01-09-1989 Council Packet - Laserfiche WebLink

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Hart^will help us identify those employee benefit plans which ‘are, or may be subject to Section 89; furnish us with an opinion as to the qualification of those plans under the rules of Section 89(k), recommend actions which will help those plans qualify under the rules of Section 89(k) which do not currently so qualify; and to perform tests to project the application of the nondiscrimination rules of Section 89(d) and (e) to our benefit plans, then to furnish us with an opinion as to the federal income tax implications of the test results. We have been given a cost estimate for the services described above of $4,200 to $5,000 if we use DCA/Moore, Costello & Hart and $2,200-$2,600 if we use DCA only with seperate legal services from a firm of our choosing. In view of Moore, Costello & Hart's stated active practice in employment and employee benefits law, regularly working with clients in the design, drafting and implementation of health, welfare and retirement plans I would recommend contracting with DCA and Moore, Costello & Hart for the Section 89 compliance program in the amount of up to $5,000 to be appropriated from the General Fund Special Projects for other consulting services with the budget amended at the end of 1989 if needed. As an alternatve we could utilize Popham, Haik if the service they provide is equivalent. Mr. Ardy Prekker of DCA has offered to attend the Council meeting to further explain the law and the compliance system and proceedures if we desire. TO: Mayor and City Council FROM: Mark E. Bernhardson, City Administrate f Forwarded recommending approval. DCA as the administrator for Orono through LOGIS health plans, which comprise a substantial bulk of the review, it is therefore able to give a significant discount on this portion. Many cities in the Metropolitan area are presently contracting with a consultant or are entertaining proposals for such a review at this time. While normally the staff would have submitted this as a budget item prior to this, no one was offering the service