HomeMy WebLinkAboutReso 192-12 Fire Dist Retiree Med Benefits RESOLUTION NO. 192 - 12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH
ALAMEDA COUNTY FIRE DISTRICT REGARDING FAIR SHARE FUNDING OF RETIREE
MEDICAL BENEFITS LIABILITIES AND APPROVING THE USE OF SPECIFIED
GENERAL FUND ASSETS AS AN INITIAL CONTRIBUTION
WHEREAS, the City Council adopted Resolution 119-12 on June 19, 2012 approving an
agreement for services with Alameda County Fire District (ACFD); and
WHEREAS, the Agreement with ACFD included provisions for a subsequent agreement to
address the method of funding liabilities associated with retiree health benefits; and
WHEREAS, the method of financing must take into account an allocation of the "fair share"
attributed to each agency contracting for service with ACFD; and
WHEREAS, ACFD has obtained an actuarial valuation which includes a proposed side
fund allocation to each participating agency including ACFD; and
WHEREAS, ACFD intends to proceed with establishing an irrevocable trust to accept
contributions that will be used to finance side fund obligations of each agency; and
WHEREAS, each agency can independently determine the timing of contributions to the
trust to reduce the agency side fund liability; and
WHEREAS, a specific agreement detailing ACFD responsibilities and City of Dublin
responsibilities in funding and managing the side fund will be developed; and
WHEREAS, City Council policies strive to reduce long term obligations for retiree benefits
by setting aside funding designated for this purpose; and
WHEREAS, the City as of June 30, 2012 has a balance of $5,148,019.57 specifically
designated to offset liabilities for retiree benefits associated with ACFD employees; and
WHEREAS, the City Council desires to make an initial contribution of $6,487,000 to an
ACFD trust, which will reduce the City of Dublin fair share of the liability; and
WHEREAS, in order to make the desired contribution the City Council proposes to use
$1,338,980.43 from the Assigned Fund Balance for Pension and Other Post Employment
Benefits; and
WHEREAS, the use of the $1,338,980.43 is intended to modify the current policy providing
principal components of fund balance as established in Resolution No. 108-12.
Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council directs the City Manager
to work with Alameda County Fire District to establish an agreement stating how the City of
Dublin "fair share" of Fire Retiree Health liabilities shall be calculated and funded, in
accordance with the framework as presented in the Staff Report on November 6, 2012; and
BE IT FURTHER RESOLVED that upon completion of the written agreement with
oversight and review by the City Attorney, the City Manager shall be authorized to execute
the agreement on the behalf of the City of Dublin; and
BE IT FURTHER RESOLVED that the City Council authorizes a change in the fund
balance policy adopted by Resolution No. 108-12 and herby directs that the Assigned Fund
Balance for Pension and Other Post Employment Benefits shall be reduced by $1,338,980.43
and the Committed Designation for Fire OPEB Liabilities shall be increased by the same
amount; and
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to
expend the $6,487,000 from the Committed Designation for Fire OPEB Liabilities, by paying
these funds to an irrevocable trust established by ACFD to reduce the City fair share of
retiree medical insurance liabilities.
PASSED,. APPROVED AND ADOPTED this 6th day of November, 2012, by the
following vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
YL-
Mayor
ATTEST:
City Clerk
•
Reso No. 192-12, Adopted 11-6-12, Item 8.2 Page 2 of 2