Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Carolyn Bloede, Director, Office of Sustainability
Subject: Contract Amendment to the Agreement with Edenred Commuter Benefit Solutions, LLC, Inc. to Provide Commute Alternative Benefit Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Edenred Commuter Benefit Solutions, LLC to provide commute alternative benefit services, extending the term through May 13, 2024, and increasing the amount by $2,000,000 to an amount not to exceed $4,900,000.
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BACKGROUND:
The San Mateo County Commute Alternatives Program, currently known as Shift, was established in December 1991 to comply with the Bay Area Air Quality Management District’s Regulation 13, Rule 1. Rule 1 required all companies in the Bay Area that employ 100 or more workers to implement measures to reduce the number of employees who commute in single occupant vehicles. To initially implement the program in 1992, the Board approved a transit subsidy of $20 per month to encourage employees to use public transit or other means besides single occupancy vehicles when traveling to and from work.
In November 2004, the voters of San Mateo County passed Measure A, a half-cent sales tax to fund transportation-related projects throughout the County for 25 years. Currently, Shift can receive up to $1.2 million annually from Measure A in addition to funding from the General Fund to finance the program.
Since implementation for the program, the subsidy has been increased to $150 a month for public transit and vanpool services, while employees who carpool, walk, or bike to work are eligible to receive up to $40 a month. Over time, additional services were added to the program including Emergency Rides Home, vanpool and carpool-only parking facilities, and bike lockers. As a result, Shift experienced an increase in participation to 1,200 employees per month prior to the pandemic. During the pandemic, participation rates dropped as anticipated since some County employees transitioned to working from home. As employees transition back into the office as Covid-19 permits, Shift marketing efforts expanded, and participation rates increased to an average of 800 County employees participating per month.
DISCUSSION:
In May 2019, this Board approved an agreement with Edenred Commuter Benefit Solutions LLC to provide commute alternative benefit services that include an online and app-based ordering platform, customer service center and live web chat function, a fixed monthly administrative cost per employee, and the carpool and vanpool RideMatch program. Prior to the Covid-19 pandemic, these services have been instrumental to the deployment of commuter benefit services, however they have been underutilized while employees worked from home. Program participation is expected to increase once staff return to on-site work. Extending this contract allows the County continued access to commuter benefit services as originally designed.
The term of the existing contract is for three years and contains language to provide an option to extend the contract for two additional one-year terms.
County Counsel has reviewed and approved the agreement and resolution as to form.
FISCAL IMPACT:
This amendment extends the term of the agreement for two additional years to May 13, 2024 and increases the contract amount by $2,000,000 for a new not to exceed total of $4,900,000. The Shift program is funded with both Measure A and existing County General Funds. The $2,000,000 will be budgeted at $1,000,000 per year in the upcoming Recommended Level Budgets for FY 2022-2023 and FY 2023-2024. There is no new Net County Cost associated with this agreement.