ADMINISTRATIVE SERVICES AGREEMENT PLAN NUMBER 109729
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ADMINISTRATIVE SERVICES AGREEMENT
Type: 401
Account Number: 109729
City of Clearwater
Plan # 109729
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the ~O~ day of NCH'IAA. 'beV' , 2005 (herein referred to as
the "Inception Date"), between The International City Management Association Retirement
Corporation ("ICMA-RC"), a nonprofit corporation organized and existing under the laws of
the State of Delaware; and the City of Clearwater ("Employer") a City organized and
existing under the laws of the State of Florida with an office at 100 South Myrtle,
Clearwater, Florida 33576.
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;
The VantageTrust (the "Trust") is a common law trust governed by an elected Board of
Trustees for the commingled investment of retirement funds held by 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." 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, form processing,
benefit disbursement and asset management.
AGREEMENTS
1. Appointment of ICMA-RC
Employer hereby designates ICMA-RC as Administrator of the Plan to perform all non-
discretionary 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 include:
(a) allocation in accordance with participant direction of individual accounts to
investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting amounts deferred,
income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the status of Plan
investments and individual accounts;
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(d) communication to participants of information regarding their rights and elections
under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance with terms of the
Plan.
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 investment, management and disbursement 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 Duty 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). !CMA-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. Warranties. and Covenants
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 Securities and
Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA- RC Services, Inc. (a wholly owned subsidiary of ICMA-RC) is registered as a
broker-dealer with the Securities and Exchange Commission (SEC) and is a
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Plan # 109729
member in good standing of the National Association of Securities Dealers, Inc.
ICMA-RC covenants with employer that:
(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; 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.
5. Participation in Certain ProceedinQs
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, spouse or child pursuant to a domestic relations order.
6. Compensation and Payment
(a) (a) Plan Administration Fee. The amount to be paid for plan administration
services under this Agreement shall be 0.0% 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 individuals
will be waived ($0.00) for Employers who use EZLink for contribution processing
over the term of the Agreement.
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Plan # 109729
(c) Compensation for Management Services to the Trust and 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 furnished 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.
(d) Mutual Fund Services Fee. There is an annual charge of 0.0% assessed against
average daily net Plan assets invested in the Trust's Mutual Fund Series.
(e) 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. The
amount of Plan assets held in the Trust shall be adjusted by the Trust as required to
reflect such payments.
The compensation and payment set forth in this Section 6 is contingent upon
Employer's continued use of EZLink for contribution processing over the term of the
Agreement and further contingent upon Employer not obtaining plan administration
and investment advisory services for the Plan from anyone other than the existing
plan administrators during the term of this Agreement.
7. Custody
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 will return it to Employer with proper instructions.
8. Responsibility
ICMA-RC shall not be responsible for any acts or omissions of any person other than
ICMA-RC in connection with the administration or operation of the Plan.
9. Term
This Agreement shall be in effect for an initial term beginning on the Inception Date and
ending 5 years after the Inception Date. This Agreement will be renewed automatically for
each succeeding year unless written notice of termination is provided by either party to the
other no less than 60 days before the end of such Agreement year.
This Agreement may be terminated without penalty by either party on sixty days advance
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notice in writing to the other.
10. Amendments and Adjustments
(a) This Agreement may not be amended except by written instrumentsigned by the
parties.
(b) The parties agree that an adjustment to compensation may only be implemented by
ICMA-RC through a proposal to the Employer via written correspondence. The
Employer will be given at least 60 days to review the proposal before the effective
date of the adjustment. Such adjustment shall become effective unless, within the
60 day period before the effective date, the Employer notifies ICMA-RC in writing
that it does not accept such adjustment, in which event the parties will negotiate
with respect to the adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy, power or
privilege hereunder shall operate as a waiver of such right, remedy, power or
privilege.
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 AQreement
This Agreement shall constitute the sole agreement between ICMA-RC and Employer
relating to the object of this Agreement and correctly sets forth the complete rights, duties
and obligations of each party to the other as of its date. Any prior agreements, promises,
negotiations or representations, verbal or otherwise, not expressly set forth in this
Agreement are of no force and effect.
13. GoverninQ Law
This agreement shall be governed by and construed in accordance with the laws of the
State of Florida, applicable to contracts made in that jurisdiction without reference to its
conflicts of laws provisions.
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Plan # 109729
In Witness Whereof, the parties hereto have executed this Agreement as of the Inception
Date first above written.
CITY OF CLEARWATER
by: S e.e.. Q itc... c.1wQ s (~..~..JA-~ r Q~ r!!fJ
Signature/Date
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT
CORPORATION
'2.f;,(i-t /lIt. . / ."
by: It:u. ~"V\.
Paul Gallagher
Corporate Secretary
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Approved as to form:
CITY OF CLEARWATER, FLORIDA
By:
~. ~--:JI:
William B. Horne II
City Manager
Attest: