Reso No.____
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, ADOPTING THE OPEB FUNDING POLICY FOR THE CITY OF RICHMOND OTHER POST EMPLOYMENT BENEFITS (“CITY OPEB” ) TRUST
AND RICHMOND POLICE OFFICERS ASSOCATION OTHER POST
EMPLOYMENT BENEFITS (“RPOA OPEB”) TRUST
WHEREAS, the City of Richmond (the “City”) is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; wastewater treatment facility; and the administration of recreational activities and cultural events; and
WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and
WHEREAS, the City has established and maintains certain employee benefit plans that provide post-employment benefits other than pensions (hereafter “other post- employment benefits” or “OPEBs”), such as, but not limited to, medical, dental, vision and prescription drug coverage, to OPEB participants who are eligible for coverage thereunder; and
WHEREAS, beginning in the fiscal year ending June 30, 2018, the City must recognize OPEB unfunded liabilities in its Comprehensive Annual Financial Report due to the implementation of Governmental Accounting Standards Board Statement Nos. 74 and 75; and
WHEREAS, as of June 2008, the City established an irrevocable OPEB trust (City OPEB) pursuant to Section 115 of the Internal Revenue Code for purposes of funding and pre-funding OPEBs provided under its retirement benefit plans with Public Agency Retirement Services (PARS); and
WHEREAS, as of June 2019, the City established an irrevocable RPOA OPEB trust with CalPERS pursuant to section 115 of the Internal Revenue Code for purposes of funding and pre-funding OPEBs provided under its retirement benefit plans due to a new Contract with RPOA effective January 17, 2017; and
WHEREAS, the City Manager is vested with the City and fiduciary responsibility for the administration, management and operation of the OPEB Trusts; and
WHEREAS, the City Manager has an obligation to provide reasonable assurance that the costs of benefits under the OPEB Trusts will be funded in an equitable and sustainable manner; and
Reso No.____
WHEREAS, a funding policy establishes guidelines for plan funding through actuarial valuations, regular contribution rates, contribution timing and actuarial assumptions; and
WHEREAS, the adoption of an OPEB Funding Policy is consistent with “best practices” and the Board’s fiduciary oversight of the OPEB Trust.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby adopts the OPEB Funding Policy for the City of Richmond Other Post-Employment Benefits Plans that is attached hereto as Exhibit A.
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Reso No.____
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held _______________, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.