City Council Agenda Packet 03-11-1985AGENDA FOR THE MEETING OF THE CITY COUNCIL
Monday, March 11, 1985 - 7:30 P.M.
Mayor: Arve A. Grimsmo
Council Members: Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen.
1. Call to Order.
2. Approval of Minutes of the Regular Meeting Held February 25,
1985.
3. Citizens Comments/Petitions, Requests, and Complaints.
Ordinance Amendments
4. Consideration of Amending Ordinance No. 10, Chapter 18,
Section 5 (Flood Plain Management).
5. Consideration of an Amendment to the Cable Communications
Franchise Ordinance.
Old Business
6. Consideration of Constructing a Portion of the Sanitary
Interceptor Sower from Highway 25 to Cedar Street.
7. Consideration of Adoption of Two Resolutions Establishing
Deferred Compensation Plans for Monticello Employees.
B. Acknowledgement of Receipt of the Reimbursement Chock from
the Sherburne Wright Countius Cable Communications Commission.
Now Business
9. Consideration of Setting a Date for the 1985 Board of Review.
10. Consideration of Setting a Public Hearing for Establishing
Tux Increment Finance District.
11. Adjournment.
MINUTES
J REGULAR MEETING - MONTICELLO CITY COUNCIL
February 25, 1985 - 7:30 P.M.
Members Present: Mayor Arve Grimamo, Fran Fair, Bill Fair,
Jack Maxwell, Dan Blonigan.
1. Call to Order.
2. Approval of Minutes.
Notion was made by Fran Fair, seconded by Blonigan, and unanimously
carried to approve the minutes of the regular meeting hold February 11,
1985.
4. Consideration of Softball Field Development.
At the lost Council meeting, the City Council requested that
the Public Works Director present additional cost information
for the development of all three softball fields at the NSP
Park during 1985. Public Works Director, John Simola, rov Laved
with the council the detailed cost for renovating the two existing
fields and the construction of a now third field. The total
cost for the improvements was estimated at S25.120.00 with the
majority of the work being contracted out. It was also estimated
that the City maintenance cast for the softball fields in 1985
would total S3,480.00, making the total expenditures for 1985
approximately $28,600.00.
Mr. Simola noted that an approximate $3,330.00 would be no odod
in 1986 for the addition of bleachers for the now field and
Improvements to the parking lot facility.
Council members noted that the Softball Association would be
expected to work with the City staff in arriving at an agreement
as to what charges each team would be axpectod to pay annually
to the City for use of the fields and maintenance in the near
future. It has boon estimated that the annual per team contribution
would be between $200.00 and $300.00 annually to help defray
the coat of the proposed improvements and maintenance.
A motion was made by Bill Fair, Seconded by Jack Ma%voll. and
unanimously carried to authorize the expenditure of approximately
$28,600.00 in 1985 for the upgrading of the two existing softball
fields and the development of a now third softball field including
oprinkiors and a now wall. If the Softball Association can
generate enough now interest from additional teems in the coming
year*, the Council would then consider additional Improvements
that might include rostroom and concession stand faciiition
along with possible lighting of one field.
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Council Minutes - 2/25/85
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5. Consideration of a Preliminary Plat - Applicant, Construction 5
a' At the January 14, 1985, Council meeting, Construction 5, Inc.,
filed a petition requesting that the City vacate Sixth Street
near the Rand Mansion. At that time, the City requested that
the developer consider replotting his entire property into a
now; subdivision that would provide for a new roadway alignment
for Lauring Lano,.and at the same time the City would consider
vacating all of the current undeveloped streets within their
property.
A preliminary plat was presented to the Planning Commission,
which approved the subdivision request contingent upon minor
details being corrected by the developer. It was noted that
if the preliminary plat is approved, the City will be working
with its tax increment consultant, Holmes 6 Graven, and with
the City Engineer to discuss the making of public improvements
throughout the entire area. Because of the topography of the
land, the construction of public improvements such as sewer,
water, and streets may be extremely costly; and it may be beneficial
to create a Tax Increment District surrounding this property
to help defray some of the high cost of the public improvements.
Motion was made by Bill Fair, seconded by Slonigon, and unanimously
Fj carried to approve the preliminary plat for Construction 5 as
presented provided the comments by the City Engineer and City
Planner are incorporated into the final plat.
6. Clarification of Previous Motion Relating to Requirements to
Reserve On -Sala Intoxicating Liquor License - Applicant, Stuart
Hoglund.
At the last Council meeting, a motion was made and passed to
allow Mr. Stuart Hoglund to pay only the 4th Quarter pro rata
too of the annual liquor license, which would expire July 1,•
1985. As part of the State requirements for Issuing an on -sale
liquor licanoo. Mr. lloglund, before being actually granted a
liquor license by the Liquor Control Commissioner, must submit
a surety bond and dramshop Insurance. Mr. Hoglund requested
that the insurance requirements be postponed until he was actually
able to use the license at his now metal, but he would pay the
4th Quarter too.
It was noted that if Mr. Hoglund wanted a guaranteed license
to be in affect, the City has no choice but to require that
all Insurance forma be properly submitted to the Liquor Control
Division. It was the consensus of the Council that the previous
action requiring the lost quarter's foo plus all other inauranco
r' requirements stand as passed and notify Mr. Hoglund that the
d insurance requirements must be mot par State Statutoo. The
City will forward the application to the State as soon as the
.� items aro provided by Mr. Hoglund.
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Council Minutes - 2/25/85
7. Consideration of a Conditional Use Request to Allow an Apartment
Building to be Constructed in Excess of 12 Units - Applicant,
Metcalf & Larcon.
Mr. Jim Metcalf and Mr. Brad Larson, partnere in the Metcalf
& Larson Law Firm, are proposing to construct a 33 -unit subsidized
low to moderate income apartment building in Lauring Hillside
Addition. The apartment building would consist of 19 ono -bedroom
units and 12 two-bedroom units, with an additional 2 two-bedroom
unite for the handicapped. The proposed 33 -unit apartment building
appears to moot all minimum requirements of the City Zoning
Ordinance and was approved by the Planning Commission.
Motion was made by Fran Fair, seconded by Maxwell, and unanimously
carried to approve the conditional use request for the construction
of a 33 -unit low and moderate income apartment building.
S. Consideration of Variance Request Appeal to Allow NO Garages
to be Constructed on a 33 -unit Apartment Building Site - Applicant,
Metcalf & Larson.
An discussed in the previous item, a conditional use permit
was granted to Metcalf & Larson to build a 33 -unit subsidized
low and moderato income apartment building. Tho developers
requested a variance from the City Ordinances which require
at least ono unclosed garage structure par two units and requested
that no gorsgoa be raquired for this project. The variance
request was denied by the Planning Commission at their last
meeting, and the developers appealed to the City Council for
their considaration.
Mr. Jim Metcalf explained to the Council that the financing
for this apartment project would be coming from Farmers Home
Administration, and he noted that Farmers Homo does not consider
garages a necessity and will not finance construction of garages.
In addition, Mr. Metcalf noted that an adjacent housing development
owned by Reinert Construction was not required to construct
one garage unit for every two units, as that project has 48
total units with only 9 garages.
It was noted by the Council during its discussion that the typo
of financing used to construct apartment buildings should not
always dictato whether or not garages are required and felt
that the Ordinance requirement for garages helps eliminate blight
by providing storage facilities that aro needed at apartment
sites. It was also felt by the Council that the requirement
of garages would not be a hindrance to o developer in that there
era normally waiting lists at other projects for ranting of
jgarages.
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Council Minutes - 2/25/85
As a result, motion was made by Blonigan, seconded by Fran Fair,
and unanimously carried to deny the variance request to allow
no garages to be constructed on the 33 -unit apartment building,
site.
9. Consideration of Conditional Use Request to Allow an Additional
Number of Vehicles to be Placed on an Outdoor Sales Lot - Applicant,
Monticello Auto Sales. 4
Dr. McCarty, operator of Monticello Auto Sales, requested a
conditional use to allow him to increase the number of vehicles
currently parked on his outdoor sales lot on the former Dino -s
Other World property from the present 10 to a maximum of 20.
The current site has sufficient room for the 20 vehicles requested,
and the request was previously approved by the Planning Commission.
It was noted that if the additional 10 vehicles are allowed
at the site, 20 would be the maximum allowed at any time of
the week and that all sales e=tivity must take place at his
commercial business establishment downtown and no sales can
be conducted at his residonco.
Motion van made by,Blonigon, seconded by Bill Fair, and unanimously
carried to grant a conditional use permit allowing an extra
10 vehicles to be placed at his outdoor sales lot for a maximum
of 20.
F.;
10. Consideration of Conditional Use Request to Allow Outdoor Salon,
Service, and Outdoor Storage in a B-3 Zona - Applicant, Samuel
Proportion.
Mr. Sam Poraro requested a conditional use permit to build a
40' x 60' retail business building that would accommodate a
rental equipment business in Sandberg South Subdivision along
Highway 25. The conditional use permit is necessary, as this
project is proposing a 30- x 40- screened in storage area.
The sito plan as submitted moots all othur City requirements
and van approved by the Planning Commission at their last meeting.
Motion van made by Fran Fair, seconded by Maxwell. and unanimously
carried to approve the conditional use request to allow outdoor
anion, service, and outdoor storage in Sandberg South Addition.
11. Consideration of Senior Citizen Director Attandinq National
Conference on Apinq.
Senior Citizen Cantor Director, Karen Hanson, requested permission
to attend the National Conference on Aging in San Francisco,
California, April 21 through April 24, 1905. The projected
coat for Karon to attend this conference was estimated at 5075.00,
which vas budgeted for in 1985.
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Council Minutes - 2/25/85
L It was noted that the last national conference the Senior Citizen
Center Director attended was in 1980, and past Council policy
has been to allow the Director to attend national conferences
on an irregular basis upon Council approval.
Motion was made by Maxwell, seconded by Blonigen, and unanimously
carried to approve and authorize Karen Hanson to attend the
National Conference on Aging in San Francisco April 21 through
April 24.
12. Consideration of Sale of City Truck.
As part of the recent purchase of a new dump truck, the low
bidder, Hoglund Bus Company, a Mowed a guaranteed trade-in value
of $3,000.00 for the City's 1972 Chevrolet dump truck. The
City also advertised for sale tho truck for the past two weeks
and opened bide on Wednesday, February 20, 1985. The high bid
at that sale was from Fred Bonk of Buffalo. Minnesota, in the
amount of $4,850.00; and it wa 6 recommended by the Public Works
Director that the vehicle be sold to Mr. Bonk for thin amount.
Motion was made by Blonigon, a oconded by Bill Fair, and unanimously
carried to award the sale of the 1972 Chevrolet truck and snow
plow to Mr. Fred Bonk in the amount of $4,850.00.
F_
13. ConsiderationoP a Resolution Allowinq Municipal Employees to
L Enroll in a Doferred Componoat ion Proqram.
In addition to PERA, public employees are allowed to enroll
in various programs that allow ono to defer part of their annual
compensation. During the past few weeks, the City employees
have hoard presentations from two deferred compensation programs
and have expressed interest in taking advantage of a deferred
compensation program.
In order to initiate a dofarrod compensation program, the City
Council must adopt a resolution allowing for a payroll deduction
and ordering that it be paid into an approved deferred componoation
plan. City Administrator axpleined to the Council that the
actual resolution 4uthorlxluy o dwfurrod compensation program
for the employees was not avaiXablo for thin meeting but would
be presented at the next scheduled Council meeting for their
action.
It was the consensus of the Council to place thio item on the
next Council meeting for their consideration.
14. Piro Hall Committee Progreso R sport.
The Council was updated on the progress of the Piro Hail Building
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Council Minutes - 2/25/85
Committee, which has met three times since January 15. A number
r' of major decisions have been made in regards to the design of
the new Fire Hall, but the Fire Department representative on
the Committee raised concerns that members of the public were
becoming openly critical as to some of the decisions made by
the Planning Committee.
Some of the major design features agreed upon to date for the
Fire Hall are that the building apparatus room will be constructed
of concrete block, with the remainder of the building being
a wood frame construction. The wood frame construction was
recommended by the architect primarily because it would be more
energy efficient. According to the Fire Department representative
on the Building Committee, the public's main concern has been
in this area of wood construction rather than the entire building
being constructed of block.
The purpose of this informational item was to got a direction
from the Council as to whether they will be accepting the Building
Committee's recommendations, or if they will be overriding any
decision made by the Building Committee.
After reviewing the progress of the Building Committee, it was
the general consensus of the Council that they would be going
(�' along with the Building Committee's recommendations, which at
thintime appear to be a block construction for the main apparatus
room and the balance of the building being wood frame construction
with coder siding. Plane and specifications should be available
at the and of March by the architect.
15. Consideration of Bills for the Month of February.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to approve the bills for the month of February as presented.
Rick Molfato er
Assistant Administrator
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Council Agenda - 3/11/85
4. Consideration of Amending Ordinance No. 10, Chapter 18, Section 5
(Flood Plain Management). (T.E.)
A. REFERENCE AND BACKGROUND:
The City recently received an application for a building permit
to construct a residence within the flood fringe in the City.
Along with the application came a request for a conditional
use to allow the basement to be constructed below the Regulatory
Flood Protection Elevation. According to the existing provisions
of our ordinance, a residential basement may be constructed
below Regulatory Flood Protection Elevation as a conditional
use if and only if such basements are flood proofed to FP -1
classification in accordance with the State Building Code.
Having never had a case of flood proofing before, Gary checked
with the State Building Division to find out what an FP -1 classification
was. From the State Building Code, we were referred to the
Department of Natural Resources where we were informed that
the Federal Emerqency Management Agency issued rules this past
fall instructing that flood proofed basements are no longer
allowed at all. The representative of the DNR recommended that
the City of Monticello amend its ordinance as quickly as possible
to delete the conditional use provisions allowing flood proofed
basements below Regulatory Flood Protection Elevation.
The proposed amendment is to eliminate Subdivision 2 in its
entirety and to renumber Subdivision 3 as p2. If ouch an amendment
is adopted Monday night, we would publish on the next Thursday,
and it would become effective upon that publication. If we
chose not to amend the ordinance, the worst sconario of what
could happen would be that the City could be hold liable for
any flood damage to the individual -a home as woll no be cut
off from all Disastor Relief Funds from the federal government.
I think not adopting the amendment to delete would also be somewhat
frivolous since federal law will ouparcedo local law.
B. ALTERNATIVE ACTIONS:
1. Adopt an amendment deleting Subdivision 2 from Title 10,
Chapter 18, Section 5, of the City's Zoning Ordinance.
2. Do not adopt the amendment deleting.
C. STAFF RECOMMENDATION:
Staff rocommonda that for housecleaning we adopt the amendment
deleting this provision. An I mentioned, this to the first
flood proofing request that we have had, no this is not a major
issue. We should, however, make an attempt to being in compliance
with federal regulations.
D. SUPPORTING DATA:
Copy of the existing ordinance; Copy of the proposed ordinance amendment.
N
10-18-5t FLOOD FRINGE DISTRICT (FF):
(A) PERMITTED USESs The following uncc shall t.: permitted wie: within
the Flood Fringe District to the extent that they are not prohibited
by any other ordinance:
1. Any use permitted in Section 10-18-4-(A).
2. Accessory structures provided they comply with the provision
of Section 10-18-4-(C)-(3) of this ordinance.
3. Residences and other structures constructed on fill co that
the basement floor or first floor, if there is no basement, is
at or above the Regulatory Flood Protection Elevation and shall
extend at such elevation at least fifteen (15) feet beyond the
limits of any structure or building erected thereon. Fill shall
be compacted and the slopes shall be protected by riprap or
vegetative covering. Residences constructed on fill shall be
subject to the vehicular access requirements in Section 1U -18-5-
(C)-(1) .
No use shall be permitted which will adversely affect the capacity of
the channels or floodways of any tributary to the main stream, or
of any drainage ditch, or any other drainage facility or system.
(8) CONDITIONAL. USES: Ohter uses are permitted only upon application
to the Zoning Administrator and the issuance of it Conditional a::.r
Permit as provided in Section 10-10-10-(D) of this Ordinance au.l
subject to the followiny proviuionr.:
1. Residences: Where exintiuy ,^,treetn, ui.ilitiu:i, and small lot
sizes preclude the use of fill, other method, of olovatinq the
first floor (including basemcntu) .iLuve the Regulatory Flotod Pro-
tection Elevation may be authori?.ed, provided that the reaid,.ntce i, -i
flood -proofed in accordance with tho State. Building Code.
2. 110nidential Danementn: Rc::ideutial bmmmouto below 1.1- I lu,ld
protection elevation may be authorixcd if Choy ore flood-pruured
to FP -1 classification in accordance with the State Building Cede.
No floor or portion of a renidcncn bolow the Regulatory rinod 1•1•0-
tection 6lovation may be uacd for human occupancy.
3. Non -Residential Structures. Commercial, manufacturing, and in-
dustrial r.tructures shall ordinarily be elevated on fill no that
their first floor (including basement) is alxtva the Regulatory Flood
Protection Clovation butmay in special circumstances be flood -proofed
in accordance with,tho State Building Code. Structures thnt nro not
elevated to above tho Regulatory Flood Protoution Elevation shall
be flual-proofod to FP -I or FP -2 elanuiflcation as deflned by the
State Building Code. Structures fitiod-proofed to FP -3 or 1111-4
classification shall not be permitted.
(C) STANDARDS FOR FLOOD PRIWU USL9:
1. IUiSIOENTIAL USI:St rusidetn:ca that. do not have vuhiculet dcCras
at or al ove an elevation not more than two feet boluw Out Rugolatory
Flood fleotection M cvation shall not hn permitted unless grouted a
vnrinnca by the Board of Adjustment. In granting a variance Lhu
Board uhall specify limitationn nit thn period or use or occupancy of
the rcuid¢nce.
2. C01 IERCIAL USES: ACCO:tsory land uvea, Such AU yards, ra11,-d
tracLo. .Awl parking Ince may bu ,it ul•:vatiuna 1u:rur Chau it IaTll`
itint.nry Flo:Ad Protection Mevttiutt. Iluwevr,r, it pot -Mit for such
ORDINANCE AMENDMENT NO.
THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA, DO HEREBY
ORDAIN THAT ORDINANCE TITLE 10, CHAPTER 18, SECTION 5, PERTAINING
TO CONDITIONAL USES IN A FLOOD FRINGE DISTRICT BE AMENDED AS
FOLLOWS:
Delete in its entirety: 10-18-5(B)2, which section allows residential
basements below Regulatory Flood Protection Elevation as a conditional
use provided said basement is flood proofed to an FP -1 classification.
Re -number: 10-18-5(B)3 to 10-18-5(B)2.
Passed by the City Council this 11th day of March, 1985.
This amendment shall be in full force and effect upon publication.
Arve A. Grimamo, Mayor
ATTEST:
Thomas A. Eidam
City Adminietrator
Council Agenda - 3/11/85
5. Consideration of an Amendment to the Cable Communications Franchise
Ordinance. (T.E.)
A. REFERENCE AND BACKGROUND:
At the last regular meeting of the SWC6, Rite Cable Company
submitted a request to increase the a Is carte rate of the remote
control device. In the original franchise, they listed the
charge for remote control ala carte to be $2.50. When they
put together cable packages featuring various levels of services,
they like to use free remote control as an incentive. For example,
if a subscriber agrees to take the basic service, the satellite
package, and two premium services, then the remote control is
thrown in no charge. What Rita Cable has indicated is they
would like to increase that $2.50 figure to $5.95. This, from
a marketing standpoint, tends to tell the subscriber that he
is getting a larger free service. It is not unlike a single
can of pop costing 5.50, but a 6 -pack coating $2.50. The request
to increase the remote ala carte price is solely a marketing
tool and is done to generate interest in the premium pay services.
The question on how to go about allowing Rite Cable to raise
this is somewhat confusing. The original price as quoted is
in Exhibit A of our franchise ordinance. However, since the
enactment of our franchise ordinance, federal legislation has
deregulated local control of cable fees on ancillary equipment.
In essenco then, we cannot prohibit Rite Cable from increasing
their rates on the remote control device. Tom Creighton, the
Commission's Attorney, has advised that each city do an ordinance
amendment for housecleaning reasons. Rita Cable has indicated
to the Commission members that they would like it done in accordance
with the franchise ordinance process as as to avoid any conflict
or controversy over federal versus local control. Being they
aro just beginning their marketing in the 10 city area, they
wish to avoid any confrontation with any community. The Commission
voted 9 to 1 to allow the increase in the remote control a la
carte price. The City of Cokato was the one descenting vote.
I do wish to note that if any one of the tan cities does not
adopt an ordinance amendment, then the rate change cannot occur.
The Commission bylaws provide that all cities must adopt the
identical ordinance for the provisions to go into affect. If
Cokato, for instance, as the dascenting veto olacta not to amend
their ordinance, than Rite Cable will have to force the issue
under the Federal Deregulation Legislation.
D. ALTERNATIVE ACTIONS:
1. Adopt the amendment allowing an increase from 92.50 to $5.95
for tho remote control device - This in primarily housekeeping
since we have no real control over the process.
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Council Agenda - 3/11/85
2. Do not adopt the ordinance amendment - This is simply stating
our position, but is in effect establishing a straw man.
Rite Cable, under federal provisions, may simply raise their
rates at their discretion, and we are basically powerless
to stop it. At best, we could delay the process in court.
C. STAFF RECOMMENDATION.
This is solely a recommendation from me as the Cable Commissioner
for the City of Monticello. I recommend that we amend the ordinance
so that we are in conformance with federal regulations.
D. SUPPORTING DATA:
Copy of the proposed ordinance amendment.
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ORDINANCE AMENDMENT NO.
THE CITY COUNCIL OF THE
CITY OF MONTICELLO, MINNESOTA, DO HEREBY ORDAIN THAT
EXHIBIT A
OF THE MONTICELLO CABLE
TELEVISION
FRANCHISE ORDINANCE
HE AMENDED TO READ AS
FOLLOWS:
`•
li%IIIRIT A
SERVICE
MONTHLY RATES
INSTALLATION
RATES
1st Set
Add'l. Outlet
lot Set Add'l.
Outlet
Basic Service - 25
Channels
$6.00
$2.00
$25.00 Aerial/
$10.00
$40.00 Underground•
Rental of 36 -Channel
Converter
none
none
none
none
Rental of Addressable
Converter"'
$2.00
$2.00
$10.00
$10.00
Satellite Package -
13 Channels
$2.50
$2.00
$10.00
none
Premium Services
HBO
$9.50
No Charge
$10.00 Transaction
Cbargs for Ordering
One or more Premium
services at any One
Time
Cinema:
$9.30
No Charge
Showtime
$9.50
No Charge
The Movie Channel
$9.30
No Charge
BRAVO
$9.30
No Charge
The Disney Channel
$9.30
No Charge
Remote Control***
-82,40. s5.g5 4t.60- $5.95
No Charge
No Charge
FM with Cable
$2.50
$2.50
No Charge; $10.00
No Charge;
if added later
$10.00 if
added later
FM without Cable
$3.00
$5.00
$23.00 Aerial/
$10.00
$40.00 Underground•
Disconnect Charge
nano
none
none
none
Reconnect Charge
none
nano
$23.00
none
L.inoo through Indicate
dolotions.
Underlining indicatoo now language.
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Ordinance Amendment No.
Page 2
Passed by the City Council this 11th day of March, 1965.
This amendment shall be in full force and effect upon publication.
Arve A. Grimsmo, Mayor
ATTEST:
Thomas A. Eidem, City Administrator
Council Agenda - 3/11/85
6. Consideration of Constructing a Portion of the Sanitary Interceptor
Sower from Highway 25 to Cedar Street. W .S.)
A. REFERENCE AND BACKGROUND:
In the spring of 1986, the Council authorized the City Engineer
to prepare plans and specifications for the construction of
a portion of the interceptor sewer near Highway 25. The authorization
for these plane and specifications was given in conjunction
with the Hart, Cedar', and County Road 75 projects.
Since the Highway 25 project was put off for one year due to
design changes, the interceptor sewer project was delayed as
well. Work began on the project again recently with contacts
being made with the Burlington Northern Railway and the State
of Minnesota Department of Transportation. Earlier this year,
Mr. Charles Lepak of Orr-Schelen-Mayeron and myself met with
a member of the Burlington Northern engineering staff to discuss
the proposed construction of the interceptor sewer along the
Burlington Northern right-of-way. In order to design that portion
of the interceptor sower near Highway 25, we first had to know
the approximate alignment and construction conditions between
Highway 25 and the existing terminal point for the interceptor
sower,Washington Street. It appeared that we would have to
cross the Burlington Northern right-of-way at least two or more
times. The Burlington Northern representative was extremely
cooperative and indicated under certain conditions we could
open cut the railroad to allow for the installation of the interceptor
sower when crossing it. The most likely alignment, however,
for the interceptor sower would be near tho right-of-way line
for the railroad. Since the railroad is constructed on a City
street, a formal permitting process would not be required.
Burlington Northern merely requested that we submit the plane
to them for approval from an engineering standpoint.
With a possible alignment in hand between Cedar Street and Washington
Street, Mr. Charles Lepak contacted the Minnesota Department
of Transportation with soma preliminary design information to
request open cutting of Highway 25. Thorn would be a savings
of approximately $14,000.00 by open cutting Highway 25 and patching
the existing blacktop versus jacking under Highway 25. The
Minnesota Department of Transportation indicated approval of
this preliminary plan for open cutting Highway 25. If tho work
was done this year in 1985, any post settlement that may take
place should be completed prior to the construction of tho now
highway in 1986.
Along with that portion of the interceptor sower under Highway 25,
It may be advisabla to complete the interceptor sower along
the ontlro block between Cedar Street and Highway 25 to bo done
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Council Agenda - 3/11/85
with this area. This would include the jacking of the interceptor
sewer under Cedar Street, as there is a relatively large diameter
storm sewer as well as gas main, telephone lines, and water
main on Cedar Street. Either Mr. Chuck Lepak or John Badalich
of CSM will give a presentation of the proposed project. It
would be advisable at this time to discuss the possible time
table of the remaining portion of the interceptor sewer. It
is conceivable that this time table could coincide with bonding
for the upgrading of our water system.
B. ALTERNATIVE ACTIONS:
1. Alternative gl would be to go ahead with that portion of
the project between Cedar Street and Highway 25 and order
the preparation of the final plana and specifications for
that portion of the project.
2. This alternative would be to delay the project until the
entire interceptor sewer is constructed. It ie possible
that a portion of the $14,000.00 savings could be saved
at a later date through incorporating this project with
a larger project.
C. STAFF RECOMMENDATION:
It is the recommendation of the Public Works Director that we
go ahead with this portion of the interceptor sewer between
Highway 25 and Cedar Street and that we develop a proposed alignment
for the remaining portion of the interceptor sewer and begin
discussions with the land owners and Got a time table for the
remaining portion of the interceptor sewer. This would be Alternative 01.
D. SUPPORTING DATA:
Letter from the Minnesota Department of Transportation.
.5_
o MINNESOTA DEPARTMENT OF TRANSPORTATION i
D
!72512TH STREET NORTH
-�, BOX 370
~!Or Tstwo ST. CLOUD, MINNESOTA 5e202
prone; 255-4176
.IVED�
February 26, 1985 -, q 6 ASSM
Orr-Schelen-Mayeron 6 Associates, Inc.
