LIVE OAK CITY COUNCIL AGENDA – AUGUST 21, 2024
The Council may take up any agenda item at any time, regardless of the order listed. Action may be taken on any item on this agenda. Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection at City Hall, 9955 Live Oak Boulevard, Live Oak, during normal business hours. Such documents are also available on the City of Live Oak’s website at www.liveoakcity.org, subject to staff’s availability to post the documents before the meeting.
In compliance with the Americans with Disabilities Act, the meeting room is wheelchair accessible and disabled parking is available. If you have a disability and need disability-related modifications or accommodations to participate in this meeting, please contact the City Clerk’s office at (530) 695-2112 x107. Requests must be made at least 24 hours in advance.
• Remote Viewing:
o Members of the public can view a livestream of the meeting online at https://liveoakca.granicus.com/ViewPublisher.php?view_id=1. o Members of the public can access the Zoom webinar as follows:
▪ Join by Electronic Device:
https://us02web.zoom.us/j/82991305985
▪ Join by Phone:
1-669-900-6833 or 1-833-548-0282 (Toll Free)
Webinar ID: 829 9130 5985
• Public Comment: Members of the public can submit general public comments, as well as comment on specific agenda items in the following ways:
o Public Attendance: Members of the public who attend in person may make comments from the Council Chamber podium.
LIVE OAK
CITY COUNCIL
REGULAR MEETING AGENDA
AUGUST 21, 2024
6:00 PM
MEETING LOCATION
LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953
MEMBERS OF THE COUNCIL
ASHLEY HERNANDEZ, MAYOR
NANCY SANTANA, VICE MAYOR
JERAMY CHAPDELAINE, COUNCILMEMBER
LAKHVIR GHAG, COUNCILMEMBER
BOB WOTEN, COUNCILMEMBER
MARK SCOTT,
INTERIM CITY MANAGER
NICOLE ROSSER,
CITY ATTORNEY
1 LIVE OAK CITY COUNCIL AGENDA – AUGUST 21, 2024
o Live Remote Public Comment: Members of the public can submit a live remote public comment by:
▪ Joining the virtual Council meeting via the link below. When public comment is opened, raise your virtual hand and be called upon to speak for up to 3 minutes. https://us02web.zoom.us/j/82991305985
▪ Joining the virtual Council meeting by calling the phone number below. When public comment is opened, dial *9 to raise your hand and be called upon to speak for up to 3 minutes.
1-669-900-6833 or 1-833-548-0282 (Toll Free)
Webinar ID: 829 9130 5985
o Email Public Comment: Comments from the public on agenda items will be accepted until 1:00 pm on the date of the meeting, via email to the City Clerk at [email protected]. Comments will be distributed to Council prior to the meeting and attached to the minutes. Please note that emailed comments will NOT be read aloud by staff during the meeting. o eComment Feature: Comments from the public on agenda items will be accepted until 1:00 pm on the date of the meeting, via the eComment feature at
https://liveoakca.granicus.com/ViewPublisher.php?view_id=1. Comments will be distributed to Council prior to the meeting and attached to the minutes. Please note that eComments will NOT be read aloud by staff during the meeting.
2 LIVE OAK CITY COUNCIL AGENDA – AUGUST 21, 2024
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE AND INVOCATION
CORRECTIONS AND/OR CHANGES TO THE AGENDA BY CITY MANAGER ONLY
PRESENTATIONS AND RECOGNITIONS
PUBLIC COMMENT
Any person wishing to address the City Council on general jurisdictional matters or consent calendar items may do so at this time. If you are commenting on an agenda item, your comments will be heard at the time that item is scheduled for discussion. The City Council adopted a time limit of three minutes per person. The Brown Act does not allow for Council discussion of items not on the agenda. Councilmembers may only a) refer the matter to staff; b) ask for additional information; c) request a report back; or d) provide a limited factual response for items not listed on the agenda.
CONSENT ITEMS
Consent Calendar is passed by one motion with exceptions and separate votes as noted.
1. City Council Meeting Minutes
Recommendation: Approve the August 7, 2024, City Council Regular Meeting minutes. (Clarissa Menchaca, City Clerk)
BUSINESS ITEMS
2. Write-Off of Past Due Water and Sewer Accounts Collections Recommendation: Adopt resolution.
(James Ramsey, Finance Director)
DISCUSSION ITEMS
3. Discussion - Proposal by Public Agency Retirement Services (PARS) to Provide OPEB and Pension Trust Services
Recommendation: Consider the proposal from PARS and consider directing staff to bring forward a resolution on September 4, 2024, to join the PARS 115 Trust Fund Program. (Mark Scott, Interim City Manager)
4. Discussion and Possible Direction - Use of City Website Postings by the City Manager to Communicate City Council Policy Information
Recommendation: Discuss the use of City website postings to communicate City policy positions and provide any relevant direction to staff.
(Mark Scott, Interim City Manager)
5. Discussion - Status of City-owned Properties
Recommendation: Staff is providing this report to address a City Council inquiry. No action is recommended.
(Mark Scott, Interim City Manager)
ITEMS REMOVED FROM THE CONSENT AGENDA FOR COUNCIL CONSIDERATION AND ACTION 3 LIVE OAK CITY COUNCIL AGENDA – AUGUST 21, 2024
UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER A. Live Oak Festival Update
B. Election Update
COUNCILMEMBER REPORTS / COMMENTS / REQUESTS
CLOSED SESSION
After the Closed Session the City Council will leave the Council Chambers and the meeting will be adjourned by operation of law due to lack of a quorum. If there is any reportable Closed Session Action, a report will be made at the beginning of the next regular Council meeting. After the Closed Session Item descriptions are read by the City Attorney, all members of Council, applicable Consultants and Staff are asked to join the Closed Session meeting.
