Review Agenda Item
Meeting Date: 6/21/2017 - 3:30 PM
Category: Consent Calendar
Type: Action
Subject: 11.87 BUSINESS: Sales and Service Agreement With Sanorbix LLC for Healthcare Reform Apps and Services (funded through the General Fund)
Strategic Plan:
Enclosure
File Attachment:
Sanorbix - Sales and Service Agreement 17-18.pdf
Summary: The Affordable Care Act (ACA) requires that employers offer medical benefits, to all employees who have worked an average of 30 hours or more, each week, during the previous 12 months (look back period). Under the law this includes substitutes, walk-on coaches, tutors, etc. The penalty for not offering a medical plan that covers the Minimum Essential Coverage to 95 percent of eligible employees is substantial. In addition, there are new tax reporting requirements.

To comply with the multifaceted ACA, the District has been working with Sanorbix (previously Five Points), for the last two years. Sanorbix has provided a system to track eligibility of employees as well as the individual coding and reporting required by the Internal Revenue Service (IRS). These labor intensive, Health Care Reform (HCR) services, includes completing and mailing the mandatory IRS Form 1095-C (Parts I, II, & III) and completing and filing the IRS Form 1094-C (Parts I, II, III & IV) for each employee.

This Agreement would allow the continuous use of the Sanorbix system for tracking employee eligibility, individual IRS coding, and reporting as well as the completion and mailing the mandatory IRS forms, for each employee.

The total estimated cost of this agreement is $27,324.70, which will be adjusted based on the actual number of employees and mailings.

The term of this Agreement will be July 1, 2017 through June 30, 2018.

Education Code 17604 and 17605: The Governing Board delegates the power to contract and purchase supplies, equipment and services.
Funding: The cost for this item is included in the 2017-18 operating budget funded through the General Fund.
Recommendation: It is recommended that the Board of Trustees approve the Sales and Service Agreement with Sanorbix LLC for healthcare reform apps and services.
Approvals:
Recommended By:
Signed By:
Judy Miller - Director - Risk Management and Environmental Safety
Signed By:
Nick Newkirk - Director - Purchasing
Signed By:
Candace Reines - Deputy Superintendent
Signed By:
Grant Bennett - Superintendent
Vote Results:

Original Motion
Member David Nelissen Moved, Member Carolyn Twyman seconded to approve the Original motion 'It is recommended that the Board of Trustees approve the Sales and Service Agreement with Sanorbix LLC for healthcare reform apps and services.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 4 Nay: 0.
The motion Carried 4 - 0
   
Anthony T. Stafford, Sr.     Yes
Dr. Jose Luis Araux     Yes
David Nelissen     Yes
Carolyn Twyman     Yes