11-29-1983 HUCMRegular Meeting
November 29, 1983
All Commissioners were present, also present were Mgr. Alexander,
Counsel Peterson and Ruth Hakel.
President Filk called the meeting to order at 1:00 p.m.
Motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the October 31, 1983 regular meeting, special meetings
of November 15 and November 21, 1983. Motion was unanimously carried.
The October payables were then considered. The subject of safety
glasses was discussed. It was decided to have Mgr. Alexander ask an
optician to attend the next monthly meeting so that the Commission
could be informed of proper requirements in order to meet safety
standards. A motion was made by Commissioner Lyke, seconded by
Commissioner Daggett to accept both electric and gas payables.
Motion was unanimously carried.
The Commission discussed Utility investments and approved participation
of First Bank of Minnesota in the Hutchinson Utilities Commission's
investment program as per approved guide lines.
Ruth Hakel presented the financial statements for both entities.
After discussion, a motion was made by Commissioner Daggett,
seconded by Commissioner Lyke to accept both reports. Motion was
unanimously carried.
The third quarter electric and gas budgets were reviewed by the
Commission. Both divisions are well within their guidelines.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to rescind the action taken at the October 31, 1983 meeting
regarding the purchase of a truck. The motion reads as follows:
Motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the low bid of Swanke Motors, Inc. in the amount
of $8,328.66 with payment to be made after January 1, 1984.
Motion was unanimously carried.
Motion was unanimously carried.
The following quotes were received for a 2 ton van (all quotes met
the required specifications):
y
1. Swanke Motors, Inc.
1984 GMC Van
Less trade
2. Myron Wigen Chevrolet Co.
1984 Chev Van
Less trade
3. Plowman's Inc.
1984 Ford Econaline Van
Less trade
$10,332.80
1,531.51
$10,311.95
1,391.95
$ 9,395.00
400.00
$8,801.29
$8,920.00
$8,995.00
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to accept the low quote belonging to Swanke Motors, Inc.
in the amount of $8,801.29 with payment to be made after January
1, 1984. Motion was unanimously carried.
The next order of business discussed was the replacement of the
Commission car - chev station wagon. After considering the various
needs for a vehicle, it was decided to repair the station wagon
and authorize Mgr. Alexander to get quotes for a 6 -8 passenger
4 -wheel drive. The cost of the vehicle to be included in the 1984
budget and would replace the 1975 Ford which had been "totaled out ".
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to adopt the following policy for past due accounts:
Collection of Past Due Utility Bills
All customers who have not paid their utility bills ten
days after the due date will be sent a reminder notice.
This notice requests payment and informs the customer if
a disagreement regarding a billing exists, he or she has
an opportunity to a hearing with the staff of the
Hutchinson Utilities.
Twenty days after the reminder notice, a disconnect
notice will be sent allowing from seven (7) to ten (10)
days (the exact date is specified on the notice) to pay
the bill or utilities will be disconnected.
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Summary of Changes for Plans Administered by
The ICMA Retirement Corporation
Recent changes in federal regulations concerning public
deferred compensation plans make it necessary for nearly
all plans to be amended. Accordingly, we are offering
a revision of the deferred compensation plan we admin-
ister for your employees on your behalf. Also, we have
taken this opportunity to make other desirable changes
in our administrative arrangements which we believe will
further enhance the quality of our program by increasing
your ability to directly influence our activities and policies.
These changes are reflected in the three documents which
are enclosed. We ask that you obtain a resolution of your
governing body adopting these documents. A suggested
resolution is enclosed for your convenience. The docu-
ments are as follows:
A new deferred compensation plan document which
amends and restates the existing plan. This plan has
been prepared in light of new Internal Revenue Ser-
vice regulations, was submitted to the IRS, and has
received its approval. The basic philosophy of plan
design has been to provide a plan as liberal as the law
and regulations will allow.
The existing plan provides for amendment upon our
proposal with such amendment to become effective
within 60 days unless you object in writing. Accord-
ingly, you should regard this as formal notice of plan
amendment. While governing body action is not re-
quired for plan amendments, we recommend that you
formally adopt the new plan in conjunction with the
other documents.
A Declaration of Trust for the ICMA Retirement
Trust. This is a new feature of our organizational
structure. We currently have a direct Retirement Trust
relationship with you which will continue. The new
trust establishes a Board of Trustees to be selected by
participating employees, thus giving the employers
ultimate control over the management of the funds.
Included in the trustees' responsibilities are oversight
of our performance, appointment of auditors, and
monitoring of investment goals and objectives.
The new trust arrangement has been submitted to the
Securities and Exchange Commission for its review.
As you may know, unlike the IRS, the SEC does not
approve transactions but indicates whether or not it will
take action against you if a transaction is carried out.
The SEC has given us a "no- action" letter with respect
to the Retirement Trust's compliance with the registra-
tion provisions of the federal securities laws.
The Retirement Trust has been created by a Founders
Committee of persons representative of the participants
in the RC program. They have determined that the first
elections shall be held in the early fall of 1983,
preferably September. We will need copies of your
governing body's resolution if you are to vote in the
first election or for any of your employees to be
nominated as trustees.
It is expected that all investments made on your behalf
will be held under the ICMA Retirement Trust after
it becomes effective. However, it is also expected that,
unless an employer adopts the Declaration of Trust,
its investments will not be held thereunder following
a transitional period. Therefore, while failure to adopt
the Declaration of Trust will not directly affect your
plan or have any immediate effect on the investment
of your funds, it is required for your full and continu-
ing participation in the Retirement Trust.
An amended version of your existing trust agree-
ment. The amendments are intended to clarify this
agreement and conform it to the new plan document.
These changes improve and enhance the program. The
addition of the ICMA Retirement Trust is done in the spirit
of our long- standing objective of serving the best interests
of our participants. In the event you feel a need for addi-
tional information, please feel free to call our office toll-
free at (800) 424 -9249. As always, we are prepared to
assist you.
RESOLUTION FOR PARTICIPATING EMPLOYERS
of the ICMA Retirement Corporation
RESOLUTION OF Hutchinson Utilities Commission ( "Employer ").
WHEREAS, the Employer maintains a deferred compensation plan
for its employees which is administered by the ICMA Retirement
Corporation (the Administrator); and
WHEREAS, the Administrator has recommended changes in the plan
document to comply with recent federal legislation and Internal
Revenue Service Regulations governing said plans; and
WHEREAS, the Internal Revenue Service has issued a private letter
ruling approving said plan document as complying with Section 457
of the Internal Revenue Code; and
WHEREAS, other public employers have joined together to establish
the ICMA Retirement Trust for the purpose of representing the
interests of the participating employers with respect to the
collective investment of funds held under their deferred compen-
sation plans; and
WHEREAS, said Trust is a salutary development which further advances
the quality of administration for plans administered by the ICMA
Retirement Corporation.
NOW THEREFORE BE IT RESOLVED that the Employer hereby adopts the
deferred compensation plan, attached hereto as Appendix A, as an
amendment and restatement of its present deferred compensation plan
administered by the ICMA Retirement Coprporation, which shall continue
to act as Administrator of said plan; and
BE IT FURTHER RESOLVED that the Employer hereby executes the ICMA
Retirement Trust, attached hereto as Appendix B; and
BE IT FURTHER RESOLVED that the Employer hereby adopts the trust
agreement with the ICMA Retirement Corporation, as appears at
Appendix C hereto, as an amendment and restatement of its existing
trust agreement with the ICMA Retirement Corporation, and directs
the ICMA Retirement Corporation, as Trustee, to invest all funds
held under the deferred compensation plan through the ICMA Retire-
ment Trust as soon as is practicable; and
BE IT FURTHER RESOLVED that the President shall be the coordinator
for this program and shall receive necessary reports, notices, etc.
from the ICMA Retirement Corporation as Administrator, and shall
cast, on behalf of the Employer, any required votes under the
program. Administrative duties to carry out the plan may be assigned
to the appropriate departments.
