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HomeMy WebLinkAbout2009.03.03_City Council AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO CITY COUNCIL TYPE OF MEETING: Regular DATE: March 3, 2009 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch Notice and agenda filed in the office of the City Clerk and posted at City Hall at 5:00 p.m. on Friday, February 27, 2009. lltr7 iann M. Stevens, Deputy City Clerk AGENDA 1. Call to Order Mayor Stephen Cataudella 5. Presentation of the Character Trait of Sincerity, followed by a Public Service Announcement. Carol O'Daniel, Owasso Character Council S 'Agendas\Council\2009\0303. doc Owasso City Council March 3, 2009 Page 2 6. Consideration and appropriate action relating to a request for Council approval of the Consent Agenda. All matters listed under "Consent" are considered by the City Council to be routine and will be enacted by one motion. Any Councilor may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non-debatable. A. Approval of Minutes of the February 17, 2009 Regular Meeting. Attachment # 6-A B. Approval of Claims. Attachment # 6-B C. Approval of Ordinance No. 937, an ordinance amending the Oklahoma Municipal Retirement Fund Defined Benefit and Defined Contribution Plan by incorporating revised regulations in accordance with the Internal Revenue Service. Attachment # 6-C D. Approval of Ordinance No. 938, an ordinance approving OPUD 08-03, a planned unit development on property located at the southeast corner of E. 76`h Street North and N. 129" East Avenue. Attachment # 6-D E. Acceptance of a donation from the Owasso Veterans of Foreign Wars, Post 7180 and Ladies Auxiliary in the amount of $1,200; and, approval of a supplemental appropriation increasing estimated revenues and the appropriation for expenditures in the General Fund, General Government Budget by $1,200. Attachment # 6-E 7. Report from City Manager. 8. Report from City Attorney. 9. Report from City Councilors. Owasso City Council March 3, 2009 Page 3 10. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 11. Adjournment. OWASSO CITY COUNCIL MINUTES OF REGULAR MEETING Tuesday, February 17, 2009 The Owasso City Council met in regular session on Tuesday, February 17, 2009 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Friday, February 13, 2009. ITEM 1. CALL TO ORDER Mayor Cataudella called the meeting to order at 6:30 p.m. ITEM 2. INVOCATION The invocation was offered by Dr. Roger Ferguson, First Baptist Church. ITEM 3. FLAG SALUTE Councilor Gall led the flag salute. ITEM 4. ROLL CALL PRESENT Steve Cataudella, Mayor Doug Bonebrake, Councilor D.J. Gall, Councilor Wayne Guevara, Councilor A quorum was declared present. ABSENT Jon Sinex, Vice Mayor STAFF Rodney Ray, City Manager Julie Lombardi, City Attorney Owasso City Couyzcil February 17, 2009 ITEM 5. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL APPROVAL OF THE CONSENT AGENDA A. Approval of Minutes of the February 3, 2009 Regular Meeting and the February 10, 2009 Special Meeting. B. Approval of Claims. C. Acknowledgement of receiving the monthly FY 2008-2009 budget status report. D. Approval of a request for early retirement from the Oklahoma Municipal Retirement Fund for Nancy Edwards. Mr. Bonebrake moved, seconded by Mr. Guevara, to approve the Consent Agenda with claims totaling $495,612.81. Also included for review were the healthcare self-insurance claims report and payroll payment report for pay period 1/31/09. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. ITEM 6. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL CONFIItMATION OF THE MAYOR'S APPOINTMENTS TO VARIOUS BOARDS AND COMMISSIONS Mayor Cataudella presented the item, recommending Council confirmation of the following citizen appointments to various committees. Wayne Ruess Charlie Brown Megan Mooney Mark Schneider Matt Roberts Larry Langford Capital Improvements Committee Capital Improvements Committee Sales Tax Watchdog Committee Sales Tax Watchdog Committee Sales Tax Watchdog Committee Sales Tax Watchdog Committee Mr. Bonebrake moved, seconded by Mr. Guevara, for Council confirmation of the Mayor's appointments, as recommended. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. 2 Owasso City Council February 17, 2009 ITEM 7. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL APPROVAL OF OPUD 08-03, A PLANNED UNIT DEVELOPMENT, CONSISTING OF APPROXIMATELY 7.7 ACRES WITH AN UNDERLYING ZONING OF CS (COMMERCIAL SHOPPING) AND LOCATED ON THE SOUTHEAST CORNER OF NORTH 129TH EAST AVENUE AND EAST 76TH STREET NORTH Ms. Darnaby presented the item, recommending Council approval of OPUD 08-03, a Planned Unit Development, consisting of approximately 7.7 acres, located on the southeast corner of North 129" East Avenue and East 76t" Street North. Owasso citizen, Mr. Charles Blackie, who had requested to address the Council on this item, stated he would reserve his questions until the Council discussed the drainage issues at a future meeting. Mr. Bonebrake moved, seconded by Mr. Guevara, for Council approval of OPUD 08-03, as recommended. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. ITEM 8. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL APPROVAL OF A SUPPLEMENTAL APPROPRIATION INCREASING THE ESTIMATED REVENUES AND THE APPROPRIATION FOR EXPENDITURES IN THE CAPITAL IMPROVEMENTS FUND Ms. Bishop presented the item, recommending Council approval of a supplemental appropriation increasing the estimated revenues and the appropriation for expenditures in the Capital Improvements Fund by $1,500,000. Mr. Guevara moved, seconded by Mr. Bonebrake, for Council approval of supplemental appropriations in the Capital Improvements Fund, as recommended. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. 3 Owasso City Council February 17, 2009 ITEM 9. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL APPROVAL OF A SUPPLEMENTAL APPROPRIATION INCREASING THE ESTIMATED REVENUES AND THE APPROPRIATION FOR EXPENDITURES IN THE HOTEL TAX FUND Ms. Bishop presented the item, recommending Council approval of a supplemental appropriation increasing estimated revenues by $46,000 and increasing the appropriation for expenditures by $35,000 in the Hotel Tax Fund, Economic Development Department -Strong Neighborhood Program. Mr. Bonebrake moved, seconded by Mr. Guevara, for Council approval of supplemental appropriations in the Hotel Tax Fund, as recommended. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. ITEM 10. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR COUNCIL APPROVAL OF RESOLUTION NO. 2009-02, A RESOLUTION AUTHORIZING AND APPROVING THE ISSUANCE BY THE OWASSO PUBLIC WORKS AUTHORITY OF AMENDED PROMISSORY NOTES TO THE OKLAHOMA WATER RESOURCES BOARD PERTAINING TO THE CONVERSION OF THE AUTHORITY'S SERIES 1999B PROMISSORY NOTE, SERIES 2001B PROMISSORY NOTE, AND SERIES 2001C PROMISSORY NOTE FROM A VARIABLE INTEREST RATE TO A FIXED INTEREST RATE; AND CONTAINING OTHER PROVISIONS RELATED THERETO Ms. Bishop presented the item, recommending Council approval of Resolution No. 2009-02 approving the issuance by the OPWA of Amended Promissory Notes to the OWRB pertaining to the conversion of notes from a variable interest rate to a fixed interest rate and other related provisions. Mr. Bonebrake moved, seconded by Mr. Guevara, for Council approval of Resolution No. 2009- 02, as recommended. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0. 4 Owasso City Council February 17, 2009 ITEM 11. DISCUSSION RELATING TO THE USE OF RECORDING EQUIPMENT DURING ALL PUBLIC MEETINGS FOR THE CITY OF OWASSO Councilor Gall presented the item, asking for discussion between Council and citizens for the use of recording equipment during all of the City's public meetings for the purpose of making these recordings available to citizens. Citizens speaking in favor of recording all public meetings were Mr. Cory Capps and Mr. James Parsons. Mayor Cataudella requested the City Manager authorize a study on how various communities that now provide audio and video recordings handle the storage and archiving of the recordings, and a report on all additional costs that would be incurred. ITEM 12. REPORT FROM CITY MANAGER Mr. Ray congratulated Eric Wiles, Director of Community Development, who recently received his AICP Designation from the American Institute of Certified Planners. John Feary from the Public Works Department updated the Council on the 129th East Avenue Project. Mr. Ray also reported that notification had been received that the State had approved partial funding for the 106th Street North and Garnett Road Project. ITEM 13. REPORT FROM CITY ATTORNEY No report ITEM 14. REPORT FROM CITY COUNCILORS Councilor Gall reported on two storm water issues that were reported to him after the last rain. Mr. Ray said Public Works would check in to these issues immediately. ITEM 15. NEW BUSINESS None Owasso City Council ITEM 16. ADJOURNMENT Mr. Guevara moved, seconded by Mr. Bonebrake, to adjourn. YEA: Bonebrake, Cataudella, Gall, Guevara NAY: None Motion carried 4-0 and the meeting was adjourned at 7:20 p.m. February 17, 2009 Stephen Cataudella, Mayor Pat Fry, Minute Clerk 6 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount MUNICIPAL COURT OFFICE DEPOT INC OFFICE SUPPLIES 55.09 TREASURER PETTY CASH MEETING EXPENSE 51.15 OKLAHOMA MUNICIPAL LEAGUE CERTIFICATION TRAINING 70.00 TOTAL MUNICIPAL COURT 176.24 MANAGERIAL JPMORGAN CHASE BANK OKLA BAR ASSOC-DUES 285.00 OWASSO CHAMBER OF COMMERCE REGISTRATION FEE - OWASSO 280.00 SAV-ON PRINTING & SIGNS LLC PRINTING SERVICES - COUNC 68.50 JPMORGAN CHASE BANK BARNES & NOBLE-BOOKS 46.55 USA MOBILITY WIRELESS, INC PAGER USE 7.70 OFFICE DEPOT INC OFFICE SUPPLIES 49.52 SAV-ON PRINTING & SIGNS LLC BUSINESS CARDS 30.00 CITY GARAGE CITY GARAGE LABOR CHGS - 83.33 CITY GARAGE CITY GARAGE PARTS -JAN 2 250.12 TOTAL MANAGERIAL 1,100.72 FINANCE OFFICE DEPOT INC OFFICE SUPPLIES 48.32 JPMORGAN CHASE BANK AMER PAYROLL-ANNUAL DUES 195.00 JPMORGAN CHASE BANK NOWDOCS-W'2/1099'S 120.45 TOTAL FINANCE 363.77 HUMAN RESOURCES OFFICE DEPOT INC OFFICE SUPPLIES 74.07 SAV-ON PRINTING & SIGNS LLC BUSINESS CARDS 40.00 CHARACTER TRAINING INSTITUTE CHARACTER INTIATIVE 458.24 URGENT CARE OF GREEN COUNTRY, P.L.L PRE-EMPLOYMENT DRUG SCREE 37.00 TOTAL HUMAN RESOURCES 609.31 HR -CHARACTER INITIATIVE INTEGRITY FOCUS CHARLES R COKER CHARACTER INITIATIVE 250.00 TOTAL HR -CHARACTER INITIATIVE 250.00 GENERAL GOVERNMENT OFFICE DEPOT INC OFFICE SUPPLIES 234.64 CRAWFORD & ASSOCIATES, P.C. PROF