HomeMy WebLinkAboutAgenda Report - September 17, 1997 (74)e
`Fx . CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Approve Funding for Flex Spending Plan
MEETING DATE: September 17, 1997
SUBMITTED BY: City Manager
RECOMMENDED ACTION: That the City Council approve the funding for the
flexible spending account.
BACKGROUND INFORMATION: L & H Administrators were th third party
administrator for the City's flexible spending
account. L & H had a multi -state public and
private sector client base for which they
administered various health plans. Their public sector clients inc luuc the Suite 01"'T - da, cities
and counties in California, Nevada, and Arizona, school districts, and closer to home, the
University of the Pacific and locally, the Bank of Lodi.
We were recently informed that L & H defaulted in its obligations. The Ci of Lodi has
contacted the Fresno Co. District Attorney's office (L & H's California office was in Fresno)
and was informed that the matter has been referred to the United States Attorney. Currently the
United States Attorney in Fresno, in conjunction with the Department of La or and the Federal
Bureau of Investigation (Phoenix office) is conducting an investigation into his matter.
The financial impact to the participants from the City of Lodi is $13,506.27. We are requesting
that the City Council approve the restoral of this money which was deducte from employces
pay checks but not returned by L & H, to the employee accounts, subject to the City's right to
recoup the funds from L & H.
APPROVED: =Z64&=a-�
H. Dixon Flynn 2 City Manager
`c -7 OF,(
COUNCIL COMMUNICATION
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Additionally,
J
Additionally, checks sent to four employees from L & H, totaling $1,261.33 were returned for insufficient
funds ("bounced checks). Due to the financial hardship caused by this unexpected event we are
reimbursing these employees for their loss.
The City intends to continue with the plan and is in the process of contracting with a qualified new
administrator to assume administration of it.
COST: $16,767.60
FUNDING: Contingency Fund
Respectfully submitted,
H. Dixon Flynn, City Manager
cc: City Attorney
AePROVED:
H. Dixon Flynn -- City Manager
RESOLUTION NO, 97-150
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE FUNDING TO CITY OF LODI EMPLOYEES
RELATING TO THE FLEXIBLE SPENDING ACCOUNT
RESOLVED, that the Lodi City Council does hereby approve the funding to City
of Lodi Employees relating to the default of L & H Administrators relating to the Flexible
Spending Plan.
Dated: September 17, 1997
I hereby certify that Resolution No. 97-150 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held September 17, 1997 by the
following vote:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
ALICE M. REIMCHE
City Clerk
97-150