HomeMy WebLinkAbout2008-05-20; City Council; Resolution 2008-151Exhibit 1
1 RESOLUTION NO. 2008-151
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT
3 AND ELECTION TO PREFUND OTHER POST
4 EMPLOYMENT BENEFITS THROUGH CalPERS
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WHEREAS, in order to ensure that retiree health care costs are included in the
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financial statements of entities, the Government Accounting Standards Board (GASB)
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implemented GASB 45 ; and
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9 WHEREAS, GASB 45 requires government organizations to hire an actuary to
JO calculate the unfunded liability and the annual required contribution (ARC) for retiree
11 health care costs; and
12 WHEREAS, the City retained the actuary firm of Gabriel, Roeder and Smith to
13 calculate these amounts; and
WHEREAS, in Fiscal Year 2006-07, the City set aside the actuarial calculated
15 liability in the amount of $5.4 million; and
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WHEREAS, under GASB 45, in order for the City to remove the liability from its
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financial statements, the funds must be invested in an irrevocable trust; and18
WHEREAS, staff evaluated three possible irrevocable trusts based on the cost of
20 the plan, role of the City in choosing investment options, track record of the
21 organization, and restrictions of the plan; and
22 WHEREAS, based on these criteria, staff is recommending that the City use
23 CalPERS as their trustee for the City's irrevocable trust.
24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
25 Carlsbad, California, as follows:
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1. That the above recitations are true and correct.
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Exhibit 1
1 2. That the Mayor of the City of Carlsbad is authorized to sign the Agreement
2 and Election of the City of Carlsbad to Prefund Other Post Employment Benefits
3 (OPEB) through CalPERS.
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3. That the City Council delegates authority to request disbursements from
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the Other Post Employment Prefunding Plan to the City Manager and the Deputy City
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Manager, based upon review and recommendation by the Finance Director.
8 4. That the disbursements requested by authorized representatives of the
9 City will be used to reimburse the City for OPEB payments as per the terms of the
10 Agreement to Prefund Other Post Employment Benefits through CalPERS.
5. That the City Council authorizes staff to transfer the actuarial calculated
12 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 City Council and the Carlsbad Municipal Water District Board of Directors,
held on the 20th day of May. 2008, by the following vote:
AYES: Council Members Lewis, Kulchin, Packard and Nygaard.
NOES: Council Member Hall.
ABSENT: None.
LORRAINE M. WOOD, Clerk'
(SEAL)