12/12/1988 Meeting (2) - Laserfiche WebLink

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e made to the State for public works grant/loan activity to extend a water line to the Swenson Brothers pizza facility. The grant was awarded, the line has been completed, a bill has been received from EWEB, and adoption of the resolution fulfills the final State requirement needed to obtain cash disbursement. Res. No. 4103--A resolution approving and authorizing execution of financial assistance contract with the State of Oregon to fund a water line installation. Ms. Bascom moved, seconded by Ms. Schue, to adopt the resolution. Roll call vote; the motion carried, 5:0:1, with Councilor Holmer abstaining because his agenda was incomplete. X. RESOLUTION CONCERNING ICMA RETIREMENT TRUST DECLARATION Tim Sercombe, City Attorney's Office, explained that the International City Managers Association (ICMA) is the pension fund manager for six former City employees. The Federal government requires ICMA to hold those assets through a trust. ICMA is asking the City to approve the ICMA Declaration of Trust which will have ownership of those pension funds. If the trust is not approved, the funds held by ICMA for former City employees may be declared taxable income. The resolution will authorize the City's participation with respect to information flow about that trust. e Responding to Mayor Obie's question, Mr. Sercombe said the trust will have a governing body that will report to the trustee, composed of representatives of employees from around the country who participate in the trust. That trustee has not yet been selected. Mr. Bennett thought it was possible to transfer funds from one retirement trust to another vehicle, and Mr. Sercombe said it was unclear whether taking funds from ownership by a trust, owning it oneself, and then transferring it to another beneficial owner was a taxable event, but he assumed the affected former employees want their funds to continue to be managed in such a way that they continue to be untaxed. Mr. Bennett said Mr. Sercombe1s comment did not answer the question he had asked about transferring funds and it appeared that the employees do not desire to have that occur. Mr. Gleason said it was typical for previous city managers to hold the trust in ICMA and transfer it around the country. Mr. Holmer pointed out that the matter before the council identified a Declaration of Trust attached as Exhibit A, but that attachment was not included in the agenda packet. In his opinion, acting to pass a resolution without having the document on which action is being taken before the council would be careless. e MINUTES--Eugene City Council December 12, 1988 Page 8 ....