1 Appomattox Town Council Regular Council Meeting May 14, 2018
The Appomattox Town Council held a Regular Council meeting on Monday, May 14, 2018 at 7:30 p.m. at the Appomattox Municipal Building, 210 Linden Street, Appomattox, Virginia with Mayor Harvey, presiding.
Members present: Timothy W. Garrett, C. Lewis McDearmon, Jr., Mary Lou Spiggle, M. Erin Finch, Steven T. Conner and Claudia G. Puckette.
Others present: Nathan Simpson, Mr. and Mrs. James Boyce, Carlton Duck and Derek Norfield, Alive Media TV; Kim Ray, Town Treasurer; Gary Shanaberger, Town Manager and Roxanne W. Casto, Clerk of Council.
Mayor Harvey called the meeting to order.
Rev. Carlton Duck led the prayer and Pledge of Allegiance to the Flag of the United States of America.
Scheduled Public Appearances: None
Mayor’s Comments: None
Consent Agenda: On a motion by Mr. Garrett, seconded by Ms. Finch, Council voted to approve the consent agenda for May 14, 2018 as presented. All members present voting aye. Motion carried.
Unfinished Business: None
New Business: On a motion by Ms. Spiggle, seconded by Mrs. Puckette, Council voted to adopt the following VRS Group Life Insurance:
VRS GROUP LIFE INSURANCE RESOLUTION
BE IT RESOLVED that the Appomattox Town Council, a local political subdivision, of the Commonwealth of Virginia, acting by and through the Town of Appomattox, does hereby elect to have those of its employees who are regularly employed full time on a salaried basis and whose tenure is not restricted as to temporary or provisional appointment, become eligible to participate in the Group Life Insurance program as set out in Title 51.1, Chapter 5 of the Code of Virginia, as amended, effective July 1, 2018 and
2 Appomattox Town Council Regular Council Meeting May 14, 2018
BE IT FURTHER RESOLVED, the Town of Appomattox agrees to pay the required employer cost for its eligible employees and further, to deduct from employees' wages and to pay over in the manner prescribed the employees' portion to the extent that such employees' portion is not paid by the Town of Appomattox.
Now, therefore, Paul D. Harvey, Mayor and Roxanne W. Casto, Clerk, are hereby authorized and directed in the name of the Town of Appomattox to execute any required contract in order that employees of the Town of Appomattox may become eligible to participate in the Group Life Insurance program as provided in the aforementioned sections of the Code of Virginia. In execution of any contract which may be required the seal of the Town of Appomattox shall be affixed and attested by the Clerk, and said officers of the Town of Appomattox are authorized and directed to pay over to the Treasurer of Virginia from time to time such sums as are due to be paid by the Town of Appomattox and its employees for this purpose.
CERTIFICATE
I, __, Clerk of the Town of Appomattox certify that the
foregoing is a true and correct copy of a resolution passed at a lawfully organized meeting of the
Appomattox Town Council held at the Appomattox Municipal Building, Appomattox, Virginia at
7:30 o'clock p.m. on May 14, 2018. Given under my hand and the seal of the Town of
Appomattox this _ day of _. 20__.
Clerk
All members present voting aye. Motion carried 6-0.
On a motion by Mr. McDearmon, seconded by Mrs. Puckette, Council voted to adopt the VRS Resolution to Elect the Alternate Rate:
3 Appomattox Town Council Regular Council Meeting May 14, 2018
4 Appomattox Town Council Regular Council Meeting May 14, 2018
All members present voting aye. Motion carried 6-0.
5 Appomattox Town Council Regular Council Meeting May 14, 2018
On a motion by Mr. Conner, seconded by Ms. Spiggle, Council voted to adopt the Commonwealth of Virginia 457 Deferred Compensation Plan Employer Adoption Agreement for All Employees:
Commonwealth of Virginia 457 Deferred Compensation Plan Employer Adoption Agreement for All Employees
THIS AGREEMENT (the “Agreement”), executed this [insert date] 14th day of May, 2018, is by and between [insert Locality, School Division, or Other Political Subdivision] Town of Appomattox_ (the “Employer”) and the Virginia Retirement System (the “Plan Sponsor”) (hereinafter collectively referred to as the “Parties”).