APPENDIX A
( "EMPLOYER ")
DEFERRED COMPENSATION PLAN
1. INTRODUCTION
include any amount excludable from gross income under this
The Employer hereby establishes the Employer's Deferred
Plan or any other plan described in section 4�7(b) of the
Compensation Plan, hereinafter referred to as the "Plan." The Plan
Internal Revenue Code, any amount excludable from gross
consists of the provisions set forth in this document.
income under section 403(b) of the Internal Revenue Code,
The primary purpose of this Plan is to provide retirement income
or any other amount excludable from gross income for
and other deferred benefits to the Employees of the Employer in
federal income tax purposes. Includible Compensation shall
accordance with the provisions of section 457 of the Internal
be determined without regard to any community property
Revenue Code of 1954, as amended.
laws.
This Plan shall be an agreement solely between the Employer
2,07 Joinder Agreement: An agreement entered into between an
and participating Employees.
Employee and the Employer, including any amendments or
modifications thereof. Such agreement shall fix the amount
11. DEFINITIONS
of Deferred Compensation, specify a preference among the
2.01 Account: The bookkeeping account maintained for each
investment alternatives designated by the Employer.
Participant reflecting the cumulative amount of the
designate the Employee's Beneficiary or Beneficiaries, and
Participant's Deferred Compensation, including any income,
incorporate the terms, conditions, and provisions of the Plan
gains, losses, or increases or decreases in market value
by reference.
attributable to the Employer's investment of the Participant's
2.08 Normal Compensation: The amount of compensation which
Deferred Compensation, and further reflecting any distribu-
would be payable to a Participant by the Employer for a
tions to the Participant or the Participant's Beneficiary and
taxable year if no Joinder Agreement were in effect to defer
any fees or expenses charged against such Participant's
compensation under this Plan.
Deferred Compensation.
2.09 Normal Retirement Age: Age 70, unless the Participant has
2.02 Administrator: The person or persons named to carry out
elected an alternate Normal Retirement Age by written
certain nondiscretionary administrative functions under the
instrument delivered to the Administrator prior to Separation
Plan, as hereinafter described. The Employer may remove
from Service. A Participant's Normal Retirement Age
any person as Administrator upon 60 days advance notice in
determines (a) the latest time when benefits may commence
writing to such person, in which case the Employer shall
under this Plan (unless the Participant continues employ-
name another person or persons to act as Administrator. The
ment after Normal Retirement Age), and (b) the period during
Administrator may resign upon 60 days advance notice in
which a Participant may utilize the catch -up limitation of
writing to the Employer, in which the case the Employer shall
Section 5.02 hereunder. Once a Participant has to any extent
name another person or persons to act as Administrator.
utilized the catch -up limitation of Section 5.02, his Normal
Retirement Age may not be changed.
2.03 Beneficiary: The person or persons designated by the
A Participant's alternate Normal Retirement Age may not
Participant in his Joinder Agreement who shall receive any
be earlier than the earliest date that the Participant will
benefits payable hereunder in the event of the Participant's
become eligible to retire and receive unreduced retirement
death.
benefits under the Employer's basic retirement plan covering
2.04 Deferred Compensation: The amount of Normal Compensa-
the Participant and may not be later than the date the
tion otherwise payable to the Participant which the
Participant attains age 70. If a Participant continues
Participant and the Employer mutually agree to defer
employment after attaining age 70, not having previously
hereunder, any amount credited to a Participant's Account by
elected an alternate Normal Retirement Age, the Participant's
reason of a transfer under Section 6.03, or any other amount
alternate Normal Retirement Age shall not be later than the
which the Employer agrees to credit to a Participant's
mandatory retirement age, if any, established by the
Account.
Employer, or the age at which the Participant actually
2.05 Employee: Any individual who provides services for the
separates from service if the Employer has no mandatory
Employer, whether as an employee of the Employer or as an
retirement age. If the Participant will not become eligible to
independent contractor, and who has been designated by the
receive benefits under a basic retirement plan maintained by
Employer as eligible to participate in the Plan.
the Employer, the Participant's alternate Normal Retirement
Age may not be earlier than attainment of age 55 and may not
2.06 Includible Compensation: The amount of an Employee's
be later than attainment of age 70.
compensation from the Employer for a taxable year that is
2.10 Participant: Any Employee who has joined the Plan pursuant
attributable to services performed for the Employer and that
to the requirements of Article IV.
is includible in the Employee's gross income for the taxable
year for federal income tax purposes; such term does not
2.11 Plan Year: The calendar year.
2.12 Retirement: The first date upon which both of the following
plan). For purposes of this Section 5.02, a Participant's
shall have occurred with respect to a Participant: Separation
Includible Compensation for thecurrent taxable year shall be
from Service and attainment of Normal Retirement Age.
deemed to include any Deferred Compensation for the
2.13 Separation from Service: Severance of the Participant's
taxable year in excess of the amount permitted under the
employment with the Employer. A Participant shall be
Normal Limitation, and the Participant's Includible Compen-
deemed to have severed his employment with the Employer
sation for any prior taxable year shall be deemed to exclude
for purposes of this Plan when, in accordance with the
any amount that could have been deferred under the Normal
established practices of the Employer, the employment
Limitation for such prior taxable year.
relationship is considered to have actually terminated. In the
5.03 Section 403(b) Annuities: For purposes of Sections 5.01 and
case of a Participant who is an independent contractor of the
5.02, amounts contributed by the Employer on behalf of a
Employer, Separation from Service shall be deemed to have
Participant for the purchase of an annuity contract described
occurred when the Participant's contract under which
in section 403(b) of the Internal Revenue Code shall be
services are performed has completely expired and
treated as if such amounts constituted Deferred Compensa-
terminated, there is no foreseeable possibility that the
lion under this Plan for the taxable year in which the
Employer will renew the contract or enter into a new contract
contribution was made and shall thereby reduce the
for the Participant's services, and it is not anticipated that the
maximum amount that may be deferred forsuch taxableyear.
Participant will become an Employee of the Employer.
VI. INVESTMENTS AND ACCOUNT VALUES
III. ADMINISTRATION
6.01 Investment of Deferred Compensation: All investments of
3.01 Duties of Employer: The Employer shall have the authority to
Participants' Deferred Compensation made by the Employer,
make all discretionary decisions affecting the rights or
including all property and rights purchased with such
benefits Participants which may be required in the
amounts and all income attributable thereto, shall be the sole
administration of this Plan.
property of the Employer and shall not be held in trust for
Participants or as collateral security for the fulfillment of the
3.02 Duties of Administrator: The Administrator, as agent for the
Employer's obligations under the Plan. Such property shall
Employer, shall perform nondiscretionary administrative
be subject to the claims of general creditors of the Employer,
functions in connection with the Plan, including the
and no Participant or Beneficiary shall have any vested
maintenance of Participants' Accounts, the provision of
interest or secured or preferred position with respect to such
periodic reports of the status of each Account and the
property or have any claim against the Employer except as a
disbursement of benefits on behalf of the Employer in
general creditor.
accordance with the provisions of this Plan.
6.02 Crediting of Accounts: The Participant's Account shall reflect
the amount and value of the investments or other property
IV. PARTICIPATION IN THE PLAN
obtained by the Employer through the investment of the
Participant's Deferred Compensation. It is anticipated that
4.01 Initial Participation: An Employee may become a Participant
the Employer's investments with respect to a Participant will
by entering into a Joinder Agreement prior to the beginning
conform to the investment preference specified in the
of the calendar month in which the Joinder Agreement is to
Participant's Joinder Agreement, but nothing herein shall be
become effective to defer compensation not yet earned,
construed to require the Employer to make an
q y particular
4.02 Amendment of Joinder Agreement: A Participant may amend
investment of a Participant's Deferred Compensation. Each
an executed Joinder Agreement to change the amount of
Participant shall receive periodic reports, not less frequently
compensation not yet earned which is to be deferred
than annually, showing the then - current value of his
(including the reduction of such future deferrals to zero) or to
Account.
change his investment preference (subject to such restric-
tions as may result from the nature or terms of any investment
6.03 Acceptance of Transfers: Pursuant to an appropriate written
made by the Employer). Such amendment shall become
agreement, the Employer may accept and credit to a
effective as of the beginning of the calendar month
Participant's Account amounts transferred from another
commencing after the date the amendment is executed. A
employer within the same State representing amounts held
Participant may at any time amend his Joinder Agreement to
by such other employer under an eligible State deferred
change the designated Beneficiary and such amendment
compensation plan described in section 457 of the Internal
shall become effective immediately.
Revenue Code. Any such transferred amount shall not be
treated as a deferral subject to the limitations of Article V,
V. LIMITATIONS ON DEFERRALS
provided however, that the actual amount of any deferral
5.01 Normal Limitation: Except as provided in Section 5.02, the
under the plan from which the transfer is made shall be taken
maximum amount of Deferred Compensation for any
into account in computing the catch -up limitation under
Participant for any taxable year shall not exceed the lesser of
Section 5.02.
$7,500.00 or 33 1/3 percent of the Participant's Includible
6.04 Employer Liability: In no event shall the Employer's liability to
Compensation for the taxable year. This limitation will
pay benefits to a Participant under Article VI exceed the value
ordinarily be equivalent to the lesser of $7,500.00 or 25
of the amounts credited to the Participant's Account; the
percent of the Participant's Normal Compensation.
Employer shall not be liable for losses arising from
5.02 Catch -up Limitation: For each of the last three (3) taxable
depreciation or shrinkage in the value of any investments
years of a Participant ending before his attainment of Normal
acquired under this Plan.
Retirement Age, the maximum amount of Deferred
Compensation shall be the lesser of: (1) $15,000 or (2) the
VII. BENEFITS
sum of (i) the Normal Limitation for the taxable year, and (ii)
that portion of the Normal Limitation for each of the prior
7.01 Retirement Benefits and Election on Separation from
taxable years of the Participant commencing after 1978
Service: Except as otherwise provided in this Article VII, the
during which the Plan was in existence and the Participant
distribution of a Participant's Account shall commence
was eligible to participate in the Plan (or in any other plan
during the second calendar month after the close of the Plan
established under section 457 of the Internal Revenue Code
Year of the Participant's Retirement, and the distribution of
by an employer within the same State as the Employer) less
such Retirement benefits shall be made in accordance with
the amount of Deferred Compensation for each such prior
one of the payment options described in Section 7.02.
taxable year (including amounts deferred under such other
Notwithstanding the foregoing, the Participant may irrevo-
""cably elect within 60 days following Separation from Service
to have the distribution of benefits commence on a date other
than that described in the preceding sentence which is at
least 60 days after the date such election is delivered in
writing to the Employer and forwarded to the Administrator
but not later than 60 days after the close of the Plan Year of
the Participant's Retirement.
7.02 Payment Options: As provided in Sections 7.01, 7.05 and 7.06,
a Participant may elect to have the value of his Account
distributed in accordance with one of the following payment
options, provided that such option is consistent with the
limitations set forth in Section 7.03:
(a) Equal monthly, quarterly, semi - annual or annual
payments in an amount chosen by the Participant,
continuing until his Account is exhausted;
(b) One lump sum payment;
(c) Approximately equal monthly, quarterly, semi - annual
or annual payments, calculated to continue for a period
certain chosen by the Participant,
(d) Payments equal to payments made by the issuer of a
retirement annuity policy acquired by the Employer;
(e) Any other payment option elected by the Participant
and agreed to by the Employer.
A Participant's election of a payment option must be made at
least 30 days before the payment of benefits is to commence.
If a Participant fails to make a timely election of a payment
option, benefits shall be paid monthly under option (c) above
for a period of five years.
7.03 Limitation on Options: No payment option may be selected
by the Participant under Section 7.02 unless the present value
of the payments to the Participant, determined as of the date
benefits commence, exceeds 50 percent of the value of the
Participant's Account as of the date benefits commence.
Present value determinations under this Section shall be
made by the Administrator in accordance with the expected
return multiples set forth in section 1.72 -9 of the Federal
Income Tax Regulations (or any successor provision to such
regulations).
7.04 Post - retirement Death Benefits: Should the Participant die
after he has begun to receive benefits under a payment
option, the remaining payments, if any, under the payment
option shall be payable to the Participant's Beneficiary
commencing within 60 days after the Administrator receives
proof of the Participant's death, unless the Beneficiary elects
payment under a different payment option at least 30 days
prior to the date that the first payment becomes payable to
the Beneficiary. In no event shall the Employer or
Admiqistrator be liable to the Beneficiary for the amount of
any payment made in the name of the Participant before the
Administrator receives proof of death of the Participant.
Notwithstanding the foregoing, payments to a Beneficiary
shall not extend over a period longer than (i) the Beneficiary's
life expectancy if the Beneficiary is the Participant's spouse
or (ii) fifteen (15) years if the Beneficiary is not the
Participant's spouse. If no Beneficiary is designated in the
Joinder Agreement, or if the designated Beneficiary does not
survive the Participant for a period of fifteen (15) days, then
the commuted value of any remaining payments under the
payment option shall be paid in a lump sure to the estate of
the Participant. If the designated Beneficiary survives the
Participant for a period of fifteen (15) days, but does not
continue to live for the remaining period of payments under
the payment option (as modified, if necessary, in conformity
with the third sentence of this section), then the commuted
value of any remaining payments under the payment option
shall be paid in a lump sum to the estate of the Beneficiary.
7.05 Pre - retirement Death Benefits: Should the Participant die
before he has begun to receive the benefits provided by
Sections 7.01 or 7.06, a death benefit equal to the value of the
Participant's Account shall be payable to the Beneficiary
commencing no later than 60 days after the close of the Plan
Year in which the Participant would have attained Normal
Retirement Age. Such death benefit shall be paid in a lump
sum unless the Beneficiary elects a different payment option
within 90 days of the Participant's death. A Beneficiary who
may elect a payment option pursuant to the provisions of the
preceding sentence shall be treated as if he were a Participant
for purposes of determining the payment options available
under Section 7.02; provided, however, that the payment
option chosen by the Beneficiary must provide for payments
to the Beneficiary over a period no longer than the life
expectancy of the Beneficiary if the Beneficiary is the
Participant's spouse and must provide for payments over a
period not in excess of fifteen (15) years if the Beneficiary is
not the Participant's spouse.
7.06 Disability: In the event a Participant becomes disabled before
the commencement of Retirement benefits under Section
7.01, the Participant may elect to commence benefits under
one of the payment options described in Section 7.02 on the
last day of the month following a determination of disability
by the Employer. The Participant's request for such
determination must be made within a reasonable time after
the impairment which constitutes the disability occurs. A
Participant shall be considered disabled for purposes of this
Plan if he is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death
or be of long- continued and indefinite duration. The
disability of any Participant shall be determined in
accordance with uniform principles consistently applied and
upon the basis of such medical evidence as the Employer
deems necessary and desirable.
