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2001-420 O On ANCE NO AN Om ^NCE ACCEPTr O COMPETITIVE THE SERVICES ASSOCIATED ~TH AN IRS SECTION 125 BENEFITS PLAN, PROVID~G FOR THE E~ENDI~ OF F~DS THE~FO~, AND PROVID~G AN EFFECTIVE DATE (BID 2738-IRS SECTION 125 PLAN AWAKED TO PAYFLEX SYSTEMS USA, ~C IN THE APPROXIMATE AMO~T OF $6 00 PER EMPLOYEE PER MONTH OR $8,643 PER YEAR BASED UPON CU~NT PARTICIPANTS) ~E~AS, ~e C~ h~ sohctted, received ~d tabulated competitive b~ds for ~e p~ch~e of necess~ match&s, eqmpmem, supphes or se~xces ~n ~cord~ce m~ ~e proced~s of STATE law ~d Ciw ord~ces, ~d ~E~AS, ~e C1W M~ager or a denigrated employ~ ~ ~wewed ~d mco~ended ~t · e hereto described b~ds ~e the lowest msponsxble bxds for the materials, eqmpmem, supphes or settees ~ sho~ m the "Bid Proposes" submlaed therefore, ~d ~E~AS, ~e CxW Co~cxl has prowded in ~e City Budget for ~e appropriation of~ds m be used for ~e p~c~e of~e materials, eqmpment, supphes or settees approved ~d accepted hereto, NOW, THE~FO~, THE CO~CIL OF THE CITY OF DENTON HE.BY O~A~S SEC~ON I That ~e nmbemd items m ~e followmg nmbered bids for materials, equipment, supphes, or se~mes, shorn m the "Bid Proposals" on file m the office of ~e Cl~ P~c~xng Agent, ~ hereby accepted ~d approved ~ bemg ~e lowest responsible bids for such items BID VENDOR AMO~T 2738 PayFlex Systems USA, Inc $8,643/yr* $6 00/emp · Approximate cost b~ed on c~ent ye~ p~mpatton SECTION II TMt by ~e accep~ce ~d approv~ of the above nmbered ~tems of ~e subm~Red b~ds, the C~ accepts the offer of the persons subm~mg ~e b~ds for such ~tems ~d a~ees to p~chase ~e maten~s, eqmpment, supphes or se~mes m accor~ce w~ ~e terns, specfficatlons, smd~ds, qu~tmes ~d for ~e specffied sins conmtned ~n the Btd Inwmt~ons, B~d Proposals, ~d related docments S~CTION III That should the C~ ~d persons subm~mng approved ~d ~cept~ ~tems ~d of~e submRed b~ds ~sh to enter into a fom~ ~en agreement as a result of~e ~cep~ce, approve, ~d aw~dmg of ~e b~ds, ~e C~ M~ger or h~s designated representative ~s he.by authon~d to execute ~e ~Ren con~t w~ch sh~l be attached hereto, prowded that ~e ~en con~t ~s m ~eord~ce wtth ~e terns, conditions, specfficatmns, st~d~ds, qu~tmes ~d specffied sins con. ned m ~e Bid Proposal ~d related documents hereto approved ~d accepted SECTION IV That by the acceptance and approval of the above numbered items of the submitted b~ds, the City Council hereby authorizes the expenditure of funds therefor in the mount and ~n accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized here~n SECTION V That this ordinance shall become effective lmme&ately upon its passage and approval PASSED AND APPROVEDthls 3~;~ dayof ~)~/P'b~2~(.~ ,2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HE~Y ATTORNEY BY Bid 2738 STANDARD SUPPLY & SERVICE ORDINANCE 10/01 2 Attachment 1 FLEXIBLE BENEFITS ADMINISTRATION By PayFlex Systems USA, In¢ 100 Blaekstone Centre Omaha, Nebraska 68131 FLEXIBLE COMPENSATION ADMINISTRATION AGREEMENT THIS AGREEMENT, effeet~ve January 1, 2002 by and between C~ty of Denton (hereinafter called "Admnnstrator") and PAYFLEX SYSTEMS USA, 1NC, a Nebraska Corporat,on (PFS) WHEREAS, the Admmastrator ts serving as Plan Admnustrator pursuant to a fleyable compensat,on plan document (hereinafter known as the "Plan") for certain employees and/or their dependents (the "Participants"), WHEREAS, the Admmastrator desires to engage PFS to provide certain admmastrat~ve serwces for the Plan and PFS ts wflhng to prowde such serv,ces, NOW, THEREFORE, ua consderatxon of the mutual prormses and duties set forth in tins agreement, the pames hereto, intending to be legally bound, do agree as follows ARTICLE I - ADMINISTRATIVE SERVICES PFS will pmvde services as provided hereto, for the admlmstrat,on of the Plan 1 1 PFS shall maintain adequate and necessary records on each Part,clpant for the proper admmastrat~on of the Plan The records mamtatned on each Part~c,pant as proxaded by the Admausttamr, shall include, but not be hrmted to a Full name and address b Soc~ Security number c Date ofbmh d Effective date of coverage ARTICLE 1I - RECORDS AND FILES 2 1 PFS shall maintain all records in conJunCt,on w~th the adunmstrat,ve sermces to be performed hereunder All such records shall be available for respect,on by the Adrmmstrator during normal business hours 2 2 The confidenttahty of such records shall be maintained by PFS and the reformat,on thereto shall not be divulged or d~closed or made available to persons other than the Admuustmtor without the prior written approval of the Admlmstmtor or the dmect~on of legal process ARTICLE m - CLAIM SERVICES 3 1 PFS shall accept apphcatton for benefits made by plan partm~pants