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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 7, 2020 <br />TITLE: <br />APPROVE AMENDMENT TO BASIC <br />AGREEMENT WITH RESPECT TO NAME <br />CHANGE, ASSIGNABILITY, AND <br />NATIONAL AUTOMATED CLEARING <br />HOUSE ASSOCIATION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />/s/ Kristine Ridge FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an amendment to the BASIC agreement, subject to non - <br />substantive changes approved by the City Manager and City Attorney, with respect to name <br />change, assignability, and National Automated Clearing House Association requirements. <br />DISCUSSION <br />On September 18, 2018, the City Council authorized the City Manager to execute an agreement <br />with BASIC for Family and Medical Leave Act (FMLA) administration for a three-year term, effective <br />September 1, 2018 and terminating on August 30, 2021. <br />The proposed amendment would make three substantive changes to the original agreement <br />(Exhibit 1). All other terms and conditions remain the same. <br />1. Amend with respect to name change: provider has changed their name from "BASIC' to <br />"BASIC Services" and has undergone corporate restructuring from S Corp to LLC. <br />2. Amend with respect to assignability: BASIC Benefits may assign its rights and obligations <br />under this agreement without the approval of the City <br />a. to an entity which acquires all or substantially all of the assets of BASIC Benefits, <br />b. or to any subsidiary of affiliate or successor in a merger, acquisition, restructuring, or <br />reorganization of BASIC Benefits. <br />3. Include National Automated Clearing House Association (NACHA) requirements. NACHA <br />is responsible for developing and enforcing Automated Clearing House (ACH) (also known <br />as electronic payments) rules and guidelines. BASIC Services has added this standard <br />language for the other services they provide, such as Flexible Spending Account <br />management. The City of Santa Ana currently does not obtain these services from Basic <br />Services. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Submitted by: Steven V. Pham, Executive Director— Human Resources Department <br />Exhibit: 1. First Amendment to BASIC Agre25 _1 <br />