6. Public Employee Recruitment: City Manager/Interim City Manager, Pursuant to California Government Code Section 54957(b)
ADJOURNMENT
4 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: City Council Meeting Minutes
Contact Information: Clarissa Menchaca, City Clerk
Recommendation: Approve the August 7, 2024, City Council Regular Meeting minutes.
Attachments:
Minutes
5 LIVE OAK CITY COUNCIL MINUTES – AUGUST 7, 2024
CALL TO ORDER
Meeting called to order by Mayor Hernandez at Live Oak City Council Chambers, 9955 Live Oak Boulevard, Live Oak, CA at 6:12 pm.
ROLL CALL
Present: Councilmembers Woten, Chapdelaine, Ghag, Vice Mayor Santana, and Mayor Hernandez
PLEDGE OF ALLEGIANCE AND INVOCATION
Mayor Hernandez led the Pledge of Allegiance. Vice Mayor Santana delivered the invocation.
CORRECTIONS AND/OR CHANGES TO THE AGENDA BY CITY MANAGER ONLY There were no corrections and/or changes.
PRESENTATIONS AND RECOGNITIONS
There were no presentations and/or recognitions.
PUBLIC COMMENT
Public Comment was opened and closed without any speakers.
CONSENT ITEMS
Consent Calendar is passed by one motion with exceptions and separate votes as noted.
MOTION: APPROVE THE CONSENT AGENDA.
(MOTION: GHAG; SECOND: HERNANDEZ)
VOTE: MOTION PASSED UNANIMOUSLY
1. City Council Meeting Minutes
Clarissa Menchaca, City Clerk
Council action: July 17, 2024, City Council Regular Meeting minutes approved.
LIVE OAK
CITY COUNCIL
MINUTES
AUGUST 7, 2024
6:00 PM
MEETING LOCATION
LIVE OAK COUNCIL CHAMBERS
9955 LIVE OAK BOULEVARD
LIVE OAK, CALIFORNIA 95953
MEMBERS OF THE COUNCIL
ASHLEY HERNANDEZ, MAYOR
NANCY SANTANA, VICE MAYOR
JERAMY CHAPDELAINE, COUNCILMEMBER
LAKHVIR GHAG, COUNCILMEMBER
BOB WOTEN, COUNCILMEMBER
MARK SCOTT,
INTERIM CITY MANAGER
NICOLE ROSSER,
CITY ATTORNEY
6 LIVE OAK CITY COUNCIL MINUTES – AUGUST 7, 2024
BUSINESS ITEMS
2. Cross-Connection Control Service Agreement from Graham Backflow Services Jeff Nelson, Interim Public Works Director, and Tony Wright, Chief Plant Operator Jeff Nelson, Interim Public Works Director, provided a report for the Council.
John Graham, Graham Backflow Services, addressed the Council.
Public Comment was opened and closed without any speakers.
MOTION: 1) ACCEPT THE PROPOSAL; AND 2) AUTHORIZE THE CITY MANAGER TO SIGN THE PROPOSAL. (MOTION: SANTANA; SECOND: GHAG)
VOTE: MOTION PASSED UNANIMOUSLY
3. League of CA Cities Voting Delegates
Mark Scott, Interim City Manager
Mark Scott, Interim City Manager, provided a report for the Council.
Public Comment was opened and closed without any speakers.
MOTION: DESIGNATE MAYOR HERNANDEZ AS VOTING DELEGATE AND VICE MAYOR SANTANA AND COUNCILMEMBER GHAG AS ALTERNATES.
(MOTION: WOTEN; SECOND: SANTANA)
VOTE: MOTION PASSED UNANIMOUSLY
DISCUSSION ITEMS
4. Live Oak Dog Park
Luis Cibrian, Parks and Recreation Director
Luis Cibrian, Parks and Recreation Director, provided a report for the Council.
Public Comment was opened and closed without any speakers.
Council action: Directed staff to hold ribbon cutting ceremony on Thursday, August 22, 2024, at 6:00 pm.
ITEMS REMOVED FROM THE CONSENT AGENDA FOR COUNCIL CONSIDERATION AND ACTION There were no items removed from the Consent Agenda for Council consideration and action. 7 LIVE OAK CITY COUNCIL MINUTES – AUGUST 7, 2024
UPDATES AND ANNOUNCEMENTS FROM THE CITY ATTORNEY AND CITY MANAGER A. Scheduling a Public Agency Retirement Services (PARS) Presentation (OPEB Trust) Mark Scott, Interim City Manager, discussed scheduling a future presentation from OPEB Trust.
B. Water Rate Study
Mark Scott, Interim City Manager, provided an update on the water rate study and informed that staff will work on getting an RFP out to get proposals for the water rate study.
C. CFD Analysis
Mark Scott, Interim City Manager, touched on the necessity of performing a CFD analysis in the future.
COUNCILMEMBER COMMENTS
Councilmember Woten touched on monthly reports the Sutter Animal Services Authority will be providing to the City.
Councilmember Chapdelaine highlighted his attendance at the National Night Out event.
Councilmember Ghag discussed his attendance at the League of California Cities Sacramento Division meeting.
Councilmember Ghag informed of West Nile mosquitos located on the west side of Live Oak. Councilmember Ghag requested the meeting be closed in memory of Kelly Bumpus.
Vice Mayor Santana requested the City collaborate with Sutter County or Butte County to bring a low cost spay and neuter clinic to the City. Vice Mayor Santana inquired about establishing a fireworks escalation fee and requested the City initiate a local hero award recognition program.
CLOSED SESSION
5. Public Employee Recruitment: City Manager, Pursuant to California Government Code Section 54957(b)
ADJOURNMENT
Mayor Hernandez adjourned the meeting at 7:32 pm in memory of Kelly Bumpus.
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
8 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Write-off of Past Due Water and Sewer Accounts Collections Contact Information: James Ramsey, Finance Director
Background: Periodically, the City will evaluate past due balances and determine that there is no recourse to collect on those amounts based on the number of days outstanding. The accounts on the attached listing have been outstanding for a significant period of time and as such, management is requesting that the amounts be written off and sent to collections. If not collected by next year, there is a possibility that these may be collected next year via a lien on the property tax rolls. These amounts are outstanding from the period April 2024 to June 2024.
Fiscal Impacts: Total write-offs of $3,650.79 are split between water and sewer funds.
Recommendation: Adopt resolution.
Attachments:
Resolution
Exhibit A - Collections April - June 2024
9 1
Resolution No.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVE OAK AUTHORIZING PAST DUE ACCOUNT COLLECTION LOSS WRITE-OFF IN THE AMOUNT OF $3,650.79
WHEREAS, the City of Live Oak furnishes a water and sewer system for obtaining, conserving and disposing of water for public and private uses; and
WHEREAS, providing utility services for citizens includes the collection of monthly utility billings; and WHEREAS, the City of Live Oak makes every attempt to collect outstanding balances; and WHEREAS, Exhibit A provides a list of uncollectible accounts for the period ending March 31, 2024, and is made a part of this resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Live Oak hereby authorizes the Finance Director to write-off as collection losses the accounts receivables listed on Exhibit A totaling $3,650.79.
PASSED AND ADOPTED by the City Council of the City of Live Oak this 21st day of August, 2024, by the following vote:
AYES:
NOES:
ABSENT:
NOT VOTING:
APPROVED:
Ashley Hernandez, Mayor
ATTEST:
Clarissa Menchaca, City Clerk
10 Account Name Service Address Balance
01-0690-16 SCOTT/JORDAN OBRIEN/DUNN 2471 ARCHER AVE. 426.28 01-3180-11 JAVIER MEDINA GARCIA 2435 BIRCH ST. 55.66
03-0510-00 PETRA/GLORIA SAUCEDO/QUIROZ 10336 N ST. 473.55 03-2993-03 PATRICIA GUZMAN 3218 HEATHER DR. 422.68
04-0980-00 WARREN BREUSS 9831 R ST. 659.66
04-1200-05 LEONARD SCHWARTZ 2646 DATE ST 254.24
04-4957-05 FEATHER RIVER PROP MANAGEMENT 9397 COLLIER CT. 24.74 04-7280-08 JUAN RAMIREZ 2678 LAURELLEN ST. 530.35
04-8400-05 LEAH BISHOP 3171 COLE CT. 668.61
04-8401-08 JASON DELRIO 3475 MUSGRAVE AVE. 42.25
04-9340-04 GURPREET KAUR 9725 RICHMOND WAY 92.77
TOTAL 3,650.79
11 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Discussion - Proposal by Public Agency Retirement Services (PARS) to Provide OPEB and Pension Trust Services
Contact Information: Mark Scott, Interim City Manager
Background: The City has received a proposal from Public Agency Retirement Services (PARS), a private company that provides investment services to government agencies relating to trust funds established to support their OPEB and/or pension liabilities. PARS represents hundreds of agencies in this capacity, including 164 cities in California (including Yuba City, Oroville, Rocklin, West Sacramento, etc.) and 37 counties (including Sutter, Yuba, Placer, etc.).
A representative of PARS will be available on August 21, 2024 to present their proposal and address any questions. PARS represents that their 115 Trust Program offers investment returns that have surpassed those of the CalPERS CERBT 115 Trust Fund that the City participates in for its OPEB liability.
Attached is a copy of a proposal and evaluation provided by PARS relating to Live Oak.
Analysis: At present, the City has an existing OPEB 115 Trust Fund established with the CalPERS CERBT Trust Fund. The amount held in the fund is adequate because the City has very low liability for retiree medical benefits. The opportunity offered by PARS would relate to investment returns. PARS is also offering the opportunity to join their pension trust fund for future pension obligations.
Fiscal Impacts: The proposal suggests the opportunity to increase the City's performance for assets held in our OPEB 115 Trust Fund administered by CalPERS. PARS also represents that their program provides a City with greater control of their trust fund assets.
Recommendation: Consider the proposal from PARS and consider directing staff to bring forward a resolution on September 4, 2024, to join the PARS 115 Trust Fund Program.
