HomeMy WebLinkAboutCity Council - 2000-42 RESOLUTION NO. 2000-42
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH
ESTABLISHING A MONEY-PURCHASE RETIREMENT PLAN
WHEREAS, the City Council of the City of Huntington Beach (the
"Employer") has employees rendering valuable services; and
WHEREAS, the establishment of a money-purchase retirement plan
benefits employees by providing funds for retirement and funds for their
beneficiaries in the event of death; and
WHEREAS, the Employer desires that its money-purchase retirement plan
be administered by the ICMA Retirement Corporation and that the funds held
pursuant to such plan be invested in the ICMA Retirement Trust, a trust
established by public employers for the collective investment of funds held under
their retirement and deferred compensation plans:
NOW, THEREFORE, BE IT RESOLVED that the Employer hereby
establishes, or has established, a money-purchase retirement plan (the "Plan") in
the form of the ICMA Retirement Corporation Governmental Money Purchase &
Trust, pursuant to the specific provisions of the Adoption Agreement (executed
copy attached hereto as EXHIBIT "A" and incorporated herein by this reference).
The Plan shall be maintained for the benefit of eligible employees and their
beneficiaries; and
BE IT FURTHER RESOLVED that the Employer hereby authorizes the City
Treasurer to execute the Declaration of Trust of the ICMA Retirement Trust
(attached hereto as EXHIBIT "B" and incorporated herein by this reference),
intending this execution to be operative with respect to any retirement or deferred-
compensation plan subsequently established by the Employer, if the assets of the
Plan are to be invested in the ICMA Retirement Trust.
BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as
trustee under the Plan and to invest funds held under the Plan in the ICMA
Retirement Trust; and
BE IT FURTHER RESOLVED that the City Treasurer shall be the
coordinator for the Plan; shall receive reports, notices, etc., from the ICMA
Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the
Employer, any required votes under the ICMA Retirement Trust; may delegate any
administrative duties relating to the Plan to appropriate departments; and
ad]/00reso/1CMA 1
RL5 00-315
Res. No. 2000-42
BE IT FURTHER RESOLVED that the Employer hereby authorizes the City
Treasurer to execute all necessary agreements with the ICMA Retirement
Corporation incidental to the administration of the Plan.
PASSED AND ADOPTED by the City Council of the City of Huntington
Beach at a regular meeting thereof held on the 17th day of April
2000.
Mayor
ATTEST: APPROVED AS TO FORM.
d'�4� �'' " Gt '` yea/"
City Clerk City Attorney
INITIATED AND APPROVED:
2110,
Dir#ctor of Administrative Services
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City AdrAfFistrator Cit�reaT surer
ad1/0heso/1CMA
RLS 00-315
Res. No. 2000-42
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN &TRUST
ADOPTION AGREEMENT
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
401(a) Deferr-ed.C2B?engatica--'1an
This Plan is an amendment and restatement of an existing defined contribution money
purchase plan.
Yes K No
If yes, please specify the name of the defined contribution money purchase plan which
this Plan hereby amends and restates:
I. Employer: City of Huntington Beach
II. The Effective Date of the Plan shall be the first day of the Plan Year during
which the Employer adopts the Plan, unless an alternate Effective Date is
hereby specified: —- i11, 2000 --
ill. Plan Year will mean:
( } The twelve (12) consecutive month period which coincides with
the limitation year. (See Section 5.04(i) of the Plan.)
( ) The twelve (12) consecutive month period commencing on
A ril 1st. and each anniversary thereof.
IV. Normal Retirement Age shall be age 59 (not to exceed age 65).
MPP Adoption Agreement 03/25198 EE,X H 18 IT A
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Res . No. 2000-42
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate
in the Plan:
All Employees
All Full-Time Employees
-Salaried Employees
Non-union Employees
Management Employees
�Public Safety Employees
General Employees
Other (specify below)
City Administrator
The group specified must correspond to a group of the same
designation that is defined in the statutes, ordinances, rules,
regulations, personnel manuals or other material in effect in the state or
locality of the Employer.
2. The Employer hereby waives or reduces the requirement of a twelve
(12) month Period of Service for participation. The required Period of
Service shall be N/A (write N/A if an Employee is eligible to participate
upon employment).
