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23 Moreover, the Plan will credit the Participant's "qualified military service" as service for vesting purposes, as though the Participant had resumed employment under Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA) immediately prior to the Participant's death. (d) Military Differential Pay. The following applies with respect to Military Differential Pay: (1) an individual receiving Military Differential Pay is treated as an Employee of the Employer making the payment; (2) the Military Differential Pay is treated as 415 Compensation (and Compensation unless otherwise elected in the Adoption Agreement); and (3) the Plan is not treated as failing to meet the requirements of any provision described in Code §414(u)(1)(C) (or corresponding Plan provisions) by reason of any contribution or benefit which is based on the Military Differential Pay. The Administrator operationally may determine, for purposes of the provisions described in Code §414(u)(1)(C), whether to take into account any matching contributions, attributable to Military Differential Pay. (e) Deemed Severance. Notwithstanding Subsection (b)(1) above, if elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), a Participant who performs service in the uniformed services (as defined in Code §414(u)(12)(B)) on active duty for a period of more than thirty (30) days, the Participant will be deemed to have a severance from employment solely for purposes of eligibility for distribution of amounts not attributable to Employer contributions to a money purchase pension plan. However, the Plan will not distribute such a Participant's Account on account of this deemed severance unless the Participant specifically elects to receive a benefit distribution hereunder. If a Participant elects to receive a distribution on account of this deemed severance, then the individual may not make an after-tax voluntary Employee contribution during the six (6) month period beginning on the date of the distribution. If a Participant would be entitled to a distribution on account of a deemed severance, and a distribution on account of another Plan provision, then the other Plan provision will control and the six (6) month suspension will not apply.
4.12 INSTRUCTIONS TO ADMINISTRATOR AND NOTIFICATION TO PARTICIPANTS For Plan Years beginning after the end of the Plan Year in which this document is first adopted, if a "Flexible Discretionary Match" contribution formula applies (i.e., a formula that provides an Employer with discretion regarding how to allocate a matching contribution to Participants) and the Employer makes a "Flexible Discretionary Match" to the Plan, the Employer must provide the Plan Administrator or Trustee written instructions describing (1) how the "Flexible Discretionary Match" formula will be allocated to Participants (e.g., a uniform percentage of Elective Deferrals or a flat dollar amount), (2) the computation period(s) to which the "Flexible Discretionary Match" formula applies, and (3) if applicable, a description of each business location or business classification subject to separate "Flexible Discretionary Match" allocation formulas. Such instructions must be provided no later than the date on which the "Flexible Discretionary Match" is made to the Plan. A summary of these instructions must be communicated to Participants who receive an allocation of the "Flexible Discretionary Match" no later than 60 days following the date on which the last "Flexible Discretionary Match" contribution is made to the Plan for the Plan Year.
Solely for purposes of this Section, a matching contribution is to be considered as being a "Flexible Discretionary Match" contribution unless the Employer has provided a definitely determinable allocation formula for the matching contribution on the Adoption Agreement. In order to be definitely determinable, then the components of the allocation formula described in the preceding sentence must be specified on the Adoption Agreement and cannot themselves be discretionary. Thus, regardless of whether the contribution formula for the matching contribution is fixed or discretionary, the provisions of the preceding paragraph apply unless the amount to be allocated to the Participant for the Plan Year can be determined without any discretion on the part of the Employer.
ARTICLE V
VALUATIONS
5.1 VALUATION OF THE TRUST FUND
The Administrator shall direct the Trustee (or Insurer), as of each Valuation Date, to determine the net worth of the assets comprising the Trust Fund as it exists on the Valuation Date. In determining such net worth, the Trustee (or Insurer) shall value the assets comprising the Trust Fund at their fair market value as of the Valuation Date and may deduct all expenses for which the Trustee (or Insurer) has not yet been paid by the Employer or the Trust Fund. The Trustee (or Insurer), when determining the net worth of the assets, may update the value of any shares held in a Participant Directed Account by reference to the number of shares held on behalf of the Participant, priced at the market value as of the Valuation Date.
5.2 METHOD OF VALUATION
Except as otherwise provided in the Trust agreement, in determining the fair market value of securities held in the Trust Fund which are listed on a registered stock exchange, the Administrator shall direct the Trustee (or Insurer) to value the same at the prices they were last traded on such exchange preceding the close of business on the Valuation Date. If such securities were not traded on the Valuation Date, or if the exchange on which they are traded was not open for business on the Valuation Date, then the securities shall be valued at the prices at which they were last traded prior to the Valuation Date. Any unlisted security held in the Trust Fund shall be valued at its bid price next preceding the close of business on the Valuation Date, which bid price shall be obtained from a registered broker or an investment banker. In determining the fair market value of assets other than securities for which trading or bid prices can be obtained, the Trustee, the Administrator (if the Trustee is a directed Trustee), or Insurer may appraise such assets itself (assuming it has the appropriate expertise), or in its discretion, employ one or more appraisers for that purpose and rely on the values established by such appraiser or appraisers.
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24 ARTICLE VI
DETERMINATION AND DISTRIBUTION OF BENEFITS
6.1 DETERMINATION OF BENEFITS UPON RETIREMENT
Every Participant may terminate employment with the Employer and retire for purposes hereof on the Participant's Normal Retirement Date or Early Retirement Date. However, a Participant may postpone the severance of employment with the Employer to a later date, in which event the participation of such Participant in the Plan, including the right to receive allocations pursuant to Section 4.3, shall continue until such Participant's Retirement Date. Upon a Participant's Retirement Date, or if elected in the Adoption Agreement, the attainment of Normal Retirement Date without severance of employment with the Employer (subject to Section 6.11), or as soon thereafter as is practicable, the Administrator shall direct the distribution, at the election of the Participant (unless a distribution is mandatory under the other terms of the Plan), of the Participant's entire Vested interest in the Plan in accordance with Section 6.5.
6.2 DETERMINATION OF BENEFITS UPON DEATH
(a) 100% vesting on death. Upon the death of a Participant before the Participant's Retirement Date or other severance of employment, all amounts credited to such Participant's Combined Account shall, if elected in the Adoption Agreement, become fully Vested. The Administrator shall direct, in accordance with the provisions of Sections 6.6 and 6.7, the distribution of the deceased Participant's Vested accounts to the Participant's Beneficiary. (b) Distribution upon death. Upon the death of a Participant, the Administrator shall direct, in accordance with the provisions of Sections 6.6 and 6.7, the distribution of any remaining Vested amounts credited to the accounts of such deceased Participant to such Participant's Beneficiary. (c) Determination of death benefit by Administrator. The Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the account of a deceased Participant as the Administrator may deem desirable. The Administrator's determination of death and of the right of any person to receive payment shall be conclusive.
(d) Beneficiary designation. Each Participant must designate a Beneficiary on a form and in such manner as provided by the Administrator.
(e) Spousal consent to alternative Beneficiary. This Subsection applies if the Employer has elected in the Adoption Agreement either to apply the Joint and Survivor Annuity rules or to provide that a Participant's Spouse is the Beneficiary unless the Spouse consents to an alternative Beneficiary. Unless otherwise elected in the manner prescribed in Section 6.6, the Beneficiary of the Pre-Retirement Survivor Annuity (or if applicable, the entire death benefit) shall be the Participant's surviving Spouse. Except, however, the Participant may designate a Beneficiary other than the Spouse if:
(1) the Participant and the Participant's Spouse have validly waived the Pre-Retirement Survivor Annuity in the manner prescribed in Section 6.6, and the Spouse has waived the right to be the Participant's Beneficiary, (2) the Participant is legally separated or has been abandoned (within the meaning of local law) and the Participant has a court order to such effect (and there is no "qualified domestic relations order" as defined in Code §414(p) which provides otherwise),
(3) the Participant has no Spouse, or
(4) the Spouse cannot be located.
In such event, the designation of a Beneficiary shall be made on a form satisfactory to the Administrator. A Participant may at any time revoke a designation of a Beneficiary or change a Beneficiary by filing written (or in such other form as permitted by the IRS) notice of such revocation or change with the Administrator. However, the Participant's Spouse must again consent in writing (or in such other form as permitted by the IRS) to any change in Beneficiary unless the original consent acknowledged that the Spouse had the right to limit consent only to a specific Beneficiary and that the Spouse voluntarily elected to relinquish such right.
(f) Beneficiary if no Beneficiary elected by Participant. In the event no valid designation of Beneficiary exists, or if the Beneficiary with respect to a portion of a Participant's death benefit is not alive at the time of the Participant's death and no contingent Beneficiary has been designated, then such portion of the death benefit will be paid in the following order of priority, unless the Employer specifies a different order of priority in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), to:
(1) The Participant's surviving Spouse;
(2) The Participant's issue, per stirpes;
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25 (3) The Participant's surviving parents, in equal shares; or (4) The Participant's estate.
If the Beneficiary does not predecease the Participant, but dies prior to distribution of the death benefit, the death benefit will be paid to the Beneficiary's "designated Beneficiary" (or if there is no "designated Beneficiary," to the Beneficiary's estate).
For purposes of these provisions, and with respect to any Beneficiary designations, adopted children shall be treated as children.
(g) Divorce revokes spousal Beneficiary designation. Notwithstanding anything in this Section to the contrary, unless otherwise elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections) or prohibited by applicable State law, if a Participant has designated the Spouse as a Beneficiary, then a divorce decree that relates to such Spouse shall revoke the Participant's designation of the Spouse as a Beneficiary unless the decree or a "qualified domestic relations order" (within the meaning of Code §414(p)) provides otherwise or a subsequent Beneficiary designation is made.
(h) Insured death benefit. If the Plan provides an insured death benefit and a Participant dies before any insurance coverage to which the Participant is entitled under the Plan is effected, the death benefit from such insurance coverage shall be limited to the premium which was or otherwise would have been used for such purpose. (i) Plan terms control. In the event of any conflict between the terms of this Plan and the terms of any Contract issued hereunder, the Plan provisions shall control.
6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY
In the event of a Participant's Total and Permanent Disability prior to the Participant's Retirement Date or other severance of employment, all amounts credited to such Participant's Combined Account shall, if elected in the Adoption Agreement, become fully Vested. In the event of a Participant's Total and Permanent Disability, the Participant's entire Vested interest in the Plan will be distributable and may be distributed in accordance with the provisions of Sections 6.5 and 6.7.
6.4 DETERMINATION OF BENEFITS UPON TERMINATION
(a) Payment on severance of employment. If a Participant's employment with the Employer and any Affiliated Employer is severed for any reason other than death, Total and Permanent Disability, or attainment of the Participant's Retirement Date, then such Participant shall be entitled to such benefits as are provided herein.
Distribution of the funds due to a Terminated Participant shall be made on the occurrence of an event which would result in the distribution had the Terminated Participant remained in the employ of the Employer (upon the Participant's death, Total and Permanent Disability, Early or Normal Retirement). However, at the election of the Participant, the Administrator shall direct that the entire Vested portion of the Terminated Participant's Combined Account be payable to such Terminated Participant provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. Any distribution under this paragraph shall be made in a manner which is consistent with and satisfies the provisions of Section 6.5.
Regardless of whether distributions in kind are permitted, in the event the amount of the Vested portion of the Terminated Participant's Combined Account equals or exceeds the fair market value of any insurance Contracts, the Administrator may direct the Trustee (or Insurer), when agreed to by the Terminated Participant, to assign, transfer, and set over to such Terminated Participant all Contracts on such Terminated Participant's life in such form or with such endorsements, so that the settlement options and forms of payment are consistent with the provisions of Section 6.5. In the event that the Terminated Participant's Vested portion does not at least equal the fair market value of the Contracts, if any, the Terminated Participant may pay over to the Trustee (or Insurer) the sum needed to make the distribution equal to the value of the Contracts being assigned or transferred, or the Trustee (or Insurer), pursuant to the Participant's election, may borrow the cash value of the Contracts from the Insurer so that the value of the Contracts is equal to the Vested portion of the Terminated Participant's Combined Account and then assign the Contracts to the Terminated Participant.
Notwithstanding the above, unless otherwise elected in the Adoption Agreement, if the value of a Terminated Participant's Vested benefit derived from Employer and Employee contributions does not exceed $5,000 (or such lower amount as elected in the Adoption Agreement), the Administrator shall direct that the entire Vested benefit be paid to such Participant in a single lump-sum as soon as practical without regard to the consent of the Participant, provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. A Participant's Vested benefit shall not include (1) qualified voluntary employee contributions within the meaning of Code §72(o)(5)(B) and (2) if selected in the Conditions for Distributions Upon Severance of Employment Section of the Adoption Agreement, the Participant's Rollover Account. If a mandatory distribution is made pursuant to this paragraph and such distribution is greater than $1,000 and the Participant does not elect to have such distribution paid directly to an "eligible retirement plan" specified by the Participant in a "direct rollover" in accordance with Section 6.14 or to receive the distribution directly, then the Administrator shall transfer such amount to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b) designated by the Administrator. However, if the Participant elects to receive or make a "direct rollover" of such amount, then the Administrator shall direct the Trustee (or Insurer) to cause the entire Vested benefit to be paid to such Participant in a single lump sum, or make a "direct rollover" pursuant to Section 6.14, provided the conditions, if any, set forth in the Adoption Agreement have been satisfied. The Administrator may establish a procedure as to whether a Participant who fails to make an affirmative election with respect to a mandatory distribution of $1,000 or less is treated as having made or not made a "direct rollover" DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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26 election. For purposes of determining whether the $1,000 threshold set forth in this paragraph is met, the mandatory distribution includes amounts in a Participant's Rollover Account. For purposes of determining whether the $5,000 threshold in this paragraph is met, a Participant's Rollover Account is taken into account unless otherwise elected in the Adoption Agreement.
(b) Vesting schedule. The Vested portion of any Participant's Account shall be a percentage of such Participant's Account determined on the basis of the Participant's number of Years of Service (or Periods of Service if the elapsed time method is elected) according to the vesting schedule specified in the Adoption Agreement. However, a Participant's entire interest in the Plan shall be non-forfeitable upon the Participant's Normal Retirement Age (if the Participant is employed by the Employer on or after such date). In addition, Employee contributions (voluntary and mandatory) and contributions for sick leave/vacation leave conversions shall be fully Vested.
6.5 DISTRIBUTION OF BENEFITS
(a) Forms of distributions. Subject to the Joint and Survivor Annuity requirements in Subsection (e) below (if the Employer elects to apply such provisions), the Administrator, pursuant to the election of the Participant, shall direct the distribution to a Participant or Beneficiary any amount to which the Participant or Beneficiary is entitled under the Plan in one or more of the following methods which are permitted pursuant to the Adoption Agreement. (1) One lump-sum payment in cash or in property, provided that if a distribution of property is permitted, it shall be limited to property that is specifically allocated and identifiable with respect to such Participant. (2) Partial withdrawals.
(3) Payments over a period certain in monthly, quarterly, semi-annual, or annual cash installments. The period over which such payment is to be made shall not extend beyond the earlier of the Participant's life expectancy (or the joint life expectancy of the Participant and the Participant's designated Beneficiary). Once payments have begun, a Participant may elect to accelerate the payments (reduce the term and increase payments). (4) Purchase of or providing an annuity. However, such annuity may not be in any form that will provide for payments over a period extending beyond either the life of the Participant (or the lives of the Participant and the Participant's designated Beneficiary) or the life expectancy of the Participant (or the life expectancy of the Participant and the Participant's designated Beneficiary).
(b) Consent to distributions. Benefits may not be paid without a Participant's consent if the value of the Participant's Accounts exceed the dollar threshold specified in the Adoption Agreement. If the value of the Participant's Accounts does not exceed such threshold, then the Administrator may only distribute such benefit in a lump-sum. For purposes of this Subsection, the Participant's Accounts shall not include, if selected in the Conditions for Distributions Upon Severance of Employment Section of the Adoption Agreement, the Participant's Rollover Account. (c) Required minimum distributions (Code §401(a)(9)). Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant's benefits, whether under the Plan or through the purchase of an annuity Contract, shall be made in accordance with the requirements of Section 6.8.
(d) Annuity Contracts. All annuity Contracts under this Plan shall be non-transferable when distributed. Furthermore, the terms of any annuity Contract purchased and distributed to a Participant or Spouse shall comply with all of the requirements of this Plan.
(e) Qualified Joint and Survivor Annuity.
(1) The provisions of this Subsection (e) apply if the Employer elects to apply the Joint and Survivor Annuity rules in the Adoption Agreement. A Participant who is married on the Annuity Starting Date and who does not die before the Annuity Starting Date shall receive the value of all Plan benefits in the form of a Joint and Survivor Annuity. The Joint and Survivor Annuity is an annuity that commences immediately and shall be equal in value to a single life annuity. Such joint and survivor benefits following the Participant's death shall continue to the Spouse during the Spouse's lifetime at a rate equal to either fifty percent (50%), seventy-five percent (75%) (or, sixty-six and two-thirds percent (66 2/3%) if the Insurer used to provide the annuity does not offer a joint and seventy-five percent (75%) survivor annuity), or one hundred percent (100%) of the rate at which such benefits were payable to the Participant. Unless otherwise elected in the Adoption Agreement, a joint and fifty percent (50%) survivor annuity shall be considered the designated qualified Joint and Survivor Annuity and the normal form of payment for the purposes of this Plan. However, the Participant may, without spousal consent, elect an alternative Joint and Survivor Annuity, which alternative shall be equal in value to the designated qualified Joint and Survivor Annuity. An unmarried Participant shall receive the value of such Participant's benefit in the form of a life annuity. Such unmarried Participant, however, may elect to waive the life annuity. The election must comply with the provisions of this Section as if it were an election to waive the Joint and Survivor Annuity by a married Participant, but without fulfilling the spousal consent requirement. The Participant may elect to have any annuity provided for in this Section distributed upon the attainment of the "earliest retirement age" under the Plan. The "earliest retirement age" is the earliest date on which, under the Plan, the Participant could elect to receive retirement benefits. (2) Any election to waive the Joint and Survivor Annuity must be made by the Participant in writing (or in such other form as permitted by the IRS) during the election period and be consented to in writing (or in such other form as permitted DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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27 by the IRS) by the Participant's Spouse. If the Spouse is legally incompetent to give consent, the Spouse's legal guardian, even if such guardian is the Participant, may give consent. Such election shall designate a Beneficiary (or a form of benefits) that may not be changed without spousal consent (unless the consent of the Spouse expressly permits designations by the Participant without the requirement of further consent by the Spouse). Such Spouse's consent shall be irrevocable and must acknowledge the effect of such election and be witnessed by a Plan representative or a notary public. Such consent shall not be required if it is established to the satisfaction of the Administrator that the required consent cannot be obtained because there is no Spouse, the Spouse cannot be located, or other circumstances that may be prescribed by Regulations. The election made by the Participant and consented to by such Participant's Spouse may be revoked by the Participant in writing (or in such other form as permitted by the IRS) without the consent of the Spouse at any time during the election period. A revocation of a prior election shall cause the Participant's benefits to be distributed as a Joint and Survivor Annuity. The number of revocations shall not be limited. Any new election must comply with the requirements of this paragraph. A former Spouse's waiver shall not be binding on a new Spouse. (3) The election period to waive the Joint and Survivor Annuity shall be the one-hundred eighty (180) day period ending on the Annuity Starting Date.
(4) For purposes of this Section and Section 6.6, Spouse or surviving Spouse means the Spouse or surviving Spouse of the Participant, provided that a former Spouse will be treated as the Spouse or surviving Spouse and a current Spouse will not be treated as the Spouse or surviving Spouse to the extent provided under a "qualified domestic relations order" as described in Code §414(p).
(5) With regard to the election, except as otherwise provided herein, the Administrator shall, in accordance with Regulation §1.417(a)(3)-1, provide to the Participant no less than thirty (30) days and no more than one-hundred eighty (180) days before the Annuity Starting Date a written (or such other form as permitted by the IRS) explanation of:
(i) the terms and conditions of the qualified Joint and Survivor Annuity and the "qualified optional survivor annuity" that is payable in lieu of the qualified Joint and Survivor Annuity, (ii) the Participant's right to make and the effect of an election to waive the Joint and Survivor Annuity, (iii) the right of the Participant's Spouse to consent to any election to waive the Joint and Survivor Annuity, and
(iv) the right of the Participant to revoke such election, and the effect of such revocation. (6) Any distribution provided for in this Section may commence less than thirty (30) days after the notice required by Code §417(a)(3) is given provided the following requirements are satisfied:
(i) the Administrator clearly informs the Participant that the Participant has a right to a period of thirty (30) days after receiving the notice to consider whether to waive the Joint and Survivor Annuity and to elect (with spousal consent) a form of distribution other than a Joint and Survivor Annuity; (ii) the Participant is permitted to revoke any affirmative distribution election at least until the Annuity Starting Date or, if later, at any time prior to the expiration of the seven (7) day period that begins the day after the explanation of the Joint and Survivor Annuity is provided to the Participant; (iii) the Annuity Starting Date is after the time that the explanation of the Joint and Survivor Annuity is provided to the Participant. However, the Annuity Starting Date may be before the date that any affirmative distribution election is made by the Participant and before the date that the distribution is permitted to commence under (iv) below; and
(iv) distribution in accordance with the affirmative distribution election does not commence before the expiration of the seven (7) day period that begins the day after the explanation of the Joint and Survivor Annuity is provided to the Participant.
(f) Qualified Joint and Survivor Annuity but not the normal form. The provisions of this Section apply if the Employer has elected in the Adoption Agreement to apply the Joint and Survivor Annuity requirement to a Participant, but the Qualified Joint and Survivor Annuity is not the normal form of distribution. (1) The Joint and Survivor Annuity provisions of Section 6.5(e) shall not apply if a Participant does not elect an annuity form of distribution. Furthermore, Subsection (3) below shall not apply if a Participant elects an annuity form of distribution.
(2) Notwithstanding anything in Sections 6.2 and 6.6 to the contrary, upon the death of a Participant, the automatic form of distribution will be a lump-sum rather than a Qualified Pre-Retirement Survivor Annuity. Furthermore, the Participant's Spouse will be the Beneficiary of the Participant's entire Vested interest in the Plan unless an election is made to waive the Spouse as Beneficiary. The other provisions in Section 6.2 shall be applied by treating the death benefit in this Subsection as though it is a Qualified Pre-Retirement Survivor Annuity.
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28 (3) Except to the extent otherwise provided in this Section, the provisions of Sections 6.2 and 6.5 regarding spousal consent shall be inoperative with respect to this Plan. (4) The distribution may commence less than thirty (30) days after the notice required under Regulation §1.411(a)-11(c) is given, provided:
(1) the Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and
(2) the Participant, after receiving the notice, affirmatively elects a distribution.
6.6 DISTRIBUTION OF BENEFITS UPON DEATH
(a) Consent. If the value of the death benefit derived from Employer and Employee contributions does not exceed $5,000, the Administrator shall direct the distribution of such amount to the Participant's Beneficiary in a single lump-sum as soon as practicable. If the value exceeds $5,000, an immediate distribution of the entire amount may be made to the Beneficiary, provided such Beneficiary consents to the distribution. (b) Forms of distribution. Death benefits may be paid to a Participant's Beneficiary in one of the following optional forms of benefits subject to the rules specified in Section 6.8 and the elections made in the Adoption Agreement. Such optional forms of distributions may be elected by the Participant. However, if no optional form of distribution was elected by the Participant prior to death, then the Participant's Beneficiary may elect the form of distribution. (1) One lump-sum payment in cash or in property that is allocated to the Accounts of the Participant at the time of the distribution.
(2) Partial withdrawals.
(3) Payment in monthly, quarterly, semi-annual, or annual cash installments over a period to be determined by the Participant or the Participant's Beneficiary. In order to provide such installment payments, the Administrator may (A) segregate the aggregate amount thereof in a separate, federally insured savings account, certificate of deposit in a bank or savings and loan association, money market certificate or other liquid short-term security or (B) purchase a nontransferable annuity Contract for a term certain (with no life contingencies) providing for such payment. After periodic installments commence, the Beneficiary shall have the right to reduce the period over which such periodic installments shall be made, and the cash amount of such periodic installments shall be adjusted accordingly. (4) In the form of an annuity over the life expectancy of the Beneficiary. (c) Required minimum distributions (Code §401(a)(9)). Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a Participant shall comply with the requirements of Section 6.8. (d) Payment to a child. For purposes of this Section, any amount paid to a child of the Participant will be treated as if it had been paid to the surviving Spouse if the amount becomes payable to the surviving Spouse when the child reaches the age of majority.
(e) Voluntary Contribution Account. In the event that less than one hundred percent (100%) of a Participant's interest in the Plan is distributed to such Participant's Spouse, the portion of the distribution attributable to the Participant's Voluntary Contribution Account shall be in the same proportion that the Participant's Voluntary Contribution Account bears to the Participant's total interest in the Plan.
(f) TEFRA 242(b)(2) election. The provisions of this Section shall not apply to distributions made in accordance with Section
6.8(a)(4).
6.7 TIME OF DISTRIBUTION
Except as limited by Section 6.8, whenever a distribution is to be made, or a series of payments are to commence, the distribution or series of payments may be made or begun as soon as practicable. Notwithstanding anything in the Plan to the contrary, unless a Participant otherwise elects, payments of benefits under the Plan will be begin not later than the later of the sixtieth (60th) day after the close of the Plan Year in which the latest of the following events occurs: (a) the date on which the Participant attains the earlier of age 65 or the Normal Retirement Age specified herein; (b) the tenth (10th) anniversary of the year in which the Participant commenced participation in the Plan; or (c) the date the Participant terminates service with the Employer. The failure of a Participant to request a distribution shall be deemed to be an election to defer the commencement of payment of any benefit until the time otherwise permitted under the Plan.
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29 6.8 REQUIRED MINIMUM DISTRIBUTIONS
(a) General rules
(1) Effective Date. Subject to the good faith interpretation standard, the requirements of this Section shall apply to any distribution of a Participant's interest in the Plan and will take precedence over any inconsistent provisions of this Plan. (2) Requirements of Treasury Regulations incorporated. All distributions required under this Section will be determined and made in accordance with the Regulations under Code §401(a)(9) and the minimum distribution incidental benefit requirement of Code §401(a)(9)(G).
(3) Limits on distribution periods. As of the first "distribution calendar year," distributions to a Participant may only be made in accordance with the selections made in the Form of Distributions Section of the Adoption Agreement. If such distributions are not made in a single-sum, then they may only be made over one of the following periods: (i) the life of the Participant, (ii) the joint lives of the Participant and a "designated Beneficiary," (iii) a period certain not extending beyond the "life expectancy" of the Participant, or (iv) a period certain not extending beyond the joint life and last survivor expectancy of the Participant and a "designated Beneficiary." (4) TEFRA Section 242(b)(2) elections.
(i) Notwithstanding the other provisions of this Section, other than the Spouse's right of consent afforded under the Plan, distributions may be made on behalf of any Participant, including a five percent (5%) owner, who has made a designation in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and in accordance with all of the following requirements (regardless of when such distribution commences):
(A) The distribution by the Plan is one which would not have disqualified such Plan under Code §401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984. (B) The distribution is in accordance with a method of distribution designated by the Participant whose interest in the Plan is being distributed or, if the Participant is deceased, by a Beneficiary of such Participant. (C) Such designation was in writing, was signed by the Participant or the Beneficiary, and was made before January 1, 1984.
(D) The Participant had accrued a benefit under the Plan as of December 31, 1983. (E) The method of distribution designated by the Participant or the Beneficiary specifies the time at which distribution will commence, the period over which distributions will be made, and in the case of any distribution upon the Participant's death, the Beneficiaries of the Participant listed in order of priority. (ii) A distribution upon death will not be covered by the transitional rule of this Subsection unless the information in the designation contains the required information described above with respect to the distributions to be made upon the death of the Participant.
(iii) For any distribution which commences before January 1, 1984, but continues after December 31, 1983, the Participant, or the Beneficiary, to whom such distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method of distribution was specified in writing and the distribution satisfies the requirements in (i)(A) and (i)(E) of this Subsection. (iv) If a designation is revoked, any subsequent distribution must satisfy the requirements of Code §401(a)(9) and the Regulations thereunder. If a designation is revoked subsequent to the date distributions are required to begin, the Plan must distribute by the end of the calendar year following the calendar year in which the revocation occurs the total amount not yet distributed which would have been required to have been distributed to satisfy Code §401(a)(9) and the Regulations thereunder, but for the Section 242(b)(2) election. For calendar years beginning after December 31, 1988, such distributions must meet the minimum distribution incidental benefit requirements. Any changes in the designation will be considered to be a revocation of the designation. However, the mere substitution or addition of another Beneficiary (one not named in the designation) under the designation will not be considered to be a revocation of the designation, so long as such substitution or addition does not alter the period over which distributions are to be made under the designation, directly or indirectly (for example, by altering the relevant measuring life).
(v) In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in Regulation §1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply. (5) Good faith interpretation standard. In applying any provision of this section, the Plan will apply a reasonable good faith interpretation of Code §401(a)(9).
(b) Time and manner of distribution
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30 (1) Required beginning date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's "required beginning date." (2) Death of Participant before distributions begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows as elected in the Distributions Upon Death Section of the Adoption Agreement (or if no election is made, then the Beneficiary may elect either the lifetime method or the five-year method and if the Beneficiary makes no election, the five-year method shall apply):
(i) Lifetime method (Spouse). If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," then, except as otherwise provided herein, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later. (ii) Lifetime method (non-Spouse). If the Participant's surviving Spouse is not the Participant's sole "designated Beneficiary," then, except as provided in Section 6.8(b)(3) below, distributions to the "designated Beneficiary" will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (iii) Five-year method. If there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death or if otherwise elected pursuant to the Adoption Agreement with respect to a "designated Beneficiary," the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.
(iv) Death of Spouse. If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary" and the surviving Spouse dies after the Participant but before distributions to the surviving Spouse begin, this Section
6.8(b)(2), other than Section 6.8(b)(2)(i), will apply as if the surviving Spouse were the Participant.
For purposes of this Section 6.8(b)(2) and Section 6.8(b)(3), unless Section 6.8(b)(2)(iv) applies, distributions are considered to begin on the Participant's "required beginning date." If Section 6.8(b)(2)(iv) applies, distributions are considered to begin on the date distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's "required beginning date" (or to the Participant's surviving Spouse before the date distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i)), the date distributions are considered to begin is the date distributions actually commence.
(3) Forms of distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the "required beginning date," as of the first "distribution calendar year" distributions will be made in accordance with Sections 6.8(c) and 6.8(d) and only in a form of distribution provided in Section 6.5 or 6.6, as applicable. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code §401(a)(9) and the Regulations thereunder.
(c) Required minimum distributions during Participant's lifetime (1) Amount of required minimum distribution for each "distribution calendar year." During the Participant's lifetime, the minimum amount that will be distributed for each "distribution calendar year" is the lesser of the following:
(i) the quotient obtained by dividing the "Participant's account balance" by the distribution period in the Uniform Lifetime Table set forth in Regulation §1.401(a)(9)-9, using the Participant's age as of the Participant's birthday in the "distribution calendar year"; or
(ii) if the Participant's sole "designated Beneficiary" for the "distribution calendar year" is the Participant's Spouse, the quotient obtained by dividing the "Participant's account balance" by the number in the Joint and Last Survivor Table set forth in Regulation §1.401(a)(9)-9, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the "distribution calendar year." (2) Lifetime required minimum distributions continue through year of Participant's death. Required minimum distributions will be determined under this Section 6.8(c) beginning with the first "distribution calendar year" and up to and including the "distribution calendar year" that includes the Participant's date of death.
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31 (d) Required minimum distributions after Participant's death (1) Death on or after date distributions begin.
(i) Participant survived by "designated Beneficiary." If the Participant dies on or after the date distributions begin and there is a "designated Beneficiary," the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the longer of the remaining "life expectancy" of the Participant or the remaining "life expectancy" of the Participant's "designated Beneficiary," determined as follows:
(A) The Participant's remaining "life expectancy" is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
(B) If the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," the remaining "life expectancy" of the surviving Spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving Spouse's age as of the Spouse's birthday in that year. For "distribution calendar years" after the year of the surviving Spouse's death, the remaining "life expectancy" of the surviving Spouse is calculated using the age of the surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year. (C) If the Participant's surviving Spouse is not the Participant's sole "designated Beneficiary," the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (ii) No "designated Beneficiary." If the Participant dies on or after the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the Participant's remaining "life expectancy" calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) Death before date distributions begin.
(i) Participant survived by "designated Beneficiary." Except as provided in Section 6.8(b)(3), if the Participant dies before the date distributions begin and there is a "designated Beneficiary," the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the remaining "life expectancy" of the Participant's "designated Beneficiary," determined as provided in Section 6.8(d)(1). (ii) No "designated Beneficiary." If the Participant dies before the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.
(iii) Death of surviving Spouse before distributions to surviving Spouse are required to begin. If the Participant dies before the date distributions begin, the Participant's surviving Spouse is the Participant's sole "designated Beneficiary," and the surviving Spouse dies before distributions are required to begin to the surviving Spouse under Section 6.8(b)(2)(i), this Section 6.8(d)(2) will apply as if the surviving Spouse were the Participant. (e) Definitions. For purposes of this Section, the following definitions apply:
(1) "Designated Beneficiary" means the individual who is designated as the Beneficiary under the Plan and is the "designated Beneficiary" under Code §401(a)(9) and Regulation §1.401(a)(9)-4. (2) "Distribution calendar year" means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first "distribution calendar year" is the calendar year immediately preceding the calendar year which contains the Participant's "required beginning date." For distributions beginning after the Participant's death, the first "distribution calendar year" is the calendar year in which distributions are required to begin under Section 6.8(b). The required minimum distribution for the Participant's first "distribution calendar year" will be made on or before the Participant's "required beginning date." The required minimum distribution for other "distribution calendar years," including the required minimum distribution for the "distribution calendar year" in which the Participant's "required beginning date" occurs, will be made on or before December 31 of that "distribution calendar year." (3) "Life expectancy" means the life expectancy as computed by use of the Single Life Table in Regulation §1.401(a)(9)-9.
(4) "Participant's account balance" means the Participant's account balance as of the last Valuation Date in the calendar year immediately preceding the "distribution calendar year" (valuation calendar year) increased by the amount of any contributions made and allocated or Forfeitures allocated to the account balance as of the dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date.
For this purpose, the Administrator may exclude contributions that are allocated to the account balance as of dates in the DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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32 valuation calendar year after the Valuation Date, but that are not actually made during the valuation calendar year. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the "distribution calendar year" if distributed or transferred in the valuation calendar year. (a) Reduction for QLACs. A Participant’s account balance is reduced by any QLACs (as defined below). This paragraph applies only to QLACs purchased on or after July 2, 2014. (b) Definition of QLAC. A QLAC is qualifying longevity annuity contract as defined in A-17 of Regulation §1.401(a)(9)-6. Pursuant to such Regulation, a QLAC is an annuity contract that is purchased from an insurance company for a Participant and that, in accordance with the rules of application of paragraph (c) below, satisfies each of the following requirements:
(1) The premiums paid with respect to the contract on a date do not exceed the lesser of the following amounts, determined in accordance with the provisions of paragraph (b) of A-17 of Regulation §1.401(a)(9)-
6. (a) An amount equal to the excess of $125,000 (as adjusted under paragraph (d)(2) of A–17 of Regulation §1.401(a)(9)-6), over the sum of the premiums paid before that date with respect to the contract, and the premiums paid on or before that date with respect to any other contract that is intended to be a QLAC and that is purchased for the Participant under the Plan, or any other plan, annuity, or account described in Code §401(a), 403(a), 403(b), or 408 or eligible governmental plan under §457(b).
(b) An amount equal to the excess of 25% of the Participant’s account balance under the Plan (including the value of any QLAC held under the Plan for the Participant) as of that date, over the sum of the premiums paid before that date with respect to the contract, and the premiums paid on or before that date with respect to any other contract that is intended to be a QLAC and that is held or was purchased for the Participant under the Plan. (2) The contract provides that distributions under the contract must commence not later than a specified annuity starting date that is no later than the first day of the month next following the eighty-fifth (85th) anniversary of the Employee’s birth;
(3) The contract provides that, after distributions under the contract commence, those distributions must satisfy the requirements of paragraph (c) of A-17 of Regulation §1.401(a)(9)-6 (other than the requirement that annuity payments commence on or before the required beginning date (RBD)); (4) The contract does not make available any commutation benefit, cash surrender right, or other similar feature except as otherwise permitted under A-17 of Regulation §1.401(a)(9)-6; (5) No benefits are provided under the contract after the death of the employee other than the benefits described in paragraph (c) of A-17 of Regulation §1.401(a)(9)-6; (6) Except as otherwise permitted under A-17 of Regulation §1.401(a)(9)-6, when the contract is issued, the contract (or a rider or endorsement with respect to that contract) states that the contract is intended to be a QLAC; and
(7) The contract is not a variable contract under Code §817, an indexed contract, or a similar contract, except to the extent provided by the Commissioner in revenue rulings, notices, or other guidance published in the Internal Revenue Bulletin.
(c) Rules of application relating to premiums.
(1) Reliance on representations. For purposes of the limitation on premiums described in paragraphs (b)(1) and (2) above, unless the Administrator has actual knowledge to the contrary, the Administrator may rely on an Employee’s representation (made in writing or such other form as may be prescribed by the Commissioner) of the amount of the premiums described in such paragraphs, but only with respect to premiums that are not paid under a plan, annuity, or contract that is maintained by the Employer or an entity that is treated as a single employer with the Employer under Code §414(b), (c), (m), or (o). (2) Consequences of excess premiums. If an annuity contract fails to be a QLAC solely because a premium for the contract exceeds the limits under paragraph (b)(1)(a) above, then the contract is not a QLAC beginning on the date that premium payment is made unless the excess premium is returned to the non-QLAC portion of the Participant’s account in accordance with paragraph (d)(1)(ii)(B) of A-17 of Regulation §1.401(a)(9)-6. If the contract fails to be a QLAC, then the value of the contract may not be disregarded under paragraph (a) above as of the date on which the contract ceases to be a QLAC.
If the excess premium is returned (either in cash or in the form of a contract that is not intended to be a QLAC) to the non-QLAC portion of the Participant’s account by the end of the calendar year following DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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33 the calendar year in which the excess premium was originally paid, then the contract will not be treated as exceeding the limits under paragraph (b)(1)(a) above at any time, and the value of the contract will not be included in the employee’s account balance under paragraph (a) above. If the excess premium (including the fair market value of an annuity contract that is not intended to be a QLAC, if applicable) is returned to the non-QLAC portion of the Participant’s account after the last valuation date for the calendar year in which the excess premium was originally paid, then the Participant’s account balance for that calendar year must be increased to reflect that excess premium in the same manner as a Participant’s account balance is increased under Regulation §1.401(a)(9)–7, A–2 to reflect a rollover received after the last valuation date.
(3) Application of 25-percent limit. For purposes of the 25% limit under paragraph (b)(1)(b) above, a Participant’s account balance on the date on which premiums for a contract are paid is the account balance as of the last valuation date preceding the date of the premium payment, adjusted as follows. The account balance is increased for contributions allocated to the account during the period that begins after the valuation date and ends before the date the premium is paid and decreased for distributions made from the account during that period.
(d) Dollar and age limitations subject to adjustments. In the case of calendar years beginning on or after January 1, 2015, the $125,000 amount under paragraph (b)(1)(a) will be adjusted at the same time and in the same manner as the limits are adjusted under Code §415(d), except that the base period shall be the calendar quarter beginning July 1, 2013, and any increase under this paragraph that is not a multiple of $10,000 will be rounded to the next lowest multiple of $10,000. The maximum age set forth in paragraph (b)(2) may be adjusted to reflect changes in mortality, with any such adjusted age to be prescribed by the Commissioner in revenue rulings, notices, or other guidance published in the Internal Revenue Bulletin and made available by the Superintendent of Documents.
If a contract fails to be a QLAC because it does not satisfy the dollar limitation in paragraph (b)(1)(a) or the age limitation in paragraph (b)(2), any subsequent adjustment that is made pursuant to this paragraph (d) will not cause the contract to become a QLAC.
(5) "Required beginning date" means, except as otherwise elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), with respect to any Participant, April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires.
6.9 DISTRIBUTION FOR MINOR OR INCOMPETENT INDIVIDUAL
If, in the opinion of the Administrator, a Participant or Beneficiary entitled to a distribution is not able to care for his her affairs because of a mental condition, a physical condition, or by reason of age in the case of a minor, Administrator shall direct the distribution to the Participant's or Beneficiary's valid power of attorney, court appointed guardian, or any other person authorized under state law to receive the benefit (including a custodian under a Uniform Transfers or Gifts to Minors Act), upon furnishing evidence of such status satisfactory to the Administrator. The Administrator and the Trustee (or Insurer) do not have any liability with respect to payments so made and neither the Administrator nor the Trustee (or Insurer) has any duty to make inquiry as to the competence of any person entitled to receive payments under the Plan.
6.10 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN
In the event that all, or any portion, of the distribution payable to a Participant or Beneficiary hereunder shall, at the later of the Participant's attainment of age 62 or Normal Retirement Age, remain unpaid solely by reason of the inability of the Administrator to ascertain the whereabouts of such Participant or Beneficiary, the amount so distributable may, in the sole discretion of the Administrator, either be treated as a Forfeiture or be paid directly to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b). Before treating any Participant as being missing, the Administrator must conduct a reasonable and diligent search for the Participant, using one or more of search methods the Plan Administrator determines are appropriate under the circumstances, such as the methods suggested by DOL Field Assistance Bulletin 2014-01. Such search methods include:
(1) provide a distribution notice to the lost Participant at the Participant's last known address by certified or registered mail; (2) check with the administrator of other employee benefit plans of the Employer that may have more up-to-date information regarding the Participant's whereabouts;
(3) identify and contact the Participant's Designated Beneficiary; (4) use one or more free internet search tools;
(5) attempt contact via email or telephone, or
(6) use proprietary internet search tools, commercial locator services, credit reporting agencies, information brokers, or other search methods. Regarding search methods (2) and (3) above, if the Plan Administrator encounters privacy concerns, the Plan Administrator may request that the Employer or other plan fiduciary (under (2)), or the Designated Beneficiary (under (3)), contact the Participant or forward a letter requesting that the Participant contact the Plan Administrator.
In addition, if the Plan provides for mandatory distributions and the amount to be distributed to a Participant or Beneficiary does not exceed $1,000, then the amount distributable may, in the sole discretion of the Administrator, either be treated as a Forfeiture, be paid directly to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b) or use the PBGC Missing Participant Program, or any successor program, at the time it is determined that the whereabouts of the Participant or the Participant's Beneficiary cannot be ascertained. In the event a Participant or Beneficiary is DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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34 located subsequent to the Forfeiture and prior to the time the Plan has been terminated, such benefit shall be restored, first from Forfeitures, if any, and then from an additional Employer contribution if necessary. Upon Plan termination, the portion of the distributable amount that is an "eligible rollover distribution" as defined in Section 6.14(b)(1) may be paid directly to an individual retirement account described in Code §408(a) or an individual retirement annuity described in Code §408(b). However, regardless of the preceding, a benefit that is lost by reason of escheat under applicable state law is not treated as a Forfeiture for purposes of this Section nor as an impermissible forfeiture under the Code.
6.11 IN-SERVICE DISTRIBUTION
If elected in the Adoption Agreement, at such time as the conditions set forth in the Adoption Agreement have been satisfied, then the Administrator, at the election of a Participant who has not severed employment with the Employer, shall direct the distribution of up to the entire Vested amount then credited to the Accounts as elected in the Adoption Agreement maintained on behalf of such Participant. For purposes of this Section, a Participant shall include an Employee who has an Account balance in the Plan. In the event that the Administrator makes such a distribution, the Participant shall continue to be eligible to participate in the Plan on the same basis as any other Employee. Any distribution made pursuant to this Section shall be made in a manner consistent with Section 6.5. Furthermore, if an in-service distribution is permitted from more than one account type, the Administrator may determine any ordering of a Participant's in-service distribution from such accounts. The Administrator may adopt a policy imposing frequency limitations or other reasonable administrative conditions on in-service distributions made pursuant to this Section.
6.12 DISTRIBUTION FOR HARDSHIP
(a) Hardship events. If elected in the Adoption Agreement, the Administrator, at the election of the Participant, shall direct the distribution to any Participant in any one Plan Year to an amount necessary to satisfy the Participant’s immediate and heavy financial need, determined in accordance with the remaining provisions of this Section. A hardship distribution may only be made on account of an immediate and heavy financial need of the Participant and where the distribution is necessary to satisfy the immediate and heavy financial need. Such distributions may also be made from those Accounts from which such distribution are authorized by the remaining provisions of this Section. For purposes of this Section, a Participant shall include an Employee who has an Account balance in the Plan. Any distribution made pursuant to this Section shall be deemed to be made as of the first day of the Plan Year or, if later, the Valuation Date immediately preceding the date of distribution, and the Account from which the distribution is made shall be reduced accordingly. Withdrawal under this Section shall be authorized only if the distribution is for an immediate and heavy financial need. The Administrator will determine whether there is an immediate and heavy financial need based on the facts and circumstances. An immediate and heavy financial need includes, but is not limited to, a distribution for one of the following:
(1) Expenses for (or necessary to obtain) medical care (as defined in Code §213(d)); (2) Costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant; (3) Payments for burial or funeral expenses for the Participant's deceased parent, Spouse, children or dependents (as defined in Code §152, and without regard to Code §152(d)(1)(B)); (4) Payment of tuition, related educational fees, and room and board expenses, for up to the next twelve (12) months of post-secondary education for the Participant, the Participant's Spouse, children, or dependents (as defined in Code §152, and without regard to Code §§152(b)(1), (b)(2), and (d)(1)(B)); (5) Payments necessary to prevent the eviction of the Participant from the Participant's principal residence or foreclosure on the mortgage on that residence; or
(6) Expenses for the repair of damage to the Participant's principal residence that would qualify for the casualty deduction under Code §165 (determined without regard to whether the loss exceeds 10% of adjusted gross income). (b) Beneficiary-based distribution. If elected in the Adoption Agreement, then effective as of the date specified in the Adoption Agreement, a Participant's hardship event includes an immediate and heavy financial need of the Participant's "primary Beneficiary under the Plan," that would constitute a hardship event if it occurred with respect to the Participant's Spouse or dependent as defined under Code §152 (such hardship events being limited to educational expenses, funeral expenses and certain medical expenses). For purposes of this Section, a Participant's "primary Beneficiary under the Plan" is an individual who is named as a Beneficiary under the Plan (by the Participant or pursuant to Section 6.2(d)) and has an unconditional right to all or a portion of the Participant's Account balance under the Plan upon the Participant's death. (c) Other limits and conditions. If elected in the Adoption Agreement, no distribution shall be made pursuant to this Section from the Participant's Account until such Account has become fully Vested. Furthermore, if a hardship distribution is permitted from more than one Account, the Administrator may determine any ordering of a Participant's hardship distribution from such Accounts.
(d) Distribution rules apply. Any distribution made pursuant to this Section shall be made in a manner which is consistent with and satisfies the provisions of Section 6.5.
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35 6.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION All benefits provided to a Participant in this Plan shall be subject to the rights afforded to any Alternate Payee under a "qualified domestic relations order." Furthermore, unless otherwise elected in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections) a distribution to an Alternate Payee shall be permitted if such distribution is authorized by a "qualified domestic relations order," even if the affected Participant has not reached the "earliest retirement age." For the purposes of this Section, "qualified domestic relations order" and "earliest retirement age" shall have the meanings set forth under Code §414(p). For purposes of this Section, however, a distribution that is made pursuant to a domestic relations order which meets the requirements of Code §414(p)(1)(A)(i) will be treated as being made pursuant to a "qualified domestic relations order." A domestic relations order that otherwise satisfies the requirements for a "qualified domestic relations order" will not fail to be a "qualified domestic relations order": (i) solely because the order is issued after, or revises, another domestic relations order or "qualified domestic relations order"; or (ii) solely because of the time at which the order is issued, including issuance after the Annuity Starting Date or after the Participant's death.
6.14 DIRECT ROLLOVERS
(a) Right to direct rollover. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a "distributee's" election under this Section, a "distributee" may elect, at the time and in the manner prescribed by the Administrator, to have an "eligible rollover distribution" paid directly to an "eligible retirement plan" specified by the "distributee" in a "direct rollover." However, if less than the entire amount of the "eligible rollover distribution" is being paid directly to an "eligible retirement plan," then the Administrator may require that the amount paid directly to such plan be at least $500. (b) Definitions. For purposes of this Section, the following definitions shall apply:
(1) Eligible rollover distribution. An "eligible rollover distribution" means any distribution described in Code §402(c)(4) and generally includes any distribution of all or any portion of the balance to the credit of the "distributee," except that an "eligible rollover distribution" does not include: (a) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the "distributee" or the joint lives (or joint life expectancies) of the "distributee" and the "distributee's" "designated Beneficiary," or for a specified period of ten (10) years or more; (b) any distribution to the extent such distribution is required under Code §401(a)(9); (c) any hardship distribution; (d) the portion of any other distribution(s) that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); (e) any loans that are treated as deemed distributions under Code §72(p) which are not also an offset distribution; (f) the costs of life insurance coverage (P.S. 58 costs); (g) any other distributions described in Regulation §1.402(c)-2; and any other distribution reasonably expected to total less than $200 during a year.
Notwithstanding the above, a portion of a distribution shall not fail to be an "eligible rollover distribution" merely because the portion consists of after-tax voluntary Employee contributions which are not includible in gross income.
However, such portion may be transferred only to:
(i) a traditional individual retirement account or annuity described in Code §408(a) or (b) (a "traditional IRA") (ii) for taxable years beginning after December 31, 2006, a Roth individual account or annuity described in Code §408A (a "Roth IRA"), or
(iii) a qualified defined contribution plan or an annuity contract described in Code §401(a) or Code §403(b), respectively, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.
(2) Eligible retirement plan. An "eligible retirement plan" is a "traditional IRA," a "Roth IRA," a qualified trust (an employees' trust) described in Code §401(a) which is exempt from tax under Code §501(a), an annuity plan described in Code §403(a), an eligible plan under Code §457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision and which agrees to separately account for amounts transferred into such plan from this Plan, and an annuity contract described in Code §403(b), and for distributions made after December 18, 2015, a SIMPLE IRA to the extent permitted under Code §408(p)(1)(B), that accepts the "distributee's" "eligible rollover distribution." The definition of "eligible retirement plan" shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is an Alternate Payee. If any portion of an "eligible rollover distribution" is attributable to payments or distributions from a designated Roth account, an "eligible retirement plan" with respect to such portion shall include only another designated Roth account of the individual from whose account the payments or distributions were made, or a Roth IRA of such individual. In the case of a "distributee" who is a non-Spouse designated Beneficiary, (i) the "direct rollover" may be made only to a traditional or Roth individual retirement account or an annuity described in Code §408(b) ("IRA") that is established on behalf of the designated non-Spouse Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code §402(c)(11), and (ii) the determination of any required minimum distribution required under Code §401(a)(9) that is ineligible for rollover shall be made in accordance with IRS Notice 2007-7, Q&A 17 and 18.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
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36 (3) Distributee. A "distributee" includes an Employee or Former Employee. In addition, the Employee's or Former Employee's surviving Spouse and the Employee's or Former Employee's Spouse or former Spouse who is the Alternate Payee, are "distributees" with regard to the interest of the Spouse or former Spouse. (4) Direct rollover. A "direct rollover" is a payment by the Plan to the "eligible retirement plan" specified by the "distributee."
(c) Participant notice. A Participant entitled to an "eligible rollover distribution" must receive a written explanation of the right to a "direct rollover," the tax consequences of not making a "direct rollover," and, if applicable, any available special income tax elections. The notice must be provided no less than thirty (30) days and no more than one-hundred eighty (180) days before the Annuity Starting Date. The "direct rollover" notice must be provided to all Participants, unless the total amount the Participant will receive as a distribution during the calendar year is expected to be less than $200. (d) Non-Spouse Beneficiary rollover right. A non-Spouse Beneficiary who is a "designated Beneficiary" under Code §401(a)(9)(E) and the Regulations thereunder, by a direct trustee-to-trustee transfer ("direct rollover"), may roll over all or any portion an "eligible rollover distribution" to an IRA the Beneficiary establishes for purposes of receiving the distribution. If the Participant's named Beneficiary is a trust, the Plan may make a direct rollover to an IRA on behalf of the trust, provided the trust satisfies the requirements to be a "designated Beneficiary."
6.15 RESTRICTIONS ON DISTRIBUTION OF ASSETS TRANSFERRED FROM A MONEY PURCHASE PLAN Notwithstanding any provision of this Plan to the contrary, to the extent that any optional form of benefit under this Plan permits a distribution prior to the Employee's retirement, death, Total and Permanent Disability, or severance from employment, and prior to Plan termination, the optional form of benefit is not available with respect to benefits attributable to assets (including the post-transfer earnings thereon) and liabilities that are transferred, within the meaning of Code §414(l), to this Plan from a money purchase pension plan qualified under Code §401(a) (other than any portion of those assets and liabilities attributable to after-tax voluntary Employee contributions or to a direct or indirect rollover contribution). A Participant may not obtain an in-service distribution with respect to such transferred amounts prior to the earlier of the Participant's Normal Retirement Age or attainment of age 62.
6.16 CORRECTIVE DISTRIBUTIONS
Nothing in this Article shall preclude the Administrator from making a distribution to a Participant, to the extent such distribution is made to correct a qualification defect in accordance with the corrective procedures under the IRS' Employee Plans Compliance Resolution System or any other voluntary compliance programs established by the IRS.
6.17 SERVICE CREDIT PURCHASES
The Administrator, upon Participant request, may direct the transfer of all or a portion of the Participant's Account to a governmental defined benefit plan (as defined in Code §414(d)) in which he or she participates for the purchase of permissive service credit (as defined in Code §415(n)(3)(A)).
6.18 UNCASHED CHECKS
Subject to the provisions of Section 6.10, the Plan Administrator operationally may dispose of an uncashed distribution from the Plan to a lost Participant at the time and in the manner described in this Section). Prior to doing so, the Plan Administrator must make reasonable and diligent efforts to contact the lost Participant, including using such search methods the Plan Administrator determines are appropriate under the circumstances. At the discretion of the Administrator, Plan distributions that remain uncashed, and which the Administrator chooses not to reinvest in the Plan may be: (1) voluntarily remitted to a State unclaimed property department, but no sooner than the appropriate state dormancy period has expired; or (2) deposited for the benefit of the lost Participant either to a: (a) bank account, or (b) individual retirement account if the original distribution was an eligible rollover distribution.
For purposes of this Section 6.18, a distribution is "uncashed" if it remains uncashed by the "cash-by" date on the check or in an accompanying notice, e.g., a date prescribed by the bank or the Plan. This "cash-by" date must be at least forty-five (45) days after the check is issued. If there is no prescribed "cash-by" date, then the amount is considered uncashed if it is not cashed by the check’s stale date.
6.19 HEALTH INSURANCE PAYMENTS FOR PUBLIC SAFETY OFFICERS An "eligible retired public safety officer" may elect annually for that taxable year to have the Plan deduct an amount from a distribution which the "eligible retired public safety officer" otherwise would receive and include in income. The Plan will pay such deducted amounts directly to pay "qualified health insurance premiums" ed in Code §402(l). Any election made under this Plan must conform to the requirements of Code §402(l). A "qualified retired public safety officer" is a public safety officer (as defined in §1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C 3796b(9)(A)) who, by reason of disability or attainment of Normal Retirement Age, is separated from service as a public safety officer with the Employer. "Qualified health insurance premiums" means the premiums for coverage for the "eligible retired public safety officer," his or her Spouse, and dependents (as defined in Code §152), by an accident or health plan or qualified long-term care insurance contract (as defined in Code §7702B(b)).
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
37 ARTICLE VII
TRUSTEE AND CUSTODIAN
7.1 CONFLICT WITH PLAN
In the event of any conflicts between the provisions of this Plan and the Trust agreement, the provisions of this Plan control.
7.2 POWERS AND DUTIES OF CUSTODIAN
Subject to the terms of the Trust agreement, the Employer may appoint a Custodian of the Plan assets. The duties of the Custodian are those set forth in the agreement with the Custodian. Any reference in the Plan to a Trustee also is a reference to a Custodian unless the Employer has appointed a Custodian separate from the Trustee or the context of the Plan indicates otherwise.