7.07 Unforeseeable Emergencies: In the event an unforeseeable
emergency occurs, a Participant may apply to the Employer
to receive that part of the value of his account that is
reasonably needed to satisfy the emergency need. If such an
application is approved by the Employer, the Participant shall
be paid only such amount as the Employer deems necessary
to meet the emergency need, but payment shall not be made
to the extent that the financial hardship may be relieved
through cessation of deferral under the Plan, insurance or
other reimbursement, or liquidation of other assets to the
extent such liquidation would not itself cause severe financial
hardship. An unforeseeable emergency shall be deemed to
involve only circumstances of severe financial hardship to the
Participant resulting from a sudden and unexpected illness or
accident of the Participant or of a dependent (as defined in
section 152(a) of the Internal Revenue Code) of the
Participant, loss or the Participant's property due to casualty,
or other similar and extraordinary unforeseeable circum-
stances arising as a result of events beyond the control of the
Participant. The need to send a Participant's child to college
or to purchase a new home shall not be considered
unforeseeable emergencies. The determination as to
whether such an unforeseeable emergency exists shall be
based on the merits of each individual case.
VIII. NON - ASSIGNABILITY
No Participant or Beneficiary shall have any right to commute,
sell, assign, pledge, transfer or otherwise convey or encumber the
right to receive any payments hereunder, which payments and
rights are expressly declared to be non - assignable and non-
transferable.
IX. RELATIONSHIP TO OTHER PLANS AND EMPLOYMENT
AGREEMENTS
This Plan serves in addition to any other retirement, pension, or
benefit plan or system presently in existence or hereinafter
established for the benefit of the Employer's employees, and
participation hereunder shall not affect benefits receivable under
any such plan or system. Nothing contained in this Plan shall be
deemed to constitute an employment contract or agreement
between any Participant and the Employer or to give any
Participant the right to be retained in the employ of the Employer.
Nor shall anything herein be construed to modify the terms of any
employment contract or agreement between a Participant and the
Employer.
�(. AMENDMENT OR TERMINATION OF PLAN
The Employer may at any time amend this Plan provided that it
transmits such amendment in writing to the Administrator at least
30 days prior to the effective date of the amendment. The consent
of the Administrator shall not be required in order for such
amendment to become effective, but the Administrator shall be
under no obligation to continue acting as Administrator hereunder
if it disapproves of such amendment. The Employer may at any
time terminate this Plan.
The Administrator may at any time propose an amendment to
the Plan by an instrument in writing transmitted to the Employer at
least 30 days before the effective date of the amendment. Such
amendment shall become effective unless, within such 30 -day
1
I
period, the Employer notifies the Administrator in writing that it
disapproves such amendment, in which case such amendment
shall not become effective. In the event of such disapproval, the
Administrator shall be under no obligation to continue acting as
Administrator hereunder.
No amendment or termination of the Plan shall divest any
Participant of any rights with respect to compensation deferred
before the date of the amendment or termination.
XI. APPLICABLE LAW
This Plan shall be construed under the laws of the state where
the Employer is located and is established with the intent that it
meet the requirements of an "eligible State deferred compensation
plan" under section 457 of the Internal Revenue Code of 1954, as
amended. The provisions of this Plan shall be interpreted wherever
possible in conformity with the requirements of that section.
XII. GENDER AND NUMBER
The masculine pronoun, whenever used herein, shall include the
feminine pronoun, and the singular shall include the plural, except
where the context requires otherwise.
i
I
ARTICLE t. Name and Definitions
DECLARATION OF TRUST
of
ICMA RETIREMENT TRUST
SECTION 1.1. Name. The Name of the Trust created hereby is the
ICMA Retirement Trust.
SECTION 1.2. Definitions. Wherever they are used herein, the
following terms shall have the following respective meanings:
A
r
(a) By -Laws. The By -Laws referred to in Section 4.1 hereof, as
amended from time to time.
(b) Deferred Compensation Plan. A deferred compensation 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 provisions of section 457 of
the Internal Revenue Code of 1954. as amended.
(c) Guaranteed Investment Contract. A contract entered into by
the Retirement Trust with insurance companies that provides for
a guaranteed rate of return on investments made pursuant to
such contract.
(d) ICMA. The International City Management Association.
(e) ICMA /RC Trustees. Those Trustees elected by the Public
Employers who, in accordance with the provisions of Section
3.1(a) hereof, are also members of the Board of Directors of ICMA
or RC.
(f) Investment Adviser. The Investment Adviser that enters into a
contract with the Retirement Trust to provide advice with respect
to investment of the Trust Property.
(g) Employer Trust. A trust created pursuant to an agreement
between RC and a Public Employer for the purpose of investing
and administering the funds set aside by such employer in
connection with its deferred compensation agreements with its
employees.
(h) Portfolios. The Portfolios of investments established by the
Investment Adviser to the Retirement Trust, under the
supervis on 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 provisions of
Section 3.1(a) hereof, are full -time employees of Public
Employers.
(j) Public Employer. A unit of state or local government, or any
agency or instrumentality thereof, that has adopted a Deferred
Compensation Plan and has executed this Declaration of Trust.
(k) RC. The International City Management Association
Retirement Corporation.
(1) Retirement Trust. The Trust created by this Declaration of
Trust.
(m) Trust Property. The amounts held in the Retirement Trust on
behalf of the Public Employers. The Trust Property shall include
any income resulting from the investment of the amounts so held.
(n) Trustees. The Public Employee Trustees and ICMA /RC
Trustees elected by the Public Employers to serve as members of
the Board of Trustees of the Retirement Trust.
APPENDIX B
ARTICLE 11. Creation and Purpose of the Trust; Ownership of Trust
Property
SECTION 2.1. Creation. The Retirement Trust is created and
established by the execution of this Declaration of Trust by the Trustees
and the participating Public Employers.
SECTION 2.2. Purpose. 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 Plans. The
Trust Property shall be invested in the Portfolios, in Guaranteed
Investment Contracts and in other investments recommended by the
Investment Adviser under the supervision of the Board of Trustees.
SECTION 2.3 Ownership of Trust Property. The Trustees shall have
legal title to the Trust Property. The Public Employers shall be the
beneficial owners of the Trust Property.
ARTICLE III. Trustees
SECTION 3.1. Number and Qualification of Trustees.
(a) The Board of Trustees shall consist of 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 of the Board of Directors of
ICMA and two persons who, at the time of election, are members
of the Board of Directors of RC (the ICMA /RC Trustees). One of
the Trustees who is a director of ICMA, and one of the Trustees
who is a director of RC, shall, at the time of election, be full -time
employees of a Public Employer.
(b) No person may serve as a Trustee for more than one term 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 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 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 Trustees 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
A
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.
(b) Each Public Employee Trustee shall resign his or her position
as Trustee within sixty days of the date on which he or she ceases
to be a full -time employee of a Public Employer.
