Loading...
HomeMy WebLinkAboutAgenda Report - November 17, 1993 (64)J OR CITY OF LODI 00 COUNCIL COMMUNICATION AGENDA TITLE: Approve contract authorizing Western States Administrators to administer Flexible Spending Account Plan MEETING DATE: November 17, 1993 PREPARED BY: Personnel Director RECOMMEND ACTION: That City Council approve the contract to authorize Western States Administrators to administer. the Flexible Spending Account Plan. BACKGROUND INFORMATION: In Sept. 1993, the City of Lodi received notice from Delta Benefits Plans of its intent to terminate our contract for administering our Flexible Spending Account Plan effective January 1, 1994. On 'eptember 15, 1993, the City Council authorized a request for proposal to be issued for the purpose of selecting a new administrator. Six proposals were submitted for consideration. A scr --eroing committee composed of Jerry Glenn, Assistant Ci!y Manager; Dixon Flynn, Finance Dig ector; and myself reviewed all proposa.s for compliance with the request for proposal. After exr mining costs and services provided, three firms were invited to present their proposals and rr�pond to questions from the screening committee. It is the recommendation of this committee that Western States Administrators be selected to administer the Flexible Spending Account Plan. FUNDING: Currently Budgeted. ` Joanne M. Narloch Personnel Director JMN/kt cc: City Manager APPROVED7. THC MAS A. PETERSON City Manager /I cc -1 RESOLUTION NO. 93-140 saaazzaaaaazaas:szasaa A RESOLUTION OF THE LODI CITY COUNCIL APPROVING CONTRACT AUTHORIZING WESTERN STATES ADMINISTRATORS TO ADMINISTER THE CITY OF LODI'S FLEXIBLE SPENDING ACCOUNT PLAN aaasasaaxa=aaxsaaxa=sxzseas:aazaazaxasaaasaaaaaasasaasaasssaaa:ssssassassss rsssssssa BE IT RESOLVED, that the Lodi City Council does hereby approve the contract authorizing western States Administrators to administer the City of Lodi Is Flexible Spending Account Plan, as shown on Exhibit A attached hereto. Dated: November 17, 1993 s.aeaaes=sssae=aa=sa.sxaxaaecoxvassc.:saxaasscaaccasssasaaaasassaasazaaasaaaasaasasa 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: ^ouncil Members - Noes: Council Members - Absent: Council Members - Jennifer M. Perrin City Clerk 93-140 RES93140/TXTA.07A 'F 5'Q 0- i -WE3ERN STATE5 ADMIN— E' = , 33367954 61 FLEXIBLE BENEFITS PLAN Or ADMINIGTRATION._ AUEZZMrM The undersigned Employer and -WESTERN STATES ADMINISTRATORS—- ("Administrator") DMINISTRAT RS("Administrator") hereby enter into this Agreement for the administration of the Flexibla 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. Employer Reaggapibilitieg. 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 administor 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. d. 8jJvaneed F nds. 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 advanced for accounting purposes and shall identify the funds as property 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 Erployer hereby .indemnifies and holds �....-�.1�..� Tv,ocnbl •v-- —;, wi s.j --:k governmental agency or any plan participent arising out oil Wr3TIM21 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 infor ation furnished by the Employer o: Agent of the Employer and said dccuments wars prepared accurately om SENT QY:FRESN4 :11- 8-93 : e:41 :'*E5rERN STATES ADIAIN- 3336795;# 3 bused on said comply information. It is ur:0*4",ratood that WESTERN STATES ADMINISTRATORS cannot perform the discrimination 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 oZSTERN STATES ADMINISTRATORS from any cause of action by any governmental agent or an plan participant for actions t k n or omitted to be taken by tha Employer, Agents of the Employer or Acim�nistrat on 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 Staten 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, once 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 partyi 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 ev: nt the Employer fails to. advance funds for u8it8f its. wj rdrt uue, un �.6gs u ij funds 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. H2tices. All notices hereunder shall be given to the Employar 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 precedences 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 Employer ,Address By: Title WESTERN STATES ADMINISTRATORS 5130 East Clinton Way Fresno, California 93727 By. Title Plan Design: ft