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RESOLUTION NO. ______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD APPROVING THE ADOPTION UPDATED
INVESTMENT POLICY STATEMENT S FOR OF THE PUBLIC
AGENCIES BENEFITS TRUST S ADMINISTERED BY PUBLIC
AGENCY RETIREMENT SERVICES (PARS)
WHEREAS, City of Bakersfield (herein “City”) is currently participating in the Public Agencies Post-Retirement Health Care Plan Trust for the pre-funding of its retiree health benefits and other postemployment benefits other than pension benefits (“OPEB”); and
WHEREAS, City is currently participating in a Pension Rate Stabilization Trust for the purpose of pre -funding its CalPERS pension obligation for the exclusive purpose of making future contributions of City’s required pension contributions and any employer contributions in excess of such required contributions at the discretion of City; and
WHEREAS, PARS has made available the Public Agencies Post -Employment Benefits Trust (herein “Program”) for the purpose of pre-funding both pension obligations and/or OPEB obligations as specified in City’s plans, policies and/or applicable collective bargaining agreements; and
WHEREAS, 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 there under, and is a tax- exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, City can manage the pre-funding of its pension and OPEB obligations in a single trust under this Program, thereby gaining administrative and cost efficiencies; and
WHEREAS, City adopted Resolution No. 008-07 on January 17, 2007 adopting the PARS trust agreement, the Post -Retirement Health Care Master Plan document, and the Investment Guidelines for the trust assets; and
WHEREAS, City adopted Resolution No. 029-2022 on March 2, 2022 adopting a new PARS trust agreement which included the Pension Rate Stabilization Trust and updated Investment Guidelines for the trust assets; and
WHEREAS, the PARS investment advisor (formally Highmark Capital) was consolidated under Personal Financial Management (PFM) Asset Management.; and
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WHEREAS, PFM Asset Management is the current investment advisor under the PARS Trust agreement providing services to City.; and
WHEREAS, PFM Asset Management requires updated Investment Policy Statements from City for each Trust administrated by PARS that replace the Investment Guidelines previously approved by Council; and
WHEREAS, City desires approval of a new Investment Policy Statement for both the OPEB and Pension Trust Funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows:
1. The above recitals are true and correct and incorporated by reference herein.
2. The City Council hereby approves the updated Investment Policy Statements for assets held in the Trust as stated herein. ----------o0o----------
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on ____________________________, by the following vote:
AYES: COUNCIL MEMBER ARIAS, GONZALES, WEIR, SMITH, KOMAN, BASHIRTASH, KAUR NOES: COUNCIL MEMBER ____________________________________________________________________________ ABSTAIN: COUNCIL MEMBER ____________________________________________________________________________ ABSENT: COUNCIL MEMBER ____________________________________________________________________________ ________________________________
JULIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED _________________
By _________________________
KAREN GOH
Mayor
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
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By _________________________
VIRGINIA GENNARO
City Attorney
VG/pt
Attachments: Exhibit A – Investment Policy Statement – Pension Trust Exhibit B – Investment Policy Statement – OPEB Trust
S:\COUNCIL\Resos\24-25\PARS Combo Trust Investment Policy Reso.docx