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Home My WebLink About1997 09 22 Consent Item D COMMISSION AGENDA ITEM D September 22 1997 Meeting REGULAR CONSENT INFORMATIONAL ,..--- x REQUEST: The City Manager is requesting the City Commission authorize the City Manager to retain the services of Gray, Harris and Robinson, Attorneys at Law, to develop new pension plan documents. PURPOSE: The purpose of this agenda item is for the City Commission to authorize the City Manager to retain the services of Gray, Harris and Robinson, Attorneys at Law, to develop all the necessary documents to implement the City's new pension plan. cONSIDERA TIONS: This authorization is needed to allow the City Manager to retain the services of Mr. Rick Burke of Gray, Harris and Robinson, Attorneys at Law, to prepare all the documents necessary to implement the City's new pension plan. At the August 25, 1997 City Commission meeting, the City Commission authorized the City Manager to employ a competent attorneY,specializing in retirement plans to draft a new set of pension documents. Bates and Turner, the City's pension plan consultants recommended Mr. Rick Burke of Gray, Harris and Robinson as a competent attorney specializing in retirement plans. The City asked Tom Lang, attorney for the City's pension board, to ascertain ifMr.Burke was qualified to draft the new pension plan documents. The attached correspondence from Mr. Lang confirms that Mr. Burke is qualified. Page 1 FUNDING: Funds are available in the FY 97/98 budget. REcOMMENDA TION: It is recommended that the City Commission authorize the City Manager to retain the services of Gray, Harris and Robinson, Attorneys at Law, to develop all the necessary documents to implement the new pension plan for a fee not to exceed $10,000 plus expenses. ATTACHMENTS: Gray, Harris and Robinson's proposal. September 5, 1997 correspondence from Mr. Tom Lang. COMMISSION ACTION: Page 2 GliA")..". H.AB.RIS 8; ROBINSON J. eHARLES GF?AY GOROON 1-1. HARRIS "'''''ARC M. ROB'NSON "'HILLIP R. F"NCM PAtoIELA O. "'RIC": "'A~ES 1". PAGIt. ..JR. WILLIA"" .... BOYLES TMO/llAS A. CLOUO aVl'lO F". """RSHALL, JI'l. .... MASON WILLIAMS. In LiD P. ROCK. ..JI:!. G. ItOfoERT90N OILG CHARLES W. "~LL .JACK .... K'I'tSCH(:NQ...",M RICHARD E. IlYFlKE GUY s. I'tAOOARO .,.."t;OEAICK W. LEON"...R!)T BORRON .... OWEN. Jl'l. M'CHAEL K. W'~$QN ,JEF"F"REY C. tI=INE;R PAUL S. OUINN. ,JR. DAVID L. SCI-1ICtI ,JACK K. MCMULLI!:N SUSAN '1'. $I>I'I"OLEV l-lICHAEL e:. NEUKAM... DONALD A. /IlO,../UI PHIL'P 1". NOHRR WIL.L-IAM o. eOL.,.IN,ln <>PO,ESSIOIJ.lL A5:S0CIAT'ON R. L.EE BENNETr T~ACY A. MAR9HALl. .JOHN A, KIRSTt .jR. WILBUR E. BREWTON "'!:NNE;TH ,J. PLANTE MICMAEL E. WRIGHT WII.I.IAM A. GRIMM ATTO~NEYS AT LAW SuiTE 1200 201 ~A:lT PINE STREET POST OF"I"Ce ElOX :IDea ORLANDO, FL 3~802- 30G8 TEI.EPHONe: (<lo7l e4~' eSSO I'M (.07] 244.5690 WRITt,,'S DIRECT DIAL tlENT L. ..,.... ROBERT L. SEALS DONALD H. G'BSON KIM~e"l..Y .NOWOR'l"TA ~1,JNNer., CHRISTOPHER .... COLEMAN IlIAVC!! M. HARRIS "I. ClI!:,ll.N l;ANNON. ...R. F"RANK .... HA"'Ne:FI RIC..AACI .... FlOOOe:FlS ALISON "t. YURKO KI':I"I"Y "". FITZQERALD KKLLY BREWTON PLANTE 1..ItE M. 1lC11.L.INQE~ .;. SCOT'!' SIMS CATHERINE W. J:lItCK E' ...AIL ADDRESS rburke@ghrlaw.com OF' COUNSEL MALC:OI"M R. KIR9CHI!NBAlJM SYONiV 1... .,IACKQWITZ Tf-lE:OCORi I.. SHINKI.E loll-A IN(J",'tc:. ....::.I..U::td~;Y September IS, 1997 Mr. John Drago Assistant City Manager City of Winter Springs 1126 East SR 434 Winter Springs, FL 32708 VIA FACSIMILE 327-6912 Re: Proposal for Legal Services for Retirement Plans for City of Winter Springs Dear John: Pursuant to your request, I am writing this letter to formalize our proposal with respect to the legal services involved in the revision of the City's "qualified" retirement system. It is my understanding that the City desires to adopt a "floor-offset arrangement" effective October 1, 1997. This is a complex retirement system utilizing a defined benefit plan ("DBP") and money purchase plan ("MPP"). However, unlike a traditional DBP/MPP combination, under a floor-offset arrangement, the participant account balances in the M:PP are actuarially