Attachments:
12 PARS 115 Trust Fund Evaluation for City of Live Oak
13 City of live oak
PARS 115 Trust – OPEB Prefunding Program & Pension Rate Stabilization Program (PRSP) May 22, 2024
14 City of live oak 2
Contacts
Rachael Sanders, CEBS
Vice President, Consulting
(800) 540-6369 x121
[email protected]
Mitch Barker
Senior Consultant
(949) 310-4876
[email protected]
Andrew Brown, CFA
Director, Senior Portfolio Manager
(415) 796-5057
[email protected]
Kevin O’Rourke
Senior Municipal Consultant
(707) 249-5356
[email protected]
15 City of live oak 3
Pars 115 Trust Team
Trust Administrator & Consultant*
40 Years of Experience
(1984-2024)
2,000+
Plans under
Administration
1,000+
Public Agency
Clients
$8.0B
Assets under
Administration
Investment Manager
• Investment sub-advisor to trustee U.S. Bank
• Institutional asset management solutions
• Fixed income and multi asset portfolios
• Active and passive platform options
• Customized portfolios (with minimum asset level)
40+
Years of Investment
Experience
(As of 12/31/2023)
$229.8B *
Assets under Management
& Advisement
Trustee
• 5th largest commercial bank and one of the
nation’s largest trustees for Section 115 trusts
• Safeguard plan assets
• Oversight protection as plan fiduciary
• Custodian of assets
161
Years of Experience
(1863-2024)
$9.5T
Assets under
Administration
500+
115 Trust Clients
• Serves as record-keeper, consultant,
and central point of contact
• Sub-trust accounting
• Coordinates all agency services
• Monitors plan compliance
(IRS/GASB/State Government Code)
• Processes contributions/disbursements
• Hands-on, dedicated support teams
500 K+
Plan Participants
* Assets under management and advisement as of December 31, 2023, includes fixed income and multi asset class portfolios
Investment Management Services by PFM Asset Management as sub-advisor As of March 31, 2024
* See important information regarding PARS in the Disclaimer page at the end of the presentation. 16 City of live oak 4
Subaccounts
OPEB and Pension assets are
individually sub-accounted,
and can be divided by dept.,
bargaining group, or cost center
Assets in the PARS Section 115
Combination Trust can be used
to address unfunded liabilities.
Financial Stability
Allows separate investment
strategies for OPEB and
Pension subaccounts.
Flexible Investing
OPEB and Pension assets
aggregate and reach lower fees
on tiered schedule sooner –
saving money!
Anytime Access Economies-of-Scale
Trust funds are available
anytime; OPEB for OPEB
and Pension for Pension.
No set-up costs, no minimum
annual contribution amounts,
and no fees until assets are added.
No Set Up Cost or Minimums
Existing OPEB-Only Trust
OPEB
PARS Section 115 Combo Trust
PARS IRS-Approved Section 115 Trust
Assets from your existing
OPEB trust can be quickly and
securely transferred to the PARS
Section 115 Combination Trust,
which is capable of prefunding
both OPEB & Pension.
OPEB Pension prefund
either or both
General Fund
Transfer
GASB 75 GASB 68
Assets in both accounts are accounted
for separately per GASB rules.
$511 K*
$511 K
*City’s CERBT assets as of June 30, 2023
17 City of live oak 5
115 Trust – OPEB/PENSION Client list
COUNTIES (37)
Alpine
Amador
Calaveras
Colusa
Contra Costa
Glenn
Humboldt
Imperial
Inyo
Kern
Kings
Lake
Lassen
Madera
Mariposa
Mendocino
Merced
Mono
Monterey
Napa
Nevada
Placer
Plumas
Riverside
San Benito
San Joaquin
Shasta
Siskiyou
Solano
Sonoma
Sutter
Tehama
Trinity
Tulare
Tuolumne
Yolo
Yuba
CITIES & TOWNS (164)
Updated May 2024
Alameda
Alhambra
Anaheim
Angels Camp
Atherton
Atwater
Azusa
Bakersfield
Beaumont
Bell Gardens
Benicia
Bishop
Brea
Brisbane
Burlingame
Calabasas
Camarillo
Canyon Lake
Capitola
Carlsbad
Carmel
Chino Hills
Chula Vista
Claremont
Colma
Commerce
Corcoran
Coronado
Costa Mesa
Crescent City
Cudahy
Cupertino
Cypress
Daly City
Dana Point
Del Rey Oaks
Dinuba
Duarte
Dublin
El Cajon
El Centro
El Cerrito
El Segundo
Elk Grove
Emeryville
Escondido
Fairfax
Fairfield
Fort Bragg
Fountain Valley
Fullerton
Galt
Garden Grove
Gilroy
Glendale
Glendora
Goleta
Grand Terrace
Grass Valley
Half Moon Bay
Hawthorne
Healdsburg
Hemet
Hercules
Hermosa Beach
Huntington Beach
Indian Wells
Imperial Beach
Indio
Ione
La Habra
Lakeport
La Mesa
La Quinta
Laguna Niguel
Lake Forest
Lakewood
Lemon Grove
Livermore
Lodi
Los Alamitos
Los Altos Hills
Mammoth Lakes
Manhattan Beach
Merced
Modesto
Monrovia
Monterey
Moreno Valley
Morgan Hill
Morro Bay
Murrieta
Napa
National City
Newport Beach
Norco
Novato
Oakley
Orinda
Oroville
Pacifica
Palmdale
Palo Alto
Pasadena
Patterson
Perris
Pico Rivera
Piedmont
Pinole
Pittsburg
Pleasant Hill
Pleasanton
Pomona
Port Hueneme
Rancho Cucamonga
Redding
Redwood City
Rialto
Richmond
Rio Vista
Ripon
Riverside
Rocklin
Rohnert Park
Rolling Hills
Rosemead
Ross
San Anselmo
San Jacinto
San Leandro
San Pablo
San Ramon
Sanger
Santa Ana
Santa Barbara
Santa Clara
Santa Clarita
Sausalito
Seaside
Selma
Solana Beach
South El Monte
Stanton
Sutter Creek
Taft
Temecula
Temple City
Thousand Oaks
Tiburon
Tustin
Twentynine Palms
Union City
Vallejo
Villa Park
Walnut
West Covina
West Sacramento
Westminster
Winters
Woodland
Woodside
Yountville
Yuba City
Yucca Valley
18 City of live oak 6
115 Trust – OPEB/PENSION Client list
Agoura Hills/Calabasas Community Center Authority
Alameda County Mosquito Abatement District
Alpine Fire Protection District
Beach Cities Health District
Bighorn-Desert View Water Agency
Bodega Bay Public Utilities District
