SR 03-14-2023 5J
City Council
Report
City Council Meeting: March 14, 2023
Agenda Item: 5.J
1 of 3
To: Mayor and City Council
From: Lori Gentles, Chief People Officer, Human Resources Department
Subject: Approval of Revised Contract Amount for Benefit Administration Software with
PlanSource for Human Resources Department
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect on the environment pursuant
to Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines.
2. Authorize the Procurement Manager to increase the contract amount for the
Human Resources Department with PlanSource for benefit administration
software in an amount not to exceed $336,000, which covers an overage on the
previous Council budget authorization and covers future services until the
anticipated end of the contract on July 1, 2023.
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 utilizes a benefits administration system, currently provided
by PlanSource Benefits Administration, Inc. (“PlanSource”). On September 28, 2021,
Alight-Hodges-Mace, LLC (“Alight”) was awarded a City Council approved contract to
provide the City a new benefit administration system with a not-to-exceed amount of
$846,375 over five years. The implementation of this system has been delayed due to
staffing shortages and technical challenges. No expenses have been incurred with
Alight to date. Due to an under projection of costs and the delayed transition from
PlanSource to Alight, City staff anticipates the City Council-approved spending authority
5.J
Packet Pg. 432
2 of 3
with PlanSource will be exceeded by $229,000 over the originally approved amount of
$107,000 and are requesting a new not-to-exceed amount of $336,000.
Discussion
On November 24, 2020, City Council approved contract #11111 (CCS) with PlanSource
for an amount not to exceed amount of $107,000 for a term of two years for Employee
Benefit Administration Software. In 2021, staff completed a competitive request for
proposal (RFP) process to identify a new long-term strategic partner to provide the City
with a more robust, efficient, and integrated benefits administration system. On
September 28, 2021, City Council approved contract #11190 (CCS) with a new vendor,
Alight, to replace PlanSource, with a not to exceed amount of $846,375 over a five-year
term. The City has not yet spent any of the $846,375 City Council authorized funds with
Alight. However, the transition to the new vendor has been delayed due to staffing
shortages and technical challenges and is anticipated to be completed by July 1, 2023.
Upon review of the City’s contract with PlanSource, staff identified the amount paid
exceeded Council authorization caused by the delayed implementation and an under
projection of the amount needed to cover the initial contract term. To ensure continuity
of this vital service, staff seeks City Council authority to cover the overage on the
previous Council budget authorization for PlanSource under contract #11111 (CCS) and
to cover future services during this transition until the City provides advance notice to
PlanSource to end the contract, with an anticipated end date of July 1, 2023.
Past Council Actions
Meeting Date Description
November 24, 2020
(attachment A)
Original bid and award of agreement with PlanSource for
Benefit Administration Software
Environmental Review
The revised contract for benefit administration software would have no possibility of
significant effect on the environment, and therefore, is exempt pursuant to Section
5.J
Packet Pg. 433
3 of 3
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act
(CEQA) Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve an increase to the contract over the originally approved
amount of $107,000 for PlanSource Benefits Administration, Inc. for benefit
administration software. Staff will return to Council if specific budget actions are
required in the future.
Contract
Request Amount FY 2022-23 Budget
Department/CIP Account #
Total Contract Amount
$229,000 01130004.529230 $336,000
Prepared By: Mark Brower, Deputy Director
Approved
Forwarded to Council
Attachments:
A. 11/24/2020 PlanSource Staff Report
B. OAKS
5.J
Packet Pg. 434
City Council Report
City Council Meeting: November 24, 2020
Agenda Item: 3.I
1 of 3
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 cost-
effectiveness 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.
5.J.a
Packet Pg. 435 Attachment: 11/24/2020 PlanSource Staff Report (5606 : Benefit Administration Software Contract Increase Approval)
2 of 3
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.
5.J.a
Packet Pg. 436 Attachment: 11/24/2020 PlanSource Staff Report (5606 : Benefit Administration Software Contract Increase Approval)
3 of 3
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
5.J.a
Packet Pg. 437 Attachment: 11/24/2020 PlanSource Staff Report (5606 : Benefit Administration Software Contract Increase Approval)
Please attach additional pages if more space is required.
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
5.J.b
Packet Pg. 438 Attachment: OAKS (5606 : Benefit Administration Software Contract Increase Approval)
Please attach additional pages if more space is required.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles
and maintains certain information. That information includes the name of any person or persons
who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an
individual person, the information includes the name of every person who is: (a) trustee, (b)
director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month
period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12-
month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month
period;
5. Land use variance, special use permit, or other exception to an established land use plan,
where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month
period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month
period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
5.J.b
Packet Pg. 439 Attachment: OAKS (5606 : Benefit Administration Software Contract Increase Approval)