HomeMy WebLinkAbout12916RESOLUTION NO. 12916
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
ROBERT C. HUDGENS AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, CONCERNING PARTICIPATION
IN THE OLD-HIRE DEFERRED RETIREMENT OPTION PLAN
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement between Robert C. Hudgens (“Employee”) and the City of Pueblo, a
Municipal Corporation dated March 24, 2014 (the “Agreement”) concerning the Employee’s
participation in an old-hire deferred retirement option plan and resignation from employment, a
true copy of which is attached hereto, having been approved as to form by the City Attorney, is
hereby approved, subject to appropriation required therefore, if any, in fiscal years beyond the
date of adoption of this Resolution.
SECTION 2.
The President of the City Council is hereby authorized to execute the Agreement on
behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City
thereto and attest same.
SECTION 3.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Resolution to effectuate the transactions described herein.
SECTION 4.
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED: _ March 24, 2014
BY: Chris Nicoll
COUNCILPERSON
City Clerk’s Office Item # M-6
REGULAR MEETING AGENDA ITEM
COUNCIL MEETING DATE: March 24, 2014
TO: President Sandra K. Daff and Members of City Council
CC: Sam Azad, City Manager
FROM: Gina Dutcher, City Clerk
SUBJECT: A RESOLUTION APPROVING AN AGREEMENT BETWEEN ROBERT C.
HUDGENS AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION
CONCERNING PARTICIPATION IN THE OLD-HIRE DEFERRED RETIREMENT
OPTION PLAN
SUMMARY:
Should the City Council enter into an Agreement with Robert Hudgens concerning participation
in the Old Hire Deferred Retirement Option Plan (DROP) per City Ordinance Numbers 6586 and
6740?
PREVIOUS COUNCIL ACTION:
All previous qualified members of the Old Hire Fire Pension Plan who entered into an
agreement with the City for the Deferred Retirement Option Program (DROP) were approved by
City Council.
BACKGROUND:
As an eligible member, Mr. Hudgens is requesting an agreement between himself and the City
of Pueblo in accordance with the DROP Program, which became effective December 13, 2001.
Mr. Hudgens is the last member of the Old-Hire Fire Pension Plan
FINANCIAL IMPLICATIONS:
According to the Plan's Actuary, selected by the State Fire and Police Pension Association, the
actuarial soundness of the pension plan should be maintained.
BOARD/COMMISSION RECOMMENDATION:
The Fire Pension Board of Trustees met on June 12, 2007 and reviewed the eligibility of Mr.
Hudgens, and found that Mr. Hudgens is eligible to participate in the DROP Program.
STAKEHOLDER PROCESS:
None
ALTERNATIVES:
None
RECOMMENDATION:
Approval of the Resolution
PROPOSED MOTION:
This Resolution will be placed on the Consent Agenda
Attachments:
Agreement
Version 01/25/02
AGREEMENT
CONCERNING PARTICIPATION IN OLD -HIRE DEFERRED RETIREMENT
OPTION PLAN AND RESIGNATION FROM EMPLOYMENT
THIS AGREEMENT is made and entered this 24 day of March, 2014, by and between
Robert C. Hudgens, a uniformed employee of the Fire Department of the City of Pueblo hired prior
to April 8, 1978 (hereinafter referred to as the "Member ") and the City of Pueblo, a Municipal
Corporation (hereinafter referred to as the "City ").
WHEREAS, City is a Colorado home rule city organized and existing under and by virtue of
Article XX of the Colorado Constitution and is authorized to have a paid Fire Department; and
WHEREAS, Member represents and warrants that he is presently an active full -time
uniformed employee of the Fire Department of City hired prior to April 8, 1978; and
WHEREAS, City has a so- called "old- hire" pension plan (the "Plan ") for uniformed
employees of the Fire Department hired prior to April 8, 1978; and
WHEREAS, Member represents and warrants that he is now eligible to cease employment
with City, retire and receive a retirement benefit pursuant to the Plan; and
WHEREAS, by Ordinances No. 6586 and 6740 of the City, the Plan was amended to include
a Deferred Retirement Option Program (hereinafter referred to as the "DROP Program "), which
under the terms of said Ordinances and the occurrence of conditions subsequent provided therein,
became effective on and after December 13, 2001 for qualified members of the Plan; and
WHEREAS, having carefully considered the terms and conditions of participation in the
DROP Program and the requirements of this Agreement, Member desires to participate in the DROP
Program in accordance with the terms and conditions of this Agreement, Ordinances 6586 and 6740
and other requirements of law;
NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions
set forth in this Agreement, the parties agree as follows:
1. Member hereby now and forever irrevocably elects, in lieu of immediate termination
of employment and receipt of a regular retirement benefit under the Plan, to continue employment
with City and to enter into and voluntarily participate in the DROP Program commencing on
April 1, 2014 and terminating on or before March 30, 2019, which shall be a date no later than
the fifth anniversary of the DROP commencement date. This period of participation of Member in
the DROP Program shall be referred to herein as the "Participation Period."
