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HomeMy WebLinkAbout1979-321 < ,. ."". .'"., '~.- .;".' ~, ~~"'1. ;.4.'-:>,,'::;,C''\,jo-'., -\........ '1'>.' j;,:",,?,!,1l",~~~~!,:(:'1;; :~""--~~ , '. 1 RESOLUTION NO. 71;3,;< / 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NATIONAL PLAN COORDINATORS, INC., 3 RELATING TO SERVICES AS PLAN ADMINISTRATOR UNDER THE CITY'S DEFERRED COMPENSATION PROGRAM. 4 BE IT RESOLVED BY THE MAYOR AND COMMON. COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor of the City of San Bernardino is 7 hereby authorized and directed to execute on behalf of said City 8 an Agreement with National Plan Coordinators, Inc., relating to 9 services as Plan Administrator under the City's Deferred Compen- 10 sation Program, a copy of which is attached hereto, marked 11 Exhibit "A" and incorporated herein by reference as fully as 12 though set forth at length. I HEREBY CERTIFY that the foregoing resolution was duly 13 14 adopted by the Mayor and Common Council of the City of San 15 Bernardino at a meeting thereof, held 17 vote, to wit: /ty,n&-u ~'M:C Councilmen ~-d~e~_,W.t,d( ~~~ ~"'j ~~ ;;;;~L...~ ~'R~. ~--I 16 on the t. day of , 1979, by the following 18 AYES: 19 20 NAYS: 21 ABSENT: ~.-/ 22 ~4/lfLZ1 ~d /' C~ty Clerk 23 24 T~e foregoing resolution is ~ ,1979. day 25 of 26 27 (:::; 28 -;, " 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 ,-cC/~ '.:_' >'-'-' , I I' '/1 / It )'}' AGREEMENT (Plan Administrator - Deferred Compensation) THIS AGREEMENT is made and entered into this day of , 1979, by and between the CITY OF SAN BERNARDINO, I a municipal corporation, hereinafter called "City", and NATIONAL PLAN COORDINATORS, INC., hereinafter called "Administrator". WIT N E SSE T H: WHEREAS, City has adopted Resolution No. 11817, authoriZingl the establishment of a Deferred Compensation Plan, and City has , I i I I Compensation Plan; and l WHEREAS, it is the desire of City to contract for the services of the Administrator to perform for City certain function I I Compensation Plan relating to the dissemination of information to I I , subsequently amended and revised the Plan, and City has adopted Resolution No. 1 tj-3,;l,;l , establishing a revised Deferred in the implementation and continuing operation of the Deferred employees and the enrollment of employees in the Plan by highly- qualified personnel; to aid in the collection and disbursement of . monies to the appropriate funding media; and to assist City in the drafting of amendments to the Plan and/or attendant agree- ments necessary thereto so that said documents meet applicable regulatory requirements. NOW, THEREFORE, in consideration of the agreements, covenants, conditions, promises and legal detriments herein con- tained,the parties hereto agree as follows: 1. Term. The term of this agreement shall be for a period of three (3) years commencing on and ending at midnight on , , unless sooner ,( './" '.1. ,Iii ' &;"/\ ~ I If I' I i' I 1 terminated as hereinafter provided. 2 2. Performance of Services. Administrator may designate 3 an agent of its choice to perform such services under this agree- 4 ment as Administrator determines. Notwithstanding anything con- 5 tained in this agreement, Administrator shall be totally respon- 6 sible for any and all services performed by any such agent or any 7 subcontractor of Administrator. 8 3. Review Deferred Compensation Plan. Administrator shall 9 retain and pay all costs and compensation for legal counsel to I review the Deferred Compensation Plan and to promptly prepare and I submit to City any necessary amendments and ancillary agreements. I I Any such counsel so retained shall be a Certified Specialist in I Taxation so certified by the State Bar of the State of California. I III Such amendments to or agreements prepared by said counsel will be I prepared in strict accordance with the legal requirements and I regulations of the United States Internal Revenue Service and the II 'I I Franchise Tax Board of the State of California. Administrator 10 11 12 13 14 15 16 17 18 agrees to promptly advise the City of any changes in Federal or 19 State laws, rules and regulations that may affect the validity or 20 feasibility of the Deferred Compensation Plan or of duties under 21 the Plan. 22 4. Investment Vehicles. 23 A. The Administrator agrees to assist City concerning the 24 investment alternatives to be made available to employees 25 participating in the Plan which shall include, but not be limited 26 to, bank accounts, fixed and/or variable annuities, mutual funds, 27 life insurance, and/or other investments which are permissible 28 under the provisions of the Deferred Compensation Plan. -2- L 1 B. The Administrator agrees that when specifically re- 2 quested by City, and after City has selected the investment 3 alternatives, to design the bid specifications and solicit 4 investment proposals from the major prospective funding agencies. 5 C. The Administrator agrees to review, evaluate, and 6 analyze all responses received from the investment agencies and submit its findings to City. I D. The Administrator agrees, annually, to review, analyze,1 and evaluate the performance and status of the selected funding I ! media, together with their deferred compensation products and i I report to City any recommendations concerning possible improve- I ! 7 8 9 10 I] 12 ments in the investment contracts. 13 E. The Administrator agrees that it will review and ]4 evaluate the potential of new and relevant deferred compensation 15 investment products and inform City, from time to time, of the 16 feasibility of including new investment products under the 17 Deferred Compensation Plan. 18 5. Collection and Disbursement. 