HomeMy WebLinkAboutReso 03-13 ICMA trust_Updated_AgreementRESOLUTION NO. 03-13
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING THE VANTAGECARE RHS EMPOYER INVESTMENT PROGRAM (EIP) FOR
PRE -FUNDING OTHERPOSTEMPLOYMENT BENEFITS (OPEB)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Government Accounting Standards Board (GASB) issued Statement No. 45
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions,
which requires all government employers to measure, recognize, and display other postemployment
benefits (OPEB) expenditures and related liabilities; and
WHERAS, the. City of Morro Bay ("Employer"), due to its participation in the California
Public Employee Retirement System's (Ca1PERS) health plans, is mandated by California
Government Code 22892(b)(1) of the Public Employees' Medical and Hospital Care Act (PEMHCA)
to contribute the established minimum health premium contribution for their participating active
membership and annuitants at the current monthly rate per employee and retiree; and
WIIEREAS, the Employer has determined that pre -funding this liability and placing that
money in an OPEB trust is in the best interests of the Employer; and
WHEREAS, the Employer has determined that the establishment of the retiree health savings
plan ("Plan") serves the above objective.
NOW, THEREFORE IT IS RESOLVED, that the Employer hereby adopts the Plan in the
form of the ICMA Retirement Corporation's VantageCare RHS Employer Investment Program.
BE IT FURTHER RESOLVED that. the assets of the Plan shall be held in trust, with the
Administrative Services Director serving as trustee.
PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting
thereof held on the 80' day of January 2013, by the following vote:
AYES: Irons, C. Johnson, N Johnson, Leage, Smukler
NOES: None
ABSENT• None
7
JAI\ E BOUCHER, City Clerk
"&44ut
L IRONS, Mayor
I, Jamie Boucher, Clerk of the City of Morro Bay, do hereby certify that the foregoing Resolution No.
03-13, proposed by the Administrative Services Director, was duly passed and adopted by the City
Council of the City of Morro Bay at a regular meeting thereof assembled this 811' day of January, 2013,
by the following vote:
AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler
NAYS: None
ABSENT: None
JAMI OUCHER, City Clerk
(Seal)
ADNIINISTRATIVE SERVICES AGREEMENT
Type: VantageCare RHS Employer Investment Program
Account Number: 803394
Pian number 803394
Ai)MINiSTRATIVE SERVICES AGREEMENT
l'h s Agreement, made as of the day of L1 i Lt ib 10, 2012; (herein referred to
as he "Inception Date"), between The International City/Management Association
Re irement Corporation ("ICMA-RC"), a nonprofit corporation organized and existing
un er the laws of the State of Delaware; and the City of Morro Bay ("Employer") a local
go cnnneni.al instrumentality organised and existing under the laws of the State of
Ca ifomia with an office at 595 Harbor Street, Morro Bay, California 93442,
RECITALS
En ployer acts as a public employer and is seeking to provide retiree health benefits for
its ligible employees and retirees;
IC A -RC makes available the VantageCare Retirement i'lealtb Savings Program
12, ployer Investment Program ("RHS ETP" or "Program") to public employers as a -
me tn.s of providing retiree health benefits on behalf of employees and retirees of such
cm toyer;
IC A -RC further makes available The Vantagepoint Funds and other non-proprietary,
no load, diversified mutual funds, as investment vehicles for public employer plan assets,
in luding RIIS LIP assets;
l ployer desires to find retiree health benefits by establishing an investment account
un er the RI -IS I4.IP, to be invested in one or more of The Vantagepoint Funds or other
not -proprietary mutual funds on a pooled basis;
fit ployer intends that the assets so invested ultimately shall be used to provide retiree
he.1th benefits for its eligible employees and retirees under the Program.
AGREItM.ENTS
Establishment of Account
Et ployer hereby establishes an RT-IS MP investment account ("Account") for the
pu pose of investing assets Employer intends to use to fund retiree health benefits under
th Program, Account assets will be held in trust, and invested -in accordance with the
D claration of Trust of the Integral Part Trust established by Employer.
Appointment of ICMA-RC
Ettiployer appoints ICMA-RC to act as recordkccper with respect to the Account to
perform all non -discretionary tbnetions necessary to facilitate the investment
a. ministration of Account assets, The functions to be performed by ICMA-RC and its
ants include:
o_
t e6ed
WH.. LZ:e CUOMO
Plan number 803394
(a) Allocation in accordance with Employer direction of Account assets to investment
funds made available under the Program;
(b) Maintenance of Account records reflecting amounts contributed, income, gain, or
loss credited, and amounts as allocated to provide benefits; and
(c) Provision of periodic reports to the Employer regarding the status of the Account
and Account investments.
3. Employer Duty to Furnish Information and to Revtew Transaction Confirmations
and Reports
Employer agrees to furnish to ICMA-RC on a timely basis such information as is
necessary for ICMA-RC to carry out its responsibilities with respect to the Account,
including: (a) information needed to allocate Account assets to investment funds and (b)
relevant Employer and other identifying information (including tax identification
numbers). ICMA-RC shall be entitled to rely upon the accuracy of any information that
is furnished to it by a responsible official of the Employer, and ICMA-RC shall not be
responsible for any error arising from its reliance on such information. ICMA-RC will
provide Account information in reports, statements or accountings.
For transactions for which Employer receives confirmations, if Employer notifies ICMA-
RC within 30 days of the confirmation date, ICMA-RC will correct the transaction and
the Account will be made 100% whole. For transactions for which Employer does not
receive confirmations and only receives quarterly or annual statements, if Etployer
notifies ICMA-RC within 90 days following statement end date, ICMA-RC will correct
the transaction and the Account will be made 100% whole.
4. Certain Representations and Warranties
ICMA-RC represents and warrants to Employer that:
(a) ICMA-RC is a non-profit corporation with full power and authority to enter into
this Agreement and to perform its obligations under this Agreement.
(b) ICMA-RC is an investment adviser registered as such with the Securities and
Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, LLC (a wholly owned subsidiary of ICMA-RC) is registered
as a broker -dealer with the Securities and Exchange Commission (SEC) and is a
member in good standing of Financial Industry Regulatory Authority (FINRA)
Employer represents and warrants to ICMA-RC that:
(c)
Employer is organized in the form and manner recited in the opening paragraph of
this Agreement with full power and authority to enter into and perform its
obligations under this Agreement and to act for the Account and Account
6 Seed
Plan number 803394
beneficiaries in the manner contemplated in this Agreement. Execution, delivery,
and performance of this Agreement will not conflict with any law, mile, regulation
or contract by which the Employer is bound or to which it is a party.
(d) Any information required to be retained by the Employer in connection with an
RHS file Plan shall be set forth in the RHS PIP Plan materials developed by
ICMA-RC and provided to the Employer.
(c) Employer is aware that their Account investments in The Vantagcpoint (Funds are
limited to $250,000 per fund and an aggregate of $1,000,000 per EiP plan.
5. Compensation and Payment
Ern toyer acknowledges that certain wholly -owned subsidiaries of1CMA-RC receive
co pensation from the Vantagcpoint Funds for advisory and other services furnished to
the antagepoint Funds. The tees referred to in this subsection are disclosed in the
V. !appoint Funds Prospectus and Statement of Additional Information.
Ent . toyer acknowledges and agrees that iCMA-RC does not assume any responsibility
wit t respect to the selection or retention of the Plan's investment options. Employer
sha 1 have exclusive responsibility for the Plan's investment options, including the
selection of the applicable mutual fund share class.
Em toyer further acknowledges that a fee for non-proprietary funds will be charged on
the following schedule:
Assets Fee
First $15 MM 45 bps
Next $35 MM 25 bps
Next $25 MM 15 bps
Over $75 MM 113 bps
• Th non-proprietary fund fee is charged based upon a percentage of the average daily
bal.nce of non-proprietary funds in the Account. The non-proprietary fund fee is payable
in rrears on a monthly basis as of the last business day of each calendar month and shall
he . educted from the Account. In the event that the Account's balance of nun-
prietary funds in the Account goes to zero, the non-proprietary fund fee wilt be pro -
rat d based on the number o f days the Account had a non-proprietary fund balance during
tat- month.
Th- non-proprietary fund fee will be assessed pro-rata against all the non-proprietary
fu d investments in the Account, in the event that the balance of non-proprietary funds
in IC Account is insufficient to cover the non-proprietary fund fee, the unpaid amount of
Lb fee will be deducted against the Vantagcpoint Funds investment with the largest
month -end balance. The non-proprietary fund fee will be deducted directly from the
WV 9Z:13 21/91/10
Plan number 803394
Account and will be reflected on your quarterly statement. If there are no Vantagepoint
Funds investments, ICMA-RC will invoice the client for the insufficient amount.
Any payment from non-proprietary mutual fund families or their service providers
received by ICMA-RC or its affiliates in the form of 12b-1 fees, service fees,
compensation for sub -accounting, and other services provided by ICMA-RC or its
affiliates for the non-proprietary funds will be used to offset the asset -based fee schedule
disclosed above. To the extent that such payment exceeds the non-proprietary fund fee,
the Account will be credited the difference.
6. Custody
Employer understands that amounts contributed to the Account are to be remitted directly
to Vantagepoint Transfer Agents in accordance with instructions provided to Employer in
the RHS EIP Plan materials and are not to be remitted to VantageTrust or ICIvIA-RC. In
the event that any check or wire transfer is incorrectly labeled or transferred, ICMA-RC
will return it to Employer with proper instructions.
Responsibility
(a) ICMA-RC shall not be responsible for any acts or omissions of any person other
than ICMA-RC in connection with the administration or operation of the Account.
(b) Employer is responsible for determining that there are no state or local laws that
would prohibit it from establishing the Program. Employer is also responsible for
determining that the investments selected for the Program fall within state/local
requirements.
(c) Employer understands that ICMA-RC shall not act as an investment adviser with
respect to the Employer and will not be responsible for the Employer's investment
decisions. ICMA-RC herein specifically disclaims any liability derived,
connected to or related to any such decisions.
(d) Employer agrees to indemnify and hold harmless ICMA-RC and its agents from
and against any and all claims, actions, suits or proceedings of any kind (whether
in tort, in contract, at law or in equity) brought against said parties because of any
injury or damage received or sustained by any person, persons or property arising
out of or resulting from Employer's investment decisions. Provided, however,
that Employer's obligations under this subsection shall not apply to protect
ICMA-RC in the event that damages in any such action relate to the gross
negligence or intentional misconduct of ICMA-RC.
Term
This Agreement shall be in effect for an initial term beginning on the Inception Date and
ending 5 years after the Inception Date. This Agreement will be renewed automatically
Platt number R03394
for ach succeeding year unless written notice oftermination is provided by either party
to t e other no less than. 60 days before the end of such Agreement year.
Amendments and Adjustments
(a) This Agreement may not be amended except by written instrument signed by the
parties.
(b) The parties agree that compensation For services under this Agreement and
administrative and operational arrangements may be adjusted as follows:
fCMA-RC may propose an adjustment by written notice to the Employer given at
least 60 days before the effective date of the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins. Such adjustment
shall become effective unless, within the 60 day period before the effective date
the Employer notifies ICMA-RC in writing that it does not accept such
adjustment, in which event the parties will negotiate with respect to the
adjustment. -
No failure to exorcise and no delay in exercising any right, remedy, power or
privilege hereunder shall operate as a waiver of such right, remedy, power or
privilege.
(e)
10. Notices
Al notices required to he delivered under Section 9 of this Agreement shall be delivered
pc sonally or by registered or certified mail, postage prepaid, return receipt requested, to
(i) .egal Department, iCMA Retirement Corporation, 777 North Capitol Street,
Su le 600, Washington, D.C, 20002-4240; (ii) Employer at the office set forth in the first
pa graph hereof, or to any other address designated by the party to receive the same by
wr tten notice similarly given.
11 Complete Agreement
T 's Agreement shall constitute the sole agreement between 1CMA-RC and Employer
ref ttiny to the object of this Agreement and correctly sets forth the complete rights, duties
an obligations of each party to the other as of its date. Any prior agreements, promises,
ne rotiations or: representations, verbal or otherwise, not expressly set forth in this
A+rcement are of no force and effect.
1
Governing Law
'1' is agreement shall be governed by and construed in accordance with the laws of the
S • to of California, applicable to contracts made in that jurisdiction without reference to
it, conflicts of laws provisions.
l l e61:d
INV 6Z:9 CL/91/10
Plan number 803394
In Witness Whereof, the parties hereto have executed this Agreement as of the Inception
Date first above written.
CITY OF MORRO BAY
Date ///D /i3
Signature
5u5 pry Su? v rop, iDtimeiS rep riYE 5e'a Vicss Diie.
Name and Title (Please Print)
INTERNATIONAL CITY/COUNTY MANAGEMENT
ASSOCIATION RETIREMENT CORPORATION
S
1
1:714y,
•
e,
By
Angela Montez
Assistant Corporate Secretary
icMARC
VANTAGECARE RHS EMPLOYER INVESTMENT PROGRAM (EIP)
BuiG/ingRrtirrnirntSrrarity ACCOUNT SET-UP FORM - PAGE 1 OF 2
Instructions to Employer: Please ensure that each section of this form is completed before returning it to ICMA-RC.