2021 East Hennepin Ave.
Suite 238
Mlnneapolls, MN 55413
In reply refer to: C.S. 0605. T.M. 25
Detour to facilitate sewer construction
In the city of Monticello
Dear Mr. Lepak:
Con7M.
FE627
You wlII be allowed to detour T.H. 25 In the city of Monticello to
facilitate construction of a sanitary sewer across the highway subject
to the following:
An acceptable detour plan shall be provided to this office. The plan
should show all barricades and signs necessary to safely direct traffic
through the detour. All traffic control devices and methods shall
conform to the requirements set forth In the Mn/DOT Standard Specifications
for Highway Construction, 1983 Edition, Section "1710 TRAFFIC CONTROL
DEVICES."
Restoration of the roadway shall be made with the same types of materiels
presently existing. Careful attention shall be given to matching
existing subgrade materials to prevent differential frost heaving.
Compaction of the subgrade, base and surfacing may be by the ordinary
compaction method as specified In Mn/DOT Standard Specification 2105.F2
for the subgrade, 2211.C2 for the Gravel Base and 2331-143 for the Bituminous
surfacing. Bituminous surfacing shall be Mn/DOT Spec. 2331 Base and
Wearing course or better. Minimum wearing course thickness shall be
IV' with the remainder being made up of base or binder course. You
will be responsible for restoring any settlement which may occur.
Application to perform the work must be mode on utility permit form
number 2525 to the utility section in St. Paul.
A $10,000 performonce bond will be required In our office prior to Issuance
AN EOUAL OPPORTL00V EMPLOYER
-411-N CP
-x -
of the permit. The bond must stay In effect until released by the
Commlbsloner of Transportation.
SI ncerely,
Roger Busch
Roadway Regulation Supervisor
RB:sc
cc: M.N. Yoera
Len LeItne.r
Enclosure
l
Council Agenda - 3/11/85
7. Consideration of Adoption of Two Resolutions Establishing Deferred
Compensation Plane for Monticello Employees. (T.E.)
A. REFERENCE AND BACKGROUND:
At the last meeting, I provided you with a brief explanation
covering the deferred compensation plans that we have been investigating
for the employees. Again, as I emphasized at that time, these
plane do not require municipal contribution, only municipal
paperwork. Even the paperwork is relatively minimal. As I
noted at the last meeting, we anticipated having a resolution
prepared for adoption, but that resolution had not arrived in
time for Council meeting. The resolutions required to establish
this plan are now attached. The two plans that we would like
to put in place for employee option are the International City
Management Association -Retirement Corporation and the Safeco
Insurance Company Deferred Compensation Plan.
Upon adoption of the resolutions, staff will execute the appropriate
trust agreements and establish the payroll deduction format
for the employees. Since there was a consensus of the Council
at the last meeting that such a plan would be beneficial, I
am not providing alternative actions or staff recommendation.
r D. SUPPORTING DATA:
Copies of the resolutions required; Copy of background information
on the two plans.
-6-
RESOLUTION 1985 93
RESOLUTION TO ESTABLISH A DEFERRED COMPENSATION PLAN
t
WHEREAS, the City of Monticello has employees rendering
valuable services, and
WHEREAS, the establishment of a deferred compensation plan
for such employees will serve the interests of the City by enabling
it to provide reasonable retirement security for its employees,
by providing increased flexibility in its personnel management
system, and by assisting in the attraction and retention of
competent personnel, and
WHEREAS, the City has determined that the establishment
of a deferred compensation plan to be administered by the ICMA
Retirement Corporation will servo the objectives stated above,
and
WHEREAS, the City deoiree that the investment of funds
hold under its deferred compensation plan be administered by
the ICMA Retirement Corporation, as trustee, with the understanding
that ouch funds will be hold by the ICMA Retirement Trust, a
trust established by public employers for the purpose of representing
the interests of ouch employers with respect to the collective
investment of funds hold under their deferred compensation piano:
NOW, THEREFORE, BE 1T RESOLVED THAT THE CITY OF MONTICELLO
adopts the deferred compensation plan, attached hereto as Appendix A,
and appoints the ICMA Retirement Corporation to serve as administrator
thereunder; and
BE IT FURTHER RESOLVED THAT the City hereby executes the
1CMA Retirement Trust, attached hereto as Appendix B; and
BE IT FURTHER RESOLVED THAT the City hereby adopts the
trust agreement, attached hereto as Appendix C. and appoints
the ICMA Retirement Corporation as trustee thereunder, and directs
the ICMA Retirement Corporation, as trustee, to Invest all funds
hold under the deferred compensation plan through the ICMA Retirement
Trust as noon as in practicable; and
BE IT FURTHER RESOLVED THAT the City Administrator shall
be the coordinator for thin program and shall receive necessary
reports, noticoo, etc., from the ICMA Retirement Corporation
as administrator, and shall cant, on behalf of the City, any
required votes under the program. Administrative duties to
carry out the plan may be assigned to the appropriate departments.
v
Resolution 1985 13
Page 2
Adopted this 11th day of March, 1985.
Arve A. Grimsmo, Mayor
Thomas A. Bidem
City Administrator
RESOLUTION 1985 04
RESOLUTION ESTABLISHING A SECOND DEFERRED COMPENSATION PLAN
WHEREAS, the City of Monticello has employees rendering
valuable services, and
WHEREAS, the establishment of a deferred compensation plan
for such employees will serve the interests of the City by enabling
it to provide reasonable retirement security for its employees,
by providing increased flexibility in its personnel management
system, and by assisting in the attraction and retention of
competent personnel, and
WHEREAS, the City has determined that the establishment
of two deferred compensation plane would provide the opportunity
for the employees to make alternate selections, and
WHEREAS, pursuant to City Resolution 1985 03, the City
has established one deferred compensation plan to be administered
by the ICMA Retirement Corporation, and
WHEREAS, the City has determined that the establiahemnt
of a second deferred compensation plan as offered by Safeco
Life Insurance Company will also serve the above objectives,
and
WHEREAS, the City doofroa that the investment of funds
hold under its deferred compensation plan be administerod by
Safeco Life Insurance Company for the purpose of representing
the interests of the City and its employees with respect to
the collective investment of funds hold under their deferred
compensation plane:
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY OF MONTICELLO
adopts the deferred compensation plan, attached hereto as Appendix A,
and appoints Safeco Life Insurance Company to servo as the Investor
of funds; and
BE IT FURTHER RESOLVED THAT the City Administrator shall
be the coordinator for this program and shall receive necessary
reports, noticos, otc., from the Safeco Life Insurance Company,
and shall submit all necessary and required forms as required
under appropriate law. Administrative duties to carry out the
execution of the plan may be assigned to appropriate departments.
0%
Resolution 1985 as
Page 2
Adopted this lith day of March, 1985.
Arve A. Crimsmo, Mayor
Thomas A. Bidem
City Administrator
("EMPLOYER")
DEFERRED COMPENSATION PLAN
I. INTRODUCTION
Tyro Employer hereby estatil,shOa the Employer's Deterred
Comp.n motion Plan. hereinafter referred loos Ina"Plan." the Plan
consists of the provisions set forth in this document.
The primary purpose of t his Plah rs to pr aYldo retirement income
and other ealoired benefits to the Employees of the Employer in
accordance wdn the provisions of section 657 of the Internal
Revenue Code of 1956. as amended.
This Plan !hall be an agreement solely bel Peen the Employer
and participating Employees,
11. DEFINITIONS
2.01 Account The bookkeeping account maintained for each
Panrapant reflecting the cumulative amount of the
Participant's Deferred Compensation, including any mcema.
gams. losses. or increases or oecreasis In market value
attributable to the Employer's investment of the Pen.c1pant$
Detailed Compensation, and further reflecting any disblbu•
bons 10 the Participant or the Participant'$ Beneficiary and
any fees or emptiness Charged against such Participant',
Deferred Compensation
2.02 Administrator: The person of persons named to Carry out
certain noindisCretionary administrative functions under, the
Pun, as hereinafter described. The Employe may remove
any person as Administrator upon 60 days advance notice in
wnling to such person, in which case the Employer snail
name anothor parson or persons to act as Administrator. The
Administrate may resign upon 60 days advance notice in
writing to the Empiovet. In which the case the Employer shall
nam. another person or persons to act as Administrator
2.02 Beneficiary: The person or parsons designated by the
Participant in his Joinder Agreement who shall receive any
benefits payable hereunder in the event of the Participants
deatn,
2.04 Deferred Compensation: The amount of Normal Compenms•
lost olherwiN payable to the Participant which the
Part pant and the Employe mutually agree to deter
hereunder, any amount Credited toe Participants Account by
reason of a transfer under Section 6 03, or any other amount
which me Employer agrees to credit to a Participants
Account.
2.05 Employee: Any individual who provides Services to, the
Employ&, whether ss an Omploym Ot the Employ„ o, risen
independent contractor, and who has base designated by the
Employer as eligible to partrcipsle in the Plan.
2.06 InCWAble Compensallon: The amount of an Employ"a
compensation from the Employer fora lam able Weer that is
attributable to eerv,ces performed for Ihe Employe and IRI
is includible In the Employ M'S prose income for the taxable
year for federal income lax purports, such term do" not
APPENDIX A
include any amount excludable from gross income u ndet this
Plan or any other plan described In section 657(b) 01 the
Internal Revenue Coca. any amount erclu08be from gloss
income under section 603(0) of the Internal Revenue Cede,
or any Other amount excludable from gross income for
federal income lax purposes, includible Compensation Nell
be determined without regard 10 any community properly
In -
2.07
n a.2.07 Joinder Agreement: An agreement entered into between an
Employee and the Employer, Including any amendmcntsor
modifications thandl, Such agr0emsnt shall fix the amount
OI Deterred Compensation, specify a preference among the
investment alternatives designated by the Employer,
designate the Employees Beneficiary or Beneticisrres.end
incorporate the Tams, conditions, and provisrone of the Plan
by reference.
201 Normal Compensation: The amount of compensation which
would be payable to a Participant by the Employer for a
taxable West it no Joinder Agreement were in effect to deter
compensation under this Plan.
2.09 Normal Retirement Age: Ago 70, unless the Participant has
elected an alternate Normal Rolizmenl Ago by written
Instrument delivered to the Administrator prior to Separation
from Service. A Participant's Normal Retirement Ago
determinate (a) the latest time when benefits may Commence
under this Plan (unless the Participant continues employ
ment allow Normal Retirement Ago). and ( b) the parrod during
Which a Participant may undue the catcrnup limitation of
Section 5 02 he r ounder. Once a Participant has to any adml
utilized the Ce1Ch•up limitation of Section 502. his Normal
ROtiremo it Ago may not be changed
A Participant's alternate Normal ROlrremenl Ago may net
N- ser tint than the Oa,l,.sl dale Thal in. Ps,lrCrpenl ..It
tomomo eligible to retire and rrtc—e umad.cad rot—m,ml
benefits undo, the Employer's basic folnamoni plan corning
the Participant one ploy not be later than the date the
Participant attains ago 70 11 a Participant COnim,01
employment sane, attaining age 70, not ha.mg previously
elected on allornffu Normal Retirement Ago, Ino Participant's
alternate Normal Retirement Age small not be later thanthe
mandatory reloem Ont age. It any, 04140lishod by the
EmpIOVOI. Of the ago at which Imo PaitiCiPAm actually
Separate$ from sofvico 11 the Employer has no mandatory
f 0hFOor int age, If the Participant will not bocomo of i grble l0
recmwe benefits under a basic Four Omani plan main to r nod by
the Employer, the Participants alternate Normal Retirement
Ago may not be ager& than attainment of age 55 And may met
be later than attainment of ago 70
2.10 Participant: Any Employee *he has joined 1 he Plan pursuant
to the requirement% Of Anrde IV.
2.11 Ran Tear: The Calendar yam
V
9.12 Rellrement: The first data upon which both of the following
Shall have Occurred with reapeCI to a Participant'. Separation
from Service and alleMment of Normal Retirement Age,
9.19 Separe0on hon Service: Severance of the Participant's
employment with the Employer. A Participant shall be
deemed to have severed his employment with the Employer
for purposes of this Plan when, ,n accordance with the
established practices of the Employer, the employment
relationship is considered to have actually terminated. In the
case of a Participant who is an independent contractor of the
Employer. Separation from Service Shan be deemed to have
occurred when the Participant's Contract under which
services are performed has completely eapead and
terminated. there a no foreseeable possibility that the
Employer will renew the contract or enter Into a new contract
lot the Participant's se—CeS. and it is not anticipated that the
Participant will become an Employee of the Employer.
Ill. ADMINISTRATION
9.01 Duties of Employer. The Employer shall have the authority to
make all discretionary Decisions affecting the rights or
benefits of !larticipanib Which may be required ,n the
administration of this Plan.
9.02 Duties of Administrator. The Adminlstrslw, as agent 10, the
Emp!oyor. shall perform ".discretionary administrative
functions ,n connection with the Plan, including the
maintenance of Participants' Accounts, the provision of
periodic reports Of the status or each Account and the
disbursement of benefits on benall of the Employer in
accordance with the provisions of this plan
IV. PARTICIPATION IN THE PLAN
4.01 Initial Participation: An Employee may become a Participant
by entering into a Joinder Agreement prior to the beginning
of Iha Calendar month in Which the Joinder AgrMmonl Is 10
become OffeCIiv010 deter compensation nor yet earned.
