From
Bryce Davis, Purchasing Manager
Title
Ratify and approve the previous renewals to the city's Wellness Program Agreement with NS412, LLC DBA Naturally Slim in the cumulative amount of $132,685; authorize the addition of four one-year renewal options in the estimated cumulative amount of $66,340.00; and authorize the City Manager to execute those additional renewals with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal term(s)
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
On February 1, 2012 the City entered into an annual price agreement for employee participation in a wellness program at $385 per participant. It was estimated the agreement total would come out to about $11,550.00 annually factoring a guess of 30 participants. Being under $50,000 within the contract term and administered by the Department, it was not thought to require City Council approval.
Since this time the contract has been budgeted for annually and renewed seven times and its yearly expenditure is evident of the wellness program gaining in popularity and expanding in certain years exceeding the original estimate, but always remaining below $50,000 annually.
In 2018, the Purchasing Division assumed contract administration duties for this contract, and it was not realized until December 2019 that approval for the contract’s cumulative total surpassing $50,000 was never sought.
This requested Council action is to ratify the previous year’s renewals in the cumulative amount of $132,658, add four additional one-year renewal periods, and authorize the City Manager to execute Renewal No. 8 in the estimated annual amount of $16,585 (based on averaging the previous year’s expenditures) and future renewals in the cumulative amount of $66,340.
Contract Term Annual expenditure...
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