HomeMy WebLinkAbout2020-61 - Terminate Joint Powers AgreementRESOLUTION NO. 2020-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, TO TERMINATE THE JOINT EXERCISE OF POWERS AGREEMENT
AND DISSOLVE THE JOINT POWERS EMPLOYEE BENEFIT AUTHORITY
EFFECTIVE AT THE END OF FISCAL YEAR 2020-21, JUNE 30, 2021
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS,
DETERMINES, AND DECLARES AS FOLLOWS:
WHEREAS, in November 1987, the City Council of the City of Costa Mesa and the
City Council of the City of Newport Beach adopted resolutions (Resolution Nos. 87-107
and 87-167, respectively) authorizing them to execute a Joint Exercise of Powers
Agreement ("Agreement") creating the Joint Powers Employee Benefit Authority
("JPEBA") to establish, manage, operate and maintain employee benefit programs; and
WHEREAS, effective January 1, 1988, the JPEBA established the Medical
Premium Retirement Benefit Plan (the "Plan"), the purpose of which was to promote
retention and employee morale by providing the ability to defer compensation to fund
post -retirement medical coverage premium costs; and
WHEREAS, on June 18, 1991, the City Council of the City of Garden Grove
adopted Resolution No. 7380-91, authorizing the addition of the City of Garden Grove as
a party to the Agreement, including participation in the Plan; and
WHEREAS, effective January 1, 2005, Section 409A was added to the United
States Internal Revenue Code of 1986 and imposed new regulations on nonqualified
deferred compensation plans after December 31, 2004; and
WHEREAS, effective January 1, 2005, the Plan was bifurcated as follows: with all
amounts deferred, earned and invested on or before December 31, 2004 being
grandfathered ("Grandfathered Amounts") under the law applicable to deferred
compensation before the enactment of Section 409A, and all amounts deferred, earned
and invested after December 31, 2004, regulated under Section 409A ("409A Amounts");
WHEREAS, the cities of Newport Beach and Costa Mesa discontinued further
contributions to the Plan effective January 1, 2005, with the City of Garden Grove ceasing
future contributions to the Plan effective December 31, 2006;
WHEREAS, the City of Costa Mesa distributed final reimbursements (assets) to
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participants in January 2018, and with no further carryforward balance, the Plan fund
closed; and
WHEREAS, Section 17.01 of the Agreement provides that the governing bodies of
the members of the JPEBA may determine that the public interest will not be served by
continuance of the Agreement; and
WHEREAS, Section 17.01 further provides that if the governing bodies of at least
three-quarters (3/4) of the members of the JPEBA adopt a Resolution of Termination
within any one hundred twenty (120) day period, then the Agreement shall be terminated
at the end of the fiscal year, defined by the Agreement as ending on June 30 of each
year; and
WHEREAS, the Costa Mesa City Council has determined that the public interest
will not be served by continuing the Agreement and desires to adopt this resolution to
terminate the Agreement and dissolve the JPEBA; and
WHEREAS, the governing bodies for the Cities of Newport Beach and Garden
Grove were presented with and approved similar resolutions to terminate the Agreement
on November 24, 2020 and December 8, 2020, respectively.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COSTA MESA AS FOLLOWS:
Section 1. The City Council adopts this resolution in order to terminate the
Agreement and dissolve the JPEBA effective at the end of Fiscal Year 2020-21, June 30,
2021.
Section 2. The City Council authorizes the City Manager or his or her designee to
take all steps necessary to dissolve the JPEBA, including but not limited to execution of
any and all documents required to dissolve the JPEBA.
Section 3. If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Resolution No. 2020-61 Page 2 of 4
Section 4. The City Clerk shall certify to the passage and adoption of this
resolution and shall enter it into the book of original resolutions.
PASSED AND ADOPTED this 15th day of December, 2020.
ATTEST:
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Brenda GreerQCity Clerk
APPROVED AS TO FORM:
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imberly Aall Barlow, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2020-61 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 15th day of December, 2020, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GAMEROS, HARLAN, HARPER,
REYNOLDS, MARK, AND FOLEY
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 16th day of December, 2020.
Brenda Green, Oy Clerk
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