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HomeMy WebLinkAboutRes 2002-83 - FY 2002-2003 - Tax Rate 0 (Zero) percent - Cal ® CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable Mayor and City Council Members z a c From: Cathy Green, Mayor Pro Tern Date: August 22, 2003 Subject: ITEM FOR AUGUST 25 2003, CITY COUNCIL MEETING— N �� coo r Review of City Attorney's Report Re: Adoption at the August 18, 2003 -C rn Council Meeting of Resolution No. 2003-62—Levying a Tax Rate of 4.4% , and Possible Motion to Reconsider Adoption of Resolution No. 2003-62 STATEMENT OF ISSUE: I am placing the matter of the possibility that there may be a need to reconsider the adoption at the last Council meeting of Resolution No. 2003-62 - `A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2003-04 to pay for Pre-1978 Employee Retirement Benefits"(to levy a tax rate at 4.4% that represents the cost of pre-1978 benefits). Because copies of previously adopted Resolution Nos. 4300 (adopted 8/2/76), Resolution No. 4392 (adopted 12/20/76) and Resolution of Intention No. 4623 (adopted 6/5/78)were provided to the City Council during the City Council meeting, time was not provided to Council to fully review these previously adopted resolutions to ensure that the action being requested of the City Council to adopt Resolution No. 2003-62 was fully presented and clarified prior to a Council decision to approve. The City Attorney will present a written report to the City Council and the public regarding the attached RCA's (Requests for Council Action) dated June 5, 1978 relative to Resolution No. 4623 and the RCA dated June 12, 1978 relative to the Resolution of Intention. Resolution of Intention No. 4623 adopted on 6/5/78 was effective June 5, 1978. The corresponding ordinance, which this Resolution of Intention announced, was adopted at a later date. I believe this needs to be clarified. I believe the City Attorneys written report will provide an explanation of this issue and will result in an understanding of this matter for the public and Council RECOMMENDED ACTION: Motion to: 1. Concur with the adoption of Resolution No. 2003-62 adopted on August 18, 2003 levying a tax rate at 4.4% that represents the cost of pre-1978 benefits; OR 2. If required, motion to re-consider adoption of Resolution No. 2003-62. G r f` August 22,2003 Page 2 Attachments: Resolution No. 4300 adopted 8/2/76 (distributed to Council on 8/18/03) Resolution No. 4392 adopted 12/20/76 (distributed to Council on 8/18/03) Resolution of Intention No.4623 adopted 6/5/78 (distributed to Council 8/18/03) Request for Council Action dated 5/23/78 re: Resolution of Intention No. 4623 Memorandum dated 6/5/78 to Council from City Administrator transmitting revised Resolution of Intention No. 4623 Request for Council Action dated 6/12/78 re: Ordinance No. 2293 Ordinance No. 2293 adopted 8/14/78 CG:ek xc: Ray Silver Connie Brockway Jennifer McGrath Bill Workman Clay Martin I RECEIVED FROM AND IvjADE A PAPT OF FHE RECORD AT TH COUNCIL MEETING O; q --(�-C� • OFFICE OF THE CITY CLERK RESOLUTION N0. 4300 CONNIE BROCKWAY,CITY CLERK A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING A:MEMORANDUM OF AGREEMENT WITH THE HUNTINGTON BEACH POLICE OFFICERS' CHAPTER, SERVICE EMPLOYEES INTERNATIONAL UNION, CITY DIVISION LOCAL_ 6603 AFL-CIO The City Council of the City of Huntington Beach hereby resolves as follows : The Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Police Officers ' Chapter, Service Employees International Union, City Division, Local 660, AFL-CIO, dated July 30, 1976, a copy of which is attached hereto and by reference made a part hereof, is hereby adopted. and' ordered implemented -in accordance with the terms and conditions thereof. PASSED AND ADOPTED by the City Council of the 1 City of Huntington Beach at a regular-me ng thereo'r on the 2nd day of August, 1976. Mayor Pro Tempore ATE -APPROVED AS TO FORM: City Clerk /SY. Nicholas Counter III ✓Labor Relations Counsel APPROVED AS TO CONTENT: • " g __CT Director of Pexsonn an Labor Relations MEMORANDUM OF AGREEMENT Between THE CITY OF HUNTINGTON BEACH, CALIFORNIA (hereinafter called CITY) and THE HUNTINGTON BEACH POLICE OFFICERS CHAPTER, SERVICE EMPLOYEES INTERNATIONAL UNION, CITY DIVISION, LOCAL 660, AFL-CIO (hereinafter called UNION) PREAMBLE WHEREAS, pursuant to California law, the City, acting by and through its designated representatives., duly appointed -by- the overnin body of City, and._the. representatives Y governing Y Y of the Union, a duly recognized employee association, have met and conferred in good faith and have fully communicated and exchanged information concerning .wages, hours and other terms and conditions of employment for the fiscal years 1976-1977; and 1977-1978. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the Union; and WHEREAS, the representatives of the City and the Union. desire to reduce their agreements to writing, NOW, THEREFORE, this Memorandum of Agreement is made, to become effective July 1, 1976, and it is agreed as follows: • -1- ARTICLE I REPRESENTATIONAL UNIT It is recognized that 'the Huntington Beach Police Officers` Chapter Service Employees International Union, City Division, Local 660, is the employee organization which has the right to meet and confer in good faith with the City on behalf of employees of the Huntington Beach Police Department within the following classification titles: A. Sworn Personnel: Police Captain Police Lieutenant Police Sergeant Identification Technician Police Officer Police Recruit B. Non-Sworn Personnel: Detention Officer Detention Officer Sr. Communication .Operator ARTICLE -III EXISTING CONDITIONS OF EMPLOYMENT Except as expressly provided herein, the adoption of this Memorandum of Agreement shall not change existing terms and • conditions of employment which .have been established in prior Memoranda of Agreement between City and the Association, and the Union. -2- • ARTICLE III SALARY SCHEDULES A. Effective July 1, 1976, the monthly salary rates for the classifications of Police Officer,Identification Technician and Police Recruit shall be increased by 7_$% The monthly salary rates for the remaining classifications of Sworn Personnel shall I be increased so as to maintain a 17% spread between the ranks - } to wit, from Officer to Sergeant, from Sergeant to Lieutenant, and from Lieutenant to Captain. B. Effective July 1,1976, the monthly salary rates for the classifications of Non-Sworn Personnel shall be increased by C. Effective, January 1; . 3977, the monthly salary rate for ' Step E of the classification of Police Officer shall be increased by $41. 00 per month and the monthly salary rates for Steps A through D _ shall be adjusted so as to maintain the existing percentage relation- ship between said Steps. The monthly salary rates for the classifications of Identification Technician and Police Recruit shall be adjusted by 2. 83%. The monthly salary rates for the re- maining classifications of Sworn Personnel _shall- be adjusted so as to- maintain the 17% spread from rank to rank as provided in- paragraph A above. D. Effective July 1, 1977, the monthly salary rate for S of officer shall Step E the classification of Police 0 �.c 1 be increased by $41. 00 per month and the monthly salary rates for Steps A through D • shall be adjusted so as to maintain the existing percentage .relation- -3- ship between said Steps. The monthly salary rates for the classifications of Identification Technician and :police -Recruit shall be adjusted by 2.8%. The monthly salary rates for the re- maining classifications of Sworn Personnel shall be adjusted so as to maintain the 17% spread from rank to rank as provided in paragraph A above. E. Effective October 1, 1977, the monthly salary rates for the classifications of Non-Sworn Personnel shall be increased 9 by 5%. F. Subsequent to July 1, 1977, and prior to October -1, 40977, the parties hereto shall conduct a survey to determine the verage monthly base salary rate for the Fifth :Step in the salary range for the classification of Police Officer in the following jurisdictions: Anaheim, Glendale, Inglewood, Pasadena, Torrance- and Riverside. G. Effective October 1, 1977, the monthly salary rate for Step E of the classification of Police Officer shall be adjusted to said average as determined by the aforesaid survey. Steps A through D of the Police Officer classification and the monthly salary rates of the remaining classifications of Sworn Per shall be adjusted so as to maintain the then-existing percentage relationship. ARTICLE IV • SALARY DIFFERENTIALS A. Employees assigned to duty as helicopter pilot -shall receive $150. 00 per month in addition to their applicable salary. -4- B. Employees assigned to duty as heliocopter observer shall • receive $75.00 per month in addition to their applicable salary. C.. Employees assigned to duty .as motorcycle officers shall receive .a differential of 8`.25 -percent of their salary rate as estab- lished in Article III above. D. Employees assigned to duty as a com munications ons operator senior shall receive a differential of 5% of their salary rate as communication operator as established in Article III above. i E. Non-sworn members required to work on a regularly assigned shift that occurs between the hours of 4 P.M. and midnight, or midnight and 8 A.M. , shall be paid a 'premium of five percent (5%) of the employee's base hourly rate for all work performed during said shift. Employees will be considered as assigned to the afternoon shift . (4 P.M. to. midnight) or_.the night shift- (midnight to 8 A.M- ) when five (5) or more hours of their regularly assigned shifts occur in the afternoon or night shift- as defined herein. ARTICLE V OVERTIME AND STAND BY PAY A. Except for the classification of Police Captain, employees shall receive time and one half their salary rate for all time -worked in excess of forty hours during any given payroll week; an employee may elect to receive compensatory time off (to be accrued to a maximum of 120 hours) in lieu of such overtime pay. B. Stand By Time; Employees required