7.3 LIFE INSURANCE
(a) Permitted insurance. To the extent not prohibited under the terms of the Trust agreement, the Trustee (or Insurer), in accordance with operational procedures of the Administrator, shall ratably apply for, own, and pay all premiums on Contracts on the lives of the Participants or, in the case of a 401(a) Plan, on the life of a member of the Participant's family or on the joint lives of a Participant and a member of the Participant's family. Furthermore, if a Contract is purchased on the joint lives of the Participant and another person and such other person predeceases the Participant, then the Contract may not be maintained under this Plan. Any initial or additional Contract purchased on behalf of a Participant shall have a face amount of not less than $1,000, an amount set forth in the Administrator's procedures, or the limitation of the Insurer, whichever is greater. If a life insurance Contract is to be purchased for a Participant, then the aggregate premium for ordinary life insurance for each Participant must be less than 50% of the aggregate contributions and Forfeitures allocated to the Participant's Combined Account. For purposes of this limitation, ordinary life insurance Contracts are Contracts with both non-decreasing death benefits and non-increasing premiums. If term insurance or universal life insurance is purchased, then the aggregate premium must be 25% or less of the aggregate contributions and Forfeitures allocated to the Participant's Combined Account. If both term insurance and ordinary life insurance are purchased, then the premium for term insurance plus one-half of the premium for ordinary life insurance may not in the aggregate exceed 25% of the aggregate Employer contributions and Forfeitures allocated to the Participant's Combined Account. Notwithstanding the preceding, the limitations imposed herein with respect to the purchase of life insurance shall not apply, in the case of a 401(a) Plan, to the portion of the Participant's Account that has accumulated for at least two (2) Plan Years or to the entire Participant's Account if the Participant has been a Participant in the Plan for at least five (5) years. In addition, amounts transferred to this Plan in accordance with Section 4.6(f)(1)(ii) or (iii) and a Participant's Voluntary Contribution Account may be used to purchase Contracts without limitation. Thus, amounts that are not subject to the limitations contained herein may be used to purchase life insurance on any person in whom a Participant has an insurable interest or on the joint lives of a Participant and any person in whom the Participant has an insurable interest, and without regard to the amount of premiums paid to purchase any life insurance hereunder. (b) Contract conversion at retirement. The Administrator must direct the Trustee (or Insurer) to distribute any Contracts to the Participant or convert the entire value of the Contracts at or before retirement into cash or provide for a periodic income so that no portion of such value may be used to continue life insurance protection beyond the Participant's actual retirement date. (c) Limitations on purchase. No life insurance Contracts shall be required to be obtained on an individual's life if, for any reason (other than the nonpayment of premiums) the Insurer will not issue a Contract on such individual's life. (d) Proceeds payable to plan. The Trustee (or Insurer) must be the owner of any life insurance Contract purchased under the terms of this Plan. The Contract must provide that the proceeds will be payable to the Trustee (or Insurer); however, the Trustee (or Insurer) shall be required to pay over all proceeds of the Contract to the Participant's "designated Beneficiary" in accordance with the distribution provisions of Article VI as directed by the Administrator. A Participant's Spouse will be the "designated Beneficiary" pursuant to Section 6.2, unless a qualified election has been made in accordance with Sections 6.5 and 6.6 of the Plan, if applicable. Under no circumstances shall the Trust retain any part of the proceeds that are in excess of the cash surrender value immediately prior to death. However, the Trustee (or Insurer) shall not pay the proceeds in a method that would violate the requirements of the Retirement Equity Act of 1984, as stated in Article VI of the Plan, or Code §401(a)(9) and the Regulations thereunder. In the event of any conflict between the terms of this Plan and the terms of any insurance Contract purchased hereunder, the Plan provisions shall control. (e) No responsibility for act of Insurer. The Employer, the Administrator and the Trustee shall not be responsible for the validity of the provisions under a Contract issued hereunder or for the failure or refusal by the Insurer to provide benefits under such Contract. The Employer, Administrator and the Trustee are also not responsible for any action or failure to act by the Insurer or any other person which results in the delay of a payment under the Contract or which renders the Contract invalid or unenforceable in whole or in part.
7.4 LOANS TO PARTICIPANTS
(a) Permitted Loans. To the extent not prohibited under the terms of the Trust agreement, the Administrator may, in the Administrator's sole discretion, make loans to Participants. If loans are permitted, then the following shall apply: (1) loans shall be made available to all Participants on a reasonably equivalent basis; (2) loans shall bear a reasonable rate of interest; (3) loans shall be adequately secured; and (4) loans shall provide for periodic repayment over a reasonable period of time.
Furthermore, no Participant loan shall exceed the Participant's Vested interest in the Plan. For purposes of this Section, the DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
38 term Participant shall include any Eligible Employee who is not yet a Participant, if, pursuant to the Adoption Agreement, "rollovers" are permitted to be accepted from Eligible Employees. (b) Loan program. The Administrator shall be authorized to establish a Participant loan program to provide for loans under the Plan. In order for the Administrator to implement such loan program, a separate written document forming a part of this Plan must be adopted, which document shall specifically include, but need not be limited to, the following:
(1) the identity of the person or positions authorized to administer the Participant loan program; (2) a procedure for applying for loans;
(3) the basis on which loans will be approved or denied; (4) limitations, if any, on the types and amounts of loans offered; (5) the procedure under the program for determining a reasonable rate of interest; (6) the types of collateral which may secure a Participant loan; and (7) the events constituting default and the steps that will be taken to preserve Plan assets in the event such default. (c) Loan default. Notwithstanding anything in this Plan to the contrary, if a Participant or Beneficiary defaults on a loan made pursuant to this Section that is secured by the Participant's interest in the Plan, then a Participant's interest may be offset by the amount subject to the security to the extent there is a distributable event permitted by the Code or Regulations.
Notwithstanding anything in the Plan’s loan policy to the contrary, if a loan is accelerated due to a Participant’s termination of employment, then the Plan may direct that the loan note be transferred or directly rolled over to another plan that will accept the transfer or rollover of the note.
(d) Loans subject to Plan terms. Notwithstanding anything in this Section to the contrary, if this is an amendment and restatement of an existing Plan, any loans made prior to the date this amendment and restatement is adopted shall be subject to the terms of the Plan in effect at the time such loan was made.
7.5 PLAN TO PLAN TRANSFERS
Notwithstanding any other provision contained in this Plan and to the extent not prohibited under the terms of the Trust agreement, the Administrator may direct the Trustee to transfer the interest, if any, of a Participant to another trust forming part of a pension, profit sharing, or stock bonus plan that meets the requirements of Code §401(a), provided that the trust to which such transfers are made permits the transfer to be made and further provided that the terms of the transferee plan properly allocates the funds in each account to a transferee account that preserves all the required features and restrictions applicable to such account under this Plan. However, the transfer of amounts from this Plan to a nonqualified foreign trust is treated as a distribution and the transfer of assets and liabilities from this Plan to a plan that satisfies Section 1165 of the Puerto Rico Code is also treated as distribution from the transferor plan.
ARTICLE VIII
AMENDMENT, TERMINATION AND MERGERS
8.1 AMENDMENT
(a) General rule on Employer amendment. The Employer shall have the right at any time to amend this Plan subject to the limitations of this Section. However, any amendment that affects the rights, duties or responsibilities of the Trustee (or Insurer) or Administrator may only be made with the Trustee's (or Insurer's) or Administrator's written consent. Any such amendment shall become effective as provided therein upon its execution. The Trustee (or Insurer) shall not be required to execute any such amendment unless the amendment affects the duties of the Trustee (or Insurer) hereunder. (b) Permissible amendments. The Employer amend the Plan to accomplish any of the following items without affecting reliance on the opinion letter: (1) change the choice of options in the Adoption Agreement or Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), (2) add certain sample or model amendments published by the Internal Revenue Service or other required good-faith amendments where the IRS has provided that their adoption will not cause the Plan to be treated as an individually designed plan, (3) add a list of any protected benefits" which must be preserved, (4) adjust the limitations under Code §§415, 402(g), 401(a)(17) and 414(q)(1)(B) to reflect annual cost-of-living increases, and (5) change the pre-approved plan Provider’s name. "Provider" pursuant to this Section 8 means the entity that contracts with the mass submitter to provide the Basic Plan Document and Adoption Agreement for use by the Employer or, in the alternative, the mass submitter that provides such documents directly to its clients. An Employer that amends the Plan for any other reason, including a waiver of the minimum funding requirement under Code §412(c), will no longer participate in this pre-approved plan and this Plan will be considered to be an individually designed plan for purposes of reliance. A Plan amendment does not include an amendment or substitution of the Trust. (c) Provider amendments. The Employer (and every Participating Employer) expressly delegates authority to the Provider, the right to amend the Plan by submitting a copy of the amendment to each Employer (and Participating Employer) who has adopted this pre-approved plan, after first having received a ruling or favorable determination from the Internal Revenue DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
39 Service that the pre-approved Plan as amended qualifies under Code §401(a) (unless a ruling or determination is not required by the IRS). The Provider will amend the Plan Documents from time to time in accordance with this Section 8.1(c). For purposes of this Section, the mass submitter shall be recognized as the agent of the Provider. If the Provider does not adopt any amendment made by the mass submitter, it will no longer be identical to, or a minor modifier of, the mass submitter plan. (d) Impermissible amendments. No amendment to the Plan shall be effective if it authorizes or permits any part of the Trust Fund (other than such part as is required to pay taxes and administration expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or their Beneficiaries or estates; or causes any reduction in the amount credited to the account of any Participant; or causes or permits any portion of the Trust Fund to revert to or become property of the Employer.
8.2 TERMINATION
(a) Termination of Plan. The Employer shall have the right at any time to terminate the Plan by delivering to the Trustee (or Insurer) and Administrator written notice of such termination. The Employer has no obligation or liability whatsoever to maintain the Plan for any specific length of time and may terminate the Plan or discontinue contributions under the Plan at any time without liability hereunder for any such discontinuance. Upon any full or partial termination or upon the complete discontinuance of the Employer's Contributions to the Plan (in the case of a Profit Sharing Plan), all amounts credited to the affected Participants' Combined Accounts shall become 100% Vested and shall not thereafter be subject to Forfeiture. (b) Distribution of assets. Upon the full termination of the Plan, the Employer shall direct the distribution of the assets to Participants in a manner that is consistent with and satisfies the provisions of Section 6.5. Distributions to a Participant shall be made in cash (or in property if permitted in the Adoption Agreement) or through the purchase of irrevocable nontransferable deferred commitments from the Insurer.
8.3 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS
This Plan may be merged or consolidated with, or its assets and/or liabilities may be transferred to any other plan provided the benefits which would be received by a Participant of this Plan, in the event of a termination of the plan immediately after such transfer, merger or consolidation, are at least equal to the benefits the Participant would have received if the Plan had terminated immediately before the transfer, merger or consolidation.
ARTICLE IX
MISCELLANEOUS
9.1 EMPLOYER ADOPTIONS
(a) Method of adoption. Any organization may become the Employer hereunder by executing the Adoption Agreement. (b) Separate affiliation. Except as otherwise provided in this Plan, the affiliation of the Employer and the participation of its Participants shall be separate and apart from that of any other employer and its participants hereunder.
9.2 PARTICIPANT'S RIGHTS
This Plan shall not be deemed to constitute a contract between the Employer and any Participant or to be a consideration or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time regardless of the effect which such discharge shall have upon the Employee as a Participant of this Plan.
9.3 ALIENATION
(a) General rule. Subject to the exceptions provided below and as otherwise permitted by the Code, no benefit which shall be payable to any person (including a Participant or the Participant's Beneficiary) shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any such person, nor shall it be subject to attachment or legal process for or against such person, and the same shall not be recognized except to such extent as may be required by law.
(b) Exception for loans. Subsection (a) shall not apply to the extent a Participant or Beneficiary is indebted to the Plan by reason of a loan made pursuant to Section 7.4. At the time a distribution is to be made to or for a Participant's or Beneficiary's benefit, such portion of the amount to be distributed as shall equal such indebtedness shall be paid to the Plan, to apply against or discharge such indebtedness. Prior to making a payment, however, the Participant or Beneficiary must be given notice by the Administrator that such indebtedness is to be so paid in whole or part from the Participant's interest in the Plan. If the Participant or Beneficiary does not agree that the indebtedness is a valid claim against the Participant's interest in the Plan, the Participant or Beneficiary shall be entitled to a review of the validity of the claim in accordance with procedures provided in Section 2.10.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
40 (c) Exception for QDRO. Subsection (a) shall not apply to a "qualified domestic relations order" defined in Code §414(p), and those other domestic relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984.
9.4 PLAN COMMUNICATIONS, INTERPRETATION AND CONSTRUCTION (a) Applicable law. This Plan shall be construed and enforced according to the Code, and the laws of the state or commonwealth in which the Employer's principal office is located (unless otherwise designated in Appendix A to the Adoption Agreement (Special Effective Dates and Other Permitted Elections), other than its laws respecting choice of law, to the extent not pre-empted by federal law.
(b) Administrator's discretion. The Administrator has total and complete discretion to interpret and construe the Plan and to determine all questions arising in the administration, interpretation and application of the Plan. Any determination the Administrator makes under the Plan is final and binding upon any affected person. The Administrator must exercise all of its Plan powers and discretion, and perform all of its duties, in a uniform manner. (c) Communications. All Participant or Beneficiary notices, designations, elections, consents or waivers must be made in a form the Administrator (or, as applicable, the Trustee or Insurer) specifies or otherwise approves. Any person entitled to notice under the Plan may waive the notice or shorten the notice period unless such actions are contrary to applicable law. (d) Evidence. Anyone, including the Employer, required to give data, statements or other information relevant under the terms of the Plan ("evidence") may do so by certificate, affidavit, document or other form which the person to act in reliance may consider pertinent, reliable and genuine, and to have been signed, made or presented by the proper party or parties. The Administrator, Trustee and Insurer are protected fully in acting and relying upon any evidence described under the immediately preceding sentence.
(e) Plan terms binding. The Plan is binding upon all parties, including but not limited to, the Employer, Trustee, Insurer, Administrator, Participants and Beneficiaries.
(f) Parties to litigation. Except as otherwise provided by applicable law, a Participant or a Beneficiary is not a necessary party or required to receive notice of process in any court proceeding involving the Plan, the Trust or any fiduciary. Any final judgment (not subject to further appeal) entered in any such proceeding will be binding upon all parties, including the Employer, the Administrator, Trustee, Insurer, Participants and Beneficiaries. (g) Fiduciaries not insurers. The Trustee, Administrator and the Employer in no way guarantee the Plan assets from loss or depreciation. The Employer does not guarantee the payment of any money which may be or becomes due to any person from the Plan. The liability of the Employer, the Administrator and the Trustee to make any distribution from the Trust at any time and all times is limited to the then available assets of the Trust. (h) Construction/severability. The Plan, the Adoption Agreement, the Trust and all other documents to which they refer, will be interpreted consistent with and to preserve tax qualification of the Plan under Code §401(a) and tax exemption of the Trust under Code §501(a) and also consistent with other applicable law. To the extent permissible under applicable law, any provision which a court (or other entity with binding authority to interpret the Plan) determines to be inconsistent with such construction and interpretation, is deemed severed and is of no force or effect, and the remaining Plan terms will remain in full force and effect.
(i) Uniformity. All provisions of this Plan shall be interpreted and applied in a uniform manner. (j) Headings. The headings and subheadings of this Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.
9.5 GENDER, NUMBER AND TENSE
Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply; whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply; and whenever any words are used herein in the past or present tense, they shall be construed as though they were also used in the other form in all cases where they would so apply.
9.6 LEGAL ACTION
In the event any claim, suit, or proceeding is brought regarding the Trust and/or Plan established hereunder to which the Trustee (or Insurer), the Employer or the Administrator may be a party, and such claim, suit, or proceeding is resolved in favor of the Trustee (or Insurer), the Employer or the Administrator, they shall be entitled to be reimbursed from the Trust Fund for any and all costs, attorney's fees, and other expenses pertaining thereto incurred by them for which they shall have become liable.
9.7 PROHIBITION AGAINST DIVERSION OF FUNDS
(a) General rule. Except as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or of the Trust, by termination of either, by power of revocation or amendment, by the happening of any contingency, DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
41 by collateral arrangement or by any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds contributed thereto to be used for, or diverted to, purposes other than the exclusive benefit of Participants or their Beneficiaries.
(b) Mistake of fact. In the event the Employer shall make a contribution under a mistake of fact, the Employer may demand repayment of such contribution at any time within one (1) year following the time of payment and the Trustee (or Insurer) shall return such amount to the Employer within the one (1) year period. Earnings of the Plan attributable to the contributions may not be returned to the Employer but any losses attributable thereto must reduce the amount so returned.
9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE
The Employer, Administrator and Trustee, and their successors, shall not be responsible for the validity of any Contract issued hereunder or for the failure on the part of the Insurer to make payments provided by any such Contract, or for the action of any person which may delay payment or render a Contract null and void or unenforceable in whole or in part.
9.9 INSURER'S PROTECTIVE CLAUSE
Except as otherwise agreed upon in writing between the Employer and the Insurer, an Insurer which issues any Contracts hereunder shall not have any responsibility for the validity of this Plan or for the tax or legal aspects of this Plan. The Insurer shall be protected and held harmless in acting in accordance with any written direction of the Administrator or Trustee and shall have no duty to see to the application of any funds paid to the Trustee, nor be required to question any actions directed by the Administrator or Trustee. Regardless of any provision of this Plan, the Insurer shall not be required to take or permit any action or allow any benefit or privilege contrary to the terms of any Contract which it issues hereunder, or the rules of the Insurer.
9.10 RECEIPT AND RELEASE FOR PAYMENTS
Any payment to any Participant, the Participant's legal representative, Beneficiary, or to any guardian or committee appointed for such Participant or Beneficiary in accordance with the provisions of this Plan, including those referenced in Section 6.9, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustee (or Insurer) and the Employer.
9.11 ACTION BY THE EMPLOYER
Whenever the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by a person duly authorized by its legally constituted authority.
9.12 APPROVAL BY INTERNAL REVENUE SERVICE
Notwithstanding anything herein to the contrary, if, pursuant to an application for qualification is made by the time prescribed by law or such later date as the Secretary of Treasury may prescribe, the Commissioner of the Internal Revenue Service or the Commissioner's delegate should determine that the Plan does not initially qualify as a tax-exempt plan under Code §§401 and 501, and such determination is not contested, or if contested, is finally upheld, then if the Plan is a new plan, it shall be void ab initio and all amounts contributed to the Plan, by the Employer, less expenses paid, shall be returned within one (1) year and the Plan shall terminate, and the Trustee (or Insurer) shall be discharged from all further obligations. If the disqualification relates to a Plan amendment, then the Plan shall operate as if it had not been amended. If the Employer's Plan fails to attain or retain qualification, such Plan will no longer participate in this pre-approved plan and will be considered an individually designed plan.
9.13 PAYMENT OF BENEFITS
Except as otherwise provided in the Plan, benefits under this Plan shall be paid, subject to Sections 6.11 and 6.12, only upon death, Total and Permanent Disability, normal or early retirement, severance of employment, or termination of the Plan.
9.14 ELECTRONIC MEDIA
The Administrator may use any electronic medium to give or receive any Plan notice, communicate any Plan policy, conduct any written Plan communication, satisfy any Plan filing or other compliance requirement and conduct any other Plan transaction to the extent permissible under applicable law. A Participant or a Participant's Spouse, to the extent authorized by the Administrator, may use any electronic medium to make or provide any Beneficiary designation, election, notice, consent or waiver under the Plan, to the extent permissible under applicable law. Any reference in this Plan to a "form," a "notice," an "election," a "consent," a "waiver," a "designation," a "policy" or to any other Plan-related communication includes an electronic version thereof as permitted under applicable law. Notwithstanding the foregoing, any Participant or Beneficiary notices and consent that are required pursuant to the Code must satisfy Regulation §1.401(a)-21.
9.15 PLAN CORRECTION
The Administrator in conjunction with the Employer may undertake such correction of Plan errors as the Administrator deems necessary, including correction to preserve tax qualification of the Plan under Code §401(a) or to correct a fiduciary breach under state or local law. Without limiting the Administrator's authority under the prior sentence, the Administrator, as it determines to be reasonable and appropriate, may undertake correction of Plan document, operational, demographic and Employer eligibility failures under a method described in the Plan or under the IRS Employee Plans Compliance Resolution System ("EPCRS") or any successor program to EPCRS. Furthermore, the Employer may make corrective contributions pursuant to this Section regardless of whether the DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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42 Plan otherwise permits such contribution source. In addition, the Plan is authorized to recover benefits from Participants or Beneficiaries that have been improperly distributed.
9.16 NONTRUSTEED PLANS
If the Plan is funded solely with Contracts, then notwithstanding Sections 9.7 and 9.12, no Contract will be purchased under the Plan unless such Contract or a separate definite written agreement between the Employer and the Insurer provides that no value under Contracts providing benefits under the Plan or credits determined by the Insurer (on account of dividends, earnings, or other experience rating credits, or surrender or cancellation credits) with respect to such Contracts may be paid or returned to the Employer or diverted to or used for other than the exclusive benefit of the Participants or their Beneficiaries. However, any contribution made by the Employer because of a mistake of fact must be returned to the Employer within one year of the contribution.
If this Plan is funded by individual Contracts that provide a Participant's benefit under the Plan, such individual Contracts shall constitute the Participant's Account balance. If this Plan is funded by group Contracts, under the group annuity or group insurance Contract, premiums or other consideration received by the Insurer must be allocated to Participants' Accounts under the Plan.
ARTICLE X
PARTICIPATING EMPLOYERS
10.1 ELECTION TO BECOME A PARTICIPATING EMPLOYER
Notwithstanding anything herein to the contrary, with the consent of the Employer, any Employer may adopt the Employer's Plan and all of the provisions hereof, and participate herein and be known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer (a participation agreement). In the event a Participating Employer is not an Affiliated Employer, then the provisions of Article XI shall apply rather than the provision of this Article XI.
10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS
(a) Permissible variations of participation agreement. The participation agreement must identify the Participating Employer and the covered Employees and provide for the Participating Employer's signature. In addition, in the participation agreement, the Employer shall specify which elections, if any, the Participating Employer can modify, and any restrictions on the modifications. Any such modification shall apply only to the Employees of that Participating Employer. The Participating Employer shall make any such modification by selecting the appropriate option on its participation agreement to the Employer's Adoption Agreement. To the extent that the participation agreement does not permit modification of an election, any attempt by a Participating Employer to modify the election shall have no effect on the Plan and the Participating Employer is bound by the Plan terms as selected by the Employer. If a Participating Employer does not make any permissible participation agreement election modifications, then with regard to any election, the Participating Employer is bound by the Adoption Agreement terms as completed by the "lead Employer."
(b) Holding and investing assets. The Trustee (or Insurer) may, but shall not be required to, commingle, hold and invest as one Trust Fund all contributions made by Participating Employers, as well as all increments thereof. However, the assets of the Plan shall, on an ongoing basis, be available to pay benefits to all Participants and Beneficiaries under the Plan without regard to the Employer or Participating Employer who contributed such assets. (c) Payment of expenses. Unless the Employer otherwise directs, any expenses of the Plan which are to be paid by the Employer or borne by the Trust Fund shall be paid by each Participating Employer in the same proportion that the total amount standing to the credit of all Participants employed by such Employer bears to the total standing to the credit of all Participants.
10.3 DESIGNATION OF AGENT
Each Participating Employer shall be deemed to be a part of this Plan; provided, however, that with respect to all of its relations with the Trustee (or Insurer) and Administrator for purposes of this Plan, each Participating Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the context of the Plan clearly indicates otherwise, the word "Employer" shall be deemed to include each Participating Employer as related to its adoption of the Plan.
10.4 EMPLOYEE TRANSFERS
In the event an Employee is transferred between Participating Employers, accumulated service and eligibility shall be carried with the Employee involved. No such transfer shall effect a severance of employment hereunder, and the Participating Employer to which the Employee is transferred shall thereupon become obligated hereunder with respect to such Employee in the same manner as was the Participating Employer from whom the Employee was transferred.
10.5 PARTICIPATING EMPLOYER'S CONTRIBUTION AND FORFEITURES Any contribution and/or Forfeiture subject to allocation during each Plan Year shall be determined and allocated separately by each Participating Employer and shall be allocated only among the Participants eligible to share in the contribution and Forfeiture allocation of the Employer or Participating Employer making the contribution or by which the forfeiting Participant was employed.
On the basis of the information furnished by the Administrator, the Trustee (or Insurer) shall keep separate books and records concerning the affairs of each Participating Employer hereunder and as to the accounts and credits of the Employees of each DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
43 Participating Employer. The Trustee (or Insurer) may, but need not, register Contracts so as to evidence that a particular Participating Employer is the interested Employer hereunder, but in the event of an Employee transfer from one Participating Employer to another, the employing Employer shall immediately notify the Trustee (or Insurer) thereof.
10.6 AMENDMENT
Any Participating Employer hereby authorizes the Employer to make amendments on its behalf, unless otherwise agreed among all affected parties. Any such amendment is effective and binding upon existing Participating Employers.
10.7 DISCONTINUANCE OF PARTICIPATION
Any Participating Employer that is an Affiliated Employer shall be permitted to discontinue or revoke its participation in the Plan at any time. At the time of any such discontinuance or revocation, satisfactory evidence thereof and of any applicable conditions imposed shall be delivered to the Trustee (or Insurer). The Trustee (or Insurer) shall thereafter transfer, deliver and assign Contracts and other Trust Fund assets allocable to the Participants of such Participating Employer to such new trustee (or insurer) or custodian as shall have been designated by such Participating Employer, in the event that it has established a separate qualified retirement plan for its employees. If no successor is designated, the Trustee (or Insurer) shall retain such assets for the Employees of said Participating Employer pursuant to the provisions of Article VII hereof. In no such event shall any part of the corpus or income of the Trust Fund as it relates to such Participating Employer be used for or diverted to purposes other than for the exclusive benefit of the Employees of such Participating Employer.
10.8 ADMINISTRATOR'S AUTHORITY
The Administrator shall have authority to make any and all necessary rules or regulations, binding upon all Participating Employers and all Participants, to effectuate the purpose of this Article.
ARTICLE XI
MULTIPLE EMPLOYER PROVISIONS
11.1 ELECTION AND OVERRIDING EFFECT
If a Participating Employer that is not an Affiliated Employer adopts this Plan, then the provisions of this Article XI shall apply to each Participating Employer as of the Effective Date specified in its participation agreement and supersede any contrary provisions in the basic Plan document or the Adoption Agreement. If this Article XI applies, then the Plan shall be a multiple employer plan as described in Code §413(c). In this case, the Employer and each Participating Employer acknowledge that the Plan is a multiple employer plan subject to the rules of Code §413(c) and the Regulations thereunder, and specific annual reporting requirements.
11.2 DEFINITIONS
The following definitions shall apply to this Article XI and shall supersede any conflicting definitions in the Plan:
(a) Employee. "Employee" means any common law employee, Leased Employee or other person the Code treats as an employee of a Participating Employer for purposes of the Participating Employer's qualified plan. Either the Adoption Agreement or a participation agreement to the Adoption Agreement may designate any Employee, or class of Employees, as not eligible to participate in the Plan.
(b) Lead Employer. "Lead Employer" means the signatory Employer to the Adoption Agreement execution page, and does not include any Affiliated Employer or Participating Employer. The "lead Employer" has the same meaning as the Employer for purposes of making Plan amendments and other purposes regardless of whether the "lead Employer" is also a Participating Employer under this Article XI. The "lead Employer" may execute a Participation Agreement setting forth elections which are specific to the "lead Employer".
11.3 PARTICIPATING EMPLOYER ELECTIONS
The participation agreement must identify the Participating Employer and the covered Employees and provide for the Participating Employer's signature. In addition, in the participation agreement, the "lead Employer" shall specify which elections, if any, the Participating Employer can modify, and any restrictions on the modifications. Any such modification shall apply only to the employees of that Participating Employer. The Participating Employer shall make any such modification by selecting the appropriate option on its participation agreement to the "lead Employer's" Adoption Agreement. To the extent that the Adoption Agreement does not permit modification of an election, any attempt by a Participating Employer to modify the election shall have no effect on the Plan and the Participating Employer is bound by the Plan terms as selected by the "lead Employer." If a Participating Employer does not make any permissible participation agreement election modifications, then with regard to any election, the Participating Employer is bound by the Adoption Agreement terms as completed by the "lead Employer."
