HomeMy WebLinkAbout1991-494
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RESOLUTION NO. 91-494
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
3 EXECUTION OF AN AGREEMENT WITH GREAT WESTERN BANK (GWB) TO PERFORM
SERVICES RELATING TO THE ADMINISTRATION OF THE PST DEFERRED
4 COMPENSATION PLAN.
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
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SECTION 1.
The Mayor is hereby authorized and directed to
execute on behalf of said City an Agreement with Great Western
Bank, to perform services relating to the Administration of the
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attached hereto, marked Exhibit "A", and incorporated herein by
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PST Deferred Compensation Plan,
a copy of said agreement is
reference as fully as though set forth at length.
SECTION 2.
The
authorization
execute
the
above
to
referenced agreement is rescinded if the parties to the agreement
fail to execute it within sixty (60) days of the passage of this
resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino
meeting
on
the
thereof,
held
at a
regular
16th
day of
, 1991, by the following vote, to
December
wit:
I I I I
I I I I
24 I I I I
25 I I I I
26 I I I I
27 I I I I
28 I I I I
1 RESOLUTION WITH
ADMINISTRATION OF
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3 council Members:
4 ESTRADA
5 REILLY
6 HERNANDEZ
7 MAUDSLEY
8 MINOR
GWB TO PERFORM SERVICES RELATING TO THE
THE PST DEFERRED COMPENSATION PLAN.
AYES
NAYS
ABSTAIN
ABSENT
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x
9 POPE-LUDLAM
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G~~~
City Clerk
MILLER
The foregoing resolution is hereby approved this
14 day of December , 1991.
Approved as to
18 form and legal content:
19 JAMES F. PENMAN,
City Attorney
19.th
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rnardino
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1 AGREEMENT
2 This Agreement is effective this 1st day of January 1992, by
3 and between CITY OF SAN BERNARDINO hereinafter referred to as CITY
4 and GREAT WESTERN BANK, a Federal Savings Bank, hereinafter
5 referred to as GREAT WESTERN:
6 WITNESSETH:
7 WHEREAS, CITY pursuant to and in compliance with sections
8 3121(b) (7) (F) and 457 (b) of the Internal Revenue Code of 1986,
9 has established a Deferred Compensation Plan, hereinafter referred
10 to as PLAN; and
11 WHEREAS, CITY desires to utilize
12 performance of certain services in
13 administration of the PLAN; and
14 WHEREAS, GREAT WESTERN desires to provide such services
15 subject to the terms and conditions set forth herein;
16 NOW THEREFORE, CITY and GREAT WESTERN agree as follows:
17 1. TERM: This Agreement shall remain in effect for a
18 period of one year from the effective date hereof, and shall not
19 be terminated prior to that time except for "Cause" as that term
20 is hereinafter defined. For purposes of this Agreement, the term
21 "Cause" shall mean the failure of either party to perform any or
22 all of its obligations as defined herein. The non-defaulting party
23 shall give the defaulting party written notice which shall specify
24 the particulars of the default. If such default is not cured
25 within sixty (60) days from the end of the month in which notice
26 of default is given, the non-defaulting party may terminate the
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GREAT WESTERN in the
connection with the
City of Sn Bdno. Res. No. 91-494
.
EXHIBIT "A"
1 Agreement effective thirty (30) days after the end of the sixty
2 (60) day period.
S For purposes of this Agreement, "Contract Year" shall mean
4 the period of time between the effective date of the Contract, and
5 the same day of the month in each succeeding year; the first
6 contract Year, however, shall be extended, if necessary in order
7 to ensure that every Contract Year will end on the last day of a
8 calendar month.
9 Notwithstanding the above, this Agreement may be terminated
10 by either party, with or without "Cause" as that term may be
11 defined herein, upon the giving of ninety (90) days written notice
12 to the other party.
13 2. FUNDING: CITY may fund this Agreement by forwarding
14 participant deferrals to GREAT WESTERN at such times as it may see
15 fit.
