HomeMy WebLinkAboutContract 25702 aF}
CITY SECRETARY o� 13170
CONTRACT NO. -
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement (the "Agreement" ) is made by
and between Comsal, Inc . , dba TaxSaver Plan ( "TaxSaver Plan" ) and
the City of Fort Worth (the "City" ) effective as of November 21,
1999 .
RECITALS
WHEREAS, TaxSaver Plan provides administrative services with
respect to cafeteria and flexible spending account plans intended
to qualify under Section 125 of the Internal Revenue Code of 1986,
as amended (the "Code") ; and
WHEREAS, the City has adopted the flexible benefit plan (the
"Plan" ) ; and
WHEREAS, the City desires to hire TaxSaver Plan to provide
administrative services with respect to certain benefits under the
Plan and TaxSaver Plan desires to perform such services for the
City,
NOW, THEREFORE, TaxSaver Plan and the City agree as follows :
I . Administrative Services :
A. TaxSaver Plan shall :
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1 . Rev_a-iV the City' s current Section 125 Cafeteria Plan Document
and draft amendments required, if any, to revise the Plan to
conform to appropriate Internal Revenue Codes, Regulations
and Rules .
2 . Work directly with the City' s Director, Risk Management
Department and City' s consultant in the implementation of the
Plan.
3 . Process reimbursement requests made under the Plan to follow
all legal requirements of Section 125 of the Internal Revenue
Code and any other federal or statutory requirements and the
administrative procedures and practices established by the
City and agreed upon by TaxSaver Plan.
4 . Pay benefits to Participants in the Plan with respect to such
reimbursement requests, produce reports to reflect the status
of their accounts and provide reimbursement forms for
participants to make additional claims . TaxSaver Plan shall
pay such benefits from a checking account established by the
City and funded by the City and shall have no obligation to
pay benefits under the Plan if adequate unda- for
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benefit payments are not provided by the City.
5 . Provide employees with consultation and information concering
their accounts and/or Section 125 of the Internal Revenue
Code. A local or toll-free telephone number will be
maintained form CST 8 : 30am to 5 :30pm. ,,
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6 . Assist the City with the resolution on any employee problems
that result from the Plan.
7 . Prepare, print and distribute all needed forms,
communications materials or other documents necessary to the
adoption, implementation and operation of the Plan and to
assist the City in communicating with City Employees and
educating them about the concept and operation of the Plan.
8 . Submit to the City each reimbursement period an accounting of
payments made by TaxSaver Plan under this Agreement and
monthly reconciliation reports of contributions to and
distributions by the City for each participant .
9 . Prepare reports required to be filed with the Internal
Revenue Service or the Department of Labor with respect to
the Plan. TaxSaver Plan shall submit such reports to the
City for filing.
10 . Perform compliance review for each payroll deduction that
qualifies under Section 125 of the Internal revenue Code and
notify the City of recommended action (s) necessary to remedy
any non-compliant deductions .
11 . Assist the City in performing nondiscrimination test to
determine compliance with Section 125 of the Internal Revenue
Code as well as Section 129 .
B. The City shall :
1 . Furnish TaxSaver Plan with a copy of the Plan, including any
amendments thereto.
2 . Provide TaxSaver Plan with guidance in determining
administrative procedures and practices to be followed with
respect to reimbursement requests .
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3 . Provide TaxSaver Plan with guidance when necessary to
determine the eligibility of Participants in the Plan to
receive benefits .
4 . Establish a checking account for paying benefits under the
Plan. The City shall fund the account so that there are
sufficient funds to cover reimbursements for benefits under
the Plan.
S . Provide TaxSaver Plan with assistance, if requested, in the
preparation of any reports required to be filed with the
Internal Revenue Service or Department of Labor.
6 . Provide TaxSaver Plan accurate information in a regular and
timely manner to TaxSaver Plan so that TaxSaver Plan may
process reimbursement requests under the Plan. TaxSaver Plan
shall be entitled to rely entirely upon any such information
provided by the City, and to the extent permitted by law, be
fully indemnified by the City for any action TaxSaver Plan
takes in good faith and in reliance on such information.
7 . Provide TaxSaver Plan with a list of the City' s Key Employees
as defined in Section 416 (i) (1) of the Internal Revenue Code
of 1986 , as amended (if Taxsaver Plan is asked to perform
certain discrimination tests) .
