HomeMy WebLinkAboutMay 15, 2001A N N O T A T E D
A G E N D A
Arcadia City Council
1A and
Redevelopment Agency
J" "Po"Ts .< Meeting
May 15, 2001
6:00 p.m.
Council Chambers Conference Room
E1010
010 A
ACTION
ROLL CALL: Council /Agency Members Chandler, Chang, Kovacic, Marshall and Segal All present
TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY
COUNCIL/REDEVELOPMENT AGENCY (NON- PUBLIC HEARING /FIVE- MINUTE
TIME LIMIT PER PERSON) No one spoke
1. ARCADIA REDEVELOPMENT AGENCY - CLOSED SESSION At 6:04 p.m. the City Council/
Agency RECESSED. The Agency to
Closed Session.
Conference with Real Property Negotiators Government Code Section 54956.8)
5 North Fifth Avenue
11 -111 North Fifth Avenue
131 North Fifth Avenue
Ralph Alfren and Ken Kentner
Arnold F. Richter
R. Hale /M. Waken
Negotiating Parties - Agency: Deputy Executive Director
Developer: Fifth Avenue Group (Matt Waken /Richard Hale)
Under Negotiation - Price and terms of payment
RECESS THE REDEVELOPMENT AGENCY The Agency Closed Session
ended at 6:50. The City Council,
RECONVENED at 7:00 p.m. in the
7:00 p.m. Council Chambers.
Council Chambers
INVOCATION Reverend Thomas Shriver, Emmanuel Assembly of God, Arcadia Police Dept. Chaplain
PLEDGE OF ALLEGIANCE Martin Plourde, Principal, Arcadia High School
ROLL CALL: Council Members Chandler, Chang, Kovacic, Marshall and Segal All present
2. SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS see Minutes
MOTION: Read all Ordinances and Resolutions by title only and waive reading in full Adopted 5 -0
City Attorney Deitsch announced the Arcadia Redevelopment Agency met earlier this evening in
Closed Session. No reportable action w s take
3. PRESENTATION to Elizabeth Cox, Josh Si�verman and Crory tubbs, itizens of the Month
Aided Crossing Guard, Richard Bauer, who suffered a heart attach while
at work on March 12.
Mickey Segal, Mayor • Gail A. Marshall, Mayor Protempore • Roger Chandler, Dr. Shang Chang, Gary A. Kovacic, Council Members
William R. Kelly, City Manager
June D. Alford, City Clerk
a.
ACTION
4. PUBLIC HEARING
All Interested persons are invited to appear at the Public Hearing and to provide evidence or testimony concerning the
proposed item of consideration. You are hereby advised that should you desire to legally challenge any action taken by
the City, Council with respect to the proposed 4a. you may be limited to raising only those issues and objections which you
or someone else raised at or prior to the time of the public hearing.
Pub. Hrg.Closed
a. Time extension for T.A. 2000 -001 - Proposal to continue Section 1 of Ap_aLTed 5 -0
Ordinance No. 2119 amending Section 9273.1.10.1 of the Arcadia Municipal
Code to allow horseracing and other sporting and special events of a
national or international significance to be telecast via satellite feed
seven (7) days a week until no later then 1:30 a.m., and;
Introduction of Ordinance No. 2142, an Ordinance of the City Council of Introduced 5 -0
the City of Arcadia, California, extending for one (1) year Section 1 of
Ordinance No. 2119 relating to permitted uses in the S -1 zone (Section 9273.1.10.0).
5. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY
COUNCIL (NON- PUBLIC HEARING /FIVE- MINUTE TIME LIMIT PER PERSON) None
6. MATTERS FROM ELECTED OFFICALS
City Council Reports/ Announcements /Statements /Future Agenda Items See Minutes
JOINT MEETING OF THE ARCADIA REDLVELOPMENT AGENCY AND CITY COUNCIL
ROLL CALL: Agency Members Chandler, Chang, Kovacic, Marshall and Segal All present
7. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY
COUNCIUREDEVELOPMENT AGENCY (NON - PUBLIC HEARING /FIVE- MINUTE TIME
LIMIT PER PERSON) None
a. Recommendation to adopt ARA - Resolution No. 193, a Resolution of the Adopted 5 -0
Redevelopment Agency of the City of Arcadia, California, receiving the
report to the City Council for Amendment No. 5 to the Redevelopment
Plan for the Central Redevelopment Project ( "Report"), approving the
Report and transmitting the Report and.the Redevelopment Plan for
Amendment No. 5 to the Central Redevelopment Project to the City Council.
Recommendation to adopt ARA - Resolution No. 194, a Resolution of the Adopted 5 -0
Redevelopment Agency of the City of Arcadia, California, consenting to Pub.Hrg. 7 -3 -01
and calling for a joint public hearing on Amendment No. 5 to the
Redevelopment Plan for the Central Redevelopment Project.
C. Recommendation to adopt Resolution No. 6221, a Resolution of the Adopted 5 -0
City Council of the City of Arcadia, California, receiving the Report to the
City Council for Amendment No. 5 to the Redevelopment Plan for the
Central Redevelopment Project and the Redevelopment Plan for
Amendment No. 5 to the Central Redevelopment Project.
Meeting of the Arcadia Redevelopment Agency — continue
ACTION
d. Recommendation to adopt Resolution No. 6222, a Resolution of the Adopted 5 -0
City Council of the City of Arcadia, California, consenting to and calling for Joint rub. Hrg.
a joint public hearing on Amendment No. 5 to the Redevelopment Plan 7-3 -01
for the Central Redevelopment Project.
8. REDEVELOPMENT AGENCY - CONSENT
a. Minutes of the May 1, 2001 regular meeting.
b. Recommendation to appropriate an additional $12,000.00 for traffic
signal modifications at Huntington Drive /Santa Anita Avenue.
ADJOURN the Redevelopment Agency to June 5, 2001 at 6:00 p.m.
9. CITY COUNCIL - CONSENT
a. Minutes of the May 1, 2001 regular meeting.
Approved 5 -0
Approved 5 -0
b. Recommendation to award a ontract to Excel Paving Co. in the amount Approved 5 -0
of $236,768.00 for the rehabimation of Baldwin Avenue from Foothill
Boulevard to Cambridge Drive and southbound Baldwin Avenue from
Cambridge Drive to Huntington Drive.
C. Recommendation to approve receipt of an additional $15,000.00 from the Approved 5 -0
Arcadia Public Library Foundation for the enhancement and refurbishment
of the south patio of the Library.
d. Recommendation to appropriate an additional $15,000.00 from the General Approved 5 -0
Fund for professional traffic engineering services provided by Willdan and
Associates.
e. Recommendation to award a contract to Ironwood in the amount of Approved 5 -0
$34,473.60 for the Gilb Historical Museum casework.
f. Recommendation to award a one (1) year contract extension in the Approved 5 -0
amount of $73,200.00 to Traffic Operations, Inc, for citywide street striping
and pavement marking services and to waive formal bidding procedures.
g. Recommendation to award a contract in the amount of $594,450.00 to Approved 5 -0
Terra -Cal Construction, Inc. for the Anoakia Lane Well equipping, building
and piping project and to appropriate $845,346.00 from the Water Facilities
Replacement Fund.
h. Recommendation to adopt Resolution No. 6224,a Resolution of the City Adopted 5 -0
Council of the City of Arcadia, California, to provide a retirement program
to eligible City employees.
3
ACTION
10. CITY ATTORNEY
a. Recommendation to adopt Ordinance No. 2139, an Ordinance of the Adopted 5 -0
City Council of the City of Arcadia, California, amending the Arcadia
Municipal Code by adding a Chapter 10 to Article I, Part 2 regarding
delegation of certain signatory authority to the City Manager concerning
certain documents.
ADJOURN to June 5, 2001 at 6:00 p.m.
0
ADJOURNED at 8:06 p.m.
' °"� °_• STAFF REPORT
ADMINISTRATIVE SERVICES DEPARTMENT
May 15, 2001
TO: Mayor and City Council
FROM: Tracey L. Hause, Administrative Services Direct Ri
SUBJECT: ADOPTION OF THE PUBLIC AGENCY RETIREMENT SYSTEM
(PARS) TRUST PROVIDING FOR AN IRC 401(a) PLAN IN
WHICH ELIGIBLE EMPLOYEES MAY MAKE
CONTRIBUTIONS
SUMMARY:
On March 20, 2001, the City Council approved an Employment Agreement between the
City of Arcadia and William R. Kelly, City Manager. As part of that Agreement, the City
agreed to establish an IRC 401(a) defined contribution plan to which contributions may
be made in accordance with applicable law. The recommended action set forth will
establish the plan as required by the Agreement.
DISCUSSION:
The City of Arcadia is proposing to adopt a tax qualified governmental profit sharing
plan for the benefit of its eligible employees. A copy of the plan is on file in the
Administrative Services Department. By adopting this plan, an employee can choose to
contribute a portion of their salary, for retirement purposes, to the plan on a tax deferred
basis. The City may also make contributions to the plan on the employee's behalf. The
City Manager, by agreement is the only employee eligible to participate at this time.
The Public Agency Retirement System (PARS) is a tax - qualified multiple employer trust
that will hold the assets (contributions) of the plan. Both the Trust and the plan are
qualified under section 401(a) of the Internal Revenue Code. PARS was established in
1991 and is currently used by more than 155 public agencies with 180,000 participants in
California. The PARS retirement enhancement plan gives public agencies the Lability to
locally design and implement retirement plans that complement and enhance the existing
PERS retirement system.
LASER IMAGED
��''� r 0 0 e It
FISCAL IMPACT:
The City is obligated by agreement with the City Manager to pay up to $1,500.00 in start-
up costs for the plan. Sufficient funds are available in the 2000 -2001 FY operating
budget for this expenditure. The City Manager is responsible for all other costs related to
plan administration.
RECOMMENDATTION:
It is recommended that the City Council:
ADOPT THE ATTACHED RESOLUTION PROVIDING A RETIREMENT
ENHANCEMENT PROGRAM TO ELIGIBLE CITY EMPLOYEES.
Approved: al--)
William R. Kelly, City Manager
RESOLUTION NO. 6224
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA, CALIFORNIA, TO PROVIDE A
RETIREMENT ENHANCEMENT PROGRAM
TO ELIGIBLE CITY EMPLOYEES
WHEREAS, it is determined to be in the best interest of the City and its
employees to provide a Retirement Enhancement Program to eligible employees; and
WHEREAS, the City is eligible to be a member of the Public Agency Retirement
System (PARS) Trust, which has made available a Retirement Enhancement Plan
supplementing CALPERS and qualifying under the relevant sections of the Internal
Revenue Code and the California Government Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. The City Council hereby adopts the PARS Trust, including the
PARS Retirement Enhancement Plan, as part of the City Retirement Program effective
May 15, 2001.
Section 2. The City Council hereby appoints the City Manager or his/her
designee as the City's Plan Administrator for the Public Agency Retirement System.
Section 3. The City's PARS Administrator is hereby authorized to execute
the PARS legal and administrative service documents on behalf of the City to implement
a PARS supplemental plan to CALPERS.
Section 4. The City Clerk shall certify to the adoption of the Resolution.
