HomeMy WebLinkAboutA001 - Cover letter dated May 26, 1995 e
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AMES CITY OF AMES
CITY ATTORNEY'S OFFICE X 811 AMES IOWA 50010
Community-University-Opportunity 515 CLARK AVENUE
PHONE 515-239-5146 A FAX 515-239-5142 Q
May 26, 1995 4 c�6, �s
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The Honorable Larry R. Curtis, Mayor,
And Members of the Ames City Council
Re: Ordinance to Correct Typographical error in Utility Retirement Ordinance
Dear Mayor Curtis and Council Members:
As explained by the attached minutes of the Utility Retirement System Board of Trustees,
a typographical error occurred to Subsection 28.402(3) of the Ames Municipal Code in
the enactment of Ordinance 2494 on December 17, 1974. The attached ordinance is
submitted for correction of that error.
Yours truly,
John Qaus
City Attorney
JRK:dls
cc Alice Carroll, Finance Director
John Ringelestein, Chairman of Board of Trustees
MAY 2 4 1995
AMES, IOWA MA4UKUDEPT.
The Utility Retirement Board met Monday, May 15, 1995, at 7 p.m. in Room 235 of City
Hall.
Present: Ringelestein, Ball, Titus, Hoffman, Adams, Pinkham, Meier, and Carroll
Absent: Empson, Parks, Klaus and Weber
Also Present: Harold Ault, Donn Jones (Mammel and Associates)
Chairman Ringelestein called the meeting to order at 7:04 p.m. He announced that two
items were tabled at the May 10, 1995, meeting and the Board should consider the
minutes of April 20 first. Carroll stated that those minutes were not available for
distribution and moved approval be tabled until the next meeting. Adams seconded, the
motion passed.
It was noted that Weber should have been included in the those absent at the May 10
meeting. Carroll 'moved the minutes of May 10 be amended for that inclusion and be
approved as amended. Titus seconded, the motion passed.
The other item tabled on May 10 was a disability request from Cheryl Moothart-Catus.
Ringelestein had obtained the necessary documentation and presented letters from
Moothart-Catus, her physician and department head. Pinkham moved, seconded by
Carroll, that the request for 50% disability status, effective immediately, be granted . The
motion passed.
The next item on the agenda was a discussion regarding the definition of creditable
t service. John Klaus had researched the issue and sent a memo to members of the
Board. It appears that in 1975, in the process of revising other sections of the municipal
code governing Utility Retirement, a typographic error occurred. As a result, the wording
of the definition was changed from "...but not excluding military duty and period of
disability..." to read "...but not including military duty and periods of disability..." Klaus
stated in his memo that if the Board agreed, he would take the necessary action to
correct the error. Titus moved, seconded by Pinkham, to ask Klaus to make the
correction to the text in the ordinance. The motion passed.
The next item on the agenda was review of the July 1, 1994, Actuarial Report. Donn
Jones of Mammel and Associates was at the meeting. Mr. Jones reviewed all the factors
involved in the preparation, discussed the assumptions used and presented
recommendations on the continued use of the same assumptions. The valuation results
showed a required contribution level of 15.28%. Carroll moved, seconded by Ball, the
report be accepted and presented to the City Council. The motion carried.
The next item on the agenda was a discussion on member education methodology for
comparison of defined contribution and defined benefits systems. Carroll had asked Mr.
Jones to discuss this with the Board members and provide an estimate of the cost of
consulting services.
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Mr. Jones provided the Board members with an outline of the type of information that
would help members make a comparison of the two different types of retirement plan.
For a defined contribution system, an. estimate of accumulated account balances at
retirement age could be calculated for each member, considering the beginning account
balance (allocation of excess assets), future contributions, and investment income and
growth. The accumulated account balance could then be compared to the actuarial
present value of benefits available at retirement from the existing plan.
Mammel and Associates would prepare the benefit projections including personal ledgers
and graphic and alternate investment return assumptions, if desired, at a cost of $500
plus $5 per participant (approximately $1,275 total). They would also prepare a plan
termination valuation - necessary to arrive at an asset allocation determination. The
valuation would include: annuity purchase cost estimate, an estimate of the cost of a
replacement disability benefit, a valuation of earned benefits, the estimated plan surplus
and a plan for allocation of the surplus to active participants. The cost for a termination
.valuation would be $1500.
Carroll moved that the Board contract with Mammel and Associates to prepare a
termination valuation and benefit projection using data to be provided at the end of FY94-
95. Ball seconded, the motion passed.
In items for future agendas, Meier distributed an investment report. The report will be
discussed at the next meeting.
Carroll moved the meeting adjourn, Titus seconded, the meeting adjourned at 8:23 p.m.
t
Lar
Al . Cr , Recording Secretary
Utility Retirement Board
CITY OF AMES, IOWA