HomeMy WebLinkAboutResolutions - No. 93-140RESOLUTION NO. 93-140
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A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING CONTRACT AUTHORIZING WESTERN STATES ADMINISTRATORS
TO ADMINISTER THE CITY OF LODI'S FLEXIBLE SPENDING ACCOUNT PLAN
BE IT RESOLVED, that the Lodi City Council does hereby
approve the contract authorizing Western States Administrators
to administer the City of Lodi's Flexible Spending Account Plan,
as shown on Exhibit A attached hereto.
Dated: November 17, 1993
I hereby certify that Resolution No. 93-140 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held November 17,
1993 by the following vote:
Ayes: Council Members - Davenport, Mann, Sieglock, Snider and Pennino
(Mayor)
Noes: Council Members - None
Absent: Council Members - None
e ifer Perrin
City Clerk
93-140
RES93140/TXTA.02J
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FLEXIBLE BENEFITS PLAN
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The undersigned Employer and WESTERN STATES ADMINISTRATORS
("Administrator") hereby enter into this Agreement for the
administration of the Flexible Benefits plan adopted by the Employer
(the "Plan"), effective as of the effective date of the Plan.
1. Administration. Subject to the supervision of the Employer,
the Administrator will administer the Plan, including any amendments
thereto, in accordance with its terms. All of the provisions of the
Plan, including the provisions governing indemnifications and
limitations of liability, are hereby incorporated herein by reference.
The administration of the Plan includes, but is not limited to:
monitoring claims, preparation of summary plan description, participant
election forms, summary annual reports, and preparation of the Plan's
annual report (Form 5500). The Administrator acts as agent for the
Employer, and subject to direction from the Employer in receiving
payments from the Employer and processing employee benefit payments.
2. EE jployer R agp=ji;,�Uiti2s. The Employer shall determine the
eligibility of employees to participate in the Plan. in addition, the
Employer shall provide the Administrator in a timely manner with the
information necessary to administer the Plan, including the employee
census data, employee salary reduction amounts, plus estimated
administration costs, reduced by any forfeiture adjustments as
calculated by the Administrator.
3. Administrator Fees. The fees of the Administrator shall be
determined in accordance with the attached fee schedule.
Additional fees will be charged fcr any Plan redesign work, whether due
to changes in the law or to the desires of the Employer.
4. Advanced F11nds. Any income earned on the funds advanced to
the Administrator for the payment of benefits shall be the property of
the Employer and shall .be applied to reduce the administration fees set
forth in Paragraph 3 hereof. The administrator will segregate funds
advancod for accounting purposes and shall identify • the funds as
ptoperty of the Employer and the Plan. The Administrator acknowledges
that it holds such funds in a fiduciary capacity as agent for the
Employer and the Plan and accepts responsibility for any losses while
such funds are held by the Administrator.
5. Indemnification. The Employer hereby _indemnifies and holds
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cgovornmental agency or any plan participant arising out of wuoTMUT
STATES ADMINISTRATORS' preparation of the appropriate reports,
discrimination tests, reimbursement checks and other records if said
reports, tests and checks prepared by WESTERN STATES ADMINISTRATORS were
done in reliance on the complete information furnished by the Employer
or Agent of the Employer and said documents were prepared accurately
bused on said complete information. it is understood that WESTERN
STATES ADMINISTRATORS innot perform the discrimi tion tests unless the
Employer or Agent of the Employer provides WESTERN STATES ADMINISTRATORS
with all of the information necessary to perform said tests. In
addition, the Employer hereby indemnifies and holds harmless WESTERN
STATES ADMINISTRATORS from any cause of action by any gover»mental
agency or any plan participant for actions taken or omitted to ba taken
ny the Employer, Agents of the Employer or Administration Recordkeepers
prior to the effective date of this agreement. For purposes of this
Section 5, "complete information" means all of the .information necessary
for Western States Administrators to prepare the appropriate reports,
discrimination tests, reimbursement checks and other records.
6. termination. This Agreement shall automatically terminate
following the termination of the Plan, onoo all benefits have been paid
ana rinal reports prepared. The Agreement may be sooner terminated upon
sixty (60) days' written notice by either party to the other party; upon
any such sooner termination, the Administrator shall apply the funds in
its possession for the payment of benefits to employees and to payment
of its administrative fees and expenses. The Agreement may be
terminated at any time by the Administrator, on fifteen (15) days'
advance written notice, in the event the Employer fails to. advance funds
for 1-jana its wihan due, 4iiie 5 -elft }i £uTTds are provided -within the 15 -day
notice period. The Administrator has no responsibility to enforce the
Employer's funding of benefits required under the Plan.
7. Ngtices. All notices hereunder shall be given to the Employer
and the Administrator at the respective address below (or at any
subsequent address given in writing by one party to the other)
personally, by Federal Express or similar overnight courier, or by
United States mail, certified -return receipt requested, and shall be
deemed given when delivered personally, one (1) day after sent by
overnight courier, or three (3) days after deposited in the United
States mail.
8. If a conflict exists between the Request for Proposal and the
Proposal, the Request for Proposal will take precedence; if a conflict
exists between the Proposal and the Administration Agreement, the
language in the Agreement will take precedence.
This Administration Agreement is executed by the Employer -and the
Administrator on , 19 _
WESTERN STATES ADMINISTRATORS
Employer 5130 East Clinton Way
Fresno, California 93727
Address
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