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Approve a second amendment to the contract with Navia Benefit Solutions, Inc. in the amount of $30,000 for a total contract of $83,200 to continue to provide COBRA administrative services through December 31, 2026
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Director of Human Resources (HR) recommends that the Board of Supervisors approve a second amendment to the contract with Navia Benefit Solutions, Inc. in the amount of $30,000 for a total contract of $83,200 to continue to provide COBRA administrative services through December 31, 2026.
SUMMARY:
The County entered into a contract with Navia Benefit Solutions, Inc. effective July 1, 2023, to provide benefit administration services to the County of Solano which includes the distribution of legally required notices when employees experience qualifying events, such as a termination, reduction in hours, or other status changes. Each event may generate multiple notices for both the employee and their dependents, resulting in variable mailing volumes and associated per-notice charges. This variability in mailing costs was not fully anticipated in the original contract amount. While there are no changes to the scope of services, HR is requesting an amendment to the contract to account for the unanticipated costs. Approval of the amendment will ensure the County can continue to meet its legal obligations to provide timely communication to employees and their families.
FINANCIAL IMPACT:
The estimated costs for services are not projected to exceed $30,000 through December 31, 2026, and are included in the Department of Human Resources’ FY2025/26 Working Budget. The cost associated with preparation of this agenda item is nominal and will be absorbed in the Department’s FY25/26 Working Budget.
DISCUSSION:
The County is required to mail notices associated with employee events such as Leaves of Absence (LOA), retirements, terminations, and new hires. Each of these events generates a legally required notice for the employee, and when applicable, for each covered dependent. The contract with Navia ensures the County meets its obligations to provide these notifications.
The volume of notices to be mailed fluctuates. A single event can lead to multiple mailings, each incurring a $3.00-per-unit charge. The variation in notice volume has directly impacted the total cost incurred under the current contract. The recommended contract amendment will ensure continued compliance with Federal COBRA and other benefit-related notification requirements while aligning the contract with actual service utilization.
ALTERNATIVES:
The Board of Supervisors could choose not to approve the amendment; however, this alternative is not recommended as the County would still be responsible for covering the costs already incurred by Navia Benefit Solutions, Inc. for notices that have been mailed. Additionally, the notices are required by law.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the contract amendment to ensure it meets all legal and contractual requirements.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION