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HomeMy WebLinkAbout2017-10-10 - Resolution No. 17-32 RESOLUTION NO. 17-32 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT ADOPTING THE PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES (PARS) WHEREAS, PARS has made available the PARS Public Agencies Post-Employment Benefits Trust (the "Program") for the purpose of pre-funding pension obligations and OPEB obligations; and WHEREAS, the Yorba Linda Water District ("District") is eligible to participate in the Program, a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and WHEREAS, the District's adoption and operation of the Program has no effect on any current or former employee's entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Program; and WHEREAS, the District's funding of the Program does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the District reserves the right to make contributions, if any, to the Program. NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does find, determine and resolve: Section 1. The Board of Directors hereby adopts the PARS Public Agencies Post- Employment Benefits Trust, effective October 10, 2017; and Resolution No. 17-32 Adopting the PARS Public Agencies Post-Employment Benefits Trust 1 Section 2. The Board of Directors hereby appoints the General Manager, or his successor or designee as the District's Plan Administrator for the Program; and Section 3. The District's Plan Administrator is hereby authorized to execute the PARS legal and administrative documents on behalf of the District and to take whatever additional actions are necessary to maintain the District's participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the District's Program. PASSED AND ADOPTED this 10th day of October 2017 by the following called vote: AYES: Directors Hall, Jones, Miller and Nederhood NOES: None ABSTAIN: None ABSENT: Director Hawkins J. Way a Miller, Ph.D., President Yorba Linda Water District ATTEST: I Annie Alexander, Assistant Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gage , Esq. Kidman Law LL Resolution No. 17-32 Adopting the PARS Public Agencies Post-Employment Benefits Trust 2 ADOPTION AGREEMENT for the POST-EMPLOYMENT SECTION 115 TRUST A.L L Trust agreement with U.S. Bank National Association (the"Bank")(the"Trust Aiareement"): Post-Emolovment Section 115 Trust. Public Agencies Post-Employment Benefits—Trust Agreement, effective November 5, 2014 A.1.2. OPEB Plan: Public Agencies Post-Employment Health Care Plan The plan document for the OPEB Plan is the Public Agencies Post- Employment Health Care Plan—Master Plan Document, effective as of November 5, 2014(the"Plan Document"). A.1.3. Pension Plan: Cak' LG0t x-Rki,iL F Srme,,f '� Irm �C,a1PE1�S> A.1.4. Pension Plan's effective date: �1 I Iga5 ❑ (Check if applicable) Additional Pension Plans (and their respective effective dates)are listed on an exhibit attached hereto. A.2.1. Employer: Name: Yorba Linda Water District U.S. mail address: 1717 East Miraloma Avenue, Placentia, CA 92870 Phone number: (714) 701-3000 EIN: 95-2078694 Fiscal year end: June 30 A.2.2. Plan Administrator: Position at Employer: General Manager Incumbent: Marc Marcantonio U.S. mail address: 1717 East Miraloma Avenue, Placentia, CA 92870 Phone number: (714) 701-3020 Email address: mmarcantonio(cDvlwd.com Page 1 of 4 EXHIBIT"A"TO PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST AGREEMENT A.3.1 Adoption. The Employer hereby: A.3.1.].Adopts the Trust Agreement as part of the(Check one or both of the following boxes): OPEB Plan Pension Plan (each such plan separately, the "Plan") and agrees to be bound by the Trust Agreement's terms, effective as of the Employer's signature date below and subject to the investment approach selected below. A.3.1.2.The following provisions apply if and only if the OPEB Plan box above is checked: (i) Adopts the Plan Document and agrees to be bound by the Plan Document's terms, effective as of the Employer's signature date below and (ii) acknowledges that the determination of Eligible Employees and Eligible Beneficiaries is finally and conclusively made by the Employer according to the Employer's applicable policies and collective bargaining agreements and without reference to the Trust Agreement. A.3.1.3.Ratifies, affirms, and approves Employer's appointment of Phase II Systems as Trust Administrator and represents and warrants that attached hereto is a fully-executed original of Employer's Agreement for Administrative Services with Phase II Systems, d/b/a Public Agency Retirement Services (PARS). A.3.1.4.Agrees that capitalized terms used herein but not defined herein shall have the same meaning attributed to them as in the Trust Agreement or Plan Document, as the case may be. A.4.1. The Employer hereby represents and warrants that: A.4.1.1. Authorizing Law. Employer has reviewed with its legal counsel and has determined that Employer is authorized to establish and maintain the Plan and to establish a financial- institution trust (separate and apart from the state) for the Plan, including the authority to adopt the Trust Agreement. A.4.1.2. Authorizing