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.
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® (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.
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(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
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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.
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® 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
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