Ll
J
Passed, approved and adopted this 15th day of May 2001.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
2
M
Mayor of the City of Arcadia
m
m
PUBLIC AGENCY
RETIREMENT SYSTEM (PARS)
TRUST AGREEMENT
n
PREAMBLE
n
The Huntington Beach City School District and State Center Community College District
formed and adopted the Public Agency Retirement System Trust ( "PARS Trust") on
July 1,1991 ( "Effective Date "). Subsequent to the Effective Date other California public
agencies adopted the PARS Trust as the funding vehicle for tax qualified retirement
plans for employees. Subsequent to the Effective Date the PARS Trust was amended.
Effective as of July 1, 1999 ( "Amended Effective Date ") the PARS Trust was amended
and restated in its entirety as contained herein. This amended and restated Trust shall
supersede all prior versions of the PARS Trust as of the Amended Effective Date.
m
TABLE OF CONTENTS
0
ARTICLE
ARTICLE I DEFINITIONS
ARTICLE II THE PARS TRUST PROGRAM
ARTICLE III ADMINISTRATIVE MATTERS
ARTICLE IV THE TRUSTEE
ARTICLE V INVESTMENTS
ARTICLE VI FIDUCIARY RESPONSIBILITIES
ARTICLE VII AMENDMENT, TERMINATION AND MERGER
ARTICLE VIII MISCELLANEOUS PROVISIONS
ARTICLE IX ACKNOWLEDGMENT AND ACCEPTANCE
2
2567_12 PEL
PAGE
3
4
7
12
18
25
28
30
32
MW
Article I
DEFINITIONS
1.1 "Act" shall mean California Government Code Sections 53215 - 53224, or their
successor sections.
1.2 "Agreement for Administrative Services" shall mean the agreement executed
between the Member Agency and the Trust Administrator which authorizes the
Trust Administrator to perform specific duties of administering the Member
Agency Plan and related Agency Trust.
1.3 "Amended Effective Date" shall mean July 1, 1999, the date the PARS Trust
Agreement was amended and restated in its entirety.
1.4 "Assets" shall mean all contributions and transfers of assets received by an
Agency Trust on behalf of a Member Agency's Plan, together with the income
and earnings from such contributions and transfers and any increments accruing
to them.
1.5 "Agency Trust" shall mean the legally separate and individual trust, whose
provisions are identical to those of the PARS Trust Agreement, that is
established by a Member Agency when it adopts the PARS Trust by executing
an Adoption Agreement.
1.6 "Alternate Trustee" shall mean a trustee, other than the Trustee of the PARS
Trust' Program, appointed by a Member Agency to serve as a trustee of a portion
of such Agency Trust's assets as to which the Trustee serves as custodian.
1.7 "Code" shall mean the Internal Revenue Code of 1986 as amended from time to
time.
1.8 "Custodian" shall mean Union Bank of California, N.A. whose duties are limited
to those specified in Section 4.3.
1.9 "Delegatee" shall mean an individual or entity, appointed by the Plan
Administrator or Member Agency to act in such matters as are specified in the
appointment.
1.10 "Effective Date" shall mean July 1, 1991, the date the PARS Trust Program was
established.
1.11 "Investment Fiduciary" shall mean the fiduciary with the authority and duty to
direct the investment and management (including the power to direct the
3
256712 PEL
acquisition and disposition) of some or all of the Assets of the Agency Trust
appointed by a Member Agency for its Agency Trust.
1.12 "Omnibus Account" shall mean an account, established for record keeping
purposes only, to commingle the Assets of the Agency Trust.
1.13 "Member Agency" shall mean a California public agency that adopts the
provisions of the PARS Trust Agreement.
1.14 "Plan" shall mean the tax qualified plan whose assets the Agency Trust holds.
1.15 "Plan Administrator" shall mean the individual designated by position of
employment at the Member Agency to act on its behalf in all matters relating to
the Member Agency's participation in the PARS Trust Program and Agency
Trust.
1.16 "PARS Trust Agreement" or "Trust Agreement" shall mean the pro forma Public
Agency Retirement System trust document adopted by each Member Agency
upon execution of an Adoption Agreement, as amended from time to time.
1.17 "PARS Trust Program" shall mean the Public Agency Retirement System trust
arrangement.
1.18 "Participant" shall mean individual participating in a Member Agency Plan or that
individual's beneficiary.
1.19 "Trust Administrator" shall mean Phase II Systems.
1.20 'Trustee" shall mean the entity appointed as trustee of the PARS Trust that shall
also serve as trustee of each Agency Trust established pursuant to the
provisions of this trust agreement -except where an Alternate .Trustee has been
appointed.
Article II
THE PARS TRUST PROGRAM
2.1 Multiple Employer Trust
The PARS Trust Program is a multiple employer trust arrangement established to
provide economies of scale and efficiency of administration to public agencies
that adopt it to hold the assets of their Member Agency Plans maintained for the
benefit of their employees. The PARS Trust Program consists of the Agency
Trusts adopted and not terminated by Member Agencies.
a
2567_12 PEL
2.2 Qualified Governmental Retirement Trust
The PARS Trust Program is established pursuant to the provisions of Section
501 of the Internal Revenue Code of 1986, as amended (the "Code "), and
California Government Code Sections 53215 through 53224 providing for
pension trusts established by public agencies.
2.3 Date of Adoption
The date as of which each Member Agency adopts the PARS Trust Program
shall be the "Effective Date" of the PARS Trust Agreement and the Agency Trust,
as defined in Section 2.5, as to that Member Agency.
2.4 Member Agencies
Any California public agency may, by action of its governing body in a writing
accepted by the Trustee, adopt the provisions of the PARS Trust Agreement as
the trust portion of a qualified governmental retirement plan established for the
benefit of its employees. Executing an adoption instrument for the PARS Trust
Program ( "Adoption Agreement "), attached hereto as Exhibit "A ", shall constitute
such adoption, unless the Trustee requires additional evidence of adoption. In
order for such adoption to be effective, the public agency must also execute an
Agreement for Administrative Services with Phase 11 Systems, the Trust
Administrator, pursuant to section 3.6 of this PARS Trust Agreement. Such
adopting employer shall then become a Member Agency of the PARS Trust
Program.
Each such Member Agency shall, at a minimum, furnish the Trust Administrator
with the following documents to support its adoption of the PARS Trust Program:
(a) a certified copy of the Member Agency governing body resolution
authorizing the adoption of the PARS Trust Agreement and the
appointment of an individual designated by position of employment at the
Member Agency to act on its behalf in all matters relating to the Member
Agency's participation in the PARS Trust Program and Agency Trust
( "Plan Administrator ");
(b) an original of the Adoption Agreement executed by the Plan Administrator
or other duly authorized Member Agency employee;
(c) an original of the Agreement for Administrative Services with Phase II
Systems executed by the Plan Administrator or other duly authorized
Member Agency employee and Phase II Systems;
(d) an address notice; and
256712 PEL
lw r
(e) such other documents as the Trustee may reasonably request.
2.5 Agency Trust
By adopting the PARS Trust Agreement, as provided in Section 2.4, a Member
Agency shall be deemed to have adopted a legally separate and individual
Agency Trust whose provisions are identical to those of the PARS Trust
Agreement. The Assets of an Agency Trust shall be available only to pay
benefits pursuant to the provisions of the Plan to participants and beneficiaries of
the Member Agency entitled to receive benefits under the provisions of the Plan.
The Agency Trust is created for the purpose of receiving contributions made to
fund the Member Agency's Plan; accumulating, managing and investing those
contributions; and providing benefits to active or retired participants of the Plan,
their joint annuitants, or their beneficiaries. Each Agency Trust shall be used to
fund only a single Plan maintained by the Member Agency. A Member Agency
may establish additional Agency Trusts to fund the assets of additional Plans by
executing one or more additional Adoption Agreement(s).
2.6 Assets of Agency Trust
The assets of the Agency Trust shall consist of all contributions and transfers
received by the Agency Trust on behalf of the Member Agency's Plan, together
with the income and earnings from such contributions and transfers, and any
increments accruing to them ( "Assets "). All contributions or transfers shall be
received by the Trustee in cash or in other property acceptable to the Trustee.
The Trustee shall manage and administer the Assets of the Agency Trust without
distinction between principal and income. The Trustee and the Trust
Administrator shall have no duty to compute any amount to be transferred or paid
to the Agency Trust by the Member Agency and the _Trustee and the Trust
Administrator shall not be responsible for the collection of any contributions or
transfers to the Agency Trust.
2.7 Commingling for Investment and Administration
The Assets of more than one Agency Trust may be commingled by the Trustee
or Investment Fiduciary in one or more Omnibus Accounts for investment and
administrative purposes, to provide economies of scale and efficiency of
administration to the Agency Trusts. The responsibility for Plan level accounting
within this Omnibus Account(s) shall be that of the Trust Administrator.
2.8 Trustee Accounting
The Trustee shall be responsible only for maintaining records and maintaining
accounts for the aggregate assets of the PARS Trust Program. The
6
2567_12 PEL
responsibility for Plan level accounting for each Agency Trust, based upon the
Omnibus Account(s), shall be that of the Trust Administrator.
2.9 No Diversion of Assets
The Assets in each Agency Trust shall be held in trust for the exclusive purpose
of providing benefits to the Participants of the Plan for which the Agency Trust is
holding assets and defraying the reasonable expenses of such Plan. The Assets
shall not be used for or diverted to, any other purpose.
2.10 Type and Nature of Trust
Neither the full faith and credit nor the taxing power of each Member Agency, the
State of California or any political subdivision thereof other than each Member
Agency is pledged to the distribution of benefits hereunder. Except for
contributions and other amounts hereunder, no other amounts are pledged to the
distribution of benefits hereunder. Distributions of benefits are neither general
nor special obligations of any Member Agency, but are payable solely from the
Assets of each Agency Trust, as more fully described herein. No employee of
any Member Agency or beneficiary may compel the exercise of the taxing power
by any Member Agency.
Distributions of Assets under any Agency Trust are not debts of any Member
Agency, the State of California or any of its political subdivisions within the
meaning of any constitutional or statutory limitation or restriction. Such
distributions are not legal or equitable pledges, charges, liens or encumbrances,
upon any of a Member Agency's property, or upon any of its income, receipts, or
revenues, except amounts in the accounts which are, under the terms of each
Plan, Agency Trust and the Act, set aside for distributions. Neither the members
of the legislative body of any Member Agency nor its officers, employees, agents
or volunteers are liable hereunder.
Article III
ADMINISTRATIVE MATTERS
3.1 Appointment of Trustee
Two thirds or more of the Member Agencies acting jointly, may by a two- thirds or
greater vote, act to appoint a bank, trust company, retirement board, insurer,
committee or such other entity as permitted by California law, to serve as the
trustee of the PARS Trust Program ( "Trustee "). Such action must be in writing.
Upon the written acceptance of such entity it shall become the Trustee of the
PARS Trust Program and, subject to the provisions of Section 3.10, the trustee of
each Agency Trust. By executing an Adoption Agreement, the adopting Member
2567_12 PEL
err✓ %N0
Agency hereby appoints the Union Bank of California, N.A. as the Trustee as of
the Amended Effective Date.
3.2 Removal of Trustee
Two thirds or more of the Member Agencies acting jointly, may by a vote of two -
thirds or greater, act to remove the Trustee. Such action must be in writing and
delivered to the Trustee and the Trust Administrator. Upon such removal from
the PARS Trust the Trustee shall also be removed as trustee of each of the
Agency Trusts. The Plan Administrator may remove the Trustee as trustee of an
Agency Trust by giving at least ninety (90) days prior written notice to the Trustee
and the Trust Administrator and withdrawing from the PARS Trust Program.
