AN ORDINANCE related to the City's Voluntary Deferred Compensation Plan, adopting a recordkeeping contract for administrative and investment services, and amending Ordinance 115911 as amended by Ordinance 118327.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 1 of Ordinance 115911, as most recently amended by Ordinance 118327, Section 1, is further amended as follows:

Agreements Authorized. Consistent with other applicable City laws and practices, the Personnel Director is authorized to negotiate, execute and deliver, and the Finance Director to attest, for and on behalf of the City of Seattle, an The executed agreement between the City of Seattle and with Fidelity Investments Public Sector Services Company attached hereto as Exhibit "A" is hereby accepted. to act as the Plan Administrator for the City's Deferred Compensation Plan. The agreement shall provide substantially for the following terms and conditions:

The Plan Administrator's affiliate shall act as trustee and manage a trust account for the deferred compensation funds transferred by the City of Seattle on behalf of its deferred compensation plan participants. A separate trust account shall be established for the funds transferred to the Plan Administrator, and no funds from other non-City sources should be co-mingled with City funds. Expenses of the Plan and the City's administrative expenses shall be offset by fees drawn upon the trust account as provided in the Plan Administrator's agreement with the City. Excess interest shall be used for the benefit of Plan participants.

The Plan Administrator shall provide recordkeeping services for the City and for plan participants. In maintaining the trust account and recordkeeping for plan participants, the Plan Administrator shall comply with all applicable federal laws, requirements, and guidelines applicable to deferred compensation plans maintained by public employers, including Section 457 requirements.

The Plan Administrator shall establish an individual subaccount for each Plan participant.

Individual quarterly subaccount reports for each plan participant shall be mailed to each participant no later than 30 days following the end of each quarterly period. The individual statement of account shall indicate at a minimum the deferred amounts received and processed by the Plan Administrator for each participant, the total account value including earnings by investment product. The format and content of individual account reports shall be approved by the City.

The City shall within 60 days after the end of each quarterly period provide the City's Personnel Director and Director of Finance with a statement of account which shall summarize all participant activity occurring during the reporting period. In addition, the Plan Administrator shall submit quarterly account activity reports, participation reports and other reports or information to enable the City to meet applicable state and federal tax codes or to efficiently administer its Deferred Compensation Plan.

Investment products identified in the Plan Administrator's proposal and accepted by the City shall be made available to Plan participants by the Plan Administrator, or if Plan participants have invested in other investment options not provided by the Plan Administrator, account information regarding such other investment options shall be included in participants' account statements.

The City and Plan Administrator may negotiate a method for including information in participant accounts for investment products or options not offered by the Plan Administrator.

The agreement shall provide for the effective date of allocation of each participant's deferrals, and a method for correcting errors in deduction and recordkeeping.

The agreement shall provide a method for the timely and efficient transition of deferred funds from the City's previous Plan Administrator.

The compensation for the services rendered by the Plan Administrator whether to the participants or the City shall not exceed the fee proposed by the Plan Administrator in its response to the City's request for proposals. The agreement shall provide for administrative fees charged by the City for its operation of the Deferred Compensation Plan, and shall provide for a method of assessing the fee to the participants. No other fees, charges or other expenses to the City or plan participants shall be allowed under the Plan Administrator's agreement.

All materials records and accounting records shall be confidential and private and non disclosure provision shall be incorporated into the agreement.

The ownership of all materials records, documents and accounting records relative to the deferred or invested amounts of the deferred compensation plan shall be the property of the City, and the agreement shall provide for free access to any such materials by authorized City employees.

The Plan Administrator shall provide enrollment services, information, literature, and shall participate in employee meetings. The Plan Administrator shall provide the services of a full-time representative in an office location within or adjacent to a City owned building or in the downtown area which shall be open from 9 a.m. to 5 p.m. during weekdays.

Telephonic enrollment services and telephone fund transfer capability shall be made available to all participants. Telephonic availability hours shall be 24 hours 7 days a week.

All representatives of Plan Administrator shall be properly licensed and qualified as required by state, local and federal governments to sell mutual funds and other investment products offered by the Plan Administrator. In addition the Plan Administrator shall meet all state, local and federal laws governing its activities under the agreement.

The agreement shall be for a period of one year, unless extended or terminated for cause.

The Plan Administrator shall provide appropriate indemnification, bonding, and insurance coverage to protect the City, the plan participants, and the Plan Administrator's risks under this agreement.

r) The agreement may include any other terms and conditions as may be necessary for the City to meet its obligations under the applicable local, state, and federal laws or to enable Plan participants to effectively manage their deferrals under the plan.

Upon the execution of an agreement between Fidelity Investments Public Sector Services Company and the City of Seattle in accordance with the terms and conditions set out in Section 1, Fidelity Investments Public Sector Services Company shall be the Plan Administrator as defined in the agreement and sole provider of recordkeeping administrative services and investment selections for participants in the City's Voluntary Deferred Compensation Plan, established by Ordinance 112516.

The Personnel Director )) The Director of the Department of Executive Services is further authorized to negotiate or accept changes in the above contract as necessary from time to time to reflect changes in the United States Internal Revenue code requirements for eligible deferred compensation plans (26 USC ( 457) and implementing regulations.

Section 2. Execution of the agreement contemplated in Section 1, and other actions to implement this ordinance made prior to its effective date are hereby ratified and confirmed.

PASSED by the City Council of the City of Seattle this

day of

_______________, 1997, and signed by me in open session in authentication of its passage this day of

, 1997

__________________________________

President _________ of the City Council

Approved by me this day of

, 1997.

__________________________________

Mayor

Filed by me this day of

, 1997.

__________________________________

City Clerk

(Seal)

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