11.4 TESTING
The Administrator shall apply the Code §415 limitation in Section 4.4 for the Plan as a whole.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
44 11.5 COMPENSATION
(a) Separate determination. A Participant's Compensation shall be determined separately for each Participating Employer for purposes of allocations under Article IV.
(b) Joint status. For all Plan purposes, including but not limited to determining the Code §415 limits in Section 4.4, Compensation includes all Compensation paid by or for any Participating Employer.
11.6 SERVICE
An Employee's service includes all Hours of Service and Years of Service with any and all Participating Employers. An Employee who terminates employment with one Participating Employer and immediately commences employment with another Participating Employer has not separated from service or had a severance from employment.
11.7 COOPERATION AND INDEMNIFICATION
(a) Cooperation. Each Participating Employer agrees to timely provide all information the Administrator deems necessary to insure the Plan is operated in accordance with the requirements of the Code and will cooperate fully with the "lead Employer," the Plan, the Plan fiduciaries and other proper representatives in maintaining the qualified status of the Plan. Such cooperation will include payment of such amounts into the Plan, to be allocated to employees of the Participating Employer, which are reasonably required to maintain the tax-qualified status of the Plan. (b) Indemnity. Each Participating Employer will indemnify and hold harmless the Administrator, the "lead Employer" and its subsidiaries; officers, directors, shareholders, employees, and agents of the "lead Employer"; the Plan; the Trustees, Participants and Beneficiaries of the Plan, as well as their respective successors and assigns, against any cause of action, loss, liability, damage, cost, or expense of any nature whatsoever (including, but not limited to, attorney's fees and costs, whether or not suit is brought, as well as IRS plan disqualifications, other sanctions or compliance fees and penalties) arising out of or relating to the Participating Employer's noncompliance with any of the Plan's terms or requirements; any intentional or negligent act or omission the Participating Employer commits with regard to the Plan; and any omission or provision of incorrect information with regard to the Plan which causes the Plan to fail to satisfy the requirements of a tax-qualified plan.
This indemnity provision shall continue to apply to a Participating Employer with respect to the period such entity was a Participating Employer, even if the Participating Employer withdraws or is removed pursuant to Sections 11.8 or 11.9.
11.8 INVOLUNTARY TERMINATION
Unless the "lead Employer" provides otherwise in an addendum hereto, the "lead Employer" shall have the power to terminate the participation of any Participating Employer (hereafter "Terminated Employer") in this Plan. If and when the "lead Employer" wishes to exercise this power, the following shall occur:
(a) Notice. The "lead Employer" shall give the "Terminated Employer" a notice of the "lead Employer's" intent to terminate the "Terminated Employer's" status as a Participating Employer of the Plan. The "lead Employer" will provide such notice not less than thirty (30) days prior to the date of termination unless the "lead Employer" determines that the interest of Plan Participants requires earlier termination.
(b) Spin-off. The "lead Employer" shall establish a new defined contribution plan, using the provisions of this Plan with any modifications contained in the "Terminated Employer's" participation agreement, as a guide to establish a new defined contribution plan (the "spin-off plan"). The "lead Employer" will direct the Trustee to transfer (in accordance with the rules of Code §414(l) and the provisions of Section 8.3) the Accounts of the Employees of the "Terminated Employer" to the "spin-off plan." The "Terminated Employer" shall be the Employer, Administrator, and sponsor of the "spin-off plan." The Trustee of the "spin-off plan" shall be the person or entity designated by the "Terminated Employer." However, the "lead Employer" shall have the option to designate an appropriate financial institution as Trustee instead if necessary to protect the interest of the Participants. The "lead Employer" shall have the authority to charge the "Terminated Employer" or the Accounts of the Employees of the "Terminated Employer" a reasonable fee to pay the expenses of establishing the "spin-off plan." (c) Alternatives. The "Terminated Employer," in lieu of creation of the "spin-off plan" under (b) above, has the option to elect a transfer alternative in accordance with this Subsection (c). (1) Election. To exercise the option described in this Subsection, the "Terminated Employer" must inform the "lead Employer" of its choice and must supply any reasonably required documentation as soon as practical. If the "lead Employer" has not received notice of a "Terminated Employer's" exercise of this option within ten (10) days prior to the stated date of termination, the "lead Employer" can choose to disregard the exercise and proceed with the Spin-off. (2) Transfer. If the "Terminated Employer" selects this option, the Administrator shall transfer (in accordance with the rules of Code §414(l) and the provisions of Section 8.3) the Accounts of the Employees of the "Terminated Employer" to a qualified plan the "Terminated Employer" maintains. To exercise this option, the "Terminated Employer" must deliver to the "lead Employer" or Administrator in writing the name and other relevant information of the transferee plan and must provide such assurances that the Administrator shall reasonably require to demonstrate that the transferee plan is a qualified plan.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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45 (d) Participants. The Employees of the "Terminated Employer" shall cease to be eligible to accrue additional benefits under the Plan with respect to Compensation paid by the "Terminated Employer," effective as of the date of termination. To the extent that these Employees have accrued but unpaid contributions as of the date of termination, the "Terminated Employer" shall pay such amounts to the Plan or the "spin-off plan" no later than thirty (30) days after the date of termination, unless the "Terminated Employer" effectively selects the Transfer option under Subsection (c)(2) above. (e) Consent. By its signature on the participation agreement, the "Terminated Employer" specifically consents to the provisions of this Article and agrees to perform its responsibilities with regard to the "spin-off plan," if necessary.
11.9 VOLUNTARY TERMINATION
A Participating Employer (hereafter "withdrawing employer") may voluntarily withdraw from participation in this Plan at any time. If and when a "withdrawing employer" wishes to withdraw, the following shall occur:
(a) Notice. The "withdrawing employer" shall inform the "lead Employer" and the Administrator of its intention to withdraw from the Plan. The "withdrawing employer" must give the notice not less than thirty (30) days prior to the effective date of its withdrawal.
(b) Procedure. The "withdrawing employer" and the "lead Employer" shall agree upon procedures for the orderly withdrawal of the "withdrawing employer" from the plan. Such procedures may include any of the optional spin-off or transfer options described in Section 11.8.
(c) Costs. The "withdrawing employer" shall bear all reasonable costs associated with withdrawal and transfer under this Section.
(d) Participants. The Employees of the "withdrawing employer" shall cease to be eligible to accrue additional benefits under the Plan as to Compensation paid by the "withdrawing employer," effective as of the effective date of withdrawal. To the extent that such Employees have accrued but unpaid contributions as of the effective date of withdrawal, the "withdrawing employer" shall contribute such amounts to the Plan or the "spin-off plan" promptly after the effective date of withdrawal, unless the accounts are transferred to a qualified plan the "withdrawing employer" maintains.
11.10 DESIGNATION OF AGENT
Each Participating Employer shall be deemed to be a part of this Plan; provided, however, that with respect to all its relations with the Trustee (or Insurer) and Administrator for purposes of this Plan, each Participating Employer shall be deemed to have designated irrevocably the Employer as its agent. Unless the context of the Plan clearly indicates otherwise, the word "Employer" shall be deemed to include each Participating Employer as related to its adoption of the Plan.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
1 MODIFICATIONS TO FIS Business Systems LLC'S Non-Standardized Governmental 401(a).
CITY OF COACHELLA GOVERNMENTAL MONEY PURCHASE PLAN
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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Non-Standardized Governmental 401(a) Pre-Approved Plan
© 2020 FIS Business Systems LLC or its suppliers
1 FIS BUSINESS SYSTEMS LLC NON-STANDARDIZED GOVERNMENTAL 401(A) MODIFICATIONS
CITY OF COACHELLA GOVERNMENTAL MONEY PURCHASE PLAN
The enclosed Plan is being submitted for expedited review as a Volume Submitter Plan.
No modifications from the approved specimen plan have been made to this Plan.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
CITY OF COACHELLA GOVERNMENTAL MONEY PURCHASE PLAN
SUMMARY OF PLAN PROVISIONS
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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i
TABLE OF CONTENTS
INTRODUCTION TO YOUR PLAN
What kind of Plan is this? ....................................................................................................................................................................... 1 What information does this Summary provide? ...................................................................................................................................... 1
ARTICLE I
PARTICIPATION IN THE PLAN
How do I participate in the Plan? ............................................................................................................................................................ 1 What happens if I'm a participant, terminate employment and then I'm rehired? .................................................................................... 1
ARTICLE II
EMPLOYEE CONTRIBUTIONS
What are rollover contributions? ............................................................................................................................................................. 2
ARTICLE III
EMPLOYER CONTRIBUTIONS
What is the Employer matching contribution and how is it allocated? ..................................................................................................... 2 What is the Employer nonelective contribution and how is it allocated? ................................................................................................. 2
ARTICLE IV
COMPENSATION AND ACCOUNT BALANCE
What compensation is used to determine my Plan benefits?.................................................................................................................. 2 Is there a limit on the amount of compensation which can be considered? ............................................................................................ 3 Is there a limit on how much can be contributed to my account each year? ........................................................................................... 3 How is the money in the Plan invested? ................................................................................................................................................. 3 Will Plan expenses be deducted from my account balance? .................................................................................................................. 3
ARTICLE V
VESTING
What is my vested interest in my account?............................................................................................................................................. 3
ARTICLE VI
DISTRIBUTIONS PRIOR TO TERMINATION
Can I withdraw money from my account while working?......................................................................................................................... 4
ARTICLE VII
BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT When can I get money out of the Plan?.................................................................................................................................................. 4 What happens if I terminate employment before death, disability or retirement? .................................................................................... 4 What happens if I terminate employment at Normal Retirement Date? .................................................................................................. 4 What happens if I terminate employment due to disability? .................................................................................................................... 4 How will my benefits be paid to me?....................................................................................................................................................... 5
ARTICLE VIII
BENEFITS AND DISTRIBUTIONS UPON DEATH
What happens if I die while working for the Employer?........................................................................................................................... 5 Who is the beneficiary of my death benefit? ........................................................................................................................................... 5 How will the death benefit be paid to my beneficiary? ............................................................................................................................ 5 DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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When must the last payment be made to my beneficiary?...................................................................................................................... 5 What happens if I'm a participant, terminate employment and die before receiving all my benefits? ...................................................... 6
ARTICLE IX
TAX TREATMENT OF DISTRIBUTIONS
What are my tax consequences when I receive a distribution from the Plan?......................................................................................... 6 Can I elect a rollover to reduce or defer tax on my distribution? ............................................................................................................. 6
ARTICLE X
LOANS
Is it possible to borrow money from the Plan? ........................................................................................................................................ 6 What are the loan rules and requirements?............................................................................................................................................ 6
ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES
Are my benefits protected?..................................................................................................................................................................... 7 Are there any exceptions to the general rule? ........................................................................................................................................ 7 Can the Plan be amended?.................................................................................................................................................................... 8 What happens if the Plan is discontinued or terminated? ....................................................................................................................... 8 How do I submit a claim for Plan benefits?............................................................................................................................................. 8 What if my benefits are denied? ............................................................................................................................................................. 8
ARTICLE XII
GENERAL INFORMATION ABOUT THE PLAN
Plan Name.............................................................................................................................................................................................. 8 Plan Effective Dates ............................................................................................................................................................................... 8 Other Plan Information ........................................................................................................................................................................... 8 Employer Information ............................................................................................................................................................................. 8 Administrator Information ....................................................................................................................................................................... 8 Plan Trustee Information and Plan Funding Medium.............................................................................................................................. 9 DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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1 CITY OF COACHELLA GOVERNMENTAL MONEY PURCHASE PLAN
SUMMARY OF PLAN PROVISIONS
INTRODUCTION TO YOUR PLAN
What kind of Plan is this?
City of Coachella Governmental Money Purchase Plan ("Plan") has been adopted to provide you with the opportunity to save for retirement on a tax-advantaged basis. This Plan is a type of qualified retirement plan. Generally you are not taxed on the amounts we contribute to the Plan until you withdraw these amounts from the Plan.
What information does this Summary provide?
This Summary of Plan Provisions contains information regarding your Plan benefits, your distribution options, and many other features of the Plan. You should take the time to read this summary to get a better understanding of your rights and obligations under the Plan.
If you have any questions about the Plan, please contact the Administrator or other plan representative. The Administrator is responsible for responding to questions and making determinations related to the administration, interpretation, and application of the Plan. The name and address of the Administrator can be found at the end of this summary in the Article entitled "General Information About the Plan."
This summary describes the Plan's benefits and obligations as contained in the legal Plan document, which governs the operation of the Plan. The Plan document is written in much more technical and precise language and is designed to comply with applicable legal requirements. If the non-technical language in this summary conflicts with the language of the Plan document, then the Plan document always governs.
The Plan and your rights under the Plan are subject to various laws, including the Internal Revenue Code. The provisions of the Plan are subject to revision due to a change in laws. Your Employer may also amend or terminate this Plan.
Types of Contributions. The Plan includes provisions for the following types of contributions:
Employer nonelective contributions
Employer matching contributions
Employee rollover contributions
ARTICLE I
PARTICIPATION IN THE PLAN
How do I participate in the Plan?
Provided you are not an Excluded Employee, you may begin participating under the Plan once you have satisfied the eligibility requirements and reached your "Entry Date." The following describes the eligibility requirements and Entry Dates that apply. You should contact the Administrator if you have questions about the timing of your Plan participation.
Excluded Employees. If you are a member of a class of employees identified below, you are an Excluded Employee and you are not entitled to participate in the Plan. The Excluded Employees are:
union employees whose employment is governed by a collective bargaining agreement under which retirement benefits were the subject of good faith bargaining, unless the collective bargaining agreement requires the employee to be included within the Plan
certain nonresident aliens who have no earned income from sources within the United States all employees except the City Manager and Directors
Eligibility Conditions. You will be eligible to participate in the Plan on your date of hire. However, you will actually become a Participant in the Plan once you reach the Entry Date as described below.
Entry Date. Your Entry Date will be the date on which you satisfy the eligibility requirements.
What happens if I'm a participant, terminate employment and then I'm rehired? If you are no longer a participant because you terminated employment, and you are rehired, then you will be able to participate in the Plan on your date of rehire provided you are otherwise eligible to participate in the Plan.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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2 ARTICLE II
EMPLOYEE CONTRIBUTIONS
What are rollover contributions?
Rollover contributions. At the discretion of the Administrator, if you are a Participant who is currently employed or an Eligible Employee, you may be permitted to deposit into the Plan distributions you have received from other retirement plans and certain IRAs. Such a deposit is called a "rollover" and may result in tax savings to you. You may ask the Administrator or Trustee of the other plan or IRA to directly transfer (a "direct rollover") to this Plan all or a portion of any amount that you are entitled to receive as a distribution from such plan. Alternatively, you may elect to deposit any amount eligible to be rolled over within 60 days of your receipt of the distribution. You should consult qualified counsel to determine if a rollover is in your best interest.
Rollover account. Your rollover will be accounted for in a "rollover account." You will always be 100% vested in your "rollover account" (see the Article in this summary entitled "Vesting"). This means that you will always be entitled to all amounts in your rollover account. Rollover contributions will be affected by any investment gains or losses.
Withdrawal of rollover contributions. You may withdraw the amounts in your "rollover account" at any time.
ARTICLE III
EMPLOYER CONTRIBUTIONS
This Article describes Employer contributions that will be made to the Plan.
What is the Employer matching contribution and how is it allocated? Matching Contribution. Matching contributions are Employer contributions that are based on contributions you make to CITY OF COACHELLA 457B PLAN. All of these contributions that you make are collectively referred to as "salary deferrals" for purposes of the applying the matching contribution described below.
Matching Contribution. Your Employer will make a matching contribution equal to 0% of your salary deferrals that do not exceed 100% of your Compensation.
Allocation conditions. You will always share in the matching contribution regardless of the amount of service you complete during the Plan Year.
What is the Employer nonelective contribution and how is it allocated? Nonelective contribution. Your Employer will make a nonelective contribution equal to 0% of your Compensation for each Plan Year.
Allocation conditions. You will always share in the nonelective contribution regardless of the amount of service you complete during the Plan Year.
ARTICLE IV
COMPENSATION AND ACCOUNT BALANCE
What compensation is used to determine my Plan benefits? Definition of compensation. For the purposes of the Plan, compensation has a special meaning. Compensation is generally defined as your total compensation that is subject to income tax and paid to you by your Employer during the Plan Year.
Adjustments to compensation. The following adjustments to compensation will be made:
compensation paid after you terminate is generally excluded for Plan purposes. However, the following amounts will be included in compensation even though they are paid after you terminate employment, provided these amounts would otherwise have been considered compensation as described above and provided they are paid within 2 1/2 months after you terminate employment, or if later, the last day of the Plan Year in which you terminate employment:
compensation for services performed during your regular working hours, or for services outside your regular working hours (such as overtime or shift differential) or other similar payments that would have been made to you had you continued employment
compensation paid for unused accrued bona fide sick, vacation or other leave, if such amounts would have been included in compensation if paid prior to your termination of employment and you would have been able to use the leave if employment had continued
nonqualified unfunded deferred compensation if the payment is includible in gross income and would have been paid to you had you continued employment
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
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3 Is there a limit on the amount of compensation which can be considered? The Plan, by law, cannot recognize annual compensation in excess of a certain dollar limit. The limit for the Plan Year beginning in 2022 is $305,000. After 2022, the dollar limit may increase for cost-of-living adjustments.
Is there a limit on how much can be contributed to my account each year? Generally, the law imposes a maximum limit on the amount of contributions that may be made to your account and any other amounts allocated to any of your accounts during the Plan Year, excluding earnings. Beginning in 2022, this total cannot exceed the lesser of $61,000 or 100% of your annual compensation. After 2022, the dollar limit may increase for cost-of-living adjustments.
How is the money in the Plan invested?
The Trustee of the Plan has been designated to hold the assets of the Plan for the benefit of Plan participants and their beneficiaries in accordance with the terms of this Plan. The trust fund established by the Plan's Trustee will be the funding medium used for the accumulation of assets from which Plan benefits will be distributed.
Participant directed investments. You will be able to direct the investment of your entire interest in the Plan. The Administrator will provide you with information on the investment choices available to you, the procedures for making investment elections, the frequency with which you can change your investment choices and other important information. You need to follow the procedures for making investment elections and you should carefully review the information provided to you before you give investment directions. If you do not direct the investment of your applicable Plan accounts, then your accounts will be invested in accordance with the default investment alternatives established under the Plan.
Earnings or losses. When you direct investments, your accounts are segregated for purposes of determining the earnings or losses on these investments. Your account does not share in the investment performance of other participants who have directed their own investments. You should remember that the amount of your benefits under the Plan will depend in part upon your choice of investments. Gains as well as losses can occur and your Employer, the Administrator, and the Trustee will not provide investment advice or guarantee the performance of any investment you choose.
Will Plan expenses be deducted from my account balance? Expenses allocated to all accounts. The Plan permits the payment of Plan expenses to be made from the Plan's assets. The method of allocating the expenses depends on the nature of the expense itself. For example, certain administrative (or recordkeeping) expenses would typically be allocated proportionately to each participant. If the Plan pays $1,000 in expenses and there are 100 participants, your account balance would be charged $10 ($1,000/100) of the expense.
Terminated employee. After you terminate employment, your Employer reserves the right to charge your account for your pro rata share of the Plan's administration expenses, regardless of whether your Employer pays some of these expenses on behalf of current employees.
Expenses allocated to individual accounts. There are certain other expenses that may be paid just from your account. These are expenses that are specifically incurred by, or attributable to, you. For example, if you are married and get divorced, the Plan may incur additional expenses if a court mandates that a portion of your account be paid to your ex-spouse. These additional expenses may be paid directly from your account (and not the accounts of other participants) because they are directly attributable to you under the Plan. The Administrator can inform you when there will be a charge (or charges) directly to your account.
Your Employer may, from time to time, change the manner in which expenses are allocated.
ARTICLE V
VESTING
What is my vested interest in my account?
In order to reward employees who remain employed with the Employer for a long period of time, the law permits a "vesting schedule" to be applied to certain contributions that your Employer makes to the Plan. This means that you will not be entitled ("vested") in all of the contributions until you have been employed with the Employer for a specified period of time. 100% vested contributions. You are always 100% vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions:
matching contributions
nonelective contributions
rollover contributions
ARTICLE VI
DISTRIBUTIONS PRIOR TO TERMINATION
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Item 8.
4 Can I withdraw money from my account while working?
In-service distributions. You may be entitled to receive an in-service distribution. However, this distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at retirement. This distribution is made at your election and will be made in accordance with the forms of distributions available under the Plan.
Conditions and Limitations. Generally you may receive a distribution from the Plan from certain accounts prior to your termination of employment provided you satisfy the condition described below:
you have attained age 70 1/2
The following limitations apply to in-service distributions from certain accounts:
In-service distributions can only be made from accounts which are 100% vested.
ARTICLE VII
BENEFITS AND DISTRIBUTIONS UPON TERMINATION OF EMPLOYMENT When can I get money out of the Plan?
You may receive a distribution of the vested portion of some or all of your accounts in the Plan for the following reasons:
termination of employment for reasons other than death, disability or retirement normal retirement
disability
death
This Plan is designed to provide you with retirement benefits. However, distributions are permitted if you die or become disabled. In addition, certain payments are permitted when you terminate employment for any other reason. The rules under which you can receive a distribution are described in this Article. The rules regarding the payment of death benefits to your beneficiary are described in "Benefits and Distributions Upon Death."
You may also receive distributions while you are still employed with the Employer. (See the Article entitled "Distributions Prior to Termination" for a further explanation.)
Military Service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. There may also be benefits for employees who die or become disabled while on active duty. Employees who receive wage continuation payments while in the military may benefit from various changes in the law. If you think you may be affected by these rules, ask the Administrator for further details.
What happens if I terminate employment before death, disability or retirement? If your employment terminates for reasons other than , you will be entitled to receive only the "vested percentage" of your account balance.
You may elect to have your vested account balance distributed to you as soon as administratively feasible following your termination of employment. (See the question entitled "How will my benefits be paid to me?" for additional information.) What happens if I terminate employment at Normal Retirement Date? Normal Retirement Date. You will attain your Normal Retirement Age when you reach age 60. Your Normal Retirement Date is the date on which you attain your Normal Retirement Age.
Payment of benefits. You will become 100% vested in all of your accounts under the Plan if you retire on or after your Normal Retirement Age. However, the actual payment of benefits generally will not begin until you have terminated employment and reached your Normal Retirement Date. In such event, a distribution will be made, at your election, as soon as administratively feasible. If you remain employed past your Normal Retirement Date, you may generally defer the receipt of benefits until you actually terminate employment. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.) What happens if I terminate employment due to disability? Definition of disability. Under the Plan, disability is defined as a physical or mental condition resulting from bodily injury, disease, or mental disorder which renders you incapable of continuing any gainful occupation and which has lasted or can be expected to last for a continuous period of at least twelve (12) months. Your disability must be determined by a licensed physician. However, if your condition constitutes total disability under the federal Social Security Act, then the Administrator may deem that you are disabled for purposes of the Plan.
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Item 8.
5 Payment of benefits. If you become disabled while an employee, you will be entitled to your vested account balance under the Plan.
Payment of your disability benefits will be made to you as if you had retired. (See the question entitled "How will my benefits be paid to me?" for an explanation of how these benefits will be paid.) How will my benefits be paid to me?
Forms of distribution. If your vested account balance does not exceed $5,000, then your vested account balance may only be distributed to you in a single lump-sum payment. In determining whether your vested account balance exceeds the $5,000 threshold, "rollovers" (and any earnings allocable to "rollover" contributions) will be taken into account.
In addition, you must consent to receive any distribution of your vested account balance before it may be made. If your vested account balance exceeds $5,000, you may elect to receive a distribution of your vested account balance in:
a single lump-sum payment
partial withdrawals or installments but only with respect to Participants or beneficiaries who receive minimum required distributions, over a period of not more than your assumed life expectancy (or the assumed life expectancies of you and your beneficiary). (See below "Delaying distributions." for an explanation of minimum required distributions.) Delaying distributions. You may delay the distribution of your vested account balance. However, if you elect to delay the distribution of your vested account balance, there are rules that require that certain minimum distributions be made from the Plan. Distributions are required to begin not later than the April 1st following the later of the end of the year in which you reach age 70 1/2 or retire.
Medium of payment. Benefits under the Plan will generally be paid to you in cash only.
ARTICLE VIII
BENEFITS AND DISTRIBUTIONS UPON DEATH
What happens if I die while working for the Employer?
If you die while still employed by the Employer, then your vested account balance will be used to provide your beneficiary with a death benefit.
Who is the beneficiary of my death benefit?
Beneficiary designation. You may designate a beneficiary for your death benefit. The designation must be made in accordance with the procedures set forth by the Administrator. You should periodically review your designation to ensure it continues to meet your goals.
Divorce. If you have designated your spouse as your beneficiary for all or a part of your death benefit, then upon your divorce, the designation is no longer valid. This means that if you do not select a new beneficiary after your divorce, then you are treated as not having a beneficiary for that portion of the death benefit (unless you have remarried).
No beneficiary designation. At the time of your death, if you have not designated a beneficiary or your beneficiary is also not alive, the death benefit will be paid in the following order of priority to:
(a) your surviving spouse
(b) your children, including adopted children in equal shares (and if a child is not living, that child's share will be distributed to that child's heirs)
(c) your surviving parents, in equal shares
(d) your estate
How will the death benefit be paid to my beneficiary?
Form of distribution. If the death benefit payable to a beneficiary does not exceed $5,000, then the benefit may only be paid as a lump-sum. If the death benefit exceeds $5,000, your beneficiary may elect to have the death benefit paid in:
a single lump-sum payment
partial withdrawals or installments that do not exceed the limitations on when the entire death benefit must be paid. (See below "When must the last payment be made to my beneficiary?") When must the last payment be made to my beneficiary?
The law generally restricts the ability of a retirement plan to be used as a method of retaining money for purposes of your death estate. Thus, there are rules that are designed to ensure that death benefits are distributable to beneficiaries within certain time periods.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
6 Regardless of the method of distribution selected, if your designated beneficiary is a person (rather than your estate or some trusts) then minimum distributions of your death benefit will begin by the end of the year following the year of your death ("1-year rule") and must be paid over a period not extending beyond your beneficiary's life expectancy. If your spouse is the beneficiary, then under the "1-year rule," the start of payments will be delayed until the year in which you would have attained age 70 1/2 unless your spouse elects to begin distributions over his or her life expectancy before then. However, instead of the "1-year rule" your beneficiary may elect to have the entire death benefit paid by the end of the fifth year following the year of your death (the "5-year rule"). Generally, if your beneficiary is not a person, your entire death benefit must be paid under the "5-year rule." What happens if I'm a participant, terminate employment and die before receiving all my benefits? If you terminate employment with the Employer and subsequently die, your beneficiary will be entitled to your remaining interest in the Plan at the time of your death.
ARTICLE IX
TAX TREATMENT OF DISTRIBUTIONS
What are my tax consequences when I receive a distribution from the Plan? Generally, you must include any Plan distribution in your taxable income in the year in which you receive the distribution. The tax treatment may also depend on your age when you receive the distribution. Certain distributions made to you when you are under age 59 1/2 could be subject to an additional 10% tax.
Can I elect a rollover to reduce or defer tax on my distribution? Rollover or Direct Transfer. You may reduce, or defer entirely, the tax due on your distribution through use of one of the following methods:
(a) 60-day rollover. The rollover of all or a portion of the distribution to an Individual Retirement Account or Annuity (IRA) or another employer retirement plan willing to accept the rollover. This will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made within strict time frames (normally, within 60 days after you receive your distribution). Under certain circumstances, all or a portion of a distribution may not qualify for this rollover treatment. In addition, most distributions will be subject to mandatory federal income tax withholding at a rate of 20%. This will reduce the amount you actually receive. For this reason, if you wish to roll over all or a portion of your distribution amount, then the direct transfer option described in paragraph (b) below would be the better choice. (b) Direct rollover. For most distributions, you may request that a direct transfer (sometimes referred to as a direct rollover) of all or a portion of a distribution be made to either an Individual Retirement Account or Annuity (IRA) or another employer retirement plan willing to accept the transfer. A direct transfer will result in no tax being due until you withdraw funds from the IRA or other employer plan. Like the rollover, under certain circumstances all or a portion of the amount to be distributed may not qualify for this direct transfer. If you elect to actually receive the distribution rather than request a direct transfer, then in most cases 20% of the distribution amount will be withheld for federal income tax purposes.
Tax Notice. WHENEVER YOU RECEIVE A DISTRIBUTION THAT IS AN ELIGIBLE ROLLOVER DISTRIBUTION, THE ADMINISTRATOR WILL DELIVER TO YOU A MORE DETAILED EXPLANATION OF THESE OPTIONS. HOWEVER, THE RULES WHICH DETERMINE WHETHER YOU QUALIFY FOR FAVORABLE TAX TREATMENT ARE VERY COMPLEX. YOU SHOULD CONSULT WITH QUALIFIED TAX COUNSEL BEFORE MAKING A CHOICE.
ARTICLE X
LOANS
Is it possible to borrow money from the Plan?
Yes, you may request a participant loan from all your accounts using an application form provided by the Administrator. Your ability to obtain a participant loan depends on several factors. The Administrator will determine whether you satisfy these factors.
What are the loan rules and requirements?
There are various rules and requirements that apply to any loan, which are outlined in this question. In addition, your Employer has established a written loan program which explains these requirements in more detail. You can request a copy of the loan program from the Administrator. Generally, the rules for loans include the following:
Loans are available to participants on a reasonably equivalent basis. Loans will be made to participants who are creditworthy. The Administrator may request that you provide additional information, such as financial statements, tax returns and credit reports to make this determination.
All loans must be adequately secured. You must sign a promissory note along with a loan pledge. Generally, you must use your vested interest in the Plan as security for the loan, provided the outstanding balance of all your loans does not exceed 50% of your vested interest in the Plan. In certain cases, the Administrator may require you to provide additional collateral to receive a loan.
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Item 8.
7 You will be charged a commercially reasonable rate of interest. The Administrator will determine a reasonable rate of interest by reviewing the interest rates charged for similar types of loans by other lenders. The interest rate will be fixed for the duration of the loan.
If approved, your loan will provide for level amortization with payments to be made not less frequently than quarterly.
Generally, the term of your loan may not exceed five (5) years. However, if the loan is for the purchase of your principal residence, the Administrator may permit a longer repayment term. Generally, the Administrator will require that you repay your loan by agreeing to payroll deduction. If you have an unpaid leave of absence or go on military leave while you have an outstanding loan, please contact the Administrator to find out your repayment options. All loans will be considered a directed investment of your account under the Plan. All payments of principal and interest by you on a loan will be credited to your account.
The amount the Plan may loan to you is limited by rules under the Internal Revenue Code. Any new loans, when added to the outstanding balance of all other loans from the Plan, will be limited to the lesser of:
(a) $50,000 reduced by the excess, if any, of your highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date of the new loan over your current outstanding balance of loans as of the date of the new loan; or
(b) 1/2 of your vested interest in the Plan.
No loan in an amount less than $1,000 will be made.
The maximum number of Plan loans that you may have outstanding at any one time is 1. If you fail to make payments when they are due under the terms of the loan, you will be considered to be "in default." The Administrator will consider your loan to be in default if any scheduled loan repayment is not made by the end of the calendar quarter following the calendar quarter in which the missed payment was due. The Plan would then have authority to take all reasonable actions to collect the balance owed on the loan. This could include filing a lawsuit or foreclosing on the security for the loan. Under certain circumstances, a loan that is in default may be considered a distribution from the Plan and could be considered taxable income to you. In any event, your failure to repay a loan will reduce the benefit you would otherwise be entitled to from the Plan.
If you become entitled to a distribution from the Plan (except in the case of an in-service distribution), or if you terminate employment, your loan generally becomes due and payable in full immediately. You may repay the entire outstanding balance of the loan (including any accrued interest). If you do not repay the entire outstanding loan balance, your vested account balance will be reduced by the remaining outstanding balance of the loan.
The Administrator may periodically revise the Plan's loan policy. If you have any questions on participant loans or the current loan policy, please contact the Administrator.
ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES
Are my benefits protected?
As a general rule, your interest in your account, including your "vested interest," may not be alienated. This means that your interest may not be sold, used as collateral for a loan (other than for a Plan loan), given away or otherwise transferred. In addition, your creditors (other than the IRS) may not attach, garnish or otherwise interfere with your benefits under the Plan.
Are there any exceptions to the general rule?
There are three exceptions to this general rule. The Administrator must honor a "qualified domestic relations order." A "qualified domestic relations order" is defined as a decree or order issued by a court that obligates you to pay child support or alimony, or otherwise allocates a portion of your assets in the Plan to your spouse, former spouse, children or other dependents. If a qualified domestic relations order is received by the Administrator, all or a portion of your benefits may be used to satisfy that obligation. The Administrator will determine the validity of any domestic relations order received. You and your beneficiaries can obtain from the Administrator, without charge, a copy of the procedure used by the Administrator to determine whether a qualified domestic relations order is valid.
The second exception applies if you are involved with the Plan's operation. If you are found liable for any action that adversely affects the Plan, the Administrator can offset your benefits by the amount that you are ordered or required by a court to pay the Plan. All or a portion of your benefits may be used to satisfy any such obligation to the Plan.
The last exception applies to Federal tax levies and judgments. The Federal government is able to use your interest in the Plan to enforce a Federal tax levy and to collect a judgment resulting from an unpaid tax assessment.
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Item 8.
8 Can the Plan be amended?
Your Employer has the right to amend the Plan at any time. In no event, however, will any amendment authorize or permit any part of the Plan assets to be used for purposes other than the exclusive benefit of participants or their beneficiaries. Additionally, no amendment will cause any reduction in the amount credited to your account.
What happens if the Plan is discontinued or terminated? Although your Employer intends to maintain the Plan indefinitely, your Employer reserves the right to terminate the Plan at any time.
Upon termination, no further contributions will be made to the Plan and all amounts credited to your accounts will continue to be 100% vested. Your Employer will direct the distribution of your accounts in a manner permitted by the Plan as soon as practicable. (See the question entitled "How will my benefits be paid to me?" for a further explanation.) You will be notified if the Plan is terminated.
How do I submit a claim for Plan benefits?
Benefits will generally be paid to you and your beneficiaries without the necessity for formal claims. Contact the Administrator if you are entitled to benefits or if you think an error has been made in determining your benefits. Any such request should be in writing.
If the Administrator determines the claim is valid, then you will receive a statement describing the amount of benefit, the method or methods of payment, the timing of distributions and other information relevant to the payment of the benefit.
What if my benefits are denied?
Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Administrator will provide you with notification of the Plan's adverse determination. This written or electronic notification will be provided to you within a reasonable period of time.
ARTICLE XII
GENERAL INFORMATION ABOUT THE PLAN
There is certain general information which you may need to know about the Plan. This information has been summarized for you in this Article.
Plan Name
The full name of the Plan is City of Coachella Governmental Money Purchase Plan.
Plan Effective Dates
This Plan was originally effective on January 1, 2013. The amended and restated provisions of the Plan become effective on July 1, 2022. However, this restatement was made to conform the Plan to new tax laws and some provisions may be retroactively effective.
Other Plan Information
Valuations of the Plan assets are generally made every business day. Certain distributions are based on the Anniversary Date of the Plan. This date is the last day of the Plan Year.
The Plan's records are maintained on a twelve-month period of time. This is known as the Plan Year. The Plan Year begins on January 1st and ends on December 31st.
Employer Information
Your Employer's name, address and identification number are:
City of Coachella
53990 Enterprise Way
Coachella, California 92236
95-6000693
Administrator Information
The Administrator is responsible for the day-to-day administration and operation of the Plan. For example, the Administrator maintains the Plan records, including your account information, provides you with the forms you need to complete for Plan participation, and directs the payment of your account at the appropriate time. The Administrator will also allow you to review the formal Plan document and certain other materials related to the Plan. If you have any questions about the Plan or your participation, you should contact the Administrator. The Administrator may designate other parties to perform some duties of the Administrator.
The Administrator has the complete power, in its sole discretion, to determine all questions arising in connection with the administration, interpretation, and application of the Plan (and any related documents and underlying policies). Any such determination by the Administrator is conclusive and binding upon all persons.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
9 Your Administrator's name and contact information are:
City of Coachella
53990 Enterprise Way
Coachella, California 92236
760-398-3502
Plan Trustee Information and Plan Funding Medium
All money that is contributed to the Plan is held in a trust fund. The Trustees are responsible for the safekeeping of the trust fund. The trust fund established by the Plan's Trustee(s) will be the funding medium used for the accumulation of assets from which benefits will be distributed. While all the Plan assets are held in a trust fund, the Administrator separately accounts for each Participant's interest in the Plan.
The Plan's Trustees are:
Sandy Krause, Human Resources Manager
Nathan Statham, Trustee
53990 Enterprise Way
Coachella, California 92236
760-398-3502
The Trustees shall collectively be referred to as Trustee throughout this Summary of Plan Provisions.
DocuSign Envelope ID: AA6B0681-1920-4975-AA4E-73C4F71DF9B8
Item 8.
STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., City Engineer
SUBJECT: Resolution No. 2022-72, a Resolution of the City Council of the City of Coachella, California, Approving Final Parcel Map 37940 STAFF RECOMMENDATION:
Approve Resolution No. 2022-72, a Resolution of the City Council of the City of Coachella, California, Approving Final Parcel Map No. 37940.
DISCUSSION/ANALYSIS:
A Final Parcel Map has been prepared by an appropriately licensed professional for Parcel Map No. 37940 in accordance with the approved Tentative Tract Map 37940. Tentative Map 37940 proposed to subdivide an approximately 8.3-acre area consisting of two parcels into seven (7) commercial lots within the existing Fountainhead Shopping Plaza. This map is consistent with the Conditional Use Permits and planned development for the Fountainhead Plaza by converting the two remainder parcels from the first phase of development into seven individual commercial lots. The map is consistent with the General Plan 2020.
Final Parcel Map 37940 complies with the conditions of approval and is in accordance with the Subdivision Map Act of the State of California. Conditions of approval include improvements to all frontage roads, including Harrison Street and First Street, as well as ADA improvements at the intersections of First Street at Harrison Street, First Street at Palm Avenue and First Street at Orchard Street. Conditions of approval also include undergrounding overhead utility poles at along the project frontage. The developer has worked with the City Engineering department to produce approved street and utility plans for the entire tract and has already obtained permits for all required street improvements, which are a condition of approval for existing development. An additional Subdivision Improvement Agreement is not required since the offsite improvements are already underway and are conditions of approval applied to ongoing development within the development.
Staff recommends that the City Council Approve the Final Parcel Map 37940.
FISCAL IMPACT:
The approval of this Parcel Map will have no fiscal impact to the City of Coachella.
Attachments:
1. Resolution No 2022-72
2. Final Parcel Map 37940
Item 9.
RESOLUTION NO. 2022-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COACHELLA, CALIFORNIA, APPROVING FINAL PARCEL MAP NO.
37940
WHEREAS, Final Parcel Map has been prepared by an appropriately licensed professional as Parcel Map No. 37490, subdividing of those certain lands identified on the approved Tentative Parcel Map No. 37940; and
WHEREAS, as a requirement of the Subdivision Map Act of the State of California, as it existed at the time of the approval of Tentative Parcel Map No. 37940, that map complied with said requirements; and
WHEREAS, the City Council of the City of Coachella deems it is in the best interest of the citizens of the City of Coachella, California, that this division of land is consistent with the goals and policies of the General Plan.
NOW, THEREFORE, BE IT RESOLVED, that this City Council does hereby approve said Final Parcel Map No. 37940.
PASSED, APPROVED and ADOPTED this 13th day of July 2022. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney
Item 9.
Resolution No. 2022-72
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2022-72 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 13th day of July 2022, by the following vote of Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Andrea J. Carranza, MMC
Deputy City Clerk
Item 9.
Item 9.
P B L A Page 144
Item 9.
POR. LOT 4 COACHELLA L & W CO. SUBDIVISION M.B. 4/51-54 N S W E N S W E Page 145 Item 9.
N S W E N S W E N S W E N S W E N S W E N S W E Page 146 Item 9.
STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Investment Report – May 2022
STAFF RECOMMENDATION:
Staff recommends that the City Council receive and file the investment report for May of 2022 EXECUTIVE SUMMARY:
On June 23, 2021, the City of Coachella along with its component units (Sanitary District, Educational & Governmental Access Cable Corporation, Fire Protection District and Water Authority) approved and adopted the current “Statement of Investment Policy”.
Pursuant to Section 16 of that policy, the City Treasurer shall provide to the City Council a monthly investment report which provides a clear picture of the status of the current investment portfolio.
This report shall include, at a minimum, the following information for each type of investment held in the City’s investment portfolio: the issuer; amount of investment; current market value; yield on investment; income generated from investments; dollar amount invested on all securities, investments and moneys held by the local agency; and shall additionally include a description of any of the local agency’s funds, investments, or programs; and a description of unusual investment activity or developments during the month for which the report is prepared. This information shall be provided for all City and component unit pooled investments, as well as for bond accounts, which are managed by outside Fiscal Agents.
The interest rates presented are the most current rates available as of the date of these reports. The market values presented for pooled City investments are based on closing prices for the related investments as of the date of these reports. This information was obtained from the Wall Street Journal or other reliable sources of market prices.
The Market values presented for investments managed by fiscal agents are based on amounts reported by the fiscal agent on their investment statements. The purchase date and type of investment are not included for funds held by fiscal agents.
Item 10.
Attached is the Treasurer’s Report of Investments which includes an overview on investments which provides information on investment activity, withdrawals and deposits, interest earned, payment of interest and payment of principal as of the months ended May 31, 2022. In addition, this report includes detailed information and current activity on individual investments.
All City investments are in compliance with the guidelines established for Authorized Investments as specified in the Investment Policy, Section 8.
There was no unusual investment activity to report.
The City and Districts have sufficient moneys to meet their expenditure requirements for the next six months.
FISCAL IMPACT:
None, this report is receive and file only.
Item 10.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 4/30/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 5/31/2022
CASH ON HAND
Wells Fargo-General Checking N/A 11,790,326.18 8,696,541.73 - - - 20,486,867.91 Wells Fargo-Road Maintenance N/A 1,220,532.38 77,379.50 - - - 1,297,911.88 Wells Fargo-Gas Tax N/A 298,747.21 94,141.95 - - - 392,889.16 Mechanics Bank - Payroll Acct N/A 325,084.14 44,070.58 - - - 369,154.72 Petty Cash N/A 3,500.00 - - - - 3,500.00
Total Cash on Hand 13,638,189.91 8,912,133.76 - - - 22,550,323.67
INVESTMENTS
State of California - LAIF 0.68% 12,914,367.51 - - - - 12,914,367.51 Investment Management Acct 1.33% 24,160,584.85 - 58,587.98 - - 24,219,172.83 Total Investments 37,074,952.36 - 58,587.98 - - 37,133,540.34
CASH WITH FISCAL AGENT
US Bank varies 5,676,534.75 (777,000.00) 5.84 - - 4,899,540.59 ① Wells Fargo Bank, N.A. 5.83% 4.30 544,398.31 (272,198.31) - - 272,204.30 ② Wilmington Trust, N. A. 0.03% 0.70 - - - - 0.70 ③
Total Cash with Fiscal Agent 5,676,539.75 (232,601.69) (272,192.47) - - 5,171,745.59 Grand Total 56,389,682.02 8,679,532.07 (213,604.49) - - 64,855,609.60 Completed By:
Reviewed By: Nathan Statham-Finance Director
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of May 31, 2022
Fiscal Year 2021-2022
DESCRIPTION
E. Stoddard
Item 10.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 4/30/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 5/31/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of May 31, 2022
Fiscal Year 2021-2022
DESCRIPTION
CASH WITH FISCAL AGENT
US BANK
COACHELLA WATER AUTHORITY
CITY OF COACHELLA WATER: WATER REFUNDING BONDS 2012 SERIES A/C #: 6712016201 Bond Fund 0.03% 0.39 - - - - 0.39
A/C #: 6712016202 Interest Account 0.03% - - - - - -
A/C #: 6712016203 Principal Account 0.00% 0.21 - - - - 0.21 A/C #: 6712016204 Reserve Fund 0.00% 777,000.00 (777,000.00) - - - -
COACHELLA FINANCING AUTHORITY
Successor Agency to the Coachella Redevelopments Agency 2014 Series A/C #: 6712104701 Debt Service Fund 0.00% 0.51 - - - - 0.51 A/C #: 6712104702 Interest Account 0.00% - - - - - -
A/C #: 6712104703 Principal Account 0.00% - - - - - -
A/C #: 6712104704 Reserve Account 0.00% 827,612.50 - - - - 827,612.50
COACHELLA SANITARY DISTRICT
WASTEWATER SERIES 2015A
A/C #: 6712148601 Bond Fund 0.00% 21.20 - - - - 21.20
A/C #: 6712148602 Interest Account 0.00% - - - - - -
A/C #: 6712148603 Principal Account 0.00% - - - - - -
A/C #: 6712148604 Reserve Account 0.00% 310,175.00 - - - - 310,175.00 A/C #: 6712148605 Redemption Fund 0.00% - - - - - -
COACHELLA SANITARY DISTRICT: PROJECT FUND 2011
A/C #: 6711963500 Project Fund 2011 0.0100% 25,272.64 - 5.62 - - 25,278.26
Item 10.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 4/30/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 5/31/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of May 31, 2022
Fiscal Year 2021-2022
DESCRIPTION
COACHELLA SUCCESSOR AGENCY
MERGED PROJECT AREAS BONDS 98 & 99: BONDS 2013
A/C #: 6712071401 Interest Account 0.00% 0.17 - - - - 0.17 A/C #: 6712071402 Interest Account 0.00% - - - - - -
A/C #: 6712071403 Principal Account 0.00% - - - - - -
A/C #: 6712071404 Reserve Account 0.00% 525,984.89 - - - - 525,984.89 SA TO COACHELLA RDA REFUNDING BONDS SERIES 2016A & 2016B A/C #: 6712160601 Debt Service 0.00% 1.32 - - - - 1.32
A/C #: 6712160602 Interest Account 0.00% - - - - - -
A/C #: 6712160603 Principal Account 0.00% - - - - - -
A/C #: 6712160604 Reserve Account 0.00% 2,147,669.03 - - - - 2,147,669.03 COACHELLA LEASE BONDS 2016
A/C #: 6712179801 Payment Account 0.0000% 450,305.22 - 0.22 - - 450,305.44 A/C #: 6712179802 Interest Account 0.0000% 160.41 - - - - 160.41 A/C #: 6712179803 Principal Account 0.0000% - - - - - - A/C #: 6712179804 Reserve Account 0.0000% 612,331.26 - - - - 612,331.26 TOTAL US BANK OF CALIFORNIA 5,676,534.75 (777,000.00) 5.84 - - 4,899,540.59 ① WELLS FARGO BANK, N.A.
GAS TAX BONDS SERIES 2019
A/C #: 83925300 Debt Service Fund 0.0000% 2.61 272,200.00 (272,198.31) - - 4.30 A/C #: 83925301 Interest Account 0.0000% 0.78 87,199.22 - - - 87,200.00 A/C #: 83925302 Principal Account 0.0000% 0.91 184,999.09 - - 185,000.00 TOTAL WELLS FARGO BANK, N.A. 4.30 544,398.31 (272,198.31) - - 272,204.30 ②
Item 10.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 4/30/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 5/31/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of May 31, 2022
Fiscal Year 2021-2022
DESCRIPTION
WILMINGTON TRUST, N. A.
CITY OF COACHELLA TAXABLE PENSION OBLIGATION BONDS
A/C #: 144613-001 Interest Account 0.03% 0.70 - - - - 0.70 A/C #: 144613-002 Principal Account 0.00% - - - - - -
TOTAL WILMINGTGON TRUST BANK, N.A. 0.70 - - - - 0.70 ③
TOTAL CASH WITH FISCAL AGENT 5,676,539.75 (232,601.69) (272,192.47) - - 5,171,745.59
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 09/15/2019 1.500% 09/15/2022
912828YF1 140,000.00 AA+ Aaa 01/06/22 01/10/22 141,110.16 0.33 445.11 140,474.50 140,065.63
US TREASURY NOTES
DTD 07/15/2020 0.125% 07/15/2023
912828ZY9 1,270,000.00 AA+ Aaa 02/17/22 02/18/22 1,249,015.23 1.31 600.79 1,253,236.78 1,241,028.13
US TREASURY NOTES
DTD 08/01/2016 1.250% 07/31/2023
912828S92 140,000.00 AA+ Aaa 04/02/19 04/04/19 134,071.88 2.28 584.94 138,404.40 138,425.00
US TREASURY NOTES
DTD 11/15/2013 2.750% 11/15/2023
912828WE6 355,000.00 AA+ Aaa 03/06/19 03/08/19 358,591.60 2.52 450.99 356,115.43 357,107.81
US TREASURY NOTES
DTD 11/30/2016 2.125% 11/30/2023
912828U57 460,000.00 AA+ Aaa 01/07/19 01/09/19 451,770.31 2.52 26.71 457,479.48 458,418.75
US TREASURY NOTES
DTD 12/31/2018 2.625% 12/31/2023
9128285U0 70,000.00 AA+ Aaa 01/30/19 01/31/19 70,207.81 2.56 771.55 70,066.92 70,273.43
US TREASURY NOTES
DTD 05/01/2017 2.000% 04/30/2024
912828X70 350,000.00 AA+ Aaa 06/03/19 06/05/19 351,585.94 1.90 608.70 350,618.97 346,664.08
US TREASURY N/B NOTES
DTD 07/15/2021 0.375% 07/15/2024
91282CCL3 1,285,000.00 AA+ Aaa 02/17/22 02/18/22 1,248,206.84 1.59 1,823.67 1,252,523.12 1,226,974.28
US TREASURY NOTES
DTD 07/31/2017 2.125% 07/31/2024
9128282N9 125,000.00 AA+ Aaa 08/01/19 08/05/19 126,933.59 1.80 887.86 125,839.45 123,808.60
US TREASURY NOTES
DTD 08/31/2017 1.875% 08/31/2024
9128282U3 165,000.00 AA+ Aaa 09/03/19 09/05/19 169,299.02 1.33 781.84 166,939.51 162,344.52
US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 295,000.00 AA+ Aaa 10/01/19 10/03/19 303,815.43 1.50 1,061.92 299,117.73 291,681.25
US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 195,000.00 AA+ Aaa 01/11/21 01/12/21 203,630.27 0.33 254.35 200,490.29 189,789.83
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 425,000.00 AA+ Aaa 01/03/20 01/07/20 434,844.73 1.63 24.68 430,024.17 419,289.06
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 580,000.00 AA+ Aaa 12/02/19 12/04/19 591,917.19 1.69 33.67 585,968.40 572,206.25
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY N/B NOTES
DTD 01/15/2022 1.125% 01/15/2025
91282CDS7 1,265,000.00 AA+ Aaa 02/17/22 02/18/22 1,244,888.48 1.69 5,385.86 1,246,839.03 1,215,190.63
US TREASURY NOTES
DTD 02/17/2015 2.000% 02/15/2025
912828J27 130,000.00 AA+ Aaa 03/02/20 03/04/20 137,205.86 0.85 761.33 133,943.51 127,643.75
US TREASURY NOTES
DTD 08/31/2020 0.250% 08/31/2025
91282CAJ0 555,000.00 AA+ Aaa 08/02/21 08/06/21 548,799.61 0.53 350.65 550,047.20 511,640.63
US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 460,000.00 AA+ Aaa 09/07/21 09/09/21 452,273.44 0.67 194.81 453,655.04 423,128.15