WITNESSETH
WHEREAS, the Commonwealth of Virginia established the Commonwealth of Virginia 457 Deferred Compensation Plan (the “Plan”) and the Master Trust for the Plan (the “Trust”) pursuant to § 51.1-600 et seq. of the Code of Virginia, as amended, and Internal Revenue Code (“IRC”) § 457(b), including both Roth and Traditional options; and
WHEREAS, pursuant to § 51.1-603.1 of the Code of Virginia, as amended, the Employer desires to enter into this Agreement with the Plan Sponsor to permit participation in the Plan by its eligible employees; and
WHEREAS, the Employer is an “eligible employer” within the meaning of IRC §
457(e)(1)(A); and
WHEREAS, pursuant to § 51.1-603.1(B) of the Code of Virginia, as amended, the Employer may establish and automatically enroll certain employees in the Plan upon hire; and
WHEREAS, the Employer, by a resolution of its governing body, has directed its
responsible official to enter into this Agreement;
NOW, THEREFORE, in consideration of the premises herein, the Parties agree as
follows:
1) The Plan Sponsor and the Employer represent and warrant that each shall comply
with all applicable laws and policy.
2) The Plan Sponsor represents to the Employer that the Plan Sponsor shall provide
sufficient services to administer the Plan.
6 Appomattox Town Council Regular Council Meeting May 14, 2018
3) The Employer acknowledges and agrees to the terms and conditions established in
the Trust and the Plan.
4) For purposes of the Employer’s participation in the Plan, “employees” shall mean
all “employees” as defined in § 51.1-600 of the Code of Virginia.
5) The Employer shall permit the Plan Sponsor’s third party administrator (“TPA”) to
conduct group and individual meetings on the Employer’s premises for the purpose of explaining the Plan or enrolling employees.
6) The Employer shall permit the Plan Sponsor and the TPA to communicate directly
with eligible employees about plan information and enrollment.
7) The Employer shall remit contributions under the Plan to the TPA in accordance with
procedures promulgated by the Plan Sponsor or the TPA. The Employer shall correctly report and withhold employees’ wages in accordance with applicable laws and policy.
8) The Employer shall make the appropriate contributions (including associated matching contributions to another plan, if applicable) required under Internal Revenue Service regulations and the Plan Sponsor procedures to correct any failure (i) to inform an employee of the opportunity to defer, (ii) to allow an employee to defer, or (iii) to implement automatic enrollment, reenrollment, or an election or election change by an employee.
9) Should the Employer offer its employees deferred compensation plans in addition to the Plan, then the Employer is responsible for monitoring all plans to ensure that no participants exceed the maximum deferral limits under IRC § 457.
10) If the Employer so desires, it may check the box below and sign the statement of
acknowledgment to automatically enroll certain employees in the Plan in a manner prescribed by the Plan Sponsor, subject to an employee (i) commencing employment or reemployment on or after the first day of [insert month and year]_July 2018__ but no sooner than the date established and confirmed by the Plan Sponsor, (ii) not participating in the Hybrid Retirement Plan described in § 51.1-169 of the Code of Virginia, and (iii) not having affirmatively elected to participate in the plan described in § 51.1-602 of the Code of Virginia or a 403(b) plan. If the Employer does not check the box and sign the statement of acknowledgment, then the Employer shall not automatically enroll its employees in the Plan.
X
By checking this box and signing this statement of acknowledgment, the
Employer agrees to automatically enroll in the Plan in a manner prescribed by the Plan Sponsor, all employees who (i) commence employment or reemployment on or after the first day of [insert month and year]_July 2018__ but no sooner than the date established and confirmed by the Plan Sponsor, (ii) do
7 Appomattox Town Council Regular Council Meeting May 14, 2018
not participate in the Hybrid Retirement Plan described in § 51.1-169 of the Code of Virginia, and (iii) have not affirmatively elected to participate in the plan described in § 51.1-602 of the Code of Virginia or a 403(b) plan.
Signature
11) If applicable, the Employer acknowledges it is solely the responsibility of the Employer to instruct the Plan Sponsor’s TPA where to map assets from the Employer’s existing plan to the available investments under the Plan. Neither the Plan Sponsor nor the Plan Sponsor’s TPA will advise or recommend to the Employer how to map assets from the Employer’s existing plan.
12) The Employer acknowledges asset transfers from an existing plan with the Employer into the Plan may need to be made over more than one day depending upon the facts and circumstances of each case.
13) The Employer acknowledges upon termination of this Agreement asset transfers out of the Plan may need to be made over more than one day depending upon the facts and circumstances of each case.