If this waiver or reduction is elected, it shall apply to all Employees
within the Covered Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to
participate. The minimum age requirement is _NIA (not to exceed
age 21. Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one):
} Fixed Employer Contributions With Or Without
Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Par-
ticipant % of Earnings or $ID�&for the Plan Year
(subject to the limitations of Article V of the Plan). Each
Participant is required to contribute 0 % of Earnings
or $ for the Plan Year as a condition of participation
in the Plan. (Write "0" if no contribution is required.) If
Participant Contributions are required under this option, a
MPP Adoption Agreement 03/25/98 2
Res. No. 2000-42
Participant shall not have the right to discontinue or vary
the rate of such contributions after becoming a Plan
Participant.
The Employer hereby elects to"pick up„ the
Mandatory/Required Participant Contribution.
Yes X No
[Note to Employer: A determination letter issued to an
adopting Employer is not a ruling by the Internal Revenue
Service that Participant contributions that are picked up
by the Employer are not includable in the Participant's
gross income for federal income tax purposes. The
Employer may seek such a ruling.
Picked up contributions are excludable from the
Participant's gross income under section 414(h)(2) of the
Internal Revenue Code of 1986 only if they meet the
requirements of Rev. Rul. 81-35, 1981-1 C.B. 255. Those
requirements are (1) that the Employer must specify that
the contributions, although designated as employee
contributions, are being paid by the Employer in lieu of
contributions by the employee; and (2) the employee
must not have the option of receiving the contributed
amounts directly instead of having them paid by the
Employer to the plan.)
N/A( ) Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each
Participant % of Earnings for the Plan Year (subject to
the limitations of Article V of the Plan) for each Plan.Year
that such Participant has contributed % of Earnings
or$ . Under this option, there is a single, fixed rate of
Employer contributions, but a Participant may decline to
make the required Participant contributions in any Plan
Year, in which case no Employer contribution will be
made on the Participant's behalf in that Plan Year.
N/AO Variable Employer Match Of Participant Con-
tributions.
The Employer shall contribute on behalf of each Par-
ticipant an amount determined as follows (subject to the
limitations of Article V of the Plan):
MPP Adoption Agreement 03125/98 3
Res . No. 2000-42
% of the contributions made by the Participant for
the Plan Year (not including Participant contributions
exceeding % of Earnings or$ );
PLUS % of the'contributions made by the
Participant for the Plan.Year in excess of those included
in the above paragraph (but not including Participant
contributions exceeding in the aggregate % of
Earnings or$ ).
Employer Contributions on behalf of a Participant for a
Plan Year shall not exceed $ or % of
Earnings, whichever is more or less.
2. Each Participant may make a voluntary (unmatched), after-tax contri-
bution, subject to the limitations of Section 4.05 and Article V of the
Plan.
Yes No
3. Employer contributions and Participant contributions shall be
contributed to the Trust in accordance with the following payment
schedule:
vil. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
Yes X No
(b) Bonuses
Yes X No
Vill. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which
any Participant in this Plan is (or was) a participant or could possibly become
a participant, the Employer hereby agrees to limit contributions to all such
MPP Adoption Agreement 03/25/98 4
Res . No. 2000-42
plans as provided herein, if necessary in order to avoid excess contributions
(as described in Sections 5.02 and 5.03 of the Plan).
7. If the Participant is covered under another qualified defined contribution
plan maintained by the Employer, the provisions of Section 5.02(a)
through (f) of the Plait will apply unless another method has been
indicated below.
( ) Other Method. (Provide the method under which the
plans will limit total Annual Additions to the Maximum
_.. . .Permissible Amount, and will properly reduce any excess
amounts, in a manner that precludes Employer
discretion.)
2. If the Participant is or has ever been a participant in a defined benefit
plan maintained by the Employer, and if the limitation in Section 5.03 of
the Plan would be exceeded, then the Participant's Projected Annual
Benefit under the defined benefit plan shall be reduced in accordance
with the terms thereof to the extent necessary to satisfy such limitation.
'If such plan does not provide for such reduction, or if the limitation is
still exceeded after the reduction, annual additions shall be reduced to
the extent necessary in the manner described in Sections 5.02 and
5.02. The methods of avoiding the limitation described in this
paragraph will not apply if the Employer indicates another method
below.
