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Item 22 - Agreement for Affordable Care Act Compliance Services
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11/19/2024
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Item 22 - Agreement for Affordable Care Act Compliance Services
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11/13/2024 10:52:12 AM
Creation date
11/13/2024 10:29:29 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Human Resources
Item #
22
Date
11/19/2024
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AGREEMENT BETWEEN THE CITY OF SANTA ANA AND <br />STERLING HEALTH SERVICES FOR AFFORABLE CARE ACT COMPLIANCE <br /> <br />THIS AGREEMENT is hereby made and entered into this 19th day of November, 2024, <br />by and between the City of Santa Ana, a charter city and municipal corporation organized <br />and existing under the Constitution and laws of the State of California ("City"), and Sterling <br />Health Services, Inc. a California Corporation doing business as Sterling Administration <br />(“Consultant”). <br />RECITALS <br />A. The City desires to retain Consultant to assist City in maintaining compliance with <br />the Patient Protection and Affordable Care Act (“ACA”) {42 U.S.C. Sections 18001 <br />et seq.) <br /> <br />B. In undertaking the performance of this Agreement, Consultant represents that it is <br />knowledgeable in its field and that any services performed by Consultant under <br />this Agreement will be performed in compliance with such standards as may <br />reasonably be expected from a professional consulting firm in the field. <br />NOW THEREFORE, in consideration of the mutual and respective promises, and subject <br />to the terms and conditions hereinafter set forth, the parties agree as follows: <br />1. SCOPE OF SERVICES <br /> <br />A. Consultant shall provide services necessary to assist City in maintaining <br />compliance with the ACA, including but not limited to, capturing all employees <br />including full time, part time, variable hour employees, and multi-employer and/or <br />union employees, generation of 1094 and 1095 forms on behalf of the City <br />including the potential for printing and mailing the forms on behalf of the City, IRS <br />fulfillment status, aid in resolving 226-J letter/fme issues that may develop, and <br />providing the ability to talk with an ACA compliance specialist during normal <br />business hours. <br /> <br />B. City shall provide information necessary to prepare 1094 and 1095 forms on behalf <br />of City no later than January 8th of every year. Consultant will then distribute ACA <br />forms to City for distribution or at City’s election, mail forms to City employees no <br />later than January 31st. Consultant will e-file 1094 and/or 1095 forms on behalf of <br />the City with the IRS, no later than March 31st. <br /> <br />2. COMPENSATION <br /> <br />A. City agrees to pay, and Consultant agrees to accept as total payment for its <br />services a flat yearly fee of $3,000. Optional services of printing and mailing IRS <br />forms 1094 and 1095 are available at a cost of $3.75 per mailing. The total sum
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