Loading...
HomeMy Public PortalAboutORD10963 BILL NO. 87-152 SPONSORED BY COUNCILMAN HALSEY ORDINANCE NO. AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH EMPLOYEE BENEFIT ADMINISTRATION, INC. , AUTHORIZING THE ADDITION OF A CAFETERIA PLAN. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. The Mayor and City Clerk are hereby authorized to execute an amendment to the contract with Employee Benefit Administration, Inc. , for the addition of a cafeteria plan. Section 2. The amendment shall be substantially the same in form and content as that amendment attached hereto as Exhibit A. Section 3. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed Approved id i Officer Mayor ATTEST: City Clerk e AMENDMENT TO ADMINISTRATIVE AGREEMENT This Amendment, entered into this day of 1987, by and between the City of Jefferson, (City) and Employee Benefit Administrators, Inc. (EBA) . WITNESSETH WHEREAS, the City and EBA have previously entered into an administrative agreement dated January 1, 1987; and WHEREAS, the City has adopted a Flexible Benefits Plan (hereinafter the "Plan" ) under the provisions of Section 125 of the Internal Revenue Code of 1954; and WHEREAS, the City desires to delegate certain administrative functions in connection with the aforesaid plan; and WHEREAS, EBA is willing to undertake these administrative functions, as set out herein; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree to modify the administrative agreement dated January 1, 1987, to include the following: 1p 1. SERVICES OF EBA EBA shall perform the following clerical and accounting services necessary for the administration of the Plan: (a) Establish a database of all pertinent employee and employer information based on information to be provided by the City. (b) Update database monthly for employee changes (i.e. , terminations, new employee, benefit election changes, etc. ) based on information to be provided by the City. (c) Where appropriate, as determined by EBA, EBA shall provide a monthly statement of benefit accounts for each employee with reimbursement check prepared by EBA on the employer account. This will be sent by EBA to the employee's home address. This statement will also be the voucher for the actual expenses incurred by the employee. This voucher and actual receipts will be returned to EBA on a monthly basis. A copy of the original survey form signed by the employee along with instructions for completing the voucher will be sent with this statement. • - 1 ® (d) Provide a review verifying compliance with federal discrimination rules based on information received from the City. (e) Assist City in preparation of an annual report to be filed in accordance with the Internal Revenue Service. (f) Assist City in preparation of Department of Labor reporting requirements , and other reporting requirements as may hereafter be established, if any, on a timely basis. 2. DUTIES OF CITY The City, or appointed representative of the City, shall perform the following services necessary for the administration of the Plan: (a) Submit initial setup information as requested by EBA. (b) Secure a signed Administrative Service Agreement on the provided contract form with EBA. (c) Insure that the Flexible Benefits Plan documents are executed and provide a copy of all such documentation to EBA. (d) Insure that salary reduction agreements are signed by the employee and provide copies of these agreements to EBA. (e) Enroll and submit new employee in accordance with the eligibility requirements and re-enrollment periods specified in the plan documents. (f) Insure that completed employee expense vouchers and receipts are returned on a timely basis to the City and a copy provided to EBA of these vouchers. (g) Review and counsel with employees whose vouchered expenses are not equal to reimbursements. Take any appropriate and legal action to insure that employees are not reimbursed more than actual expenses during the Plan year or secure the return of any overpayment in accordance with the Plan documents. (h) Conduct an annual review of employee benefit elections. Advise EBA of any changes in employee benefits under the Plan. Provide EBA a copy of all changes and signed Salary Reduction' Agreements reflecting these changes. 2 (i) Make necessary changes in the payroll in accordance with each employee' s Salary Reduction Agreement and insure that employee W-2 forms will reflect new gross taxable wages after the salary reduction. (j ) Provide information on employee terminations to EBA so as to reflect the termination. (k) Provide pertinent information to EBA that is requested for tax reporting or Plan administration. 3. INDEPENDENT CONTRACT RELATIONSHIP EBA is a duly registered corporation within the State of Kansas rendering administrative services to various employers and entities, including the City. For all purposes, EBA shall be considered an independent contractor for payroll taxation, workmen's compensation and liability purposes, and no employee of EBA shall be considered for any purpose to be an employee of the City. EBA reserves to itself the right to determine duties, obligations and compensation of its employees and shall have the widest possible discretion in selecting its methods of operation. The duties of EBA in providing administrative services to the City on the Plan shall be independent of and severable from any insurance policies or benefits sold by third parties or by EBA. 4. PLAN UPDATES EBA agrees to advise the City from time to time, as shall be necessary, of any changes in any law' or regulation affecting Flexible Benefits Plans which shall come to the attention of EBA. EBA shall not, without the consent of the City in writing, engage any professional services for the benefit of the City. 5. COMPENSATION EBA shall receive, as compensation for its services, a charge of $4.00 per participating employee per month. 5. TERM OF AMENDMENT TO AGREEMENT This amendment to the previously executed agreement shall remain in force for a period commencing on February 1, 1988, and terminating on December 31, 1988, but shall be automatically renewed for an additional term commencing on January 1, 1989, and terminating on December 31, 1989, unless either party gives notice . to the other in writing ninety ( 90) days before the expiration of this amendment. Either party shall have the right to terminate this amendment thirty (30) days after notifying the other party in writing of a violation of the terms and conditions 3 of this Amendment, unless cured before such thirty (30) day period expires. 7. CONFIDENTIALITY EBA acknowledges that the City is under a legal obligation to maintain the confidentiality of employee records. EBA agrees to comply with such reasonable procedures for maintaining confidentiality as shall be specified by the City. All employee information shall remain the property of the City and shall be surrendered entirely to the City in the event of the termination of this Amendment. EBA reserves the right to retain copies as to such information. EBA agrees to allow properly authorized employees of the City to inspect the records on reasonable notice during regular office hours upon request. The City acknowledges that it shall have no ownership or other interest in any computer software or programs purchased or created by EBA. 8. NOTICE Where notice is required or allowed under the terms of this Amendment, such notice shall be mailed first class with postage prepaid as follows: City: City of Jefferson Attn. Personnel and Safety Officer AM 320 East McCarty Jefferson City, Missouri 65101 EBA: Employee Benefit Administrators, Inc. PO Box 14970 Shawnee Mission, KS 66215 9. INVALIDITY The provisions of this Amendment shall be severable and if any provision shall be invalid or void of unenforceable in whole or in part for any reason, the remaining provisions shall remain in full force and effect. 10. CAPTION The captions or headings in this amendment are made for convenience and general reference only and shall not be construed to describe, define or limit the scope or intent of the provisions of this Amendment. • 4 ® 11. OTHER PROVISIONS All other provisions of the Administrative Service Agreement shall remain in full force and effect during the period of this amendment. IN WITNESS WHEREOF, we have set our hands and affixed our seals the day and year first above written. "City" By: Attest: "EBA" By: Pr i en Attest• 110 -IA Secr ary ® 5