R-694 - 07/08/1997 - IMRF - Resolutions Supporting Documents OF Oq,r��a
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VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK , ILLINOIS 60521 - 2255
PHONc: 630 990-3000
MEMORANDUM FAX: 630 9 9 0.0 S 7 6
DATE: July 2, 1997
TO: Village President and Board of Trustees
FROM: 'Michael A. Crotty,Assistant to Village Manager 1WA'_"*/
SUBJECT: Section 125 Flexible Benefits Plan
RECOMMENDATION: (1) That the Village Board adopt a resolution approving
an Internal Revenue Code Section 125 flexible benefits plan for the Village,and
authorize the Village Manager to sign the plan document and flexible benefits claims
administration agreement with Health Plan Man.Agement,Inc.
(2) That the Village Board adopt a resolution that allows contributions to a flexible
benefits account to be counted as income for IMRF purposes.
On June 24, 199"', the Village Board approved a number of amendments to the Villag of Oak
Brook Health and Dental Plan, including the implementation of an Internal Revenue Code Sectioa
125 flexible benefits plan. This plan enables employees to tax shelter ce..ntributions to premiums,
qualified unreimbursed medical expenses and qualified child care/dependent care expenses.
Implementation of the Section 125 flexible benefits plan is accomplished under a separate plan
document that can be adopted by resolution.. Because we had not yet received the plan document
from our third part-administrator, we indicated that we would bring it to the Board in Jul•. Now
that we have the document, it is appropriate that the Board adopt the plan document by resolution
at this time, and authorize the Village Manager to sign a flexible benefits claims administration
agreement with our current third party administrator.
Staff also recommends the adoption of a related resolution that permits the Village to report
contributions made to a Section 125 account as income for IMRF purposes. Wide making
contributions to a Section 125 account allows the participant to tax shelter income that will be used
for qualified medical expenses, contributions are not automatically counted as income for IMRF
purposes. In order to allow participants to take advantage of the tax benefits of Section 125
without reducing their income for pension purposes, the Village Board would need to pass the;
attached resolution.
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S 111 RPM
Ayes: 6 - Trustees Bartecki,Caleel, Kenny, McInerney, Savino
and Shumate.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
2. RESOLUTION 97-AC-IS-EX 1-R-69 t A RESOLUTION RES.97-AG-IS-EX1-
APPROVING AND AUTHORIZINQ EXECUTION D THE R-693
VILLAGE OF OAK BROOK FLEXIBLE BENESIS PLAN: APPROVING AND
AUTHORIZING
On June 24, 1997,the Village Board approved a number of EXECUTION OF THE
VOB FLEXIBLE
amendments to the Village of Oak Brook Health and Dental Plan, BENEFITS PLA\
including the implementation of an Internal Revenue Code Section
125 flexible benefits plan. This plan enables employees to tax shelter
contributions to premiums,qualified unreimbursed medical expenses
and qualified child care/dependent care expenses.
Implementation of the Section 125 flexible benefits plan is
accomplished under a separate plan document. Since staff had not yet
received the plan document from the Village's third party
administrator,it was indicated that it would be brought to the Boar:'
in July. y
Motion by Trustee Bartecki, seconded by Trustee Savino, to pass
Resolution 97-AG-IS-EXI-R-69-,"A Resolution Approving And
Authorizing Execution Of The Village Of Oak Brook Flexible
Benefits Plan",and valve the full reading thereof,and authorize the
Village Manager to sign the plan document and flexible benefits
claims administration agreement with Health Plan Management, Inc.
ROLL CALL VOTE:
Ares: 6 - Trustees Bartecki, Caleel, Kenny, McInerney, Savino
and Shumate.
Nays: 0 - None.
Absent: 0 - None. \lotion carried.
RESOLUTION 9E-INIRF-R-694 4 RESOLUTION TO RES.97-I�tR=-
INC L 1DE COMPENSATION PAID UNDER AN INTERNAL R-694
REVENUE CODE SF .TI N 125 PLAN AS IMRF EARNINGS: INCLUDE CO?'•2-FNSA-
TION PAID U\-DER
The resolution permits the Village to report contributions made to a IRS CODE SECT-ION
Section 125 account as income for I\ EAR
-IRF purposes. EAR NIN I*ice=
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Motion by Trustee Bartecki,seconded by Trustee Caleel, to pass
Resolution 97-IMRF-R-694,"A Resolution To Include Compensation
Paid Under An Internal Revenue Code Section 125 Plan As IMRF
VILLAGE OF OAK BROOK Minutes 4 of S July 3, 1997
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Earnings",as presented and waive the full reading thereof. ROLL
CALL VOTE:
Ayes: 5 - Trustees Bartecki, Caleel, Kenny, Savino and Shumate.
Nays: I - Trustee McInerney.
Absent: 0 - None. Motion carried.
C. AWARD OF ONT ACTS:
1. TRUCK FPi A FA�ENT PUBLIC WORKS, IMTS 4502.
l�z AND#506:
Bid packages were sent to six (6)companies. Two(2)sealed bids
were received on July 2, 1997. Reasons for companies not bidding
include not having sufficient time(bidders had two (2)weeks)and no
availability for the specified vehicles. Staffs recommendation is in
the alternative due to the pending shut-down of the plant which
manufacturers the 5-ton trucks.
Total funds in.the amount of 5200,060 have been budgeted in the
Equipment Replacement Fund (15-9101) for the replacement of three
(3) vehicles($43,260 for Unit 4502 and S 156,800 for Units#503 and
#506). Staff is recommending the purchase of only the two larger
trucks(4503 and#506) in order to stay within the total budget of
$200,060. Ho%vever, if those vehicles are unavailable, staff
recommends purchase of the smaller truck and intends to re-budget
for 1998 whichever vehicle(s)are not purchased. Staff is also
recommending not accepting the trade-in amounts, as they belieVe
higher values twill be obtained through next year's Mayors and
Managers Conference auction.
Motion by Trustee Bartecki, seconded by Trustee Kenny, to award a
contract, subject to staff re,71ew, to Patson, Inc., d/b/a Northwest Ford
Truck Center, Franklin Park,the lowest responsible bidder, for two
(2) 1998 Ford L8513 5-ton trucks at a total cost of S175,972 and one
(1) 1997 Ford F-350 1-ton truck at a cost of 553,996. ROLL CALL
VOTE:
Ayes: 6 - Trustees Bartecki, Caleel. Kenny. McInerney, Sax.'
no
and Shumate.
Nays: 0 - Non:.
Absent: 0 - None. Motion cap:ied.
8. DEPARTMFNTAI I:EPORTS - SPECIAL.TY AREAS:
z' eeri.": Trustee Bartecki - The Illinois Department of Transportation
awarded the construction contract to Ganna Construction for the 22"d
VILLAGE OF OAK BROOK Minutes 5 of 8 July S. 1997
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