Resolution. Attached hereto is a certified copy of a resolution of the Employer's governing body authorizing the adoption of the Trust Agreement as part of the Plan and authorizing the appointment of the Plan Administrator designated by position of employment at the Employer to act on the Employer's behalf in all matters relating to the trust. A.4.1.3. Tax Status. The Plan is a "governmental plan" as defined in Section 414(d) of the Internal Revenue Code of 1986, as amended; is a "Section 401(a)(24) governmental plan" as defined in Revenue Ruling 2011-1; and is not subject to Federal income taxation. The Plan's governing document expressly provides that it is irrevocably impossible for any part of the corpus or income of the Plan to be used for, or diverted to, purposes other than for the exclusive benefit of the Plan participants and their beneficiaries. The Pension Plan is a qualified plan under Code Section 401(a). (In addition, the Employer hereby acknowledges that the Plan is prohibited from assigning any part of its equity or interest in the trust.) Page 2 of 4 EXHIBIT"A"TO PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST AGREEMENT A.4.2. Investment Approach. 4.2.1. The following provisions apply if and only if the OPEB Plan box above is checked.- OPEB Account. OPEB Account assets are invested in the discretion of(check one and only one of the following boxes): Discretionary investment approach: The Bank, subject to Exhibit A (Investment Strategy Selection and Disclosure Form) hereto. Directed investment approach: ❑ The Plan Administrator. ❑ The following registered investment adviser, bank (other than the Bank), or insurance company(a"Third-Part_v Manager"): . The Employer hereby represents and warrants that attached hereto is an executed copy of the agreement with the above appointed Third Party Manager. 4.2.2. The following provisions apply if and only if the Pension Plan box above is checked.- Pension Account. Pension Account assets are invested in the discretion of(check one and only one of the following boxes): Discretionary investment approach: �he Bank, subject to Exhibit A (Investment Strategy Selection and Disclosure Form) hereto. Directed investment approach: ❑ The Plan Administrator. ❑ The following registered investment adviser, bank (other than the Bank), or insurance company(a"Third-Party Manner"): . The Employer hereby represents and warrants that attached hereto is an executed copy of the agreement with the above appointed Third Party Manager. [signature page follows] Page 3 of 4 EXHIBIT"A"TO PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST AGREEMENT YORBA LINDA WATER DISTRICT By: Marc Marcantonio Its: General Manager Date: Accepted by: PHASE II SYSTEMS, DBA PUBLIC AGENCY RETIREMENT SERVICES(PARS) By: _ Daniel Johnso ` Its: President / Date: ),;/z , U.S.BANK NATIONAL ASSOCIATION By: , Y Susan M. Hughes Its: Vice President and Relationship Manaaer Date: Page 4 of 4 EXHIBIT"A"TO PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST AGREEMENT PROFESSIONAL SERVICES AGREEMENT BETWEEN THE YORBA LINDA WATER DISTRICT AND PHASE II SYSTEMS SERVICES: Pre-Funding Pension Obligations and/or OPEB Obligations This Professional Services Agreement ("Agreement") is made this 2nd day of November, 2017, between Phase II Systems, a corporation organized and existing under the laws of the State of California, doing business as Public Agency Retirement Services and PARS (hereinafter "PARS") and the Yorba Linda Water District, a local public agency, created and operating under authority of Division 12 of the California Water Code ("District") (collectively referred to herein as the "Parties"). RECITALS WHEREAS, District is engaging in the services described in the Scope of Services attached as Exhibit "1A"; WHEREAS, District requires a professional Trust Administrator with the requisite knowledge, skill, ability and expertise to provide the necessary Services for District; WHEREAS, PARS represents to District that it is fully qualified and available to perform the Services for and as requested by District; and WHEREAS, the District has adopted the PARS Public Agencies Post-Employment Benefits Trust for the purpose of pre-funding pension obligations and/or OPEB obligations ("Plan"), and is desirous of retaining PARS as Trust Administrator to the Trust,to provide administrative services. NOW, THEREFORE, in consideration of the mutual promises, covenants, and terms and conditions herein, the Parties agree as follows: AGREEMENT 1. Services. PARS will provide the services pertaining to the Plan as described in the exhibit attached hereto as "Exhibit 1A" ("Services") in a timely manner, subject to the further provisions of this Agreement. 2. Fees for Services. PARS will be compensated for performance of the Services as described in the exhibit attached hereto as "Exhibit 113". Costs or expenses not designated or identified in Exhibit 113 shall not be reimbursable unless otherwise provided in this Agreement. 3. Payment Terms. Payment for the Services will be remitted directly from Plan assets unless the District chooses to make payment directly to PARS. In the event that the District chooses to make payment directly to PARS, it shall be the responsibility of the District to remit payment directly to PARS based upon an invoice prepared by PARS and delivered to the District. If payment is not received by PARS within sixty (60) days of the invoice delivery date, the balance Page 1 due shall bear interest at the rate of 1.5%per month. If payment is not received from the District within ninety (90) days of the invoice delivery date, payment plus accrued interest will be remitted directly from Plan assets, unless PARS has previously received written communication disputing the subject invoice that is signed by a duly authorized representative of the District. 4. Fees for Services Beyond Scope. Fees for services beyond those specified in this Agreement will be billed to the District at the rates indicated in the PARS' standard fee schedule in effect at the time the services are provided and shall be payable as described in Section 3 of this Agreement. Before any such services are performed, PARS will provide the District with a detailed description of the services, terms, and applicable rates for such services. Such services, terms, and applicable rates shall be agreed upon in writing and executed by both parties. 5. Information Furnished to PARS. PARS will provide the Services contingent upon the District's providing PARS the information specified in the exhibit attached hereto as "Exhibit IC" ("Data"). It shall be the responsibility of the District to certify the accuracy, content and completeness of the Data so that PARS may rely on such information without further audit. It shall further be the responsibility of the District to deliver the Data to PARS in such a manner that allows for a reasonable amount of time for the Services to be performed. Unless specified in Exhibit 1 A, PARS shall be under no duty to question Data received from the District, to compute contributions made to the Plan, to determine or inquire whether contributions are adequate to meet and discharge liabilities under the Plan, or to determine or inquire whether contributions made to the Plan are in compliance with the Plan or applicable law. In addition, PARS shall not be liable for non performance of Services to the extent such non performance is caused by or results from erroneous and/or late delivery of Data from the District. In the event that the District fails to provide Data in a complete, accurate and timely manner and pursuant to the specifications in Exhibit IC, PARS reserves the right, notwithstanding the further provisions of this Agreement, to terminate this Agreement upon no less than ninety (90) days written notice to the District. 6. Records. Throughout the duration of this Agreement, and for a period of five (5) years after termination of this Agreement, PARS shall provide duly authorized representatives of District access to all records and material relating to calculation of PARS' fees under this Agreement. Such access shall include the right to inspect, audit and reproduce such records and material and to verify reports furnished in compliance with the provisions of this Agreement. All information so obtained shall be accorded confidential treatment as provided under applicable law. 7. Confidentiality. Without the District's consent, PARS shall not disclose any information relating to the Plan except to duly authorized officials of the District, subject to applicable law, and to parties retained by PARS to perform specific services within this Agreement. The District shall not disclose any information relating to the Plan to individuals not employed by the District without the prior written consent of PARS, except as such disclosures may be required by applicable law. 8. Independent Contractor. PARS is and at all times hereunder shall be an independent contractor. As such, neither the District nor any of its officers, employees or agents shall have the power to control the conduct of PARS, its officers, employees or agents, except as Page 2 specifically set forth and provided for herein. PARS shall pay all wages, salaries and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation and similar matters. 9. Safety. PARS shall conduct and maintain the Services so as to avoid injury or damage to any person or property. PARS shall at all times exercise all necessary safety precautions appropriate to the nature of the Services and the conditions under which the Services is to be performed, and be in compliance with all applicable federal, state and local statutory and regulatory requirements including State of California, Department of Industrial Relations (Cal/OSHA) regulations. PARS is responsible for the safety of all PARS personnel at all times during performance of its Services, including while on District property. 10. Indemnification. PARS and Agency hereby indemnify each other and hold the other harmless, including their respective officers, directors, employees, agents and attorneys, from any claim, loss, demand, liability, or expense, including reasonable attorneys' fees and costs, incurred by the other as a consequence of, to the extent, PARS' or Agency's, as the case may be, negligent acts, errors or omissions with respect to the performance (or actual or alleged non-performance) of the Services under this Agreement. (Please see Exhibit "IA".) 