HomeMy WebLinkAboutordinance.council.008-87 ORDINRNCE NO. ~
(Series o¢ 1~87)
RN ORDINRNCE RMENDING SECTIONS 2-100, 2-101(a)(c)(¢), 2-200, 2-
201, 2-202, 2-500, 2-502, 2-505, 2-400, 2-401, 2-402, 2-405, 2-
405, 2-406, 2-407, 2-S00, 2-600, 2-601, 2-602, 2-605, 2-604, 2-
6OS, 2-700, 2-701, 2-800, 2-801, 2-805, DIVISION 9, 2-1000, 2-
1001, 2-1002, 2-2000, 2-2001, 2-2002, 2-2005.- 2-2004, 2-5000, 2-
5001, 2-5002, OF THE MUNICIPRL CODE OF THE CITY OF 8SPEN TO
TERMINRTE THE EMPLOYEES' RETIREMENT PLRN RND TRUST 8ND TO MODIFY
REQUIREMENTS FOR ELIGIBLE EMPLOYEES TO PSRTICIPBTE IN 8 DEFERRED
COMPENSSTION PLSN
WHERERS, the City o¢ Rspen, Colorado (hereina¢ter re¢erred
to as "City"), has a ErnpIoyees ' Ret i rer,lent Plan and Trust
pursuant to Section 2-100 o¢ the Municipal Code o¢ the City of
8spen ¢or eligible er~lpIoyees; and
WHERERS, only five City er,~ployees are elisable to partici-
pate in the ErepIoyees' Retirer~ent Plan and Trust; and
WHERERS, the E~pI oyees ' Ret ire~ent PI an and Trust is
ad~inistered by Metropolitan Life Insurance Cor~pany [hereinafter
referred to as "Metro").: and
WHERERS, Metro has informed City that Metro wilt no longer
accept City contributions into the Er.~pIoyees' Retirer.~ent Plan and
Trust, effectively freezing City's account.-' and
WHERESS.- Metro continues to charge City approxir~ately two
thousand five hundred dollars [$2,500.00) for the adr.~inistrat-
ire costs of servicing the Er~pIoyees' Retiren~ent Plan and Trust;
and
WHERERS, City, has established a Oeferred Co~pensation Plan
as a retirer~ent r~echanis~ to replace the Er.~pIoyees' Retirer~ent
Plan and Trust for eligible er, lpIoyees.~ and
WHERERS, City, desires to tern~inate the a¢orer~ent toned
Employees' Retirer,~ent Plan and Trust; and
WHERERS, City, pursuant to section 2-200i of the Municipal
Code of the City o¢ Rspen, reserved the right to terr,~inate the
ErnpIoyees' Retirer,~ent Plan and Trust; and
WHERERS, ar~endr,lents to sections 2-100, 2-101(a)(c)[¢}, 2-
200, 2-201, 2-202, 2-300, 2-302, 2-303, 2-400, 2-401, 2-402, 2-
405, 2-405, 2-406, 2-407, 2-S00, 2-600, 2-601, 2-602, 2-605, 2-
604, 2-605, 2-700, 2-701, 2-800, 2-801, 2-805, DIVISION 9, 2-
1000, 2-1001, 2-1002, 2-2000, 2-2001, 2-2002, 2-2005, 2-2004, 2-
5000, 2-5001, 2-3002, of the Municipal Code of the City of 8spen
are necessary to terr,~inate the Er,~ployees' Retirer,~ent Plan, and to
modify contribution reguirements Cot employee contributions to
the Oe~erred Compensation Plan.
NOW, THEREFORE, BE IT ORDSINED E:Y THE CITY COUNCIL OF THE
CITY OF 8SPEN, COLORSDO:
Tha~ Section 2-100 o~~ ~he Municipal Code o~ ~he City o~
Rspen, Colorado~ is hereby repealed-
~i~n_2
That Section 2-101CaJCcJC~) o~ the Municipal Code o~ the
City o~ ~spen, Colorado, is hereby repealed and re-enacted to
read as ?ol lows=
"'.Section 2-101- De?initions-
For the purposes o~ the ~rticie VII o~ Chapter 2 o~ the
Municipal Code the ?ol Iowins de?initions apply:
Ca) ~nnuity contract shall mean only a contract that is
non~rans?erable and tha~ does not continue beyond the
combined l i~e expectancy o? the par~iciRan~ and his
sRouse~ based on acceptable actuarial tables ?or an
ordinary~ join~ l i~e and l as~ survivor annuity. This
option is available only ~o law en?orcement personnel-
Cc) Reserved
C~) Director o~ ~inance sha~l mean ~he duly appointed
and actins director o? ~inance o~ the City o~ RsRen who
shall administer the De?erred ComRensa~ ion Plan as
provided herein."