16 3. TERMINATION: Upon the effective date of termination of
17 this Agreement, other than for Cause as defined above, the
18 following shall occur:
19 A. GREAT WESTERN shall issue reports to CITY detailing
20 the status of PLAN assets no later than twenty (20) business days
21 after the end of the month in which termination becomes effective.
22 B. CITY may request liquidation and withdrawal of PLAN
23 assets. If termination is for Cause, GREAT WESTERN shall disburse
24 those funds deposited in GREAT WESTERN, within thirty (30) days of
25 the effective date of termination.
26 If termination is due to non-renewal of this
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1 Agreement, GREAT WESTERN shall disburse those funds deposited in
2 Great Western Savings, not sUbject to penalty for early
3 withdrawal, within ninety (90) days of the effective date of
4 termination.
5 4. CITY agrees to:
6 A. Cause appropriate deductions to be made from such
7 payroll(s) as may be applicable.
B.
Send by check or wire transfer the amount of the
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9 total deductions to:
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Great Western Bank
Deferred Compensation
P.o. Box 6350
Northridge, California
Department
91328
or to such other facility or in such other manner as may be
mutually agreed upon between GREAT WESTERN and CITY.
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C.
Provide, in such form as agreed upon by CITY and
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GREAT WESTERN, a deferral listing with respect to participant sub-
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accounts to include not less than the following:
1.
Name of Participant
2.
Social Security Number of participant
Amount to be credited to participant's sub-
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account(s)
GREAT WESTERN agrees to:
D. Establish a sub-account for each participant.
E. Credi t the amounts sent by CITY to the sub-
account(s) of the various participants.
F. Funds invested in the option described herein as
"GWBIA" will accrue interest as of the date of receipt by GREAT
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1 WESTERN.
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10 period.
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12 period.
13 F. Interest/Earnings credited to each sub-account
14 during the period.
15 G. Total value of each sub-account.
16 H. Summary totals of the PLAN.
17 GREAT WESTERN agrees to provide quarterly statements to
18 participants in the PLAN, no later than twenty (20) days following
19 the end of each calendar quarter. Each statement shall identify
20 the transactions which have occurred in the participant's sub-
21 account at the beginning and the end of the preceding quarter.
22 GREAT WESTERN agrees to maintain the records necessary to
23 produce the above mentioned reports, and agrees that all records
24 shall be the property of CITY and that, in the event this
25 Agreement is terminated for any reason, GREAT WESTERN will provide
26 CITY a copy of such records, in hard copy or such other form as
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5. RECORD KEEPING AND REPORTS: GREAT WESTERN agrees to
furnish CITY, not later than twenty (20) days following the end of
each month and each quarter a report regarding the status of the
PLAN containing the following information:
A. Each participant's name.
B. Each participant's Social Security Number.
C. Each participant's sub-account number.
D. Deposits credited to each sub-account during the
E.
Withdrawals
the
from
each
during
sub-account
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1 mutually agreed upon between GREAT WESTERN and CITY, within ninety
2 (90) days after the effective date of termination. CITY agrees
3 that all related computer tapes, discs and programs shall remain
4 the property of GREAT WESTERN.
5 GREAT WESTERN agrees that all information supplied to and all
6 work processed or completed by GREAT WESTERN shall be held to be
7 confidential and will not be disclosed to anyone other than CITY
8 except as required by law.
9 6. DISTRIBUTIONS: Upon receipt of authorized written
10 instructions from CITY, in such form and with such authorization
11 as mutually agreed upon by GREAT WESTERN and CITY, GREAT WESTERN
12 agrees to process the payment of benefits to participants and
13 beneficiaries in accordance with PLAN. Distribution requests
14 received by the last business day of the current month will be
15 processed on or before the last business day of the following
16 month. The above notwithstanding, GREAT WESTERN will cooperate
17 with CITY to not unreasonably delay distribution requested in
18 conjunction with "emergency withdrawals", as defined in the PLAN.
