RESOLUTION NO. 2022-05-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER OPEB/PENSION SECTION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC AND APPROVING INVESTMENT AUTHORITY UNDER THE INVESTMENT POLICY STATEMENT WHEREAS, the Governmental Accounting Standards Board (GASB) revised its accounting rules, referred to as GASB 75, to require local governments to recognize, cost and disclose future obligations for providing Other Post-Employment Benefits (OPEB); and WHEREAS, the City of Signal Hill provides OPEB in the form of retiree health care coverage; and WHEREAS, the City established an OPEB Investment Trust and an OPEB Investment Trust Policy Statement (Policy Statement) that was adopted by the City Council in 2009; and WHEREAS, the City of Signal Hill 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 thereunder, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and WHEREAS, the City’s adoption and operation of the OPEB Investment Trust has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the OPEB Investment Trust; and WHEREAS, the City Council has prudently set aside funds for the OPEB liability and pre-funding pension obligations; and WHEREAS, the City’s funding of the OPEB Investment Trust does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the City reserves the right to make contributions, if any, to the OPEB Investment Trust; and WHEREAS, Shuster Advisory Group, LLC has made available the Multiple Employer OPEB/Pension Section 115 Trust for the purpose of pre-funding pension obligations and/or OPEB obligations; and WHEREAS, Shuster Advisory Group, LLC has set fourth an Investment Policy Statement for the OPEB/Pension 115 Trust to ensure fiduciaries involved in the plan take prudent and careful action to maintain the investment portfolios, goals and objective while maintaining liquidity and risk tolerance.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Signal Hill, California, hereby adopts the Shuster Multiple Employer OPEB/Pension Section 115 Trust, effective May 10, 2022 and finds as follows:
Section 1. The City Council hereby authorizes the termination of the City of Signal Hill’s Public Financial Management Asset Management (PFMAM) Section 115 Trust – OPEB Prefunding Program and Pension Rate Stabilization Program, all services, administration, and investment contracts with PFMAM and US Bank, N.A.
Section 2. The City Council hereby appoints the City Manager, or his/her successor or his/her designee as the City’s Administrator for the Trust.
Section 3. 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 of 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.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Signal Hill, California, on this 10th day of May, 2022. ________________________________ KEIR JONES
MAYOR
ATTEST:
____________________________
CARMEN R. BROOKS
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SIGNAL HILL )
I, CARMEN R. BROOKS, City Clerk of the City of Signal Hill, California, do hereby certify that Resolution No. 2022-05-XXXX was adopted by the City Council of the City of Signal Hill, California, at a regular meeting held on the 10th day of May, 2022, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
CARMEN R. BROOKS
CITY CLERK
Resolution No. 2022-05-XXXX
May 10, 2022
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