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Resolution No. 97711 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9771 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN ADMINISTRATIVE SERVICES AGREEMENT WITH IGOE & COMPANY INCORPORATED, DBA IGOE ADMINISTRATIVE SERVICES, REGARDING THE CITY'S FLEXIBLE BENEFIT PLAN WHEREAS, the City of Vernon had an agreement with Igoe & Company Incorporated dba Igoe Administrative Services ("Igoe") to provide administrative services for the Flexible Benefit Plan (the "FSA") for the period January 1, 2008 through December 31, 2008; and WHEREAS, the City Council of the City of Vernon desires to renew the FSA for the period January 1, 2009 through December 31, 2009, and authorize the payment of fees in the approximate sum of $2,700.00 plus additional services as requested; and WHEREAS, Igoe has provided an Administrative Services Agreement (the "Agreement") that incorporates the terms and conditions of the Renewal; and WHEREAS, the City Council desires to approve the Agreement with Igoe for administration of the FSA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Administrative Services Agreement with Igoe, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. 1 2 3 4 672 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk is hereby lauthorized to attest thereto. SECTION 4: The City Council of the City hereby authorizes the City Administrator, or his designee, to make whatever non - substantive, administrative and/or text changes, upon advice of counsel, to the Agreement. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a fully executed Agreement to: IGOE Administrative Services Attn. Michael C. Igoe, President & CEO 16769 Bernardo Center Drive, Suite 21 San Diego, CA 92128-2548 SECTION 6: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 24th day of November, 2008. ATTEST: MANtELA GIRON,—CkLty Jerk Name: Leonis Co Malburg Title: Mayor /r^ - 2 - 1 STATE OF CALIFORNIA ) 2 ) ss COUNTY OF LOS ANGELES ) 3 4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby 5 certify that the foregoing Resolution, being Resolution No. 9771, was 6 duly adopted by the City Council of the City of Vernon at a regular 7 meeting of the City Council duly held on Monday, November 24, 2008, and 8 thereafter was duly signed by the Mayor Pro-Tem of the City of Vernon. 9 10 11 MANUELA GI N, City Clerk 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 - EXHIBIT A ell, �16m ADMINISTRATIVE SERVICES September 24, 2W8 Ms. Karina Rueda City of Venison 4305 Santa Fe Ave. Ve", CA 90058 RE; FLEXIBLE BENEFIT PLAN ADMINIsTRAT1VE SERVICES AGRr;gMENT/RENEWAL Dear Ms. Rueda Igoe Administrative Services is excited to offer another year of administration on your current Flex account! Outlined on the following pages is a summary of your current plan demon and administration, as well as a new Administrative Services Agreement for your review. Please review this information carefully to ensure that everything is correct. If you wish to make any plan design/administrative chances, please indicate such in all appropriate sections. Once this information is received a new Administrative Services Agreement will be forwarded to you. The following items are required in order to complete the renewer process: 1. A fully executed copy of the Administrative Services Agreement (ASA). 6y signing the attached ASA, please note that you are also affirming all plot design/administrative information included in your, renewal packet. Please do not sign the attached ASA if you wish to make any changes to your plan design or administration. A list of all pay dates that will have a salary redirection during the upcoming plan year. 3. Payment for renewal services. All administrativeypv W;Z.must be made via-ACH if you do not hold a bank account Upon receipt of all Items listed above, your Igoe Account Management Team will forward you new enrollment materials and contact you to coordinate the timing of your new enrollments. Please keep in mind that it may take up to 10 business days for Igoe to process the attached paperwork. We would appreciate the opportunity to discuss your plan year renewal. Your Account Management Team will be contacting you shortly to make recomrhenderions on service options that may benefit your current administration. We thank you for your continued business and look forward to another year of partnership. Sincerely` Michael C. Igoe Presi lent & CEO Enclosures cc: Brenda Lee (Gallagher Benefit Services, Inc.) ca Allyn Heck (Gallagher Benefit Services, Inc.) 16769 8em0rdo Center DW9, 4ub,21 San Dingo, CA 92IW2548 858-673-X70 8004"18 Fax ND.858473.3666 888-3574307wwwooi000.com IGOE' ALIIVIINISTRATIVE 5Er VICES Please review the current data for your Flex Plan. This will update your client records, enrollment materials, and Plan Documents keeping your Plan in compliance. Please make changes directly on this form, sign and return to your Account Management Team at flexgunport0goigoe.corn or via fax at fax: (858) 777-5424. Section I:_ Demonwhic Information* Client: City of Vernon 4305 Santa Fe Ave. Vemon, CA 90058 (323) 583-8811 Main HR Contact: Karina Rueda Telephone: (323) 583-8B11 ext. 325 E-mail: krueda@ei.vemon.ca.us Broker Name: Brenda Lee Broker Cc: Gallagher Benefit Services, Inc. Telephone: (818),539-1321 E-mail: brenda lee@a]g.00m Entity type: [ ] C Corporation (] S Corporation [ ] Non profit [ ] Partnership ] LLC [ ] LLP [ ] Sole Proprietorship [ ] Union [Id Government agency Please indicate if you are a member of an affiliated service group: F] No (J Yes - If "Yes", list all other members of the group: Please indicate if you are a member of a controlled group: [11 No [ ] Yes - If -Yes', list all other members of the group: *Changes to this section YAD not prompt a revision of the attached ASA. Se*Lt 11; Plan Review Plan;Year: January 1,, 2009 - December 31, 2009 23 Month Grace Period: WA Plan Year Run -Out End: the last day of February foitowing the dose of the Plan Year Termination Run-W End: 60 days following the date of termination ENgibllty to Participate: the first day of the month follow;ng coincident or follovring the date of hire Cl;taar(fladion: Classified as a full-time employee Minimum 911111giift Hour: WA DependentArmuld Maximums Medkd Annual Maxknuns t,irllited Purpose FSA vd%oe: 00w h awance Premium Plan: Tran *i P&*Jng Plan: Fiscal Year pates $5,000 ($2,500 marred filing satey) $5,000 NO NO NO June 30 NOTE: ANY CHANGES TO PLAN DESIGN WILL REQUIRE AN AMENDED & RESTATED PLAN DOCUMENT AT A FEE OF $150.00. ADDITIONALLY, ANY CHANGES MADE TO THIS SECTION MAY PROMPT A REVISION TO THE ATTACHED ASA. 912412008 AUMINIS1 HAI IVE 5ERVILEy gjc oq_lli. Mministrati" Total # of Pay Periods: 27 Paydays? Every Other Thursday Reimbursement Processing Method: MICR Cheeks Reimbursement Processing Cycle: Every Other Thursday (same as payday) PLEASE PROVIDE A LIST OF ALL PAY DATES THAT WILL HAVE A SALARY REDIRECTION DURING THE UPCOMING PLAN YEAR. THIS LIST IS REWIRED IN ORDER TO COMPLETE THE RENEWAL PROCESS; CHANGES WADE TO THIS SECTION MAY PROMPT A REYISM TO THE ATTACHED ASA. Section IV. Enrollment VerNication Total number of benefit eligible employees: 300 If the above number is incorrect or has changed, please provide the total number of benefit eligible employees as of this notice: Will open enrollment k] Yes - list vendor name and contact information (e.g. BeneTrac, ADP, etc) - 505 NORTH BRAND AVENUE BLVD., SUITE 600, GLENDALE, CA 91203-3944 Will mid year enrollments & changes be communicated from an outside vendor? W No [ ] Yes - list vendor name and contact information (e.g. BensTrac, ADP, etc) " be communicated from an outside vendor? [ ] No **IF OPEN ENROLLMENT/ONGOING FILES WERE NOT PREVIOUSLY APPROVED BY IGOE ADMINISTRATIVE SERVICES, PLEASE FORWARD THE INCLUDED FILE SPECIFICATIONS TO YOUR VENDOR, ALL FILE TRANSFERS MUST CONFORM TO THE ATTACHED SPECIFICATIONS UNLESS EXPRESSLY AGREED TO IN WRITING BY ALL PARTIES, Section V: Authorization Your signature below is: ❑ Confirmation that all above information Is correct or OW the appropriate changes have been noted above. (Write corrections directly on the form before returning. Written information will be acted upon. N such documentation, requires a chop to the included ASA or an addition to your renwaal fees, a revised ASA and renewal invoice win be provided) - Please sign the attached ASA if no. crmea were made to the above information. O Admowledgement that Igoe Administrative Services is NOT responsible for massing or incorrect information not noted above. L3 Acceptance of the 2009 Plan Year Re -enrollment Pee of $300.00. 0 Agreement that you understand that additional fees apply when: • Plan changes andfor Corrections that affect the materials are reported after materials have been created for the new Plan Year -including n"year chang • Non -Discrimination changes andlor corrections the affect testing results are reported after tests have been run. • Administrative or Plain Design changes are made - including mWyew chance. GtieAt Date 1111712008 AOMINISWATivt SEfivlwi AUMINISTRATIVE SERVICES CITY OF VERNON FLEXIBLE BENEFrr PLAN ADMINISTRATIVE SERVICES AGREEMENT This Agreement specifies the services to be provided to City of Vernon, in the ongoing administration of the City of Vernon Amended and Restated Flexible Benefit Plan (the "Plen"PCovered Entity") as well as the specified responsibilities of City of Vernon (the "Plan Administrator"!"Pian Sponsor") and tgoe Adndnishvdve Services (the "Contract Administrative FirmTBusiness Associate"), The Contract Administrative Firm ("Business Associate") shall be engaged by the Plan Administrator/Plan Sponsor as a subcontractor in the performance of administrative services for the Wan. 1. In accordance with the terms of this Agreement, the Contract Administrative Firm shall have the following responsibilities: A. The Contract Administrative Finn shall provide Flexible Benefit Plan services in accordance with this Agreement, as requested by the Plan Administrator/Plan Sponsor in connection with the Plan. B. The Contract Administrative Firm shall consult with Plan Administrator/Plan Sponsor on the design of the Plan. C. The Contract Administrative Firm shall provide the Plan Administrator/Plan Sponsor with the following sample documentation in order to initiate the administrative function: (i) A sample Plan Document for review and potential adoption by Plan Sponsor and Plan Sponsor's legal counsel; (ii) A master set of Employee Communicallon/Enrollment Materials, including: a. A Summary Plan Description; and b. Election Forms to be used during the Enrollment Process; and C. Reimbursement Request Forms; and d. Instructions for filing claims for reimbursement and awls procedures. The Plan Sponsor is not required to adopt or utilize the sample Plan Documents, Enrollment Materials or Forms provided by the Contract Administrative Finn and may use Its own forms, subject to review by the Contract Administrative Firm. Contract Administrative Firm makes no warranties or representations regarding the adequacy of such documentation. Additional fees may apply if additional work is required to process enrollments or reimbursements if the forms submitted by the Plan Administrator/Plan Sponsor do not comply with the Contract Administrative Firm's requirements. D. Process Reimbursement Requests, including the provision of written instructions to participants for re -submitting requests in instances where required information may be missing. In the event of an appeal by a participant, the Contract Administrative Firm agrees to reimburse expenses based on Anal claims approval provided by the Wan AdministratorRa n Sponsor. E. The Contract Administrative Punt will use the Plan Administrator/Plan Sponsor's Flexible Benefit Plan checking account or make other arrangements with such employer, as so directed by the Plan Administrator/Plan Sponsor, in order to process partippant reimbursements. See Exhibit C. If the benefits card is contracted, the Plan Administrator/Plan Sponsor will fund that account via ACH transfer directly to the benefits card provider. F. Provide a check register or similar report to the Plan Administrator/Plan Sponsor for all transactions posted during each processing period. G. Conduct Nondiscrimination testing on the 125 Plan(s), based on information provided by the Plan Administrator/Plan Sponsor, and provide Man Administrator/Plan Sponsor with a written interpretation following each open enrollment period. H. Provide sample forms for the Plan AdministratodPlan Sponsor to communicate participant terminations and quawN change in status events to the Contract Administrative Firm. I. Provide a yearto-date report of account balarrees, reimbursements paid, and scheduled payroll contributions amounts for all p * enrolled in the Flexible Spending Accounts for each month. (ISUE 912412008 AWINISTRATIVE '.ikMrES J. Provide preparation of IRS Form 5500, if applicable, following the close of each Plan Year, K. The Contract Administrative Firm will attend any audit or hearing held by a government agency or bureau regarding compliance issues directly pertaining to administration services performed by Contract Administrative Firm during the term of this Agreement and will provide any and all requested documents in their possession. This provision will survive the expiration or termination of this Agreement. 