~li~n_~
Thaf :Secfion 2-200 o~ fhe Hun cipal Code o~ fhe Cify o~
~pen~ Colorado. i~ hereby repealed and r~-ena~fed fo read a~
Every o~fic~r and ~mpIoyee ~ho i~ employed by fhe Cify on
resular~ ~ull time basis~ e>::c I udins elected o~icials~
poi ice o??icers~ ?iremen and any person who is customarily
employed ~or less than twenty (20) hours in one week,
less than rive CS) months in any calendar year, shall be
elisible to participate in the City Oe~erred Compensation
Plan on the ~irst day o? employment'-"
That Section 2-201 o~ the Municipal Code o¢ the City o~
Aspen, Colorado, is hereby repealed and re-enacted to read as
¢ol lows:
"Sec 2-201. Initia~ participation.
An el isible officer or employee shall become a part-
icipant hereunder upon sisniryin9 in writin9, his
acceptance o¢ the terms and provisions o¢ the plan,
includins a stipulation as to the date on which such
o¢¢icer's or employee's most recent period o¢ contin-
uous employment commenced- An elisible officer or
employee shall become a participant in the Deferred
Compensation plan as o¢ the date upon which he first
becomes el isible i¢ he sisnifies his acceptance on or
prior to such date."
That Section 2-202 of the Municipal Code o¢ the City of
Aspen, Colorado, is hereby repealed and re-enacted to read as
~ol lows:
"Sec. 2-202- Optional Participation-
Participation in the deCerred compensation plan is optional
for al I el isible employees- Elisible employees shal I make
their participation selection on the first day of employment
or prior to 8pril 1 o¢ each calendar year."
Se,-_ tion_6
That Section 2-S00 o¢ the Municipal Code o¢ the City of
Aspen, Colorado, is hereby repealed and re-enacted to read as
¢ol lows:
"Sec. 2-~00. Contributions by City-
Subject to the riAht o¢ the City to alter, amend or discon-
tinue the deferred compensation plan, the City shall
contribute for each el isible employee an amount e,~ual to
three CS) percent of the compensation received by each
el isible employee to the deferred compensation plan accord-
ins to the ¢ol Iowins:
£a) Participant in Oererred Compensation Plan- City
contribution is to the Deferred Compensation Plan;
Cb) Non-participant in Deferred Compensation Plan- City
contribution is to the Oe¢erred Compensation Plan;
The City will contribute three [S) percent of cor, pensation
accordins to the above o? each el isible er,'~ployee er~ployed by
the City ten ClO) years or less and rive CS) percent o?
cor,~pensation a,-cordin~ to the above ?or each eligible
er,~F. Ioyee er~4pIoyed by ~he City n4ore ~han ~en (10) year~-"
Tha~ Section 2-~02 o~ ~he ~uniciF'al Code o? ~he City
o? ~pen, Colorado, is hereby repealed and re-enac~ed to read a~
~ol lows:
"Sec. 2-~02. Con~ribu~ion~ by El i5ible Er~F'loyee~-
Each el isible er,4pIoyee may elec~ ~o contribute ?rare4 zero (0)
F. ercen~ o~ en4F. Ioyee'5 corm~F, ensation ~or the period tha~ ~he
er~4pIoyee is a F. ar~icipan~ in ~he De?erred CornF. ensa~ion Plan
UF' ~o and includins ~he n~a::<ir~u~ al lowed by ~he In~ernal
~'.evenue Code ?or ~he period ~ha~ ~he er~F. Ioyee i~ a partici-
F. an~ in ~he de~erred con4F, ensa~ion plan, ~hich n4axi~m4Un~ amount
al lo~ed al~o includes City contributions- Thi~ election
n~us~ be sub~4i~ted in ~ri~ins to ~he Finance Director prior
to ~he s~andard payroll deadline per pay period-"
Tha~ Section 2-~O~ o~ ~he Hunicipal Code o~ ~he City o?