SVCS-PERFORMETER 2,500.00 AEP/PSO ELECTRIC USE 2,545.43 MAILROOM FINANCE INC POSTAGE 1,005.83 JPMORGAN CHASE BANK HOUSE OF VACUUM-BAGS 20.98 AT&T LONG DISTANCE LONG DISTANCE SERVICE 49.95 NEOPOST LEASING, INC POSTAGE -METER RATE CHAN 260.00 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 2,279.74 CINTAS CORPORATION CARPET-MAT CLEANING 21.40 GRAND GATEWAY ECO. DEV. ASSC. PELIVAN TRANSIT SERVICES 4,939.30 JPMORGAN CHASE BANK LAWN AMERICA-WEED CONTROL 141.25 TOTAL GENERAL GOVERNMENT 13,998.52 Page 1 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount COMMUNITY DEVELOPMENT SPRINT SPRINT CARDS 143.47 SAV-ON PRINTING & SIGNS LLC 100 STAKES FOR PERMIT SIG 300.00 CITY GARAGE CITY GARAGE LABOR CHGS - 166.66 CITY GARAGE CITY GARAGE PARTS -JAN 2 13.09 OFFICE DEPOT INC OFFICE SUPPLIES 15.54 USA MOBILITY WIRELESS, INC PAGER USE 15.40 JPMORGAN CHASE BANK RADIOSHACK-SURGE PROT 29.99 TOTAL COMMUNITY DEVELOPMENT 684.15 ENGINEERING TREASURER PETTY CASH ASCE MEMBERSHIP DUES 430.00 OFFICE DEPOT INC OFFICE SUPPLIES 58.16 CITY GARAGE CITY GARAGE PARTS -JAN 2 384.62 CITY GARAGE CITY GARAGE LABOR CHGS - 166.66 SPRINT SPRINT CARDS 95.64 JPMORGAN CHASE BANK DRY CLEANING ST-UNIFORMS 9.80 JPMORGAN CHASE BANK GELLCO-WORK BOOTS 141.29 TOTAL ENGINEERING 1,286.17 INFORMATION TECHNOLOGY SPRINT SPRINT CARDS 57.83 KARRY BRENT QUIETT WEBSITE PROGRAMMING CHANG 500.00 JPMORGAN CHASE BANK NUMARA-RENEW TRACK-IT 1,523.75 CITY GARAGE CITY GARAGE LABOR CHGS - 66.66 TOTAL INFORMATION TECHNOLOGY 2,148.24 SUPPORT SERVICES CITY GARAGE CITY GARAGE LABOR CHGS - 233.33 FROYLAN MARTINEZ REPAIRS IRRIGATION SYSTEM 1,760.00 U.S. SOURCE CONTROL, INC AIR DUCT CLNG SVCS - PUBL 1,765.00 UNIFIRST HOLDINGS LP UNIFORM RENTAL FEES 23.99 UNIFIRST HOLDINGS LP UNIFORM RENTAL FEES 24.26 RADIO SHACK CABLE FOR PD PROJECT 7.57 JPMORGAN CHASE BANK DOC LUNCHES 57.60 SAV-ON PRINTING & SIGNS LLC LETTERING 10.00 DIRT BUSTER'S INC. MONTHLY PKG LOT CLEANING 135.00 CARRIER COMMERCIAL SERVICE CARRIER ONE SYSTEM - SVC 692.00 USA MOBILITY WIRELESS, INC PAGER USE 7.70 OFFICE DEPOT INC OFFICE SUPPLIES 33.21 JPMORGAN CHASE BANK GELLCO-WORK BOOTS 116.99 JPMORGAN CHASE BANK MOTOROLA-PROG CABLE 45.50 SPRINT SPRINT CARDS 57.83 JPMORGAN CHASE BANK LOWES-BULBS FOR BATHROOM 11.98 CITY GARAGE CITY GARAGE PARTS -JAN 2 152.62 AT&T LONG DISTANCE LONG DISTANCE SERVICE 1.10 TOTAL SUPPORT SERVICES 5,135.68 Page 2 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amounl CEMETERY ESTES, INCORPORATED STORMWATER/VEG. SUPPLIES 1,323.75 VERDIGRIS VALLEY ELECTRIC COOP CEMETERY ELECTRIC 26.96 AEP/PSO ELECTRIC USE 34.09 TOTAL CEMETERY 1,384.80 POLICE SERVICES AEP/PSO ELECTRIC USE 1,897.04 JPMORGAN CHASE BANK ULINE-EVIDENCE GUN BOX 18.94 JPMORGAN CHASE BANK OFFICE DEPOT-SUPPLIES 19.99 LAW ENFORCEMENT PSYCHOLOGICAL SERV 4 PSYCHOLOGICAL EVALS 320.00 POLICE PETTY CASH PETTY CASH REIMBURSE 93.81 POLICE PETTY CASH PETTY CASH REIMBURSE 23.00 LAW ENFORCEMENT PSYCHOLOGICAL SERV MMPI-2 TESTS- PSYCHOLOGIC 240.00 USA MOBILITY WIRELESS, INC PAGER USE 154.26 CITY GARAGE CITY GARAGE LABOR CHGS - 4,583.33 OFFICE DEPOT INC OFFICE SUPPLIES 77.70 TREASURER PETTY CASH NOTARY FEE/HOWARD 25.00 OFFICE DEPOT INC 2 OFFICE CHAIRS - PD 325.00 JPMORGAN CHASE BANK DECATUR ELEC-RADARS 4,740.00 VCA ANIMAL HOSPITAL, INC FOOD FOR BENY 78.14 BROWN FARMS LLC BERMUDA SOD 80.00 YALE CLEANERS, INC UNIFORM CLEANING 1,517.07 JPMORGAN CHASE BANK USPS-POSTAGE 51.80 AT&T LONG DISTANCE LONG DISTANCE SERVICE 48.74 JPMORGAN CHASE BANK LODGING-LONG 83.00 CITY GARAGE CITY GARAGE PARTS -JAN 2 3,156.27 JPMORGAN CHASE BANK OFFICE DEPOT-SUPPLIES 19.32 JPMORGAN CHASE BANK DELL-TONER CARTRIDGE 176.68 JPMORGAN CHASE BANK ACADEMY-FIREARMS 1,329.93 JPMORGAN CHASE BANK ACADEMY-FIREARMS 949.95 JPMORGAN CHASE BANK DAMS STANTON-UNIFORM BAR 180.50 JPMORGAN CHASE BANK PSM-CELLPHONE TRACKER 39.95 SPRINT SPRINT CARDS 583.84 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 826.40 HAROLD LEE WITHROW RE-WIRE ALARMS ON UNITS 80.00 RICH &CARTMILL NOTARY BOND FOR TRUMAN MA 30.00 RICH &CARTMILL NOTARY BOND FOR DEBBIE TU 30.00 JPMORGAN CHASE BANK MEETING EXPENSE 5.52 JPMORGAN CHASE BANK ANCHOR PAINT-PAINT 74.35 JPMORGAN CHASE BANK SIRCHIE-SUPPLIES 230.24 TOTAL POLICE SERVICES 22,0$9.77 POLICE COMMUNICATIONS JPMORGAN CHASE BANK WALMART-PRISONER MEALS 122.50 JPMORGAN CHASE BANK OFFICE DEPOT-CD'S/DVD'S 100.95 JPMORGAN CHASE BANK DELL-TONER CARTRIDGE 176.68 LAW ENFORCEMENT PSYCHOLOGICAL SERV PSYCH EVALUATION 80.00 Page 3 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amounl POLICE COMMUNICATIONS... JPMORGAN CHASE BANK WALMART-PRISONER MEALS 3.56 JPMORGAN CHASE BANK CLASSROOM CRN-LAMINATION 4.90 USA MOBILITY WIRELESS, INC PAGER USE 99.80 INFORMATION TECHNOLOGIES, INC INTERFACE - LIVESCAN CROS 3,023.00 DEPARTMENT OF PUBLIC SAFETY OLETS EQUIPMENT & DATAMAX 450.00 POLICE PETTY CASH PETTY CASH REIMBURSE 20.98 AEP/PSO ELECTRIC USE 157.48 RICH & CARTMILL NOTARY BOND- MIKAH HOWARD 30.00 TOTAL POLICE COMMUNICATIONS 4,269.85 ANIMAL CONTROL AEP/PSO ELECTRIC USE 645.85 ANNE K. KARN SPAYING AND NEUTERING 640.00 HILL'S PET NUTRITION SALES, INC SHELTER SUPPLIES 26.25 HILL'S PET NUTRITION SALES, INC SHELTER SUPPLIES 26.25 ANNE K. KARN SPAYING AND NEUTERING 670.00 USA MOBILITY WIRELESS, INC PAGER USE 7.70 CITY GARAGE CITY GARAGE LABOR CHGS - 166.66 JPMORGAN CHASE BANK WALMART-SUPPLIES 81.42 FULLERTON HYDRO-TEST INC. MEDICAL LEASE 160.00 AT&T LONG DISTANCE LONG DISTANCE SERVICE 1.80 JPMORGAN CHASE BANK JP COOKE-RABIES TAGS 50.43 JPMORGAN CHASE BANK MED-VET-SYRINGES 16.50 TOTAL ANIMAL CONTROL 2,492.86 FIRE SERVICES JPMORGAN CHASE BANK FLEET DISTRIBUTOR-LIGHTS 475.20 JPMORGAN CHASE BANK LOWES-LIGHT BULBS ST #1 119.88 AT&T LONG DISTANCE LONG DISTANCE SERVICE 17.34 JPMORGAN CHASE BANK BAPTIST ATHLETIC-APPAREL 4,108.66 JPMORGAN CHASE BANK HOME DEPOT-LIGHTBULBS #2 13.97 JPMORGAN CHASE BANK LOWES-HAMMER E-1 19.97 JPMORGAN CHASE BANK LODGINGNVOODS 78.93 JPMORGAN CHASE BANK BUMPER TO BUMPER-PARTS 6.00 JPMORGAN CHASE BANK BUMPER TO BUMPER-TANKER 1 41.48 JPMORGAN CHASE BANK OFFICE DEPOT-SUPPLIE ST 1 18.99 JPMORGAN CHASE BANK VIDEO REVOLUTION-LOC FUND 480.00 JPMORGAN CHASE BANK LOWES-OIL 13.74 JPMORGAN CHASE BANK BENMEADOWS-TOOLS 271.45 JPMORGAN CHASE BANK TARGET-STORAGE CONTAINER 17.99 JPMORGAN CHASE BANK MEETING EXPENSE 22.55 SPRINT SPRINT CARDS 191.28 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 3,932.52 JPMORGAN CHASE BANK PATROL TECH-UNIFORM 209.25 LOCKE SUPPLY LIGHT FIXTURES REPAIR 323.86 NORTH AMERICA FIRE EQUIPMENT CO. PURCHASE OF UNIFORM PANTS 120.00 NORTH AMERICA FIRE EQUIPMENT CO. PURCHASE OF UNIFORM CLOTH 861.70 Page 4 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount FIRE SERVICES... WAYEST SAFETY INC SCBA COMPRESSOR MAINTENAN 560.00 OKLAHOMA STATE UNIVERSITY-BURSAR FSIO INSTRUCTOR MEMBERSHI 20.00 BMI SYSTEMS RENTAL OF COPIER 302.11 JPMORGAN CHASE BANK BUMPER TO BUMPER-E-3 8.34 JPMORGAN CHASE BANK BUMPER TO BUMPER-PRTS L-2 3.00 JPMORGAN CHASE BANK LOWES-SUPPLIES ST #1 25.96 JPMORGAN CHASE BANK AMSAN-CLEANING SUPPLIES 616.49 JPMORGAN CHASE BANK ADVANCED AUTO-BATTERY 1 14.48 OFFICE DEPOT INC OFFICE SUPPLIES 46.23 CITY GARAGE CITY GARAGE LABOR CHGS - 1,166.66 USA MOBILITY WIRELESS, INC PAGER USE 297.90 AEP/PSO ELECTRIC USE 2,114.89 AT&T MOBILITY WIRELESS SERVICE 21.60 CITY GARAGE CITY GARAGE PARTS -JAN 2 17.67 TOTAL FIRE SERVICES 16,560.09 ODHS -FIREFIGHT GRANT JPMORGAN CHASE BANK VIDEO REVOLUTION-FA GRANT 4,319.93 JPMORGAN CHASE BANK IGLOO-COOLERS 275.95 TOTAL ODHS -FIREFIGHT GRANT 4,595.88 EMERGENCY PREPAREDNES SPRINT SPRINT CARDS 47.82 JPMORGAN CHASE BANK WEC-ELECTRIC STORM SIREN 36.72 AEP/PSO ELECTRIC USE 91.80 TOTAL EMERGENCY PREPAREDNESS 176.34 STREETS AEP/PSO ELECTRIC USE 1,288.27 USA MOBILITY WIRELESS, INC PAGER USE 46.20 CITY GARAGE CITY GARAGE LABOR CHGS - 1,166.66 O'REILLY AUTOMOTIVE INC OIL 5.98 SHERWOOD CONSTRUCTION CO, INC FAIRWAYS SIDEWALK PROJECT 675.50 MILL CREEK LUMBER & SUPPLY SIDEWALK PROGRAM 105.28 ATWOODS DISTRIBUTING, LP ATTN: ACCT SUPPLIES 20.32 MILL CREEK LUMBER 8~ SUPPLY SIDEWALK PROGRAM 42.98 UNIFIRST HOLDINGS LP UNIFORM RENTAL 48.15 BINGHAM SAND & GRAVEL CO., INC SALT 3,484.08 SIGNALTEK INC JAN-MAINTIFE6-RETAINER 300.00 UNIFIRST HOLDINGS LP UNIFORM RENTAL 49.70 JPMORGAN CHASE BANK WHITE STAR-CONCRETE RAKES 41.46 APAC-OKLAHOMA, INC. POTHOLE PATCHING 142.85 JPMORGAN CHASE BANK STEVE'S-SLEDGE HAMMERS 27.18 JPMORGAN CHASE BANK LOWES-BUILDING SHELF 5.44 CITY GARAGE CITY GARAGE PARTS -JAN 2 526.78 JPMORGAN CHASE BANK LOWES-BRACKETS 17.46 Page 5 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount TOTAL STREETS 7,994.29 STORMWATER CITY GARAGE CITY GARAGE PARTS -JAN 2 184.49 UNIFIRST HOLDINGS LP UNIFORM RENTAL 52.42 ESTES, INCORPORATED STORMWATER/VEG. SUPPLIES 2,936.92 UNIFIRST HOLDINGS LP UNIFORM RENTAL 52.42 MAXWELL SUPPLY OF TULSA, INC FAIRWAYS DRAINAGE CHANNEL 166.56 ESTES, INCORPORATED CHEMICALS 401.28 STANDARD SUPPLY LAWN & GARDEN PLATE COMPACTER REPAIR 46.35 ANCHOR STONE COMPANY FAIRWAYS DRAINAGE CHANNEL 217.34 EQUIPMENT ONE RENTAL & SALES, INC. SOD CUTTER 95.00 BROWN FARMS LLC SOD 205.00 BROWN FARMS LLC SOD 240.00 LIBERTY PRECAST, LLC FAIRWAYS DRAINAGE PROJECT 903.23 LIBERTY PRECAST, LLC FAIRWAYS DRAINAGE PROJECT 850.19 LIBERTY PRECAST, LLC FAIRWAYS DRAINAGE PROJECT 1,052.28 LOT MAINTENANCE OF OKLAHOMA, INC. STREET SWEEPING 5,031.25 CITY GARAGE CITY GARAGE LABOR CHGS - 1,166.66 USA MOBILITY WIRELESS, INC PAGER USE 53.90 TOTAL STORMWATER 13,655.29 PARKS CITY GARAGE CITY GARAGE LABOR CHGS - 250.00 OFFICE DEPOT INC OFFICE SUPPLIES 8.49 AEP/PSO ELECTRIC USE 1,113.44 ROGERS COUNTY RURAL WATER DISTRICT WATER SERVICE 262.78 TERRA-PAD, INC PARK BENCHES-CENTENNIAL 1,090.00 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 182.50 JPMORGAN CHASE BANK LOWES-FOAM 3.48 AT&T LONG DISTANCE LONG DISTANCE SERVICE 1.72 CITY GARAGE CITY GARAGE PARTS -JAN 2 15.30 JPMORGAN CHASE BANK LOWES-LIGHT BULB 4.98 TOTAL PARKS 2,932.69 COMMUNITY CENTER AT&T LONG DISTANCE LONG DISTANCE SERVICE 1.44 JPMORGAN CHASE BANK LOWES-PAINT FOR COM CTR 164.16 JPMORGAN CHASE BANK HOBBY LOBBY-REMODEL DECOR 61.14 JPMORGAN CHASE BANK KOHLS-REMODEL DECOR 9.99 EQUIPMENT ONE RENTAL & SALES, INC. SCISSOR LIFT 129.00 JPMORGAN CHASE BANK KIRKLANDS-REMODEL DECOR 92.97 JPMORGAN CHASE BANK KOHLS-REMODEL DECOR 47.98 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 1,298.57 JPMORGAN CHASE BANK HOBBY LOBBY-REMODEL CC 29.97 AEP/PSO ELECTRIC USE 699.27 JPMORGAN CHASE BANK HOBBY LOBBY-DECOR 17.00 Page 6 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount COMMUNITY CENTER... JPMORGAN