2. Business Associate Contract Provisions: A. All definitions referred to in the Business Associate Contract Provisions of this Agreement shall have the same meaning as those described in 45 CFR §§ 160.103, 164.103, 164.304 and 164.501. B. Obligations and Activities of Business Associate in accordance with HIPAA regulations regarding Protected Health Information (PHI) and Electronic Protected Health Information (EPHI): (i) Business Associate agrees to not use or further disclose Protected Health Information other than as permitted or required by the Agreement or as required by law. (ii) Business Associate agrees to use appropriate safeguards to prevent use or disclosure of the Protected Health Information other than as provided for by this Agreement. (iii) Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of Protected Health Information by Business Associate in violation of the requirements of this Agreement. (iv) Business Associate agrees to report to Covered Entity any use or disclosure of the Protected Health Information not provided for by this Agreement for which it becomes aware. (v) Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Protected Health Information received from, created or received by Business Associate on behalf of Covered Entity agrees to the same restrictions and conditions that apply through this Agreement to Business Associate with respect to such information. (vi) Business Associate agrees to make internal practices, books, and records relating to the use and disclosure of Protected Health Information received from, or created or received by Business Associate on behalf of, Covered Entity available to the Covered Entity, or at the request of the Covered Entity to the Secretary, in a time and manner designated by the Covered Entity or the Secretary, for purposes of the Secretary determining Covered Entity's compliance with the Privacy Rule. (vii) Business Associate agrees to document such disclosures of Protected Health Information and information related to such disclosures as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45 CFR §164.528. (viii) Business Associate agrees to implement any and all administrative, technical and physical safeguards necessary to reasonably and appropriately protect the confidentiality, integrity and availability of electronic Protected Health Information that it creates, receives, maintains or transmits on behalf of Covered Entity. (ix) Business Associate agrees to ensure that access to Electronic Protected Health Information related to the Covered Entity is limited to those workforce members who require such access because of their role or function. (x) Business Associate agrees to implement safeguards to prevent its workforce members who are not authorized to have access to such Electronic Protected Health Information from obtaining access and to otherwise ensure compliance by its workforce with the Security Rule. (xi) Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Electronic Protected Health Information (`ePHI") received from, or created or received by Business Associate on behalf of, Covered Entity agrees to implement appropriate safeguards to protect the ePH I. (xii) Business Associate agrees to report to Covered Entity, in writing, any security incident of which it becomes aware. Security incident shall mean successful unauthorized access to, disclosure, modification or destruction of, or interference with, the Electronic Protected Health Information by a third party, In such instances, Business Associate shall identify: the date of the security incident, the scope of the security incident, the Business Associate's response to the security incident and the identification of the party responsible for causing the security incident, if known. (xiii) Upon request from Covered Entity, Business Associate agrees to provide information to Covered Entity on unsuccessful unauthorized access, use, disclosure, modification or destruction of the Electronic Protected Health Information to the extent such information is available to Business Associate, Business Associate reserves the right to provide such information on a monthly basis as an aggregate number. (xiv) As required by the Security Rule, Business Associate agrees to treat a material breach of this Agreement as a breach of the Agreement and to an early termination of the Agreement by Covered Entity, clh� "IP 912412008 AOMINtSMAUVE sECtvirEs C. Permitted Uses and Disclosures by Business Associate Except as otherwise limited in this Agreement, Business Associate may use or disclose Protected Health Information to perform functions, activities, or services for, or on behalf of, Covered Entity as specified in this Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by Covered Entity. 3. The Contract Administrative Firm is willing to perform the services described in this Agreement, provided that Contract Administrative Firm shall not. assume the responsibilities of the Plan AdministratorlPian Sponsor under the Plan, and provided that Contract Administrative Firm shall not constitute or be deemed or construed to constitute the "Plan Administrator" of the Plan as such term is defined in the Plan and within the meaning of ERISA Section 3(16). The Contract Administrative Firm will use reasonable care and due diligence in the performance of its responsibilities hereunder. In addition, except as expressly set forth herein, the Contract Administrative Firm shall not be a "fiduciary" of the Plan as such term is defined in ERISA Section 3(21). Plan Administrator/Plan Sponsor agrees that this responsibility is, and remains, that of the Plan Administrator/Plan Sponsor. 4. In accordance with the terms and conditions of this Agreement, the Plan Administrator/Plan Sponsor agrees to the following; A. The Plan Administrator/Plan Sponsor desires to engage the Contract Administrative Firm to provide professional services in accordance with this Agreement, and the Contract Administrative Firm desires to accept such engagement. B. The Plan AdministratorlPlan Sponsor shall administer the Plan or appoint a person or committee to administer the Plan (the "Plan Administrator"). C. The Plan Administrator/Plan Sponsor understands and acknowledges that Contract Administrative Firm is responsible only for providing the services specifically allocated to the Contract Administrative Firm in this Agreement. D. If using a vendor for electronic enrollment for your group health benefits, the Plan Sponsor/Plan Administrator shall remain ultimately responsible for the accuracy of the Flexible Benefit Plan elections and all related records. The Plan Sponsor/Plan Administrator is responsible for capturing all electronic enrollment data and transmitting it to the Contract Plan Administrator prior to the appropriate effective dates, The Plan Sponsor/Plan Administrator is responsible to review such reports and to provide corrections as needed. The Contract Plan Administrator will continue to provide all reporting as outlined in this Agreement. E. The Plan Administrator/Plan Sponsor agrees to have the sample Plan Documents provided by the Contract Administrative Firm reviewed and approved by the Plan Sponsor's legal counsel. Upon this review, the Plan Administrator/Plan Sponsor agrees to supply the executed Plan Documents for review by participants upon request within a reasonable amount of time. In addition, the Plan Administrator/Plan Sponsor agrees to provide a Summary Plan Description to each participant upon enrollment in the Plan and to communicate any changes which may be made to the Plan and/or the Summary Plan Description accordingly. F. The Plan Administrator/Plan Sponsor shall establish a zero -balance Flexible Benefit Plan checking account or make other arrangements with such employer in order for the Contract Administrative Finn to process claims for reimbursement under the Plan (See Exhibit C). G. The Plan Administrator/Plan Sponsor shall report all participant terminations and all qualifying change in status events In a written format, including all requested information, to the Contract Administrative Firm prior to the first affected payroll date. Should this information not be provided In a complete or timely manner, the Plan Administrator/Plan Sponsor agrees to pay any resulting administrative fees which may be incurred in order to process retroactive adjustments to payroll contributions or reimbursement claims processed in error. H. The Plan Administrator/Plan Sponsor shall provide the Contract Administrative Firm, confirmation of redirections into the Flexible Benefit Plan, based on reports provided by the Contract Plan Administrative Firm, in a timely manner, thus allowing the Contract Administrative Firm to post contributions for the purpose of processing reimbursements. Should this information not be received in a complete and timely manner, the Plan Administrator/Plan Sponsor agrees to pay any resulting administrative fees required to process any retroactive changes, as fees for this service are not covered under this Agreement. I. The Plan Administrator/Plan Sponsor agrees to provide to the Contract Administrative Firm, upon each open enrollment period and with each new enrollment in the Plan, all required data to perform IRS -required 125 Plan Non-discrimination Testing. The Plan AdministratorlPlan Sponsor agrees to report any changes to the Contract Administrator, which may affect the qualification of the Plan for meeting Non-discrimination requirements. In addition, the Plan Administrator/Plan Sponsor agrees to Initiate any action required in the event the Plan is reported as discriminatory. ChklE 912412006 AUMINISTRAUVE SERVICES J. The Plan Administrator/Plan Sponsor shall retain documentation relating to Plan operations that may be requested in an IRS or Department of Labor audit of Plan operations - Including, but not limited to: Non-discrimination testing information, executed copies of the Plan, Salary Redirection Agreements ('Enrollment Forms"), Plan Amendments, Resolutions adopting the Plan, and Form 5500s, (if applicable), for seven years after the dose of each Plan Year, K. The Plan Administrator/Plan Sponsor shall ensure that only common law employees participate in the Plan [employees of companies described in IRC Section 414 (b), (c) or (m) and listed in the Plan as participating affiliates may also participate] and to ensure that the terms of its Plan Document are properly enforced. L. The Plan Administrator/Plan Sponsor shall provide all requested information on a timely basis for Igoe Administrative Services to file an annual Form 5500 Return, if applicable, for the cafeteria plan within seven months following the close of each plan year. In addition, the Plan Sponsor may be required to provide requested information in order for Igoe Administrative Services to file Form 5500 Annual Returns for the component benefit plans offered through the cafeteria plan, (component benefit plans would be a multiple plan including Premium Conversion Plans, Dependent Care. FSA and/or Medical FSA). M. The Plan Administrator/Plan Sponsor shall provide the required information on a timely basis ,in order for Igoe Administrative Services to perform Non-discrimination testing required by the Internal Revenue Code for 125 Plan(s) (including, but not limited to: ensuring that a non-discriminatory classification of employees is eligible for the plan, that contributions and benefits do not discriminate in favor of highly compensated employees, and that no more than 25% of the total pre-tax benefits is received by officers and owners). Additional information may be required in order for Igoe Administrative Services to conduct Non-discrimination testing for the component benefits offered through the cafeteria plan (including insurance and flexible spending account benefits). Igoe Administrative Services will perform Non-discrimination testing shortly after enrollment. N. At each month -end the Contract Administrative Firm will submit a statement showing the amount of fees for that month pursuant to Exhibit A. The Plan Administrator/Plan Sponsor will pay the Contract Administrative Firm the full amount via ACH debit or via payment directly from the account utilized by the Contract Plan Administrative Firm for the payment of Flexible Benefit Plan reimbursements, 0. (If Applicable) — if a Flex Plan participant uses his/her Flex benefits card fora transaction that falls outside of the benefits card parameters set forth by the IRS, a request for substantiation will be sent automatically via e-mail. If no response is received within 14 days a second electronic letter will be sent. If no response is received within 7 days, the benefits card will be deactivated and the expense deemed ineligible. Once a card is deactivated, the participant will no longer have the ability to use their card until he/she provides resolution through one of the following methods: Provide receipts as substantiation to Igoe Administrative Services along with a copy of the letter he/she received. The information may be faxed to 858-777-5424. Upon receipt, the transaction will be approved therefore reactivating the benefits card. • Refund the Flexible Benefit Plan equal to the amount of the transaction via either a payroll deduction or a personal check. Upon notification from the employer that the refund is complete, the transaction will be reversed therefore reactivating the benefits card. • The employer may add the amount of the ineligible transaction to the employee's W-2 as taxable income. Upon notification from the employer that this action is being taken, the transaction will be approved therefore reactivating the benefits card. Obligations of Covered Entity in accordance with HIPAA regulations regarding Protected Health Information (PHI): A. Covered Entity shall notify Business Associate of any restriction to the use or disclosure of Protected Health Information that Covered Entity has agreed to in accordance with 45 CFR 164.522, to the extent that such restriction may affect Business Associate's use or disclosure of Protected Health Information. B. Covered Entity shall not request Business Associate to use or disclose Protected Health Information in any manner that would not be permissible under the Privacy Rule if done by Covered Entity. Plan Administrator/Plan Sponsor acknowledges that they have read;this Agreement in its entirety and Plan AdministratoriPlan Sponsor acknowledges that It has been advised to consult with, and has consulted as it deems necessary, its own attomey with respect to the ,lGt�,E 9/24/2008 ACIMINI5TRATIVE SERVICES matters herein, and acknowledges that Contract Administrative Firm is not providing any tax or legal advice as a result of its professional services under this Agreement. In addition, the Plan Administrator/Plan Sponsor agrees to the fees outlined in Exhibit A and Exhibit B of this Agreement. Failure to pay fees when due may result in termination of this Agreement. The Administrative Fee Schedule, which is attached to this Agreement as Exhibit A, is made a part hereof as of the effective date of this Agreement. 