City Council
Report
City Council Meeting: December 9, 2025
Agenda Item: 4.C
1 of 4
To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Award of RFP to and Authorization to Enter Into Professional Services Agreement With Magellan Health Services of California, Inc. - Employer Services for the Administration of an Employee Assistance Program Recommended Action
Staff recommends the City Council.
1. Adopt a finding of no significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.
2. Award RFP to Magellan Health Services of California, Inc. - Employer Services for the administration of an Employee Assistance Program (“EAP”) for the Human Resources Department.
3. Authorize the City Manager to negotiate and execute a professional services agreement with Magellan Health Services of California, Inc. - Employer Services in an amount not to exceed $311,610 (including a 15% contingency) for a total amount of $311,610 over a five-year period, with two one-year renewal options with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica seeks to engage Magellan Health Services of California, Inc. - Employer Services to provide an Employee Assistance Program (EAP). The City offers permanent and as-needed employees and their household members access to confidential counseling, support, and resources for a variety of personal or professional challenges. These might include stress, mental health concerns, family issues, financial or legal problems, wellness resources, and work-life balance. Licensed clinicians are available 24 hours/365 days a year for support. Employees can access counseling providers via in-person, phone, video, live chat, and in-app messaging. Additionally, Magellan Health Services of California, Inc. - Employer Services offers Critical Incident 2 of 4
Response to support employees, managers, and the organization when a traumatic event or major disruption occurs in the workplace. Clinicians are staffed 24 hours/365 days a year to provide initial assessment and recommend an appropriate intervention.
Discussion
The City currently offers an Employee Assistance Program as part of the City’s employee benefit plans. Magellan Health Services of California, Inc. - Employer Services is our current provider, and the current contract terminates December 31, 2025. Alliant, a fee-based insurance brokerage, acts as the City’s agent in assisting with the administration of the City’s benefit plans and negotiating associated rates for the City. Alliant is also responsible for conducting an annual analysis of the premium costs and going out to bid when appropriate. As in previous years, the City asked Alliant to administer a Request for Proposals (RFP) process in response to City procurement requirements. Alliant prepared the bid specifications and conducted the procurement on the City’s behalf.
Provider Selection
Bidder Recommendation
Best Qualified
Person/Firm
Magellan Health Services of California, Inc. - Employer Services
Evaluation Criteria
(include all that apply)
Competence/skill, capacity/ability to perform services
promptly, sufficiency of financial/other resources, ability to provide future services as needed, and price.
Municipal Code SMMC 2.24.190
RFPs Received (do not list cost/prices; add rows as needed for additional vendors) Magellan Health PRISM Anthem Prism Concern Claremont by Uprise Health
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Empathia
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
07/02/2025
Broker
outreach
Benefit broker-initiated
solicitation to established
vendors.
5 07/02/2025
Justification to Award
Staff interviewed 5 shortlisted firms. Based on this criteria and criteria in SMMC
2.24.190, staff recommends Magellan Health Services of California, Inc. - Employer Services as the best qualified firm to provide administration of the City’s Employee Assistance Program based on demonstrated ability to quickly supply supportive critical incident counseling responses upon City’s request, expansive provider network, and the ability to provide services in different formats to meet employee needs. Additionally, Magellan Health Services of California, Inc. - Employer Services’ rate is guaranteed for the first five years.
Environmental Review
The agreement for ongoing benefit services is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The agreement would provide administrative services to the City and would not result in physical effects. Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
4 of 4
1/14/2020 Approval of Agreement with Magellan Health Services for Administration of Employee Assistance Program
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with Magellan Health Services of California, Inc. - Employer Services for the administration of an Employee Assistance Program. The cost is allocated to each department and fund based on headcount.
Contract Request
FY 2025-26
Amount
Future Years’
Amount Department Account #
Total
Contract
Amount
$62,322 $249,288 01800004.515005 $311,610
Future year funding is contingent on Council budget approval.
Prepared By: Jennifer Garcia, Benefits Administrator
Approved Forwarded to Council
Attachments:
A. Levine Act Disclosure Form 2025_3-27-25.executed 120225 B. OAKS INITIATIVE FORM.executed 120225