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 350,000.00 AA+ Aaa 03/01/22 03/01/22 333,361.33 1.59 76.09 334,503.69 321,289.08
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 410,000.00 AA+ Aaa 10/04/21 10/06/21 401,319.53 0.78 89.13 402,709.81 376,367.21
US TREASURY NOTES
DTD 11/30/2020 0.375% 11/30/2025
91282CAZ4 210,000.00 AA+ Aaa 11/02/21 11/03/21 204,659.77 1.01 2.15 205,413.43 193,134.38
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 190,000.00 AA+ Aaa 04/05/21 04/07/21 185,494.92 0.89 299.17 186,589.27 174,414.07
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 350,000.00 AA+ Aaa 01/11/21 01/12/21 347,867.19 0.50 551.11 348,460.94 321,289.08
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 160,000.00 AA+ Aaa 05/03/22 05/04/22 145,500.00 2.95 200.55 145,796.78 146,524.99
US TREASURY NOTES
DTD 01/31/2019 2.625% 01/31/2026
9128286A3 255,000.00 AA+ Aaa 02/04/21 02/08/21 282,063.87 0.47 2,237.41 274,948.07 253,485.94
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 270,000.00 AA+ Aaa 02/26/21 02/26/21 264,410.16 0.80 338.43 265,838.67 247,260.92
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 475,000.00 AA+ Aaa 07/02/21 07/07/21 465,871.09 0.80 595.39 467,670.62 434,996.07
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,320,000.00 AA+ Aaa 02/17/22 02/18/22 1,246,626.56 1.84 1,654.56 1,251,863.89 1,208,831.19
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 310,000.00 AA+ Aaa 03/05/21 03/09/21 305,676.95 0.79 391.71 306,745.22 284,618.75
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 630,000.00 AA+ Aaa 12/03/21 12/07/21 613,019.53 1.15 796.06 614,955.13 578,418.75
US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 290,000.00 AA+ Aaa 06/02/21 06/04/21 289,365.62 0.79 5.94 289,491.66 267,343.75
US TREASURY N/B NOTES
DTD 09/30/2021 0.875% 09/30/2026
91282CCZ2 300,000.00 AA+ Aaa 04/05/22 04/07/22 276,222.66 2.77 444.67 277,021.53 276,093.75 Security Type Sub-Total 13,785,000.00 13,579,626.57 1.42 22,731.80 13,583,792.64 13,099,747.71 Supra-National Agency Bond / Note
INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 150,000.00 AAA Aaa 11/17/20 11/24/20 149,677.50 0.32 7.29 149,840.66 145,221.30
INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 300,000.00 AAA Aaa 09/15/21 09/23/21 299,778.00 0.52 283.33 299,828.84 285,347.40 Security Type Sub-Total 450,000.00 449,455.50 0.46 290.62 449,669.50 430,568.70 Municipal Bond / Note
CA ST TXBL GO BONDS
DTD 10/24/2019 2.400% 10/01/2023
13063DRJ9 190,000.00 AA- Aa2 10/16/19 10/24/19 193,801.90 1.87 760.00 191,287.57 189,659.90
MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 200,000.00 AA Aa2 07/24/20 08/06/20 200,000.00 0.57 94.17 200,000.00 188,330.00
OR ST DEPT TRANS TXBL REV BONDS
DTD 09/17/2020 0.566% 11/15/2024
68607DVA0 135,000.00 AAA Aa1 09/11/20 09/17/20 135,000.00 0.57 33.96 135,000.00 126,453.15
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 40,000.00 AA Aa3 09/03/20 09/16/20 40,282.80 1.11 209.67 40,182.07 37,682.80
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 110,000.00 AA Aa3 09/03/20 09/16/20 110,000.00 1.26 576.58 110,000.00 103,627.70
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Municipal Bond / Note
LOS ANGELES CCD, CA TXBL GO BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 80,000.00 AA+ Aaa 10/30/20 11/10/20 80,000.00 0.77 206.13 80,000.00 74,034.40
NJ TURNPIKE AUTHORITY TXBL REV BONDS
DTD 02/04/2021 1.047% 01/01/2026
646140DP5 40,000.00 AA- A1 01/22/21 02/04/21 40,000.00 1.05 174.50 40,000.00 36,525.60 Security Type Sub-Total 795,000.00 799,084.70 1.06 2,055.01 796,469.64 756,313.55 Federal Agency Commercial Mortgage-Backed Security
FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
3137BM6P6 39,782.21 AA+ Aaa 04/04/18 04/09/18 40,120.97 2.88 102.44 39,795.33 39,780.29
FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
3137AWQH1 89,671.95 AA+ Aaa 09/04/19 09/09/19 90,996.01 1.78 172.39 89,748.36 89,531.21
FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
3136AJB54 77,547.93 AA+ Aaa 12/13/19 12/18/19 81,316.28 2.14 216.23 79,116.64 77,881.65 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
3137BGK24 110,000.00 AA+ Aaa 03/19/20 03/25/20 115,448.44 1.95 280.68 112,908.81 110,171.78 Security Type Sub-Total 317,002.09 327,881.70 2.07 771.74 321,569.14 317,364.93 Federal Agency Bond / Note
FANNIE MAE NOTES
DTD 05/22/2020 0.250% 05/22/2023
3135G04Q3 255,000.00 AA+ Aaa 05/20/20 05/22/20 254,232.45 0.35 15.94 254,751.16 250,349.82
FREDDIE MAC NOTES
DTD 06/11/2018 2.750% 06/19/2023
3137EAEN5 325,000.00 AA+ Aaa 01/07/19 01/09/19 327,281.50 2.58 4,021.88 325,538.73 326,843.08
FREDDIE MAC NOTES
DTD 06/26/2020 0.250% 06/26/2023
3137EAES4 175,000.00 AA+ Aaa 06/24/20 06/26/20 174,489.00 0.35 188.37 174,818.00 171,376.28
FANNIE MAE NOTES
DTD 07/10/2020 0.250% 07/10/2023
3135G05G4 280,000.00 AA+ Aaa 07/08/20 07/10/20 279,398.00 0.32 274.17 279,777.89 273,878.36
FREDDIE MAC NOTES
DTD 08/21/2020 0.250% 08/24/2023
3137EAEV7 185,000.00 AA+ Aaa 08/19/20 08/21/20 184,811.30 0.28 124.62 184,922.84 180,449.56
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Bond / Note
FANNIE MAE NOTES
DTD 09/14/2018 2.875% 09/12/2023
3135G0U43 330,000.00 AA+ Aaa 12/03/18 12/06/18 329,333.40 2.92 2,081.98 329,820.81 332,380.95
FEDERAL FARM CREDIT BANK (CALLABLE)
DTD 09/21/2020 0.250% 09/21/2023
3133EMAM4 250,000.00 AA+ Aaa 10/07/20 10/09/20 249,575.00 0.31 121.53 249,811.77 243,212.75
FEDERAL HOME LOAN BANKS NOTES
DTD 12/09/2013 3.375% 12/08/2023
3130A0F70 190,000.00 AA+ Aaa 01/30/19 01/31/19 195,600.04 2.72 3,081.56 191,753.96 192,723.27
FEDERAL HOME LOAN BANK NOTES
DTD 04/16/2020 0.500% 04/14/2025
3130AJHU6 200,000.00 AA+ Aaa 04/15/20 04/16/20 199,008.00 0.60 130.56 199,430.04 187,524.80
FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
3135G03U5 260,000.00 AA+ Aaa 04/22/20 04/24/20 259,464.40 0.67 176.04 259,689.92 244,489.18
FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
3135G03U5 360,000.00 AA+ Aaa 06/03/20 06/05/20 361,843.20 0.52 243.75 361,092.27 338,523.48
FREDDIE MAC NOTES (CALLABLE)
DTD 05/29/2020 0.750% 05/28/2025
3134GVB31 200,000.00 AA+ Aaa 06/05/20 06/09/20 199,400.00 0.81 12.50 199,638.81 188,322.80
FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 175,000.00 AA+ Aaa 07/02/20 07/07/20 175,201.25 0.48 398.61 175,123.91 163,300.20
FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 225,000.00 AA+ Aaa 10/01/20 10/05/20 226,055.25 0.40 512.50 225,683.82 209,957.40
FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 305,000.00 AA+ Aaa 06/17/20 06/19/20 304,368.65 0.54 694.72 304,615.10 284,608.92
FREDDIE MAC NOTES
DTD 07/23/2020 0.375% 07/21/2025
3137EAEU9 185,000.00 AA+ Aaa 07/21/20 07/23/20 184,078.70 0.48 250.52 184,421.16 171,446.16
FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 195,000.00 AA+ Aaa 08/25/20 08/27/20 194,087.40 0.47 195.00 194,409.11 180,245.52
FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 420,000.00 AA+ Aaa 10/21/20 10/22/20 417,727.80 0.49 420.00 418,482.20 388,221.12
FREDDIE MAC NOTES
DTD 09/25/2020 0.375% 09/23/2025
3137EAEX3 285,000.00 AA+ Aaa 09/23/20 09/25/20 284,142.15 0.44 201.88 284,430.92 263,111.72
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Bond / Note
FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 185,000.00 AA+ Aaa 11/09/20 11/12/20 184,337.70 0.57 61.67 184,543.55 170,929.27 Security Type Sub-Total 4,985,000.00 4,984,435.19 0.88 13,207.80 4,982,755.97 4,761,894.64 Corporate Note
ADOBE INC CORP NOTE
DTD 02/03/2020 1.700% 02/01/2023
00724PAA7 100,000.00 A+ A2 01/22/20 02/03/20 99,863.00 1.75 566.67 99,969.32 99,295.80
PFIZER INC CORP NOTES
DTD 03/11/2019 2.950% 03/15/2024
717081ES8 260,000.00 A+ A2 04/02/19 04/04/19 263,146.00 2.69 1,619.22 261,104.11 261,126.32
MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 04/22/2021 0.731% 04/05/2024
61772BAA1 25,000.00 A- A1 04/19/21 04/22/21 25,000.00 0.73 28.43 25,000.00 24,468.80
MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 04/22/2021 0.731% 04/05/2024
61772BAA1 75,000.00 A- A1 04/20/21 04/22/21 75,094.50 0.69 85.28 75,040.82 73,406.40 AMAZON.COM INC CORPORATE NOTES
DTD 05/12/2021 0.450% 05/12/2024
023135BW5 115,000.00 AA A1 05/10/21 05/12/21 114,832.10 0.50 27.31 114,891.08 110,262.58
TEXAS INSTRUMENTS INC CORP NOTES
(CALLAB
DTD 05/04/2017 2.625% 05/15/2024
882508BB9 300,000.00 A+ Aa3 02/23/22 02/25/22 304,716.00 1.90 350.00 304,111.55 299,641.80
WALMART INC CORPORATE NOTES
DTD 04/23/2019 2.850% 07/08/2024
931142EL3 360,000.00 AA Aa2 07/10/19 07/12/19 371,235.60 2.19 4,075.50 362,602.27 361,269.36
JPMORGAN CHASE & CO CORPORATE
NOTES (CAL
DTD 09/16/2020 0.653% 09/16/2024
46647PBS4 115,000.00 A- A2 09/09/20 09/16/20 115,000.00 0.65 156.45 115,000.00 111,288.26
BANK OF AMERICA CORP (CALLABLE)
CORPORAT
DTD 10/21/2020 0.810% 10/24/2024
06051GJH3 150,000.00 A- A2 10/16/20 10/21/20 150,000.00 0.81 124.88 150,000.00 144,616.05
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note
JOHN DEERE CAPITAL CORP CORPORATE
NOTES
DTD 01/10/2022 1.250% 01/10/2025
24422EVY2 190,000.00 A A2 03/08/22 03/10/22 185,200.60 2.17 930.21 185,584.74 181,644.94
MICROSOFT CORP (CALLABLE) NOTES
DTD 02/12/2015 2.700% 02/12/2025
594918BB9 190,000.00 AAA Aaa 03/15/21 03/17/21 202,921.90 0.92 1,553.25 198,656.51 189,208.27
TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 02/13/2020 1.800% 02/13/2025
89236TGT6 60,000.00 A+ A1 05/20/20 05/26/20 60,586.20 1.58 324.00 60,335.94 57,905.94
TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 02/13/2020 1.800% 02/13/2025
89236TGT6 90,000.00 A+ A1 05/20/20 05/26/20 90,879.30 1.58 486.00 90,503.91 86,858.91
NOVARTIS CAPITAL CORP
DTD 02/14/2020 1.750% 02/14/2025
66989HAP3 295,000.00 AA- A1 05/06/20 05/08/20 305,504.95 0.98 1,534.41 300,878.35 287,280.44 AMAZON.COM INC CORPORATE NOTES
DTD 04/13/2022 3.000% 04/13/2025
023135CE4 245,000.00 AA A1 04/11/22 04/13/22 244,610.45 3.06 980.00 244,627.87 245,742.60
CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 50,000.00 BBB+ A3 04/27/21 05/04/21 50,000.00 0.98 40.88 50,000.00 47,440.30
CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 55,000.00 BBB+ A3 04/28/21 05/04/21 55,145.75 0.91 44.96 55,106.46 52,184.33
GOLDMAN SACHS GROUP INC CORPORATE
NOTES
DTD 05/22/2015 3.750% 05/22/2025
38148LAE6 135,000.00 BBB+ A2 02/12/21 02/17/21 150,819.30 0.94 126.56 145,758.42 136,105.52
JPMORGAN CHASE & CO CORPORATE
NOTES
DTD 06/01/2021 0.824% 06/01/2025
46647PCH7 115,000.00 A- A2 05/24/21 06/01/21 115,000.00 0.82 473.80 115,000.00 109,140.75
JPMORGAN CHASE & CO CORPORATE
NOTES
DTD 08/10/2021 0.768% 08/09/2025
46647PCM6 50,000.00 A- A2 08/03/21 08/10/21 50,000.00 0.77 119.47 50,000.00 47,058.25
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note
BRISTOL-MYERS SQUIBB CO CORPORATE
NOTES
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 72,000.00 A+ A2 06/17/21 06/21/21 71,282.88 0.98 27.00 71,436.93 66,171.82
BANK OF AMERICA CORP NOTES
(CALLABLE)
DTD 03/22/2022 3.384% 04/02/2026
06051GKM0 220,000.00 A- A2 03/17/22 03/22/22 220,000.00 3.38 1,426.92 220,000.00 217,019.88
TARGET CORP CORPORATE NOTES
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 25,000.00 A A2 01/19/22 01/24/22 24,957.50 1.99 171.98 24,960.49 23,581.73
TARGET CORP CORPORATE NOTES
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 125,000.00 A A2 01/27/22 01/31/22 124,923.75 1.96 859.90 124,928.85 117,908.62
BANK OF NY MELLON CORP (CALLABLE)
CORPOR
DTD 01/26/2022 2.050% 01/26/2027
06406RBA4 200,000.00 A A1 01/26/22 01/28/22 200,644.00 1.98 1,423.61 200,599.46 187,487.60 Security Type Sub-Total 3,617,000.00 3,671,363.78 1.75 17,556.69 3,646,097.08 3,538,115.27 Certificate of Deposit
SKANDINAV ENSKILDA BANK LT CD
DTD 09/03/2019 1.860% 08/26/2022
83050PDR7 295,000.00 A-1 P-1 08/29/19 09/03/19 295,000.00 1.85 1,447.96 295,000.00 295,244.56
BARCLAYS BANK PLC NY CERT DEPOS
DTD 02/03/2022 1.050% 02/01/2023
06742TG34 250,000.00 A-1 P-1 02/02/22 02/03/22 250,000.00 1.05 860.42 250,000.00 247,350.09
CREDIT SUISSE NEW YORK CERT DEPOS
DTD 03/23/2021 0.590% 03/17/2023
22552G3C2 155,000.00 A-1 P-1 03/19/21 03/23/21 155,000.00 0.59 193.06 155,000.00 152,606.49 Security Type Sub-Total 700,000.00 700,000.00 1.29 2,501.44 700,000.00 695,201.14 Asset-Backed Security
HAROT 2019-1 A3
DTD 02/27/2019 2.830% 03/20/2023
43814WAC9 3,274.14 AAA NR 02/19/19 02/27/19 3,274.05 2.83 3.35 3,274.12 3,276.23
HYUNDAI AUTO RECEIVABLES TRUST
DTD 04/10/2019 2.660% 06/15/2023
44932NAD2 688.70 AAA NR 04/03/19 04/10/19 688.61 2.66 0.81 688.68 689.01
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
HAROT 2019-2 A3
DTD 05/29/2019 2.520% 06/21/2023
43815MAC0 13,344.45 NR Aaa 05/21/19 05/29/19 13,343.95 2.52 9.34 13,344.32 13,363.90 TAOT 2019-A A3
DTD 02/13/2019 2.910% 07/15/2023
89239AAD5 15,980.44 AAA Aaa 02/05/19 02/13/19 15,977.53 2.91 20.67 15,979.70 16,014.04 ALLYA 2019-1 A3
DTD 02/13/2019 2.910% 09/15/2023
02004WAC5 2,670.78 NR Aaa 02/05/19 02/13/19 2,670.46 2.91 3.45 2,670.69 2,670.51 NAROT 2019-A A3
DTD 02/13/2019 2.900% 10/15/2023
65479KAD2 11,805.14 NR Aaa 02/05/19 02/13/19 11,803.35 2.90 15.22 11,804.61 11,824.64 COPAR 2019-1 A3
DTD 05/30/2019 2.510% 11/15/2023
14042WAC4 11,698.73 AAA Aaa 05/21/19 05/30/19 11,696.35 2.51 13.05 11,697.95 11,713.74 NAROT 2019-B A3
DTD 05/28/2019 2.500% 11/15/2023
65479HAC1 19,558.61 NR Aaa 05/21/19 05/28/19 19,554.18 2.51 21.73 19,557.17 19,591.27 HAROT 2020-1 A3
DTD 02/26/2020 1.610% 04/22/2024
43813RAC1 59,314.14 NR Aaa 02/19/20 02/26/20 59,302.52 1.61 26.53 59,308.85 59,145.29 TAOT 2020-A A3
DTD 02/12/2020 1.660% 05/15/2024
89232HAC9 75,503.70 AAA Aaa 02/04/20 02/12/20 75,498.25 1.66 55.70 75,501.20 75,347.22 CARMX 2020-1 A3
DTD 01/22/2020 1.890% 12/16/2024
14315XAC2 63,745.42 AAA NR 01/14/20 01/22/20 63,732.91 1.89 53.55 63,738.93 63,525.06 HAROT 2021-1 A3
DTD 02/24/2021 0.270% 04/21/2025
43813GAC5 55,000.00 NR Aaa 02/17/21 02/24/21 54,998.99 0.27 4.13 54,999.30 53,902.66 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
44933LAC7 45,000.00 AAA NR 04/20/21 04/28/21 44,995.27 0.38 7.60 44,996.45 43,794.50 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
14316NAC3 30,000.00 AAA NR 01/20/21 01/27/21 29,994.07 0.34 4.53 29,995.70 29,422.17 TAOT 2021-C A3
DTD 09/27/2021 0.430% 01/15/2026
89239BAC5 70,000.00 AAA Aaa 09/21/21 09/27/21 69,994.42 0.43 13.38 69,995.30 67,319.16 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
14314QAC8 65,000.00 AAA NR 04/13/21 04/21/21 64,985.99 0.52 15.02 64,989.22 62,641.62
Item 10.
Managed Account Detail of Securities Held For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
HART 2021-C A3
DTD 11/17/2021 0.740% 05/15/2026
44935FAD6 35,000.00 AAA NR 11/09/21 11/17/21 34,992.19 0.75 11.51 34,993.12 33,686.06 DCENT 2021-A1 A1
DTD 09/27/2021 0.580% 09/15/2026
254683CP8 55,000.00 AAA Aaa 09/20/21 09/27/21 54,988.22 0.58 14.18 54,989.82 52,039.81 Security Type Sub-Total 632,584.25 632,491.31 1.15 293.75 632,525.13 619,966.89 Managed Account Sub-Total 25,281,586.34 25,144,338.75 1.33 59,408.85 25,112,879.10 24,219,172.83 $25,281,586.34 $25,144,338.75 1.33% $59,408.85 $25,112,879.10 $24,219,172.83 $24,278,581.68
$59,408.85
Total Investments
Accrued Interest
Securities Sub-Total
Item 10.
Managed Account Security Transactions & Interest For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
05/04/22 US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
05/03/22 91282CBH3 160,000.00 (145,500.00) (154.14) (145,654.14) Transaction Type Sub-Total 160,000.00 (145,500.00) (154.14) (145,654.14)
INTEREST
05/01/22 CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
05/01/22 172967MX6 105,000.00 0.00 515.03 515.03
05/01/22 MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
05/01/22 605581MZ7 200,000.00 0.00 565.00 565.00
05/25/22 FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
05/01/22 3137BM6P6 46,447.62 0.00 119.60 119.60
05/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
05/01/22 3137AWQH1 92,332.87 0.00 177.51 177.51
05/25/22 FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
05/01/22 3136AJB54 85,999.54 0.00 291.96 291.96
05/25/22 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
05/01/22 3137BGK24 110,000.00 0.00 280.68 280.68
05/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
05/01/22 3137BLUR7 8,014.19 0.00 18.14 18.14
05/02/22 05/02/22 MONEY MARKET FUND MONEY0002 0.00 0.00 16.86 16.86 05/07/22 FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
05/07/22 3135G06G3 185,000.00 0.00 462.50 462.50
05/12/22 AMAZON.COM INC CORPORATE NOTES
DTD 05/12/2021 0.450% 05/12/2024
05/12/22 023135BW5 115,000.00 0.00 258.75 258.75
05/13/22 BRISTOL-MYERS SQUIBB CO
CORPORATE NOTES
DTD 11/13/2020 0.750% 11/13/2025
05/13/22 110122DN5 72,000.00 0.00 270.00 270.00
05/15/22 HART 2021-C A3
DTD 11/17/2021 0.740% 05/15/2026
05/15/22 44935FAD6 35,000.00 0.00 21.58 21.58
05/15/22 TAOT 2021-C A3
DTD 09/27/2021 0.430% 01/15/2026
05/15/22 89239BAC5 70,000.00 0.00 25.08 25.08
05/15/22 HYUNDAI AUTO RECEIVABLES TRUST
DTD 04/10/2019 2.660% 06/15/2023
05/15/22 44932NAD2 3,833.46 0.00 8.50 8.50
Item 10.
Managed Account Security Transactions & Interest For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
INTEREST
05/15/22 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
05/15/22 14314QAC8 65,000.00 0.00 28.17 28.17
05/15/22 CARMX 2020-1 A3
DTD 01/22/2020 1.890% 12/16/2024
05/15/22 14315XAC2 68,740.58 0.00 108.27 108.27
05/15/22 TAOT 2019-A A3
DTD 02/13/2019 2.910% 07/15/2023
05/15/22 89239AAD5 20,897.29 0.00 50.68 50.68
05/15/22 TEXAS INSTRUMENTS INC CORP NOTES
(CALLAB
DTD 05/04/2017 2.625% 05/15/2024
05/15/22 882508BB9 300,000.00 0.00 3,937.50 3,937.50
05/15/22 COPAR 2019-1 A3
DTD 05/30/2019 2.510% 11/15/2023
05/15/22 14042WAC4 15,552.33 0.00 32.53 32.53
05/15/22 DCENT 2021-A1 A1
DTD 09/27/2021 0.580% 09/15/2026
05/15/22 254683CP8 55,000.00 0.00 26.58 26.58
05/15/22 ALLYA 2019-1 A3
DTD 02/13/2019 2.910% 09/15/2023
05/15/22 02004WAC5 4,782.13 0.00 11.60 11.60
05/15/22 OR ST DEPT TRANS TXBL REV BONDS
DTD 09/17/2020 0.566% 11/15/2024
05/15/22 68607DVA0 135,000.00 0.00 382.05 382.05
05/15/22 NAROT 2019-A A3
DTD 02/13/2019 2.900% 10/15/2023
05/15/22 65479KAD2 15,785.50 0.00 38.15 38.15
05/15/22 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
05/15/22 14316NAC3 30,000.00 0.00 8.50 8.50
05/15/22 TAOT 2020-A A3
DTD 02/12/2020 1.660% 05/15/2024
05/15/22 89232HAC9 83,482.97 0.00 115.48 115.48
05/15/22 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
05/15/22 44933LAC7 45,000.00 0.00 14.25 14.25
05/15/22 NAROT 2019-B A3
DTD 05/28/2019 2.500% 11/15/2023
05/15/22 65479HAC1 23,675.23 0.00 49.32 49.32
05/15/22 US TREASURY NOTES
DTD 11/15/2013 2.750% 11/15/2023
05/15/22 912828WE6 355,000.00 0.00 4,881.25 4,881.25
05/18/22 HAROT 2019-1 A3
DTD 02/27/2019 2.830% 03/20/2023
05/18/22 43814WAC9 6,923.62 0.00 16.33 16.33
05/21/22 HAROT 2021-1 A3
DTD 02/24/2021 0.270% 04/21/2025
05/21/22 43813GAC5 55,000.00 0.00 12.38 12.38
Item 10.
Managed Account Security Transactions & Interest For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
INTEREST
05/21/22 HAROT 2019-2 A3
DTD 05/29/2019 2.520% 06/21/2023
05/21/22 43815MAC0 17,544.22 0.00 36.84 36.84
05/21/22 HAROT 2020-1 A3
DTD 02/26/2020 1.610% 04/22/2024
05/21/22 43813RAC1 65,174.24 0.00 87.44 87.44
05/22/22 GOLDMAN SACHS GROUP INC
CORPORATE NOTES
DTD 05/22/2015 3.750% 05/22/2025
05/22/22 38148LAE6 135,000.00 0.00 2,531.25 2,531.25
05/22/22 FANNIE MAE NOTES
DTD 05/22/2020 0.250% 05/22/2023
05/22/22 3135G04Q3 255,000.00 0.00 318.75 318.75
05/24/22 INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
05/24/22 459058JM6 150,000.00 0.00 187.50 187.50
05/28/22 FREDDIE MAC NOTES (CALLABLE)
DTD 05/29/2020 0.750% 05/28/2025
05/28/22 3134GVB31 200,000.00 0.00 750.00 750.00
05/31/22 US TREASURY NOTES
DTD 11/30/2020 0.375% 11/30/2025
05/31/22 91282CAZ4 210,000.00 0.00 393.75 393.75
05/31/22 US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
05/31/22 9128283J7 1,005,000.00 0.00 10,678.13 10,678.13 05/31/22 US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
05/31/22 91282CCF6 290,000.00 0.00 1,087.50 1,087.50
05/31/22 US TREASURY NOTES
DTD 11/30/2016 2.125% 11/30/2023
05/31/22 912828U57 460,000.00 0.00 4,887.50 4,887.50
Transaction Type Sub-Total 5,196,185.79 0.00 33,702.89 33,702.89
PAYDOWNS
05/25/22 FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
05/01/22 3137BM6P6 6,665.41 6,665.41 0.00 6,665.41 (56.76) 0.00 05/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
05/01/22 3137BLUR7 8,014.19 8,014.19 0.00 8,014.19 (20.03) 0.00 05/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
05/01/22 3137AWQH1 2,660.92 2,660.92 0.00 2,660.92 (39.29) 0.00 05/25/22 FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
05/01/22 3136AJB54 8,451.61 8,451.61 0.00 8,451.61 (410.70) 0.00 05/15/22 ALLYA 2019-1 A3
DTD 02/13/2019 2.910% 09/15/2023
05/15/22 02004WAC5 2,111.35 2,111.35 0.00 2,111.35 0.25 0.00
Item 10.
Managed Account Security Transactions & Interest For the Month Ending May 31, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
PAYDOWNS
05/15/22 NAROT 2019-A A3
DTD 02/13/2019 2.900% 10/15/2023
05/15/22 65479KAD2 3,980.36 3,980.36 0.00 3,980.36 0.60 0.00 05/15/22 TAOT 2019-A A3
DTD 02/13/2019 2.910% 07/15/2023
05/15/22 89239AAD5 4,916.85 4,916.85 0.00 4,916.85 0.90 0.00 05/15/22 HYUNDAI AUTO RECEIVABLES TRUST
DTD 04/10/2019 2.660% 06/15/2023
05/15/22 44932NAD2 3,144.76 3,144.76 0.00 3,144.76 0.41 0.00 05/15/22 COPAR 2019-1 A3
DTD 05/30/2019 2.510% 11/15/2023
05/15/22 14042WAC4 3,853.60 3,853.60 0.00 3,853.60 0.78 0.00 05/15/22 NAROT 2019-B A3
DTD 05/28/2019 2.500% 11/15/2023
05/15/22 65479HAC1 4,116.62 4,116.62 0.00 4,116.62 0.93 0.00 05/15/22 TAOT 2020-A A3
DTD 02/12/2020 1.660% 05/15/2024
05/15/22 89232HAC9 7,979.27 7,979.27 0.00 7,979.27 0.58 0.00 05/15/22 CARMX 2020-1 A3
DTD 01/22/2020 1.890% 12/16/2024
05/15/22 14315XAC2 4,995.16 4,995.16 0.00 4,995.16 0.98 0.00 05/18/22 HAROT 2019-1 A3
DTD 02/27/2019 2.830% 03/20/2023
05/18/22 43814WAC9 3,649.48 3,649.48 0.00 3,649.48 0.09 0.00 05/21/22 HAROT 2019-2 A3
DTD 05/29/2019 2.520% 06/21/2023
05/21/22 43815MAC0 4,199.77 4,199.77 0.00 4,199.77 0.16 0.00 05/21/22 HAROT 2020-1 A3
DTD 02/26/2020 1.610% 04/22/2024
05/21/22 43813RAC1 5,860.10 5,860.10 0.00 5,860.10 1.15 0.00 Transaction Type Sub-Total 74,599.45 74,599.45 0.00 74,599.45 (519.95) 0.00 SELL
05/04/22 DNB BANK ASA/NY LT CD
DTD 12/06/2019 2.040% 12/02/2022
05/03/22 23341VZT1 145,000.00 144,949.80 1,257.15 146,206.95 (50.20) (50.20) FIFO Transaction Type Sub-Total 145,000.00 144,949.80 1,257.15 146,206.95 (50.20) (50.20) Managed Account Sub-Total 74,049.25 34,805.90 108,855.15 (570.15) (50.20) Total Security Transactions $74,049.25 $34,805.90 $108,855.15 ($570.15) ($50.20)
Item 10.
STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Investment Report – April 2022
STAFF RECOMMENDATION:
Staff recommends that the City Council receive and file the investment report for April of 2022 EXECUTIVE SUMMARY:
On June 23, 2021, the City of Coachella along with its component units (Sanitary District, Educational & Governmental Access Cable Corporation, Fire Protection District and Water Authority) approved and adopted the current “Statement of Investment Policy”.
Pursuant to Section 16 of that policy, the City Treasurer shall provide to the City Council a monthly investment report which provides a clear picture of the status of the current investment portfolio.
This report shall include, at a minimum, the following information for each type of investment held in the City’s investment portfolio: the issuer; amount of investment; current market value; yield on investment; income generated from investments; dollar amount invested on all securities, investments and moneys held by the local agency; and shall additionally include a description of any of the local agency’s funds, investments, or programs; and a description of unusual investment activity or developments during the month for which the report is prepared. This information shall be provided for all City and component unit pooled investments, as well as for bond accounts, which are managed by outside Fiscal Agents.
The interest rates presented are the most current rates available as of the date of these reports. The market values presented for pooled City investments are based on closing prices for the related investments as of the date of these reports. This information was obtained from the Wall Street Journal or other reliable sources of market prices.
The Market values presented for investments managed by fiscal agents are based on amounts reported by the fiscal agent on their investment statements. The purchase date and type of investment are not included for funds held by fiscal agents.
Item 11.
Attached is the Treasurer’s Report of Investments which includes an overview on investments which provides information on investment activity, withdrawals and deposits, interest earned, payment of interest and payment of principal as of the months ended April 30, 2022. In addition, this report includes detailed information and current activity on individual investments.
All City investments are in compliance with the guidelines established for Authorized Investments as specified in the Investment Policy, Section 8.
There was no unusual investment activity to report.
The City and Districts have sufficient moneys to meet their expenditure requirements for the next six months.
FISCAL IMPACT:
None, this report is receive and file only.
