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HomeMy WebLinkAboutPACKET NOV 09 2010 RICH WITH OPPORTUNITY BEAUMON* T - E - X - A - S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 9,2010 1:30 P.M. CONSENT AGENDA * Approval of minutes-November 2,2010 * Confirmation of committee appointments A) Authorize the City Manager to apply for and receive handheld scanner(s)through the American Humane Association for use in the Animal Services Division B) Approve a resolution denying the request of Firefighter Tracy O'Quinn to approve the accumulation of vacation leave from 2010 to be used in 2011 C) Approve a resolution denying the request of Capt. Harold Smithers to approve the accumulation of vacation leave from 2010 to 2011 D) Authorize the City Attorney to pursue an appeal in Cause No. X-1045,Ex Parte James Edward Mathews.Jr. E) Authorize the City Attorney,or his designee,to file a lawsuit necessary to pursue the outstanding damage claims to City property resulting from Hurricane Ike A RICH WITH OPPORTUNITY T •BEA,* X UMON*• A , s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer E) MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider authorizing the City Manager to apply for and receive handheld scanner(s)through the American Humane Association's American Humane/HomeAgain Universal WorldScan Grant program. RECOMMENDATION Administration recommends approval. BACKGROUND American Humane Association is partnering with HomeAgain to offer handheld scanners to shelters that are members of both American Humane and HomeAgain. Applicants are eligible to receive up to ten scanners. These scanners read all known microchips currently sold in the U.S. The scanners streamline the process for determining and monitoring animal ownership and providing care. These scanners will replace obsolete and problematic scanners currently in use at the City's Animal Services Division of the Police Department. BUDGETARY IMPACT There are no matching funds required. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to apply for and receive handheld scanner(s) through the American Humane Association's American Humane/HomeAgain Universal WorldScan Grant program for use by the City's Animal Services Division of the Police Department. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - B RICH WITH OPPORTUNITY BEAUMON* City Council Agenda Item T - E • X • A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: November 9,2010 REQUESTED ACTION: Council consider a resolution denying the request of Firefighter Tracy O'Quinn to approve the accumulation of vacation leave from 2010 to be used in 2011. RECOMMENDATION Administration recommends denial of the request of Firefighter Tracy O'Quinn to carry over accrued vacation leave from 2010 to be used in 2011. BACKGROUND Firefighter Tracy O'Quinn has requested to move his last cycle of vacation leave which is to be taken in 2010,to the year 2011. Mr. O'Quinn states that he is recovering from surgery and has another procedure to be performed at the end of this year or the first of next year. He is presently out on paid sick leave with accrued sick leave sufficient to carry him through these procedures. The Collective Bargaining Agreement between the City and the IAFF Local 399 does not make an exception for the carry over of vacation leave. The Agreement at XIII, Section 2, states in part: "All vacation time earned in a calendar year must be taken in the following calendar year." The Texas Local Government Code at Section 143.046(c), gives to the City Council the ability to approve the accumulation of vacation leave from year to year for Firefighters and Police Officers. To reinforce this position,the Fire Chief issued a departmental directive on May 6, 2010 reiterating the proposition that any vacation earned or received in a calendar year must be used in the following calendar year as is stated in the Collective Bargaining Agreement. In light of the above,the Administration is of the opinion that the carry over of vacation time is not merited. The Administration would recommend the denial of the request. BUDGETARY IMPACT None. RESOLUTION NO. WHEREAS, the City of Beaumont and the International Association of Firefighters, Local 399 (hereinafter 1AFF 399"), entered into a Collective Bargaining Agreement effective February 13, 2008; and WHEREAS, Article XIII, Section 2, addresses vacation leave, how it is earned and how it is to be scheduled and taken; and WHEREAS, the Collective Bargaining Agreement, Article XIII, Section 2, does not allow exceptions as to the absolute no vacation carryover provision; and WHEREAS, Local Government Code,Section 143.046(c),gives to the municipality's governing body the ability to approve the accumulation of vacation leave from year to year; and WHEREAS, neither the Beaumont City Manager nor the Beaumont Fire Chief have been authorized to grant exceptions to Article XIII, Section 2, to allow the carryover of vacation leave from year to year; and WHEREAS, any past exceptions made to such provision were unauthorized in that they were not in compliance with the Collective Bargaining Agreement or Local Government Code, Section 143.046(c); and WHEREAS, the City Council for the City of Beaumont does not intend to amend the Collective Bargaining Agreement except as provided for by Article XXXIII; and WHEREAS, the City Council has considered the request of Firefighter Tracy O'Quinn to carryover vacation leave from one year to a subsequent year and is of the opinion that it would not be in the best interest of the citizens of Beaumont to grant the request and, therefore, the request should be denied; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted. THAT the request of Firefighter Tracy O'Quinn to carryover vacation leave to a subsequent year be and it is hereby denied. THAT the meeting at which this resolution was approved was, in all things, conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - c RICH WITH OPPORTUNITY IIEA,UMON* City Council Agenda Item T - E • X - A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City AttorneyYL MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider a resolution denying the request of Capt. Harold Smithers to approve the accumulation of vacation leave from 2010 to 2011. RECOMMENDATION Administration recommends denial of the request of Capt. Harold Smithers to carry over vacation leave from 2010 to 2011. BACKGROUND Capt. Harold Smithers has requested to be allowed to carry over vacation leave accumulated in the year 2010 to be used in 2011 due to a permanent illness. On February 25, 2010 Capt. Smithers was determined not to be sufficiently fit to continue his duties as a Beaumont Firefighter. The Collective Bargaining Agreement between the City and the IAFF Local 399 does not make an exception for the carry over of accrued vacation leave. The Agreement at XIII, Section 2 states in part: "All vacation time earned in a calendar year must be taken in the following calendar year." The Texas Local Government Code at Section 143.046(c), gives to the City Council the ability to approve the accumulation of vacation leave from year to year for Firefighters and Police Officers. In light of the fact that Capt. Smithers is out on a permanent illness and not expected to