RES 11428 - Laserfiche WebLink

RESOLUTION NO. 11 -428 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON PROVIDING FOR: (1) ADOPTION OF THE CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST PROGRAM (CERBT) FOR PRE - FUNDING THE CITY'S LONG- TERM OBLIGATION FOR PROVIDING RETIREE HEALTH BENEFITS FOR ELIGIBLE EMPLOYEES (2) APPROVAL OF ASSET TRANSFER TO THE CERBT AND (3) DESIGNATING THE CITY MANAGER WITH THE AUTHORITY TO REQUEST AND RECEIVE DISBURSEMENTS FROM THE CERBT FOR PAYMENT OF FUTURE RETIREE HEALTH BENEFIT OBLIGATIONS WHEREAS, the City of Pleasanton provides post - employment medical benefits to eligible retirees and their eligible dependents and survivors; and WHEREAS, the City Council wishes to establish a trust to pre -fund these benefits; and WHEREAS, California Public Employees Retirement System (CaIPERS) has the California Employer's Retiree Benefit Trust Program (CERBT) for pre- funding the City's long- term obligation for retiree health benefits and staff considered several possible alternatives and believes that the CERBT best meets the City's needs for managing this long -term liability; and WHEREAS, the City Council intends that the CERBT qualify as a trust for purposes of Governmental Accounting Standards Board ( "GASB ") Statement 43, pursuant to paragraph 4 of GASB 43, so that amounts held under the CERBT will be treated as offsetting the unfunded OPEB liability that must be reported on the City's financial statements under GASB 45; and WHEREAS, the City Council further intends that contributions and transfers to, and earnings under, the CERBT be exempt from taxes to the maximum extent permitted by law; and WHEREAS, the City Council wishes to begin pre- funding the City's OPEB liability by transferring an amount not to exceed $9.8 million from that account to the CERBT. NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, AND DETERMINE AND ORDER THE FOLLOWING: SECTION 1. That the City Council hereby adopts the CERBT, substantially in the form attached as Exhibit A: • contributions to the trust will be irrevocable, and assets under the CERBT may not be diverted for any purpose other than funding the City's OPEB liability, unless and until all liabilities associated with those benefits are satisfied; and • all Trust assets will be irrevocably dedicated to, and will be used for the exclusive purpose of, providing for payments of OPEBs and for paying expenses of administering the CERBT, and will not be available to any of the City's creditors. SECTION 2. That the Director of Finance is hereby authorized and directed to transfer, as soon as administratively practicable after the City's execution of the CERBT, an amount not to exceed $9.8 million from the City's 115 Trusts to the CERBT.