Loading...
HomeMy WebLinkAbout2001-420ORDINANCE NO A691- 40 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE SERVICES ASSOCIATED WITH AN IRS SECTION 125 BENEFITS PLAN, PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE, AND PROVIDING AN EFFECTIVE DATE (BID 2738 —IRS SECTION 125 PLAN AWARDED TO PAYFLEX SYSTEMS USA, INC IN THE APPROXIMATE AMOUNT OF $6 00 PER EMPLOYEE PER MONTH OR $8,643 PER YEAR BASED UPON CURRENT PARTICIPANTS) WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of STATE law and City ordinances, and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the 'Bid Proposals" submitted therefore, and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items BID VENDOR AMOUNT 2738 PayFlex Systems USA, Inc $8,643/yr* $6 00/emp *Approximate cost based on current year participation SECTION II That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents SECTION III That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto, provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted SECTION IV That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized herein SECTION V That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this � day of �, 2001 ATTEST JENNIFER WALTERS, CITY SECRETARY i 2 - 16544Ctt- EULINE BROCK, MAYOR APPROVED AS TO LEGAL FORM HERBERT L P UTY, CITY ATTORNEY BY Bid 2738 STANDARD SUPPLY & SERVICE ORDINANCE 10/01 2 FLEXIBLE BENEFITS ADMINISTRATION By PayFlex Systems USA, Inc 100 Blackstone Centre Omaha, Nebraska 68131 FLEXIBLE COMPENSATION ADMINISTRATION AGREEMENT THIS AGREEMENT, effective January 1, 2002 by and between City of Denton (hereinafter called "Administrator") and PAYFLEX SYSTEMS USA, INC , a Nebraska Corporation (PFS) WHEREAS, the Administrator is serving as Plan Administrator pursuant to a flexible compensation plan document (hereinafter known as the "Plan") for certain employees and/or their dependents (the "Participants"), WHEREAS, the Administrator desires to engage PFS to provide certain administrative services for the Plan and PFS is willing to provide such services, NOW, THEREFORE, in consideration of the mutual promises and duties set forth in this agreement, the parties hereto, mtendmg to be legally bound, do agree as follows ARTICLE I - ADMINISTRATIVE SERVICES PFS will provide services as provided herein, for the administration of the Plan I I PFS shall maintain adequate and necessary records on each Participant for the proper administration of the Plan The records maintained on each Participant as provided by the Administrator, shall include, but not be limited to a Full name and address b Social Security number c Date of birth d Effective date of coverage ARTICLE H - RECORDS AND FILES 21 PFS shall maintain all records in conjunction with the administrative services to be performed hereunder All such records shall be available for inspection by the Administrator during normal business hours 22 The confidentiality of such records shall be maintained by PFS and the information therein shall not be divulged or disclosed or made available to persons other than the Administrator without the prior written approval of the Administrator or the direction of legal process u TLEAV wWOn"Woa6FMm cry of Dooton inn ARTICLE III - CLAIM SERVICES 3 1 PFS shall accept application for benefits made by plan participants on forms provided by PFS or other forms deemed acceptable to PFS, and after verification of the statements contained therein, shall determine Participant eligibility to receive benefits under the Plan 32 PFS shall conduct such verification as is reasonable to determine that the benefit claim is consistent with the terms of the Plan and will determine the amounts due and payable pursuant to the Plan 33 PFS will respond to mail and phone inquiries from plan participants 34 PFS is hereby authorized to arrange for valid payments of claims be made to participants from the plan sponsor's general flexible spending account fund up to the limit of the participant's annual pledged amount 35 Clain checks shall be made payable to the participant, his assignee, or such other person(s) designated by the participant not otherwise restricted or prohibited by the Plan 36 The Administrator shall have final authority to authorize or disallow benefit payment PFS shall assume no liability and will be held harmless by the Administrator in complying with such final authority 37 PFS will maintain current, accurate and complete records and files of all claim submissions and payments on each Participant for a period of at least six years after claim or payment ARTICLE IV - CHARGES In consideration of the services to be provided in this agreement, Administrator agrees to pay PayFlex Systems a fee as follows (A) $6 00 per month for each participating employee (Flex Convenience ID Card) that establishes one or more flexible spending account(s) or a total of $75 00 per month, which ever is greater (B) A payment equal to $1 00 multiplied by the total number of eligible employees for set- up/maintenance Monthly administration fees are payable on or before the 15th of the following month The set-up fee is payable on or before the 15th of the month following the month in which the plan becomes effective o wLEMVw Wo�xeeim of of union mo The annual maintenance fee is due each year and payable on or before the 15th of the month coincident with the first annual plan anniversary and each anniversary thereafter The annual maintenance fee is calculated as follows $1 00 multiplied by the total number of eligible employees ARTICLE V - AM ISTRATOWS RESPONSIBILITIES 5 1 Administrator shall provide PFS with the necessary enrollment records of the participants as of the effective date of this agreement Thereafter, the Admustrator shall notify PFS of all changes by reason of termination, changes or addition of new Participants, and changes in the Plan. PFS shall not be liable for any action it has taken on behalf of the participant prior to its receipt of information that would have caused a different decision 52 The Administrator shall collect any contributions required by the Plan from the participants 53 Except items prepared by PFS, Administrator shall provide to PFS all materials, documents and information as may be necessary for the operation of the Plan or to satisfy the requirements of governing law 54 The Plan Administrator shall be responsible for satisfying any and all reporting and disclosure requirements unposed on the Plan under applicable law PFS will assist with such requirements, and provide