Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve an Adjustment to Contract #20250029 with Work & Well to Due to Higher-Than-Anticipated Utilization of Third-Party Administration of FMLA services.
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Submitted By: Oksana Savchenko, Procurement Analyst, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Oksana Savchenko, Procurement Analyst, PMD.
2. Parties: City of Port St. Lucie and Jocks OP LLC d/b/a Work & Well (“Work & Well”).
3. Purpose: To continue the City’s agreement with Work & Well for Third-Party Administration of FMLA services and adjust the approved expenditures to reflect actual utilization.
4. New/Renewal/Modified: Modified.
5. Duration: The initial term is for three (3) years, beginning on November 14, 2024, and ending November 13, 2027, with additional automatic yearly renewals.
6. Benefits to Port St. Lucie: Work & Well has provided timely case management, compliance support, and administrative oversight that assists the City in effectively managing FMLA requirements. Continued use of the vendor will provide continuity of service, support compliance with applicable federal regulations, and ensure the City can efficiently manage the increased volume of FMLA activity.
7. Cost to Port St. Lucie (Annual and Potential): The original estimated expenditure under the three-year contract was under $100,000 over the entire term, which was within the City Manager's purchasing authority and therefore did not require Council approval at the time. Since the contract's inception, actual utilization has averaged approximately $44,000 annually, resulting in projected expenditures over the three-year term that exceed the City Manager's purchasing authority of $100,000 and therefore require Council approval. The projected annual utilization is estimated in the range of $45,000 to $50,000. Annual expenditures may fluctuate beyond this range, and staff requests Council approve future expenditures as adopted in the budget for each fiscal year.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve, per City Code Ordinances, Section 35.09(a), the increase in expenditures under Contract #20250029.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the increase in expenditures under Contract #20250029.
2. Move that the Council not approve the increase in expenditures under Contract #20250029 and provide staff with direction.
Background: The original procurement method was competitive solicitation conducted by the City’s broker, Gehring Group, on the City’s behalf. The process included both an evaluation of vendor services and capabilities (RFP component) and a comparison of pricing and rates (RFQ component) to determine the vendor offering the best overall value.
The original estimated annual spend was projected to remain below the procurement threshold of $100,000, in accordance with Section III, General Guidelines of the Procurement Policy and Procedure Manual. The anticipated spend fell within the City Manager’s, and under City Council’s, approval limits; therefore, the contract was not taken to Council at the time.
The agreement was structured around an estimated annual case volume, with overage charges applied once utilization exceeded 72 cases. Since implementation, actual utilization has consistently surpassed projections, averaging approximately four additional cases per month. This increase is driven by workforce growth since the contract’s inception and increased leave utilization, including parental leave and dependent-care-related FMLA requests.
The increased spend is due solely to higher utilization under the existing Contract terms; there have been no vendor price increases. The requested expenditure adjustment will also provide capacity and flexibility to support continued higher utilization in future fiscal years.
City Code of Ordinances, Section 35.09(a), states: “If an existing contract that was below the City Manager's approval threshold and approved under the City Manager's authority is increased and such increase raises the contract price to above the City's Manager's approval threshold, such increase must be authorized by City Council.” Because the proposed increase exceeds the City Manager’s thresholds outlined in Section 35.09(a), it requires City Council approval.
Issues/Analysis: Staff respectfully requests Council approval to increase the estimated expenditure under this Contract with all spending subject to budget appropriations.
Financial Information: Funds are appropriated in the General Fund Administrative Services FY 2025-2026 budget for account #001-1310-531000.
Special Consideration: N/A.
Location of Project: N/A.
Attachments:
1. Contract #20250029 with Work & Well.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26219-10.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.