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HomeMy WebLinkAbout1983-147 20 21 22 23 24 25 26 27 28 1 83-1.41 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH GREAT WESTERN SAVINGS RELATING TO 3 THE CITY'S DEFERRED COMPENSATION PLAN. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 6 SECTION 1. The Mayor of the City of San Bernardino is hereby 7 authorized and directed to execute on behalf of said City an 8 Agreement with Great Western Savings relating to the City's 9 deferred compensation plan, a copy of which is attached hereto, 10 marked Exhibit "A" and incorporated herein by reference as fully 11 as though set forth at length. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San 14 Bernardino at an adjourned regular meeting thereof, held 15 on the 23rd day of Hay , 1983, by the following 16 vote, to wit: 17 AYES: Council Members Castaneda, Hernandez, Harks, Quiel, Hobbs, Strickler 18 19 NAYS: None ABSENT: None Abstain: Council Me~ber Reilly AV/L'7i(l/,a/h /' C1ty Clerk of day The foregoing resolution is hereby approved t . Hay , 1983. an Bernardino Approved as to form: /C~~~ City torney 1 A G R E E MEN T 2 (Depository Agreement for Deferred Compensation Plan) 3 THIS AGREEMENT is made as of this day of 4 , 1983, by and betvleen GREAT WESTEfu'l SAVINGS, a 5 federal savings and loan association, hereinafter referred to as 6 "Great Western", and the CITY OF SAN BERNARDINO, a municipal 7 corporation, hereinafter referred to as "City". 8 WHEREAS, City has adopted a Deferred Compensation Plan, -- 9 hereinafter referred to as "the Plan"; and 10 WHEREAS, City desires to utilize Great Western as one 11 investment option under the Plan, 12 Nmv, THEREFORE, City and Great \-/estern agree as follows: 13 1. City hereby designates investment certificates and 14 accounts of Great l"Iestern as one of the investment options which 15 employees of City who elect to participate, hereinafter referred 16 to as "Participants", in the Plan may select. 17 2. This agreement may be terminated at any time by either 18 City or Great l"Iestern upon written notice to the other. 19 3. Great Western agrees to accept deferred compensation 20 funds for investment in certificate accounts, bearing interest at 21 a rate to be effective as of the first day of each calendar month, 22 using whichever of the following methods results in the highest 23 interest rate payable; with funds deposited by the tenth day of 24 each month to earn interest from the first day of such month, if 25 funds remain on deposit until month's end: 26 A. The rate of interest determined on the last 27 business day of each calendar month for 90-day 28 money market rate accounts at Great Western, uith EXHIBIT ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 monthly compounding of interest. This rate \lill be )uaranteed for the succeeding calendar month, regardless of any subsequent change in thfr rate of 90-day money market rate accounts at Great Western. B. The rate of interest in effect on the last business day of each calendar month for 26-week savings accounts at Great l1estern which are accounts indexed to the 26-week U.S. Government Treasury , Dill rate, with monthly compounding of interest. This rate will be guaranteed for the succeeding calendar month, regardless of any subsequent change in the rate of 26-week savings accounts at Great Western. C. 10.00% compounded monthly. The minimum rate of interest of 10.00% compounded monthly shall be guaranteed for the term of this agreement. The savings accounts to be established under this agreement shall be monthly certificate accounts and shall be renewed at the end of each month except as herein provided, and except to the extent required to meet the withdrawal provisions of the Plan. Each such account shall be subject to the rules, regulations and statutes to which Great Western is subject as promulgated by the Federal Home Loan Dank, the Federal Savings and Loan Insurance Corporation and other such regulatory authorities. Great Western shall collateralize any amounts of deferred compensation funds invested herein not subject to insurance of accounts by the Federal Savings and Loan Insurance Corporation, adjusted monthly, with first deeds of trust on commercial, -2- 1 \industrial, or residential property. Such collateralization shall at all times equal or exceed the value of such funds as the latter 2 3 is so adjusted. For this purpose, $1.25 of the principal- amount 4 of any deed of trust shall be deemed to represent $1.00 of the 5 funds to be collateralized. 6 4. Title and ownership of all accounts established under 7 this agreement shall be held in the name of City's Deferred 8 Compensation Plan Account. , 9 5. City shall be sole custodian of and receive any 10 passbooks, investment certificates or other evidence of ownership 11 of the accounts established under this agreement. 12 6. City agrees to review and approve enrollments, changes, 13 or revocations thereto, and to send one copy of the enrollment 14 form to Great Western. Such forms shall include not less than the 15 following information: A. B. C. D. E. F. 7. In 23 its employees describing the Plan and/or setting forth the manner 24 of investment, City agrees not to utilize any such information 25 until Great Western has approved any parts which describe Great 26 Western as an investment option under the Plan. Great Western 27 agrees not to publish for distribution any literature describing 28 the Plan without the expressed written consent of City. -)- 1 8. City may schedule educational meetings periodically at 2 various places where satisfactory attendance by employees can be 3 expected. Representatives of Great Western shall have th~ right 4 to elect to participate in such meetings, provided that Great 5 Western shall bear the costs incJrred by Great Western's 6 participation. 7 9. Great Western shall have no privity of contract with the 8 participants of the Plan, and Great Western agrees not to accept. 9 or honor any instructions that may be submitted by Participants or 10 to provide any information regarding account balances or 11 transactions of any kind, without being routed through City or 12 without written permission of City. 13 10. Great Western shall only be responsible for negligence 14 committed by Great Western or its employees. City shall be 15 responsible for any error committed by City or its employees. 16 11. Except as provided in this agreement or as required by 17 law or regulations, Great Western agrees that it will make no 18 charges to City or to Participants for any obligation performed 19 under this agreement. 20 12. To assist City in effectively monitoring plan activity, 21 Great Western will provide various reports summarizing the 22 participants' investments. 23 These reports are: 24 A. Social security/account number cross reference 25 listing; 26 B. Monthly deposit transaction register; 27 C. Participant listing; 28 D. Monthly transaction register; -4- 20 21 22 23 24 25 26 1 r,. Quarterly transaction register; 2 II . 13. Notices. All notices, payments (excepting those .!payments I,lhich by mutual agreement may be made by ",ire transfer or ~other device) and written commud~cations under this agreement ishall be mailed by first class m~il, postage prepaid, addressed as F. Participant quarterly account statements. 3 4 5 6 7 follows: 8 "City" "Great Western" , 9 City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Attn: Troy Minning, Finance Dept. Great Western Savings 808 South "E" Street San Bernardino, CA 92408 Attn: Branch Manager 10 11 12 wi th a Copy To: 13 Great "lestern Savings P. O. Box 1085 14 Northridge, CA 91328 Attn: Deferred Compensation 15 Dept. 16 IN WITNESS WHEREOF, the parties have executed this agreement 17 on the day and year first above written. 18 GREAT WESTERN SAVINGS 19 By Ti tle CITY OF SAN BERNARDINO ATTEST: By Mayor City Clerk Approved as to form: 27 C~~~ 28 -5-