Item 6-E

Council Meeting: 12/9/97                     Santa Monica, CA

TO:       Mayor and City Council

FROM:     City Staff

          SUBJECT:  Recommendation to Authorize City Manager to Execute an
          Agreement  with Fitness Appraisal, Inc. to Provide
          Fitness Evaluations for Employee Wellness Benefit
          Program

INTRODUCTION
This report recommends that the City Council authorize the City
Manager to execute an agreement with Fitness Appraisal, Inc. to
provide employees with fitness evaluations as part of the City's
employee wellness program in an amount not to exceed $35,000 for
Fiscal Year 1997-98. 

BACKGROUND
For approximately 9 years, the City has used Fitness Appraisal,
Inc. to conduct fitness and nutrition evaluations for full-time
permanent employees.  Fitness Appraisal, Inc. has conducted the
confidential on-site evaluations twice a year for interested
employees.  Several other companies have offered to provide
wellness evaluations for the City, but were not able to compete
in price or range of services with those offered by Fitness
Appraisal, Inc.  Furthermore, because of the long standing
relationship with Fitness Appraisal, Inc., City employees have
enjoyed a continuity in their fitness evaluation results and
recommendations.  A full proposal process is planned for the
spring of 1998.  Until then, the City needs to continue to
receive this source from Fitness Appraisal, Inc.


BUDGET/FINANCIAL IMPACT
Funds are included in the FY97-98 budget to cover the cost of the
employee wellness program. (Funds are included in account number
01-700-274-00000-1197-00000 established for employee fringe
benefits.)

RECOMMENDATION
It is recommended that the City Council authorize the City
Manager to execute an agreement with Fitness Appraisal, Inc. with
regard to employee fitness evaluations and related services in an
amount not to exceed $35,000 for FY97-98.