return to his duties as a Beaumont Firefighter,the Administration is of the opinion that the carry over of accrued vacation time is not merited. Capt. Smithers is using accrued paid sick leave while he is out. The Administration would recommend the denial of the request. BUDGETARYIMPACT None. RESOLUTION NO. WHEREAS, the City of Beaumont and the International Association of Firefighters, Local 399 (hereinafter 1AFF 399"), entered into a Collective Bargaining Agreement effective February 13, 2008; and WHEREAS, Article XIII, Section 2, addresses vacation leave, how it is earned and how it is to be scheduled and taken; and WHEREAS, the Collective Bargaining Agreement, Article XIII, Section 2, does not allow exceptions as to the absolute no vacation carryover provision; and WHEREAS, Local Government Code,Section 143.046(c),gives to the municipality's governing body the ability to approve the accumulation of vacation leave from year to year; and WHEREAS, neither the Beaumont City Manager nor the Beaumont Fire Chief have been authorized to grant exceptions to Article XIII, Section 2, to allow the carryover of vacation leave from year to year; and WHEREAS, any past exceptions made to such provision were unauthorized in that they were not in compliance with the Collective Bargaining Agreement or Local Government Code, Section 143.046(c); and WHEREAS, the City Council for the City of Beaumont does not intend to amend the Collective Bargaining Agreement except as provided for by Article XXXIII; and WHEREAS, the City Council has considered the request of Capt. Harold Smithers to carryover vacation leave from one year to a subsequent year and is of the opinion that it would not be in the best interest of the citizens of Beaumont to grant the request and, therefore, the request should be denied; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted. THAT the request of Capt. Harold Smithers to carryover vacation leave to a subsequent year be and it is hereby denied. THAT the meeting at which this resolution was approved was, in all things, conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - RICH WITH OPPORTUNITY D IIEA,[IMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorne MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider a resolution authorizing the City Attorney to pursue an appeal in Cause No. X-1045, Ex Parte James Edward Mathews,Jr. RECOMMENDATION Administration recommends the approval of a resolution authorizing the City Attorney, or his designee,to pursue an appeal of an Order entered on October 27, 2010 in Cause No. X-1045,Ex Parte James Edward Mathews, Jr. BACKGROUND In an Executive Session properly called and held on November 2, 2010,the Council discussed the possibility of appealing an Order entered on October 27, 2010 in Cause No. X-1045,Ex Parte James Edward Mathews,Jr. The Administration recommends that the Order be appealed. BUDGETARYIMPACT None. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney be and he is hereby authorized to file an appeal entered on October 27, 2010 in Ex Parte James Edward Mathews, Jr., Cause No. X-1045, currently pending in the 252nd District Court of Jefferson County. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - RICA WITH OPPORTUNITY BEAUMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City AttorneA-� MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider a resolution authorizing the City Attorney, or his designee,to file a lawsuit necessary to pursue the outstanding damage claims to City property resulting from Hurricane Ike. RECOMMENDATION Administration recommends the approval of a resolution authorizing the City Attorney, or his designee,to file a lawsuit to pursue the outstanding damage claims to City property resulting from Hurricane Ike. BACKGROUND In an Executive Session held on October 19, 2010,the Council discussed the need to file a lawsuit to pursue the outstanding damage claims to City property resulting from Hurricane Ike that have not been resolved with the City's insurance carriers, Westchester Surplus Lines Insurance Company and Lexington Insurance Company. The City Attorney suggests that it is necessary and recommends the filing of a suit to advance the pending damage claims to City property that have not been resolved. BUDGETARYIMPACT The outstanding claims are estimated to be in an amount up to $800,000. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney, or his designee, is hereby authorized to file a lawsuit necessary to pursue the outstanding damage claims to City property resulting from Hurricane Ike that have not been resolved with the City's insurance carriers, Westchester Surplus Lines Insurance Company and Lexington Insurance Company. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - RICH WITH OPPORTUNITY i T • E • % • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 9,2010 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-5/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider amending Section 21-75 of the Code of Ordinances related to the number of Grade II Sergeant and Grade III Lieutenant positions in the Police Department 2. Consider a request for a street name change from 011ie Street to Barbara Lynn Street for that portion from Usan Street to SP Road 3. Consider authorizing the City Manager to receive funding through the Department of Homeland Security Grant Program 4. Consider approving the purchase of fleet vehicles 5. Consider establishing an Integral Part Trust for the exclusive purpose of funding post retirement health insurance benefits and approving the City Manager to enter into an Administrative Services Agreement with The International City Management Association Retirement Corporation COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Erik Kvarme, et al v. The City of Beaumont,Texas,et al Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. 1 November 9,2010 Consider amending Section 21-75 of the Code of Ordinances related to the number of Grade R Sergeant and Grade III Lieutenant positions in the Police Department RICH WITH OPPORTUNITY 11EA,UM0N* City Council Agenda Item T - E - X • A - S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorne Y MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider amending Section 21-75 of the Code of Ordinances related to the number of Grade II Sergeant and Grade III Lieutenant positions in the Police Department. RECOMMENDATION Administration recommends amending Section 21-75 of the Code of Ordinances to increase the number of Grade II Sergeant positions from forty-one (41)to forty-two (42)and decrease the number of Grade III Lieutenant positions from fourteen(14)to thirteen(13). BACKGROUND Lt. John Boles recently retired from the Beaumont Police Department effective October 31, 2010. His retirement creates a vacancy in the Lieutenant positions of the Police Department. After due consideration, it has been determined that this position is not necessary for the orderly and efficient operation of the Department. The Administration recommends that the vacant Lieutenant position be deleted and a Grade II Sergeant position be created. The Civil Service Act gives to the City Council the right to prescribe by ordinance the number of positions in each classification of the Department. BUDGETARYIMPACT The annual savings would be approximately $15,000.00. ORDINANCE NO. ENTITLEDAN ORDINANCE AMENDING SECTION 21-75 OF THE CODE OF ORDINANCES TO AMEND THE NUMBER OF GRADE II AND GRADE III POSITIONS IN THE BEAUMONT POLICE DEPARTMENT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Section 1. That Chapter 21, Section 21-75, of the Code of Ordinances of the City of Beaumont be and the same is hereby amended to read as follows: Sec. 21-75. Grades and Classifications - Police Department. The following grades and classifications and number of positions in each classification are hereby established within the Police Department: Grade Classification Positions Officers 204 11 Sergeants 42 III Lieutenants 13 IV Captains 3 Total 262 Section 2. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid,such invalidity shall not affect the remaining portions of this ordinance and, to such end, the various portions and provisions of this ordinance are declared to be severable. Section 3. All ordinances or parts of ordinances in conflict herewith, including conflicting portions of the City Budget, are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - 2 November 9,2010 Consider a request for a street name change from 011ie Street to Barbara Lynn Street for that portion from Usan Street to SP Road RICH WITH OPPORTUKITT BEAUMO N* T • $ • X • A - s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider a request for a street name change from 011ie Street to Barbara Lynn Street for that portion from Usan Street to SP Road, RECOMMENDATION The Administration recommends approval of the request to rename 011ie Street from Usan Street to SP Road to 011ie Street/Barbara Lynn Street. BACKGROUND Councilman Jamie Smith has requested the street name change. This name change would honor the rhythm and blues singer,Barbara Lynn. The Beaumont native was born Barbara Lynn Ozen on January 16,1942. At school, she took piano lessons and also mastered the ukulele, before persuading her parents to buy her an electric guitar. As a keen schoolgirl poet,Barbara soon began setting her words to music. Her initial foray into the record business began in the mid-50's when she was taken under the wing of New Orleans blues singer and DJ, Clarence"Bon Ton" Garlow, who allowed musically inclined local youngsters like herself to hang out, rehearse and record in his small studio after school. Barbara and her sister also traveled to Lake Charles to sing background vocals on sessions for the Goldband Label. By the late `50's, Barbara was playing around the Beaumont area at small clubs like Lou Ann's and the Ten Acre Club, fronting her group Bobbie Lynn and the Idols. An all-girl band, they wore pants and specialized in Presley songs like"Jailhouse Rock", earning Barbara the nickname, "the Black Elvis". News of Barbara's dynamite performances spread, soon grabbing the attention of local record man,Huey P. Meaux. Meaux set about negotiating a deal for his protege'. He eventually enticed the Jamie Label of Philadelphia into a licensing agreement. Soon Barbara's record,"You'll Lose A Good Thing", which she wrote several years earlier as a student at Hebert High School, entered the Billboard Hot 100 in June, 1962. By August,the record had replaced Ray Charles' "I Can't Stop Loving You" atop the R'n'B charts and was#8 on the Pop charts. During this time, Barbara appeared twice on Dick Clark's American Bandstand. Several albums and a number of singles followed on different labels. Barbara toured the country with many legends of the R&B music industry including B.B. King, Otis Redding, Sam Cooke, James Brown, Al Green, Carla Thomas, Marvin Gaye, Ike and Tina Turner and the Temptations. In addition to her two appearances on American Barndstanat Barbara has appeared at the Apollo Theater. She married her first husband at age 28 and had three children. While living in Los Angeles, Barbara occasionally appeared at local clubs. After her husband's death, she returned to Beaumont to be near her mother and resume her recording career. Through the years, Barbara has seen her music recorded by other artists, including Aretha Franklin, Freddie Fender and the Rolling Stones. In 1999, Barbara Lynn was given a Pioneer Award by the Rhythm and Blues Foundation. At a Joint Public Hearing held October 18, 2010, the Planning Commission voted 4:2 to deny a street name change from 011ie Street to Barbara Lynn Street for that portion from Usan Street to SP Road and recommended renaming Liberia Park to Barbara Lynn Park. BUDGETARY EWACT None. ORDINANCE NO. ENTITLED AN ORDINANCE RENAMING OLLIE STREET TO "BARBARA LYNN STREET/OLLIE STREET"; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. WHEREAS, a request has been made to the City Council to rename 011ie Street in honor of Barbara Lynn; and, WHEREAS, this request is in compliance with the street renaming policy of the City of Beaumont in that the name change will honor a person who has made specific contributions to the cultural, social, religious and political heritage of the City of Beaumont. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, BE IT FURTHER ORDAINED THAT 011ie Street, located between Usan Street and SP Road, being that portion of 011ie Street beginning at the east right-of-way line of Usan Street and running in an easterly direction for a distance of approximately 2,666 feet to the west right-of-way line of SP Road, City of Beaumont, Jefferson County, Texas, and containing 2.45 acres, more or less, as shown on Exhibit "A" attached hereto and made a part hereof, be and the same is hereby renamed as Barbara Lynn Street/011ie Street. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - L Legend IINN , love All 3 November 9,2010 Consider authorizing the City Manager to receive funding through the Department of Homeland Security Grant Program i RICH WITH OPPORTUNITY MR BEA,Up"iON* T • E • % • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider authorizing the City Manager to receive funding in the amount of$340,200 through the Department of Homeland Security Grant Program(HSGP). RECOMMENDATION Administration recommends approval. BACKGROUND The Homeland Security Grant Program consists of a number of grant programs, one of which is the State Homeland Security Program(SHSP)which Beaumont receives money from on a yearly basis. The Fire Department anticipates using$44,000 to purchase additional thermal imaging units which will complete the goal of one per truck; $20,000 for intercom systems for five fire trucks; $46,000 for extractor washers to provide required maintenance and extend the life of bunker gear; and$145,200 to enhance radio communications for fire responders. The Police Department anticipates using$38,000 to provide additional mobile surveillance equipment for tactical response and covert and overt monitoring during investigations, $12,000 for a phone analysis system used for investigative purposes, and$35,000 to improve first responder radio communications with a tower top amplifier and additional microwave backup capability. BUDGETARY IMPACT An additional $340,200 for fire response, law enforcement, and communications enhancements with no matching funds from the city. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to apply for and receive funding for the City of Beaumont through the Homeland Security Grant Program (HSGP) in the amount of$340,200 under the State Homeland Security Program (SHSP) for use by the Fire and Police Departments for the purchase of thermal imaging units, intercom systems, extractor washers,equipment to enhance communications, mobile surveillance equipment, a phone analysis system and equipment to improve first responder radio communications. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - 4 November 9,2010 Consider approving the purchase of fleet vehicles e- RICH WITH OPPORTUNITY BEAUMO N* T - S - X - A - S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer O MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider approving the purchase of fleet vehicles. RECOMMENDATION The administration recommends approval of the purchase of vehicles from Philpott Motors of Nederland in the amount of$240,846. BACKGROUND Pricing for this purchase is obtained through the Houston-Galveston Area Council(H-GAC) Cooperative Purchasing Program. H-GAC is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. H-GAC complies with the State of Texas procurement statutes. Eleven(11)vehicles,budgeted in Fiscal Year 2011, are available through H-GAC as follow: Sewer Maintenance F-250 Regular Cab 1 $29,281 Water Customer F-250 Regular Cab 1 $26,321 Service Water Customer Ranger Super Cab 1 $18,793 Service Solid Waste F-150 Supercab 4 x 2 5 $96,421 Streets&Drainage F-150 Supercab 4 x 2 2 $38,568 Building Services F-350 Crew Cab SRW 1 $31,462 i Purchase of Fleet Vehicles November 9,2010 Page 2 Replacement vehicles and additions to the fleet are requested through the City's budget process. The Fleet Superintendent reviews the requests and evaluates the vehicles to be replaced. Based on this evaluation, a recommendation is made to replace worn and obsolete vehicles that are no longer cost effective to operate. All eleven(11)vehicles to be purchased are replacing models ranging from 1992 to 2004. Warranties of 36,000 miles or three(3)years are provided for each new vehicle. The warranty service is provided by local authorized dealerships. BUDGETARYIMPACT Funds are budgeted in the Capital Reserve Fund, Water Fund and Solid Waste Fund. I I RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of eleven (11) fleet vehicles from Philpott Motors of Nederland, Texas, through the Houston-Galveston Area Council (H-GAC) and BuyBoard Cooperative Purchasing Programs in the amount of$240,846 as shown below: n �r T Sewer Maintenance F-250 Regular Cab 1 $29,281 Water Customer F-250 Regular Cab 1 $26,321 Service Water Customer Ranger Super Cab 1 $1 8,793 Service Solid Waste F-150 Supercab 4 x 2 5 $96,421 Streets& Drainage F-150 Supercab 4 x 2 2 $38,568 Building Services F-350 CREW CAB SRW 1 $31,462 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - 5 November 9,2010 Consider establishing an Integral Part Trust for the exclusive purpose of funding post retirement health insurance benefits and approving the City Manager to enter into an Administrative Services Agreement with The International City Management Association Retirement Corporation RICH WITH OPPORTUNITY IIEAIIMON* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: November 9, 2010 REQUESTED ACTION: Council consider establishing an Integral Part Trust for the exclusive purpose of funding post retirement health insurance benefits and approving the City Manager to enter into an Administrative Services Agreement with The International City Management Association Retirement Corporation(ICMA-RC). RECOMMENDATION Administration recommends approval. BACKGROUND The Governmental Accounting Standards Board(GASB) is currently the source of generally accepted accounting principals (GAAP)used by State and Local governments in the United States. The mission of the GASB is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of the financial reports. The GASB has issued Statements, Interpretations, Technical Bulletins and Concept Statements in defining GAAP for state and local governments since 1984. In addition to pensions, many state and local governmental employers provide other post- employment benefits (OPEB), such as post-employment healthcare for retirees. GASB believes that the cost of benefits that will be provided after an employee separates from service should be reported by the employer as they accrue over the working career of the individual in the same manner as pension benefits. GASB's Statement No. 45 establishes standards for the measurement,recognition, and display of OPEB expenditures and related liabilities (assets), note disclosures, and if applicable,required supplementary information in the financial reports of state and local government employers. Traditionally most OPEB plans,the City's included, are funded on a pay-as-you-go basis and the financial statements generally do not report the financial effects of OPEB until the benefit is paid. Agreement with ICMA-RC and Trust November 9, 2010 Page 2 GASB No. 45 requires the City to have an actuarial valuation performed biennially to determine the annual required contribution needed to be set aside in order reduce the OPEB plan's unfunded liability, or the amount of the future benefit that monies have not yet been allocated to cover. The only way for employers to offset the liability that is accruing is to set aside funds in a trust dedicated solely to funding OPEB, although employers are not required to do so. However to maintain stable credit ratings, it is recommended that a trust be established and at least partially funded. The monies are exclusively set aside for the purpose of funding retiree insurance costs and, although the goal is for the monies to be invested and have a long-term rate of return,the funds can be used for current year costs related to retiree health benefits if the need arose. The City's last actuarial study was performed for the fiscal year beginning October 1, 2007 as required by GASB. The City's annual required contribution as of September 30, 2009 was $1,357,922 but the net OPEB obligation was $439,418, which is net of the costs incurred during the year. Currently Holmes &Murphy is performing an actuarial valuation as of September 30, 2010. The Integral Part Trust will hold assets and income to be used for the exclusive purpose of funding post-retirement benefits. The City shall contribute to the Trust the annual required contribution as determined by the actuarial valuation or a portion there of. The funds will be invested in Vantagepoint funds and carefully selected institutional class non-ICMA funds and managed by ICMA-RC investment P rofessionals. Under the Administrative Services Agreement, ICMA-RC will act as a recordkeeper with the respect to the investment account that will be used to fund the retiree health benefits. ICMA-RC will facilitate the investment administration of the assets, including maintaining records of the City's contributions, earnings, and disbursements and providing periodic reports to the City of the same. The agreement is for five years and will renew annually each succeeding year unless there is written termination notice provided by either party. Drafts of the agreement and trust document are attached for your review. BUDGETARYIMPACT Any amount of contribution made to the Integral Part Trust will be made from the Employee Benefits Fund. A contribution made in FY 2011, will come before Council for approval at a future date. VantageCare RHS Employer Investment Program DECLARATION OF TRUST OF THE [Insert name of Employer] INTEGRAL PART TRUST a ICMA C Building Retirement Security VantageCare RHS Employer Investmenr Program DECLARATION OF TRUST OF THE [Insert name of Employer] INTEGRAL PART TRUST Declaration of Trust made as of the day of ,200 ,by (hereinafter alternatively referred to as the"Employer"or the"Trustee"). [Insert name of Employer] RECITALS WHEREAS,the Employer is a governmental entity exempt from federal income tax under the Internal Revenue Code of 1986;and WHEREAS,the Employer seeks to provide for the security and welfare of its Retirees by funding one or more post-retirement wel- fare benefit plans,programs or arrangements to provide for life,sickness,medical,disability,severance and other similar benefits through insurance and self-funded reimbursement plans(collectively a"Plan");and WHEREAS,it is an essential function and integral part of the exempt activities of the Employer to assist Retirees by making contribu- tions to and accumulating assets in the trust,a segregated fund,for post-retirement welfare benefits under such a Plan;and WHEREAS,the authority to provide for the investment and general administration of assets to be used to fund such a Plan is vested in the Employer or its designee,who has the authority and shall be subject to the duties with respect to the trust specified in this Declaration of Trust;and WHEREAS,the Employer wishes to establish this trust to hold assets and income to be used for the exclusive purpose of funding post- retirement welfare benefits under a Plan for its Retirees. NOW,THEREFORE,the Employer does hereby establish this trust,to be known as the Declaration of Trust of the Integral Part Trust (hereinafter referred to as the"Trust"),and agree that [Insert name of Employer] the following constitute the Declaration of Trust(hereinafter referred to as the"Declaration"): ARTICLE I DEFINITIONS 1.1 Definitions. For the purposes of this Declaration,the following terms shall have the respective meanings set forth below unless otherwise expressly provided. (a) Account"means the investment recordkeeping account established to fund post-retirement welfare benefits on behalf of Employer's Retirees. (b) Administrator"means the Employer. The Employer may contract for such administrative services as are necessary to imple- ment a Plan. (c) "Code"means the Internal Revenue Code of 1986,as amended from time to time. (d) "Retiree"means an individual who performs services for the Employer,and who has been designated as eligible to receive ben- efits under a Plan. (e) "Investment Fund"means any separate investment option or vehicle selected by the Employer in which all or a portion of the Trust assets may be invested as herein provided. The Trustee shall not be required to select any Investment Fund. (f) "Trust"means the trust established by this Declaration. (g) "Trustee" means the Employer or its designee. 2 Dedararion of Trust ARTICLE II ESTABLISHMENT OF TRUST 2.1 The Trust is hereby established as of the date set forth above for the exclusive purpose of providing a funding mechanism for post- retirement welfare benefits fo-the Employer's Retirees. ARTICLE III CONSTRUCTION 3.1 This Trust and its validity,construction and effect shall be governed by the laws of the State of (insert State of Employer] 3.2 Pronouns and other similar words used herein in the masculine gender shall be read as the feminine gender where appropriate,and the singular form of words shall be read as the plural where appropriate. 3.3 If any provision of this Trust shall be held illegal or invalid for any reason,such determination shall not affect the remaining provi- sions,and such provisions shall be construed to effectuate the purpose of this Trust. ARTICLE IV BENEFITS 4.1 Benefits. This Trust may be used to fund benefits on behalf of a Retiree pursuant to the terms of a Plan. 4.2 Form of Benefits. Assets held in this Trust may be used to reimburse a Retiree for insurance premiums or other payments expend- ed for permissible benefits described under a Plan. This Trust may reimburse the Employer,or the Administrator for insurance premiums or other payments pursuant to the Plan. ARTICLE V GENERAL DUTIES 5.1 It shall be the duty of the Trustee to hold title to assets held in respect of the Account and Plan or Plans in the Trustee's name,as directed by the Employer or its designees in writing. The Trustee shall not be under any duty to compute the amount of contribu- tions to be paid by the Employer or to take any steps to collect such amounts as may be due to be held in trust under the terms of a Plan. The Trustee shall not be responsible for the custody,investment,safekeeping or disposition of any assets comprising the Trust,to the extent such functions are performed by the Employer or the Administrator,or both. 5.2 It shall be the duty of the Employer,subject to the provisions of a Plan,to pay over to the Administrator or other person desig- nated hereunder from time to time the Employer's contributions,and to keep accurate books and records,or cause its designee to keep accurate books and records with respect to the Account and a Plan. ARTICLE VI INVESTMENTS 6.1 The Employer may appoint one or more investment managers to manage and control all or part of the assets of the Trust and the Employer shall notify the Trustee in writing of any such appointment. 6.2 The Trustee shall not have any discretion or authority with regard to the investment of the Trust and shall act solely as a directed Trustee of the assets of which it holds title.To the extent directed by the Employer,the Trustee is authorized and empowered with the following powers,rights and duties,each of which the Trustee shall exercise in a nondiscretionary manner: (a) To cause stocks,bonds,securities,or other investments to be registered in its name as Trustee or in the name of a nominee,or to take and keep the same unregistered; I (b) To employ such agents and legal counsel as it deems advisable or proper in connection with its duties and to pay such agents and legal counsel a reasonable fee. The Trustee shall not be liable for the acts of such agents and counsel or for the acts done in good faith and in reliance upon the advice of such agents and legal counsel,provided it has used reasonable care in selecting such agents and legal counsel; 3 (c)To exercise where applicable and appropriate any rights of ownership in any contracts of insurance in which any part of the Trust may be invested and to pay the premiums thereon;and (d)At the direction of the Employer(or Participants,their Spouses,Dependents or Beneficiaries or the investment manager,as the case may be)to sell,write options on,convey or transfer,invest and reinvest any part thereof in each and every kind of property, whether real,personal or mixed,tangible or intangible,whether income or non-income producing and wherever situated, including but not limited to,time deposits(including time deposits in the Trustee or its affiliates,or any