ICMA-RC/401 Retirement Plan 07ADMINISTRATIVE SERVICES AGREEMENT
Between
ICMA Retirement Corporation
and
City of La Quinta
Type: 401
Account #: 106363
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
PLAN NUMBER 10- 6363
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
401(a) (the "Plan") in the form of the ICMA RC Governmen-
tal Money Purchase Plan and Trust. [9061
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
Yes % No
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and
restates:
I. Employer: City of La Quiata [902]
IL The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan,
unless an alternate Effective Date is hereby specified: _,Tiny 1 _ 2007
M. Plan Year will mean:
( ) The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03(g) of
the Plan.)
( * The twelve (12) consecutive month period commencing on 7 11 /07 and each anniversary thereof.
IV. Normal Retirement Age shall be age _ (not to exceed age 65). [2881
v. ELIGIBIIdTY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
% All Employees
All Full -Time Employees
Salaried Employees
Non -union Employees
Management Employees
Public Safety Employees
T General Employees
Other (specify below)
The group specified must correspond to a group of the same designation that Is defined in the statutes,
ordinances, rules, regulations, personnel manuals or other material in effect in the state or locality of the
Employer.
WP Adoption Agreement 1/30/2006
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for
participation. The required Period of Service shall be .g/A (write N/A if an Employee is eligible to
participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment
Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement
is 18- (not to exceed age 21. Write N/A if no minimum age is declared.)
VI. CON1RlBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one):
( TFhted Employer Contributions With Or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Participant % of Earnings or $ for the Plan
Year (subject to the limitations of Article V of the Plan). A Participant is required to contribute (subject to the
limitations of Article V of the Plan)
(i) % of Earnings,
$ 10-(10. or
(III a whole percentage of Earnings, as designated by the Employee In accordance with guidelines and
procedures established by the Employer
for the Plan Year as a condition of participation in the Plan. (Write "0" If no contribution is required.) If
Participant Contributions are required under this option, a Participant shall not have the right to discontinue
or vary the rate of such contributions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution.
Yes % No [621]
[Note to Employer: Neither an IRS advisory letter nor a determination letter issued to an adopting Employer
is a Wiling by the Internal Revenue Service that Participant contributions that are picked up by the Employer
are not includable in the Participants gross Income for federal income tax purposes. The Employer may seek
such a ruling.
Picked up contributions are excludable from the Participants gross income under section 414 (h) (2) of the
Internal Revenue Code of 1986 only if they meet the requirements of Rev. Ruis. 81-35 and 81-36, 1981-1
C.B. 255, and 87-10, 1987-1 C.B. 136. Those requirements are (1) that the Employer must specify that the
contributions, although designated as employee contributions, are being paid by the Employer in lieu of
contributions by the employee; (2) the employee must not have the option of receiving the contributed
amounts directly instead of having them paid by the Employer to the plan; and (3) the required specification
of designated employee contributions must be completed before the period to which such contributions
relate.]
( ) Find Employes Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _% of Earnings for the Plan Year (subject to
the limitations of Article V of the Plan) for each Plan Year that such Participant has contributed _Y of
Earnings or $_ Under this option, there is a single, fixed rate of Employer contributions, but a Partici-
pant may decline to make the required Participant contributions in any Plan Year, in which case no Employer
contribution will be made on the Participants behalf in that Plan Year.
MPP Adoption Agreement 1/30/2006
( ) Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the
limitations of Article V of the Plan):
_% of the contributions made by the Participant for the Plan Year (not including Participant contributions
exceeding _% of Earnings or $_�;
PLUS _% of the contributions made by the Participant for the Plan Year in excess of those included in the above
paragraph (but not including Participant contributions exceeding in the aggregate _% of Earnings or $�.
Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or _% of Earnings,
whichever Is _ more or _ less.
2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05
and Article V of the Plan.
Yes _ No
3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the
following payment schedule:
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime % Yes _ No
(b) Bonuses % Yes _ No
VIII. 11MITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a partici-
pant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as provided
herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the
provisions of Section 5.02(a) through (f) of the Plan will apply unless another method has been indicated below.
( ) Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum
Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer
discretion.)
2. The limitation year is the following 12-consecutive month period:
MPP Adoption Agreement 1/30/2006
DL VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as
noted and (2) the concurrence of the Plan Administrator.
Years of
Service Percent
ast (234-239]
Completed V
Zero
0 %
One
_ %
TWO
_ %
Three
_ %
Four
_ %
Five
_ %
Six
_ %
Seven
_ %
Eight
_ %
Nine
_ %
Ten
_ %
X. Loans are permitted under the Plan, as provided in Article XIII:
Yes
No
XI. The Employer hereby attests that It is a unit of state or local government or an agency or Instrumentality of
one or more units of state or local government.
XII. The Plan Administrator hereby agrees to Inform the Employer of any amendments to the Plan made pursuant
to Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan.
XIII. The Employer hereby appoints the ICMA-RC as the Plan Administrator pursuant to the terms and condi-
tions of the ICMA-RC GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement
may result in disqualification of the Plan.
XV. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that
the Plan is qualified under section 401 of the Internal Revenue Code.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 12thday of
rune , 200-7—.
EMPL R ICMA RC y
,.
By: By:
Corporate Secretary
[7511
MPP Adoption Agreement 1/30/2006
Plan number 106363
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement ("Agreement"), made as of th day
of .6ae ; 2007 (herein referred to as the "Inception Date"), between the International
City/County Management Association Retirement Corporation ("ICMA-RC"), a
nonprofit corporation organized and existing under the laws of the State of Delaware, and
the City of La Quinta ("Employer"), a City organized and existing under the laws of the
State of California with an office at 78495 Calle Tampico, La Quinta, California 92253.
RECITALS
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees participating
in that Plan;
VantageTrust (the "Trust") is a common law trust governed by an elected Board
of Trustees for the commingled investment of retirement funds held by various state and
local governmental units for their employees;
ICMA-RC acts as investment adviser to the Trust; ICMA-RC has designed, and
the Trust offers, a series of separate funds (the "Funds") for the investment of plan assets
as referenced in the Trust's principal disclosure document, "Making Sound Investment
Decisions: A Retirement Investment Guide." ("Retirement Investment Guide").
The Funds are available only to public employers and only through the Trust and
ICMA-RC.
In addition to serving as investment adviser to the Trust, ICMA-RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record -keeping, investment and tax reporting,
transaction processing, benefit disbursement, and asset management.
AGREEMENTS
Awointment of ICMA-RC
Employer hereby appoints ICMA-RC as Administrator of the Plan to perform all
nondiscretionary functions necessary for the administration of the Plan with respect to
assets in the Plan deposited with the Trust. The functions to be performed by ICMA-RC
shall be those set forth in Exhibit A to this Agreement.
Plan number 106363
2. Adoption of Trust
Employer has adopted the Declaration of Trust of VantageTrust and agrees to the
commingled investment of assets of the Plan within the Trust. Employer agrees that
operation of the Plan and the investment, management, and distribution of amounts
deposited in the Trust shall be subject to the Declaration of Trust, as it may be amended
from time to time and shall also be subject to terms and conditions set forth in disclosure
documents (such as the Retirement Investment Guide or Employer Bulletins) as those
terms and conditions may be adjusted from time to time. It is understood that the term
"Employer Trust" as it is used in the Declaration of Trust shall mean this Administrative
Services Agreement.
3. Emplover Dutv to Furnish Information
Employer agrees to furnish to ICMA-RC on a timely basis such information as is
necessary for ICMA-RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in the
Trust, and information as to the employment status of participants, and participant ages,
addresses, and other identifying information (including tax identification numbers).
ICMA-RC shall be entitled to rely upon the accuracy of any information that is furnished
to it by a responsible official of the Employer or any information relating to an individual
participant or beneficiary that is furnished by such participant or beneficiary, and ICMA-
RC shall not be responsible for any error arising from its reliance on such information.
