HomeMy WebLinkAboutItem 17 - Approve Changes to 2024 Employee Benefits Human Resources Department
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Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 1, 2023
TOPIC: Approve Changes to 2024 Employee Benefits
TITLE
Authorize the City to retain life, accidental death & dismemberment (AD&D), and long-
term disability (LTD) insurance with The Standard Insurance Company, and approve
Agreement with REACH Employee Assistance, Inc. for employee assistance program
services effective January 1, 2024 through December 31, 2026.
RECOMMENDED ACTION
(1) Authorize the City to retain life, AD&D, and LTD disability group and voluntary life
and AD&D insurances through The Standard Insurance Company, subject to
annual competitive rate evaluation seeking the best service for the best price and
non-substantive changes approved by the City Manager and City Attorney.
(2) Authorize the City Manager to execute an Agreement with REACH Employee
Assistance, Inc. (“REACH”) to continue employee assistance program (“EAP”)
services effective January 1, 2024 through December 31, 2026, subject to annual
competitive rate evaluation seeking the best service for the best price and non-
substantive changes approved by the City Manager and City Attorney.
DISCUSSION
Along with competitive salaries, the City enhances employees’ total compensation
package with City-sponsored and voluntary benefit programs. Each year staff initiates
an evaluation of the City’s existing benefit plans in order to ensure that the City is
receiving the best value as well as discover and evaluate other types of benefits that
may be worth bringing into the City’s benefit package. Keenan, the City’s Benefits
Broker, assisted in a market study to compare services to ensure that rates and
coverages are competitive. City staff evaluated the options along with the employee
demographics and needs and selected a mix of benefits for the next calendar year.
The Standard has offered a proposal to maintain existing coverage obligations with an
estimated 46.72% combined savings compared to the existing agreement, with fee
reductions of 50.98% for group life, 25.00% for group AD&D, and 26.83% for LTD
coverages, with a rate guarantee of three (3) years. The Standard will also provide a
one-time implementation credit of up $15,000 to assist with transition communications
Approve Changes to 2024 Employee Benefits
AUGUST 1, 2023
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and resources. Employee cost will remain the same to maintain existing coverages for
voluntary life and AD&D coverages. The costs of the supplemental insurance benefits
are born entirely by the employees who elect to participate in voluntary plans (as the
City does not contribute monies toward additional voluntary coverage options). The
Standard has an A (Excellent) rating.
Providing an EAP contributes to decreased absenteeism, reduced accidents, fewer
workers compensation claims, greater employee retention, fewer labor disputes, and
significantly reduced medical costs arising from early identification and treatment of
individual mental health and substance use issues. The City has contracted with
REACH to provide EAP services, which include licensed and certified employee
assistance professionals that provide short-term counseling, assessment, and referral
services. The City provides this invaluable service to all full- and part-time employees
and their families as a City-sponsored benefit. REACH has offered a proposal to
maintain existing monthly cost of $1.85 per full-time and $1.25 per part-time employee
with a rate guarantee of three (3) years.
ENVIRONMENTAL IMPACT
The consideration and approval of the proposed action do not constitute a project under
the California Environmental Quality Act.
FISCAL IMPACT
Both vendors have guaranteed these rates for the next three (3) years. The current
fiscal year funding is available in the FY 23-24 budget and future fiscal year funding will
be included in the proposed budgets for City Council consideration.