the documents and materials specifically set forth in this agreement 55 Adminigrator shall be responsible for any delay in the performance of the administrative and claims service caused by the failure of Administrator to promptly furnish required information to PFS ARTICLE VI - DURATION OF THIS AGREEMENT This agreement shall have an initial term of 3 year(s) from the effective date of this agreement and shall automatically be renewed for the period of the next succeeding twelve (12) consecutive months, until terminated in writing by either party giving forty-five (45) days notice prior to automatic renewal The fees stated in Article IV are subject to negotiation on the anniversary date of the contract after the initial three year period, providing PFS has given forty-five (45) days notice prior to the anniversary date of intent to adjust the fees The new fees and contract would then be in force for one year from the effective date a �FLE%�WMWORDNOp89M1IDMC�ryof fhmonmo ARTICLE VII - TERMINATION OF THIS AGREEMENT 71 Either party shall have the right to terminate or renegotiate the contract after the initial three year period on each effective anniversary renewal date by giving to the other party written notice of such termination or renegotiation of the terms of the agreement at least forty-five (45) days prior to the anniversary date In the event timely notice of intent to renegotiate the terms of the contract is given by either party, the agreement shall continue until such renegotiation terms are agreed to in writing In the event that such renegotiation terms are not agreed to in writing by both parties within thirty (30) days following the expiration date of the then current contract, this agreement shall then terminate upon forty-five (45) days notice PFS shall have no firther responsibility or obligation hereunder upon termination of this agreement 72 This agreement shall automatically terminate in the event of a. The Administrator's failure to make required payments within thirty (30) days of the due date, b. Bankruptcy or insolvency of the Administrator, The enactment of any law or regulation which makes illegal the continuance of this agreement 73 In the event of termination of this agreement, PFS shall complete the processing of all requests for claim payment under the Plan which were received by PFS and are due and payable prior to the termination of this agreement, but PFS shall have no obligation To complete the processing of any such claim if the Administrator has failed to provide fiends for its payment, b. To process requests for claim payments presented after the termination date 74 PFS shall deliver to the Administrator, upon written request, at a tune period mutually agreeable, but not to exceed six months from the date of teritnation, the information on all Participants' histories for the past three years If a Participant history is requested, the Administrator will pay all actual costs incurred by PFS in providing the history, including the cost of programming, computer charges, mailing costs, etc If additional information is requested by the Administrator after this contract terminates, the Administrator will pay all costs incurred by PFS in providing such information, including the cost of programming, computer charges, mailing costs, etc PFS shall be entitled to retain copies of any such records at its own expense 75 Notwithstanding anything contained herein to the contrary, the Administrator may terminate this agreement at any time in the event PFS is in default by giving PFS 60 days written notice of termination during which PFS will have an opportunity to cure In such event PFS shall be paid all momes due for work satisfactory completed up to date of termination 0 NL9Mww0.roxrngo986 WLM ofnamun an ARTICLE VIII - MISCELLANEOUS PROVISIONS 81 In no instance shall PFS be deemed as the "Administrator" of the Plan, as defined in Section 3(16) of the Employee Retirement Income Security Act of 1974 (ERISA), or for purposes of any applicable state or local law 82 PFS shall not advance its corporate funds for the payment of claims under the Plan PFS shall not be considered the insurer or underwriter of the liability of the Admanstrator to provide benefits for the Participants 83 PFS shall have no responsibility, risk, liability, or obligation for funding of the Plan The responsibility and obligation for fiinding the Plan shall be solely and totally the responsibility of the persons or entities so provided in the Plan 84 Under no circumstances shall PFS be considered the "named fiduciary" under the Plan under ERISA 85 PFS will not provide or be responsible for the expense and cost of legal counsel, actuaries, certified public accountants, investment counselors, investment analysts or similar type services performed for the Administrator, and PFS shall not be authorized to engage such services or incur any expense or cost therefor without the written consent of the Administrator In the event that such services are engaged by PFS at the request of the Administrator, the Administrator shall be responsible for such services and the cost and expense thereof 86 It is further understood and agreed that PFS shall not be responsible for determining the participant's eligibility to participate in the Plan and may rely on the information supplied by the Administrator in determining eligibility 87 To the extent permitted by law, Administrator agrees to indemnify PFS and PFS agrees to indemnify Administrator against damages, losses and expense, including court costs and attorneys fees, actually and reasonably incurred by it in connection with the defense of any action, suit or proceeding in winch it is made or threatened to be made a party by reason of its negligent acts or omissions arising out of the performance of its duties under this agreement 88 Counterparts This agreement may be executed in any number of counterparts, each of winch shall be deemed an original, and said counterparts shall constitute but one and the same inshument 0*MkWQ OgOU "EWMCp ofp ox&c IN TNESS REOF the Administrator and PayFlex have caused this agreement to be executed this day o , 20_ _ CITY OF DENTON, TEXAS By Attest Approved as to le by Ed S d , Dep By Romme, IAec�or of Human Resources PAYFLEX SYSTEMS USA, By Name Mar ennuston Huber President The Director of Human Resources for the City of Denton, Texas is hereby authorized to carry out the terms of this agreement on behalf of the City of Denton, Texas o TLEMw WOxD UE1. WIcI f�..m.