on forms prowded by PFS or other forms deemed acceptable to PFS, and at~er verification of the statements contained thereto, shall determine Partlctpant el~b~hty to receive benefits under the Plan 3 2 PFS shall conduct such verrlicat~on as ~s reasonable to determine that the benefit claun ts cons~ent vath the terms of the Plan and will determine the amounts due and payable pursuant to the Plan 3 3 PFS wdl respond to mad and phone mqumes from plan parttc~pants 3 4 PFS ts hereby authorized to arrange for vahd paymems of claLms be made to partm~pants from the plan sponsor's general flexible spending account fund up to the hrmt of the participant's annual pledged amount 3 5 Clann checks shall be made payable to the pamc~pant, l~s asmgnee, or such other person(s) demgnated by the participant not otherwtse resmcted or prolub~ted by the Plan 3 6 The A~or shall have final authority to authorize or dtsallow benefit payment PFS shall assume no hab~hty and wdl be held harmless by the Admmastrator m complying w~th such final author~y 3 7 PFS w~l maintain current, accurate and complete records and files of all claun subrmsmons and payments on each Partmtpant for a period of at least s~x years after clatm or payment ARTICLE IV - CHARGES In cons~deratton of the sermces to be prowded aa th~ agreement, Admmastrator agrees to pay PayFlex Systems a fee as follows (A) $6 00 per month for each partlmpatmg employee (Flex Convemence Card) that estabhshes one or more flexible spendaag account(s) or a total of $75 00 per month, whteh ever ts greater (B) A payment equal to $1 00 mult~phed by the total number of ehg~ble employees for set- up/maintenance Monthly admmlstraUon fees are payable on or before the 15th of the following month The set-up fee ts payable on or before the 15th of the month following the month aa which the plan becomes effective The annual maintenance fee ~s due each year and payable on or before the 15th of the month coincident uath the first annual plan anmversary and each anmversary thereafter The annual maintenance fee is calculatexl as follows $1 00 multiphed by the total number of ehglble employees ARTICLE V - ADMINISTRATOR'S RESPONSIBILITIES 5 1 Adm]mstrator shall proxade PFS wah the necessary enrollment records of the participants as of the effective date of tins agreement Thereafter, the Adrnanstrator shall notify PFS of all changes by reason of termination, changes or addition of new Participants, and changes tn the Plan~ PFS shall not be hable for any action it has taken on behalf of the participant prior to its receipt of reformation that would have caused a drfferent decision 5 2 The Adrmrastrator shall collect any contributions reqmred by the Plan from the participants 5 3 Except Items prepared by PFS, Adrmmstrator shall proxade to PFS all materials, documents and reformation as may he necessary for the operation of the Plan or to satisfy the rcqmrcments of governing law 5 4 The Plan Admnnstrator shall be responsible for satisl~,ang any and all reporting and disclosure reqtnrements nnposed on the Plan under apphcable law PFS wdl ass~ w~th such reqmrements, and provide the docun~nts and materials specifically set forth tn ttas agreement 5 5 A~tor shall be responsible for any delay m the performance of the adrmmstratlve and elam~ ~ caused by the failure of Adnmastrator to promptly f~ush reqmred reformation to PFS ARTICLE VI - DURATION OF THIS AGRF. FMENT Tins agreemem shall have an matad term of 3 year(s) from the effective date ofth~ agreement and shall automatically be renewed for the period of the next suceeedmg twelve (12) consecutive months, untd terminated m writing by either party g~vmg forty-five (45) days notice prior to automatic renewal The fees stated an Article IV are subject to negotmtlon on the anmversary date of the contract after the tmtml three year period, pmwchng PFS has bnven forty-five (45) days notice prior to the anmversary date of intent to adjust the fees The new fees and contract would then he m force for one year fi'om the effective date ARTICLE VII - TERMINATION OF THIS AGREEIVIENT 7 1 E~ther party shall have the right to terminate or renegot~ate the contract alter the ~tml three year ponod on each effective anmversary renewal date by g~vmg to the other party written notxce of such termmaUon or renegot~at~on of the terms of the agreement at least forty-five (45) days prior to the anmversary date In the event tL, nely noUce of intent to renegot~ate the terms of the contract ~s gxven by eaher party, the agreement shall continue until such renegoUat~on terms are agreed to m wnUng In the event that such renegouauon terms are not agreed to m writing by both part,es w~tban thwty (30) days