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HomeMy WebLinkAboutCOW 2004-07-26 Item 3A - Resolution - Deferred Compensation Program (DCP) COUNCIL AGENDA SYNOPSIS /44y J� w s 2 i, Tnitiak ITEM NO. 41�. 1l T 1 Meetinj Date 1 Prepared by 1 Mayo review 1 Council review N 1 7/26/04 I ]ec 1 1 D a 1 I 1 I =ITEM INFORMATION 1 CAS NUMBER: 04-105 I ORIGINAL AGENDA DATE: 7/26/04 I AGENDAITEMTITLE Resolution Expanding Deferred Compensation Options CATEGORY X Dircussion Motion X Resolution Ordinance Bid Award Public Hearing Other Mtg Date7/26/04 Mt Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date 7/76/04 SPONSOR Council Mayor X Adm Svcs DCD X Finance Fire Legal Pd9'R Police NW SPONSOR'S Administsration has been researching selected deferred compensation options SUMMARY to make available to city employees in addition to the current plan, Hartford. Participation in the deferred compensation plan is voluntary for employees. REVIEWED BY COW Mtg. CA &P Cmte X. F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 6/12/04 and 6/19/04 RECOMMENDATIONS: Discuss at COW and sent to Regular Meeting for adoption. SPONSOR /ADMIN. Adopt resolution. COMMII.I'EE Discuss at COW and send resolution to Regular Mtg for adoption. ItIOSTSIIM PACIT.FUNDISOUR CEI EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N /A $N /A SN /A Fund Source: N/A Comments: `Mte11aTE tRECOR OEtOIJNCIbACTION*ez 11 7/26/04 M TG DATE ...ATTACHMENTS= A3 hz. 7/26/04 Memo dated 7/15/04 from V. Jessop Draft Resolution ::;5 F &S Cmte Minutes dated 7/19/04 City of Tula ila 6200 Southcenter Boulevard · Tukwila, Washington 98188 Steven M. Mullet, Mayor INFORMATION MEMO To: Mayor Mullet From: Vild L. Jessop, Administrative Services Dir¢ctor(Lr~ Date: July 15, 2004 Subject: Resolution Expanding Deferred Compensation. ISSUE Consider additional Deferred Compensation plans for the City, adding ICMA and Security Benefit Group, and retaining the current plan, Hartford Deferred Compensation Program. BACKGROUND Following careful research, the administration has progosed adding ICMA and Security Benefit Group as deferred compensation options. The current plan, Hartford, will remain in place. Participation in the deferred compensation plan is voluntary for employees. It is believed that providing a variety of retirement plan choices for City employees would help create a more competitive climate to attract and retain competent personnel. The Finance and Safety Committee, Administrative Services Director, Finance Director and City Administrator met on July 6 to consider the proposed resolution as well as the change in designation of the programs coordinator. . DISCUSSION After review of the resolution and ensuing discussion, a decision was made to keep administration under the Finance Director, with the Personnel Division responsible for coordination and employee education. RECOMMENDATION Forward resolution to the Committee of the Whole meeting on July 26, 2004 for discussion, and then to the Regular meeting on August 2nd for adoption. Attachment: Draft Resolution Phone: 206-433-1800 · City Hall Fax: 206-433-1833 · vvww. ci. tukwila.wa.us A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, TO EXPAND THE CITY'S CURRENT DEFERRED COMPENSATION PROGRAM AND CONFORM WITH CURRENT FEDERAL LAW AND INTERNAL REVENUE CODE TREASURY REGULATIONS. 1, WHEREAS, the City desires to expand its deferred compensation program to include the ICMA Retirement Corporation, and the Security Benefit Group of Companies, in addition to the plan already established by the Hartford Life Insurance Company, per Resolution 569, dated March 7,1977; and WHEREAS, the City desires to make available to City employees two additional retirement investment plan options provided by the ICMA Retirement Corporation and the Security Benefit Group of Companies; and WHEREAS, the City desires to incorporate the Hartford Deferred Compensation program including the Hartford Group Annuity Contract and the Hartford Administrative Services Agreement; and WHEREAS, the City desires to conform with the final and temporary Treasury regulation under 401(a)(9) of the Internal Revenue Code as published in the Federal Register on April 17, 2002, 74 FR 19887; and to conform with the changes in federal law brought about by the Economic and Tax Relief Reconciliation Act of 2001 "EGTRRA in addition to the technical corrections to EGTRRA contained in the Job Creation and Worker Assistance Act of 2002; and WHEREAS, the establishment of a deferred compensation plan serves the interest of employees and the City by providing a variety of retirement plan choices; creates increased flexibility in its personnel management system; and helps to create a more competitive climate to attract and retain competent personnel; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City adopts the deferred compensation plans of the ICMA Retirement Corporation and the Security Benefit Group of