Provide all requested information to ensure the proper establishment of your EIP. Please contact ICMA-RC's
VantageCare RHS New Business Analyst at 800-326-7272, if you have any questions.
ICMA-RC Use Only
1. Employer #
General
Information
Primary Contact is
responsible for the day-
to-day administration
and processing of EIP
transactions. If you
wish to designate an
additional contact
for specific functions
(e.g. Contributions,
Withdrawals or
Investment Authority),
please do so in the
Alternate Contacts
section.
Plan
Implementation
Information
2. (902) Employer's Full Name: (duty OF /"/Oieg o /34 y
3. (924) Street Address: 595 y/2/2,20,. cj7.
(925)
4. (918) City:
/'1 oe,e o 0C3,1?
(919) State: en
(920) Zip Code: 93 LiW,
5. (633) Primary Contact: 5115 7 rY St/? '1 rorl
6. (634) Primary Contact Title: ADM/Iv/ 9 % QJ? 77 vL `SL=g2.1i1 CC S DM_
7. (631) Primary Contact Telephone #: ( 806 ) 7 7a - (0 2/ 7
8. (632) Primary Contact Fax #: ( 805 ) 7 - 7,30i 9
9. (PT00) Primary Contact E-mail Address: 55/CLylon&morto•bo.y.ca.as
10. (882) Employer's Federal Tax Identification Number: 95 - 0730 et( aA9
11. # of Employees: 96 12. # of Retirees: '\340
13. Deposit Medium for Contributions (624)
IS Check* ❑ Wire ❑ EFT
Note: * = default
14. Data Medium for Contribution Detail: EZLink
15. First Contribution Date: _ ^ / _ / __ _ _ _ _ (mm/dd/yyyy)
ICMA-RC • P.O. Box 96220 • Washington, DC 20090-6220 • Toll Free 800-326-7272 • vnrrticmarc.org • Fax 202-682-6439
(continue to page 2)
icnnA-RC
Building Retirement Seturiry
VANTAGECARE RHS EMPLOYER INVESTMENT PROGRAM (EIP)
ACCOUNT SET-UP FORM PAGE 2 OF 2
Employer Name
Alternate
Contacts
Use this section
to designate an
alternate contact for a
specific function (e.g.
Contributions).
Trustee Contact
Information
Allocation of EIP
Contributions
and Account
Balances
Internal Use
Only
62/7N OF NORdeo 1/4/
16.
17.
PT02 Function: Contributions
(200) Contact Name:
(200) Contact Title: (422) Email:
(420) Telephone: (_ ) (421) Fax: ( )
Address:
City: State: Zip:
PT01 Function: Withdrawals
(200) Contact Name:
(200) Contact Title: (422) Email:
(420) Telephone: ( ) (421) Fax: ( )
Address:
City: State: Zip:
18. PT Function: Investment Authority
(200) Contact Name:
(200) Contact Title: (422) Email:
(420) Telephone: ( ) (421) Fax: ( )
Address:
City: State: Zip:
The title of this person is designated in the Resolution, if required by state or local law , or the
Affirmative Statement of Adoption. If the individual appointed to the title changes, you may
use this form to update the name. To change the title of the person acting as Trustee Contact,
you must pass a resolution if your state or local law so requires. The Trustee will receive all
quarterly statements as well as confirmations for each contribution received and confirma-
tions for all reinvested dividends.
19. PT10
(200)
(210)
(310)
(305)
(320)
(420)
Trustee Name: at19/4 h/ 51.M ` 70H
Trustee Title: Poruri 5VG5 D/& (422) Email: 5s/ay-tonemorro•bay.ea t,�5
Trustee Address: ,595
Street: Higi240R 5r
City fo ao apN (325) State: CP (330) Zip: 939y.
Telephone: (805) 7 (a?/ 7 (421) Fax: (805) 77.? - 73 Ace
20. Use this section to designate your initial EIP investment allocation. Fill in the boxes with
codes of the fund(s) you want to invest in. A list of funds and codes can be found on the
EIP Fund Options Sheet. Designate whole percentages only. All designated allocation
percentages must total 100% Failure
to designate whole percentages or
total 100% may result in a delay in
processing your request. To change
your allocation in the future, please
use the RHS Employer Investment
Program Allocation Form.
ALLOCATION
Code
Percent
Code
Percent
TOTAL = 100%
641 912
ICMA-RC • P.O. Box 96220 • Washington, DC 20090-6220 • Toll Free 800-326-7272 • www.icmarc.org • Fax 202-682-6439
FRM080-013-051 1-4776-C853