7. Should either party institute legal action to enforce its rights under this Agreement, the venue shall be in San Diego County, State of California, and the prevailing party in such action shall be entitled to recover reasonable attorney's fees and costs. 8. Should Plan Administrator/Plan Sponsor, at any time during the coverage period of this Agreement, file in the United States for the Debt Relief or Reorganization of any type, all services from the date of the filing forward shall be terminated immediately. 9. Plan AdministratorlPlan Sponsor agrees to accurately complete an administrative instruction/summary form, as supplied by the Contract Administrative Firm, upon implementation or renewal of the Plan. Plan Administrator/Plan Sponsor agrees that these forms will provide the basis of the Contract Administrative Fin's administrative actions under this Agreement. Further, Plan Administrator/Plan Sponsor agrees that any changes to the infonnatlon supplied on these forms may only be made in writing and are only effective when acknowledged by the Contract Administrative Firm in writing. Additional fees may be incurred for any retroactive changes made aver the Plan Administrator/Plan Sponsor has agreed to the administration design in writing or for any changes which may be requested mid- year (after the open enrollment period). 10. Term and Termination. A. Term, This Agreement shall govem the contract period beginning January 1, 2009 and ending December 31, 2009, unless terminated earlier by either party at any given time upon thirty (30) days written notice. B. The Term of this Agreement shall be effective as of the date of the signature on this Agreement, and, with respect to HIPAA Privacy Rules, this Agreement shall terminate when all of the Protected Health Information provided by Covered Enfity to Business Associate, or created or received by Business Associate on behalf of Covered Entity, Is destroyed or returned to Covered Entity, or, If it is infeasible to return or destroy Protected Health Information, protections are extended to such information, in accordance with the termination provisions in this Section. C. Termination for Cause. With respect to HIPAA Privacy Rules, upon Covered Entity's knowledge of a material breach by Business Associate, Covered Entity shall provide an opportunity far Business Associate to cure the breach or end the violation and terminate this Agreement and the Administrafive Services Agreement if Business Associate does not cure the breach or and the violation within the time specified by Covered Enfity, or immediately terminate this Agreement and the Administrative Services Agreement sections if Business Associate has breached a material term of this Agreement and cure is not possible. D. Effect of Termination. i. Except as provided for above with respect to HIPAA Privacy Rules, upon termination of this Agreement, for any reason, Business Associate shall return or destroy all Protected Health Information received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. This provision shall apply to Protected Health Information that is in the possession of subcontractors or agents of Business Associate. Business Associate shall retain no copies of the Protected Health Information. ii. In the event that Business Associate determines that returning or destroying the Protected Health Information is infeasible, Business Associate shall provide to Covered Entity notification of the conditions that make return or destruction infeasible. Upon mutual agreement of the Parties that return or destruction of Protected Health Information is infeasible, Business Associate shall extend the protections of this Agreement to such Protected Health Information and limit further uses and disclosures of such Protected Health Information to those purposes that make the return or destruction infeasible, for so long as Business Associate maintains such Protected Health Information. 11. Miscellaneous. A. Applicable Law. This Agreement shall bg governed by and construed in accordance with the laws of the State of California. B. Assi-griabillity. This Agreement and the rights, benefits, privileges, dufies and responsibilities of the parties hereto may not be assigned by any other party hereto without the prior written consent of the parties hereto. C1GOE 912412008 ALIMINISTRAIIVE SERVIEES C. Amendment: In regard to Protected Health Information (PHI), the Parties agree to take such action as is necessary to amend this Agreement from time to time as is necessary for Covered Entity to comply with the requirements of the Privacy Rule and the Health Insurance Portability and Accountability Act, Public Law 104-191. D. Binding Nature of Agreement. This Agreement is binding upon signature by both parties and shall inure to the benefit of the heirs, executors, successors and assignors of the parties hereto. E. Complete Agreement. This Agreement and all accompanying Exhibits constitute the complete Agreement of the parties regarding its subject matter and replaces and supersedes any prior written or oral agreement between the parties regarding its subject matter. F. Confidentiality. The Contract Administrative Firm will maintain the confidentiality of all records and information obtained in conjunction with the services to be performed hereunder in accordance with HIPAA Privacy regulations. The information therein shall not be divulged or disclosed or made available to persons, other than the Plan Sponsor/Plan Administrator, without written approval by the Plan Sponsor/Plan Administrator or a court of competent jurisdiction. This paragraph will survive the termination or expiration of the Agreement. G. Construction and Severability. The captions of this Agreement and its paragraphs and subparagraphs are for the convenience of the parties only and shall not be taken in account in the construction and interpretation of this Agreement. The terms of this Agreement are severable; should any portion of this Agreement be invalid or unenforceable, such Invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement and this Agreement shall be construed and interpreted as though such invalid or unenforceable provision was not contained herein. H. Independent Contractor. The Contract Administrative Firm's relationship with Plan Administrator/Plan Sponsor is that of Independent. contractor and nothing in this Agreement shall be construed as creating the relationship of employer or employee between the Plan Administrator/Plan Sponsor and officers, employees, or agents of the Contract Administrative Firm or the relationship of a partnership or joint venture between the parties, as outlined in Section 4 of this Agreement. I. Interpretation. In regard to Protected Health Information (PHI), any ambiguity in this Agreement shall be resolved in favor of a meaning that permits Covered Entity to comply with the Privacy Rule.. J. Modifications. This Agreement may not be modified or amended except by means of written modification or amendment of this Agreement or their legal successors in interest. K. Regulatory References. All references in this Agreement to a section in the Privacy Rule means the section as in effect or as amended, and for which compliance is required under the Health Insurance Portability and Accountability Act, Public Law 104- 191. L. Survival The respective rights and obligations of Business Associate under HIPAA Privacy Rules, as outlined in this Agreement, shall survive the termination or expiration of this Agreement. M. Warranties. No representations or warranties have been provided by any party to this Agreement or to any other party to this Agreement exceptas specifically set forth in this Agreement. 12. Indemnification of the Contract Administrative Firm ("Business Associate} and the Plan Administrator/Man Sponsor l"Covered Entity" Contract Administrative FirmlBusiness Associate shall Indemnify, defend and hold harmless Plan Administrator/Plan Sponsor, its affiliates, directors, officers and employees or any of them from any claim, expense, loss, damage, settlement, judgment, penalty and liability, including reasonable attorneys' fees and court costs (individually and collectively, "Claims") resulting in any way from or arising out of Contract Administrative Firm's/Business Associate's performance of or failure to perform this Agreement, including, without limitation, Claims resulting from or arising out of acts or omissions by Contract Administrative Firm/Business Associate, its employees, officers, directors, agents, or other individuals who provide services under this Agreement. Plan Administrator/Plan Sponsor shall indemnify, defend and hold harmless Contract Administrative Firm/Business Associate, its affiliates directors, officers and employees or any of them from any claim, expense, loss, damage, settlement, judgment penalty and liability including reasonable attorneys fees and court costs (individually and collectively, "Claims") resulting in any way from or arising out of Plan Administratoes/Plan Sponsor's performance of or failure to perform this Agreement, including, without limitation, Claims resulting from or arising out of acts or omissions by Plan Administrator/Plan Sponsor, its employees officers, directors, or agents. CIGOE 912412008 AUMINis,rNAIIVE SERVICES The Parties to the agreement consent and agree to all of the provisions and by their signature cause this Agreement to become effective as of the date of signature. Remittance of and acceptance of payment for services hereby binds both parties to this agreement. By: City of Vernon Amended and Restated Flexible Benefit Plan ('Covered Entity") By: Date: Plan Sponsor/Plan Administrator: City of Vernon By: Date: Contract Administrative Firm ("Business Associate") Date: September 24, 2008 I IE 9/24/2008 AUMINISMA"FIVE SERVICES EXHIBIT A: ADMINISTRATIVE FEE SCHEDULE City of Vernon RATES EFFECTIVE JANUARY 1, 2009 MONTHLY ADMINISTRATIVE CHARGES — Flexible Spending Accounts Monthly Administration Fee: $200.00 ADMINISTRATIVE SERVICES INCLUDED IN ABOVE FEE The following services are included in the monthly administration fee Actual Postage Expenses _ INCLUDED Multiple Payroll Cycles INCLUDED For example: weekly & bi weekly, monthly & weekly, etc. Plan Year End Run Out Period Processing INCLUDED Igoe Administrative Services will process Run Out Period reimbursement submittals on a set administrative "ALL ACTIVE PARTICIPANTS WITH POSITIVE BALANCES schedule DURING THE PLAN YEAR RUN OUT PERIOD WILL BE CHARGED ACCORDING TO THE ABOVE FEE SCHEDULE 2.5 Month Grace Period Processing (E)tension Period) INCLUDED Igoe Administrative Services will process the up to 2.5 Month Grace Period (fomrerly known as the Extension '"ALL ACTIVE PARTICIPANTS WITH POSITIVE BALANCES Period) reimbursement submittals on a set administrative schedule. DURING THE 2.5 MONTH GRACE PERIOD WILL BE CHARGED ACCORDING TO THE ABOVE FEE SCHEDULE Electronic Enrollment Confirmation INCLUDED Igoe Administrative Services will send an enrollment confirmation at the start of the plan year to all plan participants that provide an e-mail address. Electronic Plan Year End Reminder Notification INCLUDED Igoe Administrative Services will send a reminder notification including run out deadlines to all plan. participants that provide an e-mail address. Non -Discrimination Re -Testing (125 Plans) INCLUDED Applies when retesting Is required due to client not providing requested data at Open Enrollment, or anytime during the year when the client requests the Plos) to be retested Flex Benefits Card Reactivation (if applicable) INCLUDED A Flex Benefits Card may become de -activated if an employee does not comply with Flex Benefits Card requirements Flex Benefits Card Replacement (if applicable) INCLUDED Applies when a Flex Benefits Card is lost or stolen & client requests replacement card "If plan pattidpation ctranges by 100/6 or more during this contract ptelod, Igoe Administrative Services reserves the tight to adjust the rnonthy aftwsmft fee by the exact percentage of the parrt opafion change. ANNUAL RE -ENROLLMENT FEE Provided Igoe Administrative Services and the client mutually accept future services, Igoe Administrative Services reserves the right to charge an Annual Enrollment Fee. The client will be provided with a proposal of tees for the new Plan Year no faW than 60 days before the end of the current Plan Year. All fees for services must be paid in full prior to the preparation of any renewal materials. Included services are: ♦ Load -on of all new enrollments and txlilding of new database for each Plan Year ♦ Add newparGcipants afteriniticl setup of Plan Preparation of new master enrollment materials The minimum nvft fee WN apply when a cckent chooses not to renew for the next Wan Year and requests Igoe Admkg tratAm Services to administer the Plan Year Run Out Period for the ending Plan Year. ARLIE 912412W8 ALMINIS HAIML 5I NVIIx5 OPTIONAL ADMINISTRATIVE FEES The following services are not included in the administration fees. The client will incur additional fees when these services are required or requested. Any services not explicitly outlined in this Agreement may require additional fees. Optional services may include, but are not limited to, Specialized Reporting, Additional Services, Information Systems Programming or Consultation. Fees for these services will be determined based on the time required to complete said service and will be agreed to by both parties prior to performance of such services. Special Check Run $25.00 Checks produced on non-scheduled processing day -Additional fees will apply when client requests PER SPECIAL RUN replacement check/s be generated prior to next scheduled processing day Flex Benefits Card Set -Up $100.00 If client implements the Flex Benefits Card Flex Plan Document Amendments/Restatements $150.00 Applies when a Plan Document Amendment is necessary to keep your Plan in compliance WebEx ADDITIONAL FEES MAY APPLY, PLEASE Professionally trained Igoe staff members are available by appointment to conduct a live, interactive CONTACT YOUR ACCOUNT MANAGEMENT enrollmenticlient education/ or participant education meeting via the internet, The length of the call and the TEAM TO OBTAIN A QUOTE number of connections included determine the fees for this service. ItOE 912412008 AUMINISTHATIVE SERV1EES EXHIBIT B: ADMINISTRATIVE SERVICES ON -GOING ADMINISTRATIVE SERVICES The following services are included in the administration fees. 0 'view Online Employer Access To Documents and Reports The WRO site allows you to view all customized forms, reports and documentation regarding your Flex Plan. Access to this site will be restricted by 128-bit encrypted super -certificate from Thawte to ensure the strongest possible online security. Your Account Management Team will provide a demonstration of this site upon implementation. 24-Hour On -Line Participant Account Information Participants are given online access with abilities to check account balance and transaction information via the Igoe Administrative Services web site at www.goigoe.com. Upon enrollment for each new Plan year, all website login information will be provided to you for distribution. Participant Services Igoe Administrative Services Participant Services Department is comprised of a team of qualified personnel available to assist Participants by answering questions and resolving issues that may arise during the Open Enrollment Period and throughout the Plan Year. The Participant Services Team is trained to respond to Participant issues such as; account balance inquiries; contributions, reimbursements, requests posted to Participant accounts; questions on denied requests for which a Participant has received a letter; education regarding eligibility of expenses; confirmation of processing deadlines or reimbursement methods; and IRS Guidelines and Section 125 regulations. Annual Non-discrimination Testing (When Required for 125 Plans) Non-discrimination Testing will begin upon receipt of participant Enrollment Forms, elections and required IRS Non- discrimination information. Three separate tests will be conducted following each Open. Enrollment Period to ensure that your Plan is in compliance with IRS Non-discrimination requirements, as follows: ♦ 250/6 Concentration Test: Testing is required to confirm that no more than 25% of the total benefit is contributed by key employees. ♦ 55% Average Benefit Test; Testing is required to confirm that more than 55% of the average DCAP benefit is contributed by non -highly compensated employees. ♦ 50/9 Owner Benefits Test: Testing is required to confirm that no more than 25% of the total DCAP benefit is contributed by 5% owners of the firm. Standard Reporting Services ♦ Provide reimbursement register or reimbursement report to coincide with processing schedule ♦ Provide monthly management report ♦ Provide annual IRS Form 5500 Reporting, if applicable ('hGOE 912412008 AUMINISINATIVE 5ERVICE5 Ongoing Education Through the Igoe Administrative Services web site: www.goiooe.com, Administrators, Participants and those interested may access: ♦ Rules and Regulations governing IRS Section 125 Flexible Benefit Plans ♦ Updated publications provided by the Internal Revenue Services (IRS) ♦ Links to the Internal Revenue Service (IRS) ♦ Frequently asked Questions with Answers in addition, the viewer may download, free of charge: ♦ Medical Care Reimbursement Plan Worksheets ♦ Dependent Care Assistance Plan Worksheets ♦ Medical Reimbursement Plan Request Forms ♦ Dependent Care Assistance Plan Request Forms ♦ Dependent Care vs. Tax Credit Worksheet ♦ Sample Childcare Provider Receipt Enrollment Materials A Master set of Enrollment Materials are created by Igoe Administrative Services prior to each Open Enrollment Period and forwarded to your firm via e-mail at no charge. 1G�F 912412000 ADMINISTRATIVE SERVICES EXHIBIT C: FUNDING REQUIREMENTS FUNDING OPTION 1— PAYROLL, REIMBURSEMENT: The Plan Sponsor/Plan Administrator will maintain all FSA related funds. Igoe Administrative Services will provide notification directly to the Plan Sponsor/Plan Administrator of all reimbursements to be included on the Plan Sponsor/Plan Administrator's next scheduled pay date. FUNDING OPTION 2 — MANUAL REIMBURSEMENT FROM PLAN SPONSOR ACCOUNT: The Plan Administrator/Plan Sponsor shall establish a zero -balance Flexible Benefit Plan checking account and authorize Michael C. Igoe as a signer. If Plan Administrator/Plan Sponsor does not want to add Michael C, Igoe as a signer on said account, unsigned checks will be provided directly to the Plan Administrator/Plan, Sponsor for signature and dispersment. FUNDING OPTION 3 — MANUAL REIMBURSEMENT/DIRECT DEPOSIT FROM IGOE ACCOUNT: Igoe Administrative Services will issue physical checks to Plan participants on behalf of the Plan Sponsor/Plan Administrator. Reimbursement checks will be issued using Igoe Administrative Services contracted bank. The Plan Sponsor/Plan Administrative will have a unique routing/account number to ensure that all plan related funds are held in sole and separate accounts. The Plan Sponsor/Plan Administrator will prefund said account with one month's worth of salary redirections (minimum of $5000.00 required) and agrees to replenish all funds used for Plan reimbursement within 2 business days of the check issuance date. Igoe Administrative Services reserves the right to suspend the delivery of participant reimbursements. if said account is not funded as required on the scheduled processing date. Igoe Administrative Services will handle all banking related services such as but not limited to, stop payments, reissuance of checks, research of stale dated checks, monthly account reconciliation. FUNDING OPTION 4 — BENEFITS CARD: Plan Sponsor/Plan Administrator will provide ACH abilities to Metavante/Medibank for the funding of benefit card transactions only. This option can be paired with either of the above for non -benefits card transactions. Clh�OE 912412008 AUMINISINATIVE SE13VICES ADMlNNTHAME SERVICES Wire Transfer Information (Payment of Administrative Fees and/or Replenishment of Igoe Banking Account) Please Type or Print Clearly Client Name (party initiating wire transfer): cITY OF VMQ1 Taxpayer Identification Number (TIN): 95-6000808 Company Contact Name for Remittance Only: MAMA Luxe Company Contact Telephone Number: (323) 583=8811 M. 200 Company Contact e-mail Address: cluna@ci.vernon.ea.us Company Fax Number: (323) 826-1491 Igoe Administrative Services. Wire Transfer Information Bank: California Bank and Trust Bank Address: 11717 Bernardo Plaza Court, San Diego, CA 92128 Account Name: Igoe & Company, Incorporated Routing Number: 122232109 Account Number: 21-101645-01 By signing this agreement, the above named client agrees to make payments and/or replenish their Igoe maintained bank account within the time frame outlined in the current Administrative Service Agreement. Client agrees to email accountin_p_ooigoe.com_whenever a wire transfer is initiated confirming the amount of the transfer and the purpose of the wire transfer. If the transfer is meant to pay for administrative services, the invoice number must be provided in the email notification. Furthermore client agrees to treat the above information as confidential. SHARQN DUCKWORTH Authorized Contact (Please print) Authorized Signature CITY XUMMM Job Title �dxgloQ Gate Please email this form to: Igoe Administrative Services Accounting Department at .accounting ftoigoe.com. If email is not an option, the farm may be faxed to (898) 68240M i ALIMINISTRATIVE SERVICES FSA ENROLLMENT DATA FEED PROGRAM DataFeed Overview............................................................... The new data feed system was developed with flexibility and security in mind; allowing you to easily create and transmit your file over a secure connection. Data Feeds are simply a file or files that contain the information from your system necessary to enroll your employees in one or more Flexible Spending Account Plans in our system. Data Feeds should only consist of employees that are enrolling in at least one FSA plan. Your data should be sent using two distinctly different record types:: Igoe Administrative. Services prefers that all files combine each record type in a 1,2,1,2 sequence. The first record type, called the Employee Record, will contain your employee's general information such as the Social Security Number, name, and address. The second file, called the Elections Record, will include enrollment information such as plan type, annual election, and per pay period election. The Elections Record should be repeated for each benefit type being elected. IMPORTANT NOTE: OPEN ENROLLMENT FILES SHOULD CONTAIN ALL RECORDS INDICATING A POSITIVE FSA ELECTION. FILES USED FOR ONGOING ELIGIBILITY TRANSFERS CAN ONLY CONTAIN CHANGE ONLY RECORDS (EX: NEW ELECTIONSINEW HIRES, TERMINATIONS, CHANGE IN STATUS/QUALIFYING EVENTS, AND DEMOGRAPHIC CHANGES). IGOE ADMINISTRATIVE SERVICES DOES NOT ACCEPT FULL FILES OUTSIDE OF OPEN ENROLLMENT. Record1: Employee Record..................................................................... The Employee Record Will consist of one row for each employee that will be enrolling in at least one FSA plan. Note (Required fields are bold) Field Data ' ;Max Formats ? Description = Name' T e. ; Len' h, SSN Text 11 999999999 or 999-W 9999 Last Name Text 20 First Name Text 20 MI Text 1 Middle Initial Address Text 30 Address2 Text 30 Use Address2 9 your Address field exceeds the 30 character limit. city Text 25 State Text 2 AZ, CA etc... Any valid State code Zip Code Text 10 99099, 999999999 or 99999-9%9 Hire Date Date mrh/dd/yyyy or mni/ddtyy. Play Mode Text 2 Values (A B,S,M�W,) Payroll frequency Your code could vary A=Annual I=Biweekly depending on your S=Semimonthly M:*Monthty Payroll frequencies WoWeekl , Status - Text 1 A x Active ('i'-DE Mi 912412008 AUMINISTNATIVE SENVICES T = Termed L = Leave of Absence R = Return from Leave of Absence* C = Change in status/demographic, than a** Term Date Date 10 mm/dd/yyyy or The date that the employee mm/dd/yy termed either employment of all benefits associated with their record First phone Text 14 9999999999, 999-999- # 9999 or (999) 999- 9999 Second Test 14 9999999999, 999-999- Phone # 9999 or (999) 999- _ 9999 Email Text 30 userO-host.com This field is required if you Address are offering FSA debit cards to our clients . _ First Pay Date 10 mm/dd/yyyy or The first pay day their Date mm/dd/yy deductions will take place Effective. Location Text 2 Required if locations are Code tracked by Igoe Division Text 2 Required if divisions are Code tracked b Igoe Department Text 5 Required if departments are Code tracked by Igoe Officer & Text 1 Values (Y or N) Y" if employee is an officer and Over 150K earns more than $130K; "N" if th " are not. 1% owner Text 1 Values (Y or N) "Y" if employee is at least a 1% & over owner and earns over $150K; $150K "N" if th " are not Over 5% Text 1 Values (Y or N) "Y" if employee is over 5% owner owner; "N" if they are not Earns Text 1 Values (H or N) If employee is highly 105K compensated use "H"; "N" if they are not *CAUTION —WHEN USING THE "R" STATUS, PLEASE ENSURE THAT ALL PREVIOUSLY MADE CONTRIBUTIONS ARE TAKEN INTO CONSIDERATION WHEN CALCULATING THE PER PAY PERIOD INFORMATION ON THE ELECTIONS RECORD **CAUTION — WHEN USING THE "C" STATUS FOR A QUALIFYING EVENT, PLEASE ENSURE THAT THE ACTUAL EFFECTIVE DATE LISTED ON THE ELECTIONS RECORD INDICATES THE EFFECTIVE DATE OF THE STATUS CHANGE, NOT THE DATE THE CHANGE WAS ENTERED OR THE ORIGINAL ELECTION EFFECTIVE DATE. 912412008 ALIMIN151HAIIV SEHVILE5 Record 2: Elections Record........................................................... ..... The Elections Record will be associated to the Employee Record using the SSN. This means an employee must exist on the Employee Record with the same SSN or the corresponding election(s) will not be added. If you have multiple plans with Igoe Administrative Services then you could potentially have more than one election record for each employee. An example of this would be if you had Medical and Dependent Care plans. To enroll an employee in both plans they would have two rows providing election information for each plan. Note (Required fields are bold) ;Field Name ,. Da>fa Type= __ r Ma>S Length Formats D61criptian SSN Text 11 999999999 or 999-99- This is used to link to 9999 an employee in the Employee File. An Employee must exist in the Employee File with this SSN or it will not be added. - Plan Type Text 1 Values (1 or 2) 1=Dependent Care 2 Medical Care Annual Number 11 9999.99 or 9,999.99 Annual Election Election Pay Period Number 11 9999.99 or 9,999.99 Amount deducted for Deduction each pay period. Effective Date Date 10 mmldd/yyyy or mm/dd/yy For Open Enrollment = Date new plan year will start. For new hires/election changes* = Date the election is effective from a regulatory standpoint *CAUTION —WHEN USING THE "R" STATUS, PLEASE ENSURE THAT ALL PREVIOUSLY MADE CONTRIBUTIONS ARE TAKEN INTO CONSIDERATION WHEN CALCULATING THE PER PAY PERIOD ON THE ELECTIONS RECORD. WHEN USING THE "C" STATUS FOR A QUALIFYING EVENT, PLEASE ENSURE THAT THE ACTUAL EFFECTIVE DATE LISTED ON THE ELECTIONS RECORD INDICATES THE EFFECTIVE DATE OF THE STATUS CHANGE, NOT THE DATE THE CHANGE WAS ENTERED OR THE ORIGINAL ELECTION EFFECTIVE DATE. 4GOE 912412008 AUMINNIHATIVE SEHVILE5 PAY PERIOD PAYDATE 1. 12/07/08 - 12/20/08 0� /01 ro9 2. 12/21 /08 - 01 /03/09 3. 01/04/09 - 01 /17/09 01 /29109 4. 01 /18/09 - 01 /31 /09 02/12/09 5. 02/01 /09 - 02/14/09 02/26/09 6. 02/15/09 - 02/28/09 03/12/09 7. 03/01 /09 - 03/14/09 03/26/09 8. 03/15/09 - 03/28/09 04/09/09 9. 03/29/09 - 04/11/09 04/23/09 10. 04/12/09 - 04/25/09 05/07/09 11. 04/26/09 - 05/09/09 05/21 /09 12. 05/10/09 - 05/23/09 06/04/09 13. 05/24/09 - 06/06/09 06/18/09 14. 06/07/09 - 06/20/09 07/02/09 15. 06/21/09 - 07/04/09 07/16I09, 16. 07/05/09 - 07/18/09 0130/OJ 17. 07/19/09 - 08/01/09 08/13/09 18. 08/02/09 - 08/15/09 08/27/09 19. 08/16/09 - 08/29/09 09/10/09 20. 08/30/09 - 09/12/09 09/24/09 21. 09/13/09 - 09/26/09 10/08/09 22. 09/27/09 - 10/10/09 10/22/09 23. 10/11/09 - 10/24/09 11/05/09 24. 10/26/09 - 11 /07/09 11 /19109 25. 11 /08/09 - 11 /21 /09 12/0316 26. 11 /22/09 - 12/05/09 12/17/09 27. 12/06/09 - 12/19/09 Tax 113.95-3391660 DATE; November 18, 2008 REFERENCE # November 18, 2008 FOR; City of Vernon 2009 Renewal Katina Rueda City of Vernon 4305 Santa Fe Ave Vernon, CA 90058 Benefit Plan Renewal 300.00 **PAYMENT MUST BE RECEIVED IN FULL BEFORE IGOE WILL BEGIN IMPLEMENTATION** Renewal fees will be taken via ACH If you have any questions concerning this invoice, please contact: Your Account Management Team at flexsupport@goigoc.com TOTAL THANK YOU FOR YOUR CONTINUED BUSINESS! 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 December 11, 2008 IGOE & Company, Inc. Attn: Michael C. Igoe President & CEO 16769 Bernardo Center Drive, Suite 21 San Diego, CA 92128-2548 Re: Flexible Benefit Plan Administrative Services Agreement Dear Mr. Igoe: Transmitted herewith is a copy of the fully executed agreement as referenced above, approved by City Council on November 24, 2008, through Resolution No. 9771. If you have any questions regarding this matter, please call Mr. Willard Yamaguchi, at (323) 583-8811 ext. 175. ..V ry truly yours, ell Gii City Clerk NG:dr c: Willard Yamaguchi Purchasing Department Resolution No. 9771 Agreement No. 08-114 Evc(usivefy Industrial Aff ff Uw"& AUMIN115TRATIVE SERVIEE5 November 25, 2008 Ms. Karma Rueda City of Vernon 4305 Santa Fe Ave. Vernon, CA 90058 RE: FLEXIBLE BENEFIT PLAN ADMINISTRATIVE SERVICES AGREEMENT/RENEWAL Dear Ms. Rueda: Igoe Administrative Services is excited to offer another year of administration on your current Flex account! Outlined on the following pages is a summary of your current plan design and administration, as well as a new Administrative Services Agreement for your review. Please review this information carefully to ensure that everything is correct. If you wish to make any plan design/administrative changes, please indicate such in all appropriate sections. Once this information is received a new Administrative Services Agreement will be forwarded to you. The following items are required in order to complete the renewal process: 1. A fully executed copy of the Administrative Services Agreement (ASA). By signing the attached ASA, please note that you are also affirming all plan design/administrative information included in your renewal packet. Please do not sign the attached ASA if you wish to make any changes to your plan design or administration. 2. A list of all pay dates that will have a salary redirection during the upcoming plan year. Upon receipt of all items listed above, your Igoe Account Management Team will forward you new enrollment materials and contact you to coordinate the timing of your new enrollments. Please keep in mind that it may take up to 10 business days for Igoe to process the attached paperwork. We would appreciate the opportunity to discuss your plan year renewal. Your Account Management Team will be contacting you shortly to make recommendations on service options that may benefit your current administration. We thank you for your continued business and look forward to another year of partnership. Sincerely, Michael C. Igoe President & CEO Enclosures cc: Brenda Lee (Gallagher Benefit Services, Inc.) P.O. Box 501480 San Diego, CA 92150-1480 858-673-3670 800-633-8818 Fax No. 858-673-3666 888-357-6307 www..qo4goe.com "IGOE AD10/ INISTRATtVE SERVICES CLIENT VERIFICATION Please review the current data for your Flex Plan. This will update your client records, enrollment materials, and Plan Documents keeping your Plan in compliance. Please make changes directly on this form, sign and return to your Account Management Team at flexsupport(cDgoiaoe.com or via fax at fax: (858) 777-5424. Section I: Demographic Information* Client: City of Vernon 4305 Santa Fe Ave. Vernon, CA 90058 (323) 583-8811 Main Hit Contact: Telephone: E-mail: Broker Name: Broker Co: Telephone: E-mail: Entity type: [ ] C Corporation [ l LLC [� Government agency Karina Rueda (323) 583-8811 x325 krueda@ci.vernon.ca.us Brenda Lee Gallagher Benefit Services, Inc. (818) 539-1321 brenda_lee@ajg.com [ ] S Corporation [ ] Non profit [ ] Partnership [ ] LLP [ ] Sole Proprietorship [ ] Union Please indicate if you are a member of an affiliated service group: V.] No [ ] Yes - If "Yes", list all other members of the group: Please indicate if you are a member of a controlled group: $ ] No [ ] Yes - If "Yes", list all other members of the group: *Changes to this section will not prompt a revision of the attached ASA. Section II: Plan Review Plan Year: January 1, 2009 - December 31, 2009 2.5 Month Grace Period: NIA Plan Year Run -Out End: the last day of February following the close of the Plan Year Termination Run -Out End: 60 days following the date of termination Eligibility to Participate: the first day of the month following coincident or following the date of hire Classification: classified as a full-time employee Minimum Eligible Hours: NIA Dependent Annual Maximum: Medical Annual Maximum: Limited Purpose FSA wligoe: Other Insurance Premium Plan Transit I Parking Plan: Fiscal Year End pate: $5,000 ($2,500 married filing separately) $5,000 NO NO NO/NO June 30 NOTE: ANY CHANGES TO PLAN DESIGN WILL REQUIRE AN AMENDED & RESTATED PLAN DOCUMENT AT A FEE OF $150.00. ADDITIONALLY, ANY CHANGES MADE TO THIS SECTION MAY PROMPT A REVISION TO THE ATTACHED ASA. (Aqji"�F 1112512008 AUMIMSIRAT'IVE SERVICES Section III: Administration Total # of Pay Periods: 27 Paydays: Every Other Thursday Reimbursement Processing Method: MICR Checks Reimbursement Processing Cycle: Every Other Thursday (same as payday) PLEASE PROVIDE A LIST OF ALL PAY DATES THAT WILL HAVE A SALARY REDIRECTION DURING THE UPCOMING PLAN YEAR. THIS LIST IS REQUIRED IN ORDER TO COMPLETE THE RENEWAL PROCESS. CHANGES MADE TO THIS SECTION MAY PROMPT A REVISION TO THE ATTACHED ASA. Section IV: Enrollment Verification Total number of benefit eligible employees: 300 If the above number is incorrect or has changed, please provide the total number of benefit eligible employees as of this notice: Will open enrollment information be communicated from an outside vendor? [ ] No DC] Yes — list vendor name and contact information GALLAGHER BENEFIT SERVICES, INC-, ATTN: AT.T.YN R. IIEC i; (e.g. BeneTrac, ADP, etc) ** 505 NORTH BRAND AVENUE BLVD., SUITE 600, GLENDALE, CA 91203-3944 Will mid year enrollments & changes be communicated from an outside vendor? W No [ ] Yes — list vendor name and contact information (e.g. BeneTrac, ADP, etc) "* **IF OPEN ENROLLMENTIONGOING FILES WERE NOT PREVIOUSLY APPROVED BY IGOE ADMINISTRATIVE SERVICES, PLEASE FORWARD THE INCLUDED FILE SPECIFICATIONS TO YOUR VENDOR. ALL FILE TRANSFERS MUST CONFORM TO THE ATTACHED SPECIFICATIONS UNLESS EXPRESSLY AGREED TO IN WRITING BY ALL PARTIES. Section V: Authorization Your signature below is: ❑ Confirmation that all above information is correct or that the appropriate changes have been noted above. (Write corrections directly on the form before returning. Written information will be acted upon. If such documentation, requires a change to the included ASA or an addition to your renewal fees, a revised ASA and renewal invoice Will be provided) - Please sign the attached ASA if no changes were made to the above information. ❑ Acknowledgement that Igoe Administrative Services is NOT responsible for missing or incorrect information not noted above. ❑ Acceptance of the 2009 Plan Year Re -enrollment Fee of $300.00. ❑ Agreement that you understand that additional fees apply when: • Plan changes and/or corrections that affect the materials are reported after materials have been created for the new Plan Year -including mid -year changes. • Non -Discrimination changes and/or corrections that affect testing results are reported after tests have been run. • Administrative or Plan Design changes are made - including mid -year changes. Client Signature Date 1112512008 ADMINISTRAINE SERVICES AGUE ADMINISTRATIVE IVE SERVICES CITY OF VERNON FLEXIBLE BENEFIT PLAN ADMINISTRATIVE SERVICES AGREEMENT This Agreement specifies the services to be provided to City of Vernon, in the ongoing administration of the City of Vernon Amended and Restated Flexible Benefit Plan (the "Plan"I"Covered Entity") as well as the specified responsibilities of City of Vernon (the, "Plan Administratoff'Plan Sponsor") and Igoe Administrative Services (the "Contract Administrative Firm"/"Business Associate"). The Contract Administrative Firm ("Business Associate") shall be engaged by the Plan Administrator/Plan Sponsor as a subcontractor in the performance of administrative services for the Plan. 1. In accordance with the terms of this Agreement, the Contract Administrative Firm shall have the following responsibilities: A. The Contract Administrative Firm shall provide Flexible Benefit Plan services in accordance with this Agreement, as requested by the Plan Administrator/Plan Sponsor in connection with the Plan. B. The Contract Administrative Firm shall consult with Plan Administrator/Plan Sponsor on the design of the Plan. C. The Contract Administrative Firm shall provide the Plan Administrator/Plan Sponsor with the following sample documentation in order to initiate the administrative function: (i) A sample Plan Document for review and potential adoption by Plan Sponsor and Plan Sponsor's legal counsel; (ii) A master set of Employee Communication/Enrollment Materials, including: a. A Summary Plan Description; and b. Election Forms to be used during the Enrollment Process; and C. Reimbursement Request Forms; and d. Instructions for filing claims for reimbursement and appeals procedures. The Plan Sponsor is not required to adopt or utilize the sample Plan Documents, Enrollment Materials or Forms provided by the Contract Administrative Firm and may use its own forms, subject to review by the Contract Administrative Firm. Contract Administrative Firm makes no warranties or representations regarding the adequacy of such documentation. Additional fees may apply if additional work is required to process enrollments or reimbursements if the forms submitted by the Plan Administrator/Plan Sponsor do not comply with the Contract Administrative Firm's requirements. D. Process Reimbursement Requests, including the provision of written instructions to participants for re -submitting requests in instances where required information may be missing. In the event of an appeal by a participant, the Contract Administrative Firm agrees to reimburse expenses based on final claims approval provided by the Plan Administrator/Plan Sponsor. E. The Contract Administrative Firm will use the Plan Administrator/Plan Sponsor's Flexible Benefit Plan checking account or make other arrangements with such employer, as so directed by the Plan Administrator/Plan Sponsor, in order to process participant reimbursements. See Exhibit C. If the benefits card is contracted, the Plan Administrator/Plan Sponsor will fund that account via ACH transfer directly to the benefits card provider. F. Provide a check register or similar report to the Plan Administrator/Plan Sponsor for all transactions posted during each processing period. G. Conduct Non-discrimination testing on the 125 Plan(s), based on information provided by the Plan Administrator/Plan Sponsor, and provide Plan Administrator/Plan Sponsor with a written interpretation following each open enrollment period. H. Provide sample forms for the Plan Administrator/Plan Sponsor to communicate participant terminations and qualifying change in status events to the Contract Administrative Firm. Provide a year-to-date report of account balances, reimbursements paid, and scheduled payroll contributions amounts for all 1112512008 AumINISMA IvE SERVICES participants enrolled in the Flexible Spending Accounts for each month. J. Provide preparation of IRS Form 5500, if applicable, following the close of each Plan Year. K. The Contract Administrative Firm will attend any audit or hearing held by a government agency or bureau regarding compliance issues directly pertaining to administration services performed by Contract Administrative Firm during the term of this Agreement and will provide any and all requested documents in their possession. This provision will survive the expiration or termination of this Agreement. 