HomeMy Public PortalAboutOrd 46 of 2004 Amended by Ord 1 of 2011 Creating a Public Urtility Commission ORDINANCE NO. 46 Of 2004
AN ORDINANCE CREATING A PUBLIC UTILITY
COMMISSION FOR THE CITY OF BENTON, ARKANSAS
FOR THE PURPOSE OF OPERATING AND CONTROLLING
THE ELECTRIC, WATER AND SEWER SYSTEM OWNED BY
THE CITY; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS, the City of Benton, Arkansas (the "City") owns
and operates electric, water and sewer utilities as a single,
integrated undertaking (collectively, the "System"); and
WHEREAS, the City Council desires to provide low cost and
reliable utilities to the citizens of the City; and
WHEREAS, the City Council has determined the need for (a)
studies regarding the City's short and long term needs regarding
the System, (b) continuous upgrading of the System for future
growth, and (c) other utility related services as may benefit the
citizens of the City; and
WHEREAS, the City Council of the City has determined that
the System can be most efficiently and economically operated under
a commission form of management, and
WHEREAS, the City Council by resolution will delineate
certain matters, such as allocation of employees, planning,
financial reporting, personnel policies, assessment charges,
provision of services to the City and such other matters as the
City Council may deem appropriate; and
WHEREAS, Title 14, Chapter 201, Subchapter 2 of the
Arkansas Code Annotated (1998 Repl.) (the "Authorizing
Legislation") provides for the formation of a commission for the
purpose of directing, controlling, operating and managing the
water, sewer and electric utilities of a city of the first class;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the
City of Benton, Arkansas:
Section 1. That, pursuant to the Authorizing Legislation,
there is hereby created a commission to be designated as the
"Public Utility Commission of the City of Benton, Arkansas" (the
"Commission").
Section 2. That, in conformity with the requirements of
the Authorizing Legislation, the Commission shall initially be
composed of five residents of the City having the following terms:
Charles Mazander, whose term will expire ~ , 2005,
Charles Best, whose term will expire ;~-~1 , 2006,
Rita Edwards, whose term will expire I~-~l 2007,
Lamont Cornwell, whose term will expire ;~-~i - 2~08, and
James Martin, whose term will expire !~ , 2069.
Ail commissioners shall at all times be residents of the
City. Successor commissioners shall be nominated by the Commission
and submitted to the City Council for ratification and confirmation
by a majority vote of all members of the City Council for a term of
five (5) years. All vacancies by death, resignation or inability
to serve shall be filled by the same procedure as successor
commissioners.
In addition to the five commissioners, the Mayor and one
alderman to be appointed by the City Council from time to time
shall serve an ex-officio members of the Commission with no voting
authority. Ex-officio members shall not count in determining a
quorum for meetings of the Commission.
In the event that any members of the Commission shall
attempt to exercise the power of the Commission or his power as a
Commissioner in a harmful or unlawful manner, the City Council
shall have the right to conduct a hearing and if it finds the
charges to be true, it may remove such commissioner by a two-thirds
(2/3) vote of the members of the City Council. The vacancy shall
be filled by the same procedure for successor commissioners.
Section 3. That the Commission is hereby granted full
power to manage, operate, control, supervise, improve, extend,
maintain and contract concerning the System subject to the
Authorizing Legislation and certain conditions set from time to
time by the City Council.
Section 4. That the Commission is hereby granted full
power to employ or remove any and all assistants and employees and
to fix, regulate, and pay their salaries, subject to the
Authorizing Legislation and certain conditions set from time to
time by the City Council.
Section 5. That, subject to the Authorizing Legislation
and certain conditions set from time to time by the City Council,
the Commission is empowered to acquire, construct and equip any and
all facilities, consisting of real property, personal property or
mixed property of any and every kind, which are necessary or useful
as a part of or in connection with the System.
Section 6. That the City Council shall continue to
approve bonds for the System. The Commission shall not have the
power to issue bonds. However, the Commission shall from time to
time make recommendations to the City Council regarding the need
for bonds to be issued. The City Council shall not approve the
issuance of bonds for the System without first seeking the advice
of the Commission, which advice shall be nonbinding.
