HomeMy WebLinkAbout2024-15 - Adopting the Public Agencies Post-Employment Benefits Trust (PAPEBT) Administered by Public Agency Retirement Services (PARS), and Appointing the City Manager as the Plan AdministratorRESOLUTION NO. 2024-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE
PUBLIC AGENCIES POST -EMPLOYMENT BENEFITS
TRUST (PAPEBT) ADMINISTERED BY PUBLIC AGENCY
RETIREMENT SERVICES (PARS), AND APPOINTING
THE CITY MANAGER AS THE PLAN ADMINISTRATOR
WHEREAS, on March 25, 2008, the City Council of the City of Newport Beach
("City") approved investing Other Post -Employment Benefit ("OPEB") funding into the
California Employer's Retiree Benefit Trust ("CERBT") managed by the California Public
Employees' Retirement System ("CalPERS"), to address the unfunded liability remaining
after conversion of the City's Retiree Medical Program from a defined benefit plan to a
defined contribution plan;
WHEREAS, on September 11, 2012, the City Council adopted Resolution 2012-
12, delegating the Finance Director, Deputy Finance Director, Accounting Manager, and
Budget Manager authority to request disbursements on behalf of the City from the
CERBT;
WHEREAS, on January 11, 2024, the City Finance Committee recommended
that the City move the OPEB funds to the Public Agencies Post -Employment Benefits
Trust ("PAPEBT"), managed by Public Agency Retirement Services ("PARS");
WHEREAS, the PAPEBT is a multi -employer trust established to provide
economies of scale and efficiency of administration to public agencies, and is tax-exempt
under Section 115 of the Internal Revenue Code;
WHEREAS, the OPEB funds will continue to be held in trust for the purpose of
pre -funding the City's Retiree Medical Program and defraying the reasonable expenses
associated therewith;
WHEREAS, moving the OPEB funds from the CERBT to the PAPEBT will have
no effect on any current or former employee's entitlement to post -employment benefits,
will not create any new or vested right to any benefit nor strengthen any existing vested
right or benefit, and the City reserves the right to make contributions, if any, to the
PAPEBT; and
WHEREAS, PARS requires a resolution of the City Council adopting the
PAPEBT, and designating an officer as the Plan Administrator.
Resolution No. 2024-15
Page 2of3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows..
Section 1: The City Council hereby adopts the PARS Public Agencies Post -
Employment Benefits Trust, effective March 12, 2024.
Section 2: The City Council hereby appoints the City Manager, or designee, as
the City's Plan Administrator for the City's participation in the Public Agencies Post -
Employment Benefits Trust, and authorizes the Plan Administrator to execute any and all
legal and administrative documents on behalf of the City, and to take whatever additional
actions necessary to establish and maintain the City's participation in the Public Agencies
Post -Employment Benefits Trust, and to ensure compliance with any relevant rule,
regulation, or law related thereto.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution. Any previously adopted resolution,
or portion thereof, in conflict with the provisions of this resolution is hereby repealed to
the extent it conflicts.
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Resolution No. 2024-15
Page 3 of 3
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 12th day of March, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown'
City Clerk U
c1< FOP,
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
a n C. Harp
City Attorney
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-15 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 121h day of March, 2024; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Noah Blom,
Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember
Erik Weigand
NAYS: Councilmember Brad Avery
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 13th day of March, 2024.
Leilani I. Brown
City Clerk
Newport Beach, California 7-1/ P®7
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