Calaveras County Water District
California Intergovernmental Risk Authority
California Joint Powers Insurance Authority
California Joint Powers Risk Management Authority
Central Contra Costa Sanitary District
Central Contra Costa Transit Authority
Coastline Regional Occupational Program
Coastside Fire Protection District
Colusa Mosquito Abatement District
Contra Costa County EEs' Retirement Association
Contra Costa Mosquito and Vector Control District
Crestline Village Water District
Delta Diablo
Desert Recreation District
East Bay Regional Park District
East Orange County Water District
Eastern Sierra Community Services District
Eastern Sierra Transit Authority
El Dorado Hills County Water (& Fire) District
Fallbrook Public Utility District
Feather River Air Quality Management District
Fresno Irrigation District
Fresno Metropolitan Flood Control District
Glenn-Colusa Irrigation District
Goleta Cemetery District
Goleta West Sanitary District
Great Basin Unified Air Pollution Control District
Greater Vallejo Recreation District
Hayward Area Recreation & Park District
Hesperia Fire Protection District
Housing Authority of the County of Butte
Housing Authority of the County of Contra Costa
Housing Authority of the County of San Bernardino
Housing Authority of the County of Santa Cruz
Humboldt Bay Fire Joint Powers Authority
Humboldt Bay Municipal Water District
Humboldt No. 1 Fire Protection District
Menlo Park Fire Protection District
Mesa Water District
Metropolitan Transportation Commission
Midpeninsula Regional Open Space District
Mid-Peninsula Water District
Mojave Desert Air Quality Management District
Montecito Fire Protection District
Monterey Bay Unified Air Pollution Control District
Monterey County Mosquito Abatement District
Monterey One Water
Moraga-Orinda Fire Protection District
Mosquito & Vector Mgmt. Dist. of Santa Barbara Co.
Municipal Pooling Authority
Municipal Water District of Orange County
Napa County Mosquito Abatement District
Nevada County Consolidated Fire District
North Central Fire Protection District
North Coast Air Quality Management District
North County Fire Protection District
Novato Sanitary District
Orange County Fire Authority
Orange County LAFCO
Orange County Mosquito and Vector Control District
Orange County Sanitation District
Orange County Water District
Orchard Dale Water District
Pebble Beach Community Services District
Placentia Library District
Placer County Air Pollution Control District
Placer County Resource Conservation District
Rancho Cucamonga Fire Protection District
Rancho Murieta Community Services District
Redwood Empire Municipal Insurance Fund (REMIF)
Regional Housing Authority
Rowland Water District
Sacramento Area Flood Control Agency
San Andreas Sanitary District
San Elijo Joint Powers Authority
San Mateo Consolidated Fire Department
San Mateo Co. Mosquito & Vector Control District
Santa Barbara County Law Library
Santa Cruz Regional 9-1-1 JPA
Santa Fe Irrigation District
Sewer Authority Mid-Coastside
Shasta Valley Cemetery District
South Coast Water District
South Montebello Irrigation District
South Orange County Wastewater Authority
South Placer Fire Protection District
Southern Marin Fire Protection District
State Water Contractors
Superior Court of CA, County of Imperial
Superior Court of CA, County of Inyo
Superior Court of CA, County of Kern
Superior Court of CA, County of Marin
Superior Court of CA, County of Merced
Superior Court of CA, County of Orange
Superior Court of CA, County of San Mateo
Superior Court of CA, County of Shasta
Superior Court of CA, County of Siskiyou
Superior Court of CA, County of Sonoma
Sweetwater Springs Water District
Tahoe City Public Utility District
Three Valleys Municipal Water District
Twentynine Palms Water District
Union Sanitary District
Ventura Regional Sanitation District
Walnut Valley Water District
West Bay Sanitary District
West County Wastewater District
Western Riverside Council of Governments
Yolo-Solano Air Quality Management District
Yorba Linda Water District
Zone 7 Water Agency
SPECIAL DISTRICTS (117)
Updated May 2024
19 City of live oak 7
115 Trust – OPEB/PENSION Client list
SCHOOL DISTRICTS (64)
Alisal Union School District
Alta Loma School District
Auburn Union School District
Bass Lake Joint Union ESD
Bellflower Unified School District
Beverly Hills Unified School District
Brea Olinda Unified School District
Calistoga Joint Unified School District
Campbell Union High School District
Compton Unified School District
Corning Union Elementary SD
Coronado Unified School District
Cotati-Rohnert Park USD
Dry Creek Joint Elementary SD
El Dorado Union High School District
El Monte Union High School District
Folsom Cordova USD
Fontana Unified School District
Fowler Unified School District
Hermosa Beach City School District
Hesperia Unified School District
Hughes-Elizabeth Lakes Union ESD
John Swett Unified School District
Jurupa Unified School District
Lakeside Union SD (San Diego)
Le Grand Union High SD
Lemon Grove School District
Lindsay Unified School District
Madera Unified School District
Manteca Unified School District
Moreno Valley Unified School District
Napa Valley Unified School District
Natomas Unified School District
Newport-Mesa Unified School District
Ocean View School District (Ventura)
Ontario-Montclair School District
Orcutt Union School District
Palmdale School District
Palos Verdes Peninsula USD
Paramount Unified School District