converted into DBP type "benefit accruals" which. reduce the actual benefit accruals provided under the DBP. This is a wonderful system which, in essence, provides participants with the greater of the benefits under both plans. This arrangement is particularly helpful for employees hired by the City during their later years since the DBP can provide a more meaningful retirement benefit for such employees than the existing MPP. In order to accomplish your objectives it is necessary to totally restate your existing -rvn>P and adopt a new DBP. The MPP must be restated in order to properly coordinate this plan with the DBP due to the "integrated" nature of a floor-offset arrangement. Please: be advised that the MPP must be restated for the Tax Refonn Act of 1986 by the end of the ; .'~ i::. :,: ',,": '.. .., ".; t. a ~,-.:. ~.!~" .:~ i .11. t. ..:. .... .~ ': = ;: ~ I,'~::'_ '.'~':" ':::'l~:<':' ;,':~)7\ 3..:l.:.!.8~;~::: ::~'O..i ,::".:l.':':1 " GRAY. HARRIS & ROBINSON Professional AssociatIon Mr. JOM Drago City of Winter Springs Page 2 1999 plan year. The restated MPP will include all amendments to satisfy this requirement. In addition to drafting the necessary plan documents, our legal services will include the prepar-ation of the following documents for each plan: 1. Summary Plan Description; 2. Administrative Fonns; 3. Memorandum on Use of Administrative Fonns; 4. Memorandum on Maintaining a Qualified Plan; 5. Memorandum on the Unemployment Compensation Act of 1992; 6. Summary of the Unemployment Compensation Act of 1992; 7. Summary of Pension Provisions of the Small Business Job Protection Act of 1996; 8. Explanation of USERRA; 9. Correspondence to City personnel transmitting all docwnents, including IRS submission package (see 11 below); 10. Resolutions adopting the DBP and the restated MFP; 11. IRS submission package requesting a favorable determination letter ("FDL") which requires preparation of the following documents: a. IRS Form 5300; b. IRS Fornl Schedule Q; c. IRS Rev. Proc. 93-39 Demonstrations; d. IRS Form 2848; e. IRS Fonn 8717; [, IRS Form SS-4; g. Notice to Interested Parties of FDL request; h. Transmittal correspondence to IRS for FDL request. In addition, our services will include all necessary communications with the appropriate IRS Key District personnel regarding the PDL submission request. Further, I am anticipating various conferences with City personnel and other outside service providers. All of the above legals services will be provided on an hourly rate basis. My hourly rate is $235.00 and my paralegals' hourly rate IS $60.00. I estimate the legal fees will be in the $8,000 - $1.0,000 range. Other expenses will include the IRS lIuser fee'! for the FDL request which is $700 per plan, and our out-of~pocket expenses (e.g., postage, long distance GRAY, HARRIS & ROBINSON professional AssocIation Mr. Jo1m Drago City of Winter Springs Page 3 telephone calls. etc.). However, you will not be billed for any copy costs. I hope this letter adequately addresses your request. I truly look forward to the opportunity of serving the City of Winter Springs. If you have any questions, please contact me. Very Truly Yours. R~-~-.~ t.. ~ Richard E. Burke REB/yb cc: Thomas F. Lang, Esq. (via facsimile) db:lproposal.ltr ~ VV.L ~ ,\.J.U::':~, LANG, J~'lOl{J..USON & GCHOTTO. P.A. ....'l'TOH;>;EYS .\.1' I."\W 105 EAS't ROBINSON STRIi:E:T. SUITE ;;l01 OR......NOO. F"LORIO... <l~eOI-I<:;U!> POST Of"f"JCE BOX .3Gcf.\ ORLANOO, f"LORIOA .32BOZ.J6~e TE:LE:PMONE (407) 4cc-8250 FAX 140?) 42Z-BZGc M E M 0 RAN DUM P~lnJ SEP 0 5 1997 SENT VIA FAX - 327-6912 CITY OF WINTER SPR Criy Manag~r INGS TO: John Drago Thomas F. Lang~. September 5, 1997 FROM: DATE: RE: Winter Springs Pension Plan -----------------------------------------------------~----------- This is a follow-up on my prior memo and our conversations. I have spoken with Rick Burke. I am of the opinion that he is qualified to draft the revised plans. I am going to have the existing Plan with amendments delivered to him on Monday. Hopefully, he will be able to give more definition to his proposal. Please call if you have questions. S;\TJP\D~~GO.M~