DATE: October 7, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Human Resources Department
TITLE: APPROVAL OF AGREEMENT WITH SPRING HEALTH FOR THE CITY OF OCEANSIDE’S EMPLOYEE ASSISTANCE PROGRAM (EAP)
RECOMMENDATION
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Staff recommends that the City Council approve a three-year Professional Services Agreement (PSA) with Spring Health for a not to exceed amount of $180,000 for the City’s Employee Assistance Program (EAP), with two additional one-year renewal options that may be administratively approved, subject to annual funding availability. The annual cost for the fourth and fifth years may increase by up to five percent (5%) annually, resulting in a maximum potential cost of $63,000 for Year 4 and $66,150 for Year 5, for a total potential five-year amount not to exceed contract amount of $309,150. Staff further recommends that the City Council authorize the City Manager, or designee, to execute the agreement upon receipt of all required supporting documents.
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BACKGROUND AND ANALYSIS
The City currently provides Employee Assistance Program (EAP) services to full-time employees and their eligible dependents through Anthem EAP. The EAP is an important component of the City’s employee benefits program, providing confidential counseling, support, and resources to assist employees and their families with personal, family, emotional, and other life challenges. The City has experienced high utilization of its EAP services, demonstrating a significant need for these resources. In 2025, the City conducted a competitive Request for Proposals (RFP) process to evaluate EAP service providers and identify opportunities to enhance the program. Due to the timing of the RFP process in relation to the City’s budget cycle, implementation of a new EAP provider was deferred and the City continued its existing arrangement with Anthem for the 2026 plan year. With an increase to the EAP budget approved as part of the Fiscal Year 2026/27 budget, the City is no...
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