II . Fees
The City shall pay administrative fees to TaxSaver Plan for
services rendered during the term of this Agreement . The fees to
be paid by the City are set forth in the attached Schedule of Fees;
the Schedule of Fees is subject to annual review in regard to
change . TaxSaver Plan will quarantee the fees quoted originally
for a period of two (2) years . TaxSaver Plan shall notify the City
sixty (60) days prior to the effective date of any change in the
Schedule of Fees . TaxSaver Plan shall bill the City on a monthly
basis and the City shall promptly pay all such bills within thirty
(30) days to TaxSaver Plan' s office in Dallas, Texas .
III . Term
The term of this Agreement shall commence on the date first written
above and shall continue until it is terminated by a written
"Notice of Terminiation" specifying the extent to which performance
of work under the contract is terminated and the date upon which
which services will be terminated. Notwithstanding the preceding
sentence, this Agreement shall immediately terminate upon the
bankruptcy or insolvency of the City, and TaxSaver an shall halwe
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no further obligation to process or pay benefits under the
Agreement . In the event of a breach of the Agreement by either
party, the other party may immediately terminate the Agreement upon
written notice to the other party. TaxSaver Plan shall be under no
obligation to pay benefits under this Agreement if the City does
not make adequate funds available for the payment of such benefits .
In the event of termination of the Agreement, the City shall pay
fees to TaxSaver Plan for all services rendered through the date of
termination.
IV. Liability and Indemnity
TaxSaver Plan does not insure nor underwrite the liability of the
City under the Plan and shall not be liable for any punitive or
consequential damage arising in connection with this Agreement, the
Plan or any benefit plans adopted in connection with the Plan. The
City retains the ultimate responsibility for all reimbursements
under the Plan and all expenses incident to the Plan. To the
extent permitted by law, the City agrees to indemnify TaxSaver
Plan, its officers, directors, employees and their heirs,
executors, successors and assigns and hold same harmless from and
against any and all losses, damages, settlements, judgments,
penalties, liabilities, costs, charges, or expenses (including
attorney' s fees) , at any time arising out of or incurred in
connection with the defense of any meritorious or nonmeritorious
claim, demand, action, suit (including appeal) or proceeding
relating to this Agreement, the Plan or any benefit plans adopted
in connection with the Plan unless same arises out of the gross
negligence or willful misconduct of TaxSaver Plan. The City, and
not TaxSaver Plan, shall be responsible for any withholding or FICA
taxes, insurance premiums such as worker' s compensation, or any
other amounts payable with respect to payments made pursuant to
this Agreement, the Plan or the benefit plans.
V. Payment of Reimbursement Checks
TaxSaver Plan shall issue checks to Participants for reimbursement
requests submitted to the City and delivered to TaxSaver Plan
pursuant to the Plan. The reimbursement checks will be mailed
directly to Participants, unless otherwise agreed by the parties .
The City shall maintain a checking account from which TaxSaver Plan
will issue checks to Participants . TaxSaver Plan shall notify the
City regarding the dollar amount of such checks as they are issued
to assist the City in determining that the account is adequately
funded. The City agrees to keep adequate funds in the account .
TaxSaver Plan shall process and pay reimbursement requests as soon
as practicable, but shall in no way be responsible for any delay
due to computer failure or acts of God.
VI . Miscellaneous
A. TaxSaver Plan agrees, during the term of this
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anytime after termination, that it shall not disclose to anyone
unless specifically authorized by the City, any confidential
business or personnel data with respect to the City, employees of
the City, or Participants, except as necessary to comply with this
Agreement or applicable law.
B. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, executors,
administrators, legal representatives, successors, and assigns .
C. This Agreement shall be construed under and in accordance with
applicable federal law and, to the extent not governed by federal
law, the laws of the State of Texas .
D. In the event that one or more provisions of this Agreement
shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision hereof, and
this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision had never been contained herein.
E. The City acknowledges that it has sought independent tax and
legal advice to the extent necessary and that TaxSaver Plan is not
responsible for the tax and legal aspects of this Agreement, the
Plan and the benefit plans .
F. This Agreement and TaxSaver Plan' s response to RFP 99-0238,
Which is incorporated herein by reference, constitutes the entire
agreement between the parties relating to the subject matter
hereof . No other terms or conditions have been agreed upon by the
parties except as set forth herein. Any change, modification or
amendment of this Agreement shall be in writing and signed by both
parties. In the event of a conflict between thus Agreement and
TaxSaver Plan' s response to RFP 99-0238, the RFP response will
prevail .