CHASE BANK WALMART-DECOR REMODEL 20.94 JPMORGAN CHASE BANK SUNSHINE FURN-FURNITURE 1,449.92 SAV-ON PRINTING & SIGNS LLC BUSINESS CARDS 30.00 CITY GARAGE CITY GARAGE LABOR CHGS - 33.33 CHARACTER TRAINING INSTITUTE CHARACTER INTIATIVE 35.00 JPMORGAN CHASE BANK PIER 1-DECOR COMMUN CTR 29.00 TOTAL COMMUNITY CENTER 4,149.68 HISTORICAL MUSEUM AEP/PSO ELECTRIC USE 88.75 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 354.08 AT&T LONG DISTANCE LONG DISTANCE SERVICE 1.35 TOTAL HISTORICAL MUSEUM 444.18 ECONOMIC DEV JPMORGAN CHASE BANK OFFICE DEPOT-BADGES 148.96 JPMORGAN CHASE BANK OFFICE DEPOT-SUPPLIES 23.94 CITY GARAGE CITY GARAGE PARTS -JAN 2 124.74 JPMORGAN CHASE BANK MEETING EXPENSE 21.87 SPRINT SPRINT CARDS 47.82 OFFICE DEPOT INC OFFICE SUPPLIES 131.99 CITY GARAGE CITY GARAGE LABOR CHGS - 83.33 TOTAL ECONOMIC DEV 582.65 FUND GRAND TOTAL 107,081.1 AMBULANCE CITY GARAGE CITY GARAGE LABOR CHGS - 1,250.00 MEDICLAIMS INC BILLING SERVICES 7,049.24 AT&T MOBILITY WIRELESS SERVICE 81.59 STATE OF OK-ROGERS STATE UNIVERSITY PARAMEDIC CLASSES 1,750.50 STATE OF OK-ROGERS STATE UNIVERSITY PARAMEDIC CLASSES 1,750.50 FULLERTON HYDRO-TEST INC. RENTAL OF OXYGEN CYLINDER 91.85 JPMORGAN CHASE BANK OREILLY-PARTS MEDIC 1 171.08 JPMORGAN CHASE BANK ALLMED-SUPPLIES 15.96 JPMORGAN CHASE BANK ALLMED-SUPPLIES 1,038.58 JPMORGAN CHASE BANK ALLMED-SUPPLIES 6.50 JPMORGAN CHASE BANK VITAL SIGNS-SUPPLIES 323.82 JPMORGAN CHASE BANK RADIOSHACK-USB ADAPTER 9.99 CITY GARAGE CITY GARAGE PARTS -JAN 2 4,452.10 JPMORGAN CHASE BANK VANNER-INVERTER REPAIR 428.35 JPMORGAN CHASE BANK ALLMED-SUPPLIES 12.41 JPMORGAN CHASE BANK ALLMED-SUPPLIES 151.02 JPMORGAN CHASE BANK ALLMED-SUPPLIES 1,438.04 JPMORGAN CHASE BANK STRYKER SALES-SUPPLIES 104.02 JPMORGAN CHASE BANK MAIL THIS-SHIPPING 12.78 JPMORGAN CHASE BANK BOUND TREE-SUPPLIES 213.40 Page 7 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amount TOTAL AMBULANCE 20,351.73 FUND GRAND TOTAL 20,351.7 E911 COMMUNICATIONS INCOG-E911 E911 SERVICE 2,026.28 TOTAL E911 COMMUNICATIONS 2,026.28 FUND GRAND TOTAL 2,026.2 JUVENILE COURT - JV COUR- YOUTH SERVICES OF TULSA YOUTH COURT CONTRACT 3,750.00 TOTAL JUVENILE COURT - JV COURT 3,750.00 FUND GRAND TOTAL 3,750.0 STORMWATER - STORMWATI THE BENHAM COMPANIES ENGINEERING SERVICES 3,682.56 TOTAL STORMWATER - STORMWATER 3,682.56 FUND GRAND TOTAL 3,682.5 CI -TRAFFIC SIGNAL ENHAN TRAFFIC ENGINEERING CONSULTANTS,INC ENGINEERING SERVICES 10,810.00 TOTAL CI -TRAFFIC SIGNAL ENHAN 10,810.00 FUND GRAND TOTAL 10,810.0 CITY GARAGE O'REILLY AUTOMOTIVE INC AT&T MOBILITY AEP/PSO USA MOBILITY WIRELESS, INC FLEETPRIDE, INC FLEETPRIDE, INC UNIFIRST HOLDINGS LP UNIFIRST HOLDINGS LP ONEOK, INC OKLAHOMA NATURAL GAS AT&T LONG DISTANCE AMERIFLEX HOSE & ACCESSORIES, LLC FULLERTON HYDRO-TEST INC. PARTS FOR RESALE WIRELESS SERVICE ELECTRIC USE PAGER USE VEHICLE PARTS & SUPPLIES VEHICLE PARTS & SUPPLIES UNIFORM RENTAL FEES UNIFORM RENTAL FEES NATURAL GAS USAGE LONG DISTANCE SERVICE PARTS FOR 97 BACKHOE GAS CYLINDER RENTAL - CIT 932.83 58.23 963.38 7.70 24.52 485.70 35.69 35.69 1,148.91 1.19 17.99 480.00 TOTAL CITY GARAGE 4,191.83 FUND GRAND TOTAL 4,191.8 WORKERS' COMP SELF-INS CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 293.00 Page 8 Claims List 03/03/09 Budget Unit Title Vendor Name Payable Description Payment Amounl WORKERS' COMP SELF-INS... CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 9,356.03 CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 885.41 CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 842.00 CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 17.60 CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 885.41 CITY OF OWASSO IMPREST ACCOUNT WORK COMP CLAIMS 842.00 TOTAL WORKERS' COMP SELF-INS 13,121.45 FUND GRAND TOTAL 13,121.4 GEN LIAB-PROP SELF INS ALCORN'S PLUMBING & HARDWARE TORT CLAIM-SEWER DAMAGE 65.00 WOOD, PUHL & WOOD, P.L.L.C ATTORNEY FEES - SEAMAN I 10,445.55 MAGALY ROBLES OR GUILLERMO TREJO TORT CLAIM-SEWER DAMAGE 6,076.08 WOOD, PURL & WOOD, P.L.L.C ATTORNEY FEES -SEAMAN II 860.95 TOTAL GEN LIAB-PROP SELF INS 17,447.58 FUND GRAND TOTAL 17,447.5 CITY GRAND TOTAL $182,462.60 Page 9 CITY OF OWASO HEALTHCARE SELF INSURANCE FUND CLAIMS PAID PER AUTHORIZATION OF ORDINANCE #789 AS OF 3!03/09 VENDOR DESCRIPTION AETNA HEALTHCARE MEDICAL SERVICE HEALTHCARE MEDICAL SERVICE ADMIN FEES STOP LOSS FEES HEALTHCARE DEPT TOTAL DELTA DENTAL DENTAL MEDICAL SERVICE DENTAL MEDICAL SERVICE DENTAL DEPT TOTAL VSP ADMIN FEES VISION DEPT TOTAL HEALTHCARE SELF INSURANCE FUND TOTAL AMOUNT 33,258.92 33,304.70 15,980.80 16,489.00 99,033.42 2,477.00 1,802.97 4,279.97 1,150.77 1,150.77 104,464.16 CITY OF OWASSO GENERAL FUND PAYROLL PAYMENT REPORT PAY PERIOD ENDING 02/14/09 Department Payroll Expenses Total Expenses Municipal Court 4,965.33 6,422.77 Managerial 21,672.85 28,784.68 Finance 13,607.91 18,893.45 Human Resources 6,063.05 8,748.14 Community Development 13,162.39 17,630.39 Engineering 12,988.95 18,481.98 Information Systems 8,733.41 12,981.52 Support Services 7,709.82 10,907.02 Police 88,528.64 129,447.87 Central Dispatch 9,061.37 13,600.96 Animal Control 2,203.20 3,238.49 Fire 90,132.01 127,198.51 Emergency Preparedness 2,752.83 3,901.85 Streets 7,668.34 11,936.52 Stormwater/ROW Maint. 6,821.54 9,500.59 Park Maintenance 8,033.43 11,797.90 Community-Senior Center 3,327.96 4,824.23 Historical Museum 2,054.82 2,717.85 Economic Development 3,639.32 4,857.26 General Fund Total 313,127.17 445,871.98 Garage Fund Total 4,025.59 5,777.66 Ambulance Fund Total 17,273.82 24,286.16 Emergency 911 Fund Total 2,962.92 4,465.89 Worker's Compensation Total 3,127.61 3,799.06 MEMORANDUM TO: THE HONORABLE MAYOR & CITY COUNCIL CITY OF OWASSO FROM: MICHELE DEMPSTER HUMAN RESOURCE DIRECTOR SUBJECT: IRS CHANGES TO OMRF RETIREMENT PLANS DATE: February 23, 2009 BACKGROUND: Two OMRF plans are offered to city employees. Both plans are IRS qualified retirement plans. The first plan is a Defined Benefit plan which is the mandatory retirement plan for all full-time employees who do not participate in the Police and Fire Retirement system. The City and participating employees contribute to the plan based on an annual actuarial study and upon retirement an employee's benefits calculation is based on a calculation which includes the average of their last 60 months salary and years of service. The second OMRF plan is a Defined Contribution plan which is an optional supplemental retirement plan available to all full-time employees. The City matches the employee's contribution $0.50 on the dollar up to 1% of the employee's base wages. Employees have the option to elect additional contributions, investment options are selected by the employee. Periodically the Internal Revenue Service (IRS) modifies rules and regulations regarding Qualified Retirement plans. In order to maintain our "Qualified Retirement" plan status with the IRS the City is required to incorporate revised regulations to the Internal Revenue Codes into our plan. The method of incorporating the required modification is through Council approved ordinances. Recently the IRS has modified "limits" established by the Internal Revenue Code (IRC Section 415) and the definition of compensation. A summary of plan changes which will result from the amendment to IRC 415 is attached. These changes will not result in an increase in cost to the City. In addition, due to the income level affected by the establishment of a new definition for annual compensation and new "annual additions" and "annual benefit" limits our employees will not be affected. Also included in the proposed ordinance is an IRS requirement to formally authorize the "government pickup" option relating to employee tax deferred contributions. This provision has been previously approved in our official plan document, but under new requirements must be authorized by ordinance. RECOMMENDATION: Staff recommends approval of Ordinance #937 amending the OMRF Defined Benefit plan and OMRF Defined Contribution Plan. ATTACHMENT: t. Summary of Plan Changes 2. Ordinance No. 937 Amendment for Code Section 415 Regulations Summary of Sienit;cant Changes The benefits and contributions provided under retirement plans are subject to limits under Section 415 of the Internal Revenue Code. Under these Section 415 limits, the "annual additions" credited to a participant's account in a defined contribution plan for any limitation year must not exceed the lesser of: 1. $40,000 (as adjusted for cost-of-living increases--$49,000 in 2009); or 2. 100% of the participant's compensation for the limitation year. Under the Section 415 limits for a defined benefit plan, a participant's "annual benefit" may not exceed $160,000 (as adjusted for cost-of-living increases--$195,000 in 2009). For both the defined contribution plan and the defined benefit plan, the Amendment for the Code Section 415 Regulations* incorporates changes to the Section 415 limits, which are required by recent regulations. The Amendment provides in part that Actual Compensation will be adjusted to include regular pay after severance from employment if: 1. The pay is regular compensation, overtime, commissions, bonuses or other similar payments; 2. The payment would have been paid to the participant prior to severance from employment if they had continued in employment; and 3. The payment is made by the later of 2'/z months after severance from employment or by the end of the limitation year that includes the severance from employment. The Amendment also provides that leave cashouts, deferred compensation, salary continuation payments for military service participants, and salary continuation payments for disabled participants are not included in the definition of compensation for purposes of Section 415. The mandatory employee contributions in the defined benefit plan which are tax-deferred under an IRS provision is known as "government pickup" contributions. The IRS requires that if a plan includes pickup contributions, then the employer must formally authorize this provision. Although the appropriate language is already in the plan document, having it additionally stated in Section 2 of the proposed ordinance will specifically accomplish the IRS requirements. *For the defined contribution plan, the Amendment is formally called the "Amendment for the Final Code Section 415 Regulations." For the defined benefit plan, the Amendment is formally called the "Amendment for Final 415 Regulations and Pension Funding Equity Act. AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 937 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED BENEFIT PLAN OF THE CITY OF OWASSO, OKLAHOMA, TO INCORPORATE THE FINAL IRC SECTION 415 REGULATIONS AND PROVISIONS OF THE PENSION FUNDING EQUITY ACT; AND AMENDING THE DEFINED CONTRIBUTION PLAN OF THE CITY OF OWASSO, OKLAHOMA, TO INCORPORATE THE FINAL IRC SECTION 415 REGULATIONS; PROVIDING FOR EMPLOYER PICKUP OF MANDATORY CONTRIBUTIONS FOR THE DEFINED BENEFIT PLAN; PROVIDING FOR EFFECTIVE DATE, PROVIDING FOR REPEALER AND SEVERABILITY. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT TO-WIT: Section 1. The Employee Retirement System, Defined Benefit Plan and Defined Contribution Plan of the City of Owasso, Oklahoma, is hereby amended as shown on the attached Exhibit "A" and "B", which is incorporated herein by reference. Section 2. Whereas, the Defined Benefit Plan contains provisions which are intended to constitute apick-up program by the Employer which satisfies the requirements of section 414(h)(2) of the Internal Revenue Code of 1986 (the "Code"); and in accordance with the provisions of the plan, Mandatory Contributions (as defined in the Plan) are designated "picked- up" by the employer so as to not be included in Plan Participants' gross income for Federal income tax purposes as provided in Section 414(h)(2) of the Code. All Mandatory Contributions are to be paid by the employer in lieu of contributions by the Plan Participant. No Participant in the Plan shall have the option of choosing to receive the amounts of Mandatory Contributions directly in lieu of having such amounts paid by the employer to the Trustees of the Plan. Section 3. All ordinances in conflict herewith are hereby repealed. Section 4. If any part, article, section, or subsection of this ordinance shall be held invalid or unconstitutional for any reason, such holding shall not be construed to impair or invalidate the remainder of this ordinance, notwithstanding such holding. PASSED by the City Council of the City of Owasso, Oklahoma on the 3'~d day of March, 2009. Stephen Cataudella, Mayor ATTEST: Sherry Bishop, City Clerk (SEAL) APPROVED as to form and legality this day of , 2009. Julie Lombardi, City Attorney Exhibit A AMENDMENT TO CITY OF OWASSO PLAN AMENDMENT FOR FINAL 415 REGULATIONS AND PENSION FUNDING EQUITY ACT ARTICLE I. PREAMBLE 1.1 Effective date of Amendment. This Amendment is effective as indicated herein for the respective provisions. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. 1.3 Construction. Except as otherwise provided in this Amendment, any reference to "Section" in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.4 Effect of restatement of Plan. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates the final Code Section 415 Regulations provisions). ARTICLE II. ACTUAL COMPENSATION 2.1 Effective date. The provisions of this Article II shall apply to "Limitation Years" that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on and after July 1, 2007. 2.2 Actual Compensation paid after "Severance from Employment." Actual Compensation shall be adjusted, as set forth herein, for the following types of compensation paid after a Participant's "Severance from Employment" with the Employer maintaining the Plan (or any other entity that is treated as the Employer pursuant to Code Section 414(b), (c), (m) or (o)). However, amounts described in subsections (a), (b) and (c) below may only be included in Actual Compensation to the extent such amounts are paid by the later of 2'/: months after "severance from Employment" or by the end of the "Limitation Year" that includes the date of such "Severance from Employment." Any other payment of compensation paid after "Severance from Employment" that is not described in the following types of compensation is not considered Actual Compensation within the meaning of Code Section 415(c)(3), even if payment is made within the time period specified above. 2.3 (a) Regular pay. Actual Compensation shall include regular pay after "Severance from Employment" if: (1) The payment is regular compensation for services during the Participant's regular working hours, or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (2) The payment would have been paid to the Participant prior to a "Severance from Employment" if the Participant had continued in employment with the Employer. (b) Leave cashouts. Leave cashouts shall not be included in Actual Compensation. (c) Deferred Compensation. Actual Compensation will not include deferred compensation. (d) Salary continuation payments for military service Participants. Actual Compensation does not include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code Section 414(u)(1)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service. (e) Salary continuation payments for disabled Participants. Actual Compensation does not include compensation paid to a Participant who is permanently and totally disabled (as defined in Code Section 22(e)(3 )) 2.4 Administrative delay ("the first few weeks") rule. Actual Compensation fora "Limitation Year" shall not include amounts earned but not paid during the "Limitation Year" solely because of the timing of pay periods and pay dates. 2.5 Inclusion of certain nonqualified deferred compensation amounts. If the Plan's definition of Compensation for purposes of Code Section 415 is the definition in Regulations Section 1.415(c)-2(b) (Regulations Section 1.415-2(d)(2) under the Regulations in effect for "Limitation Years" beginning prior to July 1, 2007) and the simplified compensation definition of Regulations Section 1.415(c)-2(d)(2) (Regulations Section 1.415-2(d)(10) under the Regulations in effect for "Limitation Years" prior to July 1, 2007) is not used, then Actual Compensation shall include amounts that are includible in the gross income of a Participant under the rules of Code Section 409A or Code Section 457(f)(1)(A) or because the amounts are constructively received by the Participant. 2.6 Back Pay. Payments awarded by an administrative agency or court or pursuant to a bona fide agreement by an Employer to compensate an Employee for lost wages are Actual Compensation for the "Limitation Year" to which the back pay relates, but only to the extent such payments represent wages and compensation that would otherwise be included in Actual Compensation under this Article. 2.7 Change of "Limitation Year." The "Limitation Year" may only be changed by a Plan amendment. Furthermore, if the Plan is terminated effective as of a date other than the last day of the Plan's "Limitation Year," then the Plan is treated as if the Plan had been amended to change its "Limitation Year." ARTICLE III. PLAN COMPENSATION 3.1 Compensation paid after "Severance from Employment." Compensation for purposes of benefits (hereinafter referred to as Plan Compensation) shall be adjusted in the same manner as Actual Compensation pursuant to Article II of this Amendment if those amounts would have been included in Compensation if they were paid prior to the Participant's "Severance from Employment," except in applying Article II, the term "Limitation Year" shall be replaced with the term "Plan Year" and the term "Actual Compensation" shall be replaced with the term "Plan Compensation." 3.2 Effective date of Plan Compensation provisions. The provisions of this Article shall apply for Plan Years beginning on and after July 1, 2007. ARTICLE IV. CODE SECTION 415 LIMITATIONS 4.1 Annual Benefit. (a) Effective date. The limitations of this Article apply in "Limitation Years" that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on or after July 1, 2007, except as otherwise provided herein. (b) "Annual Benefit." The "Annual Benefit" otherwise payable to a Participant under the Plan at any time shall not exceed the "Maximum Permissible Benefit." If the benefit the Participant would otherwise accrue in a "Limitation Year" would produce an "Annual Benefit" in excess of the "Maximum Permissible Benefit," then the benefit shall be limited (or the rate of accrual reduced) to a benefit that does not exceed the "Maximum Permissible Benefit." (c) Adjustment if in two defined benefit plans. If the Participant is, or has ever been, a Participant in another qualified defined benefit plan (without regard to whether the plan has been terminated) maintained by the Employer or a "Predecessor Employer," the sum of the Participant's "Annual Benefits" from all such plans may not exceed the "Maximum Permissible Benefit." Where the Participant's employer-provided benefits under all such defined benefit plans (determined as of the same age) would exceed the "Maximum Permissible Benefit" applicable at that age, the Employer shall limit a Participant's benefit in accordance with the terms of the Plans. (d) Grandfather of limits prior to July 1, 2007. The application of the provisions of this Article shall not cause the "Maximum Permissible Benefit" for any Participant to be less than the Participant's Accrued Benefit under all the defined benefit plans of the Employer or a "Predecessor Employer" as of the end of the last "Limitation Year" beginning before July 1, 2007 under provisions of the plans that were both adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied the applicable requirements of statutory provisions, Regulations, and other published guidance relating to Code Section 415 in effect as of the end of the last "Limitation Year" beginning before July 1, 2007, as described in Regulations Section 1.415(a)-1(g)(4). (e) Other rules applicable. The limitations of this Article shall be determined and applied taking into account the rules in Amendment Section 4.3. 