Section 7. That the members of the Commission shall
serve without compensation. In the event any member of the
Commission incurs any expense in the performance of his duties as a
commissioner, such expense may be allowed by the Commission as a
part of the cost of the operation and paid out of the revenues of
the System.
Section 8. That the Commission shall report to the City
Council on each calendar quarter of the year on the state of
operations and financial affairs of the Commission and the System.
Section 9. That at the end of each fiscal year, the
Commission shall cause an audit to be made of the financial affairs
of the Commission by a certified public accountant. Five (5) copies
of such report shall be retained in the office of the Commission,
and there shall be made available a copy to the Mayor of the City
and the City Council.
Section 10. That the Commission shall adopt such rules
and regulations as it deems necessary and proper for the operation,
supervision, control and management of the System. The Commission
is hereby empowered to change the rules and regulations at any time
the Commission desires to do so.
Section 11. That the Commission shall manage, operate,
control and supervise the System and handle, invest, collect and
deposit revenues of the System in compliance with all ordinances
authorizing outstanding bonds of the City payable from System
revenues (the "System Bonds") and all ordinances incorporated
therein by reference (the "Bond Ordinances").
Section 12. That the City Council shall continue to be
empowered to set and approve the rates for the System. The
Commission shall not have rate-making authority. However, the
Commission shall from time to time make recommendations to the City
Council as to rate adjustments. Except rate increases necessary to
comply with the req~. irements of the Bond Ordinances, the City
Council will not revise rates without first seeking the advice of
the Commission, which advice shall be nonbinding.
Section 13. That so long as the Commission is collecting
revenues of the System and making the deposits and payments
required by the Bond Ordinances, there shall be no charge to
properties owned by the City for services of the System.
Otherwise, the Commission shall not provide any free, reduced
charge or donated service to any entity nor shall it donate any of
its equipment, material, labor or funds without the express
approval of the City Council.
Section 14. That the Commission and the City may enter
into agreements to provide non-utility related services to each
other and shall charge each other the cost of such services.
Section 15. That in the event the City Council should
choose to dissolve the Commission, it shall require a two-thirds
(2/3) majority of the total membership of the City Council to pass
an ordinance or resolution to that effect.
3
Section 16. That the provisions of this Ordinance are
separable and if a section, phrase or provision shall be declared
invalid, such declaration shall not affect the validity of the
remainder of this Ordinance.
., Section 17.. That this Ordinance shall not take effect
until ~~,~ ~ , 200~k.
!
APPROVED:
~ M~yor
Cit~ Clerk
(SEAL)
ORDINANCE NO.46 of 2004
AN ORDINANCE CREATING A PUBLIC UTILI-
TY COMMISSION THE CITY OF BENTON,
ARKANSAS FOR THE
PURPOSE. OF RAT-
ING AND CONTROLLING THE ELECTRIC,
WATER AND SEWER SYSTEM OWNED BY THE
CITY;AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS, the Cilyer Benton, Arkansas e(the
"City") owns and operates grateelectric wafer and
STATE OF ARKANSAS as � sewer nenecs as a smgle,mte aced undertaking
County of Saline �, 'I ll,ctieelyy the"eystem-);and
WHEREAS,�the City Council desires to provide
low cost and reliable utilities to the citizens of the
II M n G and
I, ,/�nf/na L. I /1�.11�31 do solemnl swear EREAS,the City Council
ilgl has determined the
y long tfor
ma)studies
rcg mdh the City's al rt mol
that I am Legal Advertising Clerk of The Benton Courier, y
a nail newspaper nos npgmding of the System for future growth,
yprinted in said county and that Lwas and(e)other utility related services as may bene-
such at the date of publication hereinafter stated, and fit fire citizens of the City;endWHEREAS, the City Comfort of the City has de-
that said newspaper had a bona fide circulation in such termined that the System can be most efficiently
and economiallyeoperated under a commission's
county at said dates,and hasba�e)(❑/regularly published in form of manage nt,and
said county for 8 period Of gip_years next before WHEREAS,The Cay Council by resolution winl
delineate certain matters, such as allocation of'.
the date of the first publications of the advertisement employees,planning, financial reporting, person-
hereto annexed, and that said adv rtisement was pub- net policies, assessment charges, provision of
P services to the City and such of in matters as the
lash d In said newspaper times for fiery Council may deem appm riste;and
4 WHEREAS,Title 14,Chapter p0L Subchapter 2 of
I issue th ret it sertion therein having been the Arkansas Code Annotated (1998 Repl) (the
made on -� ' end the "Authorizing legislation') p ovidca for.the for-
mation of a commission for Poe pherswe of direct-
last insertion an U:k_&I1_C4 ing,controlling, pr t ngg and �g gg the va-
/1 sewer and electric oblides of a c ty f the first
NOW THEREFORE,heO BH Benton,ORDAINED, Yhe'
�'7--^— City I Til t,m C ry of Arkansas
:
Legal Ve ,kN/ Section 1-Th,t pinarmin re to A th izm�Leg-
V is cosi,there is the
e"yyublic Utility a Co issmn to
lie des' namd Be to ,Arka sat" ( Commission
Sworn 444444o a ppd s bde abed before me on �.�, of the miry of Benton, Arkansas' (the "commis
�1 n�V�� Sectio.
menoa z-he Ain ozing I gi,•nn the re,nir�
mems of the Authorizing ng Leg slatioq the�om-
V mention shall initially iha be composed of five.rani-
dents of the City having the following terms;
Notd)y Public Charles Mles Best,whose term well expire 12-31,
2005,Charles Best, whose term will expire 1231,
My COm@i@�a{hg Tres 2006,Rita Edwards,whose tum will expire 12-31,
,-j 4O�n i,.r 12 3 Lamont Cornwell,11, whosewhom, ho will expire
12p31 2008 d J Martin, h t in will
�GGtAM FEE PC-= All thire e ('fly.
Su2009, hall tall tin n resident,e
$ f the C'ty Successor so commissioners hall be.
)'
nominated by the C - d b tt 1 m
o s. at of Proof $ to City Councilratificationa s n lion
by a n r ty t of all members of the City
C l�or t off e(`7 ea All rtes
by death,resignation n ab city t shall be
RCCCn�Q{ry8llltQ�yw .
fled by theme procedurei r -
#�y missiopers.
THE BENTON COURIER To addition to the five emmm ,iourns,the Mayor
B
end one ilde ma to be appointed by the City
y Council from time to time shh all serve an ex-officio
embers of the Commission with no voting
ihorityEx-officio members shall not count lu de-
1 on temquorum for a quoru £mrmeetinga of the Commis-
mtL
In the event that any members of the Commission
shall carattlaripth s owerexercisea the ppower of the Com-
harmf n-or hes power as n r, the City Co in a
harmful t unlawful t co manner, the City and if it
shall have e har right fm conduct a hearing omi dud R h
finds the charges to two-thirds
-thi it may to such
mmmissiof by i two-thirds he v vote of the
embers of the City Council.The vacancy shall
be filled by the same procedure for successor
commie9ioners.
Section 3.That the Commission is hereby granted
full power to manage,operate,control,supewise,
imp extend,.maintain and con[ratt,L grm-
ing the System subject to the Authorizing Legida-
tion and certain conditions set from Hme b-time
bthe Cay C il
rhon 4 That the Croussi.,ish rebC'gnted
-fel}pa..euj iptoq or aemovea yd'al'aasrs'-
to is and ca playyers and to8 regulate,ae 1,pay
a alarie blect to the Authorizing Legisla rection 1avenues of g System a,the and commission
maki isg the
non and certain conditions set from time to time b the Bond the
by the Cib,Council- de sits and payments factional. y
Or-
Section 5-That,subject to the Authorizing Legisla- dlnances, there shall be no charge to propetltes
tion and certain conditions set from hoe to tlme caned b the Cttv for services of the System.Oth-
b e th City C '1 the Con empow- n - e the C mm s on hall not pmv'd any
,
1 1 yi construct and eq p y and all "weh red c d barge r donated seervice icm to t o n-
facilities, consisting first property,personal ti or shfiit donateany p[itse
property or mixed property of any and every off labor or funds without the""press approval
k d which am necessary or useful as apact of or of to,city Council.
at connection with the System. Section 14. That the Commission and the City
Section 6. That the Ci .Council shall continue to a enter into agreements to vovide noo-ulhty
a prove bonds Tor the System. The Commission related sefvices m.each utheir and shall charge
Move
have the power to issue bonds Howev- each the,the cast of such services.
