title
MOTION AUTHORIZING THE CITY MANAGER TO AWARD THE BID AND EXECUTE A CONTRACT WITH HALCYON BEHAVIORAL FOR EMPLOYEE ASSISTANCE PROGRAM (EAP) SERVICES
recommendation
RECOMMENDATION
It is recommended that the City Council adopt a motion authorizing the City Manager to award a bid and execute a Professional Services Contract and all supporting documents with Halcyon Behavioral for Employee Assistance Program (EAP) services.
body
Summary
The City currently contracts with Integrated Behavioral Health (IBH) to provide Employee Assistance Program (EAP) services to its full-time employees and their dependents. The agreement with IBH expires on September 30, 2020. On March 18, 2020, the City Manager approved the use of a Request for Proposal (RFP) process to solicit proposals for EAP services. The RFP was conducted through Bid PUR 20-006. On July 15, 2020, the RFP Committee (Committee) interviewed the proposers and unanimously chose Halcyon Behavioral (Halcyon). If approved, the agreement with Halcyon will commence on October 1, 2020, and continue for an initial three years until September 30, 2023, with an option to extend for two additional one-year periods.
Halcyon will bill the City for services rendered based on a flat rate per active City employee as noted in the contract; however, fees shall not exceed $200,000 for the full five-year contract term for providing EAP services as required by the City. This billing structure and pricing is similar and consistent with the current EAP consultant contract. If the two one-year extensions are approved, the rate per active City employee will not increase.
DISCUSSION
Background
The City has provided EAP services to its employees and their dependents since 1979. The intent of this program is to provide free and confidential mental health services for employees and their family members to improve overall well-being and assist with life/work issues. Additionally, for the City and its employees, the EAP is accessed as a means of reducing absenteeism and disciplinary actions, improving job performance, providing training and a vast array of resources, plus is available to assist with specific critical issues that may arise.
From September 1, 1986, through April 30, 2011, the City provided EAP services through a contract with Options, the Employee Assistance Program of San Joaquin County.
On February 7, 2011, the City Council approved a resolution to contract with Integrated Behavioral Health (IBH) for EAP services effective May 1, 2011.
On July 31, 2014, the City conducted another bid for EAP services and five (5) bids were received and reviewed for consideration. IBH was selected as the only viable conforming bid. The IBH contract was approved by Council and became effective January 1, 2015. The current contract with IBH will expire on September 30, 2020.
Present Situation
Currently, the City provides EAP services to approximately 1,600 employees and their eligible dependents. The benefit is provided to every full-time employee and their dependents regardless of their enrollment in a City-sponsored medical plan. Through the bid process, three (3) providers submitted bids:
• Integrated Behavioral Health (IBH)
• Humana
• Halcyon Behavioral
The City’s benefits consultant, Gallagher Benefit Services, Inc., assisted staff with the RFP process while conforming to the City’s procurement standards. The City’s Procurement Division and Gallagher performed a technical and financial review of the bids submitted and determined that the bids submitted by IBH, Humana, and Halcyon were conforming with specific conditions required by the bid’s scope of services. All three vendors submitted a viable bid for EAP services.
On July 15, 2020, the Committee interviewed the three (3) proposers and asked vendor-specific questions based on the responses to the RFP, as well as a series of general questions based on the following evaluation criteria:
1. Experience and Qualifications
2. Understanding of the needs of the employees of the City of Stockton with emphasis on safety personnel
3. Traditional and non-traditional access and communication methods
4. Responses to general interview questions
5. Responses to vendor-specific questions
After interviewing each proposer and evaluating their response, the Committee selected Halcyon to provide EAP services. Overall, the Committee ranked Halcyon as their lead choice regarding Halcyon’s qualifications, professional and industry experience, locality, and pricing.
If approved by Council, the contract with Halcyon Behavioral will become effective October 1, 2020, for an initial three-year term through September 30, 2023, with an option to renew for two (2) additional one-year terms. Human Resources staff and Halcyon have reviewed the contract and agree with the terms and conditions.
FINANCIAL SUMMARY
Halcyon’s contract rate is $1.62 per employee per month. The annual cost of the new contract is approximately $1,344 (4.5%) more than the expiring contract. Based on current enrollment of about 1,600 full-time employees, the anticipated cost for the first year is approximately $31,104. Sufficient funding was included in the FY 2020-21 Annual Budget for the cost of EAP services, within the Health Benefits Internal Service Fund Administration account number 552-5510-572. Funding for the remaining years of this contract will be included in each year’s annual budget development.
Attachment A - Halcyon Contract