Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Jasneet W. Sharma, Director, Sustainability Department
Subject: Fourth Amendment to the Agreement with Edenred Benefits, LLC to Provide Employee Commuter Benefits Program Services
RECOMMENDATION:
title
Adopt a resolution:
A) Authorizing a fourth amendment to the agreement with Edenred Benefits LLC to provide employee commuter benefits program services, extending the term through December 31, 2027, and increasing the amount by $1,738,371 to an amount not to exceed $10,888,371; and
B) Authorizing the Director of the Sustainability Department, or designee(s), to execute the agreement and any amendments.
body
BACKGROUND:
On July 27, 1993, this Board established a monthly transit benefit 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 employers with fifty or more full-time employees to offer commuter benefits to their staff to reduce drive-alone commutes and promote alternative travel modes.
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 replaced a prior vendor following an open and competitive solicitation. Edenred services included distribution of the monthly transit benefit valued at $150 per employee for mass transit (bus, train, and ferry) or micromobility rentals (bike or scooter). The value of the benefit to be distributed to County employees is included in the contract amount and constitutes the majority of the contract cost. Administrative overhead constituted only 4% of the 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. This contract amendment allowed County employees continuity of commuter benefit services as originally designed while program participation rebounded due to the lifting of COVID-19 shelter-in-place orders.
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.
On April 8, 2025, this Board authorized Amendment 3 (Resolution No. 081023), increasing program funding by $2,750,000 to an amount not to exceed $9,150,000 and extending the contract term through October 30, 2026. These amendments were approved to maintain continuity of commuter benefit services during a comprehensive reassessment of the program, accommodate growth in program participation, and avoid disruption while the County evaluated future program options.
Since 2020, program participation has grown by approximately 105 percent, from 891 to 1,824 participants, corresponding to an estimated increase from roughly 205,000 to over 420,000 drive-alone trips avoided annually.
DISCUSSION:
On January 26, 2021, this Board adopted the Government Operations Climate Action Plan (GOCAP) (Resolution No. 077960). This formalized the County’s commitment to reduce employee commute-related greenhouse gas emissions, which are primarily generated by drive-alone travel, by 95 percent by 2035. Offering an effective and comprehensive employee commuter benefits program positions the County to successfully fulfill the Board’s commitment to its climate action goals.
COVID-19 significantly changed employee commuting patterns, prompting the County to reevaluate its commuter benefits program to better align with post-pandemic travel behavior, GOCAP goals, and new County facility locations.
To support the program redesign effort, the County competitively procured a consultant on October 1, 2024, to conduct a comprehensive assessment of its employee commute programs and develop recommendations for a future program structure. This contract amendment provides the additional funding necessary to maintain uninterrupted commuter benefit services to County employees through December 2027, as the County begins implementing recommendations from the program reassessment. These will include participation in a regional pilot program which provides unlimited access to Bay Area transit services that accept Clipper and the transition to a new commuter benefits administrator.
In accordance with County procurement policy, the Procurement Director or designee has approved an exception to the five-year maximum contract term. The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
PERFORMANCE MEASURE:
|
Measure |
FY 2026-27 Target |
|
Percent of employee payroll deduction files of pre-tax and post-tax amounts delivered on-time (by the 12th of the month). |
100% |
COMMUNITY IMPACT:
This program supports community health by reducing air pollution and tailpipe emissions generated by employee vehicle travel. Removing internal-combustion engine vehicles, which produce higher levels of emissions and pollutants, can help reduce local rates of asthma, cardiovascular diseases, and other acute health and quality of life impacts. The program also supports employee health and quality of life by reducing driving-related stress and encouraging physical activity through active commute options.
FISCAL IMPACT:
This amendment extends the term of the agreement to December 31, 2027, and increases the contract amount by $1,738,371 for a new not to exceed amount of $10,888,371 over an eight-year contract term.
The program is funded through Measure A reimbursement and Net County Cost. Measure A is the San Mateo County Transportation Authority half-cent transportation sales tax to improve transit and relieve traffic congestion. Funding in the amount of $1,200,000 is reimbursed annually through Measure A with an additional $931,628 in one-time funding to be reimbursed from Measure A in FY 2026-27. Funding of $1,150,000 is included in the FY 2026-27 Recommended Budget which fully funds the FY 2026-27 portion of the agreement. There is no new Net County Cost associated with this amendment.