Placer Union High School District
Porterville Unified School District
Poway Unified School District
Red Bluff Joint Union High SD
Red Bluff Union ESD
River Delta Unified School District
Riverdale Joint Unified School District
Roseville Joint Union High SD
Salinas City ESD
San Bruno Park School District
San Dieguito Union High SD
San Marino Unified School District
Santa Barbara Unified School District
Santa Rita Union School District
Savanna School District
South Bay Union School District
South Pasadena USD
Taft Union High School District
Trona Joint Unified School District
Upland Unified School District
Visalia Unified School District
Westside Union School District
Whittier City School District
Wilsona School District
Allan Hancock Community College District
Citrus Community College District
Coast Community College District
Grossmont-Cuyamaca Community College District
Hartnell Community College District
Imperial Community College District
Marin Community College District
Monterey Peninsula Community College District
Palo Verde Community College District
Pasadena Area Community College District
Rancho Santiago Community College District
Rio Hondo Community College District
San Bernardino Community College District
San Luis Obispo Coounty CCD (Cuesta)
Shasta-Trinity-Tehama Joint CCD
State Center Community College District
Victor Valley Community College District
West Valley-Mission Community College District
Yosemite Community College District
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Updated May 2024
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20 City of live oak 8
Data from 2023 ACFR
Measurement Date: June 30, 2022
Prefunding
Discount Rate: 6.25%
CERBT Strategy 1
Total OPEB Liability (TOL) $389,367
Fiduciary Net Position $480,158
Net OPEB Liability (NOL) ($90,791)
Funded Ratio (%) 123.3%
Service Cost
for FY 2021-22 $25,215
Annual Benefit Payments
(Pay-as-you-Go) for FY 2021-22 $14,711
OPEB Actuarial Results
Rule of thumb: For every one percent increase in the discount rate, the unfunded liability is lowered by 10-12%. *Fiduciary Net Position is $510,847 as of June 30, 2023 - approximately 131.2% funded (source: CalPERS CERBT “Schedule of Changes in Fiduciary Net Position by Employer” audit report) 21 City of live oak 9
Net Performance Fee Analysis
Over 1 Year Over 3 Years Over 5 Years Over 10 Years 1 1
P A R S P A R S P A R S P A R S
Capital Appreciation Capital Appreciation Capital Appreciation Capital Appreciation (25% Fixed Income/Cash) 17.32% (25% Fixed Income/Cash) 4.22% (25% Fixed Income/Cash) 9.71% (25% Fixed Income/Cash) 7.23% minus weighted PARS
administration fee (-) 0.25% minus weighted PARS administration fee (-) 0.25% minus weighted PARS administration fee (-) 0.25% minus weighted PARS administration fee (-) 0.25% minus weighted
investment management
fee
(-) 0.35% minus weighted
investment management
fee
(-) 0.35% minus weighted
investment management
fee
(-) 0.35% minus weighted
investment management
fee
(-) 0.35%
1-Year Net Return 16.72% 3-Year Net Return 3.62% 5-Year Net Return 9.11% 10-Year Net Return 6.63%
C A L P E R S C E R B T C A L P E R S C E R B T C A L P E R S C E R B T C A L P E R S C E R B T Strategy 1
(28% Fixed Income/Cash) 14.28%
Strategy 1
(28% Fixed Income/Cash) 2.23%
Strategy 1
(28% Fixed Income/Cash) 8.08%
Strategy 1
(28% Fixed Income/Cash) 5.91%
minus fees (-) 0.10% minus fees (-) 0.08% minus fees (-) 0.09% minus fees (-) 0.10% 1-Year Net Return 14.18% 3-Year Net Return 2.15% 5-Year Net Return 7.99% 10-Year Net Return 5.81% As of December 31, 2023
Subject to change due to rebalancing; Past performance does not guarantee future results.
The advisor to the PARS portfolios is U.S. Bank, and PFM Asset Management serves as sub-advisor to U.S. Bank to manage these portfolios. Prior to January 1st, 2024, HighMark Capital Management, Inc. (“HighMark”) acted as sub-advisor to the PARS portfolios. HighMark, including clients and investment personnel, was consolidated into its affiliate, PFM Asset Management LLC (PFMAM) on January 1st, 2024.
Please see important additional disclosures to the PARS portfolios included in the individual strategy fact sheets at the end of this presentation. 22 City of live oak 10
PARS Pension Rate
Stabilization Program
for prefunding pension obligations
The
23 City of live oak 11
• Since 2015, GASB 68
has required disclosing
Net Pension Liability on financial
statements as a line item on the
balance sheet
• Before the concept of pension
prefunding, the only way to
reduce retirement system
unfunded liabilities was to send
additional contributions in
excess of annual required
employer contributions
• Pension trust prefunding
assets can be transferred to
the retirement system at the
Agency’s direction, which can
help offset future rate increases
(i.e., pension rate stabilization).
Background – Pension
CalPERS Changes
CalPERS has announced changes directly
affecting unfunded liability amounts and
employer contributions:
Lowering of Discount Rate 1
CalPERS lowered the
discount rate from 7.0% to 6.8%.
The impact is reflected in the
June 30, 2021 valuation reports.
Shortened Amortization Period 2
New actuarial liabilities are
amortized over 20 years instead of
30, increasing required annual
employer contribution amounts*
7.0%
6.8%
30 years
20 years
2 5-year ramp up in payments beginning
FY 15-16 with full impact in FY 19/20.
1 Contributions from policy changes beginning
FY 23-24.