ICMA-RC will provide account information in reports, statements or accountings.
4. Certain Representations and Warranties
ICMA-RC represents and warrants to Employer that
(a) ICMA-RC is a non-profit corporation with full power and authority to
enter into this Agreement and to perform its obligations under this
Agreement. The ability of ICMA-RC to serve as investment adviser to the
Trust is dependent upon the continued willingness of the Trust for ICMA-
RC to serve in that capacity.
(b) ICMA-RC is an investment adviser registered as such with the U.S.
Securities and Exchange Commission under the Investment Advisers Act
of 1940, as amended. ICMA-RC Services, LLC (a wholly owned
subsidiary of ICMA-RC) is registered as a broker -dealer with the U.S.
Securities and Exchange Commission ("SEC") and is a member in good
standing with the National Association of Securities Dealers ("NASD")
and the Securities Investor Protection Corporation ("SIPC").
(c) ICMA-RC shall maintain and administer the Plan in compliance with the
requirements for plans which satisfy the qualification requirements of
Section 401 of the Internal Revenue Code and other applicable federal
Plan number 106363
law; provided, however, ICMA-RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs ICMA-
RC to administer the Plan or disburse assets in a manner inconsistent with
the requirements of Section 401 or otherwise causes the Plan not to be
carried out in accordance with its terms; provided, further, that if the plan
document used by the Employer contains terms that differ from the terms
of ICMA-RC's standardized plan document, ICMA-RC shall not be
responsible for the qualified status of the Plan to the extent affected by the
differing terms in the Employer's plan document.
Employer represents and warrants to ICMA-RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into
and perform its obligations under this Agreement and to act for the Plan
and participants in the manner contemplated in this Agreement. Execution,
delivery, and performance of this Agreement will not conflict with any
law, rule, regulation or contract by which the Employer is bound or to
which it is a party.
(e) Employer understands and agrees that ICMA-RC's sole function under
this Agreement is to act as recordkeeper and to provide administrative,
investment or other services at the direction of Plan participants, the
Employer, its agents or designees in accordance with the terms of this
Agreement. Under the terms of this Agreement, ICMA-RC does not
render investment advice, is not the Plan Administrator or Plan Sponsor as
those terms are defined under applicable federal, state, or local law, and
does not provide legal, tax or accounting advice with respect to the
creation, adoption or operation of the Plan and the Trust.
(f) Employer acknowledges that certain such services to be performed by
ICMA-RC under this Agreement may be performed by an affiliate or
agent of ICMA-RC pursuant to one or more other contractual
arrangements or relationships, and that ICMA-RC reserves the right to
change vendors with which it has contracted to provide services in
connection with this Agreement without prior notice to Employer.
5. Participation in Certain Proceedings
The Employer hereby authorizes ICMA-RC to act as agent, to appear on its behalf, and to
join the Employer as a necessary party in all legal proceedings involving the garnishment
of benefits or the transfer of benefits pursuant to the divorce or separation of participants
in the Employer Plan. Unless Employer notifies ICMA-RC otherwise, Employer consents
to the disbursement by ICMA-RC of benefits that have been garnished or transferred to a
former spouse, current spouse, or child pursuant to a domestic relations order or child
support order.
0
Plan number 106363
6. Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan administration
services under this Agreement shall be 0.55% per annum of the amount of
Plan assets invested in the Trust. Such fee shall be computed based on
average daily net Plan assets in the Trust.
(b) Account Maintenance Fee. The annual Account Maintenance Fee for Plan
participants will be waived for Employers who use EZLink for
contribution processing and submit deposits by wire transfer or ACH. In
the event that Employer does not use EZLink for contribution processing
and ACIVwire transfer, the annual Account Maintenance Fee shall be
$36.00 per Plan participant. If applicable, this fee is payable on the first
day of the calendar quarter following establishment and is prorated by
reference to the number of calendar quarters remaining on the day of
payment. The Account Maintenance fee is debited from each Plan
participant's account.
