: August 25, 2015
Agenda Item: 3.R
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To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: Authorization to execute an agreement with Holman Professional Counseling
Centers for the City's Employee Assistance Program
Recommended Action
Staff recommends that City Council authorize the City Manager to negotiate and
execute a contract/professional services agreement with Holman Professional
Counseling Centers, a California-based company, in an amount not to exceed $210,000
for one year, with one-additional one-year renewal option in the amount of $210,000 on
the same terms and conditions for a total amount not to exceed $420,000 over a two-
year period, with future year funding contingent on Council budget approval.
Executive Summary
As part of the City’s employee benefits program, the City provides an Employee
Assistance Program (EAP) including a supplemental Substance Abuse Program (SAP)
for City employees. Staff recommends that these services be provided by Holman
Professional Counseling Centers at a cost not to exceed $420,000 over a two-year
period.
Background
The City makes available to all eligible employees as part of their benefit package an
Employee Assistance Program (EAP) and a Substance Abuse Program (SAP).
Through the Employee Assistance Program, employees and eligible dependents can
access services such as five free face-to-face outpatient counseling sessions per year,
a 24 hour hotline staffed by licensed counselors for crisis intervention, access to on -line
webinars and articles on wellness topics, elder and child care referrals, a 25% discount
on legal services, financial planning consultation, grief support and parenting groups.
Additionally, employees can access outpatient and inpatient services for substance
abuse. Employees are able to access services for both the EAP and SAP confidentially.
SAP also serves as a necessary component of the City’s Drug and Alcohol Policy.
Previously, the EAP/SAP vendor has been Value Options and annual service renewal
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agreements were facilitated through the City’s third party fee-based insurance broker,
Arthur J. Gallagher & Co.
Discussion
In 2014, the City’s third party insurance broker, Arthur J. Gallagher was notified by the
previous EAP/SAP provider, Value Options, that they would no longer be offeri ng an
insured SAP benefit. Based on this information, Gallagher solicited proposals from
vendors to provide Employee Assistance Program and supplemental Substance Abuse
Program Services as part of the City’s overall employee benefits program. Two
proposals were submitted and analyzed by Gallagher. Based on the recommendation
by Gallagher, Human Resources staff interviewed the proposers and selected Holman
Professional Counseling Centers to provide EAP and SAP services. Holman was
selected based on their experience providing employee assistance and substance
abuse program services, their ability to provide services that match the existing benefit
levels, and their competitive pricing. Additionally, Holman proposed a service model that
was tailored to the needs of the City of Santa Monica and provides ongoing and direct
client contact with the company owners. Holman’s proposal also includes additional
employer services such as critical incident response/debriefing, mental health and
wellness seminars, and training for employees at a higher level and lower cost than the
previous provider and the alternative proposer. Staff is requesting authorization for the
City Manager to execute a one year agreement through December 31, 2015 with an
option for a one year renewal.
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Financial Impacts and Budget Actions
The agreement to be awarded to Holman Professional Counseling Centers is for an
amount not to exceed $420,000. The agreement will be charged to account
01274.51197B and expenditures will be transferred to the departments incurring
EAP/SAP services. Funds in the amount of $210,000 are available in various
FY 2015-16 department budgets. Future year funding is contingent on Council budget
approval.
Prepared By: Donna Peter, Director
Approved
Forwarded to Council
Attachments: