HomeMy WebLinkAboutRESO7295RESOLUTION NO. 7295
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
ADOPTING AMENDMENTS TO THE CITY OF PALO
ALTO DEPENDENT CARE ASSISTANCE PLAN
WHEREAS, the City of Palo Alto (the "City") maintains the
City of Palo Alto Dependent Care Assistance Plan (the "Plan"),
which is intended to qualify as a dependent care assistance program
under section 129 of the Internal Revenue Code of 1986, as amended
(the "Code"); and
WHEREAS, the City Council wishes to adopt certain technical
amendments to the Plan, as hereinafter set forth, in conformance
with amendments to the Code and regulations promulgated pursuant
thereto, effective January 1, 1993; and
WHEREAS, the City is permitted to amend the Plan pursuant
to Section 8.1 of the Plan.
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION 1. The Council hereby amends the Plan by approving
that certain document entitled "City of Palo Alto Flexible Benefits
Plan --Amended and Restated Effective January 1, 1993," a copy of
which is attached hereto and incorporated herein by reference.
SECTION 2. The Council finds that this is not a project
under the California Environmental Quality Act.
INTRODUCED AND PASSED: March 21, 1994
AYES: ANDERSEN, FAZZINO, HUBER, KNISS, MCCOWN, ROSENBAUM, WHEELER
NOES:
ABSENT: SCCHNEIDER, SIMITIAN
ABSTENTIONS
ATTEST: )' - APPROVED :
Cit Jerk ,
APPROVED AS TO FORM:
ii). 0 La
enior Asst. City Attorney
of Human Resources
440131 Le 0030868
SUBURBAN PURCHASERS GUARANTEED
QUANTITIES PLYRSUANT TO SECTION 7.02
(Annual Metered Deliveries)
12/20/93
(1)
(2)
100 Cubic Feet"
Alameda County Water District 6,714,065 13.760
Belmont County Water District 1,898,707 3.891
Brisbane, City of 224,435 0.460
Burlingame, City of 2,553,753 5.234
California Water Service Company 17,?27,547 35.297
Coastside County Water pistrict 1,061,453 2.175
Cordilleras Mutual Water Association 3,007 0.006
Daly City, City of 2,094,386 4.292
East Palo Alto Water District I,065,018 2.183
Guadalupe Valley Municipal Improvement District 254,436 0.521
Hillsborough, Town of 1,995,644 4.090
Los Trancos County Water District 52,617 0.108
Menlo Park. City of 2,066,781 4.236
Millbrae, City of 1,538,120 3.152
Milpitas, City of 4,504,533 9.232
Mountain View, City of 6,367,648 13.460
North Coast County Water District 1,872,928 3.838
Palo Alto, City of 8,331,697 17.075
Palomar Park Water District 45,643 0.094
Purissima Hills Water District 792,832 1.625
Redwood City, City of 5,333,115 10.930
San Bruno, City of 1,583,899 3.246
Skyline County Water District 88,537 0.181
Stanford University 1,479,764 3.033
Sunnyvale, City or 6,138,122 12.580
Westborough County Water District 644,172 1.320
76.127,859 156-021
* 100 cubic feet equals M.G.D. divided by 0.00000204946
▪ Figures in this column are calculated using unrounded M.G.D. values and are more precise thar, the
figures listed in colurnn (2).
"Total does not equal sum of M.G.D. figures due to rounding.
EXHIBIT A
r1TY OF PALO ALTO
DEPENDENT CARE ASSISTANCE PLAN
Amended and Restated
Effective January 1, 1993
399(111392
Septa,Aer*1993
CITY OF PALO ALTO
DEPENDENT CARE ASSISTANCE PLAN
Amended and Restated Effective January 1, 1993
TABLE OF CONTENTS
Page
ARTICLE I INTRODUCTION 1
ARTICLE 11 DEFINITIONS 1
2.1 City 1
2.2 City Council - 1
2.3 Code 1
2.4 Dependent 1
2.5 Dependent Care Assistance Account 2
2.6 Dependent Care Expenses 2
2.7 Dependent Care Service Provider 2
2.8 Effective Date 2
2.9 Eligible Employee 3
2.10 Employee 3
2.11 Employee Contribution 3
2.12 Enrollment Form 3
2.13 Flex Plan 3
2.14 highly Compensated Employee 3
2.15 Non -Highly Compensated Employee 3
2.16 Participant 3
2.17 Plan 3
2.18 Plan Administrator 4
2.19 Plan Year 4
ARTICLE III ELIGIBILITY AND PARTICIPATION 4
3.1 Commencement of Participation 4
3.2 Termination of Participation 4
3.3 Reinstatement of Former Participant 4
3.4 Reinstatement of Suspended Participant 5
3.5 Discrimination Limitations 6
ARTICLE (V ELECTION TO RECEIVE DEPENDENT CARE
ASSISTANCE 7
4.1 Election Procedure 7
4.2 Reimbursement Limitations 7
ARTICLE V DEPENDENT CARE ASSISTANCE ACCOUNTS 8
5.1 Establishment of Accounts 8
0
sqmoshar * 1+n
Page
52 Crediting of Accounts 8
5.3 Debiting of Accoun.., 8
5.4 Forfeiture of Accounts 8
ARTICLE VI REIMBURSEMENT OF DEPENDENT CARE EXPENSES 9
6.1 Claims for Reimbursement 9
6.2 Reimbursement of Expenses 10
6.3 Report to Participants On or Before January 31 of Each
Year 10
ARTICLE VII TERMINATION OF PARTICIPATION 11
ARTICLE VIII ADMINISTRATION OF PLAN 11
8.1 Plan Administrator 11
8.2 Examination of Records 12
8.3 Indemnification of Plan Administrator 12
ARTICLE IX AMENDMENT OR TERMINATION OF PLAN 13
9.1 Amendment of Plan 13
9.2 Termination of Plan 13
AR FICLE X MISCELLANEOUS PROVISIONS 13
10.1 Exclusive Benefit 13
10.2 Information To Be Furnished 13
10.3 Limitation of Rights 13
10.4 Benefits Solely From General Assets 14
10.5 Nonasssignability of Rights 14
10.6 No Guarantee of Tax Consequences 15
10.7 Indemnification of City by Participants 15
10.8 Gender and Number 16
10.9 Titles 16
10.10 Governing Law 16
10.11 Severability 16
a
September * I
ii
CITY OF PALO ALTO
DEPENDENT CARE ASSISTANCE PLAN
Amended and Restated
Effective January 1, 1993
ARTICLE I
INTRODUCTION
The City of Palo Alto Dependent Care Assistance Plan, amended and restated
effective January 1, 1993 (the "Plan"), is maintained by the City of Palo Alto. The Plan is
intended to qualify as a dependent care assistance program pursuant to Section 129 of
the Code and is to be interpreted in a manner consister: with the requirements of
Section 129 of the Code. The purpose of the Plan is to enable Participants to elect to
receive reimbursements of their dependent care expenses that are excludable from the
Participant's gross income pursuant to Section 129 of the Code.
ARTICLE II
DEFINITIONS
2.1 "City" means the City of Palo Alto.
2.2 "City Council" means the governing legislative body of the City, as
constituted from time to time.
2.3 "Code" means the Internal Revenue Code of 1986, and the regulations and
rulings issued pursuant thereto, all as in effect and amended from time to time.
2.4 "Dependent" means any person who is (a) a dependent (as defined in
Section 152 of the Code) of the Participant who is under the age of 13 and with respect
20641802
Seplomber3A. 1913.
1
to whom the Participant is entitled to an exemption pursuant to Section 151(c) of the
Code, or (b) a dependent (as defined in Section 152 of the Code) or spouse of the
Participant who is physically or mentally incapable of caring for himself or herself.
2.5 "Dependent Care Assistance Account" means the account described in
Article V hereof.
2.6 "Dependent Care Expenses" means expenses incurred by a Participant
which (a) are incurred for the care of a Dependent of the Participant or for related
household services, (b) are paid or payable to a Dependent Care Service Provider and
(c) are incurred to enable the Participant to be gainfully employed for any period for
which there are one or more Dependents with respect to the Participant. Dependent
Care Expenses shall not include expenses incurred for services outside the Participant's
household for the care of a De.pendent unless such Dependent is described in
Section 2.2(a) of the Plan or regularly spends at least eight (8) hours each day in the
Participant's household.
2.7 "Dependent Care Service Provider" means a person who provides care or
otherservices described in Section 2.4(a) of the Plan, but shall not include (a) a
Dependent Care Center (as defined in Section 21(b)(2)(D) of the Code), unless all
applicable state and local laws are satisfied, or (b) a spouse or child under the age of 19
of the Employee or a dependent with respect to whom the Employee or the Employee's
spouse is entitled to an exemption under Section 151(c) of the Code.
2.8 "Efrective Date" of the amended and restated Plan means January 1, 1993.
20900011
September )o. 1993
2
2.9 "Eligible Employee" means each Employee who is eligible to participate in
any Benefit Plan maintained by the City and whose participation is provided for in an
applicable Memorandum of Understanding or Compensation Plan.
2.10 "Employee" means a person who receives remuneration for rendering
services to the City, any portion of whose income is subject to withholding of income tax
and/or employment tax by the City, as well as any other person qualifying -as a common
law employee of the City.
2.11 "Employee Contribution" means the contribution to the Plan by a
Participant pursuant to Section 6.1 of the Flex Plan.
2.12 "Enrollment Form" means the form which 'an Employee shall complete in
order to select optional benefits and authorize Employee Contributions under the Flex
Plan.
2.13 "Flex Plan" means the City of Palo Alto Flexible Benefits P;an, as amended
from time to time.
2.14 "Highly Compensated Employee" means an Employee described in
Section 414(q) of the Code.
2.15 "Non -Highly Compensated Employee" means an Employee who is not a
Highly Compensated Employee.
2.16 "Participant" means each Employee who participates in the Plan in
accordance with Article III.
2.17 "Plan" means the City of Palo Alto Dependent Care Assistance Plan, as set
forth herein together with any and all amendments.
m et
September 3 1903
3
2.18 "Plan Administrator" means the committee or individual appointed by the
City from time to time to administer the Plan.
2.19 "Plan Year" means a 12 -month period commencing on January 1 and
ending with the last pay period of the calendar year.
ARTICLE III
ELIGIBILITY AND PARTICIPATION
3.1 Commencement of Participation. Each Eligible Employee who elects to
participate in the Plan pursuant to Section 4.2 of the Flex Plan shall commence
participation in the Plan in accordance with Section 3.1 of the Flex Plan.
3.2 Termination of Participation. A Participant will cease to be a Participant
as of the earliest of (a) the date on which the Plan terminates, (b) the date on which the
Participant ceases to be an Eligible Employee and has $0 credited to his or her account
under the Plan, or (c) the date on which the Participant's election to participate in the
Plan expires or terminates in accordance with Articles III and V of the Flex Plan.
However, ieimb-irsernents of Dependent Care Expenses shall continue to be made in
accordance with Article VII.
3.3 Reinstatement of Former Participant.
(a) A former Participant, who elects to participate in the Plan pursuant
to Section 4.2 of the Flex Plan,
(1) who once again becomes an Eligible Employee may enroll in
the Plan in accordance with Article V of the Flex Plan, or
11x479!.02
Sepseeher 30. 1996
4
(2) who at all 'imes remains an Eligible Employee may enroll in
the Plan in accordance with Sections 5.2 and 5.4 of the Flex Plan.
(b) Notwithstanding the foregoing, a Participant who terminates
participation in the Plan due to his or her termination of employment during a Plan Year
may not re -enroll in the Plan during that same Plan Year.
3.4 Reinstatement of Suspended Participant.
(a) A suspended Participant who once again becomes an Eligible
Employee after an unpaid leave of absence of 30 days or less shall resume participation
upon return to work, provided such return is within the same Plan Year. The
withholding for such a Participant shall be the same amount after the Participant resumes
participation as it was prior to the unpaid leave of absence, with no adjustment for the
time during the unpaid leave of absence when no withholding occurred. Every other
Participant who is on an unpaid leave of absence resumes participation as soon as
administratively feasible after completing, signing and filing an Enrollment Form with the
Plan Administrator, and such Enrollment Form shall be effective, subject to Section 5.4
of the Flex Plan, for the period beginning on the date determined by the Plan
Administrator and ending on the last day of the Plan Year during which such form was
filed,
(b) If a suspended Participant resumes participation after an unpaid
leave of absence in the same Plan Year as the unpaid leave of absence began, the
benefits elected for the remainder of the such Plan Year shall be identical to those
benefits, if any elected at the beginning of such Plan Year, except as otherwise permitted
in Section 5.4 of the Flex Plan.
30001102
September 30, 1993
5
3.5 Discrimination Lim tatio s.
(a) The contributions or benefits provided under the Plan shall not
discriminate in favor of Highly Compensated Employees or their dependents (as defined
in Section 152 of the Code). The Plan shall benefit Employees who qualify under a
classification which is not discriminatory in favor of Highly Compensated Employees or
their dependents. The Plan shall be considered nondiscriminatory if the average benefits
provided to Non -Highly Compensated Employees under the Plan is at least fifty-five
(55%) of the average benefits provided to Highly Compensated Employees under the
Plan. Solely for purposes of this Section 3.5, Leased Employees (within the meaning of
Section 414(n)(2) of the Code) shall be considered Employees.
(b) If the Plan Administrator determines, before or during any Plan
Year, that the Plan may fail to satisfy for such Plan Year any of the nondiscrimination
requirements set forth in Paragraph (a) above, the Plan Administrator may modify the
e!ection of those Participants who are Highly Compensated Employees. In the event that
the elections of those Participants who are Highly Compensated Employees, are _
modified, such elections shall be modified for any such affected Participant by reducing
the Employee Contribution of such affected Participant in the proportion that such
affected Participant's compensation bears to the compensation of all such affected
Participants during the Plan Year until the Plan is in compliance with the applicable
nondiscrimination requirement. For purposes of this Section 3.5(b), compensation :hall
mean wages within the meaning of Section 3401(a) of the Code (i.e., wages for purposes
of income tax withholding), at the effective date of the modification elections.
02
Sgleaber 30, 1993
6
ARTICLE IV
ELECTION TO RECEIVE DEPENDENT CARE ASSISTANCE
4.1 Election Procedure. A Participant may elect to participate in the Plan by
filing an Enrollment Form in accordance with the procedures established under the Flex
Plan.
4.2 Reimbursement Limitations. The maximum Employee Contribution which
the Participant may allocate to the Plan for any Plan Year and which the Participant may
in turn receive under the Plan in the form of dependent ,are assistance shall be the
lowest amount of the following: (a) $5,000, or $2,500 if a separate tax return is filed by a
married Participant, (b) the Participant's earned 'acome (as defined in Section 32(c)(2)
of the Code) for the calendar year (not including any amounts excluded from a
Participant's gross income in the form of dependent care assistance), or (c) the actual or
deemed earned income of the Participant's spouse for the calendar year. In the case of a
spouse who is a full-time student for at least five (5) months of the Plan Year at an
educational institution or is physically or mentally incapable of caring for himself or
herself, such spouse shall be deemed for each month during which such spouse is a
student or is incapable of caring for himself or herself, to have earned income of not less
than $200 per month if the Participant has one Dependent and $400 per month if the
Participant has two or more Dependents.
204476.62
Scpeabe * I993
7
ARTICLE V
DEPENDENT CARE ASSISTANCE ACCOUNTS
5.1 Establishment of Accounts. The City will establish a Dependent Care
Assistance Account for each Plan Year with respect to each Participant who has elected
to receive reimbursement of Dependent Care Expenses for the Plan Year.
5.2 Crediting of Accounts. As of each date compensation is regularly paid to
the Participant in a Plan Year, each Participant's Dependent Care Assistance Account
shall be credited with an amount equal to the Employee Contribution which the
Participant has elected to be withheld from his or her compensation and allocated to the
Plan on the Participant's Enrollment Form.
5.3 Debiting of Accounts. A Participant's Dependent Care Assistance Account
for each Plan Year shall be debited from time to time in the amount of any
reimbursement made pursuant to Article VI to or for the benefit of the Participant for
Dependent Care Expenses incurred during such Plan Year.
5.4 Forfeiture of Accounts. The amount credited to a Participant's Dependent
Care Assistance Account for any Plan Year shall be used only to reimburse the
Participant for Dependent Care Expenses which are incurred during such Plan Year, and
only if the Participant applies for reimbursement on or before the end of the third month
following the close of the Plan Year. For purposes of this rule, Dependent Care
Expenses shall he deemed to have been incurred at the time the services which
generated the Dependent Care Expenses were provided. Any balance remaining in the
Participant's Dependent Care Assistance Account for a Plan Year after all
reimbursements hereunder shall not be carried over to reimburse the Participant for
:r>+11t92
Sepember 3a 1943
8
Dependent Care Expenses incurred during a subsequent Plan Year, and shall not be
available to the Participant in any other form or manner, but shall remain the property
of the City, and the Participant shall forfeit all rights with respect to such balance.
ARTICLE VI
REIMBURSEMENT OF DEPENDENT CARE EXPENSES
6.1 Claims for Reimbursement. A Participant who has elected to receive
reimbursement of Dependent Care Expenses for a Plan Year may apply for
reimbursement of Dependent Care Expenses incurred by the Participant during the Plan
Year by submitting a claim in writing to the Plan Administrator or other company as may
be designated by the Plan Administrator, in such form as the Plan Administrator may
prescribe, setting forth:
(a) The amount, date, and nature of the expense with respect to which
a reimbursement is requested;
(b) The name of the person, organization or entity to which the expense
was or is to be paid;
(c) The name of the person for whom the expense was incurred, such
person's date of birth. and the relationship of such person to the Participant; and
(d) That the expense has not been reimbursed and is not reimbursable
from any other source.
Such application shall be accompanied by bills, invoices, receipts or other statements
showing that Dependent Care Expenses have been incurred and the amounts of such
xo4(a.2
Sera.ea 34 1903
9
expenses, together with any additional documentation which the Plan Administrator may
request.
6.2 Reimbursement of Expenses. The City shall reimburse the Participant
from the Participant's Dependent Care Assistance Account for Dependent Care
Expenses incurred during the Plan Year for which the Participant submits documentation
in accordance with Section 6.1. The maximum reimbursement of Dependent Care
Expenses incurred during a Plan Year which a Participant may obtain under the Plan at
any time shall be the balance of the Participant's Dependent Care Assistance Account at
the time of the request for reimbursement. The amount of any Dependent Care
Expenses not reimbursed as a result of the preceding sentence shall be carried over and
reimbursed only if and when the balance in such Account at or before the end of the
Plan Year in which such expenses are incurred permits such reimbursement. The Plan
Administrator may, from time to time, establish rules and procedures concerning
reimbursements which shall be applied to Participants in a nondiscriminatory manner.
6.3 Report to Participants On or Before January 31 of Each Year. On or
before January 31 of each year, the Plan Administrator shall furnish on the Form W-2 of
each Participant who has received dependent care assistance during the prior calendar
year, or in such other form as the Internal Revenue Service shall prescribe, the amount
of such assistance incurred during such year with respect to the Participant.
26„7602
x IW3
10
ARTICLE VII
TERMINATION OF PARTICIPATION
In the event that a Participant ceases participation in the Han in accordance with
Section 3.2 of the Plan, no further Employee Contributions shall be allocated to such
Participant's Dependent Care Assistance Account. The former Participant (or his or her
estate) shall be entitled to reimbursement for Dependent Care Expenses incurred within
the same Plan Year in which participation in the Plan is terminated provided that the
former Participant (or his or her estate) applies for such reimbursement in accordance
with Article \11. No such reimbursement shall exceed the remaining balance, if any, in
the former Participant's Dependent Care Assistance Account for the Plan Year in which
the expenses were incurred.
ARTICLE VIII
ADMINISTRATION OF PLAN
8.1 Plan Administrator. It shall be a principal duty of the Plan Administrator
to see that the Plan is carried out, in accordance with its terms, for the exclusive benefit
of persons entitled to participate in the Plan without discrimination among them. The
Plan Administrator will have full power to administer the Plan, subject to applicable
requirements of law. For this purpose, the Plan Administrator's powers will include, but
will not be limited to, the following:
(a)
To make and enforce such rules and regulations as it deems
necessary or proper for the efficient administration of the Plan, including the
G2
Scriesither 3.1 1993
11
establishment of any claims procedures that may be required by applicable provisions of
law;
(b) To interpret the Plan, its interpretation thereof in good faith to be
final and conclusive on the City, Employees, Participants and all persons claiming
benefits under the Plan;
(c) To decide, in its sole discretion, all questions concerning the Plan
and the eligibility of any person to participate in the Plan;
(d) To appoint such agents, counsel, accountants, consultants and other
persons as may be required to assist in administering the Plan; and
(e) To allocate and delegate its responsibilities under the Plan and to
designate other persons to carry out any of its responsibilities under the Plan, any such
allocation, delegation or designation to be by written instrument and in accordance with
applicable requirements of law.
8.2 Examination of Records. The Plan Administrator shall make available to
each Participant such of the records under the Plan as pertain specifically to that
Participant, for examination at reasonable times during normal business hours.
8.3 Indemnification of Plan Administrator. The City agrees to indemnify and
defend to the fullest extent permitted by law any Employee, including any former
Employee, to whom it as delegated or allocated responsibilities with respect to the
administration of the Plan, against all liabilities, damages, costs and expenses, including
attorneys' fees and amounts paid in settlement of any claims approved by the City,
occasioned by any act or omission to act in connection with the Plan, if such act or
omission does not involve bad faith, gross negligence, or willful misconduct.
]ANT862
September 30. 993
12
ARTICLE IX
AMENDMENT OR TERMINATION OF PLAN
9.1 Amendment of Plan. The City reserves the right at any time or times to
amend the provisions of the Plan to any extent and in any manner That it may deem
advisable, by a written instrument signed by an officer of the City.
9.2 Termination of Plan. The City has established the Plan with a bona fide
intention and expectation that it will be continued indefinitely, but the City will have no
obligation whatsoever to maintain the Plan for any given length cif time and may
discontinue or terminate the Plan on a prospective basis at any time without liabili*r, by a
written instrument signed by an officer of the City. Upon termination or discontinuance
of the Plan, all elections and Employee Contributions relating to the Plan shall terminate
and reimbursement shall be made only in accordance with Article VII.
ARTICLE X
MISCELLANEOUS PROVISIONS
10.1 Exclusive Benefit. This Plan shall be maintained for the exclusive benefit
of Eligible Employees, their spouses, and dependents.
10.2 Information To Be Furnished. Participants shall provide the City and the
Plan Administrator with such information and evidence, and shall sign such documents,
as may reasonably be requested from time to time for the purposes of administration of
the Plan.
10.3 Limitation of Rights. The establishment of the Man or any amendment
thereof, the creation of any fund or account, or the payment of any benefits will not be
M4*fl2
September 34 1993
13
construed as giving to any Participant or other person a legal or equitable right against
the City or the Plan Administrator except as provided in the Plan. Under no
circumstances shall the terms of employment of any Participant be modified or in any
way affected by the provisions of the Plan. The maintenance of the Plan shall not
constitute a contract of employment and participation in the Plan will not give any
Participant a right to be retained in the employ of the City. Each Employees's rights
with respect to continuing employment with the City are established by the Merit System
Rules and Regulations.
10.4 Benefits Solely From General Assets. The benefits provided hereunder will
be paid solely from the general assets of the City. The Dependent Care Assistance
Accounts established pursuant to Article V shall be for accounting purposes only and
nothing herein will be construed to require the City or the Plan Administrator to
maintain any fund or segregate any amount for the benefit of any Participant, and no
Participant or other person shall have any claim against, right to, or security or other
interest in, any fund, account or asset of the City from which any payment under the Plan
may be made, except as an unsecured general creditor of the City.
10.5 Nonassignabilitv of Rights. Neither the City nor the Plan Administrator
shall recognize any transfer. mortgage, pledge, hypothecation, order or assignment by any
Participant or beneficiary of all or any part of his or her interest under the Plan. Any
attempt by a Participant or beneficiary to assign, alienate, sell, transfer, pledge or
encumber his or her benefits shall be void. A Participant's or beneficiary's interests shall
not be subject in any manner to transfer by operation of law, and shall be exempt from
the claims of creditors or other claimants (including but not limited to debts, contracts,
02
Sqs ants 34 1993
14
liabilities, or torts) from all orders, decrees, levees, garnishments, and/or executions a:Ld
other legal or equitable process or proceedings against such Participant or beneficiary to
the full extent which may be permitted by law.
10.6 No Guarantee of Tax Consequences. Neither the City nor the Plan
Administrator makes any commitment or guarantee that any amounts paid to or for the
benefit of a Participant under the Plan will be excludable from the Participant's gross
income for fede: +1 or state income tax purposes, or that any other federal or state tax
treatment will apply to or be available to any Participant. It shall be the obligation of
each Participant to determine whether each payment under the Plan is excludable from
the Participant's gross income for federal and state income tax purposes, and to notify
the City if the Participant has reason to believe that such payment is not so excludable.
10.7 Indemnification of City by Participants. If any Participant receives one or
more reimbursements under the Plan that are not for Dependent Care Expenses or that
are includable in the Participant's gross income for any reason, upon the request of the
City, such Participant shall indemnify and reimburse th' City for any liability it may incur
for failure to withhold federal or state income tax or social security tax from such
reimbursements. However, such indemnification and reimbursement shall not exceed the
amount of additional federal and state income tax that the Participant would have owed
if the reimbursements had been made to the Participant as regular cash compensation,
pius the Participant's share of any social security tax that would have been paid on such
compensation, including any interest and penalties attributable thereto, less any
additional income and social security tax actually paid by the Participant.
20441ttE
September 3Q 1993
15
10.8 Gender and Number. Words used in the masculine, feminine or neuter
genders shall each be deemed to refer to the other, whenever the contexts are required;
and words used in the singular or plural shall each be deemed to refer to the other
whenever the contexts are required.
10.9 Titles. Titles are for convenience only and are not deemed to be a part of
the Plan.
10.10 Governing Law. The provisions of the Plan shall be construed,
administered and enforced according to applicable federal law and the laws of the State
of California.
10.11 Severability. If any provision of the Plan is held by a court of competent
jurisdiction to be invalid or unenforceable, the remaining provisions shall continue to be
fully effective.
IN WITNESS WHEREOF, the City adopts the amended and restated Plan to be
effective as of January 1, 1993.
CITY OF PALO tLTO
By:
ATTEST:
City Clerk
264:781+
Segcaber 74 1993
16