Fiscal
Year
Accounting
Unit –
Account No
Fund Description Accounting Unit – Account
No. Description Amount
Agreement Term (January 1, 2024 through December 31, 2026) - Group Life Insurance, AD&D and
LTD Coverage
2023-
24
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 105,500.00
2024-
25
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 211,000.00
2025-
26
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 211,000.00
2026-
27
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 105,500.00
TOTAL $ 633,000.00
Approve Changes to 2024 Employee Benefits
AUGUST 1, 2023
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3
6
0
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Fiscal
Year
Accounting
Unit –
Account No
Fund Description Accounting Unit – Account
No. Description Amount
Agreement Term (January 1, 2024 through December 31, 2026) - EAP
2023-
24
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 13,000.00
2024-
25
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 26,000.00
2025-
26
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 26,000.00
2026-
27
08109053-
64010
Employee Group
Insurance
Employee Group Insurance-
Insurance payment $ 13,000.00
TOTAL $ 78,000.00
EXHIBIT(S)
1. Agreement with REACH
Fiscal Impact
Verified By: Kathryn Downs, CPA, Executive Director of Finance and Manager
Services
Submitted By: Jason R. Motsick, Executive Director of Human Resources
Approved By: Kristine Ridge, City Manager
REACH EMPLOYEE ASSISTANCE PROGRAM
SERVICES AGREEMENT
This Employee Assistance Program Services Agreement is made and entered into as of 1st
day of January, 2024, between REACH Employee Assistance, Inc. (hereinafter referred to as
“REACH”), a California corporation, and the City of Santa Ana, a charter city and Municipal
Corporation organized and existing under the Constitution and laws of the State of California
(hereafter referred to as “City”.)
WHEREAS REACH is engaged in the Employee Assistance Program Services business
and desires to service City; and
WHEREAS City desires to obtain the Employee Assistance Program Services of REACH.
IT IS THEREFORE AGREED AS FOLLOWS: This is a contract for service outlining the duties
and responsibilities of REACH Employee Assistance, Inc., to the City of Santa Ana.
1. Scope of Services
REACH will provide Assessment/Counseling/Referral for Employees and Dependents. A
total assessment will be administered for a well-rounded analysis of the client’s problem.
Employees and immediate family members are entitled to up to three (3) sessions per incident every
six (6) months. REACH provides professional assessment/counseling to the point of referring the
client to an outside counseling professional or agency. In addition, REACH provides follow-up
consultation. The number of sessions offered, within this limit, will be at the sole discretion of the
REACH counseling staff.
The City will be assigned a REACH liaison person. REACH provides quality, experienced
counselors knowledgeable in assessment skills to provide personal counseling to employees and
immediate family members. REACH also provides qualified and experienced staff to assist
management on all aspects of Employee Assistance Program. Dr Marcus Dayhoff is
administratively, operationally and clinically responsible for REACH.
2. Confidentiality and Release of Information
As a general rule REACH shall not disclose to the City the identity of City employees or
immediate family members of City employees who elect to participate in the REACH Program
offered under this Agreement. In particular, any report consisting of any of the following
information: 1) diagnosis; 2) summary of treatment of therapeutic procedures 3) disabilities,
limitations of employee (except for whether the employee can perform the essential functions of the
employee’s job with the City); and 4) recommendations on further treatment shall be considered
confidential information not subject to disclosure by REACH unless the City employee has on file
with REACH and any treatment service provider in the REACH Program an irrevocable
authorization(s), RELEASE OF INFORMATION to the City. On receipt of the City's request for
the above information, REACH shall notify in writing, the City employee of the City's request.
Notwithstanding the above, REACH shall release to the City in writing the following information
on employees who have been referred into the REACH Program as a condition of employment with
the City:
A) Whether employee has agreed to participate in the Assistance Program.
B) List of all appointments of employee kept and missed, together with reason, if any, for
missing the appointment.
C) Submission of the employee’s anticipated treatment plan as a participant in the Program.
This plan shall consist of the following:
1) The anticipated number of visits, appointments, or sessions requested of the
employee.
2) The type of therapeutic procedures in general terms that the employee is to
receive during the employee's participation with the REACH Program or the
treatment provider(s).
3) Description of the treatment service provider the employee is referred to by
REACH.
4) Any other information not contained in the employee's treatment service
provider medical record deemed appropriate by the City to evaluate the employee's
participation in the Assistance Program.