2. Business Associate Contract Provisions: A. All definitions referred to in the Business Associate Contract Provisions of this Agreement shall have the same meaning as those described in 45 CFR §§ 160.103, 164.103, 164.304 and 164.501. B. Obligations and Activities of Business Associate in accordance with HIPAA regulations regarding Protected Health Information (PHI) and Electronic Protected Health Information (EPHI): (i) Business Associate agrees to not use or further disclose Protected Health Information other than as permitted or required by the Agreement or as required by law. (ii) Business Associate agrees to use appropriate safeguards to prevent use or disclosure of the Protected Health Information other than as provided for by this Agreement. (iii) Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of Protected Health Information by Business Associate in violation of the requirements of this Agreement. (iv) Business Associate agrees to report to Covered Entity any use or disclosure of the Protected Health Information not provided for by this Agreement for which it becomes aware, (v) Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Protected Health Information received from, created or received by Business Associate on behalf of Covered Entity agrees to the same restrictions and conditions that apply through this Agreement to Business Associate with respect to such information. (vi) Business Associate agrees to make internal practices, books, and records relating to the use and disclosure of Protected Health Information received from, or created or received by Business Associate on behalf of, Covered Entity available to the Covered Entity, or at the request of the Covered Entity to the Secretary, in a time and manner designated by the Covered Entity or the Secretary, for purposes of the Secretary determining Covered Entity's compliance with the Privacy Rule. (vii) Business Associate agrees to document such disclosures of Protected Health Information and information related to such disclosures as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45 CFR §164.628. (viii) Business Associate agrees to implement any and all administrative, technical and physical safeguards necessary to reasonably and appropriately protect the confidentiality, integrity and availability of electronic Protected Health Information that it creates, receives, maintains or transmits on behalf of Covered Entity. (ix) Business Associate agrees to ensure that access to Electronic Protected Health Information related to the Covered Entity is limited to those workforce members who require such access because of their role or function. (x) Business Associate agrees to implement safeguards to prevent its workforce members who are not authorized to have access to such Electronic Protected Health Information from obtaining access and to otherwise ensure compliance by its workforce with the Security Rule.. (A) Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Electronic Protected Health Information (`ePHI") received from, or created or received by Business Associate on behalf of, Covered Entity agrees to implement appropriate safeguards to protect the ePH I. (xii) Business Associate agrees to report to Covered Entity, in writing, any security incident of which it becomes aware. Security incident shall mean successful unauthorized access to, disclosure, modification or destruction of, or interference with, the Electronic Protected Health Information by a third party. In such instances, Business Associate shall identify: the date of the security incident, the scope of the security incident, the Business Associate's response to the security incident and the identification of the party responsible for causing the security incident, if known. (xiii) Upon request from Covered Entity, Business Associate agrees to provide information to Covered Entity on unsuccessful unauthorized access, use, disclosure, modification or destruction of the Electronic Protected Health Information to the extent such information is available to Business Associate. Business Associate reserves the right to provide such information on a monthly basis as an aggregate number. (xiv) As required by the Security Rule, Business Associate agrees to treat a material breach of this Agreement as a breach of the Agreement and to an early termination of the Agreement by Covered Entity, 1112512008 ADMINISTRATIVE SERVICES C. Permitted Uses and Disclosures by Business Associate Except as otherwise limited in this Agreement, Business Associate may use or disclose Protected Health Information to perform functions, activities, or services for, or on behalf of, Covered Entity as specified in this Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by Covered Entity, 3. The Contract Administrative Firm is willing to perform the services described in this Agreement, provided that Contract Administrative Firm shall not assume the responsibilities of the Plan Administrator/Plan Sponsor under the Plan, and provided that Contract Administrative Firm shall not constitute or be deemed or construed to constitute the "Plan Administrator" of the Plan as such term is defined in the Plan and within the meaning of ERISA Section 3(16), The Contract Administrative Firm will use reasonable care and due diligence in the performance of its responsibilities hereunder. In addition, except as expressly set forth herein, the Contract Administrative Firm shall not be a "fiduciary" of the Plan as such term is defined in ERISA Section 3(21). Plan Administrator/Plan Sponsor agrees that this responsibility is, and remains, that of the Plan Administrator/Plan Sponsor. 4. In accordance with the terms and conditions of this Agreement, the Plan Administrator/Plan Sponsor agrees to the following: A. The Plan Administrator/Plan Sponsor desires to engage the Contract Administrative Firm to provide professional services in accordance with this Agreement, and the Contract Administrative Firm desires to accept such engagement. B. The Plan Administrator/Plan Sponsor shall administer the Plan or appoint a person or committee to administer the Plan (the "Plan Administrator"). C. The Plan Administrator/Plan Sponsor understands and acknowledges that Contract Administrative Firm is responsible only for providing the services specifically allocated to the Contract Administrative Firm in this Agreement. D. If using a vendor for electronic enrollment for your group health benefits, the Plan Sponsor/Plan Administrator shall remain ultimately responsible for the accuracy of the Flexible Benefit Plan elections and all related records. The Plan Sponsor/Plan Administrator is responsible for capturing all electronic enrollment data and transmitting it to the Contract Plan Administrator riot to the appropriate effective dates. The Plan Sponsor/Plan Administrator is responsible to review such reports and to provide corrections as needed. The Contract Plan Administrator will continue to provide all reporting as outlined in this Agreement. E. The Plan Administrator/Plan Sponsor agrees to have the sample Plan Documents provided by the Contract Administrative Firm reviewed and approved by the Plan Sponsor's legal counsel. Upon this review, the Plan Administrator/Plan Sponsor agrees to supply the executed Plan Documents for review by participants upon request within a reasonable amount of time. In addition, the Plan Administrator/Plan Sponsor agrees to provide a Summary Plan Description to each participant upon enrollment in the Plan and to communicate any changes which may be made to the Plan and/or the Summary Plan Description accordingly. The Plan rAdministrator/Plan Sponsor shall establish a zero -balance Flexible Benefit Plan checking account or make other arrangements with such employer in order for the Contract Administrative Firm to process claims for reimbursement under the Plan (See Exhibit C). G. The Plan Administrator/Plan Sponsor shall report all participant terminations and all qualifying change in status events in a written format, including all requested information, to the Contract Administrative Firm prior to the first affected payroll date. Should this information not be provided in a complete or timely manner, the Plan Administrator/Plan Sponsor agrees to pay any resulting administrative fees which may be incurred in order to process retroactive adjustments to payroll contributions or reimbursement claims processed in error. H. The Plan Administrator/Plan Sponsor shall provide the Contract Administrative Firm, confirmation of redirections into the Flexible Benefit Plan, based on reports provided by the Contract Plan Administrative Firm, in a timely manner, thus allowing the Contract Administrative Firm to post contributions for the purpose of processing reimbursements. Should this information not be received in a complete and timely manner, the Plan Administrator/Plan Sponsor agrees to pay any resulting administrative fees required to process any retroactive changes, as fees for this service are not covered under this Agreement. The Plan Administrator/Plan Sponsor agrees to provide to the Contract Administrative Firm, upon each open enrollment period and with each new enrollment in the Plan, all required data to perform IRS -required 125 Plan Non-discrimination Testing. The Plan Administrator/Plan Sponsor agrees to report any changes to the Contract Administrator, which may affect the qualification of the Plan for meeting Non-discrimination requirements. In addition, the Plan Administrator/Plan Sponsor agrees to initiate ('*Wi6-0E 1112512008 ADMINISMAI NE 5ERVIL'E5 any action required in the event the Plan is reported as discriminatory. J. The Plan AdministratodPlan Sponsor shall retain documentation relating to Plan operations that may be requested in an IRS or Department of Labor audit of Plan operations - including, but not limited to: Non-discrimination testing information, executed copies of the Plan, Salary Redirection Agreements ("Enrollment Forms"), Plan Amendments, Resolutions adopting the Plan, and Form 5500s, (if applicable), for seven years after the close of each Plan Year. K. The Plan Administrator/Plan Sponsor shall ensure that only common law employees participate in the Plan [employees of companies described in IRC Section 414 (b), (c) or (m) and listed in the Plan as participating affiliates may also participate] and to ensure that the terms of its Plan Document are properly enforced. L. The Plan Administrator/Plan Sponsor shall provide all requested information on a timely basis for Igoe Administrative Services to file an annual Form 5500 Return, if applicable, for the cafeteria plan within seven months following the close of each plan year. In addition, the Plan Sponsor may be required to provide requested information in order for Igoe Administrative Services to file Form 5500 Annual Returns for the component benefit plans offered through the cafeteria plan, (component benefit plans would be a multiple plan including Premium Conversion Plans, Dependent Care FSA and/or Medical FSA). M. The Plan Administrator/Plan Sponsor shall provide the required information on a timely basis in order for Igoe Administrative Services to perform Non-discrimination testing required by the Internal Revenue Code for 125 Plan(s) (including, but not limited to: ensuring that a non-discriminatory classification of employees is eligible for the plan, that contributions and benefits do not discriminate in favor of highly compensated employees, and that no more than 25% of the total pre-tax benefits is received by officers and owners). Additional information may be required in order for Igoe Administrative Services to conduct Non-discrimination testing for the component benefits offered through the cafeteria plan (including insurance and flexible spending account benefits). Igoe Administrative Services will perform Non-discrimination testing shortly after enrollment. N. At each month -end the Contract Administrative Firm will submit a statement showing the amount of fees for that month pursuant to Exhibit A. The Plan Administrator/Plan Sponsor will pay the Contract Administrative Firm the full amount within 10 days. Payments will be considered late after 30 days. If payment is not made within 30 days, the Contract Administrative firm reserves the right to suspend future services. To reinstate services, the Plan Administrator/Plan Sponsor must agree to pay the Contract Plan Administrative Firm via ACH for all future administrative fees. 0. (If Applicable) — If a Flex Plan participant uses his/her Flex benefits card for a transaction that falls outside of the benefits card parameters set forth by the IRS, a request for substantiation will be sent automatically via e-mail. If no response is received within 14 days a second electronic letter will be sent. If no response is received within 7 days, the benefits card will be deactivated and the expense deemed ineligible. Once a card is deactivated, the participant will no longer have the ability to use their card until he/she provides resolution through one of the following methods: Provide receipts as substantiation to Igoe Administrative Services along with a copy of the letter he/she received. The information may be faxed to 858-777-5424. Upon receipt, the transaction will be approved therefore reactivating the benefits card. • Refund the Flexible Benefit Plan equal to the amount of the transaction via either a payroll deduction or a personal check. Upon notification from the employer that the refund is complete, the transaction will be reversed therefore reactivating the benefits card. • The employer may add the amount of the ineligible transaction to the employee's W-2 as taxable income. Upon notification from the employer that this action is being taken, the transaction will be approved therefore reactivating the benefits card. 5, Obligations of Covered Entity in accordance with HIPAA regulations regarding Protected Health Information (PHI): A. Covered Entity shall notify Business Associate of any restriction to the use or disclosure of Protected Health Information that Covered Entity has agreed to in accordance with 45 CFR 164.522, to the extent that such restriction may affect Business Associate's use or disclosure of Protected Health Information. B. Covered Entity shall not request Business Associate to use or disclose Protected Health Information in any manner that would not be permissible under the Privacy Rule if done by Covered Entity. 1112512008 ADMINISTRATIVE SERVIL"ES 6. Plan Administrator/Plan Sponsor acknowledges that they have read this Agreement in its entirety and Plan Administrator/Plan Sponsor acknowledges that it has been advised to consult with, and has consulted as it deems necessary, its own attorney with respect to the matters herein, and acknowledges that Contract Administrative Firm is not providing any tax or legal advice as a result of its professional services under this Agreement. In addition, the Plan Administrator/Plan Sponsor agrees to the fees outlined in Exhibit A and Exhibit B of this Agreement. Failure to pay fees when due may result in termination of this Agreement. The Administrative Fee Schedule, which is attached to this Agreement as Exhibit A, is made a part hereof as of the effective date of this Agreement. 7. Should either party institute legal action to enforce its rights under this Agreement, the venue shall be in San Diego County, State of California, and the prevailing party in such action shall be entitled to recover reasonable attorney's fees and costs. 8. Should Plan Administrator/Plan Sponsor, at any time during the coverage period of this Agreement, file in the United States for the Debt Relief or Reorganization of any type, all services from the date of the filing forward shall be terminated immediately. 9. Plan Administrator/Plan Sponsor agrees to accurately complete an administrative instruction/summary form, as supplied by the Contract Administrative Firm, upon implementation or renewal of the Plan. Plan Administrator/Plan Sponsor agrees that these forms Will provide the basis of the Contract Administrative Firm's administrative actions under this Agreement, Further, Plan Administrator/Plan Sponsor agrees that any changes to the information supplied on these forms may only be made in writing and are only effective when acknowledged by the Contract Administrative Firm in writing. Additional fees may be incurred for any retroactive changes made after the Plan Administrator/Plan Sponsor has agreed to the administration design in writing or for any changes which may be requested mid- year (after the open enrollment period). 10. Term and Termination. A. Term. This Agreement shall govern the contract period beginning January 1, 2009 and ending December 31, 2009, unless terminated earlier by either party at any given time upon thirty (30) days written notice. B, The Term of this Agreement shall be effective as of the date of the signature on this Agreement, and, with respect to HIPAA Privacy Rules, this Agreement shall terminate when all of the Protected Health Information provided by Covered Entity to Business Associate, or created or received by Business Associate on behalf of Covered Entity, is destroyed or returned to Covered Entity, or, if it is infeasible to return or destroy Protected Health Information, protections are extended to such information, in accordance with the termination provisions in this Section. C. Termination for Cause. With respect to HIPAA Privacy Rules, upon Covered Entity's knowledge of a material breach by Business Associate, Covered Entity shall provide an opportunity for Business Associate to cure the breach or end the violation and terminate this Agreement and the Administrative Services Agreement if Business Associate does not cure the breach or end the violation within the time specified by Covered Entity, or immediately terminate this Agreement and the Administrative Services Agreement sections if Business Associate has breached a material term of this Agreement and cure is not possible. D. Effect of Termination. Except as provided for above with respect to HIPAA Privacy Rules, upon termination of this Agreement, for any reason, Business Associate shall return or destroy all Protected Health Information received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. This provision shall apply to Protected Health Information that is in the possession of subcontractors or agents of Business Associate. Business Associate shall retain no copies of the Protected Health Information. In the event that Business Associate determines that returning or destroying the Protected Health Information is infeasible, Business Associate shall provide to Covered Entity notification of the conditions that make return or destruction infeasible. Upon mutual agreement of the Parties that return or destruction of Protected Health Information is infeasible, Business Associate shall extend the protections of this Agreement to such Protected Health Information and limit further uses and disclosures of such Protected Health Information to those purposes that make the return or destruction infeasible, for so long as Business Associate maintains such Protected Health Information. 11. Miscellaneous. A. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. B. Assignability. This Agreement and the rights, benefits, privileges, duties and responsibilities of the parties hereto may not be assigned by any other party hereto without the prior written consent of the parties hereto. 1112512008 AUMINIS'fRATIVE SERVILES C. Amendment. In regard to Protected Health Information (PHI), the Parties agree to take such action as is necessary to amend this Agreement from time to time as is necessary for Covered Entity to comply with the requirements of the Privacy Rule and the Health Insurance Portability and Accountability Act, Public Law 104-191. D. Binding Nature of Agreement. This Agreement is binding upon signature by both parties and shall inure to the benefit of the heirs, executors, successors and assignors of the parties hereto. E. Comvllete Agreement, This Agreement and all accompanying Exhibits constitute the complete Agreement of the parties regarding its subject matter and replaces and supersedes any prior written or oral agreement between the parties regarding its subject matter. F. Confidentiality. The Contract Administrative Firm will maintain the confidentiality of all records and information obtained in conjunction with the services to be performed hereunder in accordance with HIPAA Privacy regulations. The information therein shall not be divulged or disclosed or made available to persons, other than the Plan Sponsor/Plan Administrator, without written approval by the Plan Sponsor/Plan Administrator or a court of competent jurisdiction. This paragraph will survive the termination or expiration of the Agreement. G. Construction and Severabili!y, The captions of this Agreement and its paragraphs and Subparagraphs are for the convenience of the parties only and shall not be taken in account in the construction and interpretation of this Agreement. The terms of this Agreement are severable; should any portion of this Agreement be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement and this Agreement shall be construed and interpreted as though such invalid or unenforceable provision was not contained herein. H. Independent Contractor. The Contract Administrative Firm's relationship with Plan Administrator/Plan Sponsor is that of independent contractor and nothing in this Agreement shall be construed as creating the relationship of employer or employee between the Plan Administrator/Plan Sponsor and officers, employees, or agents of the Contract Administrative Firm or the relationship of a partnership or joint venture between the parties, as outlined in Section 4 of this Agreement. I. Interpretation. In regard to Protected Health Information (PHI), any ambiguity in this Agreement shall be resolved in favor of a meaning that permits Covered Entity to comply with the Privacy Rule. J. Modifications. This Agreement may not be modified or amended except by means of written modification or amendment of this Agreement or their legal successors in interest. K. Regulatory References. All references in this Agreement to a section in the Privacy Rule means the section as in effect or as amended, and for which compliance is required under the Health Insurance Portability and Accountability Act, Public Law 104- 191. L. Survival. The respective rights and obligations of Business Associate under HIPAA Privacy Rules, as outlined in this Agreement, shall survive the termination or expiration of this Agreement. M. Warranties. No representations or warranties have been provided by any party to this Agreement or to any other party to this Agreement except as specifically set forth in this Agreement. 12. Indemnification of the Contract Administrative Firm ('Business Associate") and the Plan Administrator/Plan Sponsor ("Covered Entity") Contract Administrative Firm/Business Associate shall indemnify, defend and hold harmless Plan Administrator/Plan Sponsor, its affiliates, directors, officers and employees or any of them from any claim, expense, loss, damage, settlement, judgment, penalty and liability, including reasonable attorneys' fees and court costs (individually and collectively, "Claims") resulting in any way from or arising out of Contract Administrative Firm's/Business Associate's performance of or failure to perform this Agreement, including, without limitation, Claims resulting from or arising out of acts or omissions by Contract Administrative Firm/Business Associate, its employees, officers, directors, agents, or other individuals who provide services under this Agreement. Plan Administrator/Plan Sponsor shall indemnify, defend and hold harmless Contract Administrative Firm/Business Associate, its affiliates directors, officers and employees or any of them from any claim, expense, loss, damage, settlement, judgment penalty and liability including reasonable attorney's fees and court costs (individually and collectively, "Claims") resulting in any way from or arising out of Plan Administrator's/Plan Sponsor's performance of or failure to perform this Agreement, including, without limitation, Claims resulting from or arising out of acts or omissions by Plan Administrator/Plan Sponsor, its employees officers, directors, or agents. Cj 1-* -6 0 E 1112512008 ADMINISTRATIVE SERVICES The Parties to the agreement consent and agree to all of the provisions and by their signature cause this Agreement to become effective as of the date of signature. Remittance of and acceptance of payment for services hereby binds both parties to this agreement. City of Vernon Amended and Restated Flexible Benefit Plan ("Covered Entity") AND %,-7,xxxxxxxxxxxxxxxxxxxxxxxxxxxx ®awxxxxxxxxxxxxxxxxxxxxxxxxxxx A TEST: Plan Sponsor/Plan Administrator: City of Vernon MANUELA GIRON, Ci y Clerk APPROVEDAS TO FORM: By; L onis C. alb erg, Ma or JE RRISON, City Attorney Date: �v !�,r Contract Administrative Firm (`Business Associate") By: Date: November 25, 2008 C, ,1,61TAC 1112512008 ADMINISTRATIVE SERVICES EXHIBIT A: ADMINISTRATIVE FEE SCHEDULE City of Vernon RATES EFFECTIVE JANUARY 1, 2009 MONTHLY ADMINISTRATIVE CHARGES — Flexible Spending Accounts Monthly Administration Fee: $200.00* TRANSPORTATION FRINGE BENEFITS (If applicable) A monthly service charge of $75.00 will apply for the maintenance of the Transportation Benefit LIMITED PURPOSE FSA (If applicable) A monthly service charge of $75.00 will apply for the maintenance of the LPFSA Benefit ADMINISTRATIVE SERVICES INCLUDED IN ABOVE FEE The following services are included in the monthly administration fee Actual Postage Expenses INCLUDED Multiple Payroll Cycles INCLUDED For example: weekly & bi-weekly, monthly & weekly, etc, Plan Year End Run Out Period Processing INCLUDED Igoe Administrative Services will process Run Out Period reimbursement submittals on a set administrative schedule. 2.5 Month Grace Period Processing (Extension Period) INCLUDED Igoe Administrative Services will process the up to 2,5 Month Grace Period (formerly known as the Extension Period) reimbursement submittals on a set administrative schedule, Electronic Enrollment Confirmation INCLUDED Igoe Administrative Services will send an enrollment confirmation at the start of the plan year to all plan participants that provide an e-mail address. Electronic Plan Year End Reminder Notification INCLUDED Igoe Administrative Services will send a reminder notification including run out deadlines to all plan participants that provide an e-mail address. Non -Discrimination Re -Testing (125 Plans) INCLUDED Applies when retesting is required due to client not providing requested data at Open Enrollment, or anytime during the year when the client requests the Plan(s) to be retested Flex Benefits Card Reactivation (if applicable) INCLUDED A Flex Benefits Card may become de -activated if an employee does not comply with Flex Benefits Card requirements Flex Benefits Card Replacement (if applicable) INCLUDED Applies when a Flex Benefits Card is lost or stolen & client requests replacement card "If plan participation changes by 10% or more during this contract period, Igoe Administrative Services reserves the right to adjust the monthly administration fee by the exact percentage of the participation change. 1112512008 AUMINIsrHAINE 5ERVIL'E5 ANNUAL RE -ENROLLMENT FEE Provided Igoe Administrative Services and the client mutually accept future services; Igoe Administrative Services reserves the right to charge an Annual Enrollment Fee. The client will be provided with a proposal of fees for the new Plan Year no later than 60 days before the end of the current Plan Year. All fees for services must be paid in full prior to the preparation of any renewal materials. Included services are: ♦ Load -on of all new enrollments and building of new database for each Plan Year ♦ Add new participants after initial set up of Plan ♦ Preparation of new master enrollment materials The minimum monthly fee will apply when a client chooses not to renew for the next Plan Year and requests Igoe Administrative Services to administer the Plan Year Run Out Period for the ending Plan Year. OPTIONAL ADMINISTRATIVE FEES The following services are not included in the administration fees. The client will incur additional fees when these services are required or requested. Any services not explicitly outlined in this Agreement may require additional fees. Optional services may include, but are not limited to, Specialized Reporting, Additional Services, Information Systems Programming or Consultation. Fees for these services will be determined based on the time required to complete said service and will be agreed to by both parties prior to performance of such services. Special Check Run $25.00 Checks produced on non-scheduled processing day - Additional fees will apply when client requests PER SPECIAL RUN replacement checks be generated prior to next scheduled processing day Flex Benefits Card Set -Up $100.00 If client implements the Flex Benefits Card Flex Plan Document Amendments/Restatements $150.00 Applies when a Plan Document Amendment is necessary to keep your Plan in compliance WebEx ADDITIONAL FEES MAY APPLY, PLEASE Professionally trained Igoe staff members are available by appointment to conduct a live, interactive CONTACT YOUR ACCOUNT MANAGEMENT enrollment/client education/ or participant education meeting via the Internet. The length of the call and the TEAM TO OBTAIN A QUOTE number of connections included determine the fees for this service. 1112512008 ACIMINISTRATIVE SERVICES EXHIBIT B: ADMINISTRATIVE SERVICES ON -GOING ADMINISTRATIVE SERVICES The following services are included in the administration fees. RV'e_vv'Online Employer Access To Documents and Reports The site allows you to view all customized forms, reports and documentation regarding your Flex Plan. Access to this site will be restricted by 128-bit encrypted super -certificate from Thawte to ensure the strongest possible online security. Your Account Management Team will provide a demonstration of this site upon implementation. 