to be on stand by for a court appearance during other than their scheduled working hours • shall receive a minimum of two hours straight time pay (including the differentials identified in Article IV) for both morning and afternoon court sessions. C. Court Appearance Time: Employees. required to appear in. �urt during other than their scheduled working hours shall receive a minimum of three hours pay (including the differentials identified in Article' IV) at time and one half however, if such time overlaps , with: the employee s. scheduled working hours, said premium rate shall be limited to those hours occurring prior to or after the employee's scheduled work time. ARTICLE VI INSURANCE A. The City shall continue to provide group medical insurance to all employees in the unit with benefits comparable to those presently in effect for sworn personnel. B. Upon the completion of one year of service, employees hall have their group, insurance..premiums for dependent medical coverage . Paid by the. City. C. Effective July 1, 1975, sworn personnel who have been placed on industrial disability retirement subsequent to January 31, 1974, shall be eligible to continue to participate in the existing group medical insurance plan at- their own cost. Participation shall cease -upon :the earliest '.of the following: (1) the expiration of three calendar years following the date of the industrial disability retire- ment, or (2) the. retireee obtaining eligibility for coverage under a' comparable medical plan. Retirees who cease to participate may exercise any coversion privileges then in existence. D. Employees shall continue to be covered by dental plan benefits equal to those currently being provided by the City. As soon • as practicable, after adoption of this Memorandum of Understanding by the City, dependent dental coverage shall be added, based upon a super composite rate to be obtained by the City; provided, however, in the event said super composite rate results in an increase in premium in • excess of $10. 00 per month per employee, the amount of said excess shall be deducted from the monthly salary rates for each classifica- tion provided for in Article LII, E. 'City will provide $10,000. 00 of term life insurance without evidence of insurability other than evidence of working a full time duty and another: $10-,-000. 0:0 requiring-evidence of insurability, all at -the employee' s own cost. ARTICLE VII INCO14E PROTECTION PLAN The existing long term disability program provided by the City shall remain in effect for all personnel. This program provides, for each incident, pay up to sixty calendar days at the employee's . salary. rate (excluding- overtime-but- including any special pay 'in effect-at the time of illness or injury) . After the sixty calendar day period, the employee will be covered by an insurance plan paid for by the City which will provide 66-2/3 percent of the employee's salary rate (excluding overtime and any special pay) up to a maximum of $1,500.00 a month in accordance with the following: Disability Due Disability.-Due to Accident to Illness First 60 days Regular Pay Regular Pay Next 24 months 66-2/3% of base pay 66-2/3% of base pay up to maximum benefit up to maximum of $1500 monthly benefit of $1500 monthl: To P 3%65 age 66-2 u to maximum None • / benefit of $1500 monthly Sys and months refer to calendar days and months. Benefits under the- f Plan are integrated with Workmen' s Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability- defined as the inability to perform all of the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Plan will provide 66-2/3€ of difference• between regular pay and pay of f other occupation. Survivors benefit continues plan payment for three months beyond Oath. ARTICLE -VIII = RETIREMEN The City will provide, for all sworn personnel represented by the Union whose retirement is effective or whose death occurs after July 1, 1978, Public Employees Retirement System retirement benefits computed by utilizing the two percent at age fifty formula commonly referred .to as the California Highway Patrol Retirement Plan. ARTICLE IX POLICE EDUCATION INCENTIVE PLAN The existing Police -Education Incentive Plan shall be maintained or sworn personnel as follows: -8- Continuing Ed- Education ' Maximum Years of ucation College 'Incentive Post College Training HBPD Units Required Monthly Level Cert. Units Points Service Annually Amount I Inter 30 10 l - 6 $ 66. 1C II Inter 60 20 1 3 $ 99.1s III Adv 90 30 2 .3 $ 132. 22 IV Adv 120 3 3 $ 198. 3E V Adv 150 3 0 $ 198.3E Stipulations 1. Monthly amount increases/decreases based on Los Angeles- Long Beach Consumer Price Index. September 1 adjustment based on July all items figure. 2. College major shall be Police Science, Criminology, Political Science', -Sociology, Law, Business Administration';- Public Administration, Psychology or closely similar field as approved by Chief of Police and Education Committee. 3. Initial eligibility must be approved by Chief of Police. acceptable si ned b An ce table earl performance Chief of P Y Y Pg Y Police, is required. No incentive taken away without just cause. 