SECTION 3.5. Vacancies. The term of office of a Trustee shall
rminate and a vacancy shall occur in the event of the death,
Irsignation, removal, adjudicated incompetence or other incapacity to
perform the duties of the office of a Trustee. In the case of a vacancy, the
remaining Trustees shall appoint such person as they in their discretion
shall see fit (subject to the limitations set forth in this Section), to serve
for the unexpired portion of the term of the Trustee who has resigned or
otherwise ceased to be a Trustee. The appointment shall be made by a
written instrument signed by a majority of the Trustees. The person
appointed must be the same type of Trustee (i.e., Public Employee
Trustee or ICMA /RC Trustee) as the person who has ceased to be a
Trustee. An appointment of a Trustee may be made in anticipation of a
vacancy to occur at a later date by reason of retirement or resignation,
provided that such appointment shall not become effective prior to such
retirement or resignation. Whenever a vacancy in the number of
Trustees shall occur, until such vacancy is filled as provided in this
Section 3.5, the Trustees in office, regardless of their number, shall have
all the powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by this Declaration. A written instrument
certifying the existence of such 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
Employee 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
onduct the business of the Trust and to carry on its operations. Such
ower shall include, but shall not be limited to, the power to:
(a) receive the Trust Property from the Public Employers or from
a Trustee of 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 Guaranteed Investment Contracts in
which the Trust Property may be invested, selection of 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;
(c) review annually the performance of the Investment Adviser
and approve annually the contract with such Investment Adviser;
(d) invest and reinvest the Trust Property in the Portfolios, the
Guaranteed Investment Contracts and in any other investment
recommended by the Investment Adviser, provided that if a
Public Employer has directed that its monies be invested in
specified Portfolios or in a Guaranteed Investment Contract, the
Trustees of the Retirement Trust shall invest such monies in
accordance with such directions;
(e) keep such portion of the Trust Property in cash or cash
balances as the Trustees, from time to time, may deem to be in the
best interest of the 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 investments here-
under;
(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 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;
(j) 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;
(k) borrow or raise money for the purpose of the Retirement
Trust in such amount, and upon such terms and conditions, as the
Trustees shall deem advisable, provided that the aggregate
amount of such borrowings shall not exceed 30% of the value of
the Trust Property. No person lending money to the Trustees
shall be bound to see the application of the money lent or to
inquire into its validity, expediency or propriety of any such
borrowing;
(1) incur reasonable expenses as required for the operation of the
Retirement Trust and deduct such expenses from the Trust
Property;
(m) pay expenses properly allocable to the Trust Property
incurred in connection with the Deferred Compensation Plans or
the Employer Trusts and deduct such expenses from that portion
of the Trust Property beneficially owned by the Public Employer
to whom 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 of the Internal Revenue Code, as
amended;
(q) issue the Annual Report of the Retirement Trust, and the
disclosure documents and other literature used by the
Retirement Trust;
(r) 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 or Employer Trust and such additional
separate accounts as are required under, and consistent with, the
Deferred Compensation 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 the
Retirement Trust.
SECTION 4.2. Distribution of Trust Property. Distributions of the
I uust Property shalt be made to, or on behalf of, the Public Employer, in
cordance with the terms of the Deferred Compensation Plans or
iployer Trusts. The Trustees of the Retirement Trust shall be fully
otecled in making payments in accordance with the directions of the
blic Employers or the Trustees of the Employer Trusts without
ascertaining whether such payments are in compliance with the
provisions of the Deferred Compensation Plans or the agreements
creating the Employer Trusts.
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, 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 Trust, upon the opinion of
counsel, or upon reports made to the Retirement Trust by any of its
fficers, employees or agents or by the Investment Adviser or any sub -
vestment adviser, accountants, appraisers or other experts or
nsultants selected with reasonable care by the Trustees, officers or
ployees 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.
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 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 VII. Duration or Amendment of Retirement Trust
SECTION 7.1. Withdrawal. A Public Employer may, at anytime, with-
draw from this Retirement Trust by delivering to the Board of Trustees a
statement to that effect. The withdrawing Public Employer's beneficial
interest in the Retirement Trust shall be paid out to the Public Employer
or to the Trustee of the Employer Trust, as appropriate.
SECTION 7.2. Duration. The Retirement Trust shall continue until
terminated by the vote of a majority of the Public Employers, each
casting one vote. Upon termination, all of the Trust Property shall be
paid out to the Public Employers or the Trustees of the Employer Trusts,
as appropriate.
SECTION 7.3. Amendment. The Retirement Trust may be amended
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: (a) a majority of the Trustees so direct, or (b) a
petition requesting a vote, signed by not less than 25% of the Public
Employers, is submitted to the Trustees.
ARTICLE VIII. 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.
TRUST AGREEMENT WITH
THE ICMA RETIREMENT CORPORATION
AGREEMENT made by and between the Employer named in the
attached resolution and the International City Management Association
Retirement Corporation ( hereinafter the "Trustee" or "Retirement
Corporation "), a nonprofit corporation organized and existing under the
laws of the State of Delaware, for the purpose of investing and otherwise
administering the funds set aside by Employers in connection with
deferred compensation plans established under section 457 of the
Internal Revenue Code of 1954 (the "Code "). This Agreement shall take
effect upon acceptance by the Trustee of its appointment by the
Employer to serve as Trustee in accordance herewith as set forth in the
attached resolution.
WHEREAS, the Employer has established a deferred compensation plan
under section 457 of the Code (the "Plan ");
WHEREAS, in order that there will be sufficient funds available to
discharge the Employer's contractual obligations under the Plan, the
Employer desires to set aside periodically amounts equal to the amount
of compensation deferred;
WHEREAS, the funds set aside, together with any and all assets derived
from the investment thereof, are to be exclusively within the dominion,
control, and ownership of the Employer, and subject to the Employer's
absolute right of withdrawal, no employees having any interest
whatsoever therein;
NOW, THEREFORE, this Agreement witnesseth that (a) the Employer
s ill pay monies to the Trustee to be placed in deferred compensation
ccounts for the Employer; (b) the Trustee covenants that it will hold
aid sums, and any other funds which it may receive hereunder, in trust
for the uses and purposes and upon the terms and conditions
hereinafter stated; and (c) the parties hereto agree as follows:
ARTICLE L General Duties of the Parties.
Section 1.1, General Duty of the Employer. The Employer shall make
regular periodic payments equal to the amounts of its employees'
compensation which are deferred in accordance with the terms and
conditions of the Plan to the extent that such amounts are to be invested
under the Trust.
Section 1.2. General Duties of the Trustee. The Trustee shall hold all
funds received by it hereunder, which, together with the income
therefrom, shall constitute the Trust Funds. It shall administer the Trust
Funds, collect the income thereof, and make payments therefrom, all as
hereinafter provided. The Trustee shall also hold all Trust Funds which
are transferred to it as successor Trustee by the Employer from existing
deferred compensation arrangements with its Employees under plans
described in section 457 of the Code. Such Trust Funds shall be subject
to all of the terms and provisions of this Agreement.
ARTICLE II. Powers and Duties of the Trustee in Investment,
Administration, and Disbursement of the Trust Funds.
Section 2.1. Investment Powers and Duties of the Trustee. The
Trustee shall have the power to invest and reinvest the principal and
income of the Trust Funds and keep the Trust Funds invested, without
distinction between principal and income, in securities or in other
property, real or personal, wherever situated, including, but not limited
to, stocks, common or preferred, bonds, retirement annuity and
insurance policies, mortgages, and other evidences of indebtedness or
ownership, investment companies, common or group trust funds, or
separate and different types of funds (including equity, fixed income)
which fulfill requirements of state and local governmental laws,
APPENDIX C
provided, however, that the Employer may direct investment by the
Trustee among available investment alternatives in such proportions as
the Employer authorizes in connection with its deferred compensation
agreements with its employees. For these purposes, these Trust Funds
may be commingled with Trust Funds set aside by other Employers
pursuant to the terms of the ICMA Retirement Trust. Investment powers
vested in the Trustee by the Section may be delegated by the Trustee to
any bank, insurance or trust company, or any investment advisor,
manager or agent selected by it.
Section 2.2. Administrative Powers of the Trustee. The Trustee shall
have the power in its discretion:
(a) To purchase, or subscribe for, any securities or other
property and to retain the same in trust.
