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AGENDA ITEM REVIEW FORM |
2.A.
Work Session
- Meeting Date:
- 12/06/2017
- Department Head:
- Olivia Jenkins
- Submitted By:
- Olivia Jenkins, Director of Human Resources, Human Resources Department
Action Requested:
Discussion Item - No Action to be Taken
ITEM:
Discussion and possible directions to staff on any and all matters regarding the approval of a six (6) months gym service agreement between the City of San Luis and 24/7 Get Fit. (Olivia Jenkins, Director of Human Resources and Janet Taylor, Wellness Committee Member)
SUMMARY:
The Wellness Committee met to discuss employees gym services and are recommending that the agreement between the City of San Luis and 24/7 Get Fit to be reviewed and authorized for a period of six (6) months, as stipulated in the attached contract. Wellness Committee members met last month and determined and recommend switching to 24/7 Get Fit gym for the remainder of the year.
Gym membership benefit for city employees is part of the City's Wellness Program to provide options and encouraging employees to become physically active in a non-work related environment, adopt and maintain healthy habits. Employee enrollment is limited to 50 employees per month, and in the last 12 months, the average enrollment number has been approximately 45.
The San Luis City Code on Purchasing Section 36.01(D) allows for documentation if 3 quotes cannot be obtained. These are the reasons for not being able to obtain 3 quotes:
There are only 2 Gyms available in San Luis. 24/7 Get Fit is offering a lower price than renewing the contract with Border Fitness (see the comparison in the fiscal impact). The Wellness Committee with input from the employees is recommending 24/7 Get Fit because they believe it to have more of the services the employees will use.
Gym membership benefit for city employees is part of the City's Wellness Program to provide options and encouraging employees to become physically active in a non-work related environment, adopt and maintain healthy habits. Employee enrollment is limited to 50 employees per month, and in the last 12 months, the average enrollment number has been approximately 45.
The San Luis City Code on Purchasing Section 36.01(D) allows for documentation if 3 quotes cannot be obtained. These are the reasons for not being able to obtain 3 quotes:
There are only 2 Gyms available in San Luis. 24/7 Get Fit is offering a lower price than renewing the contract with Border Fitness (see the comparison in the fiscal impact). The Wellness Committee with input from the employees is recommending 24/7 Get Fit because they believe it to have more of the services the employees will use.
RECOMMENDATION / SUGGESTED MOTION:
Discussion and possible directions to staff only, no action.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $6,000.00
- BUDGETED AMOUNT:
- $16,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Special Services, GL 100-125-80005, $59,457.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The proposed contract differs from the previous contract in the following ways:
| Proposed Contract | Previous Contract |
| Per employee fee $19.99(Maximum 50 employees) | Per employee fee $22.00(Maximum 50 employees) |
| 0 Administrative Fee | $250.00 Flat Administrative Fee |
| Penalty when fewer than 15 employee participants* | 0 Penalty |
* In the proposed contract, there is a penalty if the employee participation sinks to fewer than 15 or if the city terminates before the expiration of the contract. For the remaining employee participants, the city pays the $49.00 enrollment fee per employee and pays $20.00 for a key card for every employee.
In the alternative, the city could pay for the number of gym memberships necessary to keep the minimum of 15 gym memberships. So the worst case scenario, if there were zero employee participants for the entire 6 months, the city would pay:
$19.99 x 15 =$299.85 per month for 6 months = $1,799.10.
For the two and a half (2-1/2) years the city has been offering this benefit, the employee participation has not fallen below 35. So the city probably will not incur the penalty.