4. Training points approved by POST may be substituted. for college- units, on the following schedule: 10 of 30, 20 of .60 30 of 90. 5. Pay to be effective first month following approval. 6. After 120 units of B.A. POST approved training points may be substituted for college units without limit. 7. Repeat college courses credited as determined by the • college. -9- • 8 . Repeat POST approved seminars, institutes, etc. credited . as determined by the Chief of Police. 9 . All college units require grade of . "C" or better .to .. qualify. 10 . Obtaining transcripts or other acceptable documentation is employee responsibility. 11. Employee may choose between POST training points or college units where a choice is available. No change allowed once choice is made, no double credit allowed. The existing non-sworn education incentive plan shall be maintained as follows : 1, Payment shall be made on the basis of One Dollar ($1.00) per onth _for each completed college semester unit or its equivalent, limited 0 8 25� e t b_sic monthl a As an alter - native, percent of the employee s y pay. _ r native, the CITY may reimburse the employee for tuition only on request of the employee and approval of the Department Head. Said payment for tuition shall be subject to all other regulations herein contained and duplicate payment for courses under this Plan shall not be authorized. 2. Payment shall be made only for that education above and beyond the education requirements for the employee's classification. 3 . Payment shall begin on .the first of the. month following approval by- the Education Committee. 4. The Education Committee shall be composed of one member appointed by the Union, one member from the Finance Department and one member from the Personnel Department. • . -10- • 5 . 'An employee must be employed by the City for- one year to be eligible, and only those unitsfor which credit. is received after the date of employment shall be eligible for payment. All courses and credit shall be taken on the employee's own `time and the employee's own expense. 6 . Transcripts and other proof of credits shall be the sole responsibility of the employee. Transcripts and grade cards shall be forwarded to the Education Committee for review and consideration. 7 . When an employee is promoted or transferred, his pay, if any, under the Education Pay Plan shall be -reviewed to determine continuing eligibility. 8 . .. Semester units shall be the basis for payment, with 18 hours • of -instruction `_the. ecuivalent of one semester unit, and one: quarter unit shall be the equivalent of two-thirds (2/3) of a semester unit. 9 . Questions concerning the Education Committee' s determination shall be referred to the Committee. An employee who is not satisfied with the Committee's determination shall present his problem to the Education Committee for review. Determination of the Education Committee may be subject to the Grievance Procedure. 10. Documents and questions for the Education Committee shall be referred to the Personnel Director for. submission to. the Committee. 11. All grades must -be a letter grade of "C" or better. In a "Pass/Fail" grading system, a "Pass" is required and in a "Credit/No Credit" grading system, .a "Credit" is required to be eligible for approval. • 12 . The Education Committee may approve courses in advance to insure that payments will follow completion. ARTICLE- X SICK LEAVE PAYOFF A. As of January 25 , 1974, all sick leave accumulation for sworn personnel was frozen for purposes of payoff upon termination. Nothing will be paid for accumulation up to 480 hours . Accumulated hours from 480 to 720 will be paid off at 45% of their value as of January 25, 1974. Hours in excess of 720 will be paid off at 70% of their value as of January 25 ' 1974. The payoff for accumulated sick leave as described above may be aken either: 1. Upon t p ermination, nor 2. One-third of the amount payable as of January 25 , 1974 may be taken each July 1 of three successive years , starting July 1, 1974. If the total amount payable to an individual is less than $1,500. 00 , he may elect to take a portion of amount payable to him up to $500 . 00 each July 1 until total amount payable to him has been paid. Twenty-five percent of any sick leave accumulation under 480 hours an individual may have as of January 25., . 