CITY COUNCIL STAFF REPORT
Meeting Date: May 02, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 RESCINDING AND REPLACING RESOLUTION NO. 26-22 AND APPROVING PARTICIPATION IN THE
PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST
PROGRAM, ESTABLISHING THE CITY OF PLEASANT HILL
PENSION RATE STABILIZATION PROGRAM FUNDING AND
WITHDRAWAL POLICY, AND AUTHORIZING THE CITY MANAGER
TO EXECUTE AN AGREEMENT WITH PUBLIC AGENCY
RETIREMENT SERVICES (PARS) TO ESTABLISH AND ADMINISTER
A SECTION 115 TRUST
SYNOPSIS
The proposed resolution rescinds and replaces Resolution No. 26-22, approves participation in the Public Agencies Post-Employment Benefits Trust Program, establishes the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy, and authorizes the City Manager to execute an agreement with Public Agency Retirement Services (PARS) to establish and administer a Section 115 Trust. The proposed resolution includes language not previously included in Resolution 26-22 but requested by US Bank.
DISCUSSION
Background
On April 18, 2022, the City Council adopted Resolution No. 26-22 authorizing the City Manager to execute an agreement with Public Agency Retirement Services (PARS) to establish a Section 115 Trust. PARS reviewed the resolution and requested that language required by US Bank be included. This language was in the PARS Services Trust Agreement (Exhibit 1) which was incorporated as part of the original resolution; however, US Bank requires this be included as part of the formal resolution. The following are the key updates to the resolution:
1. Specifically identifies the adoption of the PARS Public Agencies Post-Employment Benefits Trust (Item #1 in the revised resolution)
2. Specifically identifies the City Treasurer and/or the Finance Manager as the City’s Plan Administrators (Item #5 in the revised resolution)
Staff has confirmed that the proposed resolution meets the criteria requested by US Bank.
FISCAL IMPACT
Adoption of the proposed resolution and execution of the proposed agreement will result in a $1.0 million contribution to the PARS Section 115 Trust with a modification to the General Fund Reserve.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution rescinding and replacing Resolution No. 26-22, approving participation in the Public Agencies Post-Employment Benefits Trust Program, establishing the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy, and authorizing the City Manager to execute an agreement with Public Agency Retirement Services (PARS) to establish a Section 115 Trust as recommended by the Budget Committee.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - PARS Services and Trust Agreement
Exhibit 2 - Pension Rate Stabilization Program Funding and Withdrawal Policy Prepared by: Erick Cheung, Finance Manager
Approved by: June Catalano, City Manager