19 A. The Administrator is hereby authorized to engage the 20 services of a financial institution which may lawfully receive, 21 hold and disburse monies, deferred from income of employees of 22 City, to act as Custodian Bank. The Custodian Bank will receive 23 and hold monies from City and make disbursements upon instructions 24 from the Administrator as set forth in this Agreement. The 25 Administrator is not liable, however, for the performance of 26 Custodian Bank. 27 B. The Administrator agrees to direct City or Custodian 28 Bank to distribute such amounts to the appropriate investment -3- 1[. !I 1 media within limitations of the respective investment contracts 2 pursuant to each employee's "investment specifications" unless 3 otherwise designated by City, as provided for by the terms of the 4 Deferred Compensation Plan and Participation Agreement, or 5 modifications thereof. 6 C. The Administrator agrees to provide instructions for 7 direction of all distribution of benefits directly to City or 8 Custodian Bank or to the investment media when required on 9 instruction from City under the terms of the respective invest- 10 ment contracts in accordance with the provisions of the Deferred 11 Compensation Plan and within the scope of its authority as 12 Administrator. The distribution of benefits to participants shall 13 comply with all applicable published rules and regulations of the 14 State or Federal taxing authorities. D. The Administrator shall direct the investment media to 20 21 22 23 24 25 26 27 28 15 16 purchase and liquidate all insurance and/or annuities, securities, 17 mutual funds, savings accounts, or other approved investments 18 under the Deferred Compensation Plan, within the scope of its 19 authority as Administrator, on instructions from City. 6. Record Keeping and Reports. A. The Administrator agrees that an individual record will be established for each participating employee and contain in for- mation including, but not limited to, Social Security number, the specific amount of the participant's contribution, the allocation of the contribution to one or more funding media, the participant' beneficiary designation, and other pertinent data necessary for the efficient administration of each participant's account. -4- I 1 B. The Administrator agrees to provide data required by 2 the selected investment media to effect purchases from that 3 investment media. 4 C. Administrator shall provide all processing, accounting, 5 record keeping, and reports, in accordance with the approval of 6 City. 7 7. Responsibilities of City. 8 A. City agrees to collect all deferred amount from 9 participating employees' warrants and to remit said amounts as 10 soon as possible to the Administrator or the Custodian Bank or Administrator forappropriat~ 11 investment media as instructed by the 12 distribution. \3 B. City agrees to transmit on a timely basis any relevant 14 information requested by the Administrator relating to each 15 participating employee upon entry into the program and further 16 agrees to transmit any information relating to changes in an 17 individual participant's account. 18 C. City agrees to transmit to the Administrator on a 19 timely basis any relevant information of a participant's with- 20 drawal, termination, or request for distribution under the Plan 21 including the method and timing of any distribution. 22 D. City agrees to transmit on a timely basis any relevant 23 information requested by the Administrator relating to each 24 participating employee upon entry into the program, and further 25 agrees to transmit any information relating to changes in an 26 individual participant's account. 27 E. City agrees to provide payroll deduction procedures 28 and facilities. -5- [ I I 1 F. City agrees to provide information requested by the 2 Administrator on a timely basis and to use its best efforts to 3 assure the accuracy and completeness of all information provided. 4 8. Compensation. Administrator shall receive a sum not to 5 exceed fifty cents ($.50) per pay period per participant from' 6 City for administrative expenses. The actual charge shall be 7 based upon the total number of plan participants, whether or not 8 current contributions are being made, as of the last day of each 9 pay period. This charge shall be increased if the City offers 10 more than a total of five investment options, to a sum of 11 I twenty-five cents ($.25) per additional investment option per pay 12 period for all Plan participants for each investment option in 13 excess of five. 14 9. Termination. Either party to this agreement may 15 terminate this agreement upon ninety (90) days advance written 16 notice to the other. Upon termination of this agreement, the 17 Administrator shall transfer to City or to a successor Adminis- [8 trator designated in writing by City within thirty (30) days of 19 the date of termination, any and all records and documents relat- 20 ing to the services provided hereunder. Administrator agrees to 21 continue to hold and administer the accounts as provided herein 22 until the transfer of the records and documents provided that the 23 Administrator shall not be required or obligated to accept any 24 payments of deferred compensation from the City after the 25 termination date. 26 10. Circumstances Excusing Performance. The execution by 27 the parties of this contract is subject to force majeure and is 28 contingent upon fires and power failures, strikes, accidents, -6- 1 acts of God, weather conditions or restrictions imposed by any 1 I delayed! , 2 government or governmental agency, other delays beyond the 3 party's control or defaults by participants or employers. Failure 4 of or defaults of participants, employers, associations, or 5 trustees shall excuse performance by the Administrator thereby I 6 I prevented. 