(b) To sell, exchange, convey, transfer or otherwise dispose of
any securities or other property held by it, by private contract, or
at public auction. No person dealing with the Trustee shall be
bound to see the application of the purchase money or to inquire
into the validity, expediency, or propriety of any such sale or
other disposition.
(c) To vote upon any stocks, bonds, or other securities; to give
general or special proxies or powers of attorney with or without
power of substitution; to exercise any conversion privileges,
subscription rights, or other options, and to make any payments
incidental thereto; to oppose, or to consent to, or otherwise
participate in, corporate reorganizations or other changes
affecting corporate securities, and to delegate discretionary
powers, and to pay any assessments or charges in connection
therewith; and generally to exercise any of the powers of an
owner with respect to stocks, bonds, securities or other property
held as part of the Trust Funds.
(d) To cause any securities or other property held as part of the
Trust Funds to be registered in its own name, and to hold any
investments in bearer form, but the books and records of the
Trustee shall at all times show that all such investments are a part
of the Trust Funds.
(e) To borrow or raise money for the purpose of the Trust in such
amount, and upon such terms and conditions, as the Trustee shall
deem advisable; and, for any sum so borrowed, to issue its
promissory note as Trustee, and to secure the repayment thereof
by pledging all, or any part, of the Trust Funds. No person lending
money to the Trustee shall be bound to see the application of the
money lent or to inquire into its validity, expediency or propriety
of any such borrowing.
(f) To keep such portion of the Trust Funds in cash or cash
balances as the Trustee, from time to time, may deem to be in the
best interest of the Trust created hereby, without liability for
interest thereon.
(g) To accept and retain for such time as it may deem advisable
any securities or other property received or acquired by it as
Trustee hereunder, whether or not such securities or other
property would normally be purchased as investment hereunder.
(h) To 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) To settle, compromise, or submit to arbitration any claims,
debts, or damages due or owing to or from the Trust Funds; to
commence or defend suits or legal or administrative proceedings;
and to represent the Trust Funds in all suits and legal and
administrative proceedings.
(j) To do all such acts, take all such proceedings. and exercise all
such rights and privileges, although not specifically mentioned
herein, as the Trustee may deem necessary to administer the
Trust Funds and to carry out the purposes of this Trust.
Section 2.3. Distributions from the Trust Funds. The Employer
hereby appoints the Trustee as its agent for the purpose of making
distributions from the Trust Funds. In this regard the terms and
conditions set forth in the Plan are to guide and control the Trusfee's
;power.
Section 2.4. Valuation of Trust Funds. At least once a year as of
Valuation Dates designated by the Trustee, the Trustee shall determine
the value of the Trust Funds. Assets of the Trust Funds shall be valued at
their market values at the close of business on the Valuation Date, or, in
the absence of readily ascertainable market values as the Trustee shall
determine, in accordance with methods consistently followed and
uniformly applied.
ARTICLE Ill. For Protection of Trustee.
Section 3.1. Evidence of Action by Employer. The Trustee may rely
upon any certificate, notice or direction purporting to have been signed
on behalf of the Employer which the Trustee believes to have been
signed by a duly designated official of the Employer. No communication
shall be binding upon any of the Trust Funds or Trustee until they are
received by the Trustee.
Section 3.2. Advice of Counsel. The Trustee may consult with any
legal counsel with respect to the construction of this Agreement, its
duties hereunder, or any act, which it proposes to take or omit, and shall
not be liable for any action taken or omitted in good faith pursuant to
such advice.
Section 3.3. Miscellaneous. The Trustee shall use ordinary care and
!asonable diligence, but shall not be liable for any mistake of judgment
r other action taken in good faith. The Trustee shall not be liable for any
loss sustained by the Trust Funds by reasons of any investment made in
good faith and in accordance with the provisions of this Agreement.
The Trustee's duties and obligations shall be limited to those
expressly imposed upon it by this Agreement.
ARTICLE IV. Taxes, Expenses and Compensation of Trustee
Section 4.1. Taxes. The Trustee shall deduct from and charge against
the Trust Funds any taxes on the Trust Funds or the income thereof or
which the Trustee is required to pay with respect to the interest of any
person therein.
Section 4.2. Expenses. The Trustee shall deduct from and charge
;igainst the Trbst Funds all reasonable expenses incurred by the Trustee
m the administration of the Trust Funds, including counsel, agency,
investment advisory, and other necessary fees.
ARTICLE V. Settlement of Accounts. The Trustee shall keep accurate
and detailed accounts of all investments, receipts, disbursements, and
other transactions hereunder.
Within ninety (90) days after the close of each fiscal year, the Trustee
shall render in duplicate to the Employer an account of its acts and
transactions as Trustee hereunder. If any part of the Trust Fund shall be
invested through the medium of any common, collective or commingled
Trust Funds, the last annual report of such Trust Funds shall be
submitted with and incorporated in the account.
If within ninety (90) days after the mailing of the account or any
.upended account the Employer has not filed with the Trustee notice of
J,ny objection to any act or transaction of the Trustee, the account or
mended account shall become an account stated. If any objection has
een filed, and if the Employer is satisfied that it should be withdrawn or
the account is adjusted to the Employer's satisfaction, the Employer
nal I in writing filed with the Trustee signify approval of the account and
it shall become an account stated.
When an account becomes an account stated, such account shall be
finally settled, and the Trustee shall be completely discharged and
released, as if such account had been settled and allowed by a judgment
or decree of a court of competent jurisdiction in an action or proceeding
in which the Trustee and the Employer were parties.
The Trustee shall have the right to apply at any time to a court of
competent jurisdiction for the judicial settlement of its account.
ARTICLE VI. Resignation and Removal of Trustee.
Section 6.1. Resignation of Trustee. The Trustee may resign at any
time by filing with the Employer its written resignation. Such resignation
shall take effect sixty (60) days from the date of such filing and upon
appointment of a successor pursuant to Section 6.3., whichever shall
first occur.
Section 6.2. Removal of Trustee. The Employer may remove the
Trustee at any time by delivering to the Trustee a written notice of its
removal and an appointment of a successor pursuant to Section 6.3.
Such removal shall not take effect prior to sixty (60) days from such
delivery unless the Trustee agrees to an earlier effective date.
Section 6.3. Appointment of Successor Trustee. The appointment of
a successor to the Trustee shall take effect upon the delivery to the
Trustee of (a) an instrument in writing executed by the Employer
appointing such successor, and exonerating such successor from
liability for the acts and omissions of its predecessor, and (b) an
acceptance in writing, executed by such successor.
All of the provisions set forth herein with respect to the Trustee shall
relate to each successor with the same force and effect as if such
successor had been originally named as Trustee hereunder.
If a successor is not appointed with sixty (60) days after the Trustee
gives notice of its resignation pursuant to Section 6.1., the Trustee may
apply to any court of competent jurisdiction for appointment of a
successor.
Section 6.4. Transfer of Funds to Successor. Upon the resignation or
removal of the Trustee and appointment of a successor, and after the
final account of the Trustee has been properly settled, the Trustee shall
transfer and deliver any of the Trust Funds involved to such successor.
ARTICLE VII. Duration and Revocation of Trust Agreement.
Section 7.1. Duration and Revocation. This Trust shall continue for
such time as may be necessary to accomplish the purpose for which it
was created but may be terminated or revoked at any time by the
Employer as it relates to any and /or all related participating Employees.
Written notice of such termination or revocation shall be given to the
Trustee by the Employer. Upon termination or revocation of the Trust,
all of the assets thereof shall return to and revert to the Employer.
Termination of this Trust shall not, however, relieve the Employerof the
Employer's continuing obligation to pay deferred compensation to
Employees in accordance with the terms of the Plan.