D) Any conclusion or opinion of REACH or employee's treatment service provider that the
employee is limited or restricted in his/her ability to perform the employee's job duties, such
limitation may be, but not necessary, limited to physical, psychological, or medical reasons.
E) Any conclusion or opinion of REACH or employee's treatment service provider that
employee's participation may necessitate employee's absence from the City.
F) That employee has failed, refused, or otherwise has discontinued to proceed with the
REACH Program or any treatment service provider.
NOTE: The City agrees that in cases where an employee agrees to be referred by management to
REACH, the Supervisor will seek written permission from the employee to inform REACH of the
circumstances leading up to the referral.
The City agrees to in no way insist or demand confidential information from the REACH program
on specific individuals who do not want their information released to the City.
Service Providers: Exceptions will also be made in cases when the employee and/or immediate
family members sign a written release authorizing the release of information by REACH to one or
more agreed upon service providers.
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3. Definitions
a. “Client” shall mean an employee or his/her immediate family member participating
in the REACH EAP program.
b. “Treatment Service Providers” or “Service Providers” shall mean an outside
counseling professional or agency, referred by REACH, whose services will be paid by the
client.
4. Counseling Hours
REACH provides counseling hours from 8:00 a.m. to 8:00 p.m. Monday through Thursday,
Friday 8:00 to 5:00 p.m. and will respond appropriately and effectively to employee needs.
Every attempt will be made to see management referrals and employees in crisis as early as possible
to the time of call and no later than 24 hours (during business hours) of the call being made. All
other clients will be seen within 48 hours of the call being made.
The City agrees to provide REACH with names and telephone numbers of liaison individual(s) at
the City who can be contacted in cases of emergencies and keep REACH appraised of changes in
contacts and telephone numbers.
5. 24-Hour Availability, 7 days a week
REACH provides confidential intake and psycho-social assessment and counseling to the
point of referral to employees and their immediate family members with a 24 hour telephone
service. REACH assures that no calls go unanswered and that all crisis callers receive courteous
and prompt service. During non-business hours, all calls answered by the REACH answering
service will be connected to the on-call counselor. The REACHline number is 1-800-273-5273.
6. Location
Employees and family members will have a choice of counseling either at one of our several
conveniently located offices or at one of our service provider's office.
7. Referral Network
When necessary, REACH will refer employees and dependents to appropriate, cost
effective, geographically convenient and high quality services provided by individuals and agencies
which have been screened by our staff.
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8. Monitoring/Follow-up
REACH will monitor and follow-up as long as appropriate all people referred by the
REACH program to outside individuals and community resources to assure the problem is resolved
and that the person is satisfied with the quality of referrals. In cases of management referrals,
REACH will also follow-up regularly with the City on status of job performance.
9. Service Utilization Reports
REACH will provide quarterly confidential reports on service utilization, aggregate client
profiles, assessed problems and outcome at case closure. Customer satisfaction reports will be
available upon request by the City.
10. Benefits
The City agrees to provide REACH with copies of all the City employee benefit plans and
appraise REACH of all changes as they occur.
11. Avoiding Conflict of Interest
REACH agrees to avoid conflict of interest by providing up to three (3) referrals to clients
based on competency, geography and the most cost effective modality to deal with the client's
problem(s). No referrals will be made to the private practices of REACH counseling staff members
or to any private practitioner and/or agency with whom a REACH counselor has an economic
relationship. Only the City can make exceptions to this rule.
12. Alcoholism and Chemical Dependency Intervention Services
REACH provides job related alcoholism and chemical dependency intervention services as
required.
13. Policy and Procedure
The City agrees to consider implementing a policy and procedure statement on employee
assistance when appropriate. REACH will provide technical assistance to the City staff in writing a
policy and procedure statement on employee assistance.
14. Training
REACH will provide Management and Supervisory training sessions annually. It is
recommended that no more than 25 managers/supervisors attend each session. The purpose of these
training sessions is to make managers and supervisors aware of City employee assistance program
policy and procedures, of how to identify poor job performance as it relates to personal problems
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and to familiarize them with the processes of referrals and follow-up. The effectiveness of each
training session will be evaluated.