( � Other Method. (Note to Employer: Provide below
language which will satisfy the 1.0 limitation of section
415(e) of the Code. Such language must preclude
Employer discretion. See section 1.415-1 of the
Regulations for guidance.)
3. The limitation year is the following 12-consecutive month period:
MPP Adoption Agreement 03/25/98 5
Res. No. 2000-42
IX. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1)
the minimum vesting requirements as noted and (2)the concurrence of the
Plan Administrator.
Years of
Service Percent
Completed Vesting
.Zero - -. 4 _ _- _ 100 %
One %
TWO %
Three
Four %
Five %
Six %
Seven %
Eight %
Nine %
Ten %
X. Loans are permitted under the Plan,as provided in Article XIII:
X _ Yes No
XI. The Employer hereby attests that it is a unit of state or local government or an
agency or instrumentality of one or more units of state or local government.
XII. The Plan Administrator hereby agrees to inform the Employer of any
amendments to the Plan made pursuant to Section 14.05 of the Plan or of the
discontinuance or abandonment of the Plan.
XIII. The Employer hereby appoints the ICMA Retirement Corporation as'the Plan
Administrator pursuant to the terms and conditions of the ICMA RETIREMENT
CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XIV. The Employer hereby acknowledges it understands that failure to properly fill .
out this Adoption Agreement may result in disqualification of the Plan.
MPP Adoption Agreement 03/25/98 6
04/14/00 11:45 FAX 1607
Res. No. 2000-42
APR-12-2000 10:34 CITY OF HUNTINGTON BEACH 714 374 1571 P.OB
XV. An adopting Employer may not rely on at determination letter issued by the
National or District Office of the Internal Revenue Service as evidence that the
Plan is qualified under section 401 of the Internal Revenue Code, In order to
obtain reliance with respect to plan Qualification, the Employer must apply to
the appropriate key district office fora determination letter.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this 12,day of aril , 29�2000
EMPLOYER _ _ ,.._�_ ICMA RETIREMENT CORPORATION
By, By: P44V tjd-dA
F icitiZtiCh
Tale: 0 1 r to IQ e tit Title: drk �G
Ciryr Treasurer --k I - —
Attest: Attest: r--�
MPP Adoption Agreement 03251138 7
TOTRL P.06
APR-14-2000 ee:58 97% P.07
Res . No. 2000-42
DECLARATION OF TRUST
OF
ICMA RETIREMENT TRUST
ARTICLE I. NAME AND DEFINITIONS
Section 1.1 Name: The name of the trust created hereb} is the ICMA Retirement Trust.
Section 1.2 Definitions: Wherever they are used herein, the following terms shall have the
following respective meanings:
(a) Bylaws. The by-laws referred to in Section 4.1 hereof, as amended from time
TO time:
fib) Deferred Compensation Plan. A deferred cc mpensation plan established and
maintained by a Public Employer for the purpose of providing retirement income
and other deferred benefits to its employees in accordance with the provision
of section 457 of the Internal Revenue Code.
(c) Employees.Those employees who participate in Qualified Plans and/or Deferred
Compensation Plans.
(d) Employer Trust. A trust created pursuant to an agreement between RC and a
Public Employer, or an agreement betweer: RC and a Public Employer for
administrative services that is not a trust, in either case for the purpose of
-- - investing and administering the funds set aside by such Employer in connection
with its Deferred Compensation agreements with its _employees or in
connection with its Qualified Plan.
(e) Investment Contract. A non negotiable contract entered into by the Retirement
Trust with a financial institution that provides for a fixed rate of return on
investment.
'(f) ICMA. The International City/County Management Association.
(g) ICMA Trustees. Those Trustees elected by the Public Employers in accordance
with the provisions of Section 3."1(a) hereof, who are also members or former
members of the Executive Board of ICMA.
Res . No. 2000-42
(h) RC Trustees. Those Trustees elected by the Public Employers who, i
accordance with the provisions of Section 3.1 (a) hereof, are also members c
former members of the Board of Directors of RC.
0) Internal Revenue Code. The Internal Revenue Code of 1986, as amended.
(j) Investment Adviser. The Investment Adviser that enters into a contract witt
the retirement Trust to provide advice with respect to investment of the Trus-
Property.
(k) Portfolios. The separate commingled pools of investment established by the
Investment Adviser to the Retirement Trust, under the supervision of the
Trustees, for the purpose of providing investments for the Trust Property.
(I) Public Employee Trustees. Those Trustees elected by the Public Employers
who, in accordance with the provision of Section 3.1 (a) hereof, are full-time
employees of Public Employers.
(m) Public Employer Trustees. Public Employers who serve as trustees of the
Qualified Plans or Deferred Compensation Plans.
(n) Public Employer. A unit of state or local government, or any agency or
instrumentality thereof, that has adopted a Deferred Compensation Plan or a
Qualified Plan and has executed this Declaration of Trust.
(o) Qualified Plan. A plan that is sponsored by a Public Employer for the purpose
of providing retirement income to its employees and. that satisfies the
qualification requirements of Section 401 of the Internal Revenue Code.
(p) Public Employer Trust. A trust that is established by a Public Employer in
connection with its Qualified Plan and that satisfies the requirements of Section
501 of the Internal revenue Code., or a trust established by-a Public Employer
in connection with its Deferred Compensation Plan and that satisfies the
requirements of Section 457(b) of the Internal Revenge Code.
(q) RC. The International City Management Association Retirement Corporation.
(r) Retirement Trust. The Trust created by this Declaration of Trust.
(s) Trust Property. The amounts field in the Retirement Trust as provided in
Section 2.3. The Trust Property shall include any income resulting from the
investment to the amounts so held.
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Res. No. 2000-42
ix) Trustees. The Public Employee Trustees, 1CMA Trustees and RC Trustee
elected by the Public Employers to serve as members of the Hoard of Trustee
of the Retirement Trust.
ARTICLE Il. CREATION AND PURPOSE DF THE TRUST; OWNERSHIP OF TRUST PRQPERT".
Section 2.1 Creation: (a) The Retirement Trust was created by the execution of thi.
Declaration of Trust by the initial Trustees and Public Employers and is establisher
with respect to each participating Public Employer by adoption of this Declaration o-
Trust.
(b) The Retirement Trust is hereby expressly made a part of the appropriate Qualified
Plan or Deferred Compensation Plan of each Public Employer that executes or has
executed this Declaration of Trust.
Section 2.2 Purpose and Participation: (a) The purpose of the Retirement Trust is to provide
for the commingled investment of funds held by the Public Employers in connection
with their Deferred Compensation and Qualified Plans. The Trust Property shall be
invested in the Portfolios, in Investment Contracts, and in other investments
recommended by the Investment Adviser under the supervision of the Board of
Trustees. No part of the Trust Property will be invested in securities issued by Public
Employers.
(b) Participation in the Retirement Trust is limited to M pension and profit-sharing
trusts which are maintained by Public Employers and that are exempt under sebtion
501(a) of the internal Revenue Code because the Qualified Plans related thereto
qualify under section 401 (a) of the Internal Revenue Code and (ii) deferred
compensation plans maintained by Public Employers under Section 457 of the Internal
Revenue Code (and trusts maintained by such Public Employers in connection with
such 457 plans).
Section 2.3 Ownership of Trust Property. (a) The Trustees shall have legal title to the Trust
Property. The Trust Property shall be held as follows:
(i) for the Public Employer Trustees for the exclusive benefit of the Employees;
or
(ii) in the case of a Deferred Compensation Plan maintained by a Public
Employer that has not established a Public Employer Trust for the plan, for the
Public Employer as beneficial owner of the plan's assets.
M The portion of -the corpus and income of the Retirement Trust that equitably
belongs to any Public Employer Trust may not be used for or diverted to any purpose
3
- Res. No. 2000-42
other than for the exclusive benefit of the Employees (or their beneficiaries) who a
entitled to benefits under such Public Employer Trust.
Ic) No employer's Public Employer Trust may assign any part of its equity or interes
in the Retirement Trust, and any purported assignment of such equity or interest sha;
be void.
ARTICLE M. TRUSTEES
Section 3.1 Number and Qualification of Trustees: (a)The Board of Trustees shall consist o;
nine Trustees. Five of the Trustees shall be full-time employees of a Public Employer
(the Public Employee Trustees) who are authorized by such Public Employer to serve
as Trustee. The remaining four Trustees shall consist of two persons.who, at the time
of election to the Board of Trustees, are members or former members of the
Executive Board of ICMA, and two persons who, at the time of election, are members
or former members of the Board of Directors of RC. One of the ICMA Trustees and
one of the RC Trustees shall, at the time of election, be full-time employees of Public
Employers.