4.2 Definitions. For purposes of this Amendment, the following definitions apply. (a) Annual Benefit. "Annual Benefit" means a benefit that is payable annually in the form of a "Straight Life Annuity." Except as provided below, where a benefit is payable in a form other than a "Straight Life Annuity," the benefit shall be adjusted to an actuarially equivalent "Straight Life Annuity" that begins at the same time as such other form of benefit and is payable on the first day of each month, before applying the limitations of this Article. For a Participant who has or will have distributions commencing at more than one Annuity Starting Date, the "Annual Benefit" shall be determined as of each such Annuity Starting Date (and shall satisfy the limitations of this Article as of each such date), actuarially adjusting for past and future distributions of benefits commencing at the other Annuity Starting Dates. For this purpose, the determination of whether a new Annuity Starting Date has occurred shall be made without regard to Regulations Section 1.401(a)-20, Q&A 10(d), and with regard to Regulations Section 1.415(b)1(b)(1)(iii)(B) and (C). No actuarial adjustment to the benefit shall be made for (a) survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not be payable if the Participant's benefit were paid in another form; (b) benefits that are not directly related to retirement benefits (such as a qualified disability benefit, preretirement incidental death benefits, and postretirement medical benefits); or (c) the inclusion in the form of benefit of an automatic benefit increase feature, provided the form of benefit is not subject to Code Section 417(e)(3) and would otherwise satisfy the limitations of this Article, and the Plan provides that the amount payable under the form of benefit in any "Limitation Year" shall not exceed the limits of this Article applicable at the Annuity Starting Date, as increased in subsequent years pursuant to Code Section 415(d). For this purpose, an automatic benefit increase feature is included in a form of benefit if the form of benefit provides for automatic, periodic increases to the benefits paid in that form. The determination of the "Annual Benefit" shall take into account Social Security supplements described in Code Section 411(a)(9) and benefits transferred from another defined benefit plan, other than transfers of distributable benefits pursuant Regulations Section 1.411(d)-4, Q&A-3(c), but shall disregard benefits attributable to Employee contributions or rollover contributions. Effective for distributions in Plan Years beginning after December 31, 2003, the determination of actuarial equivalence of forms of benefit other than a "Straight Life Annuity" shall be made in accordance with (1) or (2) below. (1) Benefit forms not subject to Code Section 417(e)(3). The "Straight Life Annuity" that is actuarially equivalent to the Participant's form of benefit shall be determined under this subsection (1) if the form of the Participant's benefit is either (a) a nondecreasing annuity (other than a "Straight Life Annuity") payable for a period of not less than the life of the Participant (or, in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or (b) an annuity that decreases during the life of the Participant merely because of (1) the death of the survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the death of the survivor annuitant), or (2) the cessation or reduction of Social Security supplements or qualified disability payments (as defined in Code Section 401(a)(11)). (i) "Limitation Years" beginning before July 1, 2007. For "Limitation Years" beginning before July 1, 2007, the actuarially equivalent "Straight Life Annuity" is equal to the annual amount of the "Straight Life Annuity" commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant's form of benefit computed using whichever of the following produces the greater annual amount: (I) the interest rate and mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; and (II) 5% interest rate assumption and the applicable mortality table defined in the Plan for that Annuity Starting Date. (ii) "Limitation Years" beginning on or after July 1, 2007. For "Limitation Years" beginning on or after July 1, 2007, the actuarially equivalent "Straight Life Annuity" is equal to the greater of (I) the annual amount of the "Straight Life Annuity" (if any) payable to the Participant under the Plan commencing at the same Annuity Starting Date as the Participant's form of benefit; and (II) the annual amount of the "Straight Life Annuity" commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant's form of benefit, computed using a 5% interest rate assumption and the applicable mortality table defined in the Plan for that Annuity Starting Date. (2) Benefit Forms Subject to Code Section 417(e)(3). The "Straight Life Annuity" that is actuarially equivalent to the Participant's form of benefit shall be determined under this paragraph if the form of the Participant's benefit is other than a benefit form described in Amendment Section 4.2(a)(1) above. In this case, the actuarially equivalent "Straight Life Annuity" shall be determined as follows: (i) Annuity Starting Date in Plan Years Beginning After 2005. If the Annuity Starting Date of the Participant's form of benefit is in a Plan Year beginning after 2005, the actuarially equivalent "Straight Life Annuity" is equal to the greatest of (I) the annual amount of the "Straight Life Annuity" commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant's form of benefit, computed using the interest rate and mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; (II) the annual amount of the "Straight Life Annuity" commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant's form of benefit, computed using a 5.5 percent interest rate assumption and the applicable mortality table defined in the Plan; and (III) the annual amount of the "Straight Life Annuity" commencing at the same Annuity Starting Date that has the same actuarial present value as the Participant's form of benefit, computed using the applicable interest rate and applicable mortality table defined in the Plan, divided by 1.05. (ii) Annuity Starting Date in Plan Years Beginning in 2004 or 2005. If the Annuity Starting Date of the Participant's form of benefit is in a Plan Year beginning in 2004 or 2005, the actuarially equivalent "Straight Life Annuity" is equal to the annual amount of the "Straight Life Annuity" commencing at the same annuity starting date that has the same actuarial present value as the Participant's form of benefit, computed using whichever of the following produces the greater annual amount: (I) the interest rate and mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; and (II) a 5.5% interest rate assumption and the applicable mortality table defined in the Plan. (b) Defined Benefit Dollar Limitation. "Defined Benefit Dollar Limitation" means, effective for "Limitation Years" ending after December 31, 2001, $160,000, automatically adjusted under Code Section 415(d), effective January 1 of each year, as published in the Internal Revenue Bulletin, and payable in the form of a "Straight Life Annuity." The new limitation shall apply to "Limitation Years" ending with or within the calendar year of the date of the adjustment, but a Participant's benefits shall not reflect the adjusted limit prior to January 1 of that calendar year. If elected by the Employer in Amendment Section 2.4, the automatic annual adjustment of the "Defined Benefit Dollar Limitation" under Code 415(d) shall apply to Participants who have had a separation from employment. (c) Employer. "Employer" means, for purposes of this Article, the Employer that has adopted the Plan, and all members of a controlled group of corporations, as defined in Code Section 414(b), as modified by Code Section 415(h)), all commonly controlled trades or businesses (as defined in Code Section 414(c), as modified, except in the case of abrother-sister group of trades or businesses under common control, by Code Section 415(h)), or affiliated service groups (as defined in Code Section 414(m)) of which the adopting Employer is a part, and any other entity required to be aggregated with the employer pursuant to Code Section 414(0). (d) Formerly Affiliated Plan of the Employer. "Formerly Affiliated Plan of the Employer" means a plan that, immediately prior to the cessation of affiliation, was actually maintained by the Employer and, immediately after the cessation of affiliation, is not actually maintained by the Employer. For this purpose, "cessation of affiliation" means the event that (i) causes an entity to no longer be considered the Employer, such as the sale of a member of a controlled group of corporations, as defined in Code Section 414(b), as modified by Code Section 415(h), to an unrelated corporation, or (ii) causes a plan to not actually be maintained by the Employer, such as transfer of plan sponsorship outside a controlled group. (e) Limitation Year. "Limitation Year" means the period specified in the Plan that is used to apply the Code Section 415 limitations. (f) Maximum Permissible Benefit. "Maximum Permissible Benefit" means the "Defined Benefit Dollar Limitation" (adjusted where required, as provided below). (1) Adjustment for Less Than 10 Years of Participation or Service: If the Participant has less than 10 years of participation in the Plan, the "Defined Benefit Dollar Limitation" shall be multiplied by a fraction -- (i) the numerator of which is the number of "Years of Participation" in the Plan (or part thereof, but not less than one year), and (ii) the denominator of which is ten (10). (2) Adjustment of "Defined Benefit Dollar Limitation" for Benefit Commencement Before Age 62 or after Age 65: Effective for benefits commencing in "Limitation Years" ending after December 31, 2001, the "Defined Benefit Dollar Limitation" shall be adjusted if the Annuity Starting Date of the Participant's benefit is before age 62 or after age 65. If the Annuity Starting Date is before age 62, the "Defined Benefit Dollar Limitation" shall be adjusted under Section 4.2(f)(2)(i), as modified by Amendment Section 4.2(f)(2)(iii). If the Annuity Starting Date is after age 65, the "Defined Benefit Dollar Limitation" shall be adjusted under Amendment Section 4.2(f)(2)(ii), as modified by Amendment Section 4.2(f)(2)(iii). (i) Adjustment of "Defined Benefit Dollar Limitation" for Benefit Commencement Before Age 62: (I) "Limitation Years" Beginning Before July I, 2007. If the Annuity Starting Date for the Participant's benefit is prior to age 62 and occurs in a "Limitation Year" beginning before July 1, 2007, the "Defined Benefit Dollar Limitation" for the Participant's Annuity Starting Date is the annual amount of a benefit payable in the form of a "Straight Life Annuity" commencing at the Participant's Annuity Starting Date that is the actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1) for years of participation less than ten (10), if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (1) the interest rate and mortality table (or other tabular factor) specified in the Plan; or (2) afive-percent (5%) interest rate assumption and the applicable mortality table as defined in the Plan. (II) "Limitation Years" Beginning on or After July 1, 2007. (A) Plan Does Not Have Immediately Commencing "Straight Life Annuity" Payable at both Age 62 and the Age of Benefit Commencement. If the Annuity Starting Date for the Participant's benefit is prior to age 62 and occurs in a "Limitation Year" beginning on or after July 1, 2007, and the Plan does not have an immediately commencing "Straight Life Annuity" payable at both age 62 and the age of benefit commencement, the "Defined Benefit Dollar Limitation" for the Participant's Annuity Starting Date is the annual amount of a benefit payable in the form of a "Straight Life Annuity" commencing at the Participant's Annuity Starting Date that is the actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1) for years of participation less than ten (10), if required) with actuarial equivalence computed using afive-percent (5%) interest rate assumption and the applicable mortality table for the Annuity Starting Date as defined in the Plan(and expressing the Participant's age based on completed calendar months as of the Annuity Starting Date). (B) Plan Has Immediately Commencing "Straight Life Annuity" Payable at both Age 62 and the Age of Benefit Commencement. If the Annuity Starting Date for the Participant's benefit is prior to age 62 and occurs in a "Limitation Year" beginning on or after July 1, 2007, and the Plan has an immediately commencing "Straight Life Annuity" payable at both age 62 and the age of benefit commencement, the "Defined Benefit Dollar Limitation" for the Participant's Annuity Starting Date is the lesser of the limitation determined under Amendment Section 4.2(f)(2)(i)(II)(A) and the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1) for years of participation less than ten (10), if required) multiplied by the ratio of the annual amount of the immediately commencing "Straight Life Annuity" under the Plan at the Participant's Annuity Starting Date to the annual amount of the immediately commencing "Straight Life Annuity" under the Plan at age 62, both determined without applying the limitations of this Article. (ii) Adjustment of "Defined Benefit Dollar Limitation" for Benefit Commencement After Age 65: (I) "Limitation Years" Beginning Before July 1, 2007. If the Annuity Starting Date for the Participant's benefit is after age 65 and occurs in a Limitation Year beginning before July I, 2007, the "Defined Benefit Dollar Limitation" for the Participant's Annuity Starting Date is the annual amount of a benefit payable in the form of a "Straight Life Annuity" commencing at the Participant's Annuity Starting Date that is the actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1) for years of participation less than ten (10), if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (1) the interest rate and mortality table (or other tabular factor) specified in the Plan; or (2) afive-percent (5%) interest rate assumption and the applicable mortality table as defined in the Plan. (II) "Limitation Years" Beginning Before July 1, 2007. (A) Plan Does Not Have Immediately Commencing "Straight Life Annuity" Payable at both Age 65 and the Age of Benefit Commencement. If the annuity starting date for the Participant's benefit is after age 65 and occurs in a "Limitation Year" beginning on or after July 1, 2007, and the Plan does not have an immediately commencing "Straight Life Annuity" payable at both age 65 and the age of benefit commencement, the "Defined Benefit Dollar Limitation" at the Participant's Annuity Starting Date is the annual amount of a benefit payable in the form of a "Straight Life Annuity" commencing at the Participant's Annuity Starting Date that is the actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1)for years of participation less than 10, if required), with actuarial equivalence computed using a 5% interest rate assumption and the applicable mortality table for that Annuity Starting Date as defined in the Plan (and expressing the Participant's age based on completed calendar months as of the Annuity Starting Date). (B) Plan Has Immediately Commencing "Straight Life Annuity" Payable at both Age 65 and the Age of Benefit Commencement. If the Annuity Starting Date for the Participant's benefit is after age 65 and occurs in a "Limitation Year" beginning on or after July 1, 2007, and the plan has an immediately commencing "Straight Life Annuity" payable at both age 65 and the age of benefit commencement, the "Defined Benefit Dollar Limitation" at the Participant's Annuity Starting Date is the lesser of the limitation determined under Amendment Section 4.2(f)(2)(ii)(II)(A) and the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section 4.2(f)(1) for years of participation less than ten (10), if required) multiplied by the ratio of the annual amount of the adjusted immediately commencing "Straight Life Annuity" under the Plan at the Participant's Annuity Starting Date to the annual amount of the adjusted immediately commencing "Straight Life Annuity" under the Plan at age 65, both determined without applying the limitations of this Article. For this purpose, the adjusted immediately commencing "Straight Life Annuity" under the Plan at the Participant's Annuity Starting Date is the annual amount of such annuity payable to the Participant, computed disregarding the Participant's accruals after age 65 but including actuarial adjustments even if those actuarial adjustments are used to offset accruals; and the adjusted immediately commencing "Straight Life Annuity" under the Plan at age 65 is the annual amount of such annuity that would be payable under the Plan to a hypothetical Participant who is age 65 and has the same accrued benefit as the Participant. (iii) Notwithstanding the other requirements of this Amendment Section 4.2(f)(2), no adjustment shall be made to the "Defined Benefit Dollar Limitation" to reflect the probability of a Participant's death between the Annuity Starting Date and age 62, or between age 65 and the Annuity Starting Date, as applicable, if benefits are not forfeited upon the death of the Participant prior to the Annuity Starting Date. To the extent benefits are forfeited upon death before the Annuity Starting Date, such an adjustment shall be made. For this purpose, no forfeiture shall be treated as occurring upon the Participant's death if the Plan does not charge Participants for providing a qualified preretirement survivor annuity, as defined in Code Section 417(c), upon the Participant's death. (3) Minimum benefit permitted: Notwithstanding anything else in this Section to the contrary, the benefit otherwise accrued or payable to a Participant under this Plan shall be deemed not to exceed the "Maximum Permissible Benefit" if: (i) the retirement benefits payable fora "Limitation Year" under any form of benefit with respect to such Participant under this Plan and under all other defined benefit plans (without regard to whether a plan has been terminated) ever maintained by the Employer do not exceed $10,000 multiplied by a fraction - (I) the numerator of which is the Participant's number of Years (or part thereof, but not less than one year) of Service (not to exceed ten (10)) with the Employer, and (II) the denominator of which is ten (10); and (ii) the Employer (or a "Predecessor Employer") has not at any time maintained a defined contribution plan in which the Participant participated (for this purpose, mandatory Employee contributions under a defined benefit plan, individual medical accounts under Code Section 401(h), and accounts for post-retirement medical benefits established under Code Section 419A(d)(1) are not considered a separate defined contribution plan). (g) Predecessor Employer. "Predecessor Employer" means, with respect to a Participant, a former employer of such Participant if the Employer maintains a Plan that provides a benefit which the Participant accrued while performing services for the former employer. A former entity that antedates the Employer is also a "Predecessor Employer" with respect to a Participant if, under the facts and circumstances, the Employer constitutes a continuation of all or a portion of the trade or business of the former entity. For this purpose, the formerly affiliated plan rules in Regulations Section 1.415(f)-1(b)(2) apply as if the Employer and "Predecessor Employer" constituted a single employer under the rules described in Regulations Section 1.415(a)-1(f)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted two, unrelated employers under the rules described in Regulations Section 1.415(a)-1(f)(1) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the event that gives rise to the "Predecessor Employer" relationship, such as a transfer of benefits or plan sponsorship. (h) Severance from Employment. "Severance from Employment" means, with respect to any individual, cessation from being an Employee of the Employer maintaining the Plan. An Employee does not have a "Severance from Employment" if, in connection with a change of employment, the Employee's new employer maintains the Plan with respect to the Employee. (i) Straight Life Annuity. "Straight Life Annuity" means an annuity payable in equal installments for the life of a Participant that terminates upon the Participant's death. (j) Year of Participation. "Year of Participation" means, with respect to a Participant, each accrual computation period (computed to fractional parts of a year) for which the following conditions are met: (1) the Participant is credited with at least the number of Hours of Service (or Period of Service if the Elapsed Time Method is used) for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, and (2) the Participant is included as a Participant under the eligibility provisions of the Plan for at least one day of the accrual computation period. If these two conditions are met, the portion of a "Year of Participation" credited to the Participant shall equal the amount of benefit accrual service credited to the Participant for such accrual computation period. A Participant who is permanently and totally disabled within the meaning of Code Section 415(c)(3)(C)(i) for an accrual computation period shall receive a "Year of Participation" with respect to that period. In addition, for a Participant to receive a "Year of Participation" (or part thereof) for an accrual computation period, the Plan must be established no later that the last day of such accrual computation period. In no event shall more than one "Year of Participation" be credited for any 12-month period. (k) Year of Service. "Year of Service" means, for purposes of Amendment Section 42(d), each accrual computation period (computed to fractional parts of a year) for which a Participant is credited with at least the number of Hours of Service (or Period of Service if the Elapsed Time Method is used) for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, taking into account only service with the Employer or a "Predecessor Employer." 