15. Management Guidelines
REACH supplies on request Management and Supervisor Employee Assistance Program
guidelines for inclusion in City personnel management guidelines.
16. Manager/Supervisor Consultation and Assistance
REACH will assist managers and supervisors calling REACHline for consultation on how
to deal with specific employee incidents or problems, which may require EAP intervention. The
City agrees to encourage managers and supervisors to take advantage of this consultation service.
17. Program Promotion
The City agrees to support REACH in developing a yearly EAP program promotion plan.
a. EAP orientation classes for employees in groups of up to 50 will be available to
the City as a means of introducing City EAP policy and procedures and utilization of
REACH services.
b. "Munch & Learn" presentations will be conducted periodically upon request by
the City, at City locations to maximize utilization of REACH services.
c. REACH brochure & REACHline cards will be supplied to the City for
distribution to all employees.
d. REACH Frontline will be electronically supplied to the City quarterly for
distribution to all supervisors.
e. REACHline.com will be available for online use to all employees and family
members. Employees will be supplied a password as mentioned on REACH employee
brochure for online secure area access.
f. REACHline Posters will be supplied from time to time to the City for posting on
official staff bulletin boards.
g. Originals of promotional materials for inclusion as short articles in internal staff
newsletter or as check stuffers will be supplied upon request by the City.
h. REACH staff will participate at the City's employee benefit fair upon request.
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i. REACH will assist with drafting of any EAP related materials to announce REACH
services to employees.
18. Quality
REACH conducts on-going quality assurance audits on all aspects of the program from
inception to end of the contract year. REACH will supply the City with quarterly reports.
19. City’s Understanding
a. Top management support and commitment is essential to the success of the REACH
Employee Assistance Program at the City of Santa Ana.
b. REACH is a totally confidential program. The City will only be aware of
employees referred officially by management and information about that employee will not be
released without written consent of the employee.
c. REACH will not, in all cases, be able to resolve the employee's or dependent's
problem(s) in the set number of counseling sessions. In such cases the employee or family member
will be referred to quality, cost effective resources available within the community.
d. Employees and dependents will not be charged for the services provided by
REACH. If referrals are necessary, those referrals may result in additional cost to the City's benefit
plan and may result in added costs to the employee or family member.
e. The REACH program is made available to all full- and part-time employees and
their dependents. The REACH benefit starts on the first day of employment.
f. It is anticipated that the yearly employee utilization rate will be a minimum of 6-8%.
The REACH promotional program will aim at achieving at least this utilization rate.
III. TERMS AND CONDITIONS
1. The Agreement period will be from January 1, 2024 to December 31, 2026.
2. The total cost to the City for the services to be provided to the City and its employees by
REACH under this Agreement shall be $1.85 per full time employee per month, and
$1.25 per part time employee per month. While the number of persons employed by the
City may fluctuate from time to time during the term of this Agreement, the City agrees the
amount of compensation payable to REACH during the term of the Agreement shall be
based on the number of persons employed by the City at the beginning of the month
invoiced for.
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3. The City will be invoiced on the first of each month for that month's installment. Checks
will be made payable to REACH Employee Assistance, Inc. and mailed to 650 N. Rose
Drive, #350, Placentia, CA 92870 - Attn.: Accounts Receivable.
4. The City will make payment within 30 days from the date of the receipt of the invoice from
REACH Employee Assistance, Inc.
5. REACH Employee Assistance, Inc. agrees to indemnify, defend, and hold harmless the
City, its officers, employees, agents and representatives, from any and all claims, demands,
purported liability, or consequential damages of any kind or nature arising out of or in
connection with REACH's acts or omissions in carrying out the terms of this Agreement or
exercising the rights herein granted; excepting those claims, demands, purported liability, or
consequential damages which arise out of the sole negligence of City.