successor thereto,if the deposits bear a reasonable rate of interest),shares of common and preferred stock,mortgages,bonds,leases,notes,debentures, equipment or collateral trust certificates,rights,warrants,convertible or exchangeable securities and other corporate,individual or government securities or obligations,annuity,retirement or other insurance contracts,mutual funds(including funds for which the Trustee or its affiliates serve as investment advisor,custodian or in a similar or related capacity),or in units of any other common,collective or commingled trust fund. 6.3 Notwithstanding anything to the contrary herein,the assets of the Account shall be held by the Trustee as title holder only. Persons holding custody or possession of assets titled to the Trust shall include the Employer,the Administrator,the investment manager,and any agents and subagents,but not the Trustee. The Trustee shall not be responsible or liable for any loss or expense which may arise from or result from compliance with any direction from the Employer,Administrator,the investment manager,or such agents to take title to any assets nor shall the Trustee be responsible or liable for any loss or expense which may result from the Trustee's refusal or failure to comply with any direction to hold title,except if the same shall involve or result from the Trustee's negligence or intentional misconduct. The Trustee may refuse to comply with any direction from the Employer,the Administrator,the investment manager,or such agents in the event that the Trustee,in its sole and absolute discretion,deems such direction illegal. 6.4 Notwithstanding anything to the contrary herein,the Employer or,if so designated by the Employer,the Administrator and the investment manager or another agent of the Employer,will be responsible for valuing all assets so acquired for all purposes of the Trust and of holding,investing,trading and disposing of the same. The Employer will indemnify and hold the Trustee harmless against any and all claims,actions,demands,liabilities,losses,damages,or expenses of whatsoever kind and nature,which arise from or are related to any use of such valuation by the Trustee or holding,trading,or disposition of such assets. 6.5 The Trustee shall and hereby does indemnify and hold harmless the Employer from any and all actions,claims,demands,liabilities, losses,damages and reasonable expenses of whatsoever kind and nature in connection with or arising out of(a)the Trustee's failure to follow the directions of the Employer,the Administrator,the investment manager,or agents thereof,except as permitted by the last sentence of Section 6.3 above;(b)any disbursements made without the direction of the Employer,the Administrator,the investment manager or agents thereof;and(c)the Trustee's negligence,willful misconduct,or recklessness with respect to the Trustee's duties under this Declaration. ARTICLE VII CONTRIBUTIONS 7.1 Employer Contributions. The Employer shall contribute to the Trust such amounts as specified in the employer's liability for Other Post Employment Benefits. 7.2 Receipt of Contributions. The Employer or,if so designated by the Employer,the Administrator or investment manager or another agent of the Employer,shall receive all contributions paid or delivered to it hereunder and shall hold,invest,reinvest and administer such contributions pursuant to this Declaration,without distinction between principal and income. The Trustee shall not be responsible for the calculation or collection of any contribution under the Plan,but shall hold title to property received in respect of the Plan in the Trustee's name as directed by the Employer or its designee pursuant to this Declaration. Declaration of Trust 7.3 No amount maintained under this Trust shall be subject to transfer,assignment,or alienation,whether voluntary or involuntary, in favor of any creditor,transferee,or assignee of the Employer or the Trustee. 7.4 Upon the satisfaction of all liabilities under a Plan to provide benefits to Retirees,any amount of Employer contributions,plus accrued earnings thereon,remaining in the Trust shall be returned to the Employer. ARTICLE VIII MULTIPLE PLANS 8.1 If the Employer hereafter adopts one or more other Plans and designates the Trust hereby created as part of such other Plan,the Employer or,if so designated by the Employer,the Administrator or an investment manager or another agent of the Employer shall,subject to the terms of this Declaration,accept and hold hereunder contributions to such other PIans. In that event(a)the Employer or,if so designated by the Employer,the Administrator or an investment manager or another agent of the Employer, may commingle for investment purposes the contributions received under such Plan or Plans with the contributions previously received by the Trust,but the books and records of the Employer or,if so designated by the Employer,the Administrator or an investment manager or another agent of the Employer,shall at all times show the portion of the Trust Fund allocable to each Plan; (b)the term"Plan"as used herein shall be deemed to refer separately to each other Plan;and(c)the term"Employer"as used herein shall be deemed to refer to the person or group of persons which have been designated by the terms of such other Plans as having the authority to control and manage the operation and administration of such other Plan. ARTICLE IX DISBURSEMENTS AND EXPENSES 9.1 The Employer or its designee shall make such payments from the Trust at such time to such persons and in such amounts as shall be authorized by the provisions of a Plan provided,however,that no payment shall be made,either during the existence of or upon the discontinuance of the Plan(subject to Section 7.4),which would cause any part of the Trust to be used for or diverted to purposes other than the exclusive purpose of funding post-retirement welfare benefits for Retirees pursuant to the provisions of a Plan. 9.2 The Employer,Trustee and Administrator may be reimbursed for expenses reasonably incurred by them in the administration of the Trust. All such expenses,including,without limitation,reasonable fees of accountants and legal counsel to the extent not otherwise reimbursed,shall constitute a charge against and shall be paid from the Trust upon the direction of the Employer. ARTICLE X ACCOUNTING 10.1 The Trustee shall not be required to keep accounts of the investments, receipts,disbursements,and other transactions of the Trust,except as necessary to perform its title-holding function hereunder. All accounts,books,and records relating thereto shall be maintained by the Employer or its designee. 10.2 As promptly as possible following the dose of each year,the Trustee shall file with the Employer a written account setting forth assets titled to the Trust as reported to the Trustee by the Employer or its designee. ARTICLE XI MISCELLANEOUS PROVISIONS 11.1 -Neither the Trustee nor any affiliate thereof shall be required to give any bond or to qualify before,be appointed by,or account to any court of law in the exercise of its powers hereunder. 11.2 No person transferring title or receiving a transfer of title from the Trustee shall be obligated to look to the propriety of the acts of the Trustee in connection therewith. 