14) This Agreement may be amended from time to time only by written agreement
between the Plan Sponsor and the Employer.
15) The term of this Agreement shall be for at least a three-year period beginning on the date of its execution and, thereafter, may be terminated by either party upon written notice to the other party, which termination shall become effective on a date established by the Plan Sponsor.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed, intending to be bound thereby.
Employer
Virginia Retirement System
By: __
By: _
Title: _
Title: __
Date: _, 20
Date: _, 20__
All members present voting aye. Motion carried 6-0.
8 Appomattox Town Council Regular Council Meeting May 14, 2018
On a motion by Mr. Conner, seconded by Mr. Garrett, Council voted to adopt the Commonwealth of Virginia 457 Deferred Compensation Plan Resolution:
Commonwealth of Virginia 457 Deferred Compensation Plan Resolution
WHEREAS, the [insert Locality, School Division, or Other Political Subdivision Name]
_Town of Appomattox (the “Employer”), acting by and through [insert name of governing body] the Appomattox Town Council__, desires to adopt the Commonwealth of Virginia 457 Deferred Compensation Plan (the “Plan”) for its employees as defined in the adoption agreement between the Employer and the Virginia Retirement System (the “VRS”); and
WHEREAS, the Plan, which includes both Roth and Traditional options, is authorized by
the Code of Virginia § 51.1-600 et seq. and Internal Revenue Code § 457(b), and political subdivisions are authorized to participate in such Plan by the Code of Virginia § 51.1-603.1; and
NOW, THEREFORE, BE IT RESOLVED, that the Employer hereby approves the adoption of the Plan for its employees in accordance with applicable law and policy; and
BE IT FURTHER RESOLVED, that the Employer’s staff is hereby directed to implement
the Plan effective the first day of [insert month and year] July 2018 but no sooner than the date established and confirmed by VRS.
NOW, THEREFORE, the officers of the Employer are hereby authorized and directed in
the name of the Employer to carry out the provisions of this resolution, enter an adoption agreement with VRS, and pay such sums as are due to be paid by the Employer for this purpose.
Governing Body Chair
CERTIFICATE
I, [insert name] _ of the Employer, certify that the foregoing is a true and correct copy of a resolution passed at a lawfully organized meeting of the Employer held at [insert county/city/town] _, Virginia at [insert time] on [insert date] _ , 20. Given under my hand and seal of the Employer this day of _, 20.
, [insert title]
All members present voting aye. Motion carried 6-0.
Signature
9 Appomattox Town Council Regular Council Meeting May 14, 2018
On a motion by Ms. Spiggle, seconded by Ms. Puckette, Council voted to adopt the Authorization to Pick Up the Employees Contribution to VRS for Past Service Credit under §414(h) of the Internal Revenue Code:
RESOLUTION
Authorization to Pick up the Employees Contribution to VRS for Past Service Credit under § 414(h) of the Internal Revenue Code
WHEREAS, the Appomattox Town Council__ desires to provide its employees with tax deferral pursuant to § 414 (h) Internal Revenue Code (IRC) with respect to their member contributions to the Virginia Retirement System, the State Police Officers’ Retirement System (collectively referred to as VRS) for the permissible purchase of past service credit by picking up member contributions to the VRS; and
WHEREAS, the pick up is authorized under § 51.1-142.2 of the Code of Virginia, as amended from time to time; and
WHEREAS, the VRS keeps track of such picked up member contributions, and is prepared to treat such contributions as employee contributions for all purposes of VRS;
NOW, THEREFORE, IT IS HEREBY RESOLVED that effective the first pay day on or after the later of July 1, 2018_ or the date the member executes a binding and irrevocable salary reduction election relating to the past service permitted to be purchased, the Town of Appomattox shall pick up all or a portion of the member contributions of its employees to VRS based on the terms of the salary reduction election, and such contributions shall be treated as employer contributions in determining tax treatment under the IRC; and it is further
RESOLVED, the binding salary reduction election to be executed by the member shall include the following: (1) the beginning and ending date of the election, (2) the amount of the salary reduction on a pay period basis, (3) the total amount of contribution expected to be involved, (4) a statement that the member may not receive the contributed amounts instead of having them paid by the Town of Appomattox_ to the VRS, and (5) an agreement that the member will not purchase the service credit through a lump sum payment during the period in which the salary reduction election is in effect; and it is further
RESOLVED, the member may revoke the salary reduction election only in the event of an unforeseeable emergency as that phase is used and defined in IRC § 457 and applicable Treasury Regulation and if such a revocation is made, the member may not make a new salary reduction election during his period of employment; and it is further
RESOLVED, that such contributions, although designated as member contributions, are to be made by the Town of Appomattox _ in lieu of member contributions; and it is further
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Regular Council Meeting May 14, 2018
RESOLVED, that pick up member contributions shall be paid from the same source of funds as used in paying the wages to affected employees, and it is further
RESOLVED, that member contribution made by the _Town of Appomattox under the pick up arrangement shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick up arrangement; and it is further
RESOLVED, that nothing herein shall be construed as to permit or extend an option to VRS members to receive the pick up contributions made by the Town of Appomattox directly instead of having them paid to VRS; and it is further
RESOLVED, that notwithstanding any contractual or other provisions, the wages of each member of VRS who is an employee of the Town of Appomattox shall be reduced by the amount of member contributions picked up by the Town of Appomattox on behalf of such employee pursuant to the foregoing resolutions.