Item 11.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 3/31/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 4/30/2022
CASH ON HAND
Wells Fargo-General Checking N/A 13,843,308.30 (1,908,683.21) - - - 11,934,625.09 Wells Fargo-Road Maintenance N/A 1,138,600.81 81,931.57 - - - 1,220,532.38 Wells Fargo-Gas Tax N/A 216,519.99 82,227.22 - - - 298,747.21 Mechanics Bank - Payroll Acct N/A 169,756.47 155,327.67 - - - 325,084.14 Petty Cash N/A 3,500.00 - - - - 3,500.00
Total Cash on Hand 15,371,685.57 (1,589,196.75) - - - 13,782,488.82
INVESTMENTS
State of California - LAIF 0.52% 12,905,685.78 - 8,681.73 - - 12,914,367.51 Investment Management Acct 1.33% 24,548,642.50 - (388,057.65) - - 24,160,584.85 Total Investments 37,454,328.28 - (379,375.92) - - 37,074,952.36
CASH WITH FISCAL AGENT
US Bank varies 5,466,294.02 450,314.33 23.44 (240,097.04) - 5,676,534.75 ① Wells Fargo Bank, N.A. 5.83% 4.30 - - - - 4.30 ②
Wilmington Trust, N. A. 0.03% 0.70 - - - - 0.70 ③
Total Cash with Fiscal Agent 5,466,299.02 450,314.33 23.44 (240,097.04) - 5,676,539.75 Grand Total 58,292,312.87 (1,138,882.42) (379,352.48) (240,097.04) - 56,533,980.93 Completed By:
Reviewed By: Nathan Statham-Finance Director
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of April 30, 2022
Fiscal Year 2021-2022
DESCRIPTION
E. Stoddard
Item 11.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 3/31/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 4/30/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of April 30, 2022
Fiscal Year 2021-2022
DESCRIPTION
CASH WITH FISCAL AGENT
US Bank
COACHELLA WATER AUTHORITY
CITY OF COACHELLA WATER: WATER REFUNDING BONDS 2012 SERIES A/C #: 6712016201 Bond Fund 0.03% 0.39 - - - - 0.39
A/C #: 6712016202 Interest Account 0.03% - - - - - -
A/C #: 6712016203 Principal Account 0.00% 0.21 - - - - 0.21 A/C #: 6712016204 Reserve Fund 0.00% 777,000.00 - - - - 777,000.00
COACHELLA FINANCING AUTHORITY
Successor Agency to the Coachella Redevelopments Agency 2014 Series A/C #: 6712104701 Debt Service Fund 0.00% 0.51 - - - - 0.51 A/C #: 6712104702 Interest Account 0.00% - - - - - -
A/C #: 6712104703 Principal Account 0.00% - - - - - -
A/C #: 6712104704 Reserve Account 0.00% 827,612.50 - - - - 827,612.50
COACHELLA SANITARY DISTRICT
WASTEWATER SERIES 2015A
A/C #: 6712148601 Bond Fund 0.00% - 9.53 11.67 - - 21.20 A/C #: 6712148602 Interest Account 0.00% 65,087.51 - 2.58 (65,090.09) - - A/C #: 6712148603 Principal Account 0.00% 175,000.00 - 6.95 (175,006.95) - - A/C #: 6712148604 Reserve Account 0.00% 310,175.00 - - - - 310,175.00 A/C #: 6712148605 Redemption Fund 0.00% - - - - - -
COACHELLA SANITARY DISTRICT: PROJECT FUND 2011
A/C #: 6711963500 Project Fund 2011 0.0100% 25,270.40 - 2.24 - - 25,272.64
Item 11.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 3/31/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 4/30/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of April 30, 2022
Fiscal Year 2021-2022
DESCRIPTION
COACHELLA SUCCESSOR AGENCY
MERGED PROJECT AREAS BONDS 98 & 99: BONDS 2013
A/C #: 6712071401 Interest Account 0.00% 0.17 - - - - 0.17 A/C #: 6712071402 Interest Account 0.00% - - - - - -
A/C #: 6712071403 Principal Account 0.00% - - - - - -
A/C #: 6712071404 Reserve Account 0.00% 525,984.89 - - - - 525,984.89 SA TO COACHELLA RDA REFUNDING BONDS SERIES 2016A & 2016B A/C #: 6712160601 Debt Service 0.00% 1.32 - - - - 1.32
A/C #: 6712160602 Interest Account 0.00% - - - - - -
A/C #: 6712160603 Principal Account 0.00% - - - - - -
A/C #: 6712160604 Reserve Account 0.00% 2,147,669.03 - - - - 2,147,669.03 COACHELLA LEASE BONDS 2016
A/C #: 6712179801 Payment Account 0.0000% 0.42 450,304.80 - - - 450,305.22 A/C #: 6712179802 Interest Account 0.0000% - 160.41 - - - 160.41 A/C #: 6712179803 Principal Account 0.0000% - - - - - - A/C #: 6712179804 Reserve Account 0.0000% 612,331.26 - - - - 612,331.26 A/C #: 6712179805 Project Fund 0.0000% 160.41 (160.41) - - - - TOTAL US Bank 5,466,294.02 450,314.33 23.44 (240,097.04) - 5,676,534.75 ① WELLS FARGO BANK, N.A.
GAS TAX BONDS SERIES 2019
A/C #: 83925300 Debt Service Fund 0.0000% 2.61 - - - - 2.61 A/C #: 83925301 Interest Account 0.0000% 0.78 - - - - 0.78 A/C #: 83925302 Principal Account 0.0000% 0.91 - - - 0.91 TOTAL WELLS FARGO BANK, N.A. 4.30 - - - - 4.30 ②
Item 11.
CURRENT BALANCE AS OF NET: DEPOSITS/ INTEREST EARNED / PAYMENT OF PAYMENT OF BALANCE AS OF YIELD 3/31/2022 (WITHDRAWALS) CHANGE IN VALUE INTEREST PRINCIPAL 4/30/2022
CITY OF COACHELLA
TREASURER'S REPORT - INVESTMENT REPORT
As of April 30, 2022
Fiscal Year 2021-2022
DESCRIPTION
WILMINGTON TRUST, N. A.
CITY OF COACHELLA TAXABLE PENSION OBLIGATION BONDS
A/C #: 144613-001 Interest Account 0.03% 0.70 - - - - 0.70 A/C #: 144613-002 Principal Account 0.00% - - - - - -
TOTAL WILMINGTGON TRUST BANK, N.A. 0.70 - - - - 0.70 ③
TOTAL CASH WITH FISCAL AGENT 5,466,299.02 450,314.33 23.44 (240,097.04) - 5,676,539.75
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 09/15/2019 1.500% 09/15/2022
912828YF1 140,000.00 AA+ Aaa 01/06/22 01/10/22 141,110.16 0.33 268.21 140,613.27 140,131.25
US TREASURY NOTES
DTD 07/15/2020 0.125% 07/15/2023
912828ZY9 1,270,000.00 AA+ Aaa 02/17/22 02/18/22 1,249,015.23 1.31 464.85 1,251,966.21 1,236,265.63
US TREASURY NOTES
DTD 08/01/2016 1.250% 07/31/2023
912828S92 140,000.00 AA+ Aaa 04/02/19 04/04/19 134,071.88 2.28 435.08 138,288.02 138,053.13
US TREASURY NOTES
DTD 11/15/2013 2.750% 11/15/2023
912828WE6 355,000.00 AA+ Aaa 03/06/19 03/08/19 358,591.60 2.52 4,503.69 356,180.43 355,998.44
US TREASURY NOTES
DTD 11/30/2016 2.125% 11/30/2023
912828U57 460,000.00 AA+ Aaa 01/07/19 01/09/19 451,770.31 2.52 4,081.87 457,336.64 456,837.50
US TREASURY NOTES
DTD 12/31/2018 2.625% 12/31/2023
9128285U0 70,000.00 AA+ Aaa 01/30/19 01/31/19 70,207.81 2.56 614.19 70,070.50 70,021.88
US TREASURY NOTES
DTD 05/01/2017 2.000% 04/30/2024
912828X70 350,000.00 AA+ Aaa 06/03/19 06/05/19 351,585.94 1.90 19.02 350,646.42 345,132.83
US TREASURY N/B NOTES
DTD 07/15/2021 0.375% 07/15/2024
91282CCL3 1,285,000.00 AA+ Aaa 02/17/22 02/18/22 1,248,206.84 1.59 1,411.02 1,251,224.05 1,219,143.75
US TREASURY NOTES
DTD 07/31/2017 2.125% 07/31/2024
9128282N9 125,000.00 AA+ Aaa 08/01/19 08/05/19 126,933.59 1.80 660.39 125,872.34 123,183.60
US TREASURY NOTES
DTD 08/31/2017 1.875% 08/31/2024
9128282U3 165,000.00 AA+ Aaa 09/03/19 09/05/19 169,299.02 1.33 521.23 167,012.66 161,467.98
US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 295,000.00 AA+ Aaa 10/01/19 10/03/19 303,815.43 1.50 530.96 299,267.56 290,114.06
US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 195,000.00 AA+ Aaa 01/11/21 01/12/21 203,630.27 0.33 7.95 200,683.05 188,662.50
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 425,000.00 AA+ Aaa 01/03/20 01/07/20 434,844.73 1.63 3,771.29 430,194.76 417,164.06
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 580,000.00 AA+ Aaa 12/02/19 12/04/19 591,917.19 1.69 5,146.70 586,171.05 569,306.25
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY N/B NOTES
DTD 01/15/2022 1.125% 01/15/2025
91282CDS7 1,265,000.00 AA+ Aaa 02/17/22 02/18/22 1,244,888.48 1.69 4,167.16 1,246,251.97 1,207,481.97
US TREASURY NOTES
DTD 02/17/2015 2.000% 02/15/2025
912828J27 130,000.00 AA+ Aaa 03/02/20 03/04/20 137,205.86 0.85 538.67 134,066.99 126,912.50
US TREASURY NOTES
DTD 08/31/2020 0.250% 08/31/2025
91282CAJ0 555,000.00 AA+ Aaa 08/02/21 08/06/21 548,799.61 0.53 233.76 549,917.85 507,998.44
US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 460,000.00 AA+ Aaa 09/07/21 09/09/21 452,273.44 0.67 97.40 453,493.42 420,037.50
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 350,000.00 AA+ Aaa 03/01/22 03/01/22 333,361.33 1.59 2.38 334,118.76 318,937.50
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 410,000.00 AA+ Aaa 10/04/21 10/06/21 401,319.53 0.78 2.78 402,528.72 373,612.50
US TREASURY NOTES
DTD 11/30/2020 0.375% 11/30/2025
91282CAZ4 210,000.00 AA+ Aaa 11/02/21 11/03/21 204,659.77 1.01 328.85 205,302.18 191,756.25
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 190,000.00 AA+ Aaa 04/05/21 04/07/21 185,494.92 0.89 238.15 186,508.50 173,137.50
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 350,000.00 AA+ Aaa 01/11/21 01/12/21 347,867.19 0.50 438.71 348,424.50 318,937.50
US TREASURY NOTES
DTD 01/31/2019 2.625% 01/31/2026
9128286A3 255,000.00 AA+ Aaa 02/04/21 02/08/21 282,063.87 0.47 1,664.19 275,409.55 252,091.42
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 270,000.00 AA+ Aaa 02/26/21 02/26/21 264,410.16 0.80 251.73 265,742.41 245,404.67
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 475,000.00 AA+ Aaa 07/02/21 07/07/21 465,871.09 0.80 442.85 467,501.06 431,730.45
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,320,000.00 AA+ Aaa 02/17/22 02/18/22 1,246,626.56 1.84 1,230.66 1,250,287.60 1,199,756.18
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 310,000.00 AA+ Aaa 03/05/21 03/09/21 305,676.95 0.79 261.14 306,671.47 282,584.38
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 630,000.00 AA+ Aaa 12/03/21 12/07/21 613,019.53 1.15 530.71 614,614.20 574,284.37
US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 290,000.00 AA+ Aaa 06/02/21 06/04/21 289,365.62 0.79 908.24 289,480.87 265,395.30
US TREASURY N/B NOTES
DTD 09/30/2021 0.875% 09/30/2026
91282CCZ2 300,000.00 AA+ Aaa 04/05/22 04/07/22 276,222.66 2.77 222.34 276,571.26 274,218.75 Security Type Sub-Total 13,625,000.00 13,434,126.57 1.41 33,996.17 13,432,418.27 12,875,760.04 Supra-National Agency Bond / Note
INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 150,000.00 AAA Aaa 11/17/20 11/24/20 149,677.50 0.32 163.54 149,831.53 144,631.20
INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 300,000.00 AAA Aaa 09/15/21 09/23/21 299,778.00 0.52 158.33 299,822.56 283,627.50 Security Type Sub-Total 450,000.00 449,455.50 0.46 321.87 449,654.09 428,258.70 Municipal Bond / Note
CA ST TXBL GO BONDS
DTD 10/24/2019 2.400% 10/01/2023
13063DRJ9 190,000.00 AA- Aa2 10/16/19 10/24/19 193,801.90 1.87 380.00 191,369.53 189,671.30
MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 200,000.00 AA Aa2 07/24/20 08/06/20 200,000.00 0.57 565.00 200,000.00 187,782.00
OR ST DEPT TRANS TXBL REV BONDS
DTD 09/17/2020 0.566% 11/15/2024
68607DVA0 135,000.00 AAA Aa1 09/11/20 09/17/20 135,000.00 0.57 352.34 135,000.00 126,065.70
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 40,000.00 AA Aa3 09/03/20 09/16/20 40,282.80 1.11 167.73 40,187.08 37,407.60
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 110,000.00 AA Aa3 09/03/20 09/16/20 110,000.00 1.26 461.27 110,000.00 102,870.90
LOS ANGELES CCD, CA TXBL GO BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 80,000.00 AA+ Aaa 10/30/20 11/10/20 80,000.00 0.77 154.60 80,000.00 73,268.00
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 09/15/2019 1.500% 09/15/2022
912828YF1 140,000.00 AA+ Aaa 01/06/22 01/10/22 141,110.16 0.33 268.21 140,613.27 140,131.25
US TREASURY NOTES
DTD 07/15/2020 0.125% 07/15/2023
912828ZY9 1,270,000.00 AA+ Aaa 02/17/22 02/18/22 1,249,015.23 1.31 464.85 1,251,966.21 1,236,265.63
US TREASURY NOTES
DTD 08/01/2016 1.250% 07/31/2023
912828S92 140,000.00 AA+ Aaa 04/02/19 04/04/19 134,071.88 2.28 435.08 138,288.02 138,053.13
US TREASURY NOTES
DTD 11/15/2013 2.750% 11/15/2023
912828WE6 355,000.00 AA+ Aaa 03/06/19 03/08/19 358,591.60 2.52 4,503.69 356,180.43 355,998.44
US TREASURY NOTES
DTD 11/30/2016 2.125% 11/30/2023
912828U57 460,000.00 AA+ Aaa 01/07/19 01/09/19 451,770.31 2.52 4,081.87 457,336.64 456,837.50
US TREASURY NOTES
DTD 12/31/2018 2.625% 12/31/2023
9128285U0 70,000.00 AA+ Aaa 01/30/19 01/31/19 70,207.81 2.56 614.19 70,070.50 70,021.88
US TREASURY NOTES
DTD 05/01/2017 2.000% 04/30/2024
912828X70 350,000.00 AA+ Aaa 06/03/19 06/05/19 351,585.94 1.90 19.02 350,646.42 345,132.83
US TREASURY N/B NOTES
DTD 07/15/2021 0.375% 07/15/2024
91282CCL3 1,285,000.00 AA+ Aaa 02/17/22 02/18/22 1,248,206.84 1.59 1,411.02 1,251,224.05 1,219,143.75
US TREASURY NOTES
DTD 07/31/2017 2.125% 07/31/2024
9128282N9 125,000.00 AA+ Aaa 08/01/19 08/05/19 126,933.59 1.80 660.39 125,872.34 123,183.60
US TREASURY NOTES
DTD 08/31/2017 1.875% 08/31/2024
9128282U3 165,000.00 AA+ Aaa 09/03/19 09/05/19 169,299.02 1.33 521.23 167,012.66 161,467.98
US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 295,000.00 AA+ Aaa 10/01/19 10/03/19 303,815.43 1.50 530.96 299,267.56 290,114.06
US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 195,000.00 AA+ Aaa 01/11/21 01/12/21 203,630.27 0.33 7.95 200,683.05 188,662.50
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 425,000.00 AA+ Aaa 01/03/20 01/07/20 434,844.73 1.63 3,771.29 430,194.76 417,164.06
US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 580,000.00 AA+ Aaa 12/02/19 12/04/19 591,917.19 1.69 5,146.70 586,171.05 569,306.25
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY N/B NOTES
DTD 01/15/2022 1.125% 01/15/2025
91282CDS7 1,265,000.00 AA+ Aaa 02/17/22 02/18/22 1,244,888.48 1.69 4,167.16 1,246,251.97 1,207,481.97
US TREASURY NOTES
DTD 02/17/2015 2.000% 02/15/2025
912828J27 130,000.00 AA+ Aaa 03/02/20 03/04/20 137,205.86 0.85 538.67 134,066.99 126,912.50
US TREASURY NOTES
DTD 08/31/2020 0.250% 08/31/2025
91282CAJ0 555,000.00 AA+ Aaa 08/02/21 08/06/21 548,799.61 0.53 233.76 549,917.85 507,998.44
US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 460,000.00 AA+ Aaa 09/07/21 09/09/21 452,273.44 0.67 97.40 453,493.42 420,037.50
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 350,000.00 AA+ Aaa 03/01/22 03/01/22 333,361.33 1.59 2.38 334,118.76 318,937.50
US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
91282CAT8 410,000.00 AA+ Aaa 10/04/21 10/06/21 401,319.53 0.78 2.78 402,528.72 373,612.50
US TREASURY NOTES
DTD 11/30/2020 0.375% 11/30/2025
91282CAZ4 210,000.00 AA+ Aaa 11/02/21 11/03/21 204,659.77 1.01 328.85 205,302.18 191,756.25
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 190,000.00 AA+ Aaa 04/05/21 04/07/21 185,494.92 0.89 238.15 186,508.50 173,137.50
US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 350,000.00 AA+ Aaa 01/11/21 01/12/21 347,867.19 0.50 438.71 348,424.50 318,937.50
US TREASURY NOTES
DTD 01/31/2019 2.625% 01/31/2026
9128286A3 255,000.00 AA+ Aaa 02/04/21 02/08/21 282,063.87 0.47 1,664.19 275,409.55 252,091.42
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 270,000.00 AA+ Aaa 02/26/21 02/26/21 264,410.16 0.80 251.73 265,742.41 245,404.67
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 475,000.00 AA+ Aaa 07/02/21 07/07/21 465,871.09 0.80 442.85 467,501.06 431,730.45
US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,320,000.00 AA+ Aaa 02/17/22 02/18/22 1,246,626.56 1.84 1,230.66 1,250,287.60 1,199,756.18
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 310,000.00 AA+ Aaa 03/05/21 03/09/21 305,676.95 0.79 261.14 306,671.47 282,584.38
Item 11.
Managed Account Detail of Securities Held For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 630,000.00 AA+ Aaa 12/03/21 12/07/21 613,019.53 1.15 530.71 614,614.20 574,284.37
US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 290,000.00 AA+ Aaa 06/02/21 06/04/21 289,365.62 0.79 908.24 289,480.87 265,395.30
US TREASURY N/B NOTES
DTD 09/30/2021 0.875% 09/30/2026
91282CCZ2 300,000.00 AA+ Aaa 04/05/22 04/07/22 276,222.66 2.77 222.34 276,571.26 274,218.75 Security Type Sub-Total 13,625,000.00 13,434,126.57 1.41 33,996.17 13,432,418.27 12,875,760.04 Supra-National Agency Bond / Note
INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 150,000.00 AAA Aaa 11/17/20 11/24/20 149,677.50 0.32 163.54 149,831.53 144,631.20
INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 300,000.00 AAA Aaa 09/15/21 09/23/21 299,778.00 0.52 158.33 299,822.56 283,627.50 Security Type Sub-Total 450,000.00 449,455.50 0.46 321.87 449,654.09 428,258.70 Municipal Bond / Note
CA ST TXBL GO BONDS
DTD 10/24/2019 2.400% 10/01/2023
13063DRJ9 190,000.00 AA- Aa2 10/16/19 10/24/19 193,801.90 1.87 380.00 191,369.53 189,671.30
MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 200,000.00 AA Aa2 07/24/20 08/06/20 200,000.00 0.57 565.00 200,000.00 187,782.00
OR ST DEPT TRANS TXBL REV BONDS
DTD 09/17/2020 0.566% 11/15/2024
68607DVA0 135,000.00 AAA Aa1 09/11/20 09/17/20 135,000.00 0.57 352.34 135,000.00 126,065.70
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 40,000.00 AA Aa3 09/03/20 09/16/20 40,282.80 1.11 167.73 40,187.08 37,407.60
FL ST BOARD OF ADMIN TXBL REV BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 110,000.00 AA Aa3 09/03/20 09/16/20 110,000.00 1.26 461.27 110,000.00 102,870.90
LOS ANGELES CCD, CA TXBL GO BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 80,000.00 AA+ Aaa 10/30/20 11/10/20 80,000.00 0.77 154.60 80,000.00 73,268.00
Item 11.
Managed Account Security Transactions & Interest For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
04/07/22 US TREASURY N/B NOTES
DTD 09/30/2021 0.875% 09/30/2026
04/05/22 91282CCZ2 300,000.00 (276,222.66) (50.20) (276,272.86) 04/13/22 AMAZON.COM INC CORPORATE NOTES
DTD 04/13/2022 3.000% 04/13/2025
04/11/22 023135CE4 245,000.00 (244,610.45) 0.00 (244,610.45) Transaction Type Sub-Total 545,000.00 (520,833.11) (50.20) (520,883.31)
INTEREST
04/01/22 UNITED PARCEL SERVICE CORP NOTES
DTD 09/27/2012 2.450% 10/01/2022
04/01/22 911312AQ9 275,000.00 0.00 3,368.75 3,368.75
04/01/22 CA ST TXBL GO BONDS
DTD 10/24/2019 2.400% 10/01/2023
04/01/22 13063DRJ9 190,000.00 0.00 2,280.00 2,280.00
04/01/22 04/01/22 MONEY MARKET FUND MONEY0002 0.00 0.00 2.85 2.85 04/25/22 FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
04/01/22 3136AJB54 91,434.59 0.00 300.19 300.19
04/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
04/01/22 3137AWQH1 100,000.00 0.00 192.25 192.25
04/25/22 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
04/01/22 3137BGK24 110,000.00 0.00 280.68 280.68
04/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
04/01/22 3137BLUR7 43,178.01 0.00 97.17 97.17
04/25/22 FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
04/01/22 3137BM6P6 73,094.99 0.00 188.22 188.22
04/05/22 MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 04/22/2021 0.731% 04/05/2024
04/05/22 61772BAA1 100,000.00 0.00 365.50 365.50
04/14/22 FEDERAL HOME LOAN BANK NOTES
DTD 04/16/2020 0.500% 04/14/2025
04/14/22 3130AJHU6 200,000.00 0.00 500.00 500.00
04/15/22 HYUNDAI AUTO RECEIVABLES TRUST
DTD 04/10/2019 2.660% 06/15/2023
04/15/22 44932NAD2 7,321.45 0.00 16.23 16.23
04/15/22 TAOT 2019-A A3
DTD 02/13/2019 2.910% 07/15/2023
04/15/22 89239AAD5 26,644.31 0.00 64.61 64.61
04/15/22 ALLYA 2019-1 A3
DTD 02/13/2019 2.910% 09/15/2023
04/15/22 02004WAC5 7,163.59 0.00 17.37 17.37
Item 11.
Managed Account Security Transactions & Interest For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
INTEREST
04/15/22 NAROT 2019-A A3
DTD 02/13/2019 2.900% 10/15/2023
04/15/22 65479KAD2 20,520.33 0.00 49.59 49.59
04/15/22 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
04/15/22 14314QAC8 65,000.00 0.00 28.17 28.17
04/15/22 TAOT 2020-A A3
DTD 02/12/2020 1.660% 05/15/2024
04/15/22 89232HAC9 92,917.81 0.00 128.54 128.54
04/15/22 DCENT 2021-A1 A1
DTD 09/27/2021 0.580% 09/15/2026
04/15/22 254683CP8 55,000.00 0.00 26.58 26.58
04/15/22 NAROT 2019-B A3
DTD 05/28/2019 2.500% 11/15/2023
04/15/22 65479HAC1 28,320.67 0.00 59.00 59.00
04/15/22 CARMX 2020-1 A3
DTD 01/22/2020 1.890% 12/16/2024
04/15/22 14315XAC2 74,778.69 0.00 117.78 117.78
04/15/22 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
04/15/22 14316NAC3 30,000.00 0.00 8.50 8.50
04/15/22 TAOT 2021-C A3
DTD 09/27/2021 0.430% 01/15/2026
04/15/22 89239BAC5 70,000.00 0.00 25.08 25.08
04/15/22 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
04/15/22 44933LAC7 45,000.00 0.00 14.25 14.25
04/15/22 HART 2021-C A3
DTD 11/17/2021 0.740% 05/15/2026
04/15/22 44935FAD6 35,000.00 0.00 21.58 21.58
04/15/22 COPAR 2019-1 A3
DTD 05/30/2019 2.510% 11/15/2023
04/15/22 14042WAC4 19,900.78 0.00 41.63 41.63
04/18/22 HAROT 2019-1 A3
DTD 02/27/2019 2.830% 03/20/2023
04/18/22 43814WAC9 10,898.79 0.00 25.70 25.70
04/21/22 HAROT 2021-1 A3
DTD 02/24/2021 0.270% 04/21/2025
04/21/22 43813GAC5 55,000.00 0.00 12.38 12.38
04/21/22 HAROT 2019-2 A3
DTD 05/29/2019 2.520% 06/21/2023
04/21/22 43815MAC0 22,065.43 0.00 46.34 46.34
04/21/22 HAROT 2020-1 A3
DTD 02/26/2020 1.610% 04/22/2024
04/21/22 43813RAC1 71,835.72 0.00 96.38 96.38
04/22/22 FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
04/22/22 3135G03U5 620,000.00 0.00 1,937.50 1,937.50
Item 11.
Managed Account Security Transactions & Interest For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
INTEREST
04/24/22 BANK OF AMERICA CORP (CALLABLE)
CORPORAT
DTD 10/21/2020 0.810% 10/24/2024
04/24/22 06051GJH3 150,000.00 0.00 607.50 607.50
04/30/22 US TREASURY NOTES
DTD 05/01/2017 2.000% 04/30/2024
04/30/22 912828X70 350,000.00 0.00 3,500.00 3,500.00
04/30/22 US TREASURY NOTES
DTD 10/31/2020 0.250% 10/31/2025
04/30/22 91282CAT8 760,000.00 0.00 950.00 950.00
04/30/22 US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
04/30/22 912828YM6 195,000.00 0.00 1,462.50 1,462.50
Transaction Type Sub-Total 3,995,075.16 0.00 16,832.82 16,832.82
PAYDOWNS
04/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
04/01/22 3137BLUR7 247.76 247.76 0.00 247.76 (0.62) 0.00 04/25/22 FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
04/01/22 3136AJB54 5,435.05 5,435.05 0.00 5,435.05 (264.11) 0.00 04/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 12/01/2012 2.307% 08/01/2022
04/01/22 3137AWQH1 7,667.13 7,667.13 0.00 7,667.13 (113.21) 0.00 04/25/22 FHLMC SERIES K721 A2
DTD 12/01/2015 3.090% 08/01/2022
04/01/22 3137BM6P6 26,647.37 26,647.37 0.00 26,647.37 (226.92) 0.00 04/25/22 FHLMC MULTIFAMILY STRUCTURED P
DTD 11/01/2015 2.716% 06/01/2022
04/01/22 3137BLUR7 34,916.06 34,916.06 0.00 34,916.06 (87.29) 0.00 04/15/22 COPAR 2019-1 A3
DTD 05/30/2019 2.510% 11/15/2023
04/15/22 14042WAC4 4,348.45 4,348.45 0.00 4,348.45 0.88 0.00 04/15/22 HYUNDAI AUTO RECEIVABLES TRUST
DTD 04/10/2019 2.660% 06/15/2023
04/15/22 44932NAD2 3,487.99 3,487.99 0.00 3,487.99 0.46 0.00 04/15/22 TAOT 2020-A A3
DTD 02/12/2020 1.660% 05/15/2024
04/15/22 89232HAC9 9,434.84 9,434.84 0.00 9,434.84 0.68 0.00 04/15/22 CARMX 2020-1 A3
DTD 01/22/2020 1.890% 12/16/2024
04/15/22 14315XAC2 6,038.11 6,038.11 0.00 6,038.11 1.18 0.00 04/15/22 NAROT 2019-B A3
DTD 05/28/2019 2.500% 11/15/2023
04/15/22 65479HAC1 4,645.44 4,645.44 0.00 4,645.44 1.05 0.00 04/15/22 NAROT 2019-A A3
DTD 02/13/2019 2.900% 10/15/2023
04/15/22 65479KAD2 4,734.83 4,734.83 0.00 4,734.83 0.72 0.00
Item 11.
