HomeMy WebLinkAboutRES-25-7472 (ADOPTION OF THE MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP)Page 1 of 3 RES-25-7472
CITY OF HERMOSA BEACH
RESOLUTION NO. RES-25-7472
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, APPROVING THE ADOPTION OF THE MULTIPLE
EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER
ADVISORY GROUP, LLC
WHEREAS, Shuster Advisory Group, LLC (“Shuster”) has made available the
Multiple Employer OPEB/Pension 115 Trust (“Trust”) for the purpose of pre-funding
pension obligations and/or OPEB obligations; and
WHEREAS, the City of Hermosa Beach (“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 the Trust is a tax-exempt trust under the
relevant statutory provisions of the State of California; and
WHEREAS, Alta Trust Company satisfies the Trustee requirements under IRC
section 115; and
WHEREAS, all qualified assets currently held in the City’s Public Agency
Retirement Services (“PARS”) Public Agencies Post-Retirement Health Care Plan
are irrevocably dedicated to prefunding the City’s OPEB obligations; and
WHEREAS, the City’s adoption and operation of the 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 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 Trust does not, and is not intended to,
create any new vested right to any benefit nor strengthen any existing vested
right; and
Docusign Envelope ID: 6486BF4A-A0F3-4E2C-975B-E775ECBBF7CF
Page 2 of 3 RES-25-7472
WHEREAS, the City reserves the right to make contributions, if any, to the
Trust.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby adopts the Shuster Multiple Employer
OPEB/Pension 115 Trust, effective January 28, 2025; and
SECTION 2. The City Council hereby authorizes the use of the Trust for the
purpose of pre-funding pension obligations.
SECTION 3. The City Council hereby authorizes the termination of the City
of Hermosa Beach’s participation in the PARS Public Agencies Post-Retirement
Health Care Plan Program, all services, administration, and investment contracts
with PARS and U.S. Bank, N.A. (“U.S. Bank”), including the services of U.S. Bank as
Trustee; and
SECTION 4. The City Council hereby 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; and
SECTION 5. 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 OPEB and pension obligations; and
SECTION 6. The City Council hereby authorizes the liquidation to effectuate
the transfer of all assets to Charles Schwab Trust Bank, as soon as administratively
practicable; and
2025
SECTION 7. Upon the complete transfer of assets on or around March 31,
2025, PARS is removed as trust administrator and U.S. Bank is removed as Trustee;
and
SECTION 8. The City Council hereby appoints the Administrative Services
Director, or his/her successor or his/her designee as the City’s Administrator for
the Trust; and
Docusign Envelope ID: 6486BF4A-A0F3-4E2C-975B-E775ECBBF7CF
Page 3 of 3 RES-25-7472
SECTION 9. The City Manager 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 10. That said action was taken during a regular meeting of the
Hermosa Beach City Council.
SECTION 11. The Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Resolution and thereupon the same shall take
effect and be in force.
PASSED, APPROVED and ADOPTED this 28th day of January, 2025.
Mayor Dean Francois
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
___________________________ ________________________________
Reanna Guzman, Patrick Donegan,
Acting City Clerk City Attorney
Docusign Envelope ID: 6486BF4A-A0F3-4E2C-975B-E775ECBBF7CF
State of California ) County of Los Angeles ) ss ) City of Hermosa Beach
January 30, 2025
Certification of Council Action
RESOLUTION NO. RES-25-7472
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP,
LLC
I, Reanna Guzman, Acting City Clerk of the City of Hermosa Beach, do hereby
certify that the above and foregoing Resolution No. RES-25-7472 was duly approved
and adopted by the City Council of said City at its regular meeting thereof held on
the 28th day of January 2025, and passed by the following vote:
AYES: MAYOR FRANCOIS, MAYOR PRO TEMPORE SAEMANN, and
COUNCILMEMBERS DETOY, JACKSON, and KEEGAN
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
________________________________
Reanna Guzman,
Acting City Clerk
Docusign Envelope ID: 6486BF4A-A0F3-4E2C-975B-E775ECBBF7CF