3.3 Resignation of Trustee
The Trustee may resign as trustee of the PARS Trust Program at any time by
giving at least ninety (90) days prior written notice to the Trust Administrator and
to each Plan Administrator of each Member Agency that has adopted the PARS
Trust Agreement and not terminated its participation in the PARS Trust Program.
Such resignation shall also be deemed a resignation as trustee of each of the
Agency Trusts. The Trustee may resign as trustee of an Agency Trust by giving
at least ninety (90) written notice to the Plan Administrator of such Agency Trust
and to the Trust Administrator. The Member Agency's appointment of a
successor trustee to the Agency Trust will vest the successor trustee with title to
the Assets of its Agency Trust upon the successor trustee's acceptance of such
appointment.
3.4 The Plan Administrator
The governing body of each Member Agency shall have plenary authority for the
administration and investment of the Agency Trust pursuant . to the laws and
Constitution of the State of California and applicable - =federal laws and
regulations. Each Member Agency shall by resolution designate a Plan
Administrator. Unless otherwise specified in the instrument the Plan
Administrator shall be deemed to have authority to act on behalf of the Member
Agency in all matters pertaining to the Member Agency's participation in the
PARS Trust Program and in regard to the Agency Trust of the Member Agency.
Such appointment of a Plan Administrator shall be effective upon receipt and
acknowledgment by the Trustee and the Trust Administrator and shall be
effective until the Trustee and Trust Administrator are furnished with a resolution
of the Member Agency that the appointment has been modified or terminated.
3.5 Failure to Appoint Plan Administrator
If a Plan Administrator is not appointed, or such appointment lapses, the Member
Agency shall be deemed to be the Plan Administrator. As used in this document
2567_12 PEL
Plan Administrator shall be deemed to mean Member Agency when a Plan
Administrator has not been appointed.
3.6 Delegatee
The Plan Administrator, acting on behalf of the Member Agency, may delegate
certain authority, powers and duties to an entity to act in those matters specified
in the delegation ( "Delegatee "). Any such delegation must be in a writing that
names and identifies the Delegatee, states the effective date of the delegation,
specifies the authority and duties delegated, is executed by the Plan
Administrator and is acknowledged in writing by the Delegatee, the Trust
Administrator (if not the Delegatee) and the Trustee. Such delegation shall be
effective until the Trustee and the Trust Administrator are directed in writing by
the Plan Administrator that the delegation has been rescinded or modified.
3.7 Certification to Trustee
The governing body of each Member Agency, or other duly authorized official,
shall certify in writing to the Trustee and the Trust Administrator the names and
specimen signatures of the Plan Administrator and Delegatee, if any, and all
others authorized to act on behalf of the Member Agency whose names and
specimen signatures shall be kept accurate by the Member Agency acting
through a duly authorized official or governing body of the Member Agency. The
Trustee and the Trust Administrator shall have no liability if it acts upon the
direction of a Plan Administrator or Delegatee that has been duly authorized, as
provided in Section 3.6, if, that Plan Administrator or Delegatee is no longer
authorized to act, unless the Member Agency has informed the Trustee and the
Trust Administrator of such change.
3.8 Directions to Trustee
Except as provided in Section 5.18 of this Trust Agreement, all directions to the
Trustee from the Plan Administrator or Delegatee must be in writing and must be
signed by the Plan Administrator or Delegatee, as the case may be. For all
purposes of this Trust Agreement, direction shall include any certification, notice,
authorization, application or instruction of the Plan Administrator, Delegatee or
Trustee appropriately communicated. The above notwithstanding direction may
be implied if the Plan Administrator or Delegatee has knowledge of the Trustee's
intentions and fails to file written objection.
The Trustee shall have the power and duty to comply promptly with all proper
direction of the Plan Administrator, or Delegatee, appointed in accordance with
the provisions of this PARS Trust Agreement. In the case of any direction
deemed by the Trustee to be unclear or ambiguous the Trustee may seek written
instructions from the Plan Administrator, the Agency or the Delegatee on such
9
256712 PEL
matter and await their written instructions without incurring any liability. If at any
time the Plan Administrator or the Delegatee should fail to give directions to the
Trustee, the Trustee may act in the manner that in its discretion seems advisable
under the circumstances for carrying out the purposes of the PARS Trust
Program and /or any Agency Trust which may include not taking any action. The
Trustee may request directions or clarification of directions received and may
delay acting until clarification is received. In the absence of timely direction or
clarification, or if the Trustee considers any direction to be a violation of the
PARS Trust Agreement or any applicable law, the Trustee shall in its sole
discretion take appropriate action, or refuse to act upon a direction.
3.9 Alternate Trustee
A Member Agency may appoint a trustee, other than the Trustee, as to a portion
of the assets in the Agency Trust by designating such person or entity as an
Alternate Trustee on the Adoption Agreement and by specifying which assets
shall be subject to the fiduciary management of the Alternate Trustee. Such
appointment shall not be effective unless it is in writing, specifies clearly the
assets as to which the Alternate Trustee is to have trustee powers, is
acknowledged in writing by the Alternate Trustee, is delivered to and
acknowledged by the Trustee and the Trust Administrator. Only a bank, trust
company, retirement board, insurer, the Member Agency or such entity as
permitted by California law to be a trustee may be appointed an Alternate
Trustee. Such appointment will become effective upon acceptance by the
Alternate Trustee.
3.10 Powers Of Alternate Trustee
The Alternate Trustee shall be deemed to have all of the powers and duties and
responsibilities specified in the PARS Trust Agreement for the PARS Trustee in
Article iV unless otherwise specified in the Adoption Agreement.
3.11 Responsibility of Trustee Upon Appointment of Alternate Trustee
Upon the appointment of an Alternate Trustee, the Trustee shall have no liability
or responsibility for any matters relating to the management, investment or
administration of those assets as to which the Alternate Trustee has been
appointed and shall only have the duties set forth in Section 4.3.
3.12 Trust Administrator
The Member Agencies have appointed Phase Ii Systems as the Trust
Administrator. The Trust Administrator has accepted its appointment subject to
each Member Agency's delegation of authority, to act as such, pursuant to
Section 3.6 of this PARS Trust Agreement. The Trust Administrator's duties
10
2567_12 PEL
involve the performance of the following services pursuant to the provisions of
this trust agreement and the Agreement for Administrative Services:
(a) Performing periodic accounting of the Agency Trust;
(b) Directing the Trustee to make distributions from the Agency Trust to
Participants pursuant to the provisions of the Member Agency's Plan and
liquidate assets in order to make such distributions;
(c) Notifying the Investment Fiduciary of the amount of Assets in the Agency
Trust available for further investment and management by the Investment
Fiduciary;
(d) Allocating contributions, earnings and expenses to each Agency Trust;
(e) Directing the Trustee to pay insurance premiums, to pay the fees of the
Trust Administrator and to do such other acts as shall be appropriate to
carry out the intent of the Agency Trusts.
(f) Such other services as the Member Agency and the Trust Administrator
may agree in the Agreement for Administrative Services pursuant to
Section 2.4.
3.13 The Trust Administrator shall be entitled to rely on, and shall be under no duty to
question, direction and /or data received from the Plan Administrator, or other
duly authorized entity, in order to perform its authorized duties under this trust
agreement. The Trust Administrator shall not have any duty to compute
contributions made to the Agency Trust, determine or inquire whether
contributions made to the Agency Trust by the Plan Administrator or other duly
authorized entity, are adequate to meet and discharge .liabilities -under the Plan; or
determine or inquire whether contributions. made to, the- Agency Trust are in
compliance with the Plan; The Trust Administrator shall not be liable for non
performance of duties if such non performance is directly caused by erroneous,
and /or late delivery of, directions or data from the Plan Administrator, or other
duly authorized entity.
3.14 Additional Trust Administrator Services
The Plan Administrator may at any time retain the Trust Administrator as its
agent to perform any act, keep any records or accounts and make any
computations which are required of the Member Agency or the Plan
Administrator by this PARS Trust Agreement or by the Member Agency's Plan.
The Trust Administrator shall be separately compensated for such service and
such services shall not be deemed to be contrary to the PARS Trust Agreement.
11
2567__12 PEL
3.15 Trust Administrator's Compensation
As may be agreed upon from time to time by the Member Agency and Trust
Administrator, the Trust Administrator will be paid reasonable compensation for
services rendered or reimbursed for expenses properly and actually incurred in
the performance of duties with respect to the Agency Trust and to the PARS
Trust Program in accordance with Section 53217 of the Act.
3.16 Resignation or Removal of Trust Administrator
The Trust Administrator may resign at any time by giving at least one hundred
twenty (120) days written notice to each Member Agency of the PARS Trust
Program and the Trustee. The Member Agencies, by a two- thirds or greater
vote, may remove the Trust Administrator by delivering, at least one hundred
twenty (120) days prior to the effective date of such removal, written notice to the
Trust Administrator and to the Trustee.
Article IV
THE TRUSTEE
4.1 Powers and Duties of the Trustee
Except as otherwise provided in Article V and subject to Article VI, the Trustee
shall have full power and authority with respect to property held in the Agency
Trust to do all such acts, take all proceedings, and exercise all such rights and
privileges, whether specifically referred to or not in this-document, as could be
done, taken or exercised by the absolute owner, including; - :without limitation, the
following:
(a) To invest and reinvest the Assets or any part hereof in any one or more
kind, type, class, item or parcel of property, real, personal or mixed,
tangible or intangible; or in any one or more kind, type, class, item or issue
of investment or security; or in any one or more kind, type, class or item of
obligation, secured or unsecured; or in any combination of them. To retain
the property for the period of time that the Trustee deems appropriate;
(b) To acquire and sell options to buy securities ( "call" options) and to acquire
and sell options to sell securities ( "put" options);
(c) To buy, sell, assign, transfer, acquire, loan, lease (for any purpose,
including mineral leases), exchange and in any other manner to acquire,
manage, deal with and dispose of all or any part of the Agency Trust
12
256712 PEL
property, for cash or credit and upon any reasonable terms and
conditions;
(d) To make deposits, with any bank or savings and loan institution, including
any such facility of the Trustee or an affiliate thereof provided that the
deposit bears a reasonable rate of interest;
(e) To invest and reinvest the Assets, or any part thereof in any one or more
collective investment trust funds, including common and group trust funds
that consist exclusively of assets of exempt pension and profit sharing
trusts and individual retirement accounts qualified and tax exempt under
the Code, that are maintained by the Trustee or.an affiliate thereof. The
declaration of trust or plan of operations for any such common or
collective fund is hereby incorporated herein and adopted into this PARS
Trust Agreement by this reference. The combining of money and other
assets of the Agency Trust with money and other assets of other qualified
trusts in such fund or funds is specifically authorized. Notwithstanding
anything to the contrary in this trust agreement, the Trustee shall have full
investment responsibility over assets of the trust invested in such
commingled funds. If the plan and trust for any reason lose their tax
exempt status, and the Assets have been commingled with assets of other
tax exempt trusts in Trustee's collective investment funds, the Trustee
shall within 30 days of notice of such loss of tax exempt status, liquidate
the Agency Trust's units of the collective investment fund(s) and invest the
proceeds in a money market fund pending investment or other instructions
from the Plan Administrator. The Trustee shall not be liable for any loss or
gain or taxes, if any, resulting from said liquidation;
(f) To place uninvested cash and cash awaiting distribution in one or more
mutual funds and /or commingled investment funds maintained by or made
available by the Trustee, and. to receive compensation.from the sponsor of
such fund(s) for services rendered, - separate and -apart from any Trustee's
fees hereunder. Trustee or Trustee's affiliate may also, be compensated
for providing investment advisory services to any mutual fund or
commingled investment funds;
(g) To borrow money for the purposes of the Agency Trust from any source
with or without giving security; to pay interest; to issue promissory notes
and to secure the repayment thereof by pledging all or any part of the
Assets;
(h) To take all of the following actions as directed by the Investment Fiduciary
or other person with investment discretion over the trust assets: to vote
proxies of 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,
13
2567_12 PEL
and to make any payments incidental thereto; 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 in the Agency Trust;
(i) 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;
(j) To raze or move existing buildings; to make ordinary or extraordinary
repairs, alterations or additions in and to buildings;. -to construct buildings
and other structures and to install fixtures and equipment therein;
(k) To pay or cause to be paid from the Agency Trust any and all real or
personal property taxes, income taxes or other taxes or assessments of
any or all kinds levied or assessed upon or with respect to the Agency
Trust or the Plan;
(1) As directed by the Trust Administrator, to hold term or ordinary life
insurance contracts on the lives of Participants (but in the case of conflict
between any such contract and the Plan, the terms of the Plan shall
prevail); to pay from the Agency Trust the premiums on such contracts; to
distribute, surrender or otherwise dispose of such contracts; to pay the
proceeds, if any, of such contracts to the proper persons in the event of
the death of the insured Participant; to enter into, modify, renew and
terminate annuity contracts of deposit administration of immediate
participation or other group or individual type with one or more insurance
companies and to pay or deposit all or any part of the Agency Trust
Assets thereunder, to provide in any such contract for1he investment of all
or any part of funds so deposited with the insurance.company in securities
under separate accounts; to exercise and . claim all . rights and benefits
granted to the contract holder by any such contracts;
(m) To exercise all the further rights, powers, options and privileges granted,
provided for, or vested in trustees generally under applicable federal or
California laws, as amended from time to time, it being intended that,
except as herein otherwise provided, the powers conferred upon the
Trustee herein shall not be construed as being in limitation of any authority
conferred by law, but shall be construed as consistent or in addition
thereto.