Adopted in _, Virginia this _ day of , __.
Printed Authorized Signature Title
Authorized Signature
Title
All members present voting aye. Motion carried 6-0.
Standing Committee Reports: None
Citizen Comment Period: None
11 Appomattox Town Council
Regular Council Meeting May 14, 2018
Town Manager’s Report: Mr. Shanaberger reported on the following:
➢ Continues to update the contract with the Architect for the Train Depot. ➢ Jeff Garrett, Chairman, EDA and Mr. Shanaberger have begun visiting with Downtown Businesses and Property Owners regarding the Downtown Revitalization Grant. The business and property owners appear to be grateful for the Town EDA’s willingness to help with a portion of the payment. On June 12, 2018 there will be a local business and property owners meeting – possibly at the Train Depot.
➢ Mr. Shanaberger thanked staff for assisting in getting information to Hurt & Proffitt for
the Utility Rate Study.
➢ He attended the Artisan Festival held at the Courtland Festival Park last weekend. ➢ It will likely be a couple of more weeks before the bathrooms at the Kiddie Park are
open.
Council Concerns: Mr. Conner questioned if the Town has any AirBnB’s? VML sent out something to members and he didn’t know if we had any.
Closed Session: On a motion by Council Member Spiggle, seconded by Council Member Finch, Council voted to convene in Closed Session, pursuant to Section 2.2-3711 (A) 1 of the Code of Virginia, 1950, as amended, for the purpose of performance and salaries of specific public employees of any public body, specifically Employees A and B.
Vote: Garrett – yes, McDearmon – yes, Spiggle – yes, Finch – yes, Conner – yes, Puckette – yes.
The meeting was re-opened to the public.
Council Member Garrett made the following motion:
WHEREAS, the Council of the Town of Appomattox has convened a closed meeting on this date, pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and
WHEREAS, Section 2.2-3712 of the Code of Virginia requires a certification by Town Council that such closed meeting was conducted in conformity with Virginia law;
NOW, THEREFORE, BE IT RESOLOVED that the Appomattox Town Council hereby certifies that to the best of each members knowledge: (1) Only public business matters lawfully exempted from open meetings requirements by Virginia law were discussed in the closed meeting to which this certificate resolution applies, and (2) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed, or considered by this council.
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Regular Council Meeting May 14, 2018
The motion was seconded by Council Member Finch and Council by the following recorded vote adopted the motion:
Vote: Garrett – yes, McDearmon – yes, Spiggle – yes, Finch – yes, Conner – yes, Puckette – yes.
Motion carried 6-0.
On a motion by Mr. Garrett, seconded by Mrs. Puckette, Council voted to rescind a motion made on April 24, 2018 to give Employees A & B a $10,000 bonus each. All members present voting aye. Motion carried 6-0.
On a motion by Mr. Garrett, seconded by Mr. Conner, Council voted to give a $5,000 bonus and a $5,000 salary increase to Employees A & B. All members present voting aye. Motion carried.
On a motion by Mr. Conner, seconded by Mr. Garrett, Council adjourned at 8:20 p.m. All members present voting aye. Motion carried 6-0.
Roxanne W. Casto, MMC Clerk of Council
Paul D. Harvey, Mayor