201 S. Anaheim Blvd.
Suite #501
Anaheim, CA 92805
Tel: (714) 765-5111
Fax: (714) 765-5215
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: MAY 5, 2026
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH THE
VITALITY GROUP, LLC FOR WELLNESS PROGRAM
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve an agreement between the City of Anaheim, and The Vitality Group, LLC (Vitality), in the estimated annual amount of $124,105 with additional administrative fees, for an employee wellness program, for a three year term, with two one-year renewal options, and authorize the Human Resources Director, or designee, to execute renewal options, and any other related actions and documents necessary to implement and administer the Agreement.
DISCUSSION:
The City of Anaheim is committed to providing comprehensive and competitive health and wellness benefits to support a healthy workforce, promote employee retention, and reduce escalating healthcare costs for employees and the City. As part of this commitment, the City launched a wellness program in 2016 through Vitality, affording employees access to a web-based platform that provides tools, resources, and incentives to support healthy lifestyle improvements.
Since implementation, the Vitality program has demonstrated strong employee engagement and satisfaction. Participation in wellness activities, health screenings, and educational resources has steadily increased, supporting employees in taking a more proactive approach to their health and well-being, having a direct impact on reducing health insurance premium costs. Notably, within two months of launching Vitality’s enhanced platform in January 2026, the employee onboarding exceeded participation levels recorded in 2016, demonstrating the City’s wellness program continues to be valuable to our employees.
At the request of Human Resources and the Anaheim Health Council, Mercer, the City’s health benefits broker, conducted a request for proposal (RFP) to evaluate vendors offering comparable wellness platforms. This effort was to ensure the City continues to provide engaging resources with improved technology, and relevant and equitable content to our employee population with valued rewards to encourage ongoing participation.
Professional Services Agreement for Wellness Program
May 5, 2026
The City evaluated a total of five (5) vendors including the provider, Vitality. Key factors that were focused on were: engagement and incentive strategies, platform accessibility and user experience, health assessment tools, lifestyle and mental health resources, client support services, and overall cost.
Following a comprehensive market survey, vendor proposal review, and interviews, Vitality was selected. Vitality offers a robust platform, featuring extensive educational resources and meaningful incentives, at an overall cost that is 35% lower than the current rate.
Renewal of the Vitality contract supports the City’s ongoing commitment to employee health by continuing a well-established and highly utilized wellness program that supports employee’s total well-being while helping manage increasing healthcare costs. The program remains fully funded through an external wellness stipend provided by Blue Shield, resulting in no impact to the City’s budget.
IMPACT ON BUDGET:
There is no impact to the General Fund. The wellness program is funded by the City’s health insurance partner, Blue Shield, through a wellness stipend.
Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachment:
1. 2026 Vitality Contract