HomeMy WebLinkAbout2020-03 - 115 TrustRESOLUTION NO.2020-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, AUTHORIZING THE ESTABLISHMENT OF A SECTION 115 TRUST
FUND TO BE USED AS A RATE STABILIZING FUND FOR UNFUNDED PENSION,
APPROVING THE ADOPTION OF THE PUBLIC AGENCIES POST -EMPLOYMENT
BENEFITS TRUST, APPOINTING THE FINANCE DIRECTOR AS THE PLAN
ADMINISTRATOR AND AUTHORIZING THE FINANCE DIRECTOR TO TAKE THE
NECESSARY STEPS TO NEGOTIATE AND EXECUTE THE DOCUMENTS TO
ESTABLISH A SECTION 115 TRUST FUND, AND DELEGATING AUTHORITY TO THE
FINANCE DIRECTOR FOR MANAGING THE SECTION 115 TRUST FUND
INVESTMENTS
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, Phase II Systems DBA Public Agency Retirement Systems ("PARS")
has made available the PARS Public Agencies Post -Employment Benefits Trust (the
"Program") for the purpose of pre -funding pension obligations and/or other post -
employment benefits ("OPEB") obligations; and
WHEREAS, the City of Costa Mesa ("City") is eligible to participate in the
Program, a tax-exempt trust performing an essential governmental 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
WHEREAS, the City's establishment and funding of the Section 115 trust is for the
purpose of setting aside funds for the pre -funding of its California Public Employees'
Retirement System ("CalPERS") pension obligation that will be held in trust for the
exclusive purpose of making future contributions of the City's required pension
contributions and any employer contributions in excess of such required contributions at
the discretion of the City; and
WHEREAS, the City's establishment and operation of the Section 115 trust fund
as part 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
Resolution No. 2020-03 Page 1 of 3
WHEREAS, the City's funding of the Section 115 trust fund does not, and is not
intended to, create any new vested right to any benefit nor strengthen any existing vested
right of any former, current, or future City employee; and
WHEREAS, the City reserves the right to make contributions, if any, to the Section
115 trust fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Section 1. The City Council hereby authorizes the establishment of a Section
115 trust fund and participation in the Program to help pay for pension obligations.
Section 2. The City Council hereby adopts the PARS Public Agencies Post -
Employment Benefits Trust, effective January 21, 2020.
Section 3. The City Council hereby appoints the Finance Director as the City's
Plan Administrator for the Section 115 trust fund and Program.
Section 4. The City's Plan Administrator is hereby authorized to execute the
legal and administrative documents on behalf of the City and to take whatever additional
actions are necessary to establish a Section 115 trust fund and to take whatever
additional actions are necessary to maintain the City's participation in the Program, to
maintain compliance with any relevant regulation issued or as may be issued and to
administer the City's Program.
PASSED AND ADOPTED this 21 st dajy of pianuary, 2020.
ATTEST:
A&&
Brenda Gree , City Clerk
Katrino PsJ Mayor
APPROVED AS TO FORM:
Kimberly Ha Barlow, City Attorney
Resolution No. 2020-03 Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2020-03 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 21St day of January, 2020, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, MARK, REYNOLDS, STEPHENS, FOLEY
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: GENTS, MANSOOR
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 22nd day of January, 2020.
q,y PJA � a J� 0 W�/
Brenda Gret City Clerk
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