14
256712 PEL
i
4.2 Additional Trustee Powers
In addition to the other powers enumerated above, and whether or not the
Member Agency has retained investment authority or delegated it to an
Investment Fiduciary or Participants in Participant Directed Accounts, the Trustee
in any and all events is authorized and empowered:
(a) To invest funds pending required directions in any type of interest - bearing
account including without limitation, time certificates of deposit or interest -
bearing accounts issued by Union Bank of California N.A., or any mutual
fund or short term investment fund ( "Fund "), whether sponsored or
advised by Union Bank of California or any affiliate thereof; Union Bank of
California, N.A. or its affiliate may be compensated Jor providing such
investment advice and providing other services to such Fund, in addition
to any Trustee's fees received pursuant to this Trust Agreement;
(b) To cause all or any part of the Agency Trust to be held in the name of the
Trustee (which in such instance need not disclose its fiduciary capacity)
or, as permitted by law, in the name of any nominee, and to acquire for the
Agency Trust any investment in bearer form, but the books and records of
the Agency Trust shall at all times show that all such investments are a
part of the Agency Trust and the Trustee shall hold evidences of title to all
such investments;
(c) To serve as sole custodian with respect to the Agency Trust Assets;
(d) To employ such agents and counsel as may be reasonably necessary in
managing and protecting the Assets and to pay them reasonable
compensation; to employ any broker - dealer, including a broker - dealer
affiliated with the Trustee, and pay to such broker - dealer at the expense of
the Agency Trust, its standard commissions; to--settle, compromise or
abandon all claims and demands in favor of or against4he Agency Trust;
and to charge any premium on bonds.. purchased .at par value to the
principal of the Agency Trust without amortization from the Agency Trust,
regardless of any law relating thereto;
(e) In addition to the powers listed herein, to do all other acts necessary or
desirable for the proper administration of the Agency Trust, as though the
absolute owner thereof,
(f) To abandon, compromise, contest, arbitrate or settle claims or demands;
to prosecute, compromise and defend lawsuits, but without obligation to
do so, all at the risk and expense of the Agency Trust;
(g) To exercise and perform any and all of the other powers and duties
specified in this Trust Agreement or the Plan;
15
2567_12 PEL
(h) To permit such inspections of documents at the principal office of the
Trustee as are required by law, subpoena or demand by United States
agency;
(i) To comply with all requirements imposed by applicable provisions of law;
(j) To seek written instructions from the Plan Administrator or other fiduciary
on any matter and await their written instructions without incurring any
liability. If at any time the Plan Administrator or the fiduciary should fail to
give directions to the Trustee, the Trustee may act in the manner that in its
discretion seems advisable under the circumstances for carrying out the
purposes of this Agency Trust;
(k) As directed by the Plan Administrator or Delegatee if duly authorized, to
cause the benefits provided under the Plan to be paid directly to the
persons entitled thereto under the Plan, and in the amounts and in the
manner specified, and to charge such payments against the Agency Trust
with respect to which such benefits are payable;
(1) To compensate such executive, consultant, actuarial, accounting,
investment, appraisal, administrative, clerical, secretarial, medical,
custodial, depository and legal firms, personnel and other employees or
assistants as are engaged by the Plan Administrator in connection with
the administration of the Plan and to pay from the Agency Trust the
necessary expenses of such firms, personnel and assistants, to the extent
not paid by the Plan Administrator;
(m) To act upon proper written directions of the Plan Administrator or
Delegatee, including directions given by photostatic transmissions using
facsimile signature;
(n) To pay from the Agency Trust -the expenses reasonably incurred in the
administration of the Agency Trust as provided in the Plan;
(o) To maintain insurance for such purposes, in such amounts and with such
companies as the Plan Administrator shall elect, including insurance to
cover liability or losses occurring by reason of the acts or omissions of
fiduciaries but only if such insurance permits recourse by the insurer
against the fiduciary in the case of a breach of a fiduciary obligation by
such fiduciary.
16
2567_12 PEL
4.3 Custodial Powers
M
If an Alternate Trustee has been appointed pursuant to Section 3.9, Union Bank
of California, N.A., ( "Bank ") as Custodian, shall only have the following
responsibilities:
(a) Keep records of all transactions entered into for the Agency Trust and
furnish to Alternate Trustee statements no less frequently than quarterly
showing all principal and income transactions and Agency Trust Assets,
which shall be deemed ratified and approved by Alternate Trustee unless
Custodian is advised to the contrary within ninety (90) days of Custodian's
mailing thereof by first class mail to Alternate Trustee;
(b) Receive payments of income and principal on Agency Trust Assets, and
retain or remit in accordance with Alternate Trustee's written instructions;
(c) Hold Agency Trust Assets in Bank's name as Custodian for Alternate
Trustee or in Bank's nominee name, or, as to securities eligible to be held
by the depository trust company or other depository, in its nominee name;
(d) Purchase and sell securities, attend to the exchange of securities, deposit
or exchange securities of companies in reorganization, and tender
securities on redemption or tender offer solely upon direction of Alternate
Trustee;
(e) Sign the name of Alternate Trustee to stock and bond powers and any
other instruments required for the proper exercise of Bank's duties, and
Bank is appointed Alternate Trustee's attomey -in -fact for these purposes;
(f) Forward all proxies and accompanying materials _to Alternate Trustee to
be voted unless directed in writing to the contrary: , Disclose Alternate
Trustee's name and address in response to requests from issuers of
securities and others to facilitate' direct communication for proxy and
tender offer response;
(g) Sell all fractional shares of stock received as a result of stock dividends or
other corporate action;
(h) Notify Alternate Trustee of any inability to collect income or principal if the
securities or other property constituting Assets upon which such amount is
payable is in default, or if payment is refused after due demand. Bank
shall be under no obligation or duty to take any action to effect collection
of defaulted payments, or to file or pursue any bankruptcy or class action
claims with respect to Agency Trust.
17
2567_12 PEL
M
M
(i) Perform a telephonic verification to Alternate Trustee or Alternate
Trustee's authorized representative or such other security procedure
selected by Alternate Trustee prior to wiring funds or following facsimile
directions as Bank may require. Alternate Trustee assumes all risk of
delay of transfer if Bank is unable to reach Alternate Trustee or Alternate
Trustee's authorized representative, or in the event of delay as a result of
attempts to comply with any other security procedure selected by
Alternate Trustee.
Article V
INVESTMENTS
5.1 Investment Fiduciary
Except as herein provided, the Plan Administrator shall be the Investment
Fiduciary.
5.2 Appointment of Trustee or an Investment Manager as Investment Fiduciary
The Plan Administrator may appoint the Trustee or an investment manager as
the Investment Fiduciary, with the authority and duty to direct the investment and
management of all or any portion of the Assets of the Agency Trust.
5.3 Appointment of Investment Fiduciary
No action of the Plan Administrator pursuant to 5.2 shall be effective until a
certified copy of the revised Adoption Agreement and, if..-required, any such
resolution 'of the governing body of the Member Agency or Plan Administrator
action is delivered to the Trustee. Upon receipt -and acceptance, the Trustee or
investment manager, as the case may be, shall assume fiduciary responsibility
with respect to the investment and management of such assets of the Agency
Trust as are specified in the resolution or action. Any transfer of investment
authority to the Trustee or to an investment manager may be revoked by
delivering to the Trustee or the investment manager a written notice from either
the Member Agency governing body or the Plan Administrator, as the case may
be.
5.4 Reliance by Trustee on Investment Fiduciary
The appointment, selection and retention of an Investment Fiduciary shall be
solely the responsibility of the Member Agency acting through its governing body
or the Plan Administrator. The Trustee may rely upon the fact that the
18
2567_12 PEL
M
M
Investment Fiduciary is authorized to direct the investment and management of
the Assets of the Agency Trust until such time as the Plan Administrator shall
notify the Trustee in writing that another Investment Fiduciary has been
appointed to replace the Investment Fiduciary named, or, in the alternative, that
the Investment Fiduciary named has been removed.
5.5 When Trustee is not Investment Fiduciary
The Trustee shall not be the Investment Fiduciary and shall have no
responsibility or authority for the investment and management of assets unless
specifically designated as the Investment Fiduciary as to some or all of the
assets in the Agency Trust and accepts such designation.
(a) During such period or periods of time, if any, as the Plan Administrator or
an investment Fiduciary is authorized to direct the investment and
management of the Assets of the Agency Trust, the Trustee shall (subject
to the overriding limitations hereinafter set forth) effect and change
investment of the Assets of the Agency Trust as directed in writing by the
Plan Administrator, or investment Fiduciary, as the case may be, and shall
neither effect nor change any such investments without such direction and
shall have no right, duty or responsibility to recommend investments or
investment changes. The following provisions shall govern the Trustee
during such period or periods of time, if any, during which the Plan
Administrator or an Investment Fiduciary is authorized to direct the
investment and management of the Assets of any Agency Trust:
(b) So long as the Plan Administrator retains or reacquires full power and
responsibility to direct the Trustee with respect to the investment and
management of all or any portion of the Assets of the Agency Trust, the
Trustee shall not be liable nor responsible for losses or unfavorable results
arising from the Trustee's compliance with proper..,,directions of the Plan
Administrator which are made in accordance with . the: terms of this Trust
Agreement and which are, not contrary to,the provisions of any applicable
federal or state statute regulating such investment.