24-Hour On -Line Participant Account Information Participants are given online access with abilities to check account balance and transaction information via the Igoe Administrative Services web site at www.goigoe.com. Upon enrollment for each new Plan year, all website login information will be provided to you for distribution. Participant Services Igoe Administrative Services Participant Services Department is comprised of a team of qualified personnel available to assist Participants by answering questions and resolving issues that may arise during the Open Enrollment Period and throughout the Plan Year. The Participant Services Team is trained to respond to Participant issues such as: account balance inquiries; contributions, reimbursements, requests posted to Participant accounts; questions on denied requests for which a Participant has received a letter; education regarding eligibility of expenses; confirmation of processing deadlines or reimbursement methods; and IRS Guidelines and Section 125 regulations. Annual Non-discrimination Testing (When Required for 125 Plans) Non-discrimination Testing will begin upon receipt of participant Enrollment Forms, elections and required IRS Non- discrimination information. Three separate tests will be conducted following each Open Enrollment Period to ensure that your Plan is in compliance with IRS Non-discrimination requirements, as follows: ♦ 25% Concentration Test: Testing is required to confirm that no more than 25% of the total benefit is contributed by key employees. ♦ 55% Average Benefit Test: Testing is required to confirm that more than 55% of the average DCAP benefit is contributed by non -highly compensated employees. ♦ 5% Owner Benefits Test: Testing is required to confirm that no more than 25% of the total DCAP benefit is contributed by 5% owners of the firm. Standard Reporting Services ♦ Provide reimbursement register or reimbursement report to coincide with processing schedule ♦ Provide monthly management report ♦ Provide annual IRS Form 5500 Reporting, if applicable ('Jrf-;jUjF 1112512008 ADMINISTRATIVE SERVICES Ongoing Education Through the Igoe Administrative Services web site: www.goigoe.com, Administrators, Participants and those interested may access: ♦ Rules and Regulations governing IRS Section 125 Flexible Benefit Plans Updated publications provided by the Internal Revenue Services (IRS) ♦ Links to the Internal Revenue Service (IRS) ♦ Frequently asked Questions with Answers In addition, the viewer may download, free of charge: ♦ Medical Care Reimbursement Plan Worksheets ♦ Dependent Care Assistance Plan Worksheets ♦ Medical Reimbursement Plan Request Forms ♦ Dependent Care Assistance Plan Request Forms ♦ Dependent Care vs. Tax Credit Worksheet ♦ Sample Childcare Provider Receipt Enrollment Materials A Master set of Enrollment Materials are created by Igoe Administrative Services prior to each Open Enrollment Period and forwarded to your firm via e-mail at no charge. CJ4Fi�OE 1112512008 ADMINISTRATIVE SERVICE5 EXHIBIT C: FUNDING REQUIREMENTS FUNDING OPTION 1-e PAYROLL REIMBURSEMENT: The Plan Sponsor/Plan Administrator will maintain all FSA related funds, Igoe Administrative Services will provide notification directly to the Plan Sponsor/Plan Administrator of all reimbursements to be included on the Plan Sponsor/Plan Administrator's next scheduled pay date, FUNDING OPTION 2 — MANUAL REIMBURSEMENT FROM PLAN SPONSOR ACCOUNT: The Plan Administrator/Plan Sponsor shall establish a zero -balance Flexible Benefit Plan checking account and authorize Michael C. Igoe as a signer. If Plan Administrator/Plan Sponsor does not want to add Michael C. Igoe as a signer on said account, unsigned checks will be provided directly to the Plan Administrator/Plan Sponsor for signature and dispersment. FUNDING OPTION 3 — MANUAL REIMBURSEMENT/DIRECT DEPOSIT FROM IGOE ACCOUNT: Igoe Administrative Services will issue physical checks to Plan participants on behalf of the Plan Sponsor/Plan Administrator. Reimbursement checks will be issued using Igoe Administrative Services contracted bank. The Plan Sponsor/Plan Administrative will have a unique routing/account number to ensure that all plan related funds are held in sole and separate accounts. The Plan Sponsor/Plan Administrator will prefund said account with one month's worth of salary redirections (minimum of $5000.00 required) and agrees to replenish all funds used for Plan reimbursement within 2 business days of the check issuance date. Igoe Administrative Services reserves the right to suspend the delivery of participant reimbursements if said account is not funded as required on the scheduled processing date. Igoe Administrative Services will handle all banking related services such as but not limited to, stop payments, reissuance of checks, research of stale dated checks, monthly account reconciliation. FUNDING OPTION 4 — BENEFITS CARD: Plan Sponsor/Plan Administrator will provide ACH abilities to Metavante/Medibank for the funding of benefit card transactions only. This option can be paired with either of the above for non -benefits card transactions. 1112512008 ADMINISTRATIVE SERVICES Wire Transfer Information (Payment of Administrative Fees and/or Replenishment of Igoe Banking Account) Please Type or Print Clearly Client Name (party initiating wire transfer): CITY OF VERNON Taxpayer Identification Number (TIN): 95-6000808 Company Contact Name for Remittance Only: CLAUDIA LUNA Company Contact Telephone Number: (323) 583-8811 ext. 200 Company Contact e-mail Address cluna@ci.vernon.ca.us Company Fax Number: (323) 826-1491 Igoe Administrative Services Wire Transfer. Information Bank: California Bank and Trust Bank Address: 11717 Bernardo Plaza Court, San Diego, CA 92128 Account Name: Igoe & Company, Incorporated Routing Number: 122232109 Account Number: 21-101645-01 By signing this agreement, the above named client agrees to make payments and/or replenish their Igoe maintained bank account within the time frame outlined in the current Administrative Service Agreement. Client agrees to email accounting(a�goigoe.com whenever a wire transfer is initiated confirming the amount of the transfer and the purpose of the wire transfer. If the transfer is meant to pay for administrative services, the invoice number must be provided in the email notification. Furthermore client agrees to treat the above information as confidential. SHARON DUCKWORTH CITY TREASURER Authorized Contact (Please print) Job Title Authorized Signature Date Please email this form to: Igoe Administrative Services Accounting Department at accountinq(a?goigoe.com If email is not an option, the form may be faxed to (858) 683-2053 FSA ENROLLMENT DATA FEED PROGRAM DataFeed Overview ............................................................... The new data feed system was developed with flexibility and security in mind; allowing you to easily create and transmit your file over a 'secure connection. Data Feeds are simply a file or files that contain the information from your system necessary to enroll your employees in one or more Flexible Spending Account Plans in our system. Data Feeds should only consist of employees that are enrolling in at least one FSA plan. Your data should be sent using two distinctly different record types. Igoe Administrative Services prefers that all files combine each record type in a 1,2,1,2 sequence. The first record type, called the Employee Record, will contain your employee's general information such as the Social Security Number, name, and address. The second file, called the Elections Record, will include enrollment information such as plan type, annual election, and per pay period election. The Elections Record should be repeated for each benefit type being elected. IMPORTANT NOTE: OPEN ENROLLMENT FILES SHOULD CONTAIN ALL RECORDS INDICATING A POSITIVE FSA ELECTION. FILES USED FOR ONGOING ELIGIBILITY TRANSFERS CAN ONLY CONTAIN CHANGE ONLY RECORDS (EX: NEW ELECTIONS/NEW HIRES, TERMINATIONS, CHANGE IN STATUS/QUALIFYING EVENTS, AND DEMOGRAPHIC CHANGES). IGOE ADMINISTRATIVE SERVICES DOES NOT ACCEPT FULL FILES OUTSIDE OF OPEN ENROLLMENT. Record 1: Employee Record..................................................................... The Employee Record will consist of one row for each employee that will be enrolling in at least one FSA plan. Note (Required fields are bold) Field Name Data Type Max Length Formats Description SSIN Text 11 999999999 or 999-99- 9999 Last Name Text 20 First Name Text 20 MI Text 1 Middle Initial Address Text 30 Address2 Text 30 Use Address2 if your Address field exceeds the 30 character limit. city Text 25 State Text 2 AZ, CA etc... Any valid State code Zip Code Text 10 99999, 999999999 or 99999-9999 Hire Date Date mm/dd/yyyy or mm/dd/yy Pay Mode I Text 2 Values (A,B,S,M,W) Your code could vary Payroll frequency A=Annual B=Biweekl 1112512008 AUMINISMATIVE SERVICES depending on your S=Semimonthly M=Monthly a roll frequencies W=Weekl Status Text 1 A = Active T = Termed L = Leave of Absence R = Return from Leave of Absence* C = Change in status/demographic change' Term Date Date 10 mm/dd/yyyy or The date that the employee mm/dd/yy termed either employment of all benefits associated with their record First phone Text 14 9999999999, 999-999- # 9999 or (999) 999- 9999 Second Test 14 9999999999, 999-999- Phone # 9999 or (999) 999- 9999 Email Text 30 user(ab. host. corn This field is required if you Address are offering FSA debit cards to your clients First Pay Date 10 mm/dd/yyyy or The first pay day their Date mm/dd/yy deductions will take place Effective Location Text 2 Required if locations are Code tracked by Igoe Division Text 2 Required if divisions are Code tracked by Igoe Department Text 5 Required if departments are Code tracked by Igoe Officer & Text 1 Values (Y or N) Y" if employee is an officer and Over 150K earns more than $130K; "N" if they are not. 1 % owner Text 1 Values (Y or N) "Y" if employee is at least a 1 % & over owner and earns over $150K; $150K "N" if they are not Over 5% Text 1 Values (Y or N) "Y" if employee is over 5% owner owner; "N" if they are not Earns Text 1 Values (H or N) If employee is highly 105K compensated use "H'; "N" if they are not *CAUTION — WHEN USING THE "R" STATUS, PLEASE ENSURE THAT ALL PREVIOUSLY MADE CONTRIBUTIONS ARE TAKEN INTO CONSIDERATION WHEN CALCULATING THE PER PAY PERIOD INFORMATION ON THE ELECTIONS RECORD **CAUTION — WHEN USING THE "C" STATUS FOR A QUALIFYING EVENT, PLEASE ENSURE THAT THE ACTUAL EFFECTIVE DATE LISTED ON THE ELECTIONS RECORD INDICATES THE EFFECTIVE DATE OF THE STATUS CHANGE, NOT THE DATE THE CHANGE WAS ENTERED OR THE ORIGINAL ELECTION EFFECTIVE DATE. Mir grow 1112512008 AOMINI5TRATIVE 5ERVICES Record2: Elections Record................................................................ . The Elections Record will be associated to the Employee Record using the SSN. This means an employee must exist on the Employee Record with the same SSN or the corresponding election(s) will not be added. If you have multiple plans with Igoe Administrative Services then you could potentially have more than one election record for each employee. An example of this would be if you had Medical and Dependent Care plans. To enroll an employee in both plans they would have two rows providing election information for each plan. Note (Required fields are bold) Field Name Data Type Max Length Formats Description SSN Text 11 999999999 or 999-99- This is used to link to 9099 an employee in the Employee File. An Employee must exist in the Employee File with this SSN or it will not be added. Plan Type Text 1 Values (1 or 2) 1=Dependent Care 2 = Medical Care Annual Number 11 9999.99 or 9,999.99 Annual Election Election Pay Period Number 11 9999.99 or 9,999.99 Amount deducted for Deduction each ay period. Effective Date Date 10 mm/dd/yyyy or mm/dd/yy For Open Enrollment = Date new plan year will start. For new hires/election changes* = Date the election is effective from a regulatory standpoint 'CAUTION — WHEN USING THE "R" STATUS, PLEASE ENSURE THAT ALL PREVIOUSLY MADE CONTRIBUTIONS ARE TAKEN INTO CONSIDERATION WHEN CALCULATING THE PER PAY PERIOD ON THE ELECTIONS RECORD. WHEN USING THE "C" STATUS FOR A QUALIFYING EVENT, PLEASE ENSURE THAT THE ACTUAL EFFECTIVE DATE LISTED ON THE ELECTIONS RECORD INDICATES THE EFFECTIVE DATE OF THE STATUS CHANGE, NOT THE DATE THE CHANGE WAS ENTERED OR THE ORIGINAL ELECTION EFFECTIVE DATE. 4,itruz 1112512006 AUMINI51HA'UVE SERVICES (ist IIFF17AE ADMINUETRATIVE 5ERVICES 16769 Bernardo Center Drive Suite 21 San Diego, CA 92128 Attention: Flex Account Management Team Karina Rueda City of Vernon 4305 Santa Fe Ave Vernon, CA 90058 If you have any questions concerning this invoice, please contact: Your Account Management Team at flexsupport@goigoe.com Tax ID:95-3391660 DATE: November 25, 2008 REFERENCE # November 25, 2008 FOR: City of Vernon 2009 Renewal THANK YOU FOR YOUR CONTINUED BUSINESS! PAY PERIOD PAYDATE 1. 12/07/08 - 12/20/08 01 /01 /09 2. 12/21 /08 - 01 /03/09 01 /15/09 3. 01 /04/09 - 01 /17/09 01 /29/09 4. 01 /18/09 - 01 /31 /09 02/12/09 5. 02/01/09 - 02/14/09 02/26/09 6. 02/15/09 - 02/28/09 03/12/09 7. 03/01/09 - 03/14/09 03/26/09 8. 03/15/09 - 03/28/09 04/09/09 9. 03/29/09 - 04/11/09 04/23/09 10. 04/12/09 - 04/25/09 05/07/09 11. 04/26/09 - 05/09/09 05/21 /09 12. 05/10/09 - 05/23/09 06/04/09 13. 05/24/09 - 06/06/09 06/18/09 14. 06/07/09 - 06/20/09 07/02/09 15. 06/21 /09 - 07/04/09 07/16/09 16. 07/05/09 - 07/18/09 07/30/09 17. 07/19/09 - 08/01/09 08/13/09 18. 08/02/09 - 08/15/09 08/27/09 19. 08/16/09 - 08/29/09 09/10/09 20. 08/30/09 - 09/12/09 09/24/09 21. 09/13/09 - 09/26/09 10/08/09 22. 09/27/09 - 10/10/09 10/22/09 23. 10/11 /09 - 10/24/09 11 /05/09 24. 10/25/09 - 11 /07/09 11 /19/09 25. 11 /08/09 - 11 /21 /09 12/03/09 26. 11 /22/09 - 12/05/09 12/17/09 27. 12/06/09 - 12/19/09 12/31 /09 MEMORANDUM Risk Management TO: Jeff Harrison, City Attorney FROM: Willard G. Yamaguchi, Risk Manager A6 DATE: November 18, 2008 RE: Flexible Spending Account IGOE Administrative Services APPROVED NOV 2 4 '08 CITY COUNCIL CITY C, ERK ISs_TR,�BUTION Utf res. q'1.l I It is hereby recommended that the City Council approve the renewal of the Flexible Benefit Plan Administrative Services Agreement for the plan year beginning January 1, 2009 and ending December 31, 2009. The renewal fees remain the same as last year and consist of a $300.00 renewal fee and a monthly administration fee of $200.00 with a total yearly cost of approximately $2,700.00 plus additional services as requested. WGY/kr cc: Judy Lehr