Flexible Benefits Plan Western States Administrators Amendment to plan document S100.00 (one time charge) Administration Costs: Premium only $ 1.00/participant Dependent Care and/or Unreimbursed Medical $ 5.0!f/particil:ant Based on usage of the current plan, Administration costs are estimated as follows: 20 participants cQ $1.00/participant $ 20.00 40 participants @ $5.00/participant $200.00 Estimated Administration cost per month $220.00 Estimated Administration cost annually $2640.00 Er-, - /O RESOLUTION NO. 93-140 saassaszazsassxsazazzz A RESOLUTION OF TH33 LODI CITY COUNCIL APPROVING CONTRACT AUTHORIZING WESTERN STATES ADMINISTRATORS TO ADKMISTER THE CITr OF LODI'S FLEXIBLE SPENDING ACCOUNT PLAN aasssasaaaasazszasssaa:szaxzxazsxaaaxacaaaxis:z:xxaasaaxzzxazaaaxasazssassaasmsssssm BE IT RESOLVED, that the Lodi City Council does hereby approve the contract authorizing Western States Administrators to administer the City of Lodi's Flexible Spending Account Plan, as show on Exhibit A attached hereto. Dated: November 17, 1993 ==s=ass sassasssass asasassasasacass asaaaaa as as as ssssssasaaa s.aa aaa ssaaaass:aa�as�aaaa I hereby certify that Resolution No. 93-140 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 17, 1993 by the following vote: Ayes: Council members - Davenport, Mann, Sieglock, Snider and Pennino (Mayor) Noes: Council Members - None Absent: Council Members - None ifer . Perrin City Clerk 93-140 RES93140/77 A.02J A FLEXIBLE BENEFITS PLAN or ADMINUTRA'L'I421_ADSEEH$NT The undersigned Employer and -WESTERN STATES ADMINISTRATORS ("Administrator") hereby enter into this Agreement for the administration of the Flexible Benefits Man 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 hsraby 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. Employer Resb W jWitieg. 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. Adminis rat;Qr Fees. The fees of the Administrator shall be determined in accordance with the attached fee schedule. Additional fees will be charged for any P:.an redesign work, whether due to changes in the law or to the desires of the Employer. 4. Advanced Funds. 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 advanced for accounting purposes ane shall identify -the funds as property 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 Flan and accepts responsibility for any losses while such funds are held by the Administrator. S. Indemnification. The Employer hersby indemnifies and holds r.•trTL'n%f C_r3VrAo I.._.. --!I. -t I.I __I. cjo.-evnmantal ngency or any plan. participant arming out o= wtOTIMN 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 comple'e inpnrmation furnished by the Employer or Agent of the Employer and said documents ware prepared accurately bas,pd on said complete information. It is understood that WESTERN -STATES ADMINISTRATOR.° snot perform the discrimf ',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 governmental agency or any plan participant for actions tak n or omitted to be taken oy the Employer, Agents of the Employer or Administration Recordkeepers, prior to the effective date of this agreement. For purposes ot this Section 5, "complete information" means all of the information necessary for Western States Administrators to prepare the appropriate reports, discrimination testa, reimbursement chocks and other records. 6. TS=ination. This Agreement shall automatically terminate following the termination of the Plan, once all benefits have been paid ane rinat 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 (I5) days' advance written notice, in the event the Employer fails to. advance funds for benefits when due, urt'699 u(:Ij funds 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 precedences 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 Employer Address By: WESTERN STATES ADMINISTRATORS 5130 East Clinton Way Franno, California 93727 BY: ^_ Title Title L- /0 Plan Design: Flexible Benefits Plan Western States Administrators Amendment to plan document S100.00 (one time charge) Administration Costs. Prenmttn only $ 1.00/participant Dependent Care and/or Unreimbursed Medical $ 5.00/participant Based on usage of the current plan, Administration costs are estimated as follows: 20 participants @ $1.00/participant $ 20.00 40 participants @ $5.00/participant $200.00 Estimated Administt ttion cost per month $220.00 Estimated Administration cost annually $2640.00