(c) In the event an Investment Fiduciary is given authority and responsibility
with respect to the investment and management of the Assets of the
Agency Trust, neither the Trustee nor the Plan Administrator shall be
liable or responsible in any way for any losses or other unfavorable results
arising from the Trustee's compliance with investment or management
directions received by the Trustee from the investment Fiduciary.
5.6 investment Directions Must be in Writing
Subject to the provisions of Section 5.18, in order to be valid all directions
concerning investments made by the Plan Administrator, or the Investment
19
2567._12 PE!_
M
Q
Fiduciary, or PARS Trustee must be signed by the authorized person or persons
acting on behalf of the Plan Administrator, Investment Fiduciary or Trustee, as
the case may be.
5.7 Trustee Reliance On Directions
(a) The Trustee shall be entitled to rely upon directions which the Trustee
receives. The Trustee shall be under no duty to question any directions of
the Investment Fiduciary or Plan Administrator nor to review any securities
or other property of the PARS Trust or Agency Trust constituting assets
thereof with respect to which an Investment Fiduciary or the Plan
Administrator has investment responsibility, nor -to make any suggestions
to the Investment Fiduciary or-Plan Administrator: in. connection therewith.
The Trustee shall, as promptly as possible, comply with any written
directions given by the Plan Administrator or an Investment Fiduciary
hereunder. The Trustee shall not be liable, in any manner nor for any
reason, for the making or retention of any investment pursuant to such
directions, nor shall the Trustee be liable for its failure to invest any or all
of the Assets of the Agency Trust in the absence of such written
directions. The Trustee shall be under no obligation to seek written
clarification in the event of ambiguity.
(b) During such period of time, if any, as the Plan Administrator, or an
Investment Fiduciary, is authorized to direct the Trustee, the Trustee shall
have no obligation to determine the existence of any conversion,
redemption, exchange, subscription or other right relating to any securities
purchased of which notice was given prior to the purchase of such
securities, and shall have no obligation to exercise any such right unless
the Trustee is informed of the existence of the right and is instructed to
exercise such right, in writing, by the Plan Administrator or the investment
Fiduciary, as the case may be, within a reasonable .time prior to the
expiration of such right.
(c) In any event, neither the Plan Administrator nor any Investment Fiduciary
referred to above shall direct the purchase, sale or retention of any Assets
of the Agency Trust if such directions are not in compliance with
applicable law.
5.8 Trustee Fees
As may be agreed upon, in writing, between the Plan Administrator and Trustee,
the Trustee will be paid reasonable compensation for services rendered or
reimbursed for expenses properly and actually incurred in the performance of
duties with respect to the Agency Trust or the PARS Trust.
20
2567_12 PEL
n
5.9 Contributions
M
The Plan Administrator shall make all of its contributions to the Trustee, and shall
also transmit all contributions of Plan participants, as may be required or allowed
by the Plan, to the Trustee. Such contributions shall be in cash unless the
Trustee agrees to accept a contribution that is not in cash. All contributions shall
be paid to the Trustee for investment and reinvestment pursuant to the terms of
this Trust Agreement. The Trustee shall not have any duty to determine or
inquire whether any contributions to the Agency Trust made to the Trustee by
any Plan Administrator are in compliance with the Plan; nor shall the Trustee
have any duty or authority to compute any amount to be paid to the Trustee by
any Plan Administrator; nor shall the Trustee be responsible for the collection or
adequacy of the contributions to meet and discharge liabilities under the Plan.
The contributions received by the Trustee from each Member Agency shall be
held and administered pursuant to the terms hereof without distinction between
income and principal.
5.10 Money Market Fund
Pending any investment directions, such cash in the Agency Trust in an amount
as is reasonable in the discretion of the Trustee, may be deposited in a money
market fund selected by the Trustee or the Member Agency.
5.11 Purchase of Contracts
The Trustee shall have the authority to purchase individual or group insurance,
annuity, preliminary term, group pension, and variable annuity contracts in
accordance with the directions of the Plan Administrator or other insurance
contracts at the direction of the Plan Administrator or Investment Fiduciary if such
contracts are acceptable to the Trustee. The Trustee shall act as custodian of
such contracts if an Alternate Trustee is appointed as to such> contracts.
5.12 Records
(a) The Trustee shall maintain accurate records and detailed accounts of all
investments, receipts, disbursements and other transactions hereunder at
the PARS Trust level. Such records shall be available at all reasonable
times for inspection by the Trust Administrator. The Trustee shall, at the
direction of the Trust Administrator, submit such valuations, reports or
other information as the Trust Administrator may reasonably require.
(b) Valuation. The assets of the Agency Trust shall be valued at their fair
market value on the date of valuation, as determined by the Trustee based
upon such sources of information as it may deem reliable; provided,
however, that the Plan Administrator shall instruct the Trustee as to
valuation of assets which are not readily determinable on an established
21
2567_12 PEL
114i *M10
market. The Trustee may rely conclusively on such valuations provided
by the Plan Administrator and shall be indemnified and held harmless by
the Plan Administrator with respect to such reliance. If the Plan
Administrator fails to provide such values, the Trustee may take whatever
action it deems reasonable, including employment of attorneys, appraisers
or other professionals, the expense of which will be an expense of
administration of the Agency Trust. Transactions in the account involving
such hard to value assets may be postponed until appropriate valuations
have been received and Trustee shall have no liability therefore.
5.13 Statements
(a) Periodically as specified, and within sixty days after June 30, or the end of
the PARS Trust's fiscal year if different, Trustee shall render to the Trust
Administrator as directed, a written account showing in reasonable
summary the investments, receipts, disbursements and other transactions
engaged in by the Trustee during the preceding fiscal year or period with
respect to the PARS Trust. Such account shall set forth the assets and
liabilities of the PARS Trust valued as of the end of the accounting period.
(b) The Trust Administrator may approve such statements either by written
notice or by failure to express objections to such statements by written
notice delivered to the Trustee within 90 days from the date the statement
is delivered to the Trust Administrator. Upon approval, the Trustee shall
be released and discharged as to all matters and items set forth in such
statement as if such account had been settled and allowed by a decree
from a court of competent jurisdiction.
5.14 Wire Transfers
The Trustee shall follow the Plan Administrator's, Delegatee's, or Trust
Administrator's wire transfer instructions in compliance with the written security
procedures provided by the party providing the wire transfers. The Trustee shall
perform a telephonic verification to the Plan Administrator, Trust Administrator, or
Delegatee, of such other security procedure, as selected by the party providing
wire transfer directions, prior to wiring funds or following facsimile directions as
Trustee may require. The Plan Administrator assumes the risk of delay of
transfer if Trustee is unable to reach the Plan Administrator, or in the event of
delay as a result of attempts to comply with any other security procedure
selected by the directing party.
5.15 Exclusive Benefit
The Assets of the Agency Trust shall be held in trust for the exclusive purpose of
providing benefits to the participants and their beneficiaries of the Member
Agency Plan, and defraying reasonable expenses of the Plan, and shall not be
22
2567_12 PEL
n
n
used for or diverted to any other purpose. No party shall have authority to use or
divert such Plan's Assets for the payment of benefits or expenses of any other
Member Agency's Plan.
5.16 Delegation of Duties
The Plan Administrator, Delegatee, or Trust Administrator, may at any time retain
the Trustee as its agent to perform any act, keep any records or accounts and
make any computations that are required of the Plan Administrator, Delegatee or
Trust Administrator by this Trust Agreement or by the Plan. The Trustee may be
compensated for such retention and such retention shall not be deemed to be
contrary to this Trust Agreement.
5.17 Distributions
All benefits payable pursuant to the Plan shall be paid out of the Assets of the
Agency Trust by the Trustee pursuant to the direction of the Plan Administrator or
Delegatee. The Trustee shall, from time to time, upon the written direction of the
Plan Administrator or Delegatee, make distributions from the Assets of the
Agency Trust to or for the benefit of such persons, in such manner in such
form(s), in such amounts and for such purposes as may be specified in such
directions. The Trustee at the direction of the Plan Administrator or Delegatee
may make any distribution required to be made by it hereunder by delivering to
the Plan Administrator or Delegatee:
Its check payable to the person to whom such distribution is to be made,
for delivery to such person; or
Its check payable to an insurer for the benefit of such person, for delivery
by such insurer; or insurance contracts held on the life of the Participant to
whom or with respect to whom the: distribution :is ;being made, for
redelivery to the person to whom -such, distribution is to be made; provided
that any contract distributed-s hall. be�endorsed!as.non- transferable.
In directing the Trustee to make distributions, the Plan Administrator or
Delegatee shall follow the provisions of the Plan and shall not direct that any
distribution be made either during the existence or upon discontinuance of the
Plan, which would cause any part of the Assets of the Agency Trust to be used
for or diverted to purposes other than as provided in the Plan and this PARS
Trust. In no event shall the Trustee have any responsibility respecting the
application of such distributions, nor for determining or inquiring into whether
such distributions are in accordance with the Plan.
23
256712 PEL
5.18 Participant Directed Accounts
The Member Agency may, by written resolution and execution of the Adoption
Agreement, terminate the Plan Administrator's right to direct the investment and
management of all or any portion of the Assets of the Agency Trust and allow
Participants to direct their own account balances ( "Participant Directed
Accounts "). Notwithstanding any other provision of this Trust Agreement, for
Participant Directed Accounts, the Trustee shall be entitled to act upon proper
directions of the Plan Administrator, Trust Administrator, and Participants
including directions in writing, or oral instructions which Trustee in its discretion
may follow without receipt of written instructions, instruction given by photostatic
teletransmission using facsimile signature, or those instructions which are
digitally recorded on the UBOC Voice Response Unit ("VRU ") or internet website.
Trustee is hereby authorized to record conversations and transmissions made in
connection with the Agency Trust. Trustee's-recording or lack of recording of any
such oral, internet or digital instructions, and /or receipt or lack of receipt of
facsimile transmissions, as reflected in the Trustee's records maintained in the
ordinary course of business shall constitute conclusive proof of Trustee's receipt
or non - receipt of such instructions.
The Trustee and /or Trust Administrator shall not be liable in any manner for
investment or other losses or other liability attributable to Participant's directions,
or lack thereof, or exercise of control over the investments of their Participant
Directed Accounts. Likewise, the Trustee and /or Trust Administrator shall have
no duty or responsibility to review, monitor or make recommendations regarding
investments made at the direction of the Participants or the Plan Administrator.