4.3 Other rules. (a) Benefits under terminated plans. If a defined benefit plan maintained by the Employer has terminated with sufficient assets for the payment of benefit liabilities of all plan participants and a Participant in the plan has not yet commenced benefits under the plan, the benefits provided pursuant to the annuities purchased to provide the Participant's benefits under the terminated plan at each possible Annuity Starting Date shall be taken into account in applying the limitations of this Article. If there are not sufficient assets for the payment of all Participants' benefit liabilities, the benefits taken into account shall be the benefits that are actually provided to the Participant under the terminated plan. (b) Benefits transferred from the Plan. If a Participant's benefits under a defined benefit plan maintained by the employer are transferred to another defined benefit plan maintained by the Employer and the transfer is not a transfer of distributable benefits pursuant Regulations Section 1.411(d)-4, Q&A-3(c), then the transferred benefits are not treated as being provided under the transferor plan (but are taken into account as benefits provided under the transferee plan). If a Participant's benefits under a defined benefit plan maintained by the Employer are transferred to another defined benefit plan that is not maintained by the Employer and the transfer is not a transfer of distributable benefits pursuant to Regulations Section 1.411(d)-4, Q&A-3(c), then the transferred benefits are treated by the Employer's Plan as if such benefits were provided under annuities purchased to provide benefits under a plan maintained by the Employer that terminated immediately prior to the transfer with sufficient assets to pay all Participants' benefit liabilities under the plan. If a Participant's benefits under a defined benefit plan maintained by the Employer are transferred to another defined benefit plan in a transfer of distributable benefits pursuant to Regulations Section 1.411(d)-4, Q&A-3(c), the amount transferred is treated as a benefit paid from the transferor plan. (c) Formerly affiliated plans of the Employer. A "Formerly Affiliated Plan of an Employer" shall be treated as a plan maintained by the Employer, but the formerly affiliated plan shall be treated as if it had terminated immediately prior to the cessation of affiliation with sufficient assets to pay Participants' benefit liabilities under the Plan and had purchased annuities to provide benefits. (d) Plans of a "Predecessor Employer." If the Employer maintains a defined benefit plan that provides benefits accrued by a Participant while performing services fora "Predecessor Employer," then the Participant's benefits under a plan maintained by the "Predecessor Employer" shall be treated as provided under a plan maintained by the Employer. However, for this purpose, the plan of the "Predecessor Employer" shall be treated as if it had terminated immediately prior to the event giving rise to the "Predecessor Employer" relationship with sufficient assets to pay Participants' benefit liabilities under the plan, and had purchased annuities to provide benefits; the Employer and the "Predecessor Employer" shall be treated as if they were a single employer immediately prior to such event and as unrelated employers immediately after the event; and if the event giving rise to the predecessor relationship is a benefit transfer, the transferred benefits shall be excluded in determining the benefits provide under the plan of the "Predecessor Employer." (e) Special rules. The limitations of this Article shall be determined and applied taking into account the rules in Regulations Section 1.415(f)-1(d), (e) and (h). (f) Aggregation with Multiemployer Plans. (1) If the Employer maintains a multiemployer plan, as defined in Code Section 414(f), and the multiemployer plan so provides, only the benefits under the multiemployer plan that are provided by the Employer shall be treated as benefits provided under a plan maintained by the Employer for purposes of this Article. (2) Effective for "Limitation Years" ending after December 31, 2001, a multiemployer plan shall be disregarded for purposes of applying the compensation limitation of Section 4.2(f)(1) to a plan which is not a multiemployer plan. Exhibit B AMENDMENT TO CITY OF OWASSO PLAN AMENDMENT FOR THE FINAL CODE SECTION 415 REGULATIONS ARTICLE I. PREAMBLE 1.1 Effective date of Amendment. This Amendment is adopted to reflect certain provisions of the final Code Section Regulations. This Amendment is effective for limitation years and plan years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on or after July 1, 2007, except as otherwise provided herein. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. 13 Construction. Except as otherwise provided in this Amendment, any reference to "Section" in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.4 Effect of restatement of Plan. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates the final Code §415 Regulation provisions). ARTICLE II. FINAL SECTION 415 REGULATIONS 2.1 Effective date. The provisions of this Article II shall apply to limitation years that begin more than 90 days after the close of the first regular legislative session of the legislative body with authority to amend the Plan that begins on and after July 1, 2007. 2.2 Actual Compensation paid after severance from employment. Actual Compensation shall be adjusted, as set forth herein, for the following types of compensation paid after a Participant's severance from employment with the Employer maintaining the Plan (or any other entity that is treated as the Employer pursuant to Code § 414(b), (c), (m) or (o)). However, amounts described in subsections (a) and (b) below may only be included in Actual Compensation to the extent such amounts are paid by the later of 2'/~ months after severance from employment or by the end of the limitation year that includes the date of such severance from employment. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation is not considered Actual Compensation within the meaning of Code § 415(c)(3), even if payment is made within the time period specified above. (a) Regular pay. Actual Compensation shall include regular pay after severance of employment if: (1) The payment is regular compensation for services during the participant's regular working hours, or compensation for services outside the participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (2) The payment would have been paid to the participant prior to a severance from employment if the participant had continued in employment with the Employer. (b) Leave cashouts and deferred compensation. Leave cashouts shall not be included in Actual Compensation. Further, deferred compensation shall not be included in Actual Compensation. (c) Salary continuation payments for military service participants. Actual Compensation does not include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code § 414(u)(1)). (d) Salary continuation payments for disabled Participants. Actual Compensation does not include r. compensation paid to a participant who is permanently and totally disabled (as defined in Code § 22(e)(3)). 2.3 Administrative delay ("the first few weeks") rule. Actual Compensation for a limitation year shall not include amounts earned but not paid during the limitation year solely because of the timing of pay periods and pay dates. 2.4 Inclusion of certain nonqualified deferred compensation amounts. If the Plan's definition of Compensation for purposes of Code § 415 is the definition in Regulation Section 1.415(c)-2(b) (Regulation Section 1.415-2(d)(2) under the Regulations in effect for limitation years beginning prior to July 1, 2007) and the simplified compensation definition of Regulation ].415(c)-2(d)(2) (Regulation Section 1.415-2(d)(10) under the Regulations in effect for limitation years prior to July 1, 2007) is not used, then Actual Compensation shall include amounts that are includible in the gross income of a Participant under the rules of Code § 409A or Code § 457(f)(1)(A) or because the amounts are constructively received by the Participant. 2.5 Definition of annual additions. The Plan's definition of "annual additions" is modified as follows: (a) Restorative payments. Annual additions for purposes of Code § 415 shall not include restorative payments. A restorative payment is a payment made to restore losses to a Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under federal or state law, where participants who are similarly situated are treated similarly with respect to the payments. Generally, payments are restorative payments only if the payments are made in order to restore some or all of the plan's losses due to an action (or a failure to act) that creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). This includes payments to a plan made pursuant to acourt-approved settlement, to restore losses to a qualified defined contribution plan on account of the breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). Payments made to the Plan to make up for losses due merely to market fluctuations and other payments that are not made on account of a reasonable risk of liability for breach of a fiduciary duty are not restorative payments and generally constitute contributions that are considered annual additions. (b) Other Amourits. Annual additions for purposes of Code § 415 shall not include: (1) The direct transfer of a benefit or employee contributions from a qualified plan to this Plan; (2) Rollover contributions (as described in Code §§ 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)); (3) Repayments of loans made to a participant from the Plan; and (4) Repayments of amounts described in Code § 411(a)(7)(B) (in accordance with Code § 411(a)(7)(C)) and Code § 411(a)(3)(D) or repayment of contributions to a governmental plan (as defined in Code § 414(d)) as described in Code § 415(k)(3), as well as Employer restorations of benefits that are required pursuant to such repayments. (c) Date of tax-exempt Employer contributions. Notwithstanding anything in the Plan to the contrary, Employer contributions are treated as credited to a participant's account for a particular limitation year only if the contributions are actually made to the plan no later than the 15th day of the tenth calendar month following the end of the calendar year or fiscal year (as applicable, depending on the basis on which the Employer keeps its books) with or within which the particular limitation year ends. 2.6 Change of limitation year. The limitation year may only be changed by a Plan amendment. Furthermore, if the Plan is terminated effective as of a date other than the last day of the Plan's limitation year, then the Plan is treated as if the Plan had been amended to change its limitation year. 2.7 Excess Annual Additions. Notwithstanding any provision of the Plan to the contrary, if the annual additions (within the meaning of Code § 415) are exceeded for any participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2006- 27 or any superseding guidance, including, but not limited to, the preamble of the final § 415 regulations. 