(c) Mutual Fund Services Fee. There is an annual charge of 0.15% assessed
against average daily net Plan assets invested in the Trust's non-
proprietary funds of VantageTrust.
(d) Compensation for Management Services to the Trust; Compensation for
Advisory and other Services to the Vantagepoint Funds. Employer
acknowledges that in addition to amounts payable under this Agreement,
ICMA-RC receives fees from the Trust for investment management
services famished to the Trust. Employer further acknowledges that
certain wholly owned subsidiaries of ICMA-RC receive compensation for
advisory and other services furnished to the Vantagepoint Funds, which
serve as the underlying portfolios of a number of Funds offered through
the Trust. The fees referred to in this subsection are disclosed in the
Retirement Investment Guide. These fees are not assessed against assets
invested in the Trust's Mutual Fund Series.
(e) Redemption Fees. Redemption fees imposed by outside mutual funds in
which Plan assets are invested are collected and paid to the mutual fund by
ICMA-RC. ICMA-RC remits 100% of redemption fees back to the
specific mutual fund to which redemption fees apply. These redemption
fees and the individual mutual fund's policy with respect to redemption
fees are specified in the prospectus for the individual mutual fund and
referenced in the Retirement Investment Guide.
(f) Payment Procedures. All payments to ICMA-RC pursuant to this Section
6 shall be paid out of the Plan assets held by the Trust and shall be paid by
the Trust, to the extent not paid by the Employer. The amount of Plan
assets held in the Trust shall be adjusted by the Trust as required to reflect
Plan number 106363
such payments. In the event that the Employer agrees to pay amounts
owed pursuant to this section 6 directly, any amounts unpaid and
outstanding after 30 days of invoice to the Employer shall be withdrawn
from Plan assets held by the Trust.
The compensation and payment
Employer's use of ICMA-RC's
submitting contribution funds by
term of this Agreement.
7. Custody
set forth in this section 6 is contingent upon the
EZLink system for contribution processing and
ACH or wire transfer on a consistent basis over the
Employer understands that amounts invested in the Trust are to be remitted directly to the
Trust in accordance with instructions provided to Employer by ICMA-RC and are not to
be remitted to ICMA-RC. In the event that any check or wire transfer is incorrectly
labeled or transferred to ICMA-RC, ICMA-RC may return it to Employer with proper
instructions.
8. Indemnification
ICMA-RC shall not be responsible for any acts or omissions of any person with respect
to the Plan or related Trust, other than ICMA-RC in connection with the administration
or operation of the Plan. Employer shall indemnify ICMA-RC against, and hold ICMA-
RC harmless from, any and all loss, damage, penalty, liability, cost, and expense,
including without limitation, reasonable attorney's fees, that may be incurred by, imposed
upon, or asserted against ICMA-RC by reason of any claim, regulatory proceeding, or
litigation arising from any act done or omitted to be done by any individual or person
with respect to the Plan or related Trust, excepting only any and all loss, damage, penalty,
liability, cost or expense resulting from ICMA-RC's negligence, bad faith, or willful
misconduct.
9. Term
This Agreement may be terminated without penalty by either party on sixty days advance
notice in writing to the other.
10. Amendments and Adjustments
(a) This Agreement may not be amended except by written instrument signed by the
parties.
(b) No failure to exercise and no delay in exercising any right, remedy, power or
privilege hereunder shall operate as a waiver of such right, remedy, power or
privilege.
Plan number 106363
(c) The parties agree that enhancements may be made to administrative and
operations services under this Agreement. The Employer will be notified of
enhancements through the Employer Bulletin, quarterly statements or special
mailings. Likewise, if there are any reductions in fees, these will be announced
through the Employer Bulletin, quarterly statement or special mailing.
