CITY OF SAN MARINO
CITY COUNCIL AGENDA
Susan Jakubowski, Mayor www.cityofsanmarino.org
Steve Talt, Vice Mayor (626) 300-0700 Phone
Steven W. Huang, DDS, Council Member (626) 300-0709 Fax Gretchen Shepherd Romey, Council Member City Hall Council Chamber Ken Ude, Council Member 2200 Huntington Drive
Marcella Marlowe, Ph.D., City Manager San Marino, CA 91108
SPECIAL MEETING
OF THE SAN MARINO CITY COUNCIL
FRIDAY, FEBRUARY 25, 2022 AT 8:30 A.M.
SAN MARINO CENTER
1800 HUNTINGTON DRIVE
SAN MARINO, CALIFORNIA 91108
The City of San Marino appreciates your attendance. Citizens’ interest provides the Council with valuable information regarding issues of the community.
Regular Meetings are held on the 2nd Wednesday of every month at 6:00 p.m. Typically, Adjourned Meetings are held on the last Friday of every month at 8:30 a.m.
In compliance with the American Disabilities Act, any person with a disability who requires a reasonable modification or accommodation in order to participate in a meeting should contact the City Clerk via email at [email protected] or by phone at (626) 300-0705 prior to the meeting for assistance.
PURSUANT TO ASSEMBLY BILL 361 (AB 361)
Members of the City Council may teleconference into the meeting without noticing each teleconference location from which a member will be participating in a public meeting.
CORONAVIRUS DISEASE (COVID-19) ADVISORY
To protect both staff, our constituents, and elected officials, members of the public must follow the State and County Health Department’s current Health Officer Orders, which require wearing a mask indoors. Given the seriousness of COVID-19, you are encouraged to provide input electronically if you do not feel comfortable attending in person.
SPECIAL MEETING AGENDA – FEBRUARY 25, 2022 PAGE 2 OF 3
How to participate in the meeting from home:
1) Via Computer for Video Streaming:
Website: https://us02web.zoom.us/j/89702533880
Meeting ID: 897 0253 3880
2) Via Phone for Audio Only:
Phone Number: (669) 900-9128
Meeting ID: 897 0253 3880
3) Submit Public Comments via email:
Email: [email protected]
How to offer public comment from home:
1) Public comment will be accepted by email to [email protected] until 3:00 p.m. the day before the meeting, to be read by the City Clerk during public comment. Lengthy public comment may be summarized in the interest of time. Any comments received after 3:00 p.m. will be included in the public comment record but will not be read at the meeting. 2) Public comment will be accepted electronically via the zoom.us teleconference module during the meeting. Zoom comments will be taken after the in-person comments.
CALL TO ORDER
ROLL CALL: Council Member Huang, Council Member Shepherd Romey, Council Member Ude, Vice Mayor Talt, and Mayor Jakubowski
POSTING OF AGENDA
The special meeting agenda is posted 24 hours prior to each special meeting at the following locations: City Hall, 2200 Huntington Drive, the Crowell Public Library, 1890 Huntington Drive, and the Stoneman Building, 1560 Pasqualito Drive. The special meeting agenda is also posted on the City’s website: http://www.cityofsanmarino.org.
PUBLIC COMMENTS
The City welcomes public input. Members of the public may address the City Council by completing a public comment card and giving it to the City Clerk prior to the meeting. The Mayor reserves the right to place limits on duration of comments.
NEW BUSINESS
1. APPROVAL OF AN ANNUAL $100,000 CONTRIBUTION TO THE CALIFORNIA EMPLOYERS’ RETIREE BENEFIT TRUST (CERBT) FOR FISCAL YEARS 21-22, 22- 23, 23-24, AND 24-25
Recommendation: Staff recommends that the City Council approve annual contributions of $100,000 to the CERBT Section 115 Trust with CalPERS through Fiscal Year 2024-25, for a total of $400,000.
SPECIAL MEETING AGENDA – FEBRUARY 25, 2022 PAGE 3 OF 3
WRITTEN COMMUNICATIONS OR PUBLIC WRITINGS DISTRIBUTED
This is an opportunity to announce any written communications pertaining to the City received by members of the City Council. All public writings distributed by the City of San Marino to at least a majority of the City Council regarding any item on this agenda will be made available at the Public Counter at City Hall located at 2200 Huntington Drive, San Marino, California 91108, and will also be included in the public agenda packet that will available for review at the City Council meeting.
ADJOURNMENT
Dated: February 24, 2022 CHRISTINA BAKER
Posted: February 24, 2022 CITY CLERK
THIS PAGE LEFT BLANK INTENTIONALLY
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
• Efficient, Responsive, and Effective City Services
• Fiscally Responsible and Transparent City Government
BACKGROUND
During the February 26, 2021 City Council meeting, the City Council authorized staff to open the CERBT Section 115 Trust with CalPERS for prefunding Other Post-Employment Benefits (OPEB) and made a one-time contribution of $500,000. Since funding this program, it has performed better than expected, yielding an average return of 5.6%, compared to Local Agency Investment Fund (LAIF), which averaged 0.28% during that same period.
OPEB are benefits, other than pension, that employers provide to their retired employees.
OPEB liabilities arise from an employer’s commitment to contribute to retirees’ healthcare insurance premiums. Similar to many agencies, the City of San Marino participates in a medical health plan provided by CalPERS. This plan provides for retiree health benefits to any employee that retires from the City of San Marino and receives pension benefits. The City currently has 56 retirees that receive OPEB.
DISCUSSION
Staff discussed with the Finance Liaisons and the City Treasurer the continued funding of the CERBT program and all concurred with recommending an additional $100,000 annual contribution for the next four years until the Public Safety Parcel Tax expires.
TO: Mayor and City Council
FROM: Marcella Marlowe, Ph.D., City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: February 25, 2022
SUBJECT: APPROVAL OF AN ANNUAL $100,000 CONTRIBUTION TO THE CALIFORNIA EMPLOYERS’ RETIREE BENEFIT TRUST (CERBT)
FOR FISCAL YEARS 21-22, 22-23, 23-24, AND 24-25
Susan Jakubowski, Mayor
Steve Talt, Vice Mayor
Steven W. Huang, DDS, Council Member
Gretchen Shepherd Romey, Council Member
Ken Ude, Council Member
The benefits of the CERBT program and additional contributions are higher-yielding investments, reduced unfunded liabilities, improved financial reporting outcomes, and the benefit of compounding investment growth. CERBT funds can be withdrawn at the City’s discretion to pay the annual pay-as-you-go retiree medical benefits which are approximately $200k if cash or liquidity needs are required. The City has full control of the CERBT program.
The additional contribution will provide increased financial leverage yielding higher returns, with minimal risk, while maintaining the City’s reserve policy per the Citywide Financial Policies.
Staff recommends the City Council reevaluate the annual contribution to the CERBT program in FY 2025-26 depending upon the outcome of the renewal of the Public Safety Parcel Tax.
FISCAL IMPACT & PROCUREMENT REVIEW
As stated above, if the City Council approves the annual contribution of $100,000 to the CERBT Section 115 Trust, it will be paid out of the excess cash the City Council could transfer to the CIP fund. If the City decides to make additional contributions, it would be recorded as an asset to the City’s financials and it would improve the City’s overall OPEB liability. Future annual contributions into the CERBT will be included as part of the annual operating budgets.
Furthermore, the status and performance of the Section 115 Trust will be included with the Quarterly Status Report to City Council.
This report requires no procurement review.
LEGAL REVIEW
The City Attorney’s office has reviewed and approved as to legal form.
RECOMMENDATION
Staff recommends that the City Council approve annual contributions of $100,000 to the CERBT Section 115 Trust with CalPERS through Fiscal Year 2024-25, for a total of $400,000. If the Council concurs, the appropriate motion would be:
“I move to make annual contributions of $100,000 to the CERBT Section 115 Trust with CalPERS through Fiscal Year 2024-25, for a total of $400,000.”
ATTACHMENTS
None.