following the exp~rauon date of the then current contract, tbas agreement shall then terminate upon forty-five (45) days not,ce PFS shall have no further respons~hty or obhgatxon hereunder upon termination of thts agreement 7 2 Tbas agreemem shall automatically terminate m the event of The Admmb'trator's failure to make reqmred payments w~thm th~ (30) days of the due date, b. Bankruptcy or insolvency of the Admm~strator, c The enactment of any law or regulation which makes illegal the continuance of th~ agreement 7 3 In the evem of termination of tbas agreement, PFS shall complete the processing of all requests for claun payment under the Plan wbach were received by PFS and are due and payable prior to the termination oftl'as agreement, but PFS shall have no obhgat~on a To complete the processing of any such dawn ff the Adrmmstrator has failed to provide funds for ~ts payment, b. To process requests for elmm payments presented atter the termination date 7 4 PFS shall dehver to the Adrnmastrator, upon written request, at a tnne period mutually agreeable, but not to exceed sm months fi.om the date of termination, the nfformaUon on all Partac~pants' h~tones for the past three years If a Part:c~pant htstory ~s requested, the Admmmtrator will pay all actual costs recurred by PFS m prowchng the history, mcludmg the cost of programming, computer charges, mathng costs, ere If additional mfonnat~on is requested by the Admm~ator after this contract terminates, the Adrmmstrator wall pay all costs recurred by PFS m prowdmg such nfformat~on, including the cost of progranmm~, computer charges, madm4; costs, ete PFS shall he enUtled to retain cop~es of any such records at ~ts own expense 7 5 Notvo~ anyflung contained hereto to the contrary, the Administrator may terminate thru agreement at any Ume m the event PFS ~s m default by g~vmg PFS 60 days written not~ee of termination during which PFS will have an opportumty to cure In such event PFS shall he pagt all momes due for work satisfactory completed up to date ofterrmnat~on ARTICLE VIII- MISCELLANEOUS PROVISIONS 8 1 In no mstanee shall PFS be deemed as the "Admmmtrator" of the Plan, as defined tn Section 3(16) of the Employee Rettrement Income Security Act of 1974 (ERISA), or for purposes of any appheable state or local law 82 PFS shall not advance its corporate funds for the payment of clauns under the Plan PFS shall not be considered the insurer or underwriter of the llabthty of the Admnustrator to proxade benefits for the Partmpants 8 3 PFS shall have no respons~bflaty, ink, habthty, or obhgaUon for funding of the Plan The responslbthty and obhgat~on for funding the Plan shall be solely and totally the respons~hty of the pexsons or ent~t~es so prowded m the Plan 8 4 Under no circumstances shall PFS be com~dered the "named flducmry" under the Plan under ERISA 85 PFS will not proxade or be responsible for the expense and cost of legal counsel, actuaries, certified pubhe accountants, investment counselors, investment analysts or snnflar type services performed for the Admamstmtor, and PFS shall not be authorized to engage such services or recur any expense or cost therefor without the written consent of the Admm~trator In the event that such services are engaged by PFS at the request of the Admm~trator, the Admmastrator shall be responsible for such serwces and the cost and expense thereof 8 6 It ~s further understood and agreed that PFS shall not be responsible for determining the pamc~pant's ehg~bd~ty to parOc~pate m the Plan and may rely on the mformaUon supphed by the Administrator tn detemaam~ ehglb~hty 8 7 To the extent penmtted by law, Admaustrator agrees to mdemnrfy PFS and PFS agrees to mdemmfy Administrator against damages, losses and expense, including court costs and attorneys fees, actually and reasonably recurred by it m connection w~th the defense of any action, suit or proceeding m wtuch It Is made or threatened to be made a party by reason of xts neghgent acts or onusslons arising out of the performance of~ts duUes under tbas agreement 8 8 Counterparts Tlus agreement may be executed m any number of counterparts, each ofwbach shall be deemed an original, and said counterparts shall consOtute but one and the same instrument IN X~i ~TNESS WI-I~REOFt the Admmrstrator and PayFlex have caused tins agreement to be execmed th~ ~ d~y o~, 20D_/_ CITY OF DENTON, TEXAS PAYFLEX SYSTEMS USA, By ~A~~ By iVhke Condu~ C~t~ Iq ~ger Name Attest ~]/b~/~ ~-~'/ Premdem Approwd Ed S d Dep ~ mey By Car4a Romme, l~ec't'~r of Human Resources The Dm~ctor of Human Resources for the C~ty of Denton, Texas m hereby authorLzed to carry out the terms ofttus agreement on behalf of the City of Denton, Texas