6. REACH agrees to maintain during the course of this Agreement the following insurance
coverage:
a. Comprehensive general liability insurance coverage, including personal injury and
contractual liability coverage, in an amount equal to One Million Dollars
($1,000,000.00) per occurrence, combined single limit;
b. Worker's Compensation insurance as required by State of California statutes;
c. Professional liability insurance with a One Million Dollar ($1,000,000.00) limit, per
occurrence. REACH agrees to keep such policy in force and effect for at least five
(5) years from the date of completion of this Agreement.
Also, the City of Santa Ana, its officers, agents and employees will be named as additional
insured on the above referred comprehensive general liability coverage and REACH will provide an
endorsement to that effect. Such insurance shall (a) name the City, its officers, employees, agents,
volunteers and representatives as additional insured(s); (b) be primary and not contributory with
respect to insurance or self-insurance programs maintained by the City; and (c) contain standard
separation of insured’s provisions. Such insurance will be evidenced by certificate and issued by
companies licensed to do business in California and acceptable to the City. Before REACH
performs any work, it will furnish certificates of insurance and endorsements, as required by City,
evidencing the aforementioned general liability, and professional liability insurance coverages on
forms acceptable to the City which shall provide that the insurance in force not be canceled or
modified without 30 days prior written notice to the City.
In the absence of satisfactory insurance coverage, City may, at its option: (a) procure
insurance with collection rights for premiums, attorney’s fees and costs against REACH by way
of set-off or recoupment from the sums due REACH, at City’s option; (b) immediately terminate
this Agreement; or (c) self insure the risk, with all damages and costs incurred, by judgment,
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settlement or otherwise, including attorney’s fees and costs, being collectible from REACH, by
way of set-off or recoupment from any sums due REACH.
7. No Assignment
REACH shall not assign or transfer this Agreement or any rights hereunder without the
prior written consent of the City and approval by the City’s City Attorney, which may be withheld
in the City’s sole discretion. Any unauthorized assigned or transfer shall be null and void and shall
constitute a material breach by REACH of its obligations under this Agreement. No assignment
shall release the original parties or otherwise constitute a notation.
8. Compliance With All Laws
REACH shall comply with all Federal, State, County and City laws, ordinances, rules and
regulations, which are, as amended from time to time, incorporated herein and applicable to the
performance hereof.
9. Attorney’s Fees
If any action at law or in equity is brought to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary
disbursements in addition to the relief to which such party may be entitled.
10. Interpretation
a. Applicable Law and Choice of Forum. This Agreement, and the rights and duties
of the parties hereunder (both procedural and substantive), shall be governed by and construed
according to the laws of the State of California, with venue regarding any claims or controversial
arising out of or related to performance under this Agreement in Orange County.
b. Entire Agreement. This Agreement, including any exhibits attached hereto,
constitutes the entire agreement and understanding between the parties regarding its subject matter
and supersedes all prior or contemporaneous negotiations, representations, understandings,
correspondence, documentation and agreements (written or oral). To the extent there is any conflict
or inconsistency between the terms and provisions of this Agreement and the exhibits attached
hereto, the terms and provisions of this Agreement shall govern the rights and obligations the
parties hereto.
c. Written Amendment. This Agreement may only be changed by written amendment
signed by REACH and the City Manager of the City or other authorized representative of the City,
subject to any requisite authorization by the City Council. Any oral representations or
modifications concerning this Agreement shall be of no force or effect.
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d. Severability. If any provisions of this Agreement is held by any court of competent
jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed
from this Agreement, and the remaining provisions shall nevertheless continue in full force and
effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this
Agreement.
e. Order of Precedence. In case of conflict between the terms of this Agreement and
the terms contained in any document attached as an exhibit or otherwise incorporated by reference,
the terms of this Agreement shall strictly prevail.
11. Time is of The Essence
Time is strictly of the essence of this Agreement and each and every covenant, term and
provision hereof.