Section 15.That in the event the City Council
re the Commission shall from Niue ci Norge make -should choose to dissolve the Commission,it
eommeud to [ the Cas Council e azding
the need fop bond t be 3sued.The Cly Council h 11 eq ire a two thuds(2/3)m 1in ltv of the.1
to-
shall not approve the .uan' f b rids for the al me bership of the Cay Coun to pass an an
Syystem without fist seeking thea advice of the resol k totl l f est
Co mEdion h ch ala ice shgl l b bindinK. 5 ct oc 16-That tl e p sons of Ca O d nen
Section Z That d member,of the C omission hr e o precision
e sc . able rvd'f all tion,p
shall serve Th t c t oti,Tn the event _ ppe dedamd v Gd, such d de t ov shall)
v membe f the Commission s any ex- nflat t th validity of the remamde of n �!
p .e in the p fomnnce of hs d Hes as a con- d'Console
.
cameq such xpense may b allowed by lire S bon 17.That this Ordinance hall nob tak id,,,
Commission a part of the cost of the operation t t until f rlevary L 200"
and paid out of the revenues of the System. PASSED.Dare 13,2004
Section 8.That the Commission shall report to the APPROVP.D-Rick Holland MayoS�
City Council on each calendar Gusher of the year A'I lcfir.Gndy Shacener
on the state of dp"Items and Randal affairs of
the Commission and the System.
Section 9.That st if,,end of each fiscal year,the e
Commission shall cause an audit to bemade of
the financial affairs of the Commission bya certi-
fied public aeeowtavt.Five(5)copies of such fe-
part shall be retained in the office of the Commis
aloq and there shill be made available a copy to
the Mayor of the City and the Cit,Council.
Section 10Thatthe Commission shall adopt such
noes and regulations is it deems necessary and
proper for the operation,supervision,control and
management of the System.*The Commission isl
hereby empowered to change the fules and prim,
lotions et my time the Commission desires to do
Section I t That the Commissipn shall manage,'
operate, control and u ervi§e the System and
handle,in compliance
collect with
I ordinance author pf the
System is anding bonwith tII ordinances lefo -
is store
outstanding thuds of the City payable from
System revenues(the"system Banda")and all or-
dinances Incorporated therein by reference (the
"Bond Ordinances").
Section 12.5'hat the City Council shall continue to
be empervered to set and approve the rates for
the System, I;he Commission shell not Have rate-
nuking nuthmity. however, the Commission
shall from time to time make recommendations to
the City Council as to rate adjustments. Except
rate increases necessary to comply with the re-
quirements of the Bond Ordinances, the City
C under will not revise rates without first seeksg
the advice of the Commission,which advice shall
be nonbinding:
ORDINANCE NO. 76 OF 2021
AN ORDINANCE ADOPTING AN AMENDMENT TO BENTON
UTILITIES EMPLOYEE PENSION PLAN AND TRUST; AND
FOR OTHER PURPOSES
WHEREAS, pursuant to ordinance and the current plan documents, the City
Council of the City of Benton, Arkansas, has the sole and exclusive authority to
consider and adopt all proposed amendments to the Benton Utilities Employee
Pension Plan ("Utilities Plan");
WHEREAS, since the City Council established the Public Utility Commission
"to manage and operate" the Utilities Department, there has been a mutual effort to
sever the administrative and personnel ties between the two entities;
WHEREAS, before the adoption of Resolution No. 67 of 2019, which amended
the Utilities Plan documents to allow for the creation of an "Administrative
Committee" made up of utility department personnel and a Utility Commission
Representative to provide management of the Utilities Plan, the Public Utility
Commission, did not have authority and/or oversight for the administration and
operation of the Utilities Plan;
WHEREAS, the Administrative Committee of the Utilities Plan has
determined after several meetings with the Plan's Actuary and Investment
Counselors that the Utilities Plan's interest would best be served if all Utilities Plan
amendments were considered and adopted by the Public Utility Commission; and
WHEREAS, Ordinance No. 46 of 2004, Section 3, which created the Public
Utility Commission, states that "the Commission is hereby granted full power to
manage, operate, control, supervise, improve, extend, maintain and contract
concerning the system" of which the employee pension plan is a part.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF BENTON,ARKANSAS:
SECTION 1: The Benton Utilities Employee Pension Plan is hereby adopted
as follows:
Article 9, Section 9.01 "Right of Employer to Amend Plan"
"The City of Benton Public Utilities Commission as the employer shall have
the right to amend the Plan pursuant to recommendations of the Plan's
Administrative Committee."