Section 7.2. Amendment, The Employer shall have the right to amend
this Agreement in whole and in part but only with the Trustee's written
consent. Any such amendment shall become effective upon (a) delivery
to the Trustee of a written instrument of amendment, and (b) the
endorsement by the Trustee on such instrument of its consent thereto.
ARTICLE VIII. Miscellaneous.
Section 8.1. Laws of the District of Columbia to Govern. This
Agreement and the Trust hereby created shall be construed and
regulated by the laws of the District of Columbia.
Section 8.2. Successor Employers. The "Employer" shall include any
person who succeeds the Employer and who thereby becomes subject
to the obligations of the Employer under the Plan.
Section 8.3. Withdrawals. The Employer may, at any time, and from
time to time, withdraw a portion or all of Trust Funds created by this
Agreement.
Section 8.4. Gender and Number. The masculine includes the
feminine and the singular includes the plural unless the context requires
another meaning.
If it becomes necessary to disconnect, every attempt will
be made to contact the customer prior to the disconnect.
If utilities are disconnected, a notice to this effect is
left with the customer and property owner.
Utilities will not be disconnected if the temperature is
such that it endangers the safety of any person and /or
personal property.
All customers are offered the opportunity of a budget
payment plan subject to rules and regulations pertaining
to that plan. They are also given information regarding
agencies that may be able to help pay utility bills.
Motion was unanimously carried.
Mgr. Alexander reported progress is being made in offering
flexible pricing to Minnesota Mining & Mfg. and work will
continue so as to result in an acceptable price per MCF for
both Minnesota Mining & Mfg. and Hutchinson Utilities Commission.
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to amend Resolution #3 to adopt the resolution which
accepts the covenants of Appendix A, B & C as submitted by the
ICMA Corporation. (Copy attached to the face of these minutes)
Motion was unanimously carried.
A list of uncollectible accounts were presented. Motion was made
by Commissioner Daggett, seconded by Commissioner Lyke authorizing
management to charge -off electric accounts in the amount of $510.09
and gas in the amount of $407.41, totaling $917.50. Detailed
listing on pages 1155E and 450G of the November general journals.
Motion was unanimously carried.
Mgr. Alexander will notify Commissioners as soon as a date has
been set for a tour of the Ford dam.
Counsel Peterson will do more research on the Indemnification
Resolution. President Filk asked that the resolution be placed
on the December agenda.
Mgr. Alexander discussed customers presently on the small general
service rate reaching a demand of 50 KW for the month. President
Filk asked Mgr. Alexander to put together more information and
report back to the Commission at the December meeting.
q L
President Filk called upon Commissioner Daggett to give a brief
recap of negotiations with the International Brotherhood of
Electrical Workers up to this point in time. Good progress has
been made with a second meeting scheduled for December 5, 1983.
Commissioner Daggett requested estimates be secured for the
needed tie line from #2 plant site to Minnesota Mining & Mfg.
Two were requested - one estimate representing costs for complete
underground and another for part underground and part overhead.
The following are October payables:
LJ
OCTOBER PAYABLES - ELECTRIC
American Payment Centers Rent 50.00
Citizens Bank & Trust Deposit to Contribution Acct. 20,900.00
Citizens Bank & Trust Deposit to Bond Payment Acct. 55,660.42
Colonial Life & Accident Accident insurance withheld 88.00
MN Municipal Util Assn. Safety instruction 230.00
Natural Gas Division Due to Natural Gas Division 450,690.06
Accounts Receivable
Richard Peterson Legal retainer 400.00
New York Life Insurance Medical insurance 6,003.42
Continental Assurance Life insurance 178.11
Continental Assurance Life insurance 46.75
ICMA Retirement Assn. Employee deferred comp withheld 480.00
Putnam Fund Dist. Employee deferred comp withheld 50.00
State Treasurer PERA withheld & expense 3,714.35
Citizens Bank & Trust Federal tax withheld 31981.15
Border States Electric Inventory 795.00
A. L. Crump & Company Engine inventory #8 47.61
Data Documents Office supplies 193.12
Ed Davis Business Office supplies 152.65
Electronic Center Mdse. 12.03
General Electric Engine inventory #8 867.99
H & C Electric Inventory, mdse. misc. 2,661.07
Hutch Utilities - UB Employees utility bills withheld 1,277.50
I. B. M. Corporation Maint. service, lease 869.50
Pat Mikulecky Studio Misc. 71.55
Paper Service Company Plant supplies 97.33
Petersen - Wisdorf Inventory, misc. 1,491.43
Petty Cash Meter refund & interest 402.28
Product Information Network Subscription 325.00
Sterling Electric Plant supplies 156.70
W E S C 0 Meter inventory 3,648.00
Zahl Equipment Co. Misc. 9.00
R. H. Alexander Meeting expense 132.54
Hutch Utilities Transfer to Natural Gas 27,000.00
Division
Laura Kichler Refund - overpayment 33.25
Jerilyn Breitkreutz Refund - overpayment 128.92
Charles Pulkrabek Refund - overpayment 125.00
Tim McRaith Refund - overpayment 2.25
Daniel Doose Meter refund & interest 19.51
Richard Wehrle Meter refund & interest 4.77
Steve Wacker Misc. 179.00
Richard Peterson Legal fees 41440.00
West Central Roofing Utility Center roof est. #2 8,322.75
Petty Cash Postage 740.35
Thomson & Hawkins Trust Misc. 11500.00
Account
Graybar Electric Inventory 970.92
//6'.
OCTOBER - ELECTRIC (cont.)
Hutch Utilities - UB
Gas - engines
18,662.00
Susan Wagner
Meter refund & interest
42.60
Pat Smith
42.40
Robert Sitz
21.20
Paperback Shack
21.30
James P. Olson
42.60
Maynard Navratil
21.30
Connie Meyer
21.30
Terry McStotts
42.40
Heidi McCann
21.30
Clarence Kottke
21.20
Russell Dragert
42.60
Richard Desens
21.30
George Bittis
42.40
J. C. Penney
Uniforms
427.93
Myron Tucker
Medical insurance expense
165.64
Nathan Smutka
Medical insurance expense
9.60
Putnam Fund Dist.
Employee deferred comp withheld
50.00
ICMA Retirement Corp.
Employee deferred comp withheld
480.00
Great Plains Supply
Bldg. maint.
5.18
MN UC Fund
Unemployment expense
7,126.22
MN Municipal Util. Assn.
Meeting expense
30.00
Zins Machining
Tools
125.00
State Treasurer
FICA withheld & expense
6,582.58
Commissioner of Revenue
State tax withheld
4,863.73
Citizens Bank & Trust
Federal tax withheld
4,037.01
State Treasurer
PERA withheld & expense
3,677.37
Triplett Corporation
Misc.
59.53
MN Environmental Quality
Assessment
350.83
Board
Dexter Klitzke
Medical insurance expense
7.20
David Lamecker
Medical insurance expense
132.80
Rufus Alexander
Medical insurance expense
128.80
Rockite Silo
Mdse, underground
259.69
MN Benefit Association
Misc. insurance withheld
10.00
Apollo Piping Supply
Engine inventory #8, engine
339.12
maint. #8
Petty Cash
Meter refunds & interest, office
297.18
supplies, gas, misc.
Eugene Daggett
Meeting expense
130.36
United Way
United Way withheld
124.00
Fireman's Fund Insurance
Misc. insurance withheld
98.08
Hutch Utilities
Transfer to Natural Gas
10,000.00
Division
A & B Electric
Bldg. maint., URD services
82.71
Abex Corp - Aerospace Div.
