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HomeMy WebLinkAboutResolution 5887 . . . RESOLUTION 5887 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING A TWO-YEAR CONTRACT WITH SECURE BENEFIT SYSTEMS CORPORATION FOR FLEXIBLE SPENDING BENEFITS WHEREAS, the City currently receives flexible spending benefits through Tax Saver; and WHEREAS, the City wishes to terminate the contract with Tax Saver due to poor service levels; and WHEREAS, an employee committee was set up to review options for flexible spending services; and WHEREAS, Secure Benefits Systems appears to offer the product levels that are responsive to the City's needs, NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does approve a two-year contract between the City of Mounds View and Secure Benefits Systems Corporation. Adopted this 25th day of November, 2002 ATTEST: ~~ Richard Sonterre, Mayor (SEAL) c Motion by: Marty Second by: Stigney Sonterre: Aye Quick: Aye Stigney: Aye Marty: Aye Thomas: Aye . ADMINISTRATION CONTRACT This Administration Contract made and executed the 1 st day OF November 2002, by and between The City of Mounds View hereinafter referred to as "Plan Sponsor" and Secure Benefits Systems Corp. hereinafter referred to as the "Contract Administrator", RECITALS The contract Administrator is engaged in the business of performing services as Section 125 Flex Plan Consultants and Administrators. The Plan Sponsor hereby engages the services of the Contract Administrator to provide administrative services for The City of Mounds View Section 125 Plan, hereinafter referred to as "Plan." For and in consideration of the mutual covenants herein contained and the monetary consideration herein recited, it is mutually agreed as follows: . 1. Services to be performed. The Contract Administrator shall perform for the Plan Sponsor administrative services in conjunction with the operation of the Plan. The administrative services to be performed by the Contract Administrator are set forth in Exhibit A, attached hereto and by reference made a part hereof for all purposes. (a) As a part of the services to be performed by the Contract Administrator, the Contract Administrator shall maintain and operate An administrative office for such purposes and to pay all normal costs And expenses for such maintenance and operation (except as herein Set forth). (b) The Contract Administrator shall employ a sufficient staff of employees or others to provide the administrative services to be performed by the Contract Administrator hereunder. The Contract Administrator 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 Plan Sponsor; and the Administrator shall not be authorized to engage such services or incur any expense or cost therefore without the written consent of the Plan Sponsor. In the event that the Contract Administrator at the request of the Plan Sponsor engages such services, the Plan Sponsor shall be responsible for such services and the cost and expense thereof. . (c) The services to be performed by the Contract Administrator shall be Ministerial in nature and shall be performed within the framework of policies, interpretations, rules, practices and procedures made or established by the Plan Sponsor. . 2. Service Fee. The Plan Sponsor agrees to pay to the Contract Administrator for the services to be performed hereunder the following fees: (a) An initial one-time set-up fee of $300.00 payable on or before December 13, 2002. (b) A monthly administration fee of $4.00 per plan participant (using one or more of the cash accounts) per month. (c) An annual re-enrollment fee of $10.00 per plan participant using the cash accounts the previous year. This fee applies only when SBS staff assist in the re-enrollment on city premises. (d) Monthly processing fee of $10.00. The Contract Administrator shall provide a statement of the above fees to the Plan Sponsor who shall then make payment to the Contract Administrator within ten (10) days of receipt. . 3. Term. The terms of this Administration Contract shall be for a two year period, beginning January 1,2002 and ending December 31,2004 Either party shall have the right to terminate or re-negotiate the contract after the initial two year period by giving to the other party written notice of such termination or re-negotiation of the terms of the contract at least sixty (60) days in advance. In the event timely notice of intent to re-negotiate the terms of the contract is given by either party, the contract shall continue until such re- negotiation terms are agreed to in writing. In the event that such re-negotiation terms are not agreed to in writing by both parties within thirty (30) days following the expiration date of the then current contract year, this contract shall terminate upon thirty (30) days notice. The Contract Administrator will have no further responsibility or obligation hereunder upon termination of this agreement. . 4. Records and Files. The Contract Administrator shall maintain all records in conjunction with the administrative services to be performed hereunder. The confidentiality of such records shall be maintained by the Contract Administrator and the information therein shall not be divulged or disclosed or made available to persons other than the Plan Sponsor without the prior written approval of the Plan Sponsor or a court of competent jurisdiction. In the event of the termination of this contract, the Contract Administrator shall deliver to the Plan Sponsor, upon written request, at a time period mutually agreeable, but not to exceed six months . from date of termination, the information on all participants' histories for the past three years. If the participant history is requested, the Plan Sponsor will pay all costs incurred by the Contract Administrator in providing the history, including the cost of programming, computer charges. mailing costs, etc. If additional information is requested by the Plan Sponsor after this contract terminates, the Plan Sponsor will pay all costs incurred by the Contract Administrator in providing such information, including the cost of programming, computer charges, mailing costs, etc. The Contract Administrator shall be entitled to retain copies of any such records at its own expense. 