11. 11.0 Insurance Requirements. Prior to execution of this Agreement, and at any time thereafter on request, PARS shall provide certificates of insurance evidencing the required coverage and limits for each insurance policy. In addition, PARS shall provide a new certificate of insurance whenever an insurance policy required herein, expires, is renewed or is replaced. District may also, at any time, request submittal of policies and policy endorsements acceptable to District evidencing the required coverage and limits. Each insurance policy, except Worker's Compensation and Errors & Omissions, shall be primary insurance as respects to District, its affiliated organizations and its and their respective officers, directors, trustees, employees, agents, consultants, attorneys, successors and assigns (collectively, the "Covered Parties") for all liability arising out of the activities performed by or on behalf of PARS. Any insurance, pool coverage, or self-insurance maintained by Covered Parties shall be excess of PARS' insurance and shall not contribute to it. Except for the Errors and Omissions policy (Section 11.4), all insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the Covered Parties or shall specifically allow PARS or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to loss. PARS waives its right of recovery against the Covered Parties for damages covered by insurance required by this Agreement. PARS shall require similar written express waivers and insurance clauses from each of its subcontractors. The insurer issuing the Workers' Compensation insurance shall amend its policy to waive all rights of subrogation against the Covered Parties. Each insurance policy shall provide, or be endorsed to provide, that coverage shall not be cancelled except after thirty (30) days prior written notice by U.S. Mail (ten (10) days for non-payment of premium) has been given to District. Unless otherwise approved by District, each insurance provider shall be authorized to do business in California and have an A.M. Page 3 Best rating (or equivalent) of not less than "A-:VII." PARS shall provide and maintain at all times during the performance of this Agreement the following insurance: (1) Commercial General Liability ("CGL") insurance; (2) Automobile Liability insurance; (3) Workers' Compensation and Employer's Liability insurance; and (4) Errors and Omissions ("E&O") liability insurance. 11.1. Commercial General Liability. Each CGL policy shall identify Covered Parties as additional insured, or be endorsed to identify Covered Parties as additional insured using a form acceptable to the District. Coverage for additional insured shall not be limited to vicarious liability. Defense costs must be paid in addition to limits. Each CGL policy shall have liability coverage limits of at least $1,000,000 per occurrence for bodily injury, personal injury and property damage, and $2,000,000 aggregate total bodily injury, personal injury and property damage. CGL insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 11.2. Automobile Liability. Each Automobile Liability policy shall require coverage for "any auto" and shall have limits of at least $1,000,000 for bodily injury and property damage, each accident, and shall use ISO policy form "CA 00 O1," including owned, non- owned and hired autos, or equivalent. If PARS owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the CGL policy described above. Automobile Liability insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. 11.3. Workers' Compensation/Employer's Liability. PARS shall cover or insure the existence of coverage under the applicable laws relating to Workers' Compensation insurance, all of their employees employed directly by them or through subconsultants at all times in carrying out the Services contemplated under this Agreement, in accordance with the "Workers' Compensation and Insurance Act" of the California Labor Code and any amendatory Acts. PARS shall provide Employer's Liability insurance with limits of at least $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. By PARS' signature hereunder, PARS certifies that it is aware of the provisions of Section 3700 of the California Labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and that PARS will comply with such provisions before commencing Services under this Agreement. Upon the request of District, subconsultants must provide certificates of insurance evidencing such coverage. 11.4. Errors and Omissions. Each E&O policy shall have limits of at least $1,000,000 per claim and $1,000,000 aggregate. E&O insurance and endorsements shall be kept in force at all times during the performance of this Agreement and all coverage required herein shall be maintained after the term of this Agreement so long as such coverage is reasonably available. Page 4 12. Compliance with Applicable Law. The District shall observe and comply with federal, state and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding the administration of the Plan. PARS shall observe and comply with federal, state and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding Plan administrative services provided under this Agreement. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event any party institutes legal proceedings to enforce or interpret this Agreement, venue and jurisdiction shall be in any state court of competent jurisdiction. 14. Force Majeure. When a party's nonperformance hereunder was beyond the control and not due to the fault of the party not performing, a party shall be excused from performing its obligations under this Agreement during the time and to the extent that it is prevented from performing by such cause, including but not limited to: any incidence of fire, flood, acts of God, acts of terrorism or war, commandeering of material, products, plants or facilities by the federal, state or local government, or a material act or omission by the other party. 15. Ownership of Reports and Documents. The originals of all letters, documents, reports, and data produced for the purposes of this Agreement shall be delivered to, and become the property of the District. Copies may be made for PARS but shall not be furnished to others without written authorization from District. 16. Designees. The Plan Administrator of the District, or their designee, shall have the authority to act for and exercise any of the rights of the District as set forth in this Agreement, subsequent to and in accordance with the written authority granted by the Governing Body of the District, a copy of which writing shall be delivered to PARS. Any officer of PARS, or his or her designees, shall have the authority to act for and exercise any of the rights of PARS as set forth in this Agreement. 17. Notices. All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of the notices in person or by depositing the notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows: (A) To PARS: PARS; 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660; Attention: President (B) To District: Yorba Linda Water District; 1717 East Miraloma Avenue, Placentia, CA 92870; Attention: General Manager Notices shall be deemed given on the date received by the addressee. 18. Term of Agreement. This Agreement shall remain in effect for the period beginning October 10, 2017 and ending October 9, 2020 ("Term"). Except as provided for in Section No. 5 above, this Agreement may be terminated at any time by giving thirty (30) days written notice to the other party of the intent to terminate. Absent a thirty (30) day written notice to the other party of Page 5 the intent to terminate, this Agreement will continue unchanged for successive twelve month periods following the Term. 19. Withholding Payment. In the event District has reasonable grounds to believe PARS will be materially unable to perform the Services under this Agreement, or if District becomes aware of a potential claim against PARS or District arising out of PARS' negligence, intentional act or breach of any provision of this Agreement, including a potential claim against PARS by District, then District may, to the fullest extent allowed by law, withhold payment of any amount payable to PARS that District determines is related to such inability to complete the Services, negligence, intentional act, or breach. Any outstanding or open invoices for Services unrelated to such inability to complete the Services, negligence, intentional act, or breach will be paid by the District. 20. Amendment. This Agreement may not be amended orally, but only by a written instrument executed by the parties hereto. 21. Entire Agreement. This Agreement, including exhibits, contains the entire understanding of the parties with respect to the subject matter set forth in this Agreement. In the event a conflict arises between the parties with respect to any term, condition or provision of this Agreement, the remaining terms, conditions and provisions shall remain in full force and legal effect. 22. Attorneys Fees. In the event any action is taken by a party hereto to enforce the terms of this Agreement, the prevailing party herein shall be entitled to receive its reasonable attorney's fees. 23. Binding Arbitration. In the event of any dispute, controversy or claim under or relating to the terms of this Agreement, or the subject matter hereof, or breach or alleged breach thereof, which dispute remains unresolved after a period of thirty(30)days following written notice by one Party to the other, any such dispute (including the determination of the scope or applicability of this agreement to arbitrate) shall be resolved by arbitration to be administered and heard by the Judicial Arbitration and Mediation Service ("JAMS") in Orange County, California pursuant to its Comprehensive Arbitration Rules and Procedures. The arbitration shall be heard by a single arbitrator mutually agreed upon by the Parties to the arbitration. Should the Parties be unable to agree upon an arbitrator,the arbitrator shall be selected pursuant