HomeMy WebLinkAboutRES CC 2014 3332 2014 1105 RESOLUTION NO. 2014-3332
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ADOPTING SAFE HARBORS
UNDER THE PATIENT PROTECTION AND AFFORDABLE
CARE ACT
WHEREAS, The Patient Protection and Affordable Care Act ("ACA") was
enacted on March 23, 2010; and
WHEREAS, ACA added Section 4980H Shared Responsibility for Employers
Regarding Health Care Coverage (Section 4980H) and Section 6056 Certain Employers
Required to Report on Health Insurance Coverage (Section 6056) to Title 26 of the
United States Code, the Internal Revenue Code; and
WHEREAS, Section 4980H imposes an assessable payment on an applicable
large employer when (1) it fails to offer "substantially all" of its full-time employees (and
their dependents) the opportunity to enroll in minimum essential coverage or offers
coverage to "substantially all" of its full-time employees (and their dependents), but that
coverage is "unaffordable" or does not provide "minimum value" and (2) any full-time
employee is certified to the employer as having received a subsidy for coverage through
the exchange ("Assessable Payment"); and
WHEREAS, Section 6056 requires an applicable large employer to file with the
Internal Revenue Service an annual return for each full-time employee; and
WHEREAS, the City of Moorpark ("City") is considered an applicable large
employer because it employed an average of at least 50 full-time employees (including
full-time equivalents) on business days during the preceding calendar year; and
WHEREAS, the Department of Treasury issued final regulations regarding
Section 4980H, that permit the City to adopt the Look Back Measurement Method Safe
Harbor in order to determine the status of an employee as "full-time" for purposes of
reporting and calculating the Assessable Payment, if any (79 Federal Register 8544,
8586, February 12, 2014); and
WHEREAS, the City intends to adopt the provisions of the Look Back
Measurement Method Safe Harbor in order to determine the full-time status of its
employees for reporting purposes related to the Assessable Payment; and
WHEREAS, the Department of Treasury issued final regulations regarding
Section 4980H that permit the City to use one of three affordability safe harbors for any
reasonable category of employees as long as it is applied on a uniform and consistent
basis for all employees in the category (79 Federal Register 8544, 8599-8601, February
12, 2014); and
WHEREAS, the City intends to use the affordability safe harbors as
contemplated in the final regulations; and
Resolution No. 2014-3332
Page 2
WHEREAS, the City intends to use good faith efforts to comply with legal
requirements under ACA despite that they have not yet been fully developed; and
WHEREAS, the City expects that further guidance and regulations may be
issued regarding ACA.
NOW THEREFORE, be it resolved by the City Council of the City of Moorpark as
follows:
SECTION 1. The City hereby establishes the Look Back Measurement Method
Safe Harbor with regard to all employees for the purpose of identifying full-time
employees for IRS reporting purposes relating to the Assessable Payment.
SECTION 2. The City does not establish the Look Back Measurement Method
Safe Harbor for the purpose of determining eligibility for an offer of medical coverage as
to any employee. All represented employees' eligibility for an offer of medical coverage
shall be governed by the terms of any applicable memorandum of understanding.
SECTION 3. The City hereby delegates authority to the City Manager,
including his/her designee(s), to create an ACA Administrative Policy ("Policy") that
establishes measurement, administrative, and stability periods; governs the
measurement and tracking of employees' hours of service; and/or otherwise establishes
procedures in accordance with Section 4980H to comply with the Look Back
Measurement Method Safe Harbor.
SECTION 4. For each reasonable category of employees, the City in its sole
discretion, but on a uniform and consistent basis for all of the employees in a
reasonable category, will apply one of the three affordability safe-harbors (i.e. Form W-2
Safe Harbor, Rate of Pay Safe Harbor, or Federal Poverty Line Safe Harbor) to
determine the affordability of the minimum value coverage that it may, if applicable, offer
to its full-time employees.
SECTION 5. The City hereby delegates authority to the City Manager,
including his/her designee(s), to establish the Policy to comply with any of the three
affordability safe harbors in accordance with and as permitted by Section 4980H.
SECTION 6. The City Manager, including his/her designee(s), shall have
authority to modify the Policy to ensure the City's compliance with Sections 4980H and
6056 of the Internal Revenue Code.
Resolution No. 2014-3332
Page 3
SECTION 7. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 5th day of November, 2014.
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J. ice S. Parvin, Mayor
ATTEST:
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Maureen Benson, City Clerk z�'
Resolution No. 2014-3332
Page 4
STATE OF CALIFORNIA
COUNTY OF VENTURA ) ss.
CITY OF MOORPARK
I, Maureen Benson, City Clerk of the City of Moorpark, California, do hereby
certify under penalty of perjury that the foregoing Resolution No. 2014-3332 was
adopted by the City Council of the City of Moorpark at a regular meeting held on the 5th
day of November, 2014, and that the same was adopted by the following vote:
AYES: Councilmembers Mikos, Millhouse, Pollock, Van Dam, and Mayor Parvin
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS my hand and the official seal of said City this 14th day of November,
2014.
Maureen Benson, City Clerk
(seal)
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