(b) No person may serve as a Trustee for more than two terms in any ten-year period.
Section 3.2 Election and Term: (a) Except for the Trustees appointed to fill vacancies
pursuant to Section 3.5 hereof, the Trustees shall be elected by a vote of a majority
of the voting Public Employers in accordance with the procedures set forth in the
By-Laws.
(b) At the first election of Trustees, three Trustees shall be elected for a term of three
years, three Trustees shall be elected for a term of two years and three Trustees shall
be elected for a term of one year. At each subsequent election, three Trustees shall
be elected, each to serve for a term of three years and until his or her successor is
elected and qualified.
Section 3.3 Nominations: The Trustees who are full-time employees of Public Employers
shall serve as the Nominating Committee for the Public Employee Trustees. The
Nominating Committee shall choose candidates for Public Employee Trustee in
accordance with the procedures set forth in the By-Laws.
Section 3.4 Resignation and removal: (a) Any Trustee may resign as Trustee (without need
for prior or subsequent accounting) by an instrument in writing signed by the Trustee
and delivered to the other Trustees and such resignation shall be effective upon such
delivery, or at a later date according to the terms of the instrument. Any of the
Trustees may be removed for cause, by a vote of a majority of the Public Employers.-
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Res. No. 2000-42
(b) Each Public Employee Trustee shall resign his or her position as Trustee witr
sixty days of the date on which he or she ceases to be a full-time employee o-
Public Employer.
Section 3.5 Vacancies: The term of office of a Trustee shall terminate and a vacancy shi
occur in the event of his or her death, resignation, removal, adjudicated incompetent
or other incapacity to perform the duties of the office of a Trustee. In the case of
vacancy, the remaining Trustees shall appoint such person as they in their discretic
shall see fit (subject to the limitations set forth in this Section), to serve for ti'
unexpired portion of the term of the Trustee who has resigned or otherwise cease
to be a Trustee. The appointment shall be made by a written instrument signed by
majority of the Trustees. The person appointed -nust be the same type of Truste
(i.e., Public Employee Trustee, ICMA Trustee or PC Trustee) as the person who ha.
ceased to be a Trustee. An appointment of a Trus;ee may be made in anticipation ❑
a vacancy to occur at a later date by reason of i etirement or resignation, providec
that such appointment shall not become effective prior to such retirement o
resignation. Whenever a vacancy shall occur, until such vacancy is filled as providee
in this Section 3.5, the Trustees in office, regardless of their number, shall have al
The powers granted to the Trustees 'and shall discharge all the duties imposed upor
the Trustees by this Declaration. A written instru vent certifying the existence of a
vacancy signed by a majority of the Trustees shall be conclusive evidence of the
existence of such .vacancy.
Section 3.6 Trustees Serve in Representative Capacity: By executing this Declaration, each
Public Employer agrees that the Public Employes. Trustees elected by the Public
Employers are authorized to act as agents and representatives of the Public Employers
collectively.
