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Human Resources Department <br />www.santa-ana.org/human-resources <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />November 19, 2024 <br />TOPIC: Affordable Care Act Compliance Services <br />AGENDA TITLE <br />Agreement with Sterling Health Services, Inc. for Affordable Care Act Compliance <br />Services in an Amount Not to Exceed $50,000 (Non-General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Sterling Health Services, Inc. <br />to provide Affordable Care Act compliance services for three years, effective November <br />19, 2024 through October 31, 2027, with provisions for two optional one-year <br />extensions, not to exceed $10,000 per year (Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The City maintains continued need for ongoing compliance with the Federal Patient <br />Protection and Affordable Care Act (ACA). This agreement will provide the Human <br />Resources Department with the necessary resources to efficiently meet the annual <br />reporting requirement. <br />The ACA compliance service includes evaluating the City’s employee population for <br />determining eligibility for mandated minimum essential coverage, electronically filing of <br />Forms 1094-C and 1095-C with the Internal Revenue Service (IRS) information about <br />the health care coverage offered to eligible employees, and printing and mailing of <br />annual Federal Form 1095-C to eligible employees. Failure to meet this compliance <br />requirement can result in penalties for the City. <br />Keenan, the City’s Benefits Broker, conducted a blind solicitation for proposals and <br />received four vendor responses. The City selected Sterling Health Services based on <br />its lowest responsible bid. The proposed agreement stipulates an annual fee of $3,000 <br />and additional services of printing and mailing IRS forms at a cost per mailing. Total <br />annual costs for the services will not exceed $10,000 per year. <br />Although this agreement falls within the City Manager's authority of $50,000, the City <br />already has an existing contract with the vendor for other services. As a result, this