~F'en, Colorado, is hereby repealed-
That ::;e,-tion 2-400 o? the Muni,-ipal Code o? the City o?
Rspen.. Colorado.- is hereby repealed and re-enacted to read as
~ows:
"'.:_:ection 2-400. Individua~ Funds.
The De?erred Cor~pensat ion ?,and shall consist o?
individual ?,ands in which each participant's share
shall consist o? e~,pioyee and city contributions and
accun~Hlated earnings."
That :Section 2-401 o? the Municipal Code o? the City o?
Rspen.. Colorado.. is hereby repealed and re-enacted to read as
lows:
oection 2-401 Receipts by participants.
F'rior to the tithe that distrib,Jtions are to be made
here-under., the participants.- their spouses., bene?ic-
iaries.- heirs at iaw.. or legal representatives shail
have no risht to receive cash or other thin9 o? value..
?ror~ the F'lan adr,4inistrator except as spe,-i?ical ly
stated per plan provisions under withdrawals-"
That Section 2-402 o~ the Municipal Code o~ the City o~
RsF. en, Colorado, is hereby repealed and re-enacted to read as
¢ol lows:
.-. value o~ trust ~und
.=.e_tion .-.-40--. Determination o¢
and o¢ net earninss or losses.
Rs o¢ Oecember 31 o¢ each year, the director o¢ ¢inan.-e
shall determine Cot that period then ended the sum
the net earnings or losses o¢ the individual Cunds
which shal I reelect:
(a) Interest, dividends, the annual
increment on United States
Rmerica Savings Bonds and similar
sec.,rities, ~ains, realized ~rom
the sale, exchanae or collection
assets, other income received and
appreciation in market value
-- assets, and
Cb) Losses real ized ~0rom the sale,
exchange or col lection o¢ assets,
depreciation in market va I,,e o~
assets, administration expenses,
taxes and charses paid-
In determinin9 market value, the director o¢ ¢inance
shall use the most recent valuation o¢ a pooled Curtal,
in which the trust ¢und is invested, current market
prices or 9uotation, i¢ available, b.Jt otherwise the
director o¢ ¢inance shall sue market value as he deems
~air, and his judsment with re~erence thereto shall be
conclusive upon all persons-"
That Section 2-403 o¢ the Municipal Code
Ftspen, Colorado, is hereby repealed and re-enacted to read as
¢ol Io~s:
nih s or Iosses-
.=.e,_tion 2-403. RI Iocation o~ new ear
Rs o¢ Oecember ~lst o¢ each year: the net earnin8s or
losses o¢ the individual Cunds Cot the year then ended
shall be al located to the accounts o¢ all participants
havin~ credits in their Cund based on the per¢or~ance
o? the investment mode that the employee has selected,
which is re~lected in annual statements provided by the
pi an administrator-"
~e~i~n_l~
Thmt Section 2-40S o~ thru Municipal Code o~ thru City o~
~spmn~ Co~o~ado~ is hm~mby ~mpma~md and ~m-mnactmd to ~mad ms
~o~ ~ows:
"Smction 2-40S- F'a~ticipants' acco,~nts.
Fo? each participant there shall be maintained a
sepa?ate account which shall be:
(a) Credited with the ?ol Iowin8 items;
(i) The pa?ticipant's own cont?ibutions;
(ii) The participant's city's contri-
b,Jtions made on his behal?
Ciii) The pa?ticipant's p?opo?tionate sha?e
in the net ea?ninss att?ibutable ~o his
cont?ib,~tions and city cont?ib,ations
made on his behat~ and
(b) Cha?sed with the ?ol Iowin8 ite~ns:
(i) The pa?ticipant's p?opo?tionate
share o? net losses att ?ibutable
to his cont ?ibut ions and city
contri b~Jtions made on his behal?;
Cji) Oist?ibution to a pa?ticipant
his bene?iciary~ whethe? ~ade in
cash o? in kind-"
~' 6 Code o~ the City o~
That Section ~-40~ o¢ the M,Jnicipal
Rspen, Colo?ado, is hereby repealed-
That Section 2-407 o¢ the Municipal Code o¢ the City o¢
Rspen, Colorado, is hereby repealed.
