CC RESOLUTION 5390RESOLUTION NO. 5390
A RESOLUTION APPROVING THE ADOPTION OF THE MULTIPLE
EMPLOYER OPEB/PENSION SECTION 115 TRUST AND
AUTHORIZING THE RELATED ENGAGEMENT OF SECTION 115
TRUSTEE AND DISCRECTIONARY ADVISORY SERVICES.
The City of El Segundo does resolve as follows:
SECTION. 1. Findings. The City Council finds and declares as follows:
A. The City of El Segundo ("City") is eligible to participate in a tax-exempt,
multiple employer other post -employment benefits ("OPEB")/trust performing
an essential governmental function within the meaning of Section 115 of the
Internal Revenue Code ("Section 115"), as amended, and the regulations
issued thereunder.
B. Shuster Advisory Group, LLC ("Shuster") has made available a Section 115
Trust ("Trust") for the purpose of pre -funding pension obligations.
C. Alta Trust Company satisfies Section 115 trustee requirements.
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.
J. On December 6, 2022, the City Council adopted Resolution No. 5379 to
convert the City's Trust -related services from PARS/US Bank, N.A. ("U.S.
Bank") to Shuster, Charles Schwab Trust Bank ("Charles Schwab"), and Alta
Trust Company ("Alta").
K. City staff has since learned, however, that PARS and U.S. Bank require
additional time to effectuate the transfer of Trust assets, and the City Council
seeks to adopt this Resolution to allow additional time to allow for such
RESOLUTION NO. 5390
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transfer and conversion in Trust -related services.
SECTION 2. Approval, Authorization,
A. The City Council adopts Shuster's Trust, effective February 7, 2023, and
the text of the Section 115 Trust is on file with the City's Finance
Department.
B. Subject to this Resolution's terms, the City Council reauthorizes the
termination of the City's Trust -related 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
U.S. Bank's service as trustee for the Trust.
C. The City Council reauthorizes the appointment of Alta as successor trustee
for the Trust and Charles Schwab as custodian of the Trust's assets, upon
the acceptance of the appointments by both Alta and Chrales Schwab.
D. The City Council recertifies that the Alta satisfies the requirements of Section
115 and that all assets held by the Trust will qualify as "plan assets" that are
irrevocably dedicated to the prefunding of City pension obligations.
E. The City Council reauthorizes the liquidation to effectuate the transfer
of all Trust assets to Charles Schwab, as soon as administratively
practicable.
F. Upon the complete transfer of all Trust assets on or prior to April 30, 2023,
PARS is removed as Trust administrator and U.S. Bank is removed as
Trustee.
G. The City Council appoints the City Manager, or designee, as the City's
Trust Administrator.
H. The City Manager, or designee 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 and carry out
this Resolution's terms, approvals, and authorizations.
RESOLUTION NO. 5390
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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. 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 5. Effective Date. Resolution No. 5379, adopted December 6, 2022, is
hereby rescinded and this Resolution will supersede and replace Resolution No. 5379 in
its entirety. This Resolution will take effect immediately upon adoption and will remain
effective unless repealed or superseded.
SECTION 6. 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 7t" day of February 2023.
Drevwi...Sor
ATTEST:
i
.�dity Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
RESOLUTION NO. 5390
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, 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. 5390 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 7t" day of February, 2023, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk,
Council Member Giroux, and Council Member Baldino
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this2� day of February,
2023.
Try ;y Weaver, City Clerk
of the City of El Segundo,
California
RESOLUTION NO. 5390
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