7 11. Ownership of Records. The parties agree that all 8 records shall be the property of City, that all computer tapes, 9 discs, programs and specifications shall be the property of the 10 'Administrator. 11 12. Confidentiality. All information supplied to, and all I work processed or completed by the Administrator (including outsid processing, if any) will be held to be confidential and private 12 13 14 and will not be disclosed to anyone other than City or those 15 ,persons, corporations, or governmental agencies who have a lawful 16 right to such information. 17 13. Liability. A. Administrator hereby agrees to, and shall, hold City, 19 its elective and appointive boards, commissions, officers, agents 18 20 and employees harmless from any losses and liability for damage or 21 injury which may arise from any act, negligent act, breach of 22 duty or omission of Administrator or its employees or agents in 23 the performance of the provisions of this agreement and shall 24 hold the City harmless from any loss occasioned as a result of the 25 Administrator's, its agents', or employees' performance of this 26 agreement except as hereinafter expressly specified. 27 B. Administrator shall not be liable for any damages, 28 loss of data, delay or other loss caused by power failure, except -7- 2 3 4 5 6 7 8 9 10 11 12 13 14 ]5 16 17 18 19 20 21 22 23 24 25 26 27 28 . . that the Administrator agrees to reconstruct any records thereby destroyed, in whole or in part. C. City shall use its best efforts to insure the accuracy of all data and information furnished the Administrator through its designated representative and agrees to pay the reasonable costs incurred by the Administrator for additional processing required to be performed by the Administrator as the result of erroneous data of information transmitted by the City to Administrator. 14. Insurance and Fidelity Bond. Administrator shall maintain during the life of this agreement errors and omissions insurance in the amounts of $100,000.00 for each act and $300,000. 0 for each occurrence insuring City, its boards, commissions, officers, employees and agents against loss or damages sustained by reason of any action or actions at law or in equity or any clailu or demands by reason of any error or omission which may arise from Administrator's operations hereunder whether such operations be by Administrator or by anyone directly or indirectl employed by, or acting as agent for, Administrator. Administrator shall take out and maintain during the life of this agreement a fidelity bond in the amount of at least $50,000.00 requiring the faithful discharge by Administrator of his duties under this agreement and the accounting of all monies and properties that may come into his possession or under his control under the operations of this agreement. Administrator shall furnish City concurrently with the execution hereof with satisfactory evidence of the insurance and fidelity bond required and evidence that the carrier is required to give City at least ten days prior -8- . . . 1 2 3 4 5 6 7 8 9 10 IJ 12 13 . 14 15 J6 17 18 19 20 2J 22 23 24 25 26 27 28 written notice of the cancellation or reduction in coverage of any policy or bond during the effective period of this agreement. 15. Assignability. No party to this agreement shall assign the same without the written consent of the other party thereto. Unless agreed to by the parties, no assignment shall relieve any party to this agreement of any duties or liabilities hereunder. 16. Notices. All notices and demands to be given under this agreement by one party to another shall be given by certified mail, addressed to the party to be notified or upon whom a demand is being made at the respective addresses set forth in this agreement or such other places as either party shall from time to time designate in writing. The date of service of a notice or demand shall be the receipt date on any certified mail receipt. 17. Parties Bound. This agreement and the provisions thereof shall be binding upon the respective parties and shall inure to the benefit of the same and to their successors and assigns. 18. Applicable Law. This agreement shall be constructed accordance with the laws of the State of California. inl 19. Unlawful Provisions. In the event any provision of this agreement shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the agreement but the same shall be construed and enforced as if said illegality or invalid provisions had never been inserted herein or therein. Notwithstanding anything contained herein to the contrary, no party to this agreement will be required to per- form or render any services hereunder, the performance or -9- --- " ~- " I I rendition of which would be violative of any laws, rules, or 2 !regulations relating thereto. 20, Amendments. This agreement may be amended in writing 3 4 at any time during the term hereof by the mutual consent of the 5 parties, 6 IN WITNESS WHEREOF, the parties hereto have executed this 7 agreement on the date first hereinabove written. 8 CITY OF SAN BERNARDINO ATTEST: 9 10 SHAUNA CLARK City Clerk II 12 13 14 II II ,I II Approved as to form: I, 1 i I RALPH H. PlUNClD ! C~ty Attorney 15 16 17 18 19 20 21 22 23 24 25 26 27 28 By W. R. HOLCOMB Mayor NATIONAL PLAN COORDINATORS, INC, By President By Secretary -10-