5. Liabilities and Obligations. The Contract Administrator shall have no responsibility, risk, liability or obligation for the funding of the Plan. The responsibility and obligation for funding the Plan shall be solely and totally the responsibility of the persons or entities so provided in the Plan. (a) It is further understood and agreed that the Contract Administrator shall have no responsibility or obligation to take action, legal or otherwise, against any employer or employees or other person to enforce provisions of this Plan. In the event that the Plan Sponsor desires to engage the services of the Contract Administrator for such purposes, such services shall be engaged and rendered only pursuant to a separate written agreement between the parties. . (b) It is further understood and agreed that the Contract Administrator shall not be responsible or obligated for the investment of any assets or funds of the Plan. (c) The Contract Administrator shall process benefits in accordance with the Plan or policy adopted by the Plan Sponsor. The Contract Administrator shall incorporate sound business practices and be responsible for reasonable internal audits. Where an error exists the Contract Administrator shall use reasonable internal audits. Where an error exi~ts the Contract Administrator shall use reasonable efforts for recovery of any loss resulting therefrom, but will not be required to initiate legal process for any recovery. (d) It is further understood and agreed that the Contract Administrator shall not be responsible for determining the participants' eligibility to participate in the Plan and may rely on the information supplied by the Plan Sponsor in determining eligibility. . 6. Independent Contractor. It is understood and agreed that the Contract Administrator is engaged to perform services under this Agreement as an independent contractor. The Contract Administrator shall use his best efforts to implement such written instructions, if any, as to policy and procedures which may be given by the Plan Sponsor to the Contract Administrator provided that such instructions are consistent and compatible with the description of services to be performed by the Contract Administrator and do not violate or contradict any laws or regulations, including but not limited to the Employee Retirement Income Security Act of 1974, as amended. . 7. Plan Soonsor: The term "Plan Sponsor" shall be defined to include the employer or corporation sponsoring the Plan or Plan Committee or Trustees of the Trust sponsoring the Plan who serve at the time of execution of this Contract and shall also include committee members or trustees serving from time to time during the term of the Contract. The Contract Administrator shall be entitled to rely upon the actions, notice or instructions taken or given by the Plan Sponsor. 8. Assignment. The Contract Administrator shall neither assign nor delegate to any other person or entity the duties, obligations or responsibilities of the Contract without prior written approval from the Plan Sponsor. 9. Indemnification. The Contract Administrator agrees to be responsible for any acts or omissions wherein it is fully adjudged or willfully acknowledges it is guilty of want of reasonable and ordinary care, gross negligence, willful misconduct or lack of good faith. The Plan Sponsor agrees to indemnify, hold harmless and defend the Contract Administrator for any acts or omissions of the Contract Administrator not caused by gross negligence, willful misconduct or lack of good faith or want of reasonable and ordinary care. . 10. Additional Services. Any changes in the Plan, found to be compatible with existing systems and procedures and approved by the Contract Administrator, which require additional programming, reports or services will be at the expense of the Plan Sponsor. The Plan Sponsor agrees to make changes in benefits only pursuant to the Plan document, unless agreed upon by the Contract Administrator and appropriately written by amendment to this Contract. 11. Additional Agreements. This Contract may not be modified, changed or additions made, without putting the modifications, changes or additions in writing and having both parties to this Contract sign such writing. 12. Default. If any party to this Agreement shall default under any of the terms and conditions contained herein, the defaulting party shall assume and pay all costs and expenses, including reasonable attorney's fees, incurred by the other party in enforcement of the Agreement. 13. Headings. Paragraph numbers and heading have been inserted solely for convenience and reference. They shall not be construed to affect the meaning, construction or effect of this Agreement. . . 14, Sever ability. Should any part of this Agreement be declared invalid, any remaining portion shall remain in full force and effect as if this Agreement has been executed with the invalid portion eliminated. 15. The laws of the State of MN shall control the terms and conditions of this Agreement insofar as state law is applicable under the terms hereof. '. ,/,." ,." (. '...-' By " v /' -- ' ') ..' ,,'/ /" , I' Iff '-~, ' _~ \, ........... , j Plan Spo'nsor Date By Contract Administrator Date . . . EXHIBIT "A" ADMINISTRATIVE SERVICES 1. Answer all telephone and mail inquiries from the Plan Sponsor as to benefits provided to them and their employees. 2. Provide information concerning the Plan benefits and eligibility of participants based on eligibility information provided by the Plan Sponsor. 3. Receive claims and claim documents from the participants of the Plan and verify the eligibility of the participants for benefits based on eligibility information provided by the Plan Sponsor. 4. Process and update information as received from the Plan Sponsor and correspond with participants if additional information is needed. 5. Handle all claims expeditiously. 6. Process, issue and distribute reimbursement checks as per Plan Sponsor directs . starting January 1, 2003. 7. Prepare the necessary date for preparation of the IRS reports and filings. 8. Attend meetings with Plan Sponsor (trust or corporate) as necessary for proper administration of the Plan. 9. Provide the Plan Sponsor the plan instruction and eligibility rules for reporting its employees' eligibility to the Contract Administrator. .