2. Member's participation in the DROP Program shall be subject to the provisions of
Chapter 2 of Title II of the Pueblo Municipal Code ( "PMC "), as amended, including but not limited
to the provisions of Sections 2 -2 -19 and 2 -2 -20, PMC, as if the same were set forth verbatim in this
Agreement.
3. (a) During the Participation Period, the Member's regular employee contributions
to the Plan will not accrue to the Plan but will be deducted from the Member's compensation and
paid to the Colorado Fire and Police Pension Association ( "FPPA ") and earmarked by FPPA as
accruing to the Member's individual DROP account. Additionally, beginning with the month
following the commencement date of the Participation Period and continuing for the remainder of
the Participation Period, the monthly retirement benefit the Member would otherwise be eligible to
receive upon retirement based upon Member's rank and completed years of service prior to
commencement of the Participation Period, including periodic pension increases, shall not be paid to
Member but shall also be earmarked by FPPA and accrue to the Member's individual DROP
account. In order that the contributions to the DROP account may be ascertained, within ten (10)
days of commencement of the Participation Period, Member shall irrevocably elect in writing
whether the contributions to the DROP account described above, and the retirement pension to be
paid upon cessation of employment as described in paragraph 11 of this Agreement, shall be
computed based upon a regular retirement or one of the joint and survivor options as provided in
Section 2 -2 -18, PMC.
(b) FPPA shall have the exclusive authority to invest and manage the funds in the
Member's individual DROP account, and for such purpose may commingle the DROP account funds
with any and all other funds the FPPA manages, and may charge or assess investment, management
and DROP administrative fees to Member's individual DROP account. The Member's individual
DROP account shall also be credited with net investment earnings, if any and losses at the same rate
as other assets managed by FPPA. Member agrees that City shall have no responsibility for, nor
liability arising from, or related to, FPPA's management of the funds in Member's individual DROP
account, including, without limitation, the investment choices and decisions made by FPPA.
4. At the end of the scheduled Participation Period, or upon any early termination of the
Participation Period pursuant to paragraph 5 of this Agreement, which ever occurs first, the Member
shall immediately, and without the need for further action, resign and cease to be employed by the
City and thereafter shall not be an employee of the City serving in any capacity whatsoever. The
Member acknowledges that this irrevocable commitment is supported by consideration, including the
potential benefits he may receive by participating in the DROP Program.
5. At the time of entering into this Agreement, Member intends to participate in the
DROP Program for the Participation Period, not exceeding five years, ending on the termination date
stated in paragraph 1 of this Agreement. The termination date stated in paragraph 1 of this
Agreement shall not be extended for any reason, but may be advanced to an earlier date at the
election of the Member. In the event of death or permanent disability of the Member or termination
of the Member's employment, the termination of the Participation Period shall occur on the date of
death, determination of permanent disability or termination of employment, whichever shall first
occur.
6. City shall not make, nor be obligated at any time to make, any matching or employer
contributions attributable to or based upon Member's employment or compensation during the
Participation Period to the Plan, FPPA, or Member's individual DROP account.
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7. No disbursement of any funds in the Member's individual DROP account can occur
absent the death or cessation of employment of Member. During the Participation Period, Member
shall not earn nor accrue any service credit or additional service - related benefits under the Plan. By
way of example, during the Participation Period, Member shall not accrue any additional service
credit for purposes of calculating the retirement benefit under Section 2 -2 -17, PMC, nor shall any
promotion in rank during the Participation Period be considered in calculating escalation of benefits
pursuant to Section 2 -2 -11, PMC.
8. Member acknowledges that it is possible, due to economic or investment factors or a
combination of both, that substantial losses could occur in the Member's individual DROP account.