24 City of live oak 12
Miscellaneous Valuation as of
June 30, 2021
Valuation as of
June 30, 2022
Change
Actuarial Liability $8.6 M $9.4 M 9.5% ↑
Assets $7.3 M $6.9 M 5.1% ↓
Unfunded Liability $1.3 M $2.4 M 94.2% ↑
Funded Ratio 85.3% 73.9% 13.3% ↓
Employer Contribution Amount $0.3 M $0.3 M 5.1% ↑
(FY 22-23) (FY 23-24)
Employer Contribution Amount – Projected *
---
$0.5 M 46.9% ↑
(FY 29-30)
Pension Funding Status
As of June 30, 2022, City of Live Oak’s CalPERS pension plan is funded as follows:
* Data through 2029-30 from Agency’s latest CalPERS actuarial valuation. 25 City of live oak 13
Why Prefund Pension Obligations?
Complete Local Control over Assets
City has complete control over assets, including contributions, disbursements and the timing, amount, and risk tolerance level of investments
1. Pension Rate Stabilization
Assets can be transferred to the retirement system at the City’s direction, potentially reducing/eliminating large fluctuations in employer contribution amounts
2. Rainy Day Fund
Emergency source of funds when employer revenues are strained in difficult budgetary or economic times
3. Diversification
Allows for investment flexibility and offers the potential for assets to earn greater returns than the General Fund; spread the risk vs. sending additional money to CalPERS
4. 26
City of live oak 14
1. Input Phase
– Target discount rate
– Risk tolerance
– Investment philosophy
– Asset allocation
– Timing on use of funds
2. Model Portfolios 3. Dedicated Portfolio Manager/
Investment Specialist
– Makes recommendation
– Fiduciary responsibility
– Investment policy statement
– Periodic reviews
– Cell phone access
Strategy Equity 10-YR Returns*
Capital Appreciation 65-85% 7.23%
Balanced 50-70% 6.21%
Moderate 40-60% 5.55%
Moderately Conservative 20-40% 4.09%
Conservative 5-20% 3.00%
vs. LAIF 0% 1.26%**
Simple Investment Approach
*10-Year Active Portfolio annualized returns as of December 31, 2023 (Gross of Investment Management Fees, but Net of Embedded Fund Fees). Please see complete Investment Strategy Sheets (enclosed) for more information. **Avg. LAIF apportionment rate (released quarterly) over the 10-Year period ending December 31, 2023 The advisor to the PARS portfolios is U.S. Bank, and PFM Asset Management serves as sub-advisor to U.S. Bank to manage these portfolios. Prior to January 1st, 2024 HighMark Capital Management, Inc. (“HighMark”) acted as sub-advisor to the PARS portfolios. HighMark, including clients and investment personnel, was consolidated into its affiliate, PFM Asset Management LLC (PFMAM) on January 1st, 2024.
Please see important additional disclosures to the PARS portfolios included in the individual strategy fact sheets at the end of this presentation. 27 City of live oak 15
Plan Set-Up Fee: Ongoing Fees Paid to U.S. Bank:
None 0.35% for assets under $5 million
0.25% for assets $5-10 million
0.20% for assets $10-15 million
0.15% for assets $15-50 million
0.10% for assets over $50 million
Program Fees
Plan Set-Up Fee: Ongoing Fees:
None 0.25% for assets $0-10 million
0.20% for assets $10-15 million
0.15% for assets $15-50 million
0.10% for assets over $50 million
* PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation. ** Subject to change due to rebalancing. Additional information on PFMAM and a description of its fees are described in its ADV which is also available on the SEC’s website at www.adviserinfo.sec.gov. Fees charged by U.S. Bank National Association (“U.S. Bank”) , as Discretionary Trustee/Investment Management fees are based on individual agency assets. U.S Bank has retained its affiliate, PFM Asset Management LLC (“PFMAM”), an SEC Registered Investment Advisor, as its sub-advisor to provide investment management services. U.S. Bank compensates PFMAM for these services from it’s own fees, as detailed above. Additional information about PFMAM is described in its ADV, available at https://adviserinfo.sec.gov Trust Administration/Consulting Fees *
Discretionary Trustee/Investment Management Fees **
As subadvisor to U.S. Bank
28 City of live oak 16
Why take this step?
1. Smooths out pension rate volatility
2. Offers hedge against Inflation
3. Provides a fiscal tool in your financial toolbox
4. Prepares today for tomorrow’s pension realities
Questions?
29 Disclaimer
Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S.
Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
Public Agency Retirement Services (“PARS”) serves as the trust administrator to the Public Agencies Post-Employment Benefits Trust, Public Agencies Post-Retirement Health Care Plan Trust, and the Public Agency Retirement System Trust (the “Trusts”). U.S. Bank National Association (“U.S. Bank”) serves as the discretionary trustee to the Trusts. In its capacity as discretionary trustee, U.S. Bank delegates the investment management of the Trusts to PFM Asset Management LLC (“PFMAM”) through a subadvisory agreement. PFMAM is an investment adviser registered with the U.S.
Securities and Exchange Commission (“SEC”) and an indirect subsidiary of U.S. Bank.
For more information regarding PFMAM’s services please visit www.pfmam.com.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Disclaimer
30 MEMORANDUM
COUNTY EXECUTIVE OFFICE
County of Placer
TO: Honorable Board of Supervisors DATE: August 29, 2023 FROM: Placer County Finance Committee
BY: Daniel Chatigny, Deputy County Executive Officer
SUBJECT: Transfer of Other Post Employment Benefits Assets
ACTION REQUESTED
1. Approve a transfer of $100,000,000 of Other Post-Employment Benefit (OPEB) assets from the California Employers’ Retiree Benefit Trust (CERBT) to the Public Agency Retirement Services (PARS) as allowed by the Placer County Pension and Other PostEmployment Benefit (OPEB) Funding Policy.