~e~i~n_l~
That Section 2-S00 o¢ the M,Jnicipal Code o~ the City o~
F~spen, Colorado, is hereby repealed and re-enacted to read as
¢o~ ~ ows:
.z.__tion 2'.-S00. Norr,lal F.._tirenlent
The normal retirement ase ~or each participant shall be
on his or her si)<ty-~i~th CE.S) birthday a~ter ~ive
years CS) o~ continuous service [defined as tine normal
retirement date). In ~he even~ ~ha~ ~he re~iremen~ o~
any par~iciF'an~ is de~erred by ~he IS:ity o~ ~SF'en~
durins the de?erment ~he par~icipan~ may continue ~o
F, articiF'a~e in ~he Oe?erred Compensation Plan. Such
period o~ de~erment may be ~er~4inated and retirement
e~ec~ed at the end o? any ?ull year o? de~erment by
either the par~iciF, ant or ~he city by no~ice o~ one ~o
~he o~her a~ leas~ ninety (SO) days prior ~o ~he close
o~ the year.
~.~. ·
Tha~ Section 2-E, O0 o~ ~he MuniciF, al Code o~ the City o~
RsF, en~ Colorado~ is hereby repealed.
Tha~ Se~ion ~-~.01 o~ ~h~ Municipal Code o~ the City o~
~spen~ Colorado~ is hereby repealed and r~-ena~ed ~o read as
~ol lows:
"oe_~ion ~-~.01. Manner o~ distribution on re~ire~ent
When a participant contemplates re~iremen~ or ~ermina-
~ion~ he shall elec~ ~he manner o~ distribution o~ his
account within ~0 days a~er retiremen~ or termination-
Subject to ~he approval o~ ~he employer~ he shal~
entitled to receive ~he entir~ balance o~ ~his account
in any o~ ~he ~ollowins ways~ or combinations ~hereo~:
Ia) in a one-time lump sum~
lb) in a spe~i~i~ amoun~ on a reSular basis
un~ i ~ ~he account is exhaus~ed~
Cc) over a sF, eci~ic number o~ years in
monthl y~ 9uarterly~ semi-annual ~ or
annual payments;
Cd) payments o~ an irresutar amount or
?reguency~ or
(e) throush ~he purchase o? a lifetime
annuity."
.~e~i~n_l~
That Section 2-602 o~ the Municipal Code o~ the City o~
~-~ F~spen.- Colorado.- is hereby repealed and re-enacted to read as
~o~ lows:
"Section 2-602. Total and permanent disability.
F~s o? the date o? death o? any participant., his
bene¢iciary or-his estate sha~l be entitled to receive
the entire balance o{ his a,-count in one o{ the methods
set {orth in section 2-E, Ol." or any combination thereo{.
as o{ the date any participant sha~l be determined to
have become totally and permanently, disabled because
o? physical or mental in?irmity." he shall be entitled
to receive the entire balance o~ his account in one o~
the methods set ?orth in section 2-601 or any combina-
tion the tmon."
That Section 2-605 o{ the Municipal Code o{ the City o~
F~spen.- Colorado.. is hereby repealed.
SecLion_21
That Section 2-604 o{ the Municipal Code o{ the City o{
F4spen~ Colorado, is hereby repealed.
Section_22
~ That Section 2-605 o{ the Municipal Code o{ the City
aspen, Colorado.. is hereby repealed.