Companies. Section 2. The City executes the ICMA Retirement Corporation Declaration of Trust of the Vantage Trust Company, intending this execution to be operative with respect to any retirement deferred compensation plan subsequently established by the City, if the assets of the plan are to be invested in the Vantage Trust Company. Section 3. The assets of the Plan are to be held in trust with the City serving as trustee for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted for any other purpose. Defected Compensation 7/23/04 1 of 2 Section 4. The City adopts the Security Benefit Advisor 457 Deferred Compensation Program and establishes funding accounts with the Security Benefit Group of Companies for the receipt of the investment contributions. Section 5. The City Finance Director shall be the coordinator of all City 457 Deferred Compensation programs. The City Finance Director shall: 1. be authorized and directed to execute the plan documents for the deferred compensation program. 2. designate eligible employee participants in the plan(s) in accordance with the plan terms. 3. execute all necessary agreements with the Hartford Life Insurance Company, ICMA Retirement Corporation, and Security Benefit Group of Companies. j Section 6. The City will not permit loans under any of its select deferred compensation plans. f Section 7. The City has signed a new Administrative Services Agreement with the <`b:• ICMA Retirement Corporation and the Security Benefit Group of Companies. PASSED BY THE CITY COUNCIL OF THE QTY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2004. ATTEST AUTHENTICA l hD: Jim Haggerton, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY Filed with the City Clerk: Passed by the City Council: Office of the City Attorney Resolution Number: Deferred Compensation 7/23/04 2 of 2 Finance and Safety Committee July 19, 2004 Present: Dave Fenton, Chair; Joan Hernandez, Dennis Robertson Keith Haines, Shelley Kerslake; Viki Jessop, Alan Doerschel, Rhonda Berry, Lucy Lauterbach . Resolution Expanding Deferred Comp Choices The draft resolution had been changed to reflect the understanding that thc Finance Department will continue to coordinate the program as they have done. The cover memo is not clear about that. Viki's department will coordinate the training and information about the new programs. ICMA and Security Benefit Group plans will both be added to Hartford as employee choices. The new options will be made available at the ~begirming of 2005. Dennis asked if there would be any cost to the City, and was told there would not be. Recommend resolution to COW and Regular Meetings for adoption. 2. Regional Automated Information Network (RAIN) MOU Keith is the Chairman of the Executive Board of RAIN. The Tukwila and Bellevue Police Departments and the King County Sheriffs office have been in a pilot program to share police information through RAIN. It can now be expanded to include about twenty other police departments in thc area. Thc Federal government gave the project a grant orS1,026,862 to expand the program, and Microsoft has given $87,000. Committee members asked questions about the Memorandum of Understanding (MOU). Only Police Department members can access the information, and Tukwila officers will be able to access it from their cars. Wording was clarified on two of the points, but no substantive changes were recommended. Each city in RAIN will be able to view criminal data from other participating cities, and Keith said he thought it would be very useful. Committee approval of MOU. 3. Northfield Car Wash The City has been negotiating with the Car Wash for several years, and a draft agreement was in the packet. Because it has been worked on by five attorneys each working separately, the document is not straightforward. The financial arrangements are confusing. Basically, the City will pay Andy Berg $230,000 when the Agreement is signed. When he gets his permit to build a car wash at the Newporter, the City will pay him $600,000, for a total of $830,000. Once the Agreement is signed the City will own the Northtield site, and Andy Berg will have 15 months to vacate the site. Andy Berg will own the Newporter site at closing. If he is unable to start construction on the New Carwash within 15 months, he will deed the Newporter site over to thc City, and the City will pay him $345,000, (assuming he has already been paid $600,000) for a total of $1,175,000. The title insurance for the Northfield property will be for $1,400,000, which is the original cost of the land and the business. As part of the City cost, we'll pay for title insurance, title commitment, inspection of the property, fees for the collateral change to Frontier Bank needed for insurance, a Level One and if needed Level 2 environmental assessment, escrow fees, recording fees, and premiums for title insurance and real estate excise taxes. The Newporter land is worth $450,000-$650,000.