HomeMy WebLinkAboutReso 2020-277RESOLUTION NO. 2020-277
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
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Resolution No. 2020-277
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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.
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.
[SIGNATURES ON THE FOLLOWING PAGE]
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Resolution No. 2020-277
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Presented by Approved as to form by
David Bilby, MSBA, CPFO Glen R. Googins
Director of Finance/Treasurer City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California,
this 8th day of December 2020 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2020-277 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 8th day of December 2020.
Executed this 8th day of December 2020.
Kerry K. Bigelow, MMC, City Clerk
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