CC RESOLUTION 5379 - Rescinded & replace by Reso #5390RESOLUTION NO. 5379
A RESOLUTION APPROVING THE ADOPTION OF THE MULTIPLE
EMPLOYER OPEB/PENSION 115 TRUST.
The City of El Segundo does resolve as follows:
SECTION 1. Findings. The City Council finds and declares as follows:
A. Shuster Advisory Group, LLC ("Shuster") has made available Pension 115
Trust ("Trust") for the purpose of pre -funding pension obligations.
B. The City of El Segundo ("City") 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
there under, and is a tax-exempt trust under the state's relevant statutory
provisions.
C. Alta Trust Company satisfies the Trustee requirements under IRS section
115.
D. All qualified assets currently held in the City's Public Agency Retirement
Services ("PARS") Public Agencies Post -Employment Benefit Trust are
irrevocably dedicated to prefunding the City's Pension obligations.
E. The City's adoption and operation of the Trust has no effect on any current
or former employee's entitlement to post -employment benefits.
F. The terms and conditions of post -employment benefit entitlement, if any, are
governed by contracts separate from and independent of the Trust.
G. The City Council has prudently set aside funds for pre -funding of pension
obligations.
H. The City's funding of the Trust does not, and is not intended to, create any new
vested right to any benefit nor strengthen any existing vested right.
I. The City reserves the right to make contributions, if any, to the Trust.
SECTION 2. Approval; Authorization.
A. The City Council adopts the Shuster Multiple Employer OPEB/Pension
115 Trust, effective December 6, 2022.
RESOLUTION NO. 5379
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B. The City Council authorizes the termination of the City of El Segundo
PARS Public Agencies Post -Employment Benefits Trust Program, all
services, administration, and investment contracts with PARS and US
Bank, N.A ("U.S. Bank"), including the services of U.S. Bank as Trustee.
C. The City Council authorizes the appointment of Alta Trust Company as
successor Trustee and Charles Schwab Trust Bank as custodian of the
assets. The transfer of assets is contingent upon the acceptance of the
successor Trustee and custodian.
D. The City Council certifies that the successor trust satisfies the requirements
of Section 115 of the Internal Revenue Code and that all assets held by that
trust shall qualify as "plan assets" that are irrevocably dedicated to the
prefunding of Pension obligations.
E. The City Council authorizes the liquidation to effectuate the transfer of
all assets to Charles Schwab Trust Bank, as soon as administratively
practicable
F. Upon the complete transfer of all assets on or around January 31, 2023,
or earlier, PARS is removed as trust administrator and U.S. Bank is
removed as Trustee.
G. The City Council appoints the City Manager, or his/her successor or
his/her designee as the City's Administrator for the Trust.
H. 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 with 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.
SECTION 3. Severability. If any part of this Resolution or its application is deemed
invalid by a court of competent jurisdiction, the City Council intends that such invalidity
will not affect the effectiveness of the remaining provisions or applications and, to this
end, the provisions of this Resolution are severable.
SECTION 4. Electronic Signatures. This Resolution may be executed with
electronic signatures in accordance with Government Code §16.5. Such electronic
signatures will be treated in all respects as having the same effect as an original signature.
RESOLUTION NO. 5379
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SECTION 5. Signature Authority. The Mayor, or presiding officer, is hereby
authorized to affix his signature to this Resolution signifying its adoption by the City
Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is
directed to attest thereto.
SECTION 6. Effective Date. This Resolution will take effect immediately upon
adoption and will remain effective unless repealed or superseded.
SECTION 7. City Clerk Direction. The City Clerk will certify to the passage and
adoption of this Resolution, enter it in the City's book of original Resolutions, and make a
record of this action in the meeting's minutes.
PASSED AND ADOPTED this 6th day of December 2022.
Drew 9&1s, M r
ATTEST:
. ......... J.W
Lili Sandoval, Deputy City Clerk
APPROVED AS TO FORM*
Mark D. ensl y, ity Attorney
RESOLUTION NO. 5379
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Lili Sandoval, Deputy City Clerk of the City of El Segundo, California, do hereby certify
that the whole number of members of the City Council of said City is five; that the
foregoing Resolution No. 5379 was duly passed and adopted by said City Council,
approved and signed by the Mayor, and attested to by the Deputy City Clerk, all at a
regular meeting of said Council held on the 6t" day of December, 2022, and the same
was so passed and adopted by the following vote:
AYES Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk,
Council Member Nicol and Council Member Giroux
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of December,
2022.
Lili Sandoval, Deputy City Clerk
of the City of El Segundo,
California
RESOLUTION NO. 5379
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