Managed Account Security Transactions & Interest For the Month Ending April 30, 2022 CITY OF COACHELLA - OPERATING PORTFOLIO - 995343 - (14201484) Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
PAYDOWNS
04/15/22 TAOT 2019-A A3
DTD 02/13/2019 2.910% 07/15/2023
04/15/22 89239AAD5 5,747.02 5,747.02 0.00 5,747.02 1.05 0.00 04/15/22 ALLYA 2019-1 A3
DTD 02/13/2019 2.910% 09/15/2023
04/15/22 02004WAC5 2,381.46 2,381.46 0.00 2,381.46 0.29 0.00 04/18/22 HAROT 2019-1 A3
DTD 02/27/2019 2.830% 03/20/2023
04/18/22 43814WAC9 3,975.17 3,975.17 0.00 3,975.17 0.11 0.00 04/21/22 HAROT 2020-1 A3
DTD 02/26/2020 1.610% 04/22/2024
04/21/22 43813RAC1 6,661.48 6,661.48 0.00 6,661.48 1.31 0.00 04/21/22 HAROT 2019-2 A3
DTD 05/29/2019 2.520% 06/21/2023
04/21/22 43815MAC0 4,521.21 4,521.21 0.00 4,521.21 0.17 0.00 Transaction Type Sub-Total 130,889.37 130,889.37 0.00 130,889.37 (684.25) 0.00 SELL
04/07/22 NORDEA BANK ABP NEW YORK CERT
DEPOS
DTD 08/29/2019 1.850% 08/26/2022
04/05/22 65558TLL7 280,000.00 280,684.88 575.56 281,260.44 684.88 684.88 FIFO 04/13/22 UNITED PARCEL SERVICE CORP NOTES
DTD 09/27/2012 2.450% 10/01/2022
04/11/22 911312AQ9 275,000.00 276,113.75 224.58 276,338.33 7,568.00 1,774.24 FIFO Transaction Type Sub-Total 555,000.00 556,798.63 800.14 557,598.77 8,252.88 2,459.12 Managed Account Sub-Total 166,854.89 17,582.76 184,437.65 7,568.63 2,459.12 Total Security Transactions $166,854.89 $17,582.76 $184,437.65 $7,568.63 $2,459.12
Item 11.
STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Award maintenance services agreement to Vintage Associates Inc. for Landscape Maintenance Services for Rancho Las Flores Park Project No. 052022.
STAFF RECOMMENDATION:
Award a maintenance services agreement to Vintage Associates Inc. for Landscape Maintenance Services for Rancho Las Flores Park Project No. 052022.
EXECUTIVE SUMMARY:
The City published a Request for Proposals (“RFP”) for Landscape Maintenance Services for Rancho Las Flores Park. This RFP closed on June 13, 2022 and the City received two responses.
As included in the RFP, the selection criteria used to identify the most qualified Proposer was based upon the highest scoring proposer; scoring was completed based upon a three-member staff selection panel. Each panelist member scored all proposals received per the evaluation criteria established in the RFP (total points 100):
• Contractor Information (Including References) – 20 Points • Proposed Project Work Schedules – 25 Points
• Proposed Facilities, Equipment, Materials, and Staffing Schedule – 20 Points • Communications, Traffic Safety, Green waste – 5 Points • Cost Proposal – 25 Points
• Completeness, Thoroughness, Clarity, and Neatness of Proposal – 5 Points Based upon these selection criteria, the top ranked proposer selected was Vintage Associates Inc.
The scores and service amounts submitted by each proposer are listed below:
Scores 1 2 3 Totals
(Max is 300)
Kirkpatrick Landscaping 85 85 80 250
Vintage Associates 89 85 84 258
Item 12.
Prices for Services Annual Amounts
Kirkpatrick Landscaping $ 69,600.00
Vintage Associates $ 62,964.00
Staff recommends award of the RFP and corresponding landscape maintenance agreement in an amount not to exceed $157,410 (two-year term); the recommended award amount is the two-year contract amount of $125,928 plus a 25% contingency to allow for plant/turf replacement and overseeding as needed throughout the agreement term. The agreement, as identified in the RFP, will have a two-year term. The term for the proposed agreement is from July 15, 2022 – July 14, 2024.
FISCAL IMPACT:
The recommended action is included in the City’s annual budget and will not have an additional fiscal impact.
Attachments:
Proposed Agreement
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STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Award maintenance services agreement to Vintage Associates Inc. for Landscape Maintenance Services for City Parks and Office Facilities Project No. 051922.
STAFF RECOMMENDATION:
Award a maintenance services agreement to Vintage Associates Inc. for Landscape Maintenance Services for City Parks and Office Facilities Project No. 051922.
EXECUTIVE SUMMARY:
The City published a Request for Proposals (“RFP”) for Landscape Maintenance Services for City Parks and Office Facilities. This RFP closed on June 13, 2022 and the City received two responses.
The locations included in the RFP include 12 sites: Veterans Park, Dateland Park, Ave 53 Tot Lot Park, Library Park, Sierra Vista Park, Rancho De Oro Park, Shady Lane Park, Fire Station 79, Senior Center, 6th St/Cesar Chavez-Etherea Park, Corporate Yard, Civic Center.
As included in the RFP, the selection criteria used to identify the most qualified Proposer was based upon the highest scoring proposer; scoring was completed based upon a three-member staff selection panel. Each panelist member scored all proposals received per the evaluation criteria established in the RFP (total points 100):
• Contractor Information (Including References) – 20 Points • Proposed Project Work Schedules – 25 Points
• Proposed Facilities, Equipment, Materials, and Staffing Schedule – 20 Points • Communications, Traffic Safety, Green waste – 5 Points • Cost Proposal – 25 Points
• Completeness, Thoroughness, Clarity, and Neatness of Proposal – 5 Points Based upon these selection criteria, the top ranked proposer selected was Vintage Associates Inc.
The scores and service amounts submitted by each proposer are listed below:
Scores 1 2 3 Totals
(Max is 300)
Kirkpatrick Landscaping 85 79 78 242
Vintage Associates 91 88 84 263
Item 13.
Prices for Services Annual Amounts
Kirkpatrick Landscaping $ 170,400.00
Vintage Associates $ 121,620.00
Staff recommends award of the RFP and corresponding landscape maintenance agreement in an amount not to exceed $304,050 (two-year term); the recommended award amount is the two-year contract amount of $243,240 plus a 25% contingency to allow for plant/turf replacement and overseeding as needed throughout the agreement term. The agreement, as identified in the RFP, will have a two-year term. The term for the proposed agreement is from July 15, 2022 – July 14, 2024.
FISCAL IMPACT:
Funding for the recommended action is included in the City’s annual budget and will not have an additional fiscal impact.
Attachments:
Proposed Agreement
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STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Cástulo R. Estrada, Utilities Manager
SUBJECT: Request Authorization to Execute the 2022 Memorandum of Understanding for Integrated Regional Water Management in the Colorado River Basin Funding Area
STAFF RECOMMENDATION:
Authorize the City Manager to Execute the 2022 Memorandum of Understanding (MOU) for Integrated Regional Water Management (IRWM) in the Colorado River Basin Funding Area DISCUSSION/ANALYSIS:
The City of Coachella is a member of the Coachella Valley Regional Water Management Group (CVRWMG) and as a Regional Water Management Group is able to solicit state grant funding earmarked for Integrated Regional Water Management (IRWM). The CVRWMG was formed as a result of the Regional Water Management Act (SB 1672) in 2002. The establishment of the CVRWMG is outlined in a Memorandum of Understanding (MOU) dated September 9, 2008. In addition to the City of Coachella, the other member agencies that make up the CVRWMG include; City of Indio/Indio Water Authority
Coachella Valley Water District
Desert Water Agency
Mission Springs Water District
Valley Sanitary District
There are 12 IRWM funding areas throughout the state, one of the funding areas is the Colorado River Funding Area. Funding areas are made up of RWMGs and within the Colorado River Funding Area there are four; Coachella Valley RWMG, Imperial RWMG, Mojave RWMG and San Gorgonio RWMG.
This 2022 Memorandum of Understanding (MOU) outlines the Urban and Multi-benefit Drought Relief Grant Program (Drought Grant) funding allocation and coordination amongst the four Regional Water Management Groups within the Colorado River Funding Area. The Drought Grant included a $5M set aside for each funding areas for underrepresented communities. CVRWMG
Item 14.
agreed with the other RWMGs on a funding split to cover identified projects within the groups.
The methodology for the split was 40% split evenly and 60% split by DAC population.
Urban and Multibenefit Drought Relief Grant Program
URC Set-Aside Solicitation
Region Funding per Region
CVRWMG $1,857,771
IRWMG $922,558
MRWMG $635,807
SGRWMG $513,326
Non-IRWM Areas $715,538
Grant Administration $355,000
Total $5,000,000
CVRWMG submitted three (3) projects, which were competitively selected:
Mission Springs Water District well rehabilitation - $338,787 Coachella Valley Water District Valley View MHP Water Consolidation - $600,000 CV Water Counts – regional DAC conservation program - $918,984 DAC CV Water Counts Regional Water Conservation Program Region DAC Population by
Census Block
Allocation (40% Equal, 60%
Popn) Revised Allocation
Grant Admin (IWA) $ 10,000 $ 10,000
CVWD* 109,823 $ 315,457 $ 223,637
CWA 45,064 $ 176,654 $ 176,654
IWA 54,174 $ 196,180 $ 196,180
MSWD 34,161 $ 153,284 $ 153,284
DWA 36,935 $ 159,230 $ 159,230
Total 280,157 $ 1,010,804 $ 918,984
*CVWD reallocated $91,820 to Valley View.
FISCAL IMPACT:
No anticipated fiscal impact.
Item 14.
1 2022
MEMORANDUM OF UNDERSTANDING
FOR INTEGRATED REGIONAL WATER MANAGEMENT PLANNING AND FUNDING IN
THE COLORADO RIVER BASIN FUNDING AREA
This Memorandum of Understanding (MOU) is entered into this 12thday of April 2022 (Effective Date) among the Parties listed below:
PARTIES:
1. Coachella Valley Regional Water Management Group (RWMG), hereinafter CVRWMG agencies includes the following member agencies which are each a Party to this MOU:
Coachella Water Authority, hereinafter CWA; Coachella Valley Water District, hereinafter CVWD; Desert Water Agency, hereinafter DWA; Indio Water Authority, hereinafter IWA; Mission Springs Water District hereinafter MSWD; and Valley Sanitary District, hereinafter VSD.
2. Imperial RWMG, hereinafter IRWMG agencies, includes the following member agencies which are each a Party to this MOU:
Imperial Irrigation District, hereinafter IID; Imperial County; and the City of Imperial.
3. Mojave RWMG, hereinafter MRWMG agencies, includes the following member agencies which are each a Party to this MOU:
Mojave Water Agency, hereinafter MWA; Victor Valley Wastewater Reclamation Authority, hereinafter VVWRA; Technical Advisory Committee, hereinafter TAC; Mojave Desert Resource Conservation District, hereinafter Mojave Desert RCD; and Morongo Basin Pipeline Commission.
4. San Gorgonio RWMG, hereinafter SGRWMG, includes the following member agencies which are each a Party to this MOU:
City of Banning, hereinafter Banning; Banning Heights Mutual Water Company, hereinafter BHMWC; Cabazon Water District, hereinafter CWD, High Valleys Water District, hereinafter HVWD, Riverside County Flood Control and Water Conservation District, hereinafter RCFCWCD; and the San Gorgonio Pass Water Agency, hereinafter SGPWA.
The agencies acting collectively under this agreement are the COLORADO RIVER INTEGRATED REGIONAL WATER MANAGEMENT GROUPS, hereinafter called the Colorado River IRWM RWMGs. The agencies also are sometimes referred to in this MOU collectively as “Parties” and individually as “Party.”
RECITALS:
A. The Budget Act of 2021 (Stats. 2021, ch. 240, § 80) allocated $300 million to DWR to deliver grants for interim and immediate drought relief to urban communities and for multibenefit projects. These grants are intended to provide water to communities that face the loss or contamination of their water supplies, to address immediate impacts on human health and safety, and to protect fish and wildlife resources. Funding is administered by the Department of Water Resources (DWR).
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2 B. The intent of the Urban and Multibenefit Drought Relief Grant Program (Drought Grant) is to provide water to communities that face the loss or contamination of their water supplies, to address immediate impacts on human health and safety, and to protect fish and wildlife resources. DWR included a $5,000,000 Underrepresented Community (URC) set-aside in the Drought Grant for each funding area that currently has a Proposition 1 DACI Grant Agreement. As the Colorado River Funding Area (CRFA) has a grant agreement between CVWD and DWR for the Proposition 1 DACI program, the CRFA is eligible to receive these funds if the CRFA submits an application.
The CRFA submitted an application to DWR for the $5,000,000 URC set-aside in January 2022 and was awarded the $5,000,000 funds on March 21, 2022.
C. The Colorado River Basin Hydrologic Region, also known as the Colorado River Funding Area, is composed of the IRWM regions of the four Parties – the CVRWMG, IRWMG, MRWMG, and SGRWMG. The boundaries of the CVRWMG, IRWMG, MRWMG, and SGRMWG are shown in Attachment A. Each IRWM region has been accepted into the IRWM Grant Program via the Region Acceptance Process.
D. For the purposes of this 2022 MOU, the division of funding and terms of the funding agreement among the Colorado River IRWM regions shall be consistent with terms articulated in Attachment B, which are summarized below:
Urban and Multibenefit Drought Relief Grant Program
URC Set-Aside Solicitation
Region Funding per Region
CVRWMG $1,857,771
IRWMG $922,558
MRWMG $635,807
SGRWMG $513,326
Non-IRWM Areas $715,538
Grant Administration $355,000
Total $5,000,000
E. DWR does not consider the cost of applying for the URC Set-Aside to be an eligible cost.
Therefore, each RWMG will be required to contribute funds to pay for their portion of the grant application cost. CVWD will enter into a contract with Woodard & Curran to complete the grant application. MRWMG, SGRWMG and IRWMG will provide their portion of the grant application cost, including costs for the Woodard & Curran contract, to CVWD. Each RWMG shall be responsible for payment of its respective share of grant application costs, based on the table below, to CVWD within 30 days of the date of invoices submitted by CVWD to the representatives for each RWMG as set forth in this MOU. The application cost for the non-IRWM applicant, City of Needles, was contracted separately between the City of Needles and Woodard & Curran, as the City of Needles is not a party to this MOU. The estimated grant application cost for the four RWMGs is $69,394. The cost for Task 1 – Project Management (project management, CRFA and non-IRWM coordination) of $24,222 was split equally between the four RWMGs and the cost for Task 2 – Grant Application of $45,172 was split based on the number of projects each RWMG included in the application.
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3 Estimated URC Set-Aside Grant Application Cost Per RWMG RWMG No of Projects Included
in Application
Grant Application Cost per
RWMG
Mojave RWMG 3
$19,607.10
San Gorgonio RWMG 1$10,572.70
Imperial RWMG 3$19,607.10
Coachella Valley RWMG 3$19,607.10
Total 10 $69,394.00
F. Each Party, with the exception of the IRWMG, has adopted an accepted IRWM Plan pursuant to Water Code § 10530 et seq that meets the 2016 Integrated Regional Water Management Grant Program Guidelines (2016 Guidelines). An IRWM Plan that meets the 2016 Guidelines is not required to participate in the URC Set-Aside of the Drought Grant. The Parties now desire coordination of applications for the URC Set-Aside to fund projects to enhance the quality of planning, identify opportunities for supporting common goals and projects, and improve the quality and reliability of water in the CRFA and throughout the State of California. The Parties will rank and select projects for inclusion in the URC Set-Aside grant applications for their projects consistent with their respective IRWM Plans. A Call for Projects and project selection process was completed for the non-IRWM areas of the CRFA with the four parties ranking and selecting the project for inclusion in the URC Set-Aside application.
G. The Parties will balance the necessary autonomy of each planning region to plan for itself at the appropriate scale with the need to coordinate among themselves to improve inter-regional cooperation and efficiency. By consensus, the Parties have developed the 2022 MOU to improve the IRWM planning process in the Funding Area to coordinate planning across planning region lines, and facilitate the appropriation of funding for IRWM projects by DWR.
H. The Parties will coordinate on grant funding requests to ensure that the sum of the total grant requests does not exceed the amount designated for the funding region.
The RECITALS are incorporated herein and the PARTIES hereby mutually agree as follows:
1. Definitions
The following terms and abbreviations, unless otherwise expressly defined by their context, shall mean:
A. Funding Area – refers to any one of the 12 regions and sub-regions referenced in Public Resources Code section 79744(b) and allocated a specific amount of funding to support IRWM activities. The Colorado River Basin Hydrologic Region (also referred to as Colorado River Funding Area or CRFA) incorporates lands in the Colorado River Basin Regional Water Quality Control Board.
B. RWMG – refers to a group of at least three agencies, two of which must have statutory authority over water management, that have joined together to manage water resources to meet regional needs. Each RWMG is the documented leader of IRWM planning and implementation efforts in a planning region.
C. Planning Region –refers to regions with integrated stakeholders, agencies and projects in their regions for the purpose of coordinating with other planning regions and DWR. The boundaries of the four planning regions in the Colorado River Funding Area are shown in Attachment A.
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4 D. Colorado River Integrated Regional Water Management RWMGs (Colorado River IRWM RWMGs) – refers collectively to the four RWMGs entering into this MOU. The Colorado River IRWM RWMGs is composed of at least one representative from each recognized RWMG in the Funding Area. The Colorado River IRWM RWMGs will meet periodically to discuss issues pertaining to the Funding Area and make recommendations to their RWMGs.
E. Stakeholder Advisory Committee – refers to the recognized committee or committees of stakeholders advising a planning region’s RWMG and/or governing agencies on key issues related to IRWM planning and grant applications.
F. Non-IRWM Area – refers to areas within the CRFA as shown in Attachment A that do not fall within the CVRWMG, MRWMG, SGRWMG and IRWMG boundaries accepted by DWR through the Region Acceptance Process (RAP).
2. General Planning Cooperation
All RWMGs will meet on an as-needed basis throughout the Drought Grant application and administration process. The number and timing of meetings will depend on the amount and intensity of planning and coordination efforts of the planning regions required to apply for and administer the Drought Grant. The efforts of the Colorado River IRWM Parties will be to coordinate on Drought Grant-related funding efforts, enhance the quality of planning, and identify opportunities for supporting common goals and projects in the Funding Area.
3. Scope of the Agreement
Nothing contained within this MOU binds the Parties beyond the scope or term of this MOU unless the Parties expressly so agree in subsequent agreements, amendments, or contracts. With the exception of Recital E for the grant application cost, this MOU does not require any commitment of funding beyond that which is voluntarily committed by separate board actions but recognizes in-kind contributions of RWMG agencies and stakeholders.
4. Term of Agreement
The term of this MOU is from its Effective Date set forth above to the end of the fund expenditure date included in the Urban and Multibenefit Drought Relief Grant Program (Drought Grant) unless extended or terminated by mutual agreement of the Parties.
5. Modification or Termination
This MOU may be modified or terminated with the concurrence of the RWMGs. Modification or termination shall be effective upon execution of a written agreement by all the RWMGs.
6. Notice
Any notices sent or required to be sent to any RWMG shall be electronically mailed to the representatives designated for each member agency of the RWMGs.
7. Funding Uncertainties
The RWMGs do not guarantee that these coordination efforts and applications for funding will result in actual funding of any specific project. Nothing in this MOU shall be construed as creating a promise or guarantee of future funding. No liability or obligation shall accrue to any Party if DWR does not provide funding in response to any Party’s application. The Parties are committed to planning and coordinating
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5 notwithstanding IRWM funding. The form of such coordination may change based on the sources of funding.
8. Indemnification
To the fullest extent permitted by law, each Party shall defend, indemnify and hold harmless the other Parties, their consultants, and each of their directors, officers, agents, and employees from and against all liability, claims, damages, losses, expenses, and other costs including costs of defense and attorneys’ fees, arising out of or resulting from or in connection with work performed pursuant to this MOU. Such obligation shall not apply to any loss, damage, or injury, as may be caused by the sole negligence or willful misconduct of a Party, its directors, officers, employees, agents, and consultants.
9. Miscellaneous Provisions
A. Governing Law: This MOU is to be construed in accordance with the laws of the State of California. Any action at law or in equity brought by any of the Parties shall be brought in a court of competent jurisdiction in Imperial, Riverside, or San Bernardino Counties, and the parties hereto waive all provisions of law providing for change of venue in such proceedings to any other county.
B. Severability and Validity of Provisions: If any provision of this MOU is held by a court to be invalid, void or unenforceable, the remaining provisions shall be declared severable and shall be given full force and effect to the extent possible.
C. Arms’ Length Negotiations: This MOU is the result of negotiations between the parties hereto and with the advice and assistance of their respective counsels. No provision contained herein shall be construed against any Party because of its participation in preparing this MOU.
D. Waiver: Any waiver by a Party of any breach by the other of any one or more of the terms of this MOU shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term hereof. Failure on the part of any of the respective Parties to require from the others exact, full and complete compliance with any terms of the MOU shall not be construed to change the terms hereof or to prohibit the Party from enforcement hereof.
E. Execution in Parts or Counterparts: This MOU may be executed and delivered in any number of parts or counterparts, hereinafter called "Counterpart". When each Party has signed and delivered at least one Counterpart to the other parties hereto, each Counterpart shall be deemed an original and, taken together, shall constitute one and the same MOU, which shall be binding and effective as to the Parties hereto. Facsimile or electronic signatures shall be binding.
F. Exclusive Expression of Agreement: This MOU is intended by the parties hereto as their final expression with respect to the matters herein, and is a complete and exclusive statement of the terms and conditions thereof. This MOU shall not be changed or modified except by the written consent of all Parties hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates shown on the attached counterpart signature pages:
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6 On behalf of the Mojave Regional Water Management Group:
Mojave Water Agency
Allison Febbo, General Manager Date
Technical Advisory Committee
Marina West, Chairperson Date
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7 On behalf of the San Gorgonio Regional Water Management Group:
City of Banning
Doug Schulze, City Manager Date
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8 On behalf of the Coachella Valley Regional Water Management Group Jim Barrett
Coachella Valley Water District
Bryan H. Montgomery
Indio Water Authority
Arden Wallum
Mission Springs Water District
Mark Krause
Desert Water Agency
Dr. Gabriel Martin
Coachella Water Authority
Beverli Marshall
Valley Sanitary District
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9 On behalf of the Imperial Regional Water Management Group:
Imperial County
Esperanza Colio, Deputy CEO Date
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10 Attachment A
Colorado River Funding Area and Planning Region Boundaries This figure shows the location of the Coachella Valley, Imperial, Mojave, and San Gorgonio IRWM Planning Regions within the Colorado River Funding Area. Please note that the Mojave IRWM Planning Region spans two Funding Areas: Lahontan and Colorado River, while the Coachella, Imperial, and San Gorgonio IRWM Planning Regions are wholly located in the Colorado River Funding Area. For the purposes of the Drought Grant, the Imperial IRWM Planning Region requested that the whole of Imperial County that is not included in an existing IRWM Planning Region be included in its Call for Projects. The DWR-accepted Imperial IRWM Planning Region boundary is shown as a dark purple line on the map below and the Call for Project boundary is shown extended to the eastern portion of the county via the dashed purple line. The 11 projects included in the January 2022 URC Set-Aside grant application are also shown on the map below.
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11 Attachment B
Allocation of Drought Grant Funds
DWR included a $5,000,000 Underrepresented Community (URC) set-aside in the Urban and Multibenefit Drought Relief Grant Program (Drought Grant) for each funding area that currently has a Proposition 1 DACI Grant Agreement. As the Colorado River Funding Area (CRFA) has a grant agreement between CVWD and DWR for the Proposition 1 DACI program, the CRFA is eligible to receive these funds if the CRFA submits an application. During a call on November 4, 2021, all Colorado River IRWM RWMGs agreed to use a funding split of 40% split evenly, and 60% of funds split by DAC population. Imperial RWMG returned a portion of their initial allocation ($31,234) to the CRFA, which was reallocated to increase grant administration funds and then reallocated based on DAC population in the other three RWMGs and the non-IRWM area.
This MOU addresses only the Drought Grant solicitation, which is allocated in accordance with the amounts shown in the following table.
Drought Grant -URC Set-Aside Solicitation
IRWM Region DAC Population Initial Allocation* Reallocation Final Allocation
Grant Administration N/A $340,000 +$15,000 $355,000
Coachella Valley 352,290 $1,846,967 +$10,804 $1,857,771 San Gorgonio 62,395 $512,304 +$1,022 $513,326
Mojave 138,843 $633,894 +$1,913 $635,807
Imperial 33,338** $953,792 -$31,234 $922,558
Non-IRWM 81,310 $713,044 +$2,494 $715,538
Total 668,176 $5,000,000 $0 $5,000,000
*Initial allocation was based on a 40% / 60% split, with 40% of the available funding being split equally between the four RWMGs and the non-IRWM area and the remaining 60% split by DAC population in each of the four RWMGs and nonIRWM area. **Note: DAC population within existing Imperial IRWM region only; eastern Imperial County DAC population is included in Non-IRWM population.
These funds will be disbursed through the existing DAC Involvement grant agreement. With respect to the funding designated to each planning region through this contract, the following shall apply:
1. The Colorado River IRWM RWMGs agree to use due diligence distributing and reimbursing for grant funding in an expeditious manner. Based on the current schedule elaborated by DWR, funding should be spent by March 31, 2026. To ensure that this condition is met, the RWMGs agree to do the following:
a. Review DWR invoices on a quarterly basis to monitor the amount of grant funding not yet encumbered.
b. As soon as practicable two and a half years after the contract has been executed with DWR, the RWMGs will conduct a formal evaluation of funds not yet encumbered. Any funding which has not yet been encumbered by one of the planning regions and the nonIRWM area is subject to redistribution. The redistribution calculation shall be determined first pursuant to the agreed upon allocation split based on DAC population and second determined by project need by Colorado River IRWM RWMGs.
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STAFF REPORT
7/13/2022
TO: Honorable Mayor and City Council Members
FROM: Nathan Statham, Finance Director
SUBJECT: Adopt an Annual Budget And Organizational Structure for Fiscal Year 2022-23 STAFF RECOMMENDATION:
Adopt Resolutions No. 2022-47, WA-2022-04, SD-2022-03, FD-2022-03 and CBL-2022-02 approving the annual budget and organizational structure for fiscal year 2022-23 for the City of Coachella and its component units.
BACKGROUND:
In the proposed budget for fiscal year 2022-23, the City of Coachella and its component units have budgeted revenues of $95.4 million and appropriations of $91.9 million. $17.5 million of these appropriations are for capital expenditures. The City’s General Fund has budgeted revenues of $31.8 million and expenditure appropriations of $31.8 million resulting in a balanced budget. The General Fund is projected to have total reserves of $25.3 million and unrestricted reserves of $17.8 million at June 30, 2023. Details are provided in the schedules and tables that follow.
Budget Preparation and Presentation
The budget process has been ongoing since February of this year. Department request budgets were prepared and presented to Council at the June 8, 2022 budget study session. These request budgets resulted in a deficit budget of $978,488. The City manager made adjustments reducing the deficit to $181,202 prior to proposing this budget. Based on the feed back from the Council study session and further analysis of the projected revenues and expenditures, the City Manager is recommending a balanced budget. The balanced budget allows for the increased service capacity discussed with Council at the study session but does not expend any General Fund reserves.
History
During the prior two fiscal years (2020-2021 - 2021-2022) the City of Coachella has seen a steady economic recovery for our community notwithstanding the effects of COVID-19. The voters passed Measure U, a sales tax rate increase of 1% in November of 2014 and initiated a cannabis tax in 2018.
These funds and increases in other revenue sources along with under budget expenditures have provided for significant surpluses in the past two years. However, the City incurred steep increases in contract costs with Riverside County Sheriff and Riverside County/Cal Fire for Police and Fire services. Measure U sales tax revenue and the City’s Public Safety CFD (2005-1) continue to allow the City to cover these