Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Carolyn Bloede, Director, Sustainability Department
Subject: Amendment to the Agreement with Edenred Benefits, LLC to Provide Employee Commute Alternative Benefit Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Edenred Benefits, LLC, to provide commute alternative benefit services, extending the term by seventeen months through October 30, 2026, and increasing the amount by $2,750,000 to an amount not to exceed $9,150,000.
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BACKGROUND:
On July 27, 1993, this Board established a monthly transit subsidy for County employees to “encourage employees to commute to work in a manner other than driving alone” (Resolution No. 057387). This also ensured compliance with Bay Area Air District Regulation 14, Rule 1: Bay Area Commuter Benefits Program, which requires large employers to reduce drive alone commutes and promote alternative travel modes.
On January 26, 2021, this Board adopted the Government Operations Climate Action Plan (GOCAP) (Resolution No. 077960). This committed the County to reduce employee commute-related greenhouse gas emissions, which are primarily generated by drive alone travel, by 95 percent by 2035. A comprehensive employee commuter benefits program positions the County to successfully fulfill the Board’s commitment.
On May 14, 2019, this Board approved an agreement with Edenred Benefits, LLC (Edenred), formerly Edenred Commuter Benefit Solutions LLC, for $2,900,000 with a contract term of May 14, 2019 through May 13, 2022, to provide commute alternative benefit services (Resolution No. 076588). Edenred was awarded this contract through a competitive, publicly posted, formal solicitation. Edenred administers the monthly transit subsidy valued at up to $150 per participating employee, however not all employees make use of that full amount. There are approximately 1,200 employees participating in the transit subsidy program. The total contract amount includes both the employee transit subsidy funds and a contract administrative overhead fee of 4% of the total contract value.
On March 22, 2022, this Board authorized Amendment 1 (Resolution No. 078792), increasing program funding by $2,000,000 to an amount not to exceed $4,900,000 and extending the contract term through May 13, 2024. The contract was amended to provide continuity of the existing commuter program services while concerns over the use of public transit during Covid-19 were alleviated and commute patterns started to achieve an equilibrium.
On April 9, 2024, this Board authorized Amendment 2 (Resolution No. 080285), increasing program funding by $1,500,000 to an amount not to exceed $6,400,000 and extending the contract term through May 13, 2025. Now that an equilibrium in commuter patterns has been established, this contract was amended to allow for time to conduct a competitive, publicly posted, formal solicitation to secure a vendor to perform a comprehensive program assessment. The assessment includes a review of post-pandemic commute patterns, the evaluation of all County commute programs including the transit subsidy, changes in the County’s building portfolio, and a review of industry best practices to reduce commuter greenhouse gas emissions. Development of a suite of strategies is anticipated to be completed in Summer 2025 following the existing conditions assessment.
DISCUSSION:
This amendment ensures continuity of commuter benefit services while the Shift program assessment is completed and a competitive solicitation process is conducted for a new program administrator. Should a new vendor be selected, the contract amendment includes time for County and Court payroll system integrations, updated outreach materials, new transit subsidy user platform, and data security and quality assurance/quality control processes. County Procurement staff have reviewed and approved the waiver request for the extension of the Edenred contract term beyond five years.
The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Target |
|
Percent increase in employee participation of the transit subsidy |
20% |
|
Percent of employee payroll deduction files of pre-tax and post-tax amounts delivered on-time |
100% |
EQUITY IMPACT:
This program supports community health by reducing pollution and emissions generated by employee vehicle travel that can have local health impacts.
FISCAL IMPACT:
The term of the amended agreement is from May 13, 2019, through October 30, 2026, with an increase of $2,750,000 for a new not to exceed amount of $9,150,000.
The program is funded through Net County Cost (NCC) and Measure A reimbursement. Measure A is the San Mateo County Transportation Authority half-cent transportation sales tax to improve transit and relieve traffic congestion. Funding of $161,000 in NCC is included in the FY 2024-25 Adopted Budget. Funding of $1,932,000 in NCC is planned for the FY 2025-26 Recommended Budget and $657,000 in NCC is planned for the FY 2026-27 Recommended Budget. There is no new Net County Cost associated with this amendment. Funding in the amount of up to $1,200,000 is reimbursed through Measure A which offsets the NCC.
ATTACHMENTS:
1. Amendment to the Agreement with Edenred Benefits, LLC