to the applicable JAMS rule for the selection of a single arbitrator. Any such dispute submitted to arbitration shall be brought exclusively in the Parry's individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding. Any judgment upon the award rendered by the arbitrator may be entered in any court, state or federal, having jurisdiction thereof. Any Parry may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Any Party also may, without waiving any remedy under this Agreement, seek from any court located in Orange County, California having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that Party, pending the establishment of the arbitral tribunal (or pending the arbitral tribunal's determination of the merits of the controversy). All costs of JAMS or of the arbitrator shall be divided equally among the Parties, unless otherwise ordered by the arbitrator. In any arbitration,the arbitrator's award shall be supported by law and substantial evidence. Page 6 24. Counterparts. This Agreement may be executed in any number of counterparts, and in that event, each counterpart shall be deemed a complete original and be enforceable without reference to any other counterpart. 25. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions. 26. Effective Date. This Agreement shall be effective on the date first above written, and also shall be the date the Agreement is executed. DISTRICT: BY: Marc% Marcantorno TITLE: General Manager DATE: PARS: B1': TodAs TITLE: Chief Financial O icer DATE: Page 7 EXHIBIT IA SERVICES PARS will provide the following services for the Yorba Linda Water District Public Agencies Post- Employment Benefits Trust: 1. Plan Installation Services: (A) Meeting with appropriate District personnel to discuss plan provisions, implementation timelines, actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions/reimbursements/distributions; (B) Providing the necessary analysis and advisory services to finalize these elements of the Plan; (C)Providing the documentation needed to establish the Plan to be reviewed and approved by District legal counsel. Resulting final Plan documentation must be approved by the District prior to the commencement of PARS Plan Administration Services outlined in Exhibit IA, paragraph 2 below. 2. Plan Administration Services: (A)Monitoring the receipt of Plan contributions made by the District to the trustee of the PARS Public Agencies Post-Employment Benefits Trust ("Trustee"), based upon information received from the District and the Trustee; (B)Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the District and/or Trustee; (C) Coordinating the processing of distribution payments pursuant to authorized direction by the District, and the provisions of the Plan, and, to the extent possible, based upon District- provided Data; (D)Coordinating actions with the Trustee as directed by the Plan Administrator within the scope this Agreement; (E) Preparing and submitting a monthly report of Plan activity to the District, unless directed by the District otherwise; (F) Preparing and submitting an annual report of Plan activity to the District; (G)Facilitating actuarial valuation updates and funding modifications for compliance with GASB 45/75, if prefunding OPEB obligations; (H) Coordinating periodic audits of the Trust; (I) Monitoring Plan and Trust compliance with federal and state laws. 3. PARS is not licensed to provide and does not offer tax, accounting, legal, investment or actuarial advice. Page 8 EXHIBIT 1 B FEES FOR SERVICES PARS will be compensated for performance of Services, as described in Exhibit IA based upon the following schedule: An annual asset fee shall be paid from Plan Assets based on the following schedule: For Plan Assets from: Annual Rate: $0 to $10,000,000 0.25% $10,000,001 to $15,000,000 0.20% $15,000,001 to $50,000,000 0.15% $50,000,001 and above 0.10% Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula [Annual Rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month]. Trustee and Investment Management Fees are not included. Page 9 EXHIBIT 1 C DATA REQUIREMENTS PARS will provide the Services under this Agreement contingent upon receiving the following information: 1. Executed Legal Documents: (A) Certified Resolution (B) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust (C) Trustee Investment Forms 2. Contribution — completed Contribution Transmittal Form signed by the Plan Administrator (or authorized Designee) which contains the following information: (A) District name (B) Contribution amount (C) Contribution date (D) Contribution method (Check, ACH, Wire) 3. Distribution — completed Payment Reimbursement/Distribution Form signed by the Plan Administrator(or authorized Designee) which contains the following information: (A) District name (B) Payment reimbursement/distribution amount (C) Applicable statement date (D) Copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment (E) Signed certification of reimbursement/distribution from the Plan Administrator (or authorized Designee) 4. Other information pertinent to the Services as reasonably requested by PARS and Actuarial Provider. Page 10