RESOLUTION NO. 2023-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA APPROVING THE ADOPTION OF THE
MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST
ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC
A. Recitals
(i). WHEREAS, Shuster Advisory Group, LLC ("Shuster") has made available the Multiple Employer OPEB/Pension 115 Trust ("Trust") for the purpose of pre -funding pension obligations and/or OPEB obligations; and
(ii). WHEREAS, the City of Placentia ("City") is eligible to participate in 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 the Trust is a tax-exempt trust under the relevant statutory provisions of the State of California; and
(iii). WHEREAS, Alta Trust Company satisfies the Trustee requirements under IRC section 115; and
(iv). WHEREAS, all qualified assets currently held in the City's Public Agency Retirement Services ("PARS") Public Agencies Post -Employment Benefits Trust are irrevocably dedicated to prefunding the City's OPEB and pension obligations; and (v). WHEREAS, the City's adoption and operation of the Trust has no effect on any current or former employee's entitlement to post -employment benefits; and (vi). WHEREAS, the terms and conditions of post -employment benefit entitlement, if any, are governed by contracts separate from and independent of the Trust; and
(vii). WHEREAS, the City Council has prudently set aside funds for the OPEB liability and pre -funding pension obligations; and
(viii). WHEREAS, the City's funding of the Trust does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and
(ix). WHEREAS, the City reserves the right to make contributions, if any, to the Trust.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
1. The City Council hereby adopts the Shuster Multiple Employer OPEB/Pension 115 Trust, effective July 25th, 2023; and
2. The City Council hereby authorizes the termination of the City of Placentia's participation in the PARS Public Agencies Post -Employment Benefits Trust Program, all services, administration, and investment contracts with PARS and US Bank, N.A. ("U.S. Bank"), including the services of U.S. Bank as Trustee; and
3. The City Council hereby authorizes the appointment of Alta Trust Company as successor Trustee and Charles Schwab Trust Bank as custodian of the assets. The transfer of assets is contingent upon the acceptance of the successor Trustee and custodian; and
4. The City Council certifies that the successor trust satisfies the requirements of Section 115 of the Internal Revenue Code and that all assets held by that trust shall qualify as "plan assets" that are irrevocably dedicated to the prefunding of OPEB and pension obligations; and
5. The City Council hereby authorizes the liquidation and transfer of all assets to Charles Schwab Trust Bank, as soon as administratively practicable; and
6. Upon the complete transfer of assets on or around October 31, 2023, PARS is removed as trust administrator and U.S. Bank is removed as Trustee; and
7. The City Council hereby appoints the position of City Administrator, or his/her successor or his/her designee as the City's Administrator for the Trust; and
8. The City's 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 maintain the City's participation in the Trust and to maintain compliance with any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City's Trust.
APPROVED AND ADOPTED this 25th day of July, 2023.
ATTEST: Ward L. Smith, Mayor
Robert S. McKinnell, City Clerk
RESO. NO. 2023-67 -2-
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 25th day of July, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
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