19 GREAT WESTERN agrees to withhold appropriate Federal and
20 State income taxes, according to instructions set forth on form W-
21 4 completed by the participant, to remit such withholdings to
22 proper taxing authorities, and to issue net funds to
23 participant(s) or beneficiary (ies) in accordance with instructions
24 on the Distribution Request Form. GREAT WESTERN agrees to perform
25 required monthly, quarterly and annual reporting of withholdings
26 to appropriate taxing authorities. GREAT WESTERN agrees to issue
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1 appropriate annual wage and tax statements to those participants
2 and beneficiaries who received distribution(s) during the
3 preceding year and to retain a copy of such information on file
4 for the period required by law. GREAT WESTERN agrees to provide
5 CITY a monthly report of all disbursements made during the
6 previous month.
7 7. INVESTMENT VEHICLES:
8 the herein described services
9 investment vehicles.
10 Great Western Bank Indexed Account ("GWBIA").
11 The investment vehicle identified as GWBIA shall be savings
12 accounts with GREAT WESTERN. Each such account shall be subject
13 to rules, regulations and statutes to which GREAT WESTERN is
14 subject, as promulgated by the Office of Thrift Supervision (OTS),
15 the Federal Deposit Insurance Corporation (FDIC) and other such
16 regulatory authorities.
17 GREAT WESTERN agrees to accept PLAN funds for investment in
18 GWBIA. PLAN funds will earn interest by whichever of the
19 following methods results in the highest rate payable:
20 A. The rate of interest for all funds received during
21 the term of the contract shall be the annualized yield obtained
22 from the use of the over-the-counter rate quotation for the 90 Day
23 United States Government Treasury Bill plus twenty-five (25) basis
24 points, in effect on the last business day of each calendar
25 quarter. This effective annualized yield will be guaranteed for
26 the succeeding calendar quarter regardless of any subsequent
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GREAT WESTERN agrees to provide
for CITY with the following
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3 % (T.B.D.)
4 B. Such other yield as declared by Great Western and
5 shall not be lower than A. above.
6 Interest will accrue daily, using the 365/360 day method,
7 will be credited monthly, on the last day of the month, and will
8 be automatically reinvested to allow for monthly compounding.
9 8. ENROLLMENT SERVICES: GREAT WESTERN agrees to process,
10 or arrange to have processed, the enrollment of eligible employees
11 who participate in the PLAN. GREAT WESTERN agrees to provide
12 informational and promotional material pursuant to the PLAN for
13 distribution to employees of CITY, subject to approval of such
14 material by CITY, such approval not to be unreasonably withheld.
15 CITY agrees to allow and facilitate the periodic distribution of
16 such material to employees.
17 GREAT WESTERN agrees to conduct, or arrange to have
18 conducted, group presentations periodically for employees of CITY,
19 to explain the PLAN. CITY agrees to facilitate the scheduling of
20 such presentations and to provide facilities at which satisfactory
21 attendance can be expected. GREAT WESTERN agrees that qualified
22 personnel will be made available periodically to discuss the PLAN
23 with individual employees of CITY.
24 9. TITLE AND OWNERSHIP: CITY shall at all times be the
25 unrestricted owner of all PLAN assets, in accordance with IRC 457
26 provisions.
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change in the 90 Day United States Treasury Bill yield.
The current rate/yield is: Rate 5.43 % Yield 5.65
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1 10. PRIVITY OF CONTRACT: GREAT WESTERN shall have no
2 privity of contract with PLAN participants. GREAT WESTERN agrees
3 not to accept or honor instructions which may be submitted by
4 participants without written authorization from CITY.
5 11. FEES AND EXPENSES: GREAT WESTERN shall receive from
6 CITY an administration fee equal to $.46 for each Plan "PST"
7 participant account submitted each bi-weekly pay period. Such fee
8 shall be paid to GREAT WESTERN by CITY at the time of submission
9 of participant account data. No fees will be assessed until such
10 time as the Agreement may be funded.