SECTION 2: At any time in the future if the Benton Public Utility
Commission ceases to exist, the management and oversight of the Utilities Plan shall
become the responsibility of the City of Benton.
SECTION 3: All ordinances and resolutions containing provisions that
conflict with this ordinance shall be deemed null and void.
PASSED AND APPROVED this the o day of November, 2021.
Tom Farmer, Mayor
Cindy St acener, City Clerk
OVERBEY,STRIGEL,BOYD&WESTBROOK,PLC
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THOMAS L.OVERBEY SEARCY BUILDING,SUITE 310 NORTHWEST OFFICE
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MELANIE J.STRIGEL LITTLE ROCK,ARKANSAS 72211-6022 FAYEITEVILLE, ARKANSAS 72701
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CRAIG WESTBROOK
LAURIE M.BOYD FACSIMILE(501)219-2993
TELEPHONE(501)664-8105 EMAIL CWESTBROOK(-ARTAXLAW.COM
W W W.ARTAXLAW.COM DIRECT LINE(501)492-7080
November 17, 2021
PROPOSED 401(A)DEFINED CONTRIBUTION AND 457(b)PLAN
This memo describes provisions of a proposed 401(a) defined contribution and 457(b) plan for
Benton Utilities. Under federal and state tax law, employee contributions to a governmental 401(a) plan
are only before-tax if they are required as a condition of employment. A governmental entity may not
maintain a 401(k) plan. A governmental entity may maintain a 457(b) plan, which is similar to a 401(x)
plan. This is why two plans are being proposed. Plan features would be as follows:
1) Eligibility. All full time employees hired after 1-1-2022 would be eligible to participate in
the 401(a) Defined Contribution plan and would not be eligible to participate in the existing defined
benefit plan. A full time employee would have the same definition as the current plan. Full time
employees would enter the Defined Contribution plan on their hire date. All full time employees
(regardless of hire date)would be eligible to participate in the 457(b)plan.
2) Employee Contributions to 401(a) plan and 457(b) plan. Employees eligible for the
401(a) Defined Contribution Eligible employees would be required, as a condition of employment, to
make required employee contributions of 2% of Compensation. These required employee contributions
are before-income tax,but are subject to FICA/Medicare tax.No additional employee contributions would
be made to the 401(a) Defined Contribution plan. All full-time employees would be eligible to make
before-tax or Roth contributions to the 457(b) plan. Only employees in the DC plan would have
employer matching contributions. An employee would be able to start or change the employee's 457(b)
contributions at any time. The maximum 457(b) contribution is current $19,500 per year, or $26,000 for
an employee who attains age 50+by the beginning of the year. The employer could,but is not required,to
auto enroll employees in the 457(b) plan. Except for Roth 457(b) contributions discussed below,
employee contributions to the 457(b)plan are not subject to income tax,but are subject to FICA/Medicare
tax.
3) Roth 457(b) Feature. The 457(b) plan can permit participants to make Roth 457(b)
contributions. Roth 457(b) contributions are currently after-tax, unlike regular salary deferral
contributions to the 457(b) plan which are before tax. However, assuming that the employee withdraws
the funds from the Roth 457(b) account after age 59 1/2 and after 5 years from the first Roth 457(b)
contribution, distributions from the Roth 457(b) account (including earnings) are not subject to income
tax. Roth 457(b)contributions do not increase the total amount which can be contributed by an employee.
The election to make Roth 457(b) contributions must be made before the amounts are deducted from the
employee's paycheck.
4) Employer Contributions. The employer contribution on behalf of DC participants would
be made to the 401(a) Defined Contribution Plan. The contribution would be 5%of compensation,plus a
matching contribution of 100% of contributions made by the employee to the 457(b) plan, up to an
additional 5%, with the maximum employer contributions being a total of 10%.No matching contribution