4.02 Amain dmanl of Joinder Agreement: A Participant may amend
an e.aCured Joeldot Agreement 10 change the amount of
Compensation not Val earned which 0 to to 0010/1/0
(including trio reduction of such future deferrals to 7m0) Or to
Change his investment ptelar Once IsubiOC! to Such 106trIc-
irons as may result from the natulnot
terms of any investment
made by the Employer), Such amendment shall I)CCOmO
Oflaclive as of the beginning of the Calendar month
Commencing brier Ina date the amendment is exoCuted. A
Participant may at any lime amend his Joinder Agreement to
Change the designated Beneficiary and such amendment
,nail become epoctive immedmtefy
V. LIMITATIONS ON DEFERRALS
5.01 Normal Limitation: EaCOpI as provided in Section 502. the
ma—um amount Of Detailed Compensation for any
Participant lot any Is, able Vast shall not exceed the lease, of
67,500oo or 33 113 percent of The Participant's Includible
Compensation for the tamable year. This Iimrlallon will
ordinarily be squnawnl to the losses of 67,50000 or 25
percent of the Participant's Normal Compensation
5.02 Caleh-up Limitation; Fol each of the Intl three 171 ta.ahln
yams of a Participant ending before his anammom of Normal
Raluoment Ago, the ma.imum amount of Detailed
Compensation Shall be trio loose, of I I) S15.ODO or 12) the
sum Of Is) the Normal Limitation lot trio to, able year, and Iii)
that portion 01 Ina Normal Limitation lot each of Ina prior
taxable years DI Iha Participant commanding alter 1078
during WhiCh Iha Plan Wes in axisl.ncu and the Participant
was eligible 10 pAIIICipaie in Ino Plan lot in any other plan
ablablishoa undo, Section 457 of the Internal novonuo Coast
by an employs' ..Into Ina Same State no the Employer I leu
the amount at Detailed Compensation for each Such prior
tamable Year peeludmg amounts aalMred undo, SuCh Other
plan) For purposes Of this Section 502. a Participant's
Includible Compensation for the current taxable year shall be
deemed to Include any Deferred Compensation lot me
taxable year in excess of the amount permitted under the
Normal Llmttaboh, and the Panncipant's Includible Compen.
sation for any prior taxable year shall be deemed to eaclua'
any amount that could have been deferred un0or the Norm.
Limitation for Such prior taxable year.
5.07 Section 407(b) AnnultNa: For purposes of Sactions 5 01 and
5,02, amounts contributed by the Employer on behalf of a
Participant for the purchase of an annuity comreet described
n section 400(b) of the Internal Revenue Code shall be
treated as if such amounts coSstilulod Deferred Compensa-
tion under this Plan for the la.able year in which the
Contribution was made and shall thereby reduce the
max imum amount Thal maybe deferred for suCh tax able yea r.
VI. INVESTMENTS AND ACCOUNT VALUES
6.01 Investment of Deferred Comp~Ion: An mvealments of
Participants Doferred Compensation made bythe Employer.
including all property and rights purChased wlm suCh
amounts and all Income attributable Ihefelo. shall be the sole
property o1 the Employer and shall not be held in trust for
Participants or as Collateral security for the fulfillment Of Ina
Employer's Obligations under the Plan Such prOpCrly shall
W. subject to this, Claims of general creditors OI the Employal,
slid no Participant or Benefreisly shall nnve any veslad
lnleiest Or seemed or pl elnrrW p05l11Oe win iaspecl to such
Pint-tv Oi have any Claim againsl the Employer e•CCPI 115 n
gonia al credrtoi
6.02 Cradling of Accounts: The Pan,apant's Account shall reflect
the amount and vOluo Of the investments or Other property
Obtained by the Employer through Pur investment of Iha
Participate's Detailed Compensation. 11 is anticipated Ilial
the Employer's —min onts with rospeCl to a Participant will
confom to the investment preference specified in Iha
Panic:paw a Joinder Ag moment. but nothing herein shall b
construed to require the Employer to mase any particular
investment of a Participant's Deferred Compensation- Each
Participant shall receive periodic reports. nol lana lioquenlly
than annually, Showing the Then-curreel value OI his
Account.
6.03 Acceptance of Tsanslors: Pursuant to an appropriate written
ag,eemenl, the Employer may accept and creat to a
Participant's Account amounts transferred from another
employer within the same Slate repiesenling amounts hold
by Such Other employer under an eligible Stain deferred
compensation plan described in section 457 of ilia Internal
Revenue Code, Any such aanslnned amount shall not bill
lioale0 as a colossal subject to the lenaal-is of Milt lO V.
provided however, that the actual amount of any colossal
I,nan, the plan from wmeh the tt Alnmer to meda shall bo tason
into account ,n compulmg the Catclyep limitation undo,
Section 502
6.04 Employs, Llsblllty: In no ovent shall Iha Employer's liability to
pay benplits to a Participant unapt Article VIe.Cea01he valuo
of inn 0.0-1, c-cland t0 the P.,I 1paelI ACCOur11, its,,
Lrnpioygr shall nor fill liable los lussls astelg from
11i•prr'C i prion or smmsnge in it,,, value' ut any insi'9lmanls
acquit ittl unanr Ihlb 1.11111
VII. BENEFITS
7,01 Retirement Benefits and Election on Separation from
Service: E.Cept ria nitres W tart prnvined in INS AI IICIa VII, Iha
aiolreullon or a PailiCipant a Account shall commenco
during Ina second Catandar month after the Cloon of the Plan
Year 01 trio Participant's polo omens. also the Dnsbibulion o
buCh 17e11,omeel temitila ,hall he maJe in eCCOroance With
ono of the pasimmel uphoes auncrieotl el Soction 702
Notw.Ihstandmn trio lolegorltg, the PartiCmAnl may Moro-
cabiy elect wrtrun Fie days failawerg SCparaliO- from Service
to have the distributional b*nairt► CDrtlmlvlCe On A data other
than that described in the preceding sentence which IS al
lees) BD days Siler the date such OACIll n Is delivered of
writing to the Employer and I0rward00 to Ins Administrator
but not later than 60 day$ alto, the Close Of the Wan Year of
the Participant's Retirement.
7A2 Psyment Options: Asprovidedin Sectrons7,01. 7.05and7.06.
a Participant may elect to have the value Of his Account
distributed in accordance with one Of me following paymon!
options, provided that Such option is Consistent with Ind
limitations set forth in Section 7.03:
(a) Equal monthly, quarterly, semi-annual or annual
payments in an amount chosen by me Participant,
continuing until his Account is exhausted:
(b) One lump sum payment,
(C) Approximately Boost monthly. quarterly, semi-snnual
or annual payments, calculated to continuo tot a period
carlern Chosen by the Participant:
(0) Payments equal to payments made by the issuer of a
retirement annuity policy acquired by the Employer:
(0) Any Other payment opiates elected by the Participant
and agreed to by the Employer.
A Participant's election Ole payment option must be made at
taut30,days baler* fro payment ofbersh its IS tocommerrCQ.
II a Participant fails to make a timely ~son of a payment
option, benefits shell be psld monthly under option (c) above
for a period of five Yuri
7A2 Umltation an OpOans: No payment option may be selected
by the Participant under Section 7,02 unless the present Value
of the payments t0 trio Participant. determined as of the date
benefits commence, exceeds 50 Meant Of the Value Of the
Participant's Account as Of the date benefits commence,
Present value disseminations under this Section Shelf be
made by the Administrator in accordance with Ifs Ox PoClad
return multiples set forth in Section 1,72-9 Of the Fees, at
Income Is, Regulations lot any successor provision to sucM1
regulations)
7be Peal•rotitersenl Death Benefits: Should Iho Participant deo
aftor no ties begun to receive penclitt under a payment
option, the remaining payments, of any. under the payment
option "it be payable to trip Participant's DendticlsrY
Commencing within 60 days alter the Administrator receives
proof of file Participant s death, unless the Beneficiary mPcta
p0ym.rrl under a tldtnioni pa%mow option at least JO dayo
prior to the dale that the lust pay mens becomes onyanle 10
the Beneficiary. in no ovens snail the Employer or
Administrator be liable 10 thu OOnubCrmy for the amount o1
any Payment nide* in Ina name of the Participant t01of a the
Administrator receives proof of death of the Participant
ivotwtinstanding inn enegomg, pmymams to a D,nabcraxv
shell not exlood over SPO rod longer Thanp) Inn Denel.craly's
life expectancy d the Beneficiary's trio PartxGpant'a spouse
or (u) fifteen 115) yeaia it mo Beneficiary is not the
Participants spOUsO. It no armoloCet y is designated in 1110
Joinder Agf consort, of it the tlnbgnated Btnef rciary Con not
aurvrvo thePatticipanl for o peuod of fifteen (151 day S.lhon
the commulod Value Of any remaining payments under the
payment option snail be paid in a lump sum to the Palate of
the Participant. It tie de igna res Diamliciaty, survive* tis
Participant fol a period of Idlsin (15) days, but doe$ not
continue to live tot ills Iernamxng PCs #00 Of paytifOnts under
the Payment OPIrOn (aS mad,led, it neClssery. in conformity
with the third Sentence of tnts ASChOn). than the COmmutOd
vacuo OI any remaining payments under the payment option
&hall be Palo In a lump Sum to Ina eseels Of the OenefiCiary,
1.05 Pr*•r&N ~j Da lis &Mat1b: Should ins Participant doe
before he Ms begun to receive the benefits prawtl*d by
Sections 7.01 or 7.00, a death benefit equal to the v4bA Ot Ina
Pamc,parst's Account Shell be payable to the BenefiCiary
Commencing no later Irian 60 day► after the Gose clove Plan
Year In whim the Participant would have attained Normal
Retirement Age. Such death benefit snail be paid in a lump
Bum unless the Beneficiary elects a different payment Option
within 8D days of the Participant death A Beneficiary who
may elect a payment option pursuant t0 the provisions of the
or cc ailing sentence shell be Ir staled as it he were a Participant
for purpose* of determining the payment options available
under Section 7.02. provided. nowevor, Inst the paymont
option chosen by the DenefiCiary must provide for payments
to the Beneficiary over a period no longer than the life
expectancy Of the Beneficiary If the Beneficiary is the
Participant'S spouse and must provide for PaymO h, Over a
periotl not in excess Of fifteen (151 years d Ina eenelGary IS
not the Participant's spouse.
7.06 Disability: In the event a Por liCtpant becomes disabled before
tin!cemmencemeni of Retirement bane!,, undo! Section
7,01, IM Participant may elect to Commence benefits under
One of Ise payment Options described in Section 1 02 on the
Iasi day of the month following a dele!mmanon of dlsabiluy
by IM Employer. The Participant's request lar Such
dot Ormination must be made within a reasonable time after
this impairment which constilutae the dlsab bly occurs, A
Participant Strait be considered 01Sabttld for PutpOses of this
Plan it he is unable to singago In any substantial gainful
activity by reason Of any medically determinable physical Or
menta Impalement which can be expected to result in death
or, be Of long -continued ono indefinite duration. TRO
disability of any Participant shelf ae tWorillmeO in
accordance with uniform principles consistently applied and
uoon the teals of Such medical evidence at the Employer
dooms nodesaary and desirable.
7.07 UManaea l" Emergencies: in the Ovens an unfolenreatele
Om O/genCy occurs, a Participant may apply to the Employer
to seCeivO .. part al the value 01 he OCCOuni that Is
tonsonably needed to SOtisly m0 *mar gency need. II such an
application is approved by trio Employer, rte Pat tscxpant Shan
is poldonly such amount as the fmoloyer deems necessaly
l0 m11et the emergency -mod, but payment *11411 -0100 -,00-
to the clitoris mat the Iianc,nl nal Jan@ may be mlrmvod
Itilough Cees ion of 0111.1101 .-CIO, Inn plan, mswanco or
OihCt eimbulson"I"o, Or liquidation of tim", assets to tn.
exti)-I such liquitl41r011 W Oue ^cit IISuII Cause sOv Or u Finan Gaal
hafashp An unforeseeable eenm9ency Md, ion davmed to
nvnlve only Circum SlenC.n 01 srtrmin tinaiif ill Iver 03mp ro Inc
Pail'opant r-Suit'ed teOnva,.time and ull' . loolleeflor
m'r:.rh•nl ul Elie P, 11C,11a^I to OI a depems'nl fro. J, loco m
w•c1.nn 1521s1l Of tin' lot".01 neve-le. Cartel at me
1,01.4n1, loss of mo Parbcdrool * prop,-,% dila Iocask'Ally
of Otllll S1m11n1 And i'.11n0101nalY unimescenblpcirCum-
blanC,,-serismg As a wsuh of events hayond1110 C00uD101 th,
pLl.fipani lite neat lO sand aP.0 liCipanlf CnilU IO GOIIdOU
u1 11) poi Cnn3e A 1111. nOme shelf nm hO COM00 ed
enfon tonnle emmgnneias inn deo,mmatxon as lir
sant*tiv'1 such ars unfore.seeebt. amenglmcy 0.1513 shalt be
ionised on t he mans oI ancn mdividuel case
VIII, NOWASSIGNABIIITy
No Par ticipani or BOnefiCrary shelf have SOY right IO COmmulO,
tell. assign, pledge, frontier of Otherwise convey Or encumber the
signs to 10MV41a any pBYmantS tsroun00f, .hCh paYmmtS and
light, me expressly declared to be non•aSugnabto one non.
trailsfoiabM
Is. RELATIONSHIP TO OTHER PIANS AND EMPLOYMENT
AGREEMENT&
Ihls Plan saves to soait*n 10 any othot to iromenl, pflnhOn, or
benefit pian on system protoniry to existence Of teranatty
established lot the benefit OI the Employers OmpIO,Aft, and
psluCipst ron harounder Snail not affect bonotus toCorvdbfe under
V
any such plan or system, Nothing Contained in this Plan shall be
'Warned to Constitute an employment contract or agreanierlt
between any Participant and the Employer or to give any
Participant the right to be retained in the employ of the Employer.