11.3 The Employer may engage a Trustee as its agent in the performance of any duties required of the Employer under a Plan,but such agency shall not be deemed to increase the responsibility or liability of the Trustee under this Declaration. 11.4 The Employer shall have the right at all reasonable times during the term of this Declaration and for three(3)years after the termination of this Declaration to examine,audit,inspect,review,extract information from,and copy all books,records,ac- counts,and other documents of the Trustee relating to this Declaration and the Trustees'performance hereunder. 5 VantageCare RHS Employer Investment Program ARTICLE XII AMENDMENT AND TERMINATION 12.1 The Employer reserves the right to alter,amend,or(subject to Section 9.1)terminate this Declaration at any time for any reason without the consent of the Trustee or any other Ferson,provided that no amendment affecting the rights,duties,or responsibilities of the Trustee shall be adopted without the execution of the Trustee to the amendment. Any such amendment shall become effective as of the date provided in the amendment,if requiring the Trustee's execution,or on delivery of the amendment to the Trustee,if the Trustee's execution is not required. 12.2 Upon termination of this Declaration and upon the satisfaction of all liabilities under a Plan to provide such benefits,any amount of Employer contributions,plus accrued earnings thereon,remaining in the Accounts shall be returned to the Employ- er. ARTICLE XIII SUCCESSOR TRUSTEES 13.1 The Employer reserves the right to discharge the Trustee for any or no reason,at any time by giving ninety(90)days'advance written notice. 13.2 The Trustee reserves the right to resign at any time by giving ninety(90)days'advance written notice to the Employer. 13.3 In the event of discharge or resignation of the Trustee,the Employer may appoint a successor Trustee who shall succeed to all rights,duties,and responsibilities of the former Trustee under this Declaration,and the terminated Trustee shall be deemed discharged of all duties under this Declaration and responsibilities for the Trust. ARTICLE XIV LIMITED EFFECT OF TRUST 14.1 Neither the establishment of the Trust or any modification thereof,the creation of any fund or account,nor the payment of any benefits,shall be construed as giving to any person any legal or equitable right against the Trustee,the Administrator,the Employer or any officer or employee thereof,except as may otherwise be expressly provided in a Plan or in this Declaration. ARTICLE XV PROTECTIVE CLAUSE 15.1 Neither the Administrator,the Employer,nor the Trustee shall be responsible for the validity of any contract of insurance or other arrangement maintained in connection with a Plan,or for the failure on the part of the insurer or provider to make pay- ments provided by such contract,or for the action of any person which may delay payment or render a contract void or unen- forceable in whole or in part. IN WITNESS WHEREOF,the Employer/Trustee has executed this Declaration by its duly authorized officers,as of the date first herein- above mentioned. EMPLOYER/TRUSTEE By: 6 CMARC Building Retirement Securuy ICMA RETIREMENT CORPORATION 777 NORTH CAPITOL STREET,NE WASHINGTON,OC 200024240 800-669-7400 PARA ASISTEKIA EN ESPANOL LLAME AL 800-669-8216 WWWACMARCORG FRM080-014-200805-(854 REVISED AUGUST 2008 ADMINISTRATIVE SERVICES AGREEMENT Type: VantageCare RHS Employer Investment Program Account Number: 803147 Plan number 803147 ADMINISTRATIVE SERVICES AGREEMENT This Agreement,made as of the day of , 20i (herein referred to as the "Inception Date"),between The International City Management Association Retirement Corporation("ICMA-RC"), a nonprofit corporation organized and existing under the laws of the State of Delaware; and the City of Beaumont("Employer")a local governmental instrumentality organized and existing under the laws of the State of Texas with an office at 801 Main St., Beaumont, Texas 77701. RECITALS Employer acts as a public employer and is seeping to provide retiree health benefits for its eligible employees and retirees; ICMA-RC makes available the VantageCare Retirement Health Savings Program Employer Investment Program ("RHS EIP"or"Program")to public employers as a means of providing retiree health benefits on behalf of employees and retirees of such employer; ICMA-RC further makes available The Vantagepoint Funds and other non-proprietary, no-load, diversified mutual funds, as investment vehicles for public employer plan assets, including RHS EIP assets; Employer desires to fund retiree health benefits by establishing an investment account under the RHS EIP,to be invested in one or more of The Vantagepoint Funds or other non-proprietary mutual funds on a pooled basis; Employer intends that the assets so invested ultimately shall be used to provide retiree health benefits for its eligible employees and retirees under the Program. AGREEMENTS 1. Establishment of Account Employer hereby establishes an RHS EIP investment account("Account") for the purpose of investing assets Employer intends to use to fund retiree health benefits under the Program. Account assets will be held in trust, and invested in accordance with the Declaration of Trust of the Integral Part Trust established by Employer. 2. Appointment of ICMA-RC Employer appoints ICMA-RC to act as recordkeeper with respect to the Account to perform all non-discretionary functions necessary to facilitate the investment administration of Account assets. The functions to be performed by ICMA-RC and its agents include: (a) allocation in accordance with Employer direction of Account assets to investment funds made available under the Program; Plan number 803147 (b) maintenance of Account records reflecting amounts contributed, income, gain, or loss credited, and amounts as allocated to provide benefits; (c) provision of periodic reports to the Employer regarding the status of the Account and Account investments. 3. Employer Duty to Furnish Information; Review of Statements Employer agrees to furnish to ICMA-RC on a timely basis such information as is necessary for ICMA-RC to carry out its responsibilities with respect to the Account, including: (a)information needed to allocate Account assets to investment funds and(b)relevant Employer and other identifying information(including tax identification numbers). ICMA-RC shall be entitled to rely upon the accuracy of any information that is furnished to it by a responsible official of the Employer, and ICMA-RC shall not be responsible for any error arising from its reliance on such information. ICMA-RC will provide Account information in reports, statements or accountings. ICMA-RC shall correct transaction errors made by ICMA-RC where such error causes the Employer a loss(or the Employer does not experience a gain that Employer otherwise would have experienced absent the error) according to the following policy. For transactions that receive confirmation statements,if you notify us within 30 days of the confirmation date(the date the confirmation is sent), ICMA-RC shall correct the transaction and the applicable account will be made 100% whole. For transactions that do not receive confirmation statements, if you notify us within 90 days following the end of the quarter,we will correct the transaction and the applicable account will be made 100%whole. 