City Council
Report
City Council Meeting: November 24, 2020
Agenda Item: 3.I
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To: Mayor and City Council
From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Award Request for Proposal and enter into Agreement with Plansource Benefit Administration, Inc. for Benefits Administration System Recommended Action
Staff recommends that the City Council:
1. Award RFP to PlanSource Benefits Administration, Inc., for a benefits administration system for the Human Resources Department;
2. Authorize the City Manager to negotiate and execute an agreement with PlanSource Benefits Administration, Inc., in an amount not to exceed $53,500, including a 10% contingency, for one-year with one additional one-year renewal option in the amount of $53,500, on the same terms and conditions for a total amount not to exceed $107,000 over a two-year period, with future funding contingent on Council budget approval.
Summary
To provide streamlined, automated, and easily accessible employee benefit-related transactions and to remain compliant with the reporting regulations of the Affordable Care Act (“ACA”), the City currently utilizes a benefits administration system from PlanSource Benefits Administration, Inc. (“PlanSource”). Pending the expiration of the original contract, staff requested that the City’s insurance broker, Alliant Insurance Services, Inc. (“Alliant”), solicit proposals for review. Alliant provides the City with benefits consulting services which include negotiating health and welfare insurance benefit plans, issuing requests for proposals for health insurance coverage & products, and providing detailed analysis of proposal responses. These services ensure costeffectiveness in a competitive health plan and product marketplace. A Request for Proposals (“RFP”) was conducted by Alliant. Based on PlanSource’s ability to provide the currently required scope of services with no operational impact to employees, staff recommends that these services continue to be provided by them at a cost not to exceed $53,500 (including a 10% contingency) over a one-year period, with one, one-year renewal option for $53,500 (including a 10% contingency). Future year funding will be contingent on Council budget approval.
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Discussion
Currently, benefit-related transactions are managed through the PlanSource benefits administration software platform which also provides a mechanism to ensure accurate reporting compliant with the ACA. The PlanSource platform allows benefits staff to manage the ten different vendors the City contracts with to provide a comprehensive benefits program to eligible employees and their dependents. Additionally, the PlanSource platform enables staff to manage the high volume of employee benefit-related transactions and complexities associated with yearly ACA reporting. Since 2015, the City has utilized the services of PlanSource and their BenefitOne technology platform. As contract #10589 and all available modifications were expiring an RFP was conducted by Alliant in August 2020.
Vendor/Consultant Selection
As our insurance broker, Alliant prepared the bid specifications and conducted the procurement on the City’s behalf. The following companies responded to the RFP:
1. BCC
2. Benetrac
3. Empyrean
4. PlanSource
PlanSource’s technology platform provides staff the ability to manage benefits and eligibility on-line with intuitive cloud-based technology; automate the creation and distribution of Forms 1094-C and 1095-C as required by the ACA; generate, adjust, and reconcile carrier bills; customize reports and workflows; provide a portal for employees to enroll in and access their benefits from any computer or mobile device any time of day or night; and connect with third party systems to exchange and update employee benefits information with insurance carriers and the City’s payroll system. Based on cost and PlanSource’s ability to provide the full scope of services needed to maintain continuity in HR operations, staff recommends a contract to enable these services to continue to be provided by PlanSource.
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Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with PlanSource Benefits Administration, Inc. to provide a cloud-based benefit administration platform. Future year funding contingent on Council budget approval.
Contract
Request Amount
FY 2020-21 Budget
Department/CIP Account #
Total Contract
Amount
01130004.529230 $107,000
Prepared By: Sasha Sargent, Executive Administrative Assistant Approved Forwarded to Council