HomeMy WebLinkAbout2008-05-20; Municipal Water District; Resolution 1321Exhibit 2
1 RESOLUTION NO. 1321
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD MUNICIPAL WATER DISTRICT,
3 CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT
, AND ELECTION TO PREFUND OTHER POST
EMPLOYMENT BENEFITS THROUGH CalPERS
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6 WHEREAS, in order to ensure that retiree health care costs are included in the
7 financial statements of entities, the Government Accounting Standards Board (GASB)
8 implemented GASB 45 ; and
9 WHEREAS, GASB 45 requires government organizations to hire an actuary to
10 calculate the unfunded liability and the annual required contribution (ARC) for retiree
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health care costs; and
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WHEREAS, the Carlsbad Municipal Water District (CMWD) retained the actuary
firm of Gabriel, Roeder and Smith to calculate these amounts; and
15 WHEREAS, in Fiscal Year 2006-07, the CMWD set aside the actuarial calculated
16 liability in the amount of $2.5 million; and
17 WHEREAS, under GASB 45, in order for the CMWD to remove the liability from
18 its financial statements, the funds must be invested in an irrevocable trust; and
19 WHEREAS, staff evaluated three possible irrevocable trusts based on the cost of
20 the plan, role of the CMWD in choosing investment options, track record of the
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organization, and restrictions of the plan; and
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WHEREAS, based on these criteria, staff is recommending that the CMWD use
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CalPERS as their trustee for the CMWD's irrevocable trust.
25 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
26 Carlsbad Municipal Water District, as follows:
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Exhibit 2
1 1. That the above recitations are true and correct.
2 2. That the President of the Carlsbad Municipal Water District is authorized
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to sign the Agreement and Election of the Carlsbad Municipal Water District to Prefund
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Other Post Employment Benefits (OPEB) through CalPERS.
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3. That the Board of Directors delegates authority to request disbursements6
7 from the Other Post Employment Prefunding Plan to the Executive Manager and the
8 Deputy City Manager, based upon review and recommendation by the Finance Director.
9 4. That the disbursements requested by authorized representatives of the
10 CMWD will be used to reimburse the CMWD for OPEB payments as per the terms of
the Agreement to Prefund Other Post Employment Benefits through CalPERS.
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5. That the Board of Directors authorizes staff to transfer the actuarial
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calculated OPEB liability to the CalPERS Other Post Employment Prefunding Plan.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council,
held on the 20- day of May. 2008, by the following vote:
AYES: Commission Members Lewis, Kulchin, Packard and Nygaard.
NOES: Commission Members Hall.
ABSENT: None.
ATTEST:
LORRAINE M. WOOD, Secretary
(SEAL)