12. Authority of REACH
REACH hereby represents and warrants to the City that REACH has the right, power, legal
capacity and authority to enter into and perform its obligations under this Agreement, and its
execution of this Agreement has been duly authorized.
13. Notices
Any notice or demand to be given by one party to the other shall be given in writing and
by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice
simply to the City of Santa Ana or any other City department is not adequate notice.
To City: City Clerk
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax 714- 647-6956
Copies to: Executive Director of Human Resources
City of Santa Ana
20 Civic Center Plaza (M-24)
P.O. Box 1988
Santa Ana, California 92702
Fax 714- 647-6930
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City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Fax 714- 647-6515
If to REACH: REACH Employee Assistance, Inc.
101 East Lincoln Avenue, Suite 230
Anaheim, CA 92805
Attn.: Dr. Marcus Dayhoff
Fax: 714-533-5700
Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if
mailed, upon receipt or upon expiration of three (3) business days from the date of posting,
whichever is earlier. Either party may change the address at which it desires to receive notice upon
giving written notice of such request to the other party.
14. Termination Without Cause
The City or REACH may terminate this Agreement in whole or in part at any time, for any
cause or without cause, upon sixty (60) calendar days’ written notice to the other. If the Agreement
is thus terminated by the City for reasons other than REACH’s failure to perform its obligations,
the City shall pay REACH a prorated amount based on the services satisfactorily completed and
accepted prior to the effective date of termination. Such payment shall be REACH’s exclusive
remedy for termination without cause.
15. Default
In the event either party materially defaults in its obligations hereunder, the other party
may declare a default and terminate this Agreement by written notice to the defaulting party. The
notice shall specify the basis for the effective date of termination stated in such notice, which date
shall be no sooner than ten (10) days after the date of the notice.
Termination for cause shall relieve the terminating party of further liability or responsibility
under this Agreement, including the payment of money, except for payment of services
satisfactorily and timely performed prior to the service of the notice of termination, and except for
reimbursement of (1) any payments made by the City for service not subsequently performed in a
timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute
performance.
16. Equal Employment Opportunity
During the performance of this Agreement, REACH agrees as follows:
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a. REACH shall not discriminate against any employee or applicant for employment because
of race, color, religion, sex, sexual orientation, gender identity, national origin or mental or
physical disability, or any other protected category prohibited by state or federal law.
REACH will ensure that applicants are employed and that employees are treated during
employment, without regard to race, color, religion, sex, national origin or mental or
physical disability. Such actions shall include, but not limited to the following:
employment, upgrading, demotion or transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms of compensation and selection training,
including apprenticeship. REACH agrees to post in conspicuous places, available to all
employees and applicants for employment, a notice setting forth provisions of this non-
discrimination clause.
b. REACH shall, in all solicitations and advertisements for employees placed by, or on behalf
of REACH, state that all qualified applicants will receive consideration for employment
without regard to race, age, color, religion, sex, national origin, or mental or physical
disability.
c. REACH shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts
for any work covered by this Agreement, provided that the foregoing provisions shall not
apply to subcontracts for standard commercial supplies or raw materials.
19. Conflict of Interest
REACH hereby represents, warrants and certifies that no member, officer or employee of
REACH is a director, officer or employee of the City, or a member of any of its boards,
commissions or committees, except to the extent permitted by law.
(Signatures on Following Page)
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST: CITY OF SANTA ANA
JENNIFER HALL KRISTINE RIDGE
City Clerk City Manager
APPROVED AS TO FORM: REACH Employee Assistance, Inc.
SONIA R. CARVALHO
City Attorney
By: By:
Laura A. Rossini Marcus Dayhoff
Chief Assistant City Attorney CEO & Clinical Director
RECOMMENDED FOR APPROVAL:
Jason Motsick
JASON MOTSICK
Executive Director
Human Resources
Signature:
Email:
jmotsick@santa-ana.org