A-Fetu t tD FDA G,r4
By: ATTESTED BY
Title: n City Attorney
Date : 3/1412-.,
Comsa ,,� -, dba
The City of Fort Worth Tax ve a
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BY: By:
Title: f City Manager Title : President
Date : Date : i
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Contract Authorization
FEES FOR SERVICES
Plan Set Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1500 . 00
Written Communication Materials . . . . . . . . . . . . $4500 . 00
Enrollment Meetings . . . . . . . . . . . . . . . . . . . . . . . . $ 500 . 00 per day
plus expenses (optional)
Monthly Administration . . . . . . . . . . . . . . . . . . . . $ 4 . 50 per participant
(Medical / Dependent Care Flexible Spending)
Monthly Administration . . . . . . . . . . . . . . . . . . . . $ 2 . 50 per participant
(Adoption Assistance Flexible Spending)
Monthly Administration . . . . . . . . . . . . . . . . . . . . $ . 50 per participant
(Premium Conversion)
ANY COURIER CHARGES INCURRED FLOW THROUGH TO THE CLIENT.
IF YOU SHOULD TERMINATE OUR SERVICES, THERE WILL BE A CHARGE FOR
A RUNOFF PERIOD, SHOULD YOU CHOOSE ONE. THIS CHARGE WOULD BE
NEGOTIATED AT THE TIME OF TERMINATION.
City of Fort Worth, Texas
"agor And Council COMI"unication
DATE REFERENCE NUMBER LOG NAME T AGE
11/23/99 **C-17759 15COMSAL 1 of 2
SUBJECT AWARD OF CONTRACT TO COMSAL, INC. DBA TAX SAVER PLAN FOR
ADMINISTRATION OF THE CITY OF FORT WORTH'S FLEXIBLE BENEFIT PLAN
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to enter into a contract with
Comsal, Inc., dba Tax Saver Plan, for administration of the City of Fort Worth's Flexible Benefit Plan for
the calendar 2000 tax year for an estimated cost of$85,000.
DISCUSSION:
On August 25, 1999, the City of Fort Worth issued Request for Proposal 99-0238 soliciting proposals
for services related to administration of the City's Flexible Benefit Plan (Plan) for the calendar 2000 tax
year. Key services solicited included:
• Plan participant communication and education prior to election;
• Development and administration of employee election materials;
• Claim reimbursement pursuant to IRS statutes, rules, procedures and guidelines as they may
change from time to time;
• Regular accounting reports to Plan participants and the City's Risk Management Department;
and
• Timely preparation and submittal of any and all reports necessary to be filed with any regulatory
body
The proposal was advertised in the Commercial Recorder on August 25 and September 1, 1999. On
September 23, 1999, seven responsive proposals were opened. A staff committee with representatives
from the Human Resources Department, the Finance Department, and the Risk Management
Department evaluated the proposals with the assistance of the City's consultant for employee benefits,
Effective Plan Management, Inc.
Based on the proposal evaluation criteria which were cost of administration, qualifications of proposer,
comprehensiveness of services and terms of agreement, and all solicited services under one
Administrative Service Agreement, the committee recommends award of the contract to Comsal, Inc.,
dba Tax Saver Plan.
The actual cost of administration depends upon the number of enrollment meetings held, the number of
actual enrollees in each of the various accounts (flexible spending accounts, dependent care accounts,
and adoption assistance), and one-time set-up fees.
City of Fort Worth, Texas
"agar and Council commu"icaltio"
DATE REFERENCE NUMBER LOG NAME PAGE
11/23/99 **C-17759 1 15COMSAL 2 of 2
SUBJECT AWARD OF CONTRACT TO COMSAL, INC. DBA TAX SAVER PLAN FOR
ADMINISTRATION OF THE CITY OF FORT WORTH'S FLEXIBLE BENEFIT PLAN
M/WBE - A waiver of the M/WBE requirement for subcontracting goals was requested by Purchasing
and approved by the M/WBE Office because the purchase of services is from a source where
subcontracting or supplier opportunities are negligible.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the operating budget, as appropriated, of the
Group Health Insurance Fund.
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Submitted for City Manager's FUND ACCOUNT CENTER I AMOUNT CITY SECRETARY
Office by: (to)
Charles Boswell 851 I APPROVED
Originating Department Head: CITY COUNCIL
Susan Bulla 8513 (from) NOV
FE85 539120 0158510 85,000.00
Additional Information Contact:
Susan Bulls. 8513 city Some'
city of r:,-