2. Authorize the County Executive Officer, or designee, to execute all documents necessary to direct Pension and OPEB funds between any authorized Section 115 trusts, and further authorize the County Auditor-Controller and County Treasurer-Tax Collector to take the necessary actions to facilitate the accounting and transfer of funds.
BACKGROUND
On December 11, 2007 the Board of Supervisors executed an agreement with the Board of Administration of the California Public Employee’s Retirement System (CalPERS) to participate in CalPERS’ “California Employer’s Retiree Benefit Trust Program (CERBT).” Consistent with Section 115 of Internal Revenue Code and Governmental Accounting Standards Board (GASB) Statements No. 45 and 75, Placer County established its Employer Prefunding Account. With the initial deposit of funds in the CERBT, along with additional annual County contributions and related investment earnings, the County reached a total amount of $530,442,508 as of March 31, 2021. On June 28, 2022 the Board of Supervisors approved a revision to the Placer County Pension and Other Post-Employment Benefit (OPEB) Funding Policy to allow for the flexibility to invest OPEB assets into any IRS Section 115 and GASB 75 compliant trust.
In July of 2022 the County executed an amendment to an agreement with PARS to establish an account for OPEB assets along with the already established Pension Trust Fund. The County followed up with a transfer of $225 million of assets from CERBT to PARS. After the initial transfer of $225 million, the PARS Plan balance was $233.4 million as of March 31, 2023.
DISCUSSION
Members of the County Finance Committee including the County Executive Officer, the Treasurer-Tax Collector, and the Auditor-Controller received a presentation on our postemployment investments from PARS on May 11, 2023. 365
31 Honorable Board of Supervisors
August 29, 2023
Transfer of Other Post Employment Benefits Assets
The report showed that the investments with PARS outperformed the investments in CERBT, net of all costs, by nearly 2.5% over the last three years. In addition to the investment performance, the customer service provided by PARS to the County has been outstanding. The Finance Committee unanimously recommends moving another $100 million of assets from the CERBT to the PARS OPEB Plan to continue to provide the County with the most effective strategy to provide long-term post-employment benefits to County employees.
FISCAL IMPACT
A transfer of assets between OPEB trust plans does not have an immediate fiscal impact on the County’s budget or fund balances. However, the transfer of assets, if approved, will provide long-term fiscal benefits for the County as it continues to make strategic investments to address long-term liabilities.
ATTACHMENTS
None.
366
32 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Discussion and Possible Direction - Use of City Website Postings by the City Manager to Communicate City Council Policy Information
Contact Information: Mark Scott, Interim City Manager
Background: The City Council asked staff to consider providing the community with website content that would address City issues that are not adequately communicated through social media or other communication networks. For example, there was concern that the community was not always receiving information accurately as it relates to the recent City budget adoption.
As Interim City Manager, I do not feel it is wise to engage point/counterpoint with people on social media platforms, but I do agree that a City has an obligation to provide is citizenry with a fair, candid explanation of its policy directions and the analysis that leads to those directions.
However, due to legal restrictions on the use of social media and mailed information material, there are limitations on City Council members in their collective ability to communicate to the public. These limitations are exacerbated during election periods.
It is fully legal, however, for the City Manager or staff to post information on the City website that is directed by the City Council as a body. For that reason, I have prepared some sample Q&A type responses to recently received questions about the City's financial situation. Staff seeks City Council discussion and possible direction as it relates to using this approach to communicating with the public.
Fiscal Impacts: Communicating on the website has minimal cost except for staff time.
Recommendation: Discuss the use of City website postings to communicate City policy positions and provide any relevant direction to staff.
33 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Discussion - Status of City-owned Properties
Contact Information: Mark Scott, Interim City Manager
Background: At the last City Council meeting, the Council asked staff for information concerning the status and use of the 57 City-owned properties. 34 Analysis: Staff located a binder that provides an inventory of all 57 of the properties owned by the City. The binder was prepared in 2018 and provides location and assessor parcel maps for each parcel. In some cases, it provides deed information. The binder does not included information on how the property was acquired, nor does it identify any deed restrictions or covenants. Staff will bring a copy of the binder to the meeting, as it is too cumbersome to copy.
For the most part, the properties fall into two categories:
* Properties that have clear City purpose (parks, government buildings, trails, stormwater retention, water wells, other City facilities, public parking) * Slivers of property acquired for roadway right-of-way purposes There are a few parcels that have no current identifiable use. These parcels were obtained from Caltrans when they abandoned a once-proposed bypass that would have looped Highway 99 to the west of the existing Highway 99 route. When the bypass was abandoned, these properties were offered to the City, which did acquire them. These properties include the two large parcels on West Pennington, six contiguous properties east of Richard, and a single parcel at the extreme southern edge of the City on Larkin.
The City has no immediate plans for these properties, although there has been discussion of using the large parcel north of Pennington to someday relocate City facilities, such as the City Hall. In turn, that could free up a commercially viable property on Live Oak Boulevard. At present, the lot on Pennington is leased to the Sutter-Buttes Nursery, which is seeking a lease extension.
While the City has some parcels that have potential sale value, there is no reason to surplus any of the properties at this time. Any property that is surplussed in California is required to go through a State Surplus Property Act process before being sold. Staff does not recommend any such action.
Fiscal Impacts: There is no cost involved in presenting this information report.
Recommendation: Staff is providing this report to address a City Council inquiry. No action is recommended.
35 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Live Oak Festival Update
36 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Election Update
37 City of Live Oak
Report to City Council
Meeting Date: August 21, 2024
Title: Public Employee Recruitment: City Manager/Interim City Manager, Pursuant to California Government Code Section 54957(b)
38