Nor shall anything herein be construed to modify the terms Of any
employment contract or agreement between a Participant and the
Employer.
X. AMENDMENT OR TERMINATION Of PLAN
The Employer may at any time amend this Plan provide' mat it
transmits such amendment in writing to the Administrator at least
30 days prior to the effective date of the amendment. The consent
Of the Administrator shall not be required in order for Such
amendment to become oftecine. but the Administrator shall be
under no Obligation to continue act ing as Administrator hereunder
if it disapproves of Such amendment, The Employer may at any
time terminale this Plan,
The Administrator may at any time propose an amendment to
the Plan by an instrumeril m writing transmittoo to the Employer at
least 30 days before the effective date of the amendment. Such
amendment Shall become effective unless. within Such 30 -any
period, the Employer notifies the Administrator in writing that II
disapproves such amendment, in which case such amendment
Shall not become effective, In the event of Such disapproval. the
Administrator shall be under no obligalion to continue acting as
Administrator hereunder.
No amendment or termmaticin of the Plan Shall divest en)
Participant of any rights with respect to compensation deterred
before the dale of the amendment or termination
KI. APPLICABLE LAW
This Plan Shall be construed under the laws of the stale whore
the Employer is located and is established with the intent that it
meet the f equirements of en "eligible Stale deferred compensel ion
plan" under 5oction 457 Of the Internal Revenue Code of 1954, as
ameneeo The provisions of this Plan small beinterpreted wherev Or
P055ib1C in Conformity witn the requirements of that Section,
%II. GENDER AND NUMBER
The niaSCuline pronoun, whenever u5od hmmn, Shell mCludO the
feminine pronoun, and the singular Shall mctuae the plural, C vCepi
where the content requir CS Olherwi5e.
DECLARATION OF TRUST
o1
ICMA RETIREMENT TRUST
ARTICLE I, Name and Definitions
SECTION I.I. Name, The Name of the Trust created hereby a the
ICMA Retirement Trust.
SECTION 1.2. Definitions. Wherever they are used herein, the
following terms shalt have the following respective meanings:
(a) By -Laws. The By -Laws referred to in Section 1.1 hereof. as
amended from time to Brite.
(b) Deterred Compensation Plan. A deferred compwLL
established and maintained by a Public Employer fa the=
of providing rot lrefllent iMCOM0 2nd other deferred benefits to Its
employees M accordance with the provisions of section 457 o1
the Internal Revenue Code of 1051. as amended
(c) Guaranteed Investment Contract. A contract enereo Into by
the Retirement Trust with insurance companies lhel provides for
a guaranteed rate of return on investments made pursuant to
ouch contract.
fit) ICMA, The international City Management Association.
(o) ICMA/RC Trustees. Those Trustees elected by the Public
Employers who, in accordance with the provisions of Section
3 list) hereof, are also members of the Bosid of Ouector s of ICMA
or RC
III Investment Adviser. The investment Advisor Thal entars into e
con I lscl with the Retirement Trust to pfovid0 advice w rth rospecl
to inveslmont of the Trust Property,
(g) Employer Trust, A trust created pursuant to In agreement
between RC and a Public Employol for the purpose of investing
and administering the funds sal Saida by such employer in
connection with els *starred compensation agreements with rte
employees,
(h) Portfolios. The Portfolios at investments established by the
I-oslmenl Advisor to the Retirement True. under the
supervision of the Trustees. for the purpose of providing
Investments for the Trust Property.
(d Public Employee Trustees, Those Tmstees elected by the
Public Employers who, in accordance with the provisions of
SOC1ron 3.Ile) "Wool, oro lull -lima employees of Public
Employers.
III Public Employer. A unit 01 slate of local government, or any
agency of Instrumentality thereof, that has adopted a Delerred
Compensation Plan and has saebuted the Declaration of Trust.
la) RCThe International City Management Association
Retirement Corporation.
(1) Retirement Trust. The Trull Created by this Declaration of
TfusL
(m) Trust Property. The amounts hold in the Retifnronl Trust on
behalf of the Public Employers, The Trust Properly Shan include
any income f asunmg from the investment of the amounts to hold.
In) Trustees The Public Employee Tfustoos and ICMAIRC
Trustees elected by the Public Employers to serve as membra a of
the Board of Trustees of the Retirement Trust.
APPENDIX B
ARTICLE U. Creation and Purpose of the Trust; Clumershlp of Trust
Property
SECTION 2.1. Creation The Retirement Trust is created and
established by tee execution of this Declaration of Trust by the Trustees
and the participating Public Employers,
SECTION 2 2, Purpose, The purpose of the Retirement Trust O to
provide for the commingled investment of funds hold by the Public
Employers in connection with their Deterred Compensation Plans, The
Trust Property Shalt be invested in the Portfolios, in Guaranteed
Investment Contracts and in other Investments recommended by the
Investment Adviser under the supervision of the Board of Trustees.
SECTION 2.3 Ownership of Trull Properly. The Trustees Shall have
legal title to IN Trust Properly. The Public Employers Nall be the
beneficial owners of the Trust Property.
ARTICLE III, Trustees
SECTION 3 1. Number and Qualification o1 Trustees.
In) The Board of Trustoes shall consist of nine Trustees. Five of
the 7rusloos shell be fun -time employees of 0 Public Employer
line Public Employed Trustees) who aro SuthOWed by such
Pubhc Employer Loser ve as Trustoo. Tho romnimng loui Trustees
shalt ConPst 01 two persons who, at the time of election to the
Booed of Trustees, aro members of Ina Board 01 Directors of
ICMA and luso poisons who, a1 the lima of election, aro niomwrs
of the Beard of O--clors of RC (the ICMAIRC Trustv,) One of
the Trustees who its arrector of ICMA. and ono 01 Iho Trustees
whois s aacclor of RC. shdr. at the tune of electron, be full-time
employms Of a PubIIC Employol.
to) No person may sarvo as a Trustee lot more than ono term in
any len•yrar period
SECTION 32 Electron dna Term
(n) Ficepl lot Ina Trusleris eppomled 10 fill vacanciespursuant
to Soction 3 5 horool, the Trustees Shall be elected try a vale of a
majority of the Public Employers in accordance with the
procedures sal tollh m the Gy-LaWa.
(b) At the first elation of Trustees, three, Trustees shall be
elected for a term at three years, three Trustees shall be elected
for a term of two years and throe Trustees shall be elected tot a
farm of One year, At oath subsequent election, three Trustees
Shall be efected tot a form of three years and until hes Of het
successor O elected and qualified,
SECTION 33 Nominations The Trusle0a who ate full-time
employees of Public Employers Shall serve as the Nominating
Committee lar the Push. Employee Trustees. The Nominating
Committee shall choose candidates for Public Employee Trustees in
accOrdanc0 wrmlho procedures Sal form in Iho By -Laws
SECTION 3a Rosignabon and Removal
lel Any lrusloe may resign as Ttustm (without need for prior or
subsequent accounting) by an instrument in writing signed by the
T tualm and dafrvefed to Iho other 1 ruslces and such resignation
shall to etteClrvn upon Such anuvOry, Or At a lain, daleacCoramg
r"�
to the forms of the instrument. Any of ITrustees may be
r omoved for CuluBe. Dy a veto Of a M majority of the Public
Employers.
(of Each Public Employee T ruOtee shall resign his or hot position
t t, u9100 withinsl•ty days of the date On which he or she ceases
10 Do a Jul me employee of a Public Employer.
SECTION 3.5 Vacancies. The term of Office of a Trustee shall
terminale and a vacancy shall occur in the event of the death,
leslgnalto n. removal, adjudicated incompetence Or Other incapacity to
Perform the duties of the OII,Ce of a Trustee. In I he Case 01 a vacancy, the
r ema.mng Trustees shall appoint Such person as they in their discretion
Shall OCC lit (Subjecl to the limitations Sot login In this Section). to serve
I Ino unexpired pprtldn OI the I01m Of IAB Trustee who hag resigned or
otherwise ceased to be a Trustee. The appointment shall be made by a
wr.H instrument signed by a majority of the Trustees. The person
appointed must be the same type of Trustee (i.e.. Public Employee
Trusted Ot ICMA/RC Trustee) as the person who has Caused to be a
Trustee. An appointment of a Trustee may be made in amic.pationol a
vete ncy IO occur at a later date by reason of retirement or resignation.
provided that such appointment shall not become ellective prior to Such
relnementor resignation. Whenever a vacancy in the number of
Trustees shall occur, until such vacancy is filled as provided in this
Section 3 5. the Trustees in office. regardless of their number, shall have
all the powers granted tothe Trustees and shall dlsdharge all the du1Ms
Imposed upon the Trustees by this Declaration. A written instrument
certifying the existence of such vacancy signed by a majority of the
Trustees shall be conclusive evidence OI the existence Of such vSCanCy.
SECTION 3.11. Trustees Some in Representative Capacity. Sy
executing this Declaration, each Public Employer agrees that the Public
Employee Trustees elected by the Public Employers are allthafized to
act as agents and representatives of the Public Employers collectively.
ARTICLE IV. Powers of Trustees
SECTION 4, 1, General POWOts. The Twaloaa Shall have the POwef fO
conduct the business OI the Trust and to carry on its Operations. Such
power shall Include, but Shall not be limited 10, the power to.
(a) FOC me the Trust Property from the Public Employersor from
a Tr u5t%of any Employer Trust;
(b) enter into a Contract with an Investment Adviser providing,
among other things, tot the establishment one operation of the
Portfolios, selection of the Guaranteed Invesimenl Contracts .n
Which the Trust Property may be invested. OalZt.on OI other
inveatmonis for tno Trust Properly and trio payment of reasonable
ICOs 10 the Investment Adviser and 10 any ButrinvC{Intent etivl{er
I
elainod by the Investment Adviser;
(c) reviewannually the performance OI the Investment Adviser
and appy Ow
O annually the contract with such Investment Advisor;
(a) invest and reinvest the Trust Properly in thu PO,llohm trio
Guaranteed invostmonl Contracts and in any other mvasIOI0O1
tocommendod by the Investment Adviser, provided Thal d a
Public Employee has directed that its momes be invested in
apOC'tied Portfolios Or in a Guaranteed Investment CDnlfacl, the
Trust005 of the Retirement Trust Shall invest such monies In
accordance with Such directions.
(e) keep Such portion Of the Trust Properly in cash 01 cash
balanCes aS Ihe Trustees, from time to Ingle, may doom to be in the
DO BI interest of the ROlitomonl Trust Created hereby, without
,.ability lot interest thereon;
11) accept and retain tot Such time as they may doom advisable
any securities of Other property received or acgwred by Thom as
T rustoos hereunder. whether of no, such eacurnM$ Or other
property would normally be purchased as investments here.
under;
Ig) cause any securities or Other pf OPafiy ncid es DUI 01 the
T,ust Properly 10 be registered m Ino name of the Retirement
Trust of m Ino name OI a OOnlineo, and to hold any invonmanis m
poster form, but the books antl ,OCor ds Of the Trustees shall at ail
times Show that all such InvOSIMOnlS are a part Of the Trust
Ptopdrty.
(h) make, CxoCuie. acknowledge, and deliver any and all
documents of transfer and conveyance and any end fill other
instruments that maybe necessary Or appropriate to carry out 1"
powerS herein granted;
(p vole upon any stock, bonds, or other securities: give genelai
or special Colox ics or powers of attorney with at without power 01
Substitution; exercise any conversion privileges, subscription
rights, Or other options, and make any payments incidental
merolo: oppose, or consent to, or otherwise participate In.
corporate reorganizations OI other Changes allotting Corporate
securities. and delegate discretionary powers. and pay any
'51055 monis or Charges in connection IhorewCh: and generally
exercise any of the powers at an owner ..in respect to Stocks.
bond!, securities or other property hold as part of the Trust
Property:
(j) enter into contracts or arrangements for goods or Services
reguued in Connection with the operation of the Retirement
Tru51, inctudmg, but not limited to. contracts with custodians and
contracts for the provision 01 administrative somites:
(k) borrow or raise money for the purpose of the Retirement
Trust in such amount, and upon such terms and Conditions, as Inc
Trustees shall deem advisable, provided that the aggregate
amount Of ouch borrowings shell not exceed 30% of the value of
the Trust Property. No person landing money to the Trustees
shall Oe bound to ees Cho application of tiro money fent Or to
Inquire into its validity, expediency or propriety of any such
borrowing;
(1) incur reasonable expenses as required ler the Operation 0l trio
Retirement Trust and deduct such expenses from the Trust
Property:
(m) pay expenses property allocable to the Trust Properly
ncused In
connection with the Deferred Compensation Plans or
the Employer Trusts and deduct Such expenses from that Corti -
o1 the Trust Properly beneficially owned by the Public EMPIO
IO whom such expenses are property allocable.
(n) pay out OI me Trust Property all real and personal property
taxes. income taxed and other taxes of any one all kinds which. in
the opinion of the Trustees aro plOpOlty, lovlOd, or d5SCS50d
undo, existing Or fulwo laws upon, or in rC5pecI of, the Trust
Properly and allocatn any Such tai eS to Iho appropriate accounts.
(e) adopt. amend and ioptlal trio Dy-Laes.p,ovidedthat Such Di, -
Laws aro at all times consistent with the I01 ms Of this DOClaral.un
of Trust.