4. Certain Representations and Warranties ICMA-RC represents and warrants to Employer that: (a) ICMA-RC is a non-profit corporation with full power and authority to enter into this Agreement and to perform its obligations under this Agreement. (b) ICMA-RC is an investment adviser registered as such with the Securities and Exchange Commission under the Investment Advisers Act of 1940,as amended. ICMA-RC Services, LLC (a wholly owned subsidiary of ICMA-RC)is registered as a broker-dealer with the Securities and Exchange Commission(SEC) and is a member in good standing of Financial Industry Regulatory Authority(FINRA) Employer represents and warrants to ICMA-RC that: (c) Employer is organized in the form and manner recited in the opening paragraph of this Agreement with full power and authority to enter into and perform its obligations under this Agreement and to act for the Account and Account beneficiaries in the manner contemplated in this Agreement. Execution, delivery,and performance of this Plan number 803147 Agreement will not conflict with any law,rule,regulation or contract by which the Employer is bound or to which it is a party. (d) Any information required to be retained by the Employer in connection with an RHS EIP Plan shall be set forth in the RHS EIP Plan materials developed by ICMA-RC and provided to the Employer. (e) Employer is aware that their Account investments in The Vantagepoint Funds are limited to $250,000 per fund and an aggregate of$1,000,000 per EIP plan. 5. Compensation and Payment Employer acknowledges that certain wholly-owned subsidiaries of ICMA-RC receive compensation for advisory and other services furnished to The Vantagepoint Funds. These fees are disclosed in The Vantagepoint Funds Prospectus. Employer further acknowledges that fees for non-proprietary funds will be charged on the following schedule: Assets EIP First$15 MM 45 bps Next$35 MM 25 bps Next$25 MM 15 bps Over$75 MM 10 bps Any payment from non-proprietary mutual fund families or their service providers received by ICMA-RC or its affiliates in the form of 12b-1 fees, service fees, compensation for sub- accounting,and other services provided by ICMA-RC or its affiliates for the non-proprietary funds will be used to offset the asset-based fee schedule disclosed above. b. Custody Employer understands that amounts contributed to the Account are to be remitted directly to Vantagepoint Transfer Agents in accordance with instructions provided to Employer in the RHS EIP Plan materials and are not to be remitted to VantageTrust or ICMA-RC. In the event that any check or wire transfer is incorrectly labeled or transferred, ICMA-RC will return it to Employer with proper instructions. 7. Responsibility (a) ICMA-RC shall not be responsible for any acts or omissions of any person other than ICMA-RC in connection with the administration or operation of the Account. f Plan number 803147 (b) Employer is responsible for determining that there are no state or local laws that would prohibit it from establishing the Program. Employer is also responsible for determining that the investments selected for the Program fall within state/local requirements. (c) Employer understands that ICMA-RC shall not act as an investment adviser with respect to the Employer and will not be responsible for the Employer's investment decisions. ICMA-RC herein specifically disclaims any liability derived, connected to or related to any such decisions. (d) Employer agrees to indemnify an hold armless ICMA-RC and its agents from and against any and all claims, actions, ui or proceedings of any kind(whether in tort, in contract, at law or in equity)brought gainst said parties because of any injury or damage received or sustained by any person rsons or property arising out of or resulting from Employer's investment decisions. r ided,however,that Employer's obligations under this subsection shall not apply to rotec CMA-RC in the event that damages in any such action relate to the gross neglige ce or in ntional misconduct of ICMA-RC. 8. Term This Agreement shall be in effect for an initial term beginning on the Inception Date and ending 5 years after the Inception Date. This Agreement will be renewed automatically for each succeeding year unless written notice of termination is provided by either party to the other no less than 60 days before the end of such Agreement year. 9. Amendments and Adjustments (a) This Agreement may not be amended except by written instrument signed by the parties. (b) The parties agree that compensation for services under this Agreement and administrative and operational arrangements may be adjusted as follows: ICMA-RC may propose an adjustment by written notice to the Employer given at least 60 days before the effective date of the adjustment and the notice may appear in disclosure documents such as Employer Bulletins. Such adjustment shall become effective unless, within the 60 day period before the effective date the Employer notifies ICMA-RC in writing that it does not accept such adjustment, in which event the parties will negotiate with respect to the adjustment. (c) No failure to exercise and no delay in exercising any right,remedy,power or privilege hereunder shall operate as a waiver of such right,remedy, power or privilege. 10. Notices All notices required to be delivered under Section 9 of this Agreement shall be delivered personally or by registered or certified mail,postage prepaid, return receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North Capitol Street,N.E., Suite 600, Plan number 803147 Washington, D.C,20002-4240; (ii)Employer at the office set forth in the first paragraph hereof, or to any other address designated by the parry to receive the same by written notice similarly given. 11. Complete Agreement This Agreement shall constitute the sole agreement between ICMA-RC and Employer relating to the object of this Agreement and correctly sets forth the complete rights, duties and obligations of each party to the other as of its date. Any prior agreements,promises,negotiations or representations,verbal or otherwise,not expressly set forth in this Agreement are of no force and effect. 12. Governing Law This agreement shall be governed by and construed in accordance with the laws of the State of Texas,applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions. In Witness Whereof,the parties hereto have executed this Agreement as of the Inception Date first above written. CITY OF BEAUMONT By Date Signature Name and Title(PIease Print) INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION By Angela Montez Assistant Corporate Secretary RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby authorizes the establishment of an Integral Part Trust for the exclusive purpose of funding post retirement health insurance benefits; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to enter into an Administrative Services Agreement with The International City Management Association Retirement Corporation (ICMA-RC). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of November, 2010. - Mayor Becky Ames - 1