Title
Affordable Care Act Reporting Services (Ordinance S-47199)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with UnifyHR, LLC to manage and monitor Affordable Care Act (ACA) compliance for the Human Resources Department. The aggregate value of the contract shall not exceed $270,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
This contract is needed to manage and monitor ACA compliance for the City and comply with ACA reporting requirements. The ACA mandates employers with more than 50 full-time employees to track medical plan coverage for employees meeting the 30-hour-per-week test, report of plan affordability based on employee rate-of-pay, and prepare and issue the "medical W-2" (Form 1095c) to all employees annually. Penalties assessed by the IRS for non-compliance are $2,320 per year per eligible employee or more than $20 million per year for the City. This company has previously provided these services to the City and selecting another company will require months of technical reprogramming and transition. The Human Resources Department will conduct a competitive procurement process in 2021 for these services.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as the result of a Determination Memo citing the time restriction and critical need to comply with ACA requirements.
Contract Term
The initial two-year contract term shall begin on or about Dec. 16, 2020 and end on Dec. 15, 2022. Provisions of the contract include an option to extend the term of the contract for an additional one year which may be exercised by the Human Resources Director or designee.
Financial Impact
The aggregate contract value will not exceed $270,000. Funds are available in the Health Care Benefits Trust Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.