RESOLUTION NO. 2003-____

A RESOLUTION OF THE CITY OF ASHLAND ADOPTING A FULL SECTION 125 PLAN FOR ITS EMPLOYEES BY REPEALING RESOLUTION NO. 2002-34. THE ACT OF INVALIDATING RESOLUTION NO. 2002-34 DOES NOT INVALIDATE THE PROGRAM.

Recitals:

A. The governing body of the City of Ashland (City) finds and determines that it is in the interest of the City and the City's employees that the City offer an Internal Revenue Code Section 125 Plan to its employees; and

B. The Personal Choice Account, set forth in Exhibit "A" (hereafter "the Plan") provides sufficient flexibility to permit employees of the City to select benefits that most suit their needs by providing a choice between cash wages and the option to set aside wages before taxes have been deducted to cover health insurance premiums, eligible medical and dependent care expenses; and

C. The Plan as set forth will allow the employees and the City to establish a partnership to educate employees and their families about appropriate health care utilization and to share responsibility for health care.

THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, RESOLVES:

SECTION 1. That the governing body of the City hereby adopts the Personal Choice Account as a full Section 125 Plan attached hereto as Exhibit "A" and fully incorporated by reference.

SECTION 2. The Personal Choice Account adopted by this resolution shall incorporate and replace, without invalidating, the Premium Conversion Plan adopted on December 18, 2002 by Resolution 2002-34.

SECTION 3. This resolution takes effect upon signing by the Mayor.

This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly

PASSED and ADOPTED this ______day of ______, 2003:
Barbara Christensen, City Recorder

SIGNED and APPROVED this ______day of ______, 2003:
Alan W. DeBoer, Mayor

Reviewed as to form:
Mike Franell, Assistant City Attorney

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