HomeMy WebLinkAboutItem 05 - Revised ResolutionRevised 12/7/2020
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE CITY’S PARTICIPATION IN THE PUBLIC
AGENCY RETIREMENT SERVICES (PARS) POST-EMPLOYMENT
BENEFITS TRUST PROGRAM (SECTION 115 PENSION TRUST FUND)
TO BE ADMINISTERED BY PARS, WITH U.S. BANK AS TRUSTEE,
DELEGATING SECTION 115 PENSION TRUST FUND ACTIVITY TO
THE DIRECTOR OF FINANCE/TREASURER AND AUTHORIZING
THE DIRECTOR OF FINANCE/TREASURER TO EXECUTE THE
DOCUMENTS TO IMPLEMENT THE PROGRAM
WHEREAS, the City of Chula Vista (“City”) provides its full-time miscellaneous
and safety employees with a defined benefit pension program through the California Public
Employees’ Retirement System (“CalPERS”); and
WHEREAS, the City is currently working on issuing Pension Obligation bonds to
pay off all or a portion of its Unfunded Accrued Liability (“UAL”) in connection with the
CalPERS; and
WHEREAS, part of the City’s plan includes setting aside a portion of the future
savings in connection with the issuance of Pension Obligation Bonds into a Section 115
Trust to help mitigate future pension cost increases; and
WHEREAS, the City requires Section 115 Pension Trust Fund Administration and
Investment Management Services; and
WHEREAS, in order to procure these services, the City solicited proposals in
accordance with Chula Vista Municipal Code Section 2.56.110; and
WHEREAS, the City received three (3) proposals from firms interested in providing
Section 115 Pension Trust Fund Administration and Investment Management Services; and
WHEREAS, the City’s firm selection committee completed its review of all three
proposals and determined Public Agency Retirement Services (“PARS”) as the firm to
provide Section 115 Pension Trust Fund Administration and Investment Management
Services; and
WHEREAS, PARS has made available the PARS Public Agencies Post -
Employment Benefits Trust (the “Program”) for the purpose of pre-funding obligations
and/or OPEB obligations; and
WHEREAS, the City is eligible to participate in the Program, a tax-exempt trust
performing an essential government function within the meaning of Section 115 of the
Internal Revenue Code, as amended, and the Regulations issued thereunder, and is a tax-
exempt trust under the relevant statutory provisions of the State of California; and
Resolution No. 2020-
Page 2
WHEREAS, the City’s adoption and operation of the Program has no effect on any
current or former employee’s entitlement to post-employment benefits; and
WHEREAS, the terms and conditions of post-employment benefit entitlement, if
any, are governed by contracts separate from and independent of the Program; and
WHEREAS, the City’s funding of the Program does not, and is not intended to,
create any new vested right to any benefit nor strengthen any existing vested right; and
WHEREAS, the City reserves the right to make contributions, if any, to the Program,
in accordance with the City’s Pension and OPEB Reserve Fund Policy; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista that it:
1. Approves the City’s participation in the PARS Public Agencies Post -
Employment Benefits Trust Program (Section 115 Pension Trust Fund); and
2. Appoints the Director of Finance/Treasurer or his/her successor or his/her
designee as the City’s Plan Administrator for the Program; and
3. Authorizes the Director of Finance/Treasurer to (i) negotiate and execute the
PARS Program agreements, and legal and administrative documents on behalf of
the City, in a form approved by the City Attorney; and (ii) to take any additional
actions he/she deems necessary to maintain the City’s participation in the
Program and compliance with all relevant regulations; therefore, authorizing
him/her to take any additional actions required to administer the City’s Program.
Presented by: Approved as to form by:
David Bilby, MSBA, CPFO Glen R. Googins
Director of Finance/Treasurer City Attorney