ARTICLE IV. POWERS OF TRUSTEES
Section 4.1 General Powers; The Trustees shall have the power to conduct the business of
the Trust and to carry on its operations. Such power shall include, but shall not be
limited to, the power to:
(a) receive the Trust Property from the Public Employers, Public Employer Trustees
or the trustee or administrator under any Employer Trust;
(b) enter into a contract with an investment Adviser providing, among other
things, for the establishment and operation of the Portfolios, selection of the
Investment Contracts in which the Trust Property may be invested, selection
of the other investments for the Trust Property and the payment of reasonable
fees to the Investment Adviser and to any sub-investment adviser retained by
the Investment Adviser;
Res . No. 2000-42
(c) review annually the performance of the Investment Adviser and appro%
annually the contract with such Investment Adviser;
(d) invest and reinvest the Trust Property in the Portfolios, the Investmer
Contracts and in any other investment recommended by the Investmer
Adviser, but not including securities issued by Public Employers, provided the
if a Public Employer has directed that its monies be invested in one or mot,
specified Portfolios or in .an Investment Contract, the Trustees of th=
Retirement Trust shall invest such monies in accordance with such directions
(a) keep such portion of the Trust Property in cash or cash balances as thf
Trustees, from time to time, may deem to be in the best interest of tht
Retirement Trust created hereby without liability for interest thereon;
(f) accept and retain for such time as they may deem advisable any securities or
other property received or acquired by them as Trustees hereunder, whether
or not such securities or other property would normally be purchased as
investment hereunder;
(g) cause any securities or other property held as part of the Trust Property to be
registered in the name of the Retirement Trust or in the name of a nominee,
and to hold any investments in bearer form, but the books and records of the
Trustees shall at all times show that all such investments are a part of the
Trust Property;
(h) make, execute, acknowledge, and deliver any and all documents of transfer
and conveyance and any and all other instruments that may be necessary or
appropriate to carry out the powers herein granted;
(i) vote upon any stock, bonds, or other securities; give general or special proxies
or powers of attorney with or without power of substitution; exercise any
conversion privileges, subscription rights, or other options, and make any
payments incidental thereto; oppose, or consent to, or otherwise participate in,
corporate reorganizations or to other changes affecting corporate securities,
and delegate discretionary powers and pay any assessments or charges in
connection therewith; and generally exercise any of the powers of an owner
with respect to stocks, bonds, securities or other property held as part of the
Trust Property;
U) enter into contracts or arrangements for goods or services required in
connection with the operation of the Retirement Trust, including, but not
limited to, contracts with custodians and contracts for the provision of
administrative services;
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Res. NO. 2000-42
(k) borrow or raise money for the purposes of the Retirement Trust in suc
amount, and upon such terms and conditions, as the Trustees shall dee:
advisable, provided that the aggregate amount of such borrowings shall nc
exceed 30% of the value of the Trust Proper y. No person lending money i .
the Trustees shall be bound to see the application of the money lent or t
inquire into its validity, expediency or propriety or any such borrowing;
(1) incur reasonable expenses as required for the operation of the Retirement Trus
and deduct such expenses from of the Trust Property;
(m) pay expenses properly allocable to the Trust Property incurred in connectior
with the Deferred Compensation Plans, Qualified Plans, or the Employer Trust.,
and deduct such expenses from that portion of the Trust Property to whict
such expenses are properly allocable;
(n) pay out of the Trust Property all real and personal property taxes, income taxes
and other taxes of any and all kinds which, in the opinion of the Trustees, are
properly levied, or assessed under existing or future laws upon, or in respect
of, the Trust Property and allocate any such taxes to the appropriate accounts;
(o) adopt, amend and repeal the By-laws, provided that such By-laws are at all
times consistent with the terms of this Declaration of Trust;
(p) employ persons to make available interests in the Retirement Trust to
employers eligible to maintain a Deferred Compensation Plan under Section 457
or a Qualified Plan under Section 401 of the Internal Revenue Code;
(q) issue the Annual Report of the Retirement Trust, and the disclosure documents
and other literature used by the Retirement Trust;
(r) in addition to conducting the investment program authorized in Section 4.1(d),
make loans, including the purchase of debt obligations, provided that all such
loans shall bear interest at the current market rate;
(s) contract for, and delegate any powers granted hereunder to, such officers,
agents, employees, auditors and attorneys as the Trustees may select,
provided that the Trustees may not delegate the powers set forth in paragraphs
(b). (c) and (o) of this Section 4.1 and may not delegate any powers if such
delegation would violate their fiduciary duties;
(t) provide for the indemnification of the Officers and Trustees of the Retirement
Trust and purchase fiduciary insurance;
(u) maintain books and records, including separate' accounts for each Public
Employer, Public Employer Trustee or Employer Trust and such additional
Res . No. 2000-42
separate accounts as are required under, and consistent with, the Deferrer
Compensation or Qualified Plan of each Public Employer; and
(v) do all such acts, take all such proceedings, and exercise all such rights and
privileges, although not specifically mentioned herein, as the Trustees may
deem necessary or appropriate to administer the Trust Property and to carry
out the purposes of they Retirement Trust.
