1995-076-Execute An Agreement With Hicks & Company For Flexible Spending Account Administration ServicesRESOLUTION 1995 - 76
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH HICKS & COMPANY
FOR FLEXIBLE SPENDING ACCOUNT ADMINISTRATION SERVICES
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into an agreement (attached draft
agreement) with Hicks & Company for Flexible Spending Account Administration Services, and
that the Town Manager is authorized, and is hereby directed, to execute said agreement in the
name and on behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 19th day of June, 1995 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Linda Lubeck,
Mayor Patrick O'Laughlin.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED: )o
MAYOR OF THE T LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOATOS
LOS GATOS, CALIFORNIA
CAFETERIA PLAN SERVICE AGREEMENT
HICKS & COMPANY, hereafter known as HICKS, hereby agrees to provide
the services of Cafeteria Plan (Flexible Benefit Plan) herein known
as PLAN, administration services for and on the behalf of ABC
COMPANY here after known as the Employer, as shown below, organized
under the laws of the State of California.
Employer agrees HICKS will provide contract administrative services
including:
Administrative Services to be Provided bV HICKS & COMPANY
1) Preparation of Summary Plan Descriptions to be provided for the
employees of the Employer.
2) Provide participant election forms to be used during the
enrollment process.
3) Process initial enrollment forms and revocation forms to
initiate the administration function.
4) Provide discrimination reports.
5) Provide forms to the Employer for use by the Employer in
communicating participant termination and changes of family
status.
6) Provide monthly Employer statements of participation by plan
by participant.
7) Preparation and implementation of Plan Documents which
Employer understands will not be submitted to the IRS for a
determination letter.
8) Provide annual preparation of form 5500. The first plan year
ends on December 31st, and the return is due on July 31st.
9) Provide participant election forms at the end of each year
for use in making elections for the following year.
10) Periodic preparation of the financial records and reports
benefits for the purpose of plan administration. The
accuracy of this information is the responsibility of the
Employer who agrees to indemnify and hold HICKS harmless
from any liability and expense in connection with disputes
arising from any type of inaccurate information.
11) HICKS will furnish to the Employer, according to its records,
as part of each month's account, a detailed statement showing
all costs and the total amount due for services.
Responsibilities of the Employer
1) Report participant terminations and changes of family status
to Administrative Firm.
2) Reconciliation of payroll amount redirected to the Cafeteria
plan based on reports provided each month by Administrative
Firm.
3) Employer will deduct from the earnings of participating
employees, the amounts shown on the Election Forms,
(Elections) signed by the employees.
4) The Employer agrees to indemnify and hold HICKS harmless from
overdraft charges or unpaid claims arriving from insufficient
funds based on the Employer's failure to make the correct
deposits.
5) Distribution of checks and participant statements of account
to Company employees.
6) Secure legal review of the Cafeteria Plan Document and
Summary Plan Description from Company's legal counsel if
desired.
7) Initiate any action necessary in the event plan becomes
discriminatory.
8) Employer agrees that the above services will be rendered by
HICKS on regular workday(s) during regular working hours and
in such areas as HICKS shall choose.
9) Employer hereby agrees to notify in writing prior to monthly
reimbursements, of any discrepancies or changes in the amounts
withheld by Employer from the wages of the participants.
Employer will also notify HICKS if Employer has reason to
believe that any reimbursement request of ELECTIONS are in any
way invalid, erroneous or fraudulent.
Fees and Terms of Payment
At each month end, HICKS will submit a statement showing the amount
of fees for that month. The Company will pay HICKS the amount
within 30 days of receipt of the statement.
Employer shall bear any and all costs of the account including
imprinting checks which conform to the requirements of HICKS and
any bank charges or costs which may be incurred.
The Administrative fees quoted for the plan are as follows:
Plan Installation: $
Monthly Administration $
2
The fee schedule as quoted is in effect for twelve (12)
months from the date of this agreement. HICKS will notify Employer
of any fee schedule changes within sixty (60) days prior to the
anniversary date of this agreement.
Additional fees will be incurred if the plan is modified. Plan
modifications include but are not limited to changes in the
frequency of reimbursements, benefit choices or design features.
Reports and Data
All reports and data remain the property of the Company. HICKS
will provide the Company all data, upon request, in the electronic
or printed format used by HICKS in its administration procedures.
Reimbursements and payments will be based on vouchers and other
documentation submitted by the employees and transmittals and other
documentation which the Employer may provide.
Terms of this Agreement
This agreement will be for a period of twelve (12) months
commencing upon the date shown below and shall automatically renew
for each succeeding twelve (12) month period until it is terminated
by either party in writing at least sixty (60) days prior to the
anniversary date hereof. In the event either party terminates this
agreement, the Employer shall remit to HICKS any amounts due for
the administrative services rendered to the Employer along with any
charges for the final administration to terminate the plan. HICKS
will assume no responsibility for damages which may occur should
Employer elect to terminate the agreement and not elect to have
HICKS complete the final administration.
This agreement shall be governed by the laws of the State of
California.
Hicks & Company and ABC COMPANY have executed this agreement as of
the date below.
ABC COMPANY
by:
Name & Title Date
HICKS & COMPANY
by:
Tom K. Hicks, Attorney at Law Date