(p) employ persons 10MOkuavaltoblo Interests In the Retirement
T rust to OMp10y0r' ellg.Dle to ma.nla.n a duletl ed componsatlon
plan under section 457 of trio Iniuinal Revenue Coau. as
emended:
(q) Issue the Annual Ropofl of the Rolnomnnl Treat, and the
disclosure documents dna other literature used by the
Roloompnf Trust;
(t) mase loans, including the purchase of debt oODgalions,
provided that all such loons shall teal interest at the Current
Markel 11110
(s) contract for, end delegate any powers grantedheroundor to.
such officers, agents, employees, auditors and attorneys as the
Trustees may "loci, provided that the Trustoes may not delogele
the powers dol (Orth in paragraphs (b). (C) and (o) of this Section
4.1 and may not delegate any powers 11 such delegation would
violate their fiduciary duties,
111 provide for the in"mniicat ion of the officers and T rustoos of
the Retirement Trust and purchase fiduciary Insurance:
lu) maintain books and records, including%poor ate ACCOuntr
each Pudic Employer or Employer Trust and such edam{,
separate accounts @* are required under. and consistuni with, the
Dolerm0 Compensation Plan Of each Pubbc Employer, and
(v) do all such acts, take all such proceedings, and exercise all
Such rights aro privileges, although not specifically mentioned
herein, as the Trustees may doom necessary or appropriate to
administer the Trust Property and 10 carry Out rho purposes of the
Retirement Trust.
SECTION a 2. Distribution of Trust Property. Distributions of the
frust Properly shall be Mader IO.Or on behalf of, the Public Employs, m
accordance with the terms of the Deferred Compensation plans Or
Employer Trusts, The Trustees of the Retirement Trust shall be fully
prolacted in making payments in accordance with thedirectrons Of the
Public Employers Or the Trustees of the Employer Trusts without
ascenainmg whether such payments aro in COmphanCQ with the
provisions of the Deferred Compensation Plans or the agreements
creating the Employer Trusts.
SECTION 47 Execution Of Instruments, The Trustees may
unanimously designate any one or more of the Trustees to exacule any
instrument or docu Mani on behalf of all, including but not limited to the
signing or endorsement of any check and the signing of any
applications. insurance and other contracts, end the action of such
designated Trustee or Trustees shall have the same forte and affect es if
taken by all the Trustees.
ARTICLE V. gsaty of Cara and LIabSlly at Trmdsft
SECTION 5 1. Duty o: Gere. In exercising the powers hereinbefore
granted to the Trustees. the Trustees shall perform all acts within their
suthorlty for lid eaclus" purpose Of providing benefits star the Public
Employers, and shall perform such acts with the cars, pill, prudence
and diligence In the circumstances then prevailing that a prod ml porton
acting in a likscapaclty and familiar with such matters would use In tie
conduct of an enterprise of a like character and with Itse alms.
SECTION 52. Liability. The Trustees shall not be liable for any
mistake of judgment or Other action Wen in good laltn, and tar any
action taken or Omitted In reliance In good faith upon tie books of
account or other records of the Retirement Trust. upon the opinion Of
counsel, or upon reports made 10 the Retirement Trust by any of its
Officers. employees or agents or by the Investment Adviser or any suo-
nvastment adviser, accountants, appraisers or other experts or
consultants Selected with reasonable care by the Trustees. Officers or
employees of The Retirement Trust. The Trustees shall also not be liable
for any lose sustain Od by mo Trust Property by reason of any mvestmont
made in good faith and in accordance with the standard of caro sol forth
in Section 5.1.
SECTION 5 ], Bond. No Trustee shall be obligated to give any bond
or other security for the performance Of any of his Or her duties
hereunder,
ARTICLE VI. Annual Report to Shareholders
The Trusirns shall annually submit to the Public Employers a —11 -
report of the Iransactions Of the Relllenteril Trust. including financial
5lalemenls which Shall be Certified by independent public accountants
Chosen by the Trustees
ARTICLE VII. Duration or Amendment of Retirement Trust
SECTION 7.1. Withdrawal. A Public Employer may. at any time, with-
draw from this Retirement Trust by delivering to the Board of Trustees a
statement to Ihat affect. The withdrawing Public Employer's beneficial
interest in the Retirement Trust shall be paid out to the Public Employer
or to the Trustee of the Employer Trust, as appropriate,
SECTION 7.2. Duration, The Retirement Trust shall continue until
terminated by Ile vote of a majority Of the Public Employers. each
Casting one veto. Upon termination, all Of the Trust Property Shall be
paid out to the Public Employers or 1 he Trustees of the Employer Trusts.
as appropriate.
SECTION 7.9 Amendment. The Retirement Trust msy be amended
by the vote of a majority of the Public Employers. each casting one roto.
SECTION 7.4, Procedure. A resolution to terminate or amend the
Retirement Trust or to remove a Trustee shall be submitted to a voto of
the Pudic Employers if: (a) a majority Of the Trustees so iced, or (b) a
petition rsoueshng a vote. signed by not less than 25% of the Pudic
Employers. Is submitted to the Trustees
ARTICLE VIII, Miscellaneous
SECTIONS, 1. Governing Lew. Except as OlhorwiseroounOO by state
Of meal law, this Declaration of Trust and the Retirement Trust hereby
created shall be construed and regulated by the leas of the District of
COIumbe
SECTION B.2 Counterparts. This Declaration may be meeulod by
Ihn Public Employers and Trustma in Iwo or Morecounlerparls, cachet
Which shall d1 deurrted an original but pill 01 which together shall
Constitute one and the same msliumanl,
TRUST AGREEMENT WITH
THE ICMA RETIREMENT CORPORATION
AGREEMENT matte by and between the Employer named in the
attached resolution and the International City Management Association
Rehrem fit Corporation (hereinafter the -Trustee' or "Retintowt
Corporation" ), a nonprofit corporation Orpnisad andexisting under the
fawn of the Slate of Detawere, for the purpose, of irwestingaed otherwise
administering the funds tat aside by Employers In Connection with
deferred Compensation plans estaNishod under section 457 of the
Internet Revenue Coda of 1954 (the -Code"). This Agreement WWI take
affect upon acceptance by the Trustee of ifs appointment by the
Employer to Serve es Trustee in accordance herewith asset forth in the
attached resolution.
WHEREAS, the Employer has established •deterred compenaatbn plan
under section 457 of the Code (ins "Plan");
WHEREAS, to Order that there will be Sufficient funds available to
discharge the Employer's contractual obligations under the Plen, the
EmplOyer dese slfto set aside periodically amounts equal to the amount
of compensation deferred;
WHEREAS. the funds sat aside, together wlth any and all sxaats derivod
from the investment thereof. are to be exclusively within the dominion,
control, and Ownership of the Employer. and subject to the Employer's
absolute right of withdrawal, no employees having any interest
whatsoever Ihofem;
COW, THEREFORE. this Agreement witnesseth that (a) the Employer
will pay monies to the Trustee IO be placed in dolerred compensation
accounts for the Employer, to) the Trustee covenants that It will hold
said sums, and any Other funds which it may receive hereunder, in trust
tot the uses and purposes and upon the terms and conditions
hereinafter itmed. Ono (C) the Parties hereto agree as follows
ARTICLE 1. General Duties at the banks.
Section I I Oc neral Duty of the Employer. The Cmployar $fill make
rrgutar Periodic payments equal to the amounts of its empfOyOes'
compensation which ate Oafetfed in OCCOrdenCe with the terms and
centurions Of the Plan to the extent that sup#) emounts aretoba invested
under the Trust
Soctronl.2 Genera) Duties of the Trustee. The Trustee than hold all
funds received by 11 hereuntlat, which, together with the Income
therefrom, Shelf constitute the Trust Funds if shah administer HN Trust
Funds. Collect the income thereof. and make psymenis thelellomi, $toff
hereinafter frohrarld TheTrust" Shett also held all Trust Funds which
ore It an lorred to it as successor Trustee by Ihe EmpfOyM from estsllng
deterred Compensation arrangements with its Cmploy as under plans
Oestribad in section 457 of the Code Such Trust Fundis shall be subject
to at) of the terms and provisions of this Apr"mem
ARTICLE It. Powers and Dulles of the Trusts In InvesbaarhL
Administration, a" Disbursement of t» Trust ioid r.
Section 2 t Investment Powers and Dulles of Ihe Trustee The
Trustee shall have the power to invest and reinvest the principal and
Income of the Trust Funds and keep the Trust Funds invested, without
disiincthon between Principe) and Income, in securities or in other
properly, rest or personal, whatever thtuated,InCluding, but not limited
'4, stocks. common or preferred, bonds, felirement annuity and
nourance puIILIes, mortgages, and Other evidenbaof indebtednessor
ownership, investment Companies, Common or group trust funtls, of
separate and different types of tunas (Including equity, fixed income)
which fulfill te0uirams"ts Of state and local covernmanial laws,
APPENDIX C
provided. however, that the Employer may direct Investment by the
Trustee among available Investment alternatives in such proportions es
the Employer authorizes in connection with its datened Compensation
agreement$ with its employees. For masa purposes, these Trust Funds
may be commingled with Trust fund$ set aside by other Employers
pursuant 10 the terms of the ICMA Retirement Trust. Investment powers
vested In the Trustee by the Section may be delegated by the Trustee to
any bank, insurance or trust company, or any investment advisor,
manager or agent selected by ii,
Section 2.2. Administrative Powers of the Trustee. The Trustee snail
have the power in its discretion.
(a) To purpose, or subscribe for, any securities Or other
property and to retain the "me In trust.
(b) To sett, exchange. Convey. transfer or otherwise dispose of
any socufttles or other property field by 11, by private Contract, or
at public auction. No person denting with the Trustee shalt be
bound to See the application of the purchase monty or to inquire
Into the validity, expediency, or propriety of any such sale or
other disposition
(c) To vote upon any stocke. bonds. Cr other secuoties, to give
general Cr special proxies or powers of attorney wish at withuul
Power Of substitution, to exercise any COnvcision pllvilegr5.
subscription tights, or other options, and to make any payments
Incidental thertlO. W GFCOSe, or to Consent t]. cr o1ncrw;C7
Participate In. corporate reorganizations or other changes
affecting Corporate securities, and to dettegate p.serellonsry
powers, and to pay any assessments Or tnarges in connecuon
therewith, and genersiy to exM6s0 any 01 Ire pGweis of an
owner with r"peci to stocks, bond%, securities or other properly
field as 0411 of the Trust Funds
(d) To Cause any aecWdle$ or other property held as poll of the
Trust Funds to be registered in its own name, and to field any
Invetiments in bearer form, but the books and records of the
Trustee *#)sit at til time$ show that all Such investments ore it part
of the Trust Funds.
(a) TOttOrrower Niee rtronty tOf the pufpoae oftha Trustinsuch
amount, and Upon Such form$ end COnchllons. as 1 he Trustee sh$J
doom adviteelt; and, for any gum so bellowed, to fssue Its
promissory note as Trust@@, and t0 secure the (cpsymani thtrtci
by pledging all, or any part, Of IM Tr List Funty No psrson iondmg
money lathe Trust" Shall to bound to see int application of tits
money lent of to inquire Into Its voledity, expedienCy Or plopuely
of any such borrowing
(1) TO keep such portion 01 the Trust FunOa m Cash Or Cash
bafanc" of the Trustee, from rims to time, may doom to be in the
best interest of Inc Trust Created horsily, without liability for
tntof"t Insurer"
19) To accept and retain tot outtt lime as 11 may doom advigabo
any SKooh" Or other prOpMty tettered Of aceutued by if as
Trust" hereunder, whether W 1161 Such SOCUhhes UI Other
Property would normally be purchased es env"fermi hereunder
(h) TO make nxecule e(lnowlM9n and oeu:er any slid ail
Opurments of transfer amt t(rtrw}ante and any on" oil C'ou"
rash uments that may he net euaty (u any Pul ll n
powers 11Fiem %fent"
T
(I) To settle, compromise, or submit 10 Sabitralron any claims,
debts. Cr damages due or owing to or from the Trust Funds; to
Commence or defend surfs Or legator administrative proceedings;
and 10 represent the Trust Funds In all Sults and legal and
administrative proceedings.
(1) To 00 all Such SCIS. take all such proceedings. and axerceleall
such rights and privileges, although not specifically menlroned
herein. as the Trustee may doom necessary 10 administer the
Trust Funds and to carry Out the purposes of this Trust.
Section 2.3 Distributions from the Trust Funds. The Employer
hereby appoints the Trustee as Its agent for the purpose of making
oietnbulions from the Trust Funds. In this regard the terms and
conditions cot forth in the Plan are to guide and control the Trustees
Power.
Section 2.e. Valuation Of Trust Funds. At least once a year as of
Valuation Doles designated by the Trustoe. the Trustee Shall OOtormine
the value Of the Trial Funds. Assals Of the Trust Funds shall be valued at
their market values at the close of business on the Valuation Date. Or. in
the absence of readily ascertainable market values as the Trustee shall
determine, in accordance with mothoos consistently followed and
uniformly applied,
ARTICLE III. For Protection of Trustee.
Section 3.1. Evidence 01 Action by Employer. The Trustee may rely
upon any Certificate. notice or direction purporting to neve been signed
On behalf Of the Employer which the Trustee believes to have been
signed by S d my designated official of the Employer. No communication
shall be binding upon any of the Trust Funds of Trustee until they are
received by the Trustee.
Section 32. Advice of Counsel. The Trustee may consult win any
legal counsel with reSpeci to the construction of this Agreement, as
duties hereunder, or any act, which 11 OrOPOSOS 10taka Or omit, and Shan
not be liable for any action taken of omitted in good faith pursuant to
such advice.
Section 3 3. Miscellaneous. The Trustee Mall use ordinary Cato and
reasonable diligence, but shall not be Ilablo ton any mistake of judgment
Or other action taken in good faith The Trustee shallnot bo Ilablo tar any
loss sustained by the Trust Funds by reasons of any Investment made m
good faith and in accordance with the provisions of this Agreement,
The Truateo'a duties and obligations shall be limited to those
orptossly Imposed upon it by this Agreement.
ARTICLE IV. Taxes. Expenses and Compensation of Trustee.
SOclions, 1, Tes ss. The 7 rusted shall deduct from and charge against
the Trust funds any fetes on the Trust Funds Or the income thorsotor
which the Trustee IS requited to pay alth respect to the Interest of any
poison Margin
Section a 2. Expenses, The Trustee snag deduct from and Charge
aga nal the Trust Funds all reasonable expenses Incurred by the Trustee
In the administration Of the Trust Funds. Including counsel, agency.
Investment advisory, and other necessary foes,
ARTI CLE V. OalUenlent of AccounU. Tho Trustee Shull keep accurate
and detailed accounts OI all investments, recalpts, dlaEursomenls, and
ether transactions hereunder.
Within mnaty (00) days eller Iho Closa 01 osch fiscal year, Iho Trustee
Shall render in du PIICaie 10 the Employer an account of Its acts and
transactions ss Ttustoe herounder. II any pan of the Trust Funcishall ho
Invosted though tho medium of any common, COIIoci Iva of Commingled
Trust Funds, the Iasi annual report of such trust funds shall no
submlltod with and Incorporated In the account,
0 wdnin ninety (00) days allot the mailing of the account Or any
amended account the Employer has not Ultra within Trustee notice of
any objection to any act or transaction OI the Tiustare. the account or
amended account Shall become an aceounl slated It any Objection has
noun filed, ano If Ino Employer Is satisfied that II should be wdhdrawn On
II the account Is adjusted to the Employer's satisfaction, tib Employee
snall in writing filed with the T t ustoe slgnlly apPFMAI OI the account and
IF Shatl become an account statod
When an OCCOunt becomes an account slated. such account shall be I
finally settled, and the Trustee shall be completely discharged and
released. as If such account had been "Iliad and allowed by a Iudgm
Or decree Of a Court OI competent jut i3dic110n in an aCtlon or precood.
In which the Trustee and the Employer were parties,
The Trustee shall have the right to apply at any time to a court of
competent jurisdiction for the judicial settlement of Its account.
ARTICLE VI. Reslgnallon and Remove) of Trust".
Section 6.1. Resignation of Trustee, The Trustee may resign at any
time by filing with the Employer its written resignation. Such resignation
shall take effect sixty (60) days from the data of such filing and upon
appointment OI a successor pursuant to Section 6, 3.. whichever shall
first Occur.
Section 6,2. Removal of Trustee. The Employer may remove the
Trustee at any time by delivering to the Trustee a written notice of Its
removal and an appointment 01 a successor pursuant to Section 6 3
Such rommal shall not take effect prior to sixty (60) days from such
delivery unless the Trustee agrees to an earlier effective data.
Section 6 3. Appointment of Successor Trustee- The appointment of
a successor to the Trustee shall lake effect upon the delivery to the
Trustee of (a) an Instrument In writing executed by the Employer
appointing such successor, and eltonerating such successor from
liability for the eels and Omissions of Its predecessor. and (b) an
acceptance in witting, execulOd by such successor.
All OI the Provisions sol forin heroin wllh respect to the TfoSIM shall
relate IO each successor with Ino same Ioice and elleCl as if sucn
successor hoe boon originally named as Trustee hereunder
If a successor a not appointed with sixty 1601 Oays after the Trustee
ga'ea not.Co of its resignation pu/suant to Section 6 1 , the Trustee may
apply to any court of competent jurisdiction lot appolnlmom of a
auceessor.
Seotlon64 Transfer of Funds to Successor, upon the resignation
removal of the Trustee and appointment of a successor. and after 11.
final account of the Trialed has boon properly Set110d, the Trustee shall
transfer and deliver any of the Trust Funds Involved to such successor.
ARTICLE VII, Dwalbn and Revocation of Trust Agreement.
Smhon 7, 1. Duration and Revocation, This Trust shall Continuo lot
Snch time as may bo necessary 10 OCCOmPIIsh the purpose for which it
was created but may be terminated or revoked at any time by the
Employer gall relates loony and/or all relatod paltictpBhng Eniployaos
Wilt len notice of such Iorminolion of royMation shall be given to the
Trustee by the Employer. Upon termination of 'avocation of the Trust.
allOI mit 896016 thereof Shall return to and revert 10 the Employer.
Tar mina:ion 01 this Trull Shall not, howftot, rellove the Employer of the
Employer's continuing obligation to pay detailed compensation to
Emplovaos in alcu'danca with the forms of Ina Plan
Sochon7,2. Amendment, The Employer Shall have the fight to amend
this Agreement In whole and In part but only with the Trustees written
consent, Any such amendmdnl shall become ollecllve upon (&)delivery
10 the T'ua100 Of a whiten Instfurr1enl OI amendment, and (b) the
endorsement by the Trustee on Sucn Inatnlrnenl OI Its consent thereto
ARTICLE Vlll. lifacenanaous.
Section 6.1, Laws OI the District Of COlumbla 10 Govern This
Agroemont and the Trust hereby Created Snail be Construed and
fOgulatod by mit laws of the District of Columbia.
SaGhon 6.2 Sul.Cosaol Employers. The "EmplOyor" shrill Include any
person who SUCCeods the Employer and whD Iharaby becomos subject
IO the ObhgntlOna Of the Employer under the Plan,
Section 6 3, Wdhdlawats, The Employer may, at any time. and from
time 10 time, withdraw a portion or allot Trust Funds erO81Q0 by this
Section 84 Gondar and Number. The masculine inCluans Ili, J
famin inn and the singular Includes inn plural unless the COnloxl requires
&,other meaning
® SAFECO
GENERAL RULES FOR SMECO �AaURANCE COMPANY
GOVERNMENTAL DEFERRED E wAsirag7oN salsa
SAFE= COMPENSATION PLANS
ELIGIBLE:
STATE AND LOCAL GOVERNMENTS (including a political subdlvislon, agency or Instrumentalitythereof), ora
rural eloctrical cooperative that Is tax exempt under Cade Sec. 601kl2►, or Code Sec. 501(c)(8).
STATE. & LOCAL GOVERNMENTAL BODIES (Those NOT eligible for TSAW
Employees can defer annually up to 33-1/3% of Includable Compensation 125% of Gross Income) or $7.500.
whichever is lass. The Plan must comply with all regulations by January 1, 1882, but will be considered Qualified If
it is administered under these rules In the interim.
The plan must provide that compensation will be deferred for any month after the agreement to defer (Salary
Reduction Agreement) has been signed. The compensation that Is deferred. plus all earnings will remain the
Property of the Employer (State, City, ate.) until available for payout at the occasion of separation from service,
Retirement Death, Disability, or Urdorsoeable Emergency Ins determined by Treasury Rags.).
Special Catch Up Rules _ People close to retirement may use Ngher deduction limits for the loot three years
before retirement age. Thew aro the Leaser at: x15,000, or the 4" *9 cMUng for the current year plus any
unused coiling from previous "airs. This calculation has to be dons for each year sspsratNy.
Employees who participate In more then one -plan are subject to an oversE 25% or $7,600 amh. Independent
contractors who perform senka for the auto or local governnent ani conNdued to have Eligible Camperaatbn
from that govemment.
STATE IN LOCAL OOWFINMBNTAL BOOtBs (who ALSO pudYy for TSA'd
Must maet'ell the above rettulrerrto PLUS the TBA plan w00 be eamedatid a pert of the $7,800 or 25% of
compensation. This eRoahvety puts • calling an TSA'e n gra" peRkbete in bath TSA and Deferred Wmperstatlon
Plans. Also. In calculating the TSA !>a uW*n Qloxiv oe, you must Itneltrde . , defemd in prior yenta ll
the person panicipetes only in the TSA. only the TSA Aida cola sp*.
PRIVATE TAX-EXEMPT CORPORATIONS Mica not eligible for TSA'q F- .,
The 1878 Revenue Act does not epecHically Include or exclude them In the aalen of the Act that deals with state
or local plans; however. It dose specifically Exclude than from the action dealing with private Deferred
Compensation Plans. Therefore. such plans may eventually be eligible, and It Is our opinion that thesecW00180au
should not onampl to set up Deferred Compensation Plane urgll regulations ars publlshed.
ADMINISTRATION OF GOVERNMENTAL DEFERRED COMPENSATION PLANE
Governmental Plana are M. at this time, subject to the reponing and disclosure requirements M ERISA However.
they must fila a completed 85000 with IRS annually by the and of the seventh month after the close of the PISA
year. SAFECO will not be responsible for the filing of this form. We will. hovar. provide the InformeUon
necessary to complete the 55000 and furnish the 10sBR or W21F ra" form for dlsvibudons made from the plan.
SAFECO Life Insurance Company will offer Ousllfied Pension Annultiea for use In State and .Local Defervad
Compensation Plane. This product is Ideal for these plena alma it wil eutonytice8p e0ocate the Correel earnings to
each Individual participating In the plan.
ba•ea of Will
I
ESTASUSHM THE PLAN
t. TTM EmployM must draft a plan, stetltp the protblorte as required by low. A "Specimen Deferred Conpenes-
tlori' vlem gPII-Olt Is prorldad to anlas the as legal counsel In establishing the aheris required by
1". Sines SAFECO Is not adnWdapAnp the pten, tae do not require a copy of that plan. We are providing an
It wo nertt Y*hW* for the Ent~.
2. TTa Employer must sign the appropAsn Qualified Paneion Annuity application Senles•3 ILPC-27) Serles-4
(L.PC-301.
3. 714e Employer should "announce" pus plan to the employees In writing.
a. TV" Employer shuuld eontiltse Vale Tremrntrsl Form LP -355 to nc::ty SAFcCO ss to billing modes. authorited
positions and their algnituaes.
AWNISTAATION OF THE PLAN
Dud" of plan """Wow SAFECO's Services and Fes
1. Duvet Participant to - Il an LF -M author•
fatten and forward thraa copies to SAFECO. One
otspir will be returned to the Fa kilpsi t with the
f1PA Certificate. This form can be used a the
Eregbyer as the Salary Reduction ASeanant• and
In that woo the Employer tees the lsst copy of this
form. In many cases the Erruployor will want a
onsarate Salary Reduction AWs~ and form
L110843 Is pec 1- d as a Oil -1 11 fer raysew with
their legal counsel. M the aapaca form Is used.
S^FECO does not tela a copy of IL
2. TV" Administrator will forward payroll eduhlon
arreunte to SAFE00.
1. The Administration fee is /15 ped participant at
Issuance and $15 each annhsraary thereafter.
SAFECO will establish on Individual account for
each puuclam that will provide the Employer
with the eget Information as to deposits. with-
drawals, Interest earned to date and total account
Value. In sWilion. we will provide the Employer
with monthly bllnnge. If awed.
2. SAFECO Will allocate the deposits to panrclpant's
aCesunts and Provide Confirmation of each trans.
action.
3. DisbNuts Summery wan Description 9 by 3. SAFECO will assist the Employer to prepare the
the Employer. Summery Plan Description.
e. In &der to chance benalklariea or IddrN& the 4. SAFECO will change the records to slow the new
pankiant should sign a now LP4U Indlestlrtg beneficiary or address.
Me thongs.
S. Fear a change of contribution the enplefet need not
IUs a now dowi enw with SAFEQ). The Adminis•
Ireta should change the •mount OR the Current
billlM,
g. Fila a eorrolated GACOO with W amually,
7. Request Oisulbutlom.
g, SAFECO will Charge the subsequent bdiings
8, SAFECO wnu supply the Information necessary to
Complete the 65000,
7. SAFECO will process distribution and lutmsh the
1099A or W2P report form for any dtsvtbutions
made from the plan.
Council Agenda - 3/11/85
8. Acknowledgement of Receipt of the Reimbursement Check from the
Sherburne Wright Counties Cable Communications Commission. (T.E.)
A. REFERENCE AND BACKGROUND:
Just under two years ago, the Sherburne Wright Counties Cable
Communications Commission (SWC4) was formally established.
Upon that establishment, every city in the Commission contributed
a proportionate share of monies to the Commission in order to
conduct the franchising process. In addition, City staff time
was put into Commission operations and functions. At the time
the Commission was initiated, each City was guaranteed that
it would receive a reimbursement covering the investment they
made to the Commission. With the franchising process fully
complete and construction well underway, the SWC4 is pleased
to present the Monticello City Council with reimbursement in
the amount of 54,061.39. This sum covers our original $2,000.00
investment as well as all staff expense including travel, meals,
and hourly rates for myself and for one secretary. The staff
time put in on this matter was logged and paid back at full
time hourly rate for the actual hours spent.
Ordinarily, receipt of various revenue sources is not a Council
meeting matter. The members of the SWC4, however, do wish to
make public acknowledgement that Rite Cable Company has paid
in full and without any challenge to the foes requested. Further,
the Commiasion wiahos to reaffirm for the public that there
were no public dollars spent in the franchising process to secure
cable. We noted over two years ago that we fully intended to
recover all associated foes, and we have.
Thera is no alternative action, no staff recommendation, nor
supporting data on this item.
-7-
Council Agenda - 3/11/85
9. Consideration of Setting a Date for the 1985 Board of Review. (T.E.)
A. REFERENCE AND BACKGROUND:
At the beginning of this week, I received the notice of the
1985 Board of Review meeting. The Monticello City Board of
Review has been set for Thursday. May 23, 1985, at 7:00 P.M.
If this date is unacceptable, I must notify the Wright County
Assessor so that a new date may be established. If this time
and date is acceptable, a simple motion setting the Board of
Review for that time will be sufficient.
The only alternative actions are to accept the proposed date
or to agree upon an alternate date. If an alternate date is
selected, I will contact the Assessor for confirmation. There
is no staff recommendation.
D. SUPPORTING DATA:
Copy of the meeting notice.
