06 Staff Report.CalPERS CEPPT Account
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/05/2019
ITEM NO: 6
DATE: October 24, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Enter into an Agreement to Participate in the
CalPERS California Employers’ Pension Prefunding Trust (CEPPT) Program and
Delegate Authority to the Town Manager to Request Disbursements
RECOMMENDATION:
Authorize the Town Manager to enter into an agreement to participate in the CalPERS
California Employers’ Pension Prefunding Trust (CEPPT) Program and delegate authority to the
Town Manager to request disbursements.
BACKGROUND:
On September 17, 2019, the Town Council directed staff to terminate the PARS agreement ,
consistent with the Town Pension and OPEB Trusts Oversight Committee recommendation, and
to return to Council with an agreement to initiate a California Employers’ Pension Prefunding
Trust (CEPPT).
DISCUSSION:
To enroll in the CEPPT Program CalPERS requires that two documents be approved by our
governing body in a public meeting. In addition, CalPERS requires that the Town Manager be
authorized to enter into the CEPPT Program agreement and delegate authority to request
disbursements. CalPERS recommends that separate votes be initiated for both the CEPPT
Participation Agreement (Attachment 1) and the Authority to Request Disbursements
(Attachment 2).
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SUBJECT: Authorize the Town Manager to Enter into Agreements with CalPERS
DATE: October 24, 2019
CONCLUSION:
If the Town Council takes these actions, the Town will establish its participation in the CalPERS
CEPPT Program.
COORDINATION:
This item was coordinated with the Town Manager, Town Attorney and Director of Finance .
FISCAL IMPACT:
No fiscal impact at this time. If the Council directs staff to place monies into either of the CEPPT
asset allocations in the future, both products represent a cost savings compared to the previous
PARS account.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. CEPPT Participation Agreement
2. CEPPT Delegation of Authority to Request Disbursements