City is not responsible for the DROP account performance. Before signing this Agreement, and
during the Participation Period, Member is responsible for familiarizing himself or herself with all
regulations and policies adopted, or which may in the future be adopted, by the FPPA governing
DROP accounts managed by FPPA.
9. The Participation Period shall not, under any circumstances, exceed five (5) years.
Member may participate in the DROP Program only once.
10. Member understands and agrees that by participating in the DROP Program, Member
authorizes the FPPA Board to adopt rules and regulations governing DROP accounts. Member
agrees to abide by applicable FPPA rules and regulations, as same may be amended from time to
time.
11. When Member dies, becomes permanently disabled, employment with City terminates
or ceases for any reason, or the end of the Participation Period is reached (expiration of the
Participation Period), Member shall become eligible to receive a regular pension, or an actuarially
equivalent amount as provided in Section 2 -2 -18, PMC if Member had so elected in accordance with
paragraph 3(a) of this Agreement. The amount of the pension shall be calculated as of the date of
commencement of the Participation Period based upon Member's years of service, rank and salary at
commencement of the Participation Period as if the Member had retired on the date of
commencement of the Participation Period, and shall be adjusted as provided by Section 2- 2- 11(a),
PMC based upon the rank held at the commencement of the Participation Period.
12. In addition to the benefits provided in paragraph 11 of this Agreement, upon
termination or cessation of employment or expiration of the Participation Period, Member shall,
within thirty (30) days thereof elect to receive a distribution from the Member's DROP account in
accordance with one of the authorized distribution methods specified in Section 2- 2- 19(m)(1), PMC;
in the event of Member's death during the Participation Period, distribution shall be specified in
accordance with Section 2- 2- 19(n), (o) or (p), PMC, whichever is applicable. Should Member, or
Member's spouse, fail to select a distribution method as provided above, distribution for the DROP
account shall be by lump sum payment.
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13. Notwithstanding the provisions of this Agreement, no payment or distribution shall at
any time be made to Member or to Member's surviving spouse or beneficiary which would violate or
exceed the limitations or benefits imposed by Section 415(b) of the Internal Revenue Code. Member
agrees that to effectuate this provision, payments or distributions may be reduced by FPPA to the
extent necessary for compliance with said Code Section 415(b). City shall have the right, but not the
obligation, to request FPPA to reduce the amount of any payment or distribution in order to maintain
compliance with said Code Section 415(b).
14. In exchange for the City allowing the Member to elect to participate in the DROP
Program, Member, on behalf of himself or herself, his or her heirs, executors, administrators,
personal representatives and assigns and without any reservations whatsoever, agrees to forever
release and waive any claim against the City, as of the date this Agreement is signed and executed by
the Member, arising out of the termination of his or her employment with the City and participation
in the DROP Program, including, but not limited to, any claims under the Colorado Age
Discrimination Statute, Section 24 -34 -402, C.R.S., as amended.
15. The Member acknowledges that he or she has received a copy of the DROP Program
amendments to the Plan as embodied in Ordinances 6586 and 6740. The Member has read the
DROP Program amendments and understands the provisions thereof. The Member understands that
participation in the DROP Program may not be advantageous for every employee. Member
acknowledges that Member has been advised in writing to seek independent legal and other
professional counsel prior to execution this Agreement. Member represents that Member has had
ample opportunity to consult with an attorney and other professional advisor of the Member's choice
before executing this Agreement. Member understands and agrees that Member is solely responsible
for analyzing the tax and other financial and legal consequences of participation in the DROP
Program.
16. This Agreement, together with the Plan, and Ordinances 6586 and 6740, embodies the
entire understanding of the parties relative to the subject matter hereof, and no representations,
promises, understandings or agreements in relation to this Agreement exist between the parties
except as expressly set forth herein.
Pueblo, a Municipal Corporation
Attested by: By:
President of the City Coun
City Jerk
Approved as to form: Member:
City Attorney / Name: Robert C. Hudgens
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ACKNOWLEDGMENT
STATE OF COLORADO )
) ss.
COUNTY OF PUEBLO )
The foregoing Agreement was acknowledged before me this l e day of March 2014 by
Robert C. Hudgens
Witness my hand and official seal.
My commission expires: A/1 c Ji Zi 2O 7
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(SEAL) JEANETTE R. GONZALES 4 �4 ��� ����� L4
NOTARY PUBLIC ►■ otary Public
STATE OF COLORADO
NOTARY ID 20134016224
MY COMMISSION EXPIRES MARCH 29, 2017
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