11. Notices
All notices required to be delivered under Section 10 of this Agreement shall be delivered
personally or by registered or certified mail, postage prepaid, return receipt requested, to
(i) Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E.,
Suite 600, Washington, D.C., 20002-4240; (ii) Employer at the office set forth in the first
paragraph hereof, or to any other address designated by the party to receive the same by
written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the complete and full understanding and sole agreement
between ICMA-RC and Employer relating to the object of this Agreement and correctly
sets forth the complete rights, duties and obligations of each party to the other as of its
date. This Agreement supersedes all written and oral agreements, communications or
negotiations among the parties. Any prior agreements, promises, negotiations or
representations, verbal or otherwise, not expressly set forth in this Agreement are of no
force and effect.
13. Titles
The headings of Sections of this Agreement and the headings for each of the attached
schedules are for convenience only and do not define or limit the contents thereof.
14. Incorporation of Schedules
All Schedules (and any subsequent amendments thereto), attached hereto, and referenced
herein, are hereby incorporated within this Agreement as if set forth fully herein.
15. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
State of California, applicable to contracts made in that jurisdiction without reference to
its conflicts of laws provisions.
In Witness Whereof, the parties hereto certify that they have read and understand this
Agreement and all Schedules attached hereto and have caused this Agreement to be
executed by their duly authorized officers as of the Inception Date first above written.
Plan number 106363
CITY OF LA QUINTA
�y/ cYrG�fi��l/� orri,Date
Signature
Thrn as; P_ G- navesxe City Manager
Name and Title (Please Print)
INTERNATIONAL CITY/COUNTY MANAGEMENT
ASSOCIATION RETIREMENT CORPORATION
UA
Angela C. Montez
Corporate Secretary
Please return fully executed contract to: New Business Unit
ICMA-RC
777 North Capitol Street NE
Suite 600
Washington DC 20002-4240
8
Plan number 106363
Exhibit A
Administrative Services
The administrative services to be performed by ICMA-RC under this Agreement shall be
as follows:
(a) Participant enrollment services, including providing a welcome package and
enrollment kit containing instructions and notices necessary to implement
the Plan's administration.
(b) Establishment of participant accounts for each employee participating in the
Plan for whom ICMA-RC receives appropriate enrollment forms and
records. ICMA-RC is not responsible for determining if such Plan
participants are eligible under the terms of the Plan.
(c) Allocation in accordance with participant directions received in good
order of individual participant accounts to investment funds offered under
the Trust.
(d) Maintenance of individual accounts for participants reflecting amounts
deferred, income, gain or loss credited, and amounts distributed as
benefits.
(e) Maintenance of records for all participants for whom participant accounts
have been established in paper or electronic format. These files shall include
enrollment instructions, beneficiary designation instructions (to the extent
provided to ICMA-RC) and all other written correspondence and documents
concerning each participant's account, and if applicable, records of any
transaction conducted through the Voice Response Unit ("VRU"), the
Internet or other electronic means.
(f) Provision of periodic reports to the Employer and participants of the status
of Plan investments and individual accounts.
(g) Communication to participants of information regarding their rights and
elections under the Plan.
(h) Making available Investor Services Representatives through a toll -free
telephone number from 8:30 a.m. to 9:00 p.m. Eastern Time, Monday
through Friday (excluding holidays and days on which the securities
markets or ICMA-RC are closed for business (including emergency
closings), to assist participants.
(i) Making available a toll -free number and access to VantageLine, ICMA-
RC's interactive VRU, and ICMA-RC's web site, to allow participants to
access certain account information and initiate plan transactions at any
time.
Q) Distribution of benefits as agent for the Employer in accordance with
terms of the Plan.
0
Plan number 106363
(k) Upon approval by the Employer that a domestic relations order is an
acceptable qualified domestic relations order under the terms of the Plan,
ICMA-RC will establish a separate account record for the alternate payee
and provide for the investment and distribution of assets held thereunder.
(1) Loans may be made available on the terms specified in the Loan Guidelines,
if loans are adopted by the Employer.
(m) Online Advice may be made available through a third party vendor on the
terms specified on ICMA-RC's website.
10