Section 4.2 Distribution of Trust Property: Distributions of the Trust property shall be made
to, or on behalf of, the Public Employer or Public Employer Trustee, in accordance
with the terms of the Deferred.Compensation Plans, Qualified Plans or Employer
Trusts. The Trustees of the Retirement Trust shall be fully protected in making
payments in accordance with the directions of the Public Employers, Public Employer
Trustees or trustees or administrators of any Employer Trust without ascertaining
whether such payments are in compliance with the provisions of the applicable
Deferred Compensation or Qualified Plan or Employer Trust.
Section 4.3 Execution of instruments: The Trustees may unanimously designate any one or
more of the Trustees to execute any instrument or document on behalf of all,
including but not limited to the signing or endorsement of any check and the signing
of any applications, insurance and other contracts, and the action of such designated
Trustee or Trustees shall have the same force and effect as if taken by all the
Trustees.
ARTICLE V. DUTY OF CARE AND LIABILITY OF TRUSTEES
Section 5.1 Duty of Care: In exercising the powers hereinbefore granted to the Trustees, the
Trustees shall perform all acts within their authority for the exclusive purpose of
providing benefits for the Public Employers in connection with non-trusteed Deferred
Compensation Plans and for the Public Employer Trustees, and shall perform such
acts with the care, skill, prudence and diligence in the circumstances then prevailing
that a prudent person acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of a like character and with like aims.
Section 5.2 Liability: The Trustees shall not be liable for any mistake of judgment or other
action taken in good faith, and for any action taken or omitted in reliance in good
faith upon the books of account or other records of the Retirement T rust, upon the
opinion of counsel, or upon reports made to the Retirement Trust by any of its
officers, employees or agents or by the Investment Adviser or any sub-investment
adviser, accountant, appraiser or other expert or consultant selected with reasonable
care by the Trustees, officers or employees of the Retirement Trust. The Trustees
shall also not be liable for any loss sustained by the Trust Property by reason of any
investment made in good faith and in accordance with the standard of care set forth
in Section 5.1 .
Res . No. 2000-42
Section 5.3 Bond: No Trustee shall be obligated to give any bond or other security for the
performance of any of his or her duties hereunder.
ARTICLE VI. ANNUAL REPORT TO SHAREHOLDERS
The Trustees shall annually submit to the Public Employers and Public Employer
Trustees a written report of the transactions of the Retirement Trust, including financial
statements which shall be certified by independent public accountants chosen by the
Trustees.
ARTICLE Vll. DURATION OR AMENDMENT OF RETIREMENT TRUST
Section 7.1 Withdrawal.- A Public Employer or Public Employer Trustee may, at any time,
withdraw from this Retirement Trust by delivering to the Board of Trustees a written
statement of withdrawal. In such statement, the Public Employer or Public Employer
Trustee shall acknowledge that the Trust Property allocable to the Public Employer
is derived from compensation deferred by emplc yees of such Public Employer
pursuant to its Deferred Compensation Plan or from ,:ontributions to the accounts of
Employees pursuant to a Qualified Plan, and shall designate the financial institution
fo which such property shall be transferred by the Trustees of the Retirement Trust
or by the trustee or administrator under an Employer Trust,
Section 7.2 Duration: The Retirement Trust shall continue c ntil terminated by the vote of a
majority of the Public Employers, each casting one vote. Upon termination, all of the
Trust Property shalt be paid out to the Public Employers, Public Employer Trustees or
The trustees or administrators of the Employer Trusts, as appropriate.
Section 7.3 Amendment: The Retirement Trust may be amimded by the vote of a majority
of the Public Employers, each casting one vote.
Section 7.4 Procedure: A resolution to terminate or amend the Retirement Trust or to
remove a Trustee shall be submitted to a vote of the Public Employers if: by a majority
of the Trustees so direct, or; (ii) a petition requesting a vote signed by not less than
25 percent.of the Public Employers, is submitted to the Trustees.
ARTICLE Vlll. MISCELLANEOUS
Section 8.1 Governing law: Except as otherwise required by state or local law, this
Declaration of Trust and the Retirement Trust hereby created shall be construed and
regulated by the laws of the District of Columbia.
Section 8.2 Counterparts: This Declaration may be executed by the Public Employers and
Trustees in two or more counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument.
9 _
Res. No. 2000-42
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-off icio Clerk of the City Council of said.
City, do hereby certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 17th
day of April, 2000 by the following vote.-
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio C erk of the
City Council of the City of
Huntington Beach, California