-e-
OFFICE OF COUN7Y ASSESSOR i
WRIGHT COUNTY COURTHOUSE STEPHEN C. BEHRENBRINKER,CAE, SAMA
BUFFALO, MINNESOTA 55313 COUNTY ASSAr
Telephone: 682.39W (Ext. 100) Orland Kreftlow, Asst. County Aaessor 1
Metro: 3394881 James Everett, Appraiser
Scott Vamer, Appraiser
February 28, 1985
TO: Tom Eidem, Monticello City Administrator
FROM: Muriel Zambusch, Acting Wright County Assessor
RE: MEETING NOTICE — 1985 Board of Review
Your 1985 Board of Review has been set for
at 7,o,::) '00'"
If this date does not meet with your approval. please call our
office within five (5) days.
Sincerely.
Muriel Zumbuath
MZ: Acting
WRIGHT COUNTY ASSESSOR
Council Agenda - 3/11/85
10. Consideration of Setting a Public Hearing for Establishing Tax
Increment Finance District. (A.P.)
A. REFERENCE AND BACKGROUND:
Staff has been working with Construction 5 in trying to help
them replat and develop their property near Lauring Lane and
Washington Street. As you know, their replat has been approved
and will allow them to better utilize the property.
The property in question is a sandpit and will require substantial
improvements in order to construct a street with curb and city
water/sewer services. The costs are approximately $390,000.00,
of which $150,000.00 may be assessable, with the balance of
$240,000.00 the City's responsibility.
As long as these improvements were close to the Doran and Malone
properties, staff has planned to stub sewer and water near their
properties. When talking costs of improving this area, neither
Construction 5, Doran, or Malone would want to Improve it.
In Construction 5's case, it would be too costly, and their
projects would not justify it.
With the help of tax increment financing, the City can help
defray a portion of the improvements to all concerned. Our
intent is not to give anything away, but rather help those who
benefit from the improvement to afford them.
This item is not to consider the Tax Increment Financing Plan,
but rather to sot a date for the public hearing. Following
the public hearing, you will be asked to approve or disapprove
said Tax Increment Plan. The Housing and Redevelopment Authority
has mat prior to this meeting to approve/dioapprovo the Plan
and request you to cat the public hearing.
B. ALTERNATIVE ACTIONS:
1. Sot a date for a public hearing.
2. Do not cot a data for a public hearing.
C. STAFF RECOMMENDATION:
Assuming that the HRA approval the TIP Plan and requests you
to not a date for the public hearing, we recommond you act it for
the March 25, 1985, mooting. This will allow us time for publication
In the Monticello Times.
D. SUPPORTING DATA:
f' Copy of the resolution requesting Council to cot a public hearing
l will be distributed prior to the mooting Monday night.
-9-
TO: Mayor 6 Council
FROM: TO.-T71s—
RE: Agenda
One clarification to the agenda is required and one addition
has been requested.
1. Concerning the two 3.2 beer licenses - The Lions are requesting
both licenses. Ducks Unlimited, as an organization, does
not request the license. Rather, the Lions are requesting
the beer and set-up licenses so that they may dispense the
beverages at the Ducks Unlimited dinner.
2. Mark Irmiter has requested a couple of minutes to address
the Council on the proposed legislation to allow sale of
wine in grocery stores. He requested that I distribute
the attached mdterial which he received to each of you.
I informed Mark that while I do not concur with the position
stated in the attached materials, I had not planned to actively
participate in lobbying for or against this bill. I told
Mark that I would write a letter to our legislators only
if given a directive by the City Council to relay the City's
official position on this issue. The bill is of little
concern to me as an administrator. I will present to the
legislature whatever position the City takes.
a
MINNI SO TA
SOM4 1pf"04"&44
IMC0e0,0•AteD
An orewntratlon oomg, of " mini1PDw,-op@rsWd OhawMwriew & Minro
March 18. 1985
Dear Mayor A Key City Officials,
The Mine -In -Grocery Store issue is getting very serious. Incredible
as it may seem, the Minnesota Grocers Association has sent a letter directly
to all you Mayors seeking their supportl This act is the height of
unmitigated gall and conceit! They have told you Mayors that you cities
don't really understand the issue unitl you have heard all the facts from
the Minnesota Grocers Association and therefore you were improper in
sending letters of protest to your Senators and Representatives, especially
prior to the bill actually being introduced. Let us get the facts straight.
1. The bill has been introduced in both Houses;
a. Senate File 579 (Authors: Megscheid, Luther. Anderson 6 Merriam)
b. House File bOb (Authors: Bennett. Thorson, Jacobs, Forsythe 6
Waltman )
2. Not a single clause in the bill was unanticipated in the initial
outline analysis we sent you in Februa ryl in fact. the bill is
virtually identical to the Mine- In -Grocery bill we defeated three
years ago. Al of us know these issues only too well.
a. The bill would grant wine licenses to grocery stores for the
nominal sum of i 100.00.
b. A single ggrocery thein could have an unlimited number of
licenses in the same community, though a private liquor licensee
could only have one liquor store.
c. A grocer could have a wine 1 icense directly across the street
from a church or school.
3. The grocers boasted in their letter to you the Mayor the following:
a. The quality of life in Minnesota requires more convenience for
consumers to obtain the everyday necessities of life and that
they have a significant investment in resources in your
community to achieve this goal. They say that wine ought to be
in grocery stores because they conducted a study of grocery
store shoppers that said so- Their question was a simple one
that never addressed the oh—so-serious consequences of dramatic
increases in wine tontumptionl
b. They say Municipal Liquor Stores should keep quiet. in effect,
because Local Option will protect us. Liquor policy issues are
far too important to be decided at the local. oh -so -political.
level. Our only such experience is Sunday Liquor, which has
been a disastrous failure for local control . As some cities
are discovering, find out how good the local control when a
grocer is Mayor. or sets on the Council? Mine r.vatlability
should no more be settled on the local level than minimum
iaooi aoomioh Read • ebo-meto n, saw 55431.612.835.2035
- z -
drinking ages or D.W.T. laws.
c. Grocers boast that they believe in Fair Competition that
can result in much lower prices to wine buyers. Yet the
entire principal behind Municioal Liquor Stores is the
subrogation of competition and give-away pricing in favor
of CONTROL.
d. The grocers boast that they are being VERY FAiR because they
will give us the right to sell food. We have never, never,
never asked for the right to sell food. We want to remain
exclusive liqucr stores. We only wish grocers would be willing
to remain exclusive food stores. We have enormous investments
ourselves in plant and equipment. It is grossly unfair to
change the rules this late in the game. Afterall, any grocer
can go into the exclusive liquor store business right now. All
he must do is make the same huge investment we all made in the
separate facilities of an exclusive liquor store.
e. Grocers suggest enforcement of liquor laws would be the same
as now, yet fail to address the impact of a 300-400% increase
in licenses while the Liquor Control Division has no budoet
increase -- it already being greatly understaffed.
f. They boldly assert that no evidence exists that wine -in -grocery
stores causes any problems for society. They surely have not
done their homework, or such a statement could never be made!
g. Finally they project big increases in the sale of cheese.
While wine -in -grocery stores may sell more cheese, our
analysis clearly shows that cheese in liquor stores sells very,
very little cheese.
Minnesota has the best set of liquor laws in the nation. There is
no need for change. At a time when even we supposedly "non-
competitive" Municipal Liquor Stores, are clinging to the narrowest
profit margins in our history, we need no intrusion on one of
our three "exclusive" products --- wine.
So far only 41 Cities have sent letters ;o their Senators and
Representives protesting Wine -In -Grocery Storesl The bill will
be heard in Committee in a little over two weeks. THE REMAINDER OF
YOU MUST AiR YOUR FEELINGS 1N A LETTER IMMEDIATELY. If your City's
name is not on the enclosed list it could be due to the following:
You don't take the threat seriously. Alter your views.
You sent a letter, but forgot to copy in the Association Office.
Send us a copy imnediatel,y. if no copy is available, call us
and let us know the details.
The Council doesn't want to take a stand. Change their minds,
this is a virginity issue) We need letters from the Council,
and/or the Mayor or City Clerk or liquor store manager. Take
action today, or it could be too late (See attachments).
With Deep Concern.
Arville Thompson, president
City of Detroit Lakes
WINE -IN -GROCERY STORES ---- FACT SHEET
1. MINNESOTA'S EXCLUSIVE LiQUOR STORES ARE DOING AN EXCELLENT JOB OF MARKETING
WINE RESPONSIBLY:
A. Extremely Broad Selection --- Competitive Pricing --- Warm Atmosphere ---
Attractive Wine Department Fixturing --- Large Percentage of Overall Floor
Space Devoted to Wine.
B. Helpful, Professionally Trained Sales Assistance;
C. A High Percentage of Store Personnel are Women which accounts for a
typical Customer Count of Over 60% Women; and
D. Exclusive Liquor Stores DO NOT WANT TO GO INTO THE CHEESE OR GROCERY BUSINESS.
2. WINE (like beer spirits 6 cordials) iS AN ALCOHOLIC BEVERAGE THAT MUST BE TAXED.
CONTROLLED 8 4EGULATED LIKE AN ALCaHOLiC BEVERAGE.
A. The issue is not whether wine is a food but whether wine is an alcoholic
beverage;
1) Wine has no more food value than beer or spirits or cordials;
2) Medically, all beverage alcohol is viewed as providing only "empty
calories";
3) Beverage alcohol is not a substitute. nor efficient source of food;
B. Wine is taxed, both federally and locally as beverage alcohol, not food; and
C. Wine sales are controlled by the Alcohol Control Boards in all 50 states.
3. LIQUOR CONTROL POLICIES ARE BEST DETERMINED AT A STATE—WIDE LEVEL:
A. State government is far better prepared than local city councils to gather
and evaluate all the facts necessary to consider the consequences of
liquor control policy:
B. So -Called "local option• does not work;
1) Local option has failed in Sunday opening;
2 Local option has become "local blackmail in 10:00 P.M. Friday Closings;
3 Local option does not work in competitive community and suburban
situations;
4 Wine is not the proper weapon for contiguous border wars;
5 Local option has been a hideous failure in Chicago;
6) Wine alcohol control policy is not a fitting subject for intense
political pressure on local governments where many a councilmember tan
be a grocer. liquor dealer etc.
4. GROCERY WiNE SALES ARE INHERENTLY MORE DIFFICULT TO CONTROL THAN EXCLUSIVE LiQUOR
STORE WINE SALES.
A. 'Package liquor stores are almost always, one -owner -operated businesses
where the force of the liquor control commissions can be overwhelming;
B. Grocery stores are often highly organized as large chains where the
threat of closing a single store for illegal wines sales has a mimimal
threat on overall operations
C. Grocers are structured with strong ties between Producers. Wholesalers.
and Retailers --- many of which relationships are illegal in the carefully
controlled Three -Tier System of liquor control;
D. Minnesota's Liquor Control Commission locks the budget and manpower to
handle a potential 300% increase is outlets for wine -- especially for
outlets not experienced with the special problems of selling alcoholic
beverages.
5. EXTENDING THE WINE SELLING PRIVILEDGE TO MINNESOTA GROCERY STORES COULD HAVE
SEVERE CONSEQUENCES ON MINNESOTA CITIZENS:
4. When grocery stores are allowed to sell wine, shocking wine consumption
increases occur overnight. These increases range from a low of 41% to a
high of 718% with an average of over 300% in studies conducted in
seven states;
3. Wine consumption increases are uniquely dangerous;
1) States dominated by wine consumption preferences have the highest
rates of overall alcohol consumption in the United States;
2) States dominated by wine consumption preference have the highest rates
of Liver Cirrhosis in the United States;
3) When the percentage of the alcohol consuming population broadens, the
Proportions of alcoholics and abusive drinkers broaden accordingly;
4) Foreign countries where wine is treated like a mere food, like France
and Italy, have the highest rates of alcoholism and liver cirrhosis
in the world;
5) Studies clearly show that when beer or spirits are the dominant
alcoholic beverage within a state, rates of alcoholism and liver
cirrhosis are surprisingly low.
6) High correlations exhist in many rine-in-grocery states between
increased wine sales and Property Damage, Injury Producing Accidents, b
Felony Drunk Driving Arrests;
C. Grocery stores have a poor record of underage sales to minors. Studies
from coast to coast reveal that grocers range from 50% to 900% more likely
to make underage beverage alcohol sales than exclusive liquor dealers:
D. Many wine -in -grocery stores states rank as the worst states on the Alcoho'
Problems index which calculates per capita consumption, alcoholism,
alcohol-related crimes, alcohol deaths, public drunkenness and drunk driving.
6. LARGE INCREASES IN WINE CUTLET AVAILABILITY iN MINNESOTA WOULD SET IN MOTION A
PROCESS THAT WOULD LEAD TO THE DESTRUCTION OF MINNESOTA'S EXCLUSIVE PACKAGE
LIQUOR STORE INDUSTRY AND HARM CONSUMERS.
A. One study shows a 25% gross sales drop to package liquor stores when wine
was Introduced into grocery stores;
B. Where grocery stores can sell wine, wine Industry studies show that grocers
average nearly 70% of all wine sales in the marketplace;
C. Municipal liquor stores (unique to Minnesota in any real numbers) would be
harmed, both reducing tax revenues and control.
D. Consumers would be harmed since grocery stores rarely carry boutique wines,
resulting in liquor stores being stuck with slower moving, imported wines
which means much higher prices. Exclusive liquor stores would also
sharply reduce wine selection. One study projects a first year minimum
decrease of 30% of facings and a minimum price increase of 20%.
7. DANGERS BEYOND THE FIRST YEAR OF WiNE IN GROCERY STORES,:
A. Wine sales could be extended to Gas Station Superettes;
B. Grocery stores could easily push for strong beer as well;
C. Only four states with wine -in -grocery stores have resisted the pressure to
put Spirits in grocery stores
0. The grocery industry preference for Price Advertising would erode the
last bastion of control.