For City Council Meeting [September 13, 2022]
TO: Honorable Mayor and Council
APPROVAL: Marcus Fuller, City Manager
FROM: Eric Vail, City Attorney
Title
Request City Council to: Approve CIRA Agreement for Apportionment of Retirement Obligations (AB1912); and (2) Authorize the City Manager to Execute All Documents.
Body
BACKGROUND
From July 1, 1986 through June 30, 2017, the City of Rialto (City) was a participating member of the Public Agency Risk Sharing Authority of California (PARSAC), a joint powers insurance authority. The City subsequently became a member of the California State Association of Counties Excess Insurance Authority (CSAC-EIS) which is now known as Public Risk Innovation, Solutions, and Management (PRISM). In July 2021, PARSAC merged with the Redwood Empire Municipal Insurance Fund to for the California Intergovernmental Risk Authority (CIRA).
The PARSAC joint powers agreement to which the City was a party, provided, in pertinent part that "[c]osts of staffing and supporting PARSAC [hereinafter called PARSAC's general expenses] shall be equitably allocated among the various Programs by the Board, and shall be funded by the Member Entities which participate in such Programs [and ex-Member Entities] in accordance with such allocations." The joint powers agreement provides further that "[f]ollowing the termination of this Agreement, any Member Entity which was a participant in any Program of PARSAC shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member Entity's period of participation."
In September 2018, former Governor Jerry Brown signed into law AB 1912. This Bill, codified in Government Code 6508.2, established rules for joint powers agencies (JPAs) to meet pension obligations for employees and retirees should the JPA terminate i...
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