2.8 Aggregation and Disaggregation of Plans. (a) For purposes of applying the limitations of Code § 415, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the Employer (or a "predecessor 2 Employer") under which the participant receives annual additions are treated as one defined contribution plan. The "Employer" means the Employer that adopts this Plan and all members of a controlled group or an affiliated service group that includes the Employer (within the meaning of Code §§ 414(b), (c), (m) or (o)), except that for purposes of this Section, the determination shall be made by applying Code § 415(h), and shall take into account tax-exempt organizations under Regulation Section 1.414(c)-5, as modified by Regulation Section 1.415(a)-1(f)(1). For purposes of this Section: (1) A former employer is a "predecessor employer" with respect to a participant in a plan maintained by an employer if the employer maintains a plan under which the participant had accrued a benefit while performing services for the former employer, but only if that benefit is provided under the plan maintained by the employer. For this purpose, the formerly affiliated plan rules in Regulation Section 1.415(f)-1(b)(2) apply as if the employer and predecessor employer constituted a single employer under the rules described in Regulation Section 1.415(a)-1(f)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted two, unrelated employers under the rules described in Regulation Section 1.415(a)-1(f)(1) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the event that gives rise to the predecessor Employer relationship, such as a transfer of benefits or plan sponsorship. (2) With respect to an employer of a participant, a former entity that antedates the employer is a "predecessor Employer" with respect to the participant if, under the facts and circumstances, the Employer constitutes a continuation of all or a portion of the trade or business of the former entity. (b) Break-up of an affiliate employer or an affiliated service group. For purposes of aggregating plans for Code § 415, a "formerly affiliated plan" of an employer is taken into account for purposes of applying the Code § 415 limitations to the employer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the "cessation of affiliation." For purposes of this paragraph, a "formerly affiliated plan" of an employer is a plan that, immediately prior to the cessation of affiliation, was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation Section 1.415(a)-1(f)(1) and (2)), and immediately after the cessation of affiliation, is not actually maintained by any of the entities that constitute the employer (as determined under the employer affiliation rules described in Regulation Section 1.415(a)-1(f)(1) and (2)). For purposes of this paragraph, a "cessation of affiliation" means the event that causes an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliation rules described in Regulation Section 1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rules of Regulation Section 1.415(a)-1(f)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group). (c) Midyear Aggregation. Two or more defined contribution plans that are not required to be aggregated pursuant to Code § 415(f) and the Regulations thereunder as of the first day of a limitation year do not fail to satisfy the requirements of Code § 415 with respect to a participant for the limitation year merely because they are aggregated later in that limitation year, provided that no annual additions are credited to the participant's account after the date on which the plans are required to be aggregated. ARTICLE III. PLAN COMPENSATION 3.1 Compensation paid after severance from employment. Compensation for purposes of allocations (hereinafter referred to as Plan Compensation) shall be adjusted in the same manner as Actual Compensation pursuant to Article II of this Amendment, except in applying Article II, the term "limitation year" shall be replaced with the term "plan year" and the term "Actual Compensation" shall be replaced with the term "Plan Compensation." MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: LARISSA DARNABY CITY PLANNER SUBJECT: ORDINANCE N0.938 DATE: FEBRUARY 24, 2009 BACKGROUND: At the February 17, 2009 meeting, the Owasso City Council approved a request for rezoning from CS Commercial Shopping and AG Agriculture Zoning Districts to an OPUD 08-03 Planned Unit Development Number 08-03 Zoning District, on property located at the southeast corner of East 76`h Street North and North 129~h East Avenue. The Council took the action on this rezoning request following the Planning Commission's approval on January 12, 2009. Attached is a copy of Ordinance No. 938 that formally adopts the City Council's action of February 17, 2009. RECOMMENDATION: The staff recommends Council approval of Ordinance No. 938. ATTACHMENT: 1. Ordinance No. 938 CITY OF OWASSO, OKLAHOMA ORDINANCE N0.938 AN ORDINANCE APPROVING ZONING APPLICATION NUMBER OZ- 08-06 CHANGING THE ZONING OF PROPERTY LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 21 NORTH, RANGE 14 EAST, TULSA COUNTY, OKLAHOMA, FROM CS (COMMERCIAL SHOPPING) AND AG (AGRICULTURE) ZONING DISTRICTS TO AN OPUD 08-03 (PLANNED UNIT DEVELOPMENT), AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH. WHEREAS, public hearings have been held regarding the request for rezoning of the property herein described, and WHEREAS, the Owasso City Council has considered the recommendation of the Owasso Planning Commission and all statements for or against the requested rezoning of application OPUD-08-03. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT: Section 1. The zoning classification of the following described property, to wit: A tract of land lying in the Northwest Quarter (NW/4) of Section Thirty-Three (33), Township Twenty-One (21) North, Range Fourteen (14) East of the Indian Meridian, Tulsa County, Oklahoma, being more particularly described as follows: Commencing at the Northwest Corner of said Northwest Quarter of said Section 33; Thence South 90°00'00" East a distance of 220.34 feet; thence South 00°00'00" West a distance of 50.00 feet to the Point of Beginning; thence from the said Point of Beginning, South 00°10'56" West a distance of 222.22 feet; thence South 90°00'00" East a distance of 215.70 feet; thence North 00°28'50" East a distance of 222.22 feet; thence South 90°00'00" East a distance of 223.14 feet; thence South 00°10'56" West a distance of 608.71 feet; thence South 89°59'20" West a distance of 662.16 feet; thence North 00°19'37" East a distance of 233.85 feet; thence South 90°00'00" East a distance of 50.00 feet; thence North 00°19'37" East a distance of 350.00 feet; thence North 45°10'25" East a distance of 35.46 feet, thence South 90°00'00" East a distance of 145.62 feet to the Point of Beginning. Area containing 335,514.5171 square feet or 7.7024 acres more or less. be, and the same is hereby zoned from CS Commercial Shopping and AG Agriculture Zoning Districts to PUD 08-03 Planned Unit Development Number 08-03. Section 2. All ordinances, or parts of ordinances, in conflict with this ordinance are hereby repealed to the extent of the conflict only. Section 3. If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected but shall remain in full force and effect. Section 4. The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. Section 5. That there be filed in the office of the County Clerk of Tulsa County, Oklahoma, a true and correct copy of this Ordinance. PASSED AND APPROVED this 3ra day of March, 2009. Stephen Cataudella, Mayor ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Julie Lombardi, City Attorney MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO, OKLAHOMA FROM: JULIANN M. STEVENS ADMINISTRATIVE ASSISTANT SUBJECT: SUPPLEMENTAL APPROPRIATION VETERANS MEMORIAL DATE: February 25, 2009 BACKGROUND: The City of Owasso has received a donation in the amount of $1,200 from the Owasso Veterans of Foreign Wars, Post 7180 and Ladies Auxiliary for improvements to the Owasso Veteran's Memorial, located in the Owasso Sports Park. These funds were not included in the fiscal year 2008-2009 budget, therefore a supplemental appropriation is being requested in order to utilize the funds. If approved, the staff intends to use these funds to purchase an additional seating bench identical to the three benches currently placed around the flag pole at the Veterans Memorial Site. The bench will be made of concrete with a black weatherstone finish. The backrest of the bench will be engraved in white lettering in honor of all veterans. The staff has contacted the vendor who supplied the original concrete benches currently placed around the site and has determined that additional benches are available. Once ordered, the company anticipates the delivery of the bench within four to six weeks. RECOMMENDATION: Staff recommends Council acceptance of a donation from the Owasso Veterans of Foreign Wars, Post 7180 and Ladies Auxiliary and approval of an amendment to the General Fund, General Government budget increasing the estimated revenues and the appropriation for expenditures by $1,200.