That Section 2-700 o~ the Municipal Code o¢ the City o~
Rspen.. Colorado.- is hereby repealed and re-enacted to read as
~ol lows:
"Section 2-700. Bene~iciaries-
Rny participant may desisnate as his beneficiary in
case o~ death the person or persons to whom his share
in his account shall be paid. The desisnation shall be
in s,Jch written ?orm as the plan administrator re.quires
and may include contin9ent or successive bene?iciaries-
In the event o¢ a participant's death, payment shall be
made o? the share in his account to which his bene-
ficiary or bene¢iciaries named in the most recent
desisnation which has been properly completed and ~iled
with the plan administrator by such participant. The
beneficiary or beneficiaries desisnated by a part-
icipant may be chansed at any time and ~rom time to
time., at the e~ection o~ the participant but only by
his ¢ilins with the plan administrator a new desisna-
tion revokins a~l prior desisnations. I?a participant
~iles no desisnation o? beneficiary, or has revoked all
such desisnations., or i~ his desisnated beneficiary or
bene¢iciaries shall predecease him or havins survived
him shall die prior to the ~ina; and complete distri-
but ion o~ the participant's share, the share
undistributed portion o~ the share o~ such deceased
participant shat{ be paid to the executor or adnlinis-
trator o~ the estate o~ su,--h deceased participant- Rny
paynlent n~ade by the trustee in accordance with this
section shall ?u{ {y ac.quit and discharse the tr~stee
~ron] al I ~urther liability on account thereo?-"
That Section 2-701 o~ the Municipal Code o~ the City o¢
Aspen.~ Colorado~ is hereby repealed-
That Section 2-800 o~ the Municipal Code o~ the City o~
Rspen, Colorado, is hereby repealed and re-enacted to read as
Io~s:
"Section 2-800. Investn4ents authorized-
The plan ad~,~inistrator is hereby appointed the trustee
o~ ~he ~unds and is authorized to invest the pt an
?unds, without distinction between principal and
incon~e~ in such bonds~ notes~ debentures~
eguipment trust certi~icates~ real property and in
loans secured by ~irst n~ortsases Cexcept~ as herein-
a~ter specified) on real property~ in participation
suarantee asreen~ents with lire insurance con~panies~
other types o? investn~ent asreen~ent s~ pre?erred or
co~n4on stock~ and such other invest~,~ents or securities
as ~ay be allowed by law~ within the State o~ Colorado~
dependent upon the invest~,~ent ~,~odes the e~,~ployee has
selected and not tried the plan ad~inist rator
accordinsl y-"
That .=.~_,_tion 2-801 o~ the Municipal Code o~ the City
Aspen.- Colorado., is hereby repea;ed.
~e~i~n_2Z
That Section 2-802 o~ the Municipa~ C. ode o~ the City o~
~spen~ Co~orado~ is hereby repea~ed-
That '.=Section 2-80~ o~ the Municipa~ Code o~ the City o~~
~spen, Co;orado~ is hereby ?epea~ed-
~i~n_2~
That Division '-3 o{ the Municipal Code o{ the City o¢ F~spen,
Colorado, is hereby repealed.
That Section 2-1000 o~ the Muni,-~ipa~ Code o~ the City o~
Rspen, Colorado, is hereby repealed and re-enacted to read as
¢ol lows:
"Section 2-1000. Ftnnual report to participants-
Rnnual iy within ninety [90) days ~ol Iowins the close o~
the precedins year, the plan administrator shal~ report
to each participant itemizin3 the participant's
contribution's." city's cont r ib,,t ions made t~or each
participant.- and the earninss and ?und chanses attrib-
utable to the amounts, a description o~ all investments
and other property purchased and so~d, and a~l re-
ceipts, disbursements." and evidence o¢ all other
transactions occurrin~ with re~erence to the ~und
durins said year., and l istins the investments and other
property held in the trust ?und at the end o? such
year-"
That Section 2-1001 o~' the Municipal Code o~ the City. o~
Ftspen, Colorado.- is hereby repealed.
That Section 2-1002 o~ the Municipal Code o~ the City o~
Rspen.. Colorado.- is hereby repealed-
That Section 2-2000 o~ the Municipal Code o? the City o~
Rspen, Colorado.- is hereby repealed and re-enacted to read as
~ol lows:
"Section 2-2000. Rmendment to con,ore with ~aw-
The city reserves the ri3ht to make by amendment such
chanses in.. additions to, and substit,mtions Cot the
provisions o? this plan., to take e??ect retroactively
or otherwise as may be necessary or advisable ~or the
purpose o? con~ormins the plan to Section 4S7 o? the
~-. Internal Revenue Code or to any other present or ~uture
~ederal law relatin~ to trusts and p~ans o~ this or
similar nature."