Engine inventory #8
781.83
Allen Office Products
Office supplies
55.72
American Linen Supply
Laundry
55.08
L-1
1
i
OCTOBER - ELECTRIC (cont.)
American Welding Supply Plant supplies 61.09
Anderson Chemical Co. Chemicals 21058.00
Associated Consultants Engineering fees 7,962.90
Border States Electric Distribution inventory 1,038.99
Brandon Tire Truck maint. 96.96
Central MN Communications Radio maint. 76.00
Central Petroleum Co. Oil 245.34
Coast -To -Coast Plant supplies, bldg. maint., 45.63
misc.
Commissioner of Revenue Sales tax 19,516.11
Culligan Water Condition Plant supplies 28.35
Ed Davis Business Machines Office supplies, plant supplies 406.97
Duncan Company Plant supplies 33.40
Duro -Test Corporation Plant supplies 189.25
Family Rexall Drug Office supplies 71.63
Farm & Home Distributing Truck maint. 50.95
John Henry Foster Co. Plant supplies 122.05
Four Seasons Services Cup inserts 33.40
General Trading Company Plant supplies, mdse, tools, 488.69
misc.
W. W. Grainger Mdse. 143.41
Graybar Electric Distribution inventory 928.54
H & C Electric Distribution inventory, plant 1,150.21
supplies, mdse.
Harris Machinery Misc. 149.40
Home Bakery Cookies 177.50
Hoting Construction Utility bldg. roof 162.50
Hutchinson Co -op Plant supplies 5.00
Hutchinson Iron & Metal Plant supplies 7.60
Hutchinson Telephone Co. Telephone 1,350.77
Hutch Util Employee Fund Employee fund withheld 102.00
Hutch Utilities - UB Engines 43,328.27 47,583.92
Plant &
Utility Center 1,631.73
Labor 2,623.92
Hutch Wholesale Truck maint., plant supplies 143.79
IBEW Local 949 Union dues withheld 433.75
Jahnke's Red Owl Coffee, plant supplies 76.29
Kato Tool & Equipment Mdse. 85.04
Krasen Plumbing Engine maint. #2 3.43
Lakes Gas Company Gas 220.32
Leef Bros. Inc. Laundry 47.60
Maintenance Engineering Plant supplies 96.77
Mankato Business Products Office supplies 39.40
Mankato Mobile Radio Radio maint. 41.60
Midwest Asphalt Corp. Grounds maint. 190.96
MN Municipal Util. Assn. Registration - Fall meeting 105.00
New Hermes Inc. Office supplies 308.84
Petersen - Wisdorf Distribution inventory, mdse. 1,954.67
OCTOBER - ELECTRIC (cont.)
Quade Electric
Quast Transfer
Roilgard
Sears
Simonson Lumber
Sorenson Farm Supply
Sterling Electric
Thomas Engineering Sales
Uniforms Unlimited
United Electric Co.
United Power Association
Vaughn's Inc.
Welders Supply
West Central Roofing
W E S C 0
Wholesalers Service Center
Wigen Chevrolet
Zee Medical Service
Zep Mfg. Company
Electronic Center Inc.
Fabricare Cleaners
The First Bank of Minn.
General Electric
H & C Electric
Junker Sanitation
MN Municipal Util. Assn.
Twin City Testing
United Power Association
Edwin Dolezal
Ruth Hake 1
Walfred Koskinen
Walter Homb ach
Graybar Electric
Plant supplies, URD services
Freight
Plant supplies
Bldg. maint., misc.
Bldg. maint.
Misc.
Plant supplies, mdse.,
distribution inventory
Engine inventory #3
Uniforms
Plant supplies inventory
Switching line
Bldg. maint.
Plant supplies
Utility bldg. roof
Distribution inventory
Maint. ventilating system
Truck maint.
First aid supplies
Plant supplies
Engine maint. #9
Laundry
Truck maint.
Distribution material
Distribution inventory
Refuse service
Safety instruction
Test lube oils
Purchased power
Medical insurance expense
Medical insurance expense
Medical insurance expense
Medical insurance expense
Inventory
OCTOBER PAYABLES - GAS
Colonial Life & Accident
First State Federal
State Treasurer
Citizens Bank & Trust
Putnam Fund Dist.
Continental Assurance
Continental Assurance
Fisher Controls
Graphic Controls
Accident insurance withheld
Deposit to Contract for Deed
account
PERA withheld & expense
Federal tax withheld
Employee deferred comp withheld
Life insurance
Life insurance
Inventory
M:_ sc .
46.01
36.54
653.06
108.39
81.48
5.02
378.72
1,177.08
342.75
65.09
320.28
102.90
86.37
2,614.52
969.08
63.47
2.90
31.30
118.00
8.64
148.00
59.24
732.00
150.73
80.00
150.00
810.00
462,592.90
44.00
13.60
48.80
24.00
3,163.80
24.50
500.00
946.58
1,018.79
200.00
13.75
52.39
51.20
87.06
1
1
OCTOBER - GAS (cont.)
Hutch Utilities - UB Employees utility bills withheld 445.00
Quast Transfer Freight 45.70
First National Bank Deposit to Money Market Savings 435,800.00
Tapecoat Company Mains & services 351.65
West Central Roofing Utility bldg. roof - estimate 81322.75
#2
Putnam Fund Dist. Employee deferred comp withheld 200.00
State Treasurer PERA withheld & expense 930.51
State Treasurer FICA withheld & expense 1,448.20
Commissioner of Revenue State tax withheld 11201.26
Citizens Bank & Trust Federal tax withheld 978.46
J. C. Penney Uniforms 104.24
Redman Travel Meeting expense - Orville K. 432.00
& Bill M.
Steve Sturges Medical insurance expense 12.00
Dennis Riedel Medical insurance expense 98.40
Dennis Riedel Medical insurance expense 41.60
Orville Kuiken Medical insurance expense 22.40
Eugene Daggett Meeting expense 130.36
United Way United Way withheld 24.00
American Meter Division Meter maint. 64.96
American Welding Supplies Misc. 41.20
Apollo Piping Supply Inventory, misc. 1,379.02
Associated Consultants Engineering fees 228.50
Brandon Tire Power operated equip. maint. 16.90
Central Petroleum Co. Oil 121.46
Coast -To -Coast Power operated equip. maint., 10.51
misc.
Graphic Controls Corp. Misc. 54.29
Hoting Construction Utility bldg. roof 162.50
Hutch Co -op Misc. 10.00
Hutch Util Employee Fund Employee fund withheld 24.00
Hutch Utilities - UB Labor, peak shaving, gas 21255.63
Hutch Wholesale Truck maint., power operated 49.00
equip. maint.
I B E W Local 949 Union dues withheld 108.50
Dr. M. J. Juffer Glasses - D. Riedel 90.00
Lakes Gas Company Gas 221.58
MN Municipal Util. Assn. Fall meeting 45.00
North Star Waterworks Inventory 1,292.44
Plaza OK Hardware Misc. 6.10
Sorenson Farm Supply Misc. 10.79
Sterling Electric Misc. 10.66
Uniforms Unlimited Uniforms 68.55
Welders Supply Company Misc. 49.13
West Central Roofing Utility bldg. roof 2,614.51
OCTOBER - GAS (cont.)
Hutchinson Utilities Due to Municiapl Electric 11,016.63
Plant - October expenses
Erickson Oil Products Gas 69.10
Circle -Hutch Utility Purchased gas 330,350.91
W. D. Specialties Truck maint. 21.24
There being no further business, a motion was made by Commissioner
Daggett, seconded by Commissioner Lyke to adjourn the meeting at
3:55 p.m. Motion was unanimously carried.
ATTEST',
H. W. Filk, President
f� !
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Thomas B. Lyk:; Secretary