In order for Member Agency to be relieved of investment fiduciary liability, the
requirements of California law including Section 53213.5 of the California
Government Code must be met. The Plan Administrator shall establish uniform
and nondiscriminatory rules for the operation of the Participant Directed
Accounts, including whether the Participant shall direct.the Trustee or direct the
Plan Administrator who directs the. Trust. Administrator- who forwards such
directions to the Trustee. Member Agency shall °designate. whether Participant
Directed Accounts are to be established pursuant to the provisions of section
5.18(a) or 5.18(b), below:
(a) Participant Direction in Individually Directed Accounts. If the Member
Agency has so elected, Participants may have investment direction power
over their own segregated account balances ( "individually Directed
Account" or "IDA "). Investments may be directed by Participants into
assets administratively acceptable to Trustee, as limited by guidelines
developed by the Plan Administrator (the "Permissible Investment
Guidelines "). Plan Administrator shall notify Participants of the Plan's
Permissible Investment Guidelines as in effect from time to time. in the
absence of directions from a Participant, the Plan Administrator may direct
the investment of the IDA. The Trustee may refuse to comply with the
24
256712 PE!
A
directions of the Participant to invest in assets other than those listed in its
Permissible Investments Guidelines or with directions which the Trustee
deems to be improper or contrary to the provisions of the Plan and Agency
Trust or the Internal Revenue Code and shall have no liability for such
refusal.
(b) Participant Directed Account within Plan Administrator Selected
Investment Options ( "SelectBENEFIT Accounts": If the Member Agency
so elects, the Participant's Account Balance shall be segregated into a
Participant Directed Account ( "SelectBENEFIT Account "), over which the
Participant may direct investment into one or more investment alternatives
( "Investment Options "). The Plan Administrator or its appointed
investment Fiduciary shall have full responsibility for designating the
investment Options under the Plan and for selecting the underlying
investment vehicle(s) for each designated investment Option into which a
Participant may direct investment of his or her SelectBENEFIT Account.
To the extent allowed by law, neither the Member Agency, the Plan
Administrator, the Trust Administrator nor the Trustee shall have any
responsibility for monitoring the directions of the Participant nor shall the
Member Agency, the Plan Administrator, the Trust Administrator or the
Trustee be liable in any manner for investment or other losses or other
liability for following directions of a Participant.
(c) If SelectBENEFIT Accounts are established, notwithstanding any other
provision of this Trust Agreement, the Member Agency may appoint the
Trustee to provide ministerial services as recordkeeper for such accounts
by so indicating in the Member Agency's Adoption Agreement, provided
that an acceptable service agreement has been executed by and between
the Member Agency, the Plan Administrator, the - Trustee and the Trust
Administrator.
Article VI
FIDUCIARY RESPONSIBILITIES
6.1 More Than One Fiduciary Capacity
Any one or more of the fiduciaries with respect to the PARS Trust Agreement or
the Agency Trust may, to the extent required thereby or as directed by the Plan
Administrator pursuant to this PARS Trust Agreement and the Plan, serve in
more than one fiduciary capacity with respect to the PARS Trust Agreement, the
Agency Trust and the Plan.
25
2567_12 PEL
X00
6.2 Fiduciary Discharge of Duties
Except as otherwise provided in the Code and applicable law each fiduciary shall
discharge such fiduciary's duties with respect to the PARS Trust Agreement and
the Plan:
Solely in the interest of the Participants and for the exclusive purpose of
providing benefits to Participants, and defraying reasonable expenses of
administering the Plan. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of like
character and with like aims. By diversifying the investments of the Plan and the
Agency Trust so as to minimize the risk of loss and to maximize.the rate of
return, unless under the circumstances it is clearly prudent notto.do so.
6.3 Limitations on Fiduciary Responsibility
To the extent permitted by applicable law:
No fiduciary shall be liable with respect to a breach of fiduciary duty by any other
fiduciary if such breach was committed before such party became a fiduciary or
after such party ceased to be a fiduciary.
No fiduciary shall be liable for a breach by another fiduciary unless the non -
breaching fiduciary knowingly participates in such a breach, knowingly
undertakes to conceal such breach, or has actual knowledge of such breach and
fails to take reasonable steps to remedy such breach.
No fiduciary shall be liable for carrying out a proper direction from another
fiduciary, including refraining from taking an action in the absence of a proper
direction from the other fiduciary, possessing the authorlty.�and responsibility to
make such a direction, which direction -the fiduciary ,in good4aith believes to be
authorized and appropriate.
6.4 Indemnification of Trustee by Member Agency
The Trustee shall not be liable for, and Member Agency shall indemnify, defend
(as set out in 6.8 of this Trust Agreement), and hold the Trustee (including its
officers, agents, employees and attorneys) and other Member Agencies and
Alternate Trustees, harmless from and against any claims, demands, loss, costs,
expense or liability imposed on the indemnified party, including reasonable
attorneys' fees and costs incurred by the indemnified party, arising as a result of
Member Agency's active or passive negligent act or omission or willful
misconduct in the execution or performance of its duties under this Trust
Agreement.
26
2567_12 PEL
'0
6.5 Indemnification of Member Agency by Trustee
The Member Agency shall not be liable for, and Trustee shall indemnify, defend
(as set out in 6.8 of this Trust Agreement), and hold the Member Agency
(including its officers, agents, employees and attorneys) and other Member
Agencies and Alternate Trustees, harmless from and against any claims,
demands, loss, costs, expense or liability imposed on the indemnified party,
including reasonable attorneys' fees and costs incurred by the indemnified party,
arising as a result of Trustee's active or passive negligent act or omission or
willful misconduct in the execution or performance of its duties under this Trust
Agreement.
6.6 Indemnification of Trustee by Trust Administrator
The Trustee shall not be liable for, and Trust Administrator shall indemnify and
hold the Trustee (including its officers, agents, employees and attorneys)
harmless from and against any claims, demands, loss, costs, expense or liability
imposed on the indemnified party, including reasonable attorneys' fees and costs
incurred by the indemnified party, arising as a result of Trust Administrator's
active or passive negligent act or omission or willful misconduct in the execution
or performance of its duties under this Trust Agreement.
6.7 Indemnification of Trust Administrator by Trustee
The Trust Administrator shall not be liable for, and Trustee shall indemnify and
hold the Trust Administrator (including its officers, agents, employees and
attorneys) harmless from and against any claims, demands, loss, costs, expense
or liability imposed on the indemnified party, including reasonable attorneys' fees
and costs incurred by the indemnified party, arising as a result of Trustee's active
or passive negligent act or omission or willful misconduct in_ the execution or
performance of its duties under this Trust Agreement.
6.8 Indemnification Procedures
Promptly after receipt by an indemnified party of notice or receipt of a claim or
the commencement of any action for which indemnification may be sought, the
indemnified party will notify the indemnifying party in writing of the receipt or
commencement thereof. When the indemnifying party has agreed to provide a
defense as set out above that party shall assume the defense of such action
(including the employment of counsel, who shall be counsel satisfactory to such
indemnitee) and the payment of expenses, insofar as such action shall relate to
any alleged liability in respect of which indemnity may be sought against the
indemnifying party. Any indemnified party shall have the right to employ
separate counsel in any such action and to participate in the defense thereof, but
the fees and expenses of such counsel shall not be at the expense of the
27
2567_12 PEL
LM
indemnifying party unless (i) the employment of such counsel has been
specifically authorized by the indemnifying party or (ii) the named parties to any
such action (including any impleaded parties) include both the indemnifying party
and the indemnified party and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interest between them.
The indemnifying party shall not be liable to indemnify any person for any
settlement of any such action effected without the indemnifying party's consent.
6.9 No Joint and Several Liability
This document is not intended to and does not create any joint powers
agreement or any joint and several liability.. No Member Agency shall be
responsible for any contributions, costs or distributions �of any other Member
Agency.
Article VII
AMENDMENT, TERMINATION AND MERGER
7.1 No Obligation to Continue Plan and Trust
Continuance of the Agency Trust, participation in the PARS Trust Program and
continuation of the Plan are not assumed as a contractual obligation of the
Member Agency.
7.2 Amendments
(a) The PARS Trust Agreement may only be amended or terminated as
provided herein. A two- thirds majority or greater of.the.Member Agencies
shall have the right to amend this Trust Agreement from time to time, and
to similarly amend or cancel any amendments.. -A- copy of all amendments
shall be delivered to the Trustee, the Trust Administrator and Plan
Administrators promptly as each is made.
(b) Such amendments shall be set forth in an instrument in writing executed
by the amending party, the Trust Administrator and the Trustee. Any
amendment may be current, retroactive or prospective, provided,
however, that no amendment shall:
(1) Cause the Assets of any Agency Trust to be used for or diverted to
purposes other than for the exclusive benefit of Participants who
have an interest in such Agency Trust or for the purpose of
defraying the reasonable expenses of administering such Agency
Trust.
28
2567_12 PEL
n
(2) Have any retroactive effect so as to reduce the benefits of any
Participant having an interest in the Agency Trust as of the date the
amendment is adopted, except that such changes may be made as
may be required to permit this PARS Trust Agreement to meet the
requirements of applicable law.
(3) Change or modify the duties, powers or liabilities of the Trustee or
the Trust Administrator hereunder without its consent.
(4) Permit the Assets of any Agency Trust to be used for the benefit of
any other Plan of the Member Agency unless the Member Agency
agrees to such use.
7.3 Termination of Plan
A termination of the Plan for which the Agency Trust was established shall not, in
itself, effect a termination of an Agency Trust. Upon any termination of the Plan,
the Assets of the Agency Trust shall be distributed by the Trustee as and when
directed by the Plan Administrator. From and after the date of such termination
of the Plan and until final distribution of the Assets the Trustee shall continue to
have all the powers provided herein as are necessary or expedient for the orderly
liquidation and distribution of such assets and the Agency Trust shall continue
until the interests of all Participants have been completely distributed to or for the
benefit of the Participants in accordance with the Plan.
7.4 Reversion
In the event a Member Agency's Plan is terminated, the vested interest of any
Participant shall not be diminished or adversely affected. Except as may be
provided in this Trust Agreement or the Plan, such termination shall not vest in
the Member Agency any corpus or income under ,the Agency Trust, nor permit
the Plan to discriminate as to coverage, or as to -allocation : of� contributions or
earnings, in favor of employees who are - ,officers, 5;shareholders, or highly
compensated, nor cause the Agency Trust to lose its exemption pursuant to
501(a) of the Code. No modification, amendment or termination of the Plan shall
be construed to be a termination of the Agency Trust so as to require the Trustee
to make a distribution of any of the Assets of the Agency Trust to any Participant.
In order to make such distribution the Trustee must receive written instructions
from the Plan Administrator or Delegatee in a form acceptable to the Trustee.
If any Member Agency adopts a Plan whose assets are maintained in an Agency
Trust and makes application to the Internal Revenue Service, within one year
from the date of adoption of such Plan, for a determination that such Plan is a
qualified plan under Section 401 (a) of the Code, and if such Plan is determined
by the Internal Revenue Service not to be a qualified Plan, then all contributions
P
?567 1 Z PEL
and investment income attributable to such Plan shall be returned to the Member
Agency upon application to the Trustee.
7.5 Fund Recovery Based on Mistake of Fact
Except as hereinafter provided, the Assets of the Agency Trust shall never inure
to the benefit of the Member Agency. The Assets shall be held for the exclusive
purposes of providing benefits to Participants having an interest in the Plan and
defraying reasonable expenses of administering the Agency Trust. The sole
exception to the foregoing is as follows:
Mistake of Fact. In the case of a contribution which is made by the Plan
Administrator because of a mistake of4act, that portion of.the contribution relating
to the mistake of fact (exclusive -of any earnings or losses..attributable thereto)
may be returned to the Plan Administrator, - provided : such :.return occurs within
one (1) year after discovery by the Plan Administrator of the mistake. If any
repayment is payable to the Plan Administrator, then, as a condition to such
repayment, and only if requested by Trustee, the Plan Administrator shall
execute, acknowledge and deliver to the Trustee its written undertaking, in a form
satisfactory to the Trustee, to indemnify, defend and hold the Trustee harmless
from all claims, actions, demands or liabilities arising in connection with such
repayment.