~_c~ion_~
That Section 2-2001 of the Municipa~ Code of thc_ City of
Aspen, Colorado.- is hereby repealed and re-enacted to read as
roi Iows:
"Section 2-2001. Other ammndr,~ents and tmrr,~ination-
The city also reserves the risht to amend this plan at
any time and from time to tir,~e in any r,~anner which it
deems desirable includins, but no by way of l ir,~itation.-
\ the risht to increase or diminish contributions to be
made by it hmrm-,Jndmr.- to terminate permanently its
asrmement and oblisation to r,~akm any contributions
hereunder.- to chansm or modify the method of al ;or_ation
of its ,-ont r ibut ions and to change any provision
I' reiatins to the adr,~inistration of the plan-
/ \That .~_tion .-. - ... 00~- of the Municipal Code of the City of
~"~/ ~spen~ Colorado, is hereby repealed and re-enacted to read as
roi I ovmsj /'
._.. -.- -00~. Form of amendment
Ftny s,Jch ar~endment shall be made by an instrument in
writing, sisned by a d,,ly authorized officer or
officers of the city cmrtifyins that said amendment has
been authorized and filed with the plan administrator
and the director o~ finance.
That Section 2-200.~ of thc_ Municipal Code o~ the City of
Ftspen, Colorado, is hereby repealed.
That Section 2-2004 of the Municipal Code of the City of
Rspmn, Colorado~ is hereby repealed.
That Section 2-~000 of the Municipal Code of the City of
Rspmn, Colorado.. is hereby repealed and re-enacted to read ms
roi lows:
.=,__tion 2-S000. No ~,,arantee o~ er,~F. Ioyment, et,:
Neither the creation of this plan nor anythin9 con-
tained in this asreer,4ent shall be constr,med as sivins
any participant hereunder or other employee of the city
any risht to ren~ain in the employ of the city. It is
understood that the rishts and interest of the partici-
pants and their beneficiaries hereunder sha~l be
iimited to the ,_-ontributions a,_-tually paid by such
participants and by the city to the plan adr,~inistrator-
That Section 2-3001 o{ the Municipai Code o{ the City o{
Rspen.- Colorado.- is hereby repealed and re-enacted to read as
~'ol lows:
"Section 2-~001. Rights o¢ partiripants and others-
To comply with the Internal Revenue Service resula-
tions, the ,-ity is the lesal owner o~ the plan ~unds,
and er~pIoyee rishts are l i~ited to that o~ a seneral
creditor, unti~ ~unds are paid to the er,~F.I oyee-
Distributions to participants, their bene?iciaries,
spouses, heirs-at-I aw, or lesaI representatives,
e:~:ce pt ins minors and persons under ;esal disability~
shall be r,~ade only to ther,~ and upon their personal
receipts or endorser,4ents, and no interest in the p~an
~unds~ or any part thereo~ shal~ be assignable in
anticipation o? payr~ent either by voluntary or invol-
untary act or defaults o{ such participants~ their
bene.ficiaries~ spouses~ or heirs-at-;aw-
That Section 2-3002 o~ the Municipal Code
~spen~ Co;orado~ is hereby repealed and re-enacted to read as
~ol ;ows:
"Section 2-~002. Internal Revenue Service 9um~i~ica- t ion.
This plan is subject to the condition precedent that it
shal~ be approved and .~uaii~ied by the Internal Revenue
Service Code o~ 19S4 and reSu l at ions issued thereunder
with respect to the tax exe~pt status o~ the plan~ and
i~ the Internal Revenue Service rules that this plan is
not ~uaii~ied~ the city and the participants shai
recover a~l contributions which have been
respectively prior to the initial deter~,~ination as
9ual i~icat ion."
I~ any section, subsection, sentence, clause, phrase or
portion o~ this ordinance is ~or any reason held invalid or
unconstitutional by any court o~ competent ~urisdiction, such
portion sha~; be deemed a separate, distinct and independent
p~ovision and such ho~din8 sha~ not a~ect the va~idity o~ the
remainin8 portions thereo?.
R public hearin8 on the ordinance sha~ be he;d on the
__ day o? ___., ld.:.7 at S.O0 P.M. in the City
Counci~ Cha~be?s, ~spen City Ha~ ~, ~spen, Co~o~ado-
INTROOUCEO, RE~O ~NO OROEREO published as p?ovided by ~aw
by the City Counci~ o? the City o? Rspen on the ~_ day o~
: Wil ~iar~ L. Sti~;in~ Mayo~
~RTTEST:
K'athryn - Koch
~Sit y_.C.t.e rk
__ _ , 1987- ~~~ ....
Wil limm L. Sti~lins, Mayo~