11 12. CIRCUMSTANCES EXCUSING PERFORMANCE: The performance
12 by the parties to this AGREEMENT is subject to force maieure and
13 shall be excused for the time and to the extent that it is
14 prevented by fires, power failures, strikes, acts of God,
15 restrictions imposed by government or governmental agency, or
16 delays beyond the delayed party's control. Failures of or
17 defaults of participants, employers, or investment vehicles shall
18 excuse performance by GREAT WESTERN of the duties affected thereby
19 to the extent and for the time that it is prevented from
20 performing them.
21 13. INDEMNIFICATION: Each party to this Agreement shall
22 indemnify and hold the other party, its officers, agents and
23 employees harmless from all damages, losses, costs and expenses,
24 including attorney fees, amounts paid in settlement, judgements,
25 and any other legal expense, arising from the negligence or
26 wrongful conduct, whether negligent or intentional, of the
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1 indemnifying party or of its officers, employees or contractors.
2 GREAT WESTERN shall not be liable for investment performance,
3 except as expressly provided in this Agreement.
4 14. ASSIGNABILITY: No party to this Agreement shall assign
5 its rights or delegate its duties or responsibilities under this
6 Agreement, or sub-contract any of its responsibilities hereunder,
7 without the prior written approval of the other party. Such
8 approval shall not be unreasonably withheld. Unless otherwise
9 expressly stated in such approval by a party, any such assignment
10 or delegation shall not relieve the assignor or delegator of any
11 of its duties and obligations under this Agreement.
12 15. PARTIES BOUND: This Agreement and the provisions thereof
13 shall be binding upon and shall inure to the benefit of the
14 successors and assigns of the respective parties.
15 16. APPLICABLE LAW: This Agreement shall be construed in
16 accordance with the laws operating within the State of California.
17 17. UNLAWFUL PROVISIONS: In the event any provisions of
18 this Agreement shall be held illegal or invalid for any reason,
19 said illegality or invalidity shall not affect the remaining parts
20 of the Agreement, but the same shall be construed and enforced as
21 if said illegal or invalid provision had never been inserted
22 herein. Notwithstanding anything contained herein to the
23 contrary, no party to this Agreement will be required to perform
24 or render any services hereunder, the performance or rendition of
25 which would be in violation of any laws relating thereto.
26 18. MODIFICATION: This writing is intended both as the
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1 final expression of the Agreement between the parties hereto with
2 respect to the included terms and as a complete and exclusive
3 statement of the terms of the Agreement, pursuant to California
4 Code of civil Procedures section 1856 or its successor(s). No
5 modification of this Agreement shall be effective unless and until
6 such modification is evidenced by a writing signed by both
7 parties.
8 19. NOTICES: All notices and demands to be given under this
9 Agreement by one party to another shall be given by certified or
10 united States mail, addressed to the party to be notified or upon
11 whom a demand is being made, at the respective addresses set forth
12 in this Agreement or such other place as either party may, from
13 time to time, designate in writing to the other party. Notice
14 shall be deemed to be effective on the day the notice is received
15 by GREAT WESTERN or the CITY.
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If to GREAT WESTERN:
GREAT WESTERN BANK
Deferred Compensation Department
Northridge, California 91328
If to CITY:
CITY OF SAN BERNARDINO
300 North "D" Street
San Bernardino, California 92418
Attn: Andrew Green
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AGREEMENT WITH GREAT WESTERN BANK TO ADMINISTER A DEFERRED
COMPENSATION PLAN.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the day and year first above written.
.... ~r ".~ '1'9,1
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Date Signed
CITY of San
By:
By:
14 ATTEST:
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Approved as to
form and legal content:
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JAMES F. PENMAN.
City Attorney
By: fkc~> t . ~~---
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