7.6 Transfers from Other Qualified Plans
Notwithstanding any other provision hereof, there may be transferred to the
Trustee, upon direction of the Plan Administrator, all or any of the assets held
(whether by a trustee, custodian or otherwise) on behalf of any other plan which
satisfies the applicable requirements of Section 401 of the Code, and which is
maintained for the benefit of any persons who are or will become Participants in
the Plan.
7.7 Termination
The PARS Trust Agreement may be terminated only by a unanimous agreement
of all Member Agencies. Such action must be in writing and delivered to the
Trustee and Trust Administrator.
Article ViII
MISCELLANEOUS PROVISIONS
8.1 Nonalienation
To the maximum extent permitted by law, a Participant's interest in the Agency
Trust shall not in any way be liable to attachment, garnishment, assignment or
30
2567_12 PEL
other process, or be seized, taken, appropriated or applied by any legal or
equitable process, to pay any debt or liability of the Participant or any other party.
Agency Trust Assets shall not be subject to the claims of the Member Agency or
the claims of its creditors.
8.2 Saving Clause
In the event any provision of this PARS Trust Agreement and each Agency Trust
is held illegal or invalid for any reason, said illegality or invalidity shall not affect
the remaining parts of the PARS Trust and /or Agency Trust, but this instrument
shall be construed and enforced as if said provision had never been included.
8.3 Applicable Law
This PARS Trust Agreement and each Agency Trust . shall be construed,
administered and governed under the Code and the applicable provisions of
California law. To the extent any of the provisions of this Trust Agreement or the
Plan are inconsistent with the Code or applicable California law, the provisions of
the Code or California law shall control. In the event, however, that any provision
is susceptible to more than one interpretation, such interpretation shall be given
thereto as is consistent with the Trust Agreement and the Plan being a qualified
governmental retirement trust and plan within the meaning of the Code.
8.4 Joinder of Parties
in any action or other judicial proceedings affecting this Trust Agreement, it shall
be necessary to join as parties only the Trustee, the Plan Administrator or
Delegatee. No participant or other persons having an interest in any Agency
Trust shall be entitled to any notice or service of process unless otherwise
required by law. Any judgment entered in such a proceeding or action shall be
binding on all persons claiming under this Trust Agreement, - provided, : however,
'that, nothingtin this Trust Agreement shall be -construed -as; to deprive aRarticipant
of such participant's right to seek adjudication of -such %participant's rights under
applicable law.
8.5 Employment of Counsel
The Trustee may consult with legal counsel (who may be counsel for the Trustee
or Member Agency Plan Administrator) and charge the Agency Trust.
8.6 Gender and Number
Words used in the masculine,
to refer to the other wheneve r
singular or plural number shall
the context so requires.
2567_12 PEL
feminine or neuter gender shall each be deemed
the context so requires; and words used in the
each be deemed to refer to the other whenever
31
8.7 Headings
Headings used in this
only and any conflict
favor of the text.
8.8 Counterparts
M
Trust Agreement are inserted for convenience of reference
between such headings and the text shall be resolved in
The Adoption Agreement of this Trust Agreement may be executed in an original
and any number of counterparts by the Plan Administrator (executing an
Adoption Agreement), the Trust Administrator and the Trustee, each of which
shall be deemed to be an original of the one-and the same instrument.
Article IX
ACKNOWLEDGMENT AND ACCEPTANCE
The provisions of the PARS Trust Agreement as contained herein are hereby amended
and restated as of July 1, 1999 (the "Amended Effective Date ")
IN WITNESS WHEREOF, the Plan Administrator (by executing the Adoption
Agreement) the Trust Administrator and Trustee have executed this Trust Agreement by
their duly authorized agents on this19th day of January, 2000.
ACKNOWLEDGED AND ACCEPTED this 19th day of January, 2000.
THE TRUSTEE
UNION BANK OF CALIFORNIA, N.A.
By: l
Title: Senior Vice President
32
2567_12 PEL
THE TRUST ADMINISTRATOR
PHASE II SYSTEMS
Title: President
MEMORANDUM
CITY LIBRARRY
May 15, 2001
TO: ARCADIA CITY
,, COUNCIL
FROM: KENT ROSS,,�CITY LIBRARIAN
SUBJECT: REPORT AND RECOMMENDATION TO APPROVE RECEIPT OF
ADDITIONAL $15,000 FROM THE ARCADIA PUBLIC LIBRARY
FOUNDATION FOR THE ENHANCEMENT AND REFURBISIRv ENT
THE SOUTH PATIO OF THE LIBRARY
SUMMARY: The Arcadia Public Library Foundation has offered to provide funds (up to
$20,000) to the City to enhance and refurbish the south patio of the City's Library facility
(See attached report to Council dated September 5, 2000). Since that time estimates for
the project have indicated that the cost may exceed the amount provided in the original
donation. Therefore the Library Foundation is offering an additional $15,000 to complete
the project.
DISCUSSION: Recently, the Arcadia Public Library Foundation offered to provide
funds for an enhancement and refurbishment of the patio on the south side of the Library.
Mr. Eriksson, a landscape architect, offered his services free of charge to supply a concept
plan. This plan included the planting of two pink trumpet trees, installation of a small
fountain, improved irrigation system and replacement of the concrete surface. The cost of
implementing this was originally estimated at $20,000. Since that time Mr.Eriksson has
received estimates in excess of $30,000. Therefore, the Arcadia Public Library Foundation
is providing an additional $15,000 to meet the expenses of the entire project.
FISCAL IMPACT: Since the funding is provided by the Arcadia Public Library
Foundation, no City funds are required.
RECOMMENDATION:
Recommend approval of receipt of additional $15,000 from the Arcadia Public Library
Foundation for the enhancement and refurbishment of the south patio of the Library in
memory of Jesse Vanlandingham.
Approved by: 4"'"
William R. Kelly, City Manager
LASER !"t,,A,S`
r9 p p r-o a c 0-v. 9,.
.L • ��
RPOItow• STAFF REPORT
DEVELOPMENT SERVICES DEPARTMENT
May 15, 2001
TO: Mayor and City Council
FROM: 'Don Penman, Assistant City Manager/Development Services
Director .
Donna L. Butler, Community Development Administrator
•
SUBJECT: Time Extension for T.A. 2000-001 — Proposal to continue Section 1
of Ordinance, 2119 amending Section 9273.1.10.1 of the Arcadia
Municipal Code to allow horseracing and other sporting and special
events:of a national or international significance to be telecast via
satellite feed seven (7) days a week until no later.than 1:30 a.m.,
and introduction of Ordinance 2142 extending provisions for one
year.
SUMMARY -
On June 6, 2000, the City Council adopted Ordinance 2119 (T.A. 00-001), a text
amendment amending Section 9273.1.10.1 and adding regulations pursuant,to
Section: 9273.2;10 relating to performance standards for certain nighttime
activities: in the S-1 zoning regulations. Section 1 of this ordinance amends
Section-9273.1.10.1 to allow horseracing and other sporting and special events
of a national or international significance to be telecast via satellite feed seven (7)
. days a week until no later than 1:30 a.m. Additionally the text amendment
• permitted certain outdoor events in the"apron" area until 10:00 p.m. Section 4 of
the Ordinance notes that this section remains in effect for a period of one (1) year
following the effective date of the ordinance (July 6, 2001) at which time Section
1 terminates unless extended by ordinance of the City following a noticed public
hearing. .
Santa. Anita Park, the applicant for this text amendment, .is requesting an
extension for Section 9273.1.10.1 allowing the satellite feed seven (7) days a
week until no later than 1:30 a.m. and certain outdoor events in the open area
until 10:00 p.m. . '
The Development Services.Department is recommending approval of the request
by Santa Anita Park.
T.A. 00-001
May 15, 2001
LASER f, ;AGEJPage
A fib y-a
•
BACKGROUND
In December 1999 the Los Angeles Turf Club (LATC) filed Text Amendment
2000-001 requesting the following changes and additions to the S-1 (Special
Use) zoning regulations:
1. Amendment of Section 9273.1.10.1 to allow horseracing and other events to
be telecast via satellite feed seven (7) days a week until no later than 1:30
a.m.
2. Addition of a new section to allow for year-around usage of the restaurant
located in the grandstand for non-horseracing activities and to use the big
• screen monitor in the infield for code permitted uses at the track.
At the time of the text amendment, the S-1 zone.permitted horse racing via
satellite feed on Friday and Saturday nights only until no later than 1:30 a.m.
The LATC's request proposed to amend the code to allow horseracing and other
events via satellite feed seven (7) days a week until no later than 1:30 a.m.
On January 25, 2000, the Planning Commission at a public hearing considered
the text amendment and recommended approval of the usage of the restaurant
and the big screen monitor, but further recommended that the extension of the
days and hours for horse racing and other events via satellite feed be allowed
only with an approved conditional use permit.
On March 7, 2000, the City Council held its first public hearing on this text
amendment. As a result of concerns expressed by residents within the area, the
City Council considered the requests separately for (1) year-around usage of the
restaurant and (2) allowing horseracing and other events to be telecast via
satellite feed.
• On April 4'the City Council adopted Ordinance 2118 permitting the year-around
usage of the restaurant.
On June 6, 2000,after further consideration, the City Council adopted Ordinance
2119 amending Section 9273.1.10.1 which amended the hours and allowed
horse racing with or without pari-mutuel wagering, sporting events and special
events of a national or international significance seven (7) days a week, except
between the hours of 1:30 a.m and 8:00 'a.m., provided that the events are
displayed by telecast, telephone, satellite and/or cable feed or similar
transmission and are not events conducted live at the race track. In addition the
City Council added new sections (9273.1.18 and 9273.2.10) to the S-1 zone that
established performance standards for certain nighttime activities, specifically
activities that could take place outside in the racetrack "apron" area. No night-
time activities were allowed under the ordinance in the "infield" area.
T.A. 00-001
May 15, 2001
Page 2
The Council expressed some concern regarding the appropriateness of the
extended hours and potential increased activity that might result with the text
amendment and, therefore, included. a one-year review period to allow the City
an opportunity to assess the impact on the adjoining neighbors in regard to the
expanded activities.
As a result, Section 4 was included in Ordinance No. 2119 terminating Section
9273.1.10.1 of the Arcadia Municipal;,Code relating to the hours of operation. (as
noted above) after one (1) year following the effective date of the ordinance
unless extended by Ordinance of the City of Arcadia following a noticed public
hearing.
Ordinance No. 2119 became effective July 6, 2000. Section 9273.1.10.1. will
expire on July 6, 2001 unless extended by the City Council.
ANALYSIS
Satellite wagering is currently taking place at the racetrack seven (7) nights a
week in accordance with Section 9273.1.10.1 and the performance standards as
set forth in Section 9273.2.10. However, as of this date no special outdoor
events have been conducted. Therefore, at this time, the City has no means to
measure impacts related to the outdoor activities.
As noted, the LATC has requested an extension of Section 9273.1.10.1 relating
to the hours of operation. The following are alternatives that the City Council
may wish to consider:
1. Adoption of a new ordinance extending Section 1 of Ordinance 2119 for a
period of one year to allow the City time to assess any potential.impacts and
noting further that this ordinance will terminate unless extended by
ordinance of the City Council following a noticed public hearing (similar to the
current condition). This action is similar to the current restriction set forth in
Ordinance 2119; or
2. Adoption of a new ordinance extending Section 1 of Ordinance 2119 for a
period of one year to allow the City time to assess any potential impacts.
Within one year from the effective date of a new ordinance, the City Council
shall have an opportunity to review the extended hours and operation for
compliance with the performance standards and address any problems at that
time. This ordinance would not terminate this section, but would allow the
City Council to review any activities that have taken place within the year and
impose additional performance standards if necessary.
3. Adoption of a new different ordinance revising the hours as set forth in
Section 9273.1.10.1 or the performance standards set forth in Section
9273.2.10; or
T.A. 00-001
May 15, 2001
Page 3
4. Take no action. Section•9273.1.10.1 would revert to the previously approved
hours that allow horse racing via satellite feed on Friday and Saturday nights
• only until no later than 1:30 a.m.
The Planning Commission at their meeting of May 8, 2001 voted 5-0 to extend
the current regulations pertaining to allowing horse racing with or without peri-
mutual wagering, sporting events and special events of a national or international
significance seven(7) days per week, and to permit certain nighttime activities in
the"open" area, for a one year period,with a termination or sunset clause similar
to the current ordinance.
CEQA '
•
• A Negative Declaration was prepared for Text Amendment TA. 00-001. There
has been no evidence to change any of the findings set forth in the initial study
and, therefore, no further CEQA analysis is required.
RECOMMENDATION
The Development Services Department recommends ' that the Section
9273.1.10.1 be extended and operation proceed.in 'compliance with the S-1
Performance Standards and that Ordinance 2142 be introduced for first reading.
Attachments: Letter from Brant Latta, Santa Anita Park
Ordinance 2119
Proposed Ordinance 2142
Approved by:
Ti ram'R. Kelly, City Manager
T.A. 00-001
May 15, 2001
Page 4
. �,
MIlL 110 IDJ1
_41graggpft,
Re,
•
April 18, 200
1 ��
•
•
Mr. Don Penman
Assistant City Manager/
Development Services Director •
240 West Huntington Drive
Post Office Box 60021
Arcadia, California 91066-6021
• Dear Don:
Los Angeles Turf Club, Incorporated wishes to request an extension for
Section 1 of Text Amendment 00-001 of Ordinance 2119, which allows horse
racing and other events to be telecast at Santa Anita Park via satellite feed seven
days a week until no later than 1:30 a.m. We understand that Section 1 will
terminate unless extended by ordinance of the City following a noticed public
hearing. . .
Enclosed is a check for the fee of$1;500.00, per Donna Butler's letter of
April 16. We will also deliver two sets of labels for all property owners within a.
1,000-foot radius to Donna by the end of next week.
Please let us know at what time the hearing will be held before the •
Planning Commission on May 8, or if the date is changed, what the new date and
time will be. Thank you.
Sincerely,
•
• Brant Latta
• • -General Manager
•
• BL:mr
Enclosure .
•
•
41//9/0/;. ' Los Angeles Turf Club, Incorporated
285 W.Huntington Drive, P.O.Box 60014,Arcadia, CA 91066-6014 (.626) 574-7223 Fax(626)446-9565
•
E� •
Aiqh.';-:"A
'°�H 'd� STAFF REPORT
DEVELOPMENT SERVICES DEPARTMENT
May 15, 2001 .
TO: Mayor and City Council
Arcadia Redevelopment Agency
FROM: &Don Penman, Deputy Executive Director & Assistant City Manager/
Development Services Director
r 418: Pete Kinnahan, Economic Development Administrator
' SUBJECT: REPORT REGARDING THE PROPOSED SOUTH ARCADIA
REDEVELOPMENT AMENDMENT AREA AND RECOMMENDATION
- TO ADOPT:
1. AGENCY RESOLUTION NO. ARA 193; A RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA RECEIVING THE
REPORT TO THE CITY COUNCIL FOR AMENDMENT NO. 5 TO THE
REDEVELOPMENT PLAN FOR THE CENTRAL REDEVELOPMENT PROJECT
("REPORT"), APPROVING THE REPORT, AND TRANSMITTING THE REPORT
AND THE REDEVELOPMENT PLAN FOR THE AMENDMENT NO. 5 TO THE
CENTRAL REDEVELOPMENT PROJECT ("PLAN") TO THE CITY COUNCIL.
2. AGENCY RESOLUTION NO. ARA 194; A RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA CONSENTING TO
AND CALLING FOR A JOINT PUBLIC HEARING ON AMENDMENT NO. 5 TO
THE REDEVELOPMENT PLAN FOR THE CENTRAL REDEVELOPMENT
PROJECT.
3. CITY COUNCIL RESOLUTION NO. 6221; A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARCADIA RECEIVING THE REPORT TO THE CITY
COUNCIL FOR AMENDMENT NO. 5 TO THE REDEVELOPMENT PLAN FOR
THE CENTRAL REDEVELOPMENT PROJECT ("REPORT") AND THE
REDEVELOPMENT PLAN FOR THE AMENDMENT NO. 5 TO THE CENTRAL
REDEVELOPMENT PROJECT ("PLAN").
4. CITY COUNCIL RESOLUTION NO. 6222; A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARCADIA CONSENTING TO AND CALLING FOR A
•
JOINT PUBLIC HEARING ON AMENDMENT NO. 5 TO THE REDEVELOPMENT
PLAN FOR THE CENTRAL REDEVELOPMENT PROJECT.
A-� xQ� a/f -
LASER IMAGED
Mayor and City Council
Arcadia Redevelopment Agency
May 15, 2001
Page 2
SUMMARY
In Agency Resolution No. ARA-193 (Attachment 1), the Agency is being 'requested to
review and approve the "Report to the City Council" (see Exhibit A) and to transmit it to
the City Council as required by Section 33352 of the Health and Safety Code. This
"Report" discusses in some detail the purpose of the Amendment area, the existing
physical and economic conditions, projects and programs to improve or alleviate
blighting conditions, financing, an analysis of the Preliminary Plan, the Environmental
Impact Report, the Report of the County Fiscal Officer, and reports on various official
meetings regarding the proposed Amendment No. 5. Also in Agency Resolution ARA-
193 the Agency is transmitting the amended Redevelopment Plan (Exhibit B) to the City
Council.
In Agency Resolution No. ARA-194 (Attachment 2), the Agency is also being requested
to call for a joint Agency/City Council Public Hearing a 7:00 p.m. on July 3, 2001.
In City Council Resolution No. 6221 (Attachment 3), the City Council is being asked to
receive the "Report" and the proposed amended Redevelopment Plan. By Resolution
No. 6222 the City Council is also being requested to schedule a joint Agency/City
Council Public Hearing at 7:00 p.m. on July 3, 2001 (Attachment 4).
Staff. recommends approval of Agency Resolutions 193 and 194 and City Council
Resolutions 6221 and 6222.
DISCUSSION
Pursuant to the California Redevelopment Law, (Health & Safety Code Section 33352)
and as part of the amendment adoption process, a comprehensive "Report" aggregating
all of the major analyses, reports, plans, and meeting summaries has been prepared in
one document for Agency approval at the May 15 meeting and ultimately for City
Council approval at the public hearing on July 3.
This Report discusses the following topics: Reasons for selection of the amendment
area; existing physical and economic conditions in the amendment area; infrastructure
deficiencies; why the elimination of blight and the redevelopment of the amendment
area cannot reasonably be expected to be accomplished by private enterprise acting
alone or by the City Council's use of alternatives other than tax increment financing;.
description of project and programs proposed by the Agency and how the projects and
programs will improve or alleviate blighting conditions; proposed method of financing,
economic feasibility, and reasons for including division of taxes; implementation plan;
plan or method for relocation; analysis of the preliminary plan; record of consultations
with the community; environmental impact report; neighborhood impact report; report of
the County Fiscal Officer and the analysis thereof, including a summary of consultations
•
'Mayor and City Council
Arcadia Redevelopment Agency
May 15, 2001
Page 3
with affected taxing entities; report and recommendation of the Planning Commission
and report required by Section 65402 of the Government Code; appendices
(Urbanization Analysis, Report to.the County of Los Angeles Auditor-Controller, Report
and Recommendation of the Planning Commission, Community Meeting Agenda, PAC
Meeting Agenda and Minutes).
This Report is being submitted to the Agency for its approval at the May 15 meeting.
The Agency is also being requested to transmit this Report to the City Council for its
review at the,future noticed public hearing on July 3.
The Agency is also forwarding to the City Council for consideration at the July 3 public
hearing the proposed amended Redevelopment Plan (See Exhibit B to ARA Resolution
No. 193, Attachment 1). The Amended Plan adds the legal description of the Amended
Area, adds the time limits for the Amended Area, and makes other text changes to the
existing Redevelopment Plan simplifying the Design Review process and making the
Redevelopment Plan Land Use categories consistent with the General Plan and Map.
Both the Agency (in Agency Resolution No. 194) and City Council (in City Council
Resolution 6122) are being requested to set a joint public hearing to consider and act
upon the proposed Redevelopment Plan and all documents and evidence pertaining
thereto on July 3, 2001, at 7:00 p.m. in the City Council Chambers.
ENVIRONMENTAL REVIEW •
An Environmental Impact Report on the proposed Amendment No. 5 has been prepared
and circulated per the California Environmental Quality Act (CEQA) and Agency
Guidelines. The 45-day review period is currently underway. The Agency and City
Council will be requested to consider the EIR for adoption at the July 3, 2001 Public
HearingT_._.__................... ...._.,.....__. ......_.._... ..... ..
FISCAL IMPACT
The Agency is estimated to receive approximately $8.25 million in gross revenues
(including housing) over the 30-year term of the amended area, and to expend
approximately $5.8 million in identified projects (not including expenditures for future
acquisition projects).
RECOMMENDATION
Redevelopment Agency .
It is recommended that the Redevelopment Agency adopt:
k {
Mayor and City Council
Arcadia Redevelopment Agency
May 15, 2001
Page 4
1. ARA No. 193; A Resolution of the Redevelopment Agency of the City of Arcadia
receiving the Report to the City Council for Amendment No. 5 to the Redevelopment
Plan for the Central Redevelopment Project ("Report"), approving the Report, and
transmitting Report and the 'Redevelopment Plan for the Amendment No. 5 to the
Central Redevelopment Project ("Plan") to the City Council (Attachment 1).
2. ARA No. 194; A Resolution of the Redevelopment Agency of the City of Arcadia
consenting to and calling for a joint public hearing on Amendment No. 5 to the
Redevelopment Plan for the Central Redevelopment Project (Attachment 2).
City Council
It,is recommended that the City Council adopt:
1. Resolution No. 6221; A Resolution of the City Council of the City of Arcadia
receiving the Report to the City Council for Amendment No. 5 to the Redevelopment
Plan for the Central Redevelopment ProJect ("Report") and the Redevelopment Plan
for the Amendment No. 5 to the Central Redevelopment Project ("Plan") (Attachment
3). .
2. Resolution No. 6222; A Resolution of the City Council of the City of Arcadia
consenting to and calling for a joint public hearing on Amendment No. 5 to the
Redevelopment Plan for the Central Redevelopment Project (Attachment 4).
Approved: - }1
William R. Kelly
•
City Manager/Executive Director