1974 , will be converted to compensatory time--off: -Such compensatory time will be permitted as a separate and additional amount in excess of the 120 hours maximum accumulation permitted under Personnel Rule 14-8 . Any compensatory time taken will draw from this additional amount available first until it is Wepleted before any is taken under the maximum accumulation permitted • under Personnel Rule 14-8 . If any of this additional- amount is still remaining upon termination, it will be paid off at its current hourly value as of January 25 , 1974 . Any amount taken priorto termination will be taken at the employee's earning rate at the time such converted compensatory time off is used. B. All non-sworn personnel whose classifications were added to the police unit, shall have existing sick leave frozen as of June 30, 1976 , at the rate in effect as of that date. Any payoff of such accumulated sick leave shall be in accordance with the provisions of Personnel Rule 14-8 as of June 30 , 1976. ARTICLE XI FAMILY ILLNESS LEAVE Sick leave maybe used. for an absence due. to illness .of the employee' s spouse or child when the employee's presence is required at h6 e, provided that such absences shall be limited to fire days per calendar year. ARTICLE XII BEREAVEMENT LEAVE Employees shall be entitled to bereavement leave not to exceed three working 'days .per .calendar year in instance of death in.-the i=ed_ate family. Immediate family is defined as father, mother, sister, brother, spouse or children of the employee. • -13- 0 • ARTICLE XIII TEN-PLAN The work schedule agreed to by the City and the Union during negotiations has been fully implemented: and shall remain in effect during the life of this Agreement unless changes are agreed to by the -Union and the City. ARTICLE XIV VACATIONS Anniversary Date: For the purpose of computing vacation, an employee' s anniversary date shall be the most recent date on which he commenced full-time, City employment. Annual Vacation: The purpose of annual vacation is to provide a est. period :which will enable. each .employee to return to work -physically and mentally refreshed. - All employees shall be- entitled to annual vacation with pay EXCEPT the following: (a) Employees who have not completed six (6) months continuous service with the City. (b) Employees who work less than full-time. (c) Employees on leave of absence. Vacation Allowance: Permanent employees , in City service, having an average work week of forty (40) hours, shall accrue annual .vacatio' ns with pay in accordance with the following: (a) For the first five (5) years of continuous service vacation time will be accrued at the rate of 96 hours per year. • -14- • (b) ' After five (5) years of continuous service vacation time will be accrued at the rate of 112 hours per year. (c), Ater 'ten (10) :years of continuous service to the completion of fifteen years of continuous service vacation time will be accrued at the rate of 128 hours per year. (d) After fifteen (15 ) years of continuous service vacation time will be accrued at the rate of 160 hours per year. - No vacation may be taken until the completion of six (6) months of service. Permanent , part-time employees assigned a work schedule of less than 2 ,080 and more than 1,040 hours per year shall receive vacation in one-half the amounts set forth above. Vacation - When Taken : No employee shall be permitted to take a vacation i'n excess ..of 'actual time earned and vacation shall not 'be accrued in excess of 320 hours. Vacations shall be taken only with permission o= the department head; however, the department head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. Terminal Vacation Pay: No employee shall be paid for unused vacation other than upon termination or employment at which time such terminating employee, shall receive compensation at his. current salary rate for all unused, earned vacation. to which he is entitled up to an including the effective date of his termination. Receipt of Vacation Pay: Upon two week written notification to the Finance Director, each employee shall be entitled to receive his earned vacation pay, less deductions , in advance, prior to his regular • scheduled annual vacation. Such advancements are limited to one during each employee' s anniversary year. ARTICLE XV HOLIDAYS Employees represented by the Union and actively employed by the City, in addition to regular compensation, shall receive each month, pay for one-twelfth of the total holiday hours earned for the year based on eight hours per holiday. They shall be entitled to an additional eight hours of pay at their regular rate for special holidays observed by the City beyond those identified in the Personnel Rules of the City. • ARTICLE XVI UNIFORMS The City shall continue the existing practice of providing and replacing uniforms and safety equipment. ARTICLE XVII MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the Chief of Police retains all rights , powers ;and authority with respect to the management and direction of .the. performance of -police-services and the work forces performing such services, provided that nothing herein shall change the Cityts obligation to meet and confer as to the effects of any such management decision upon wages , hours and terms and conditions •of employment or be construed as granting the Chief of Police or the City i the right to make unilateralchanges in wages , hours , and terms and conditions of. .employment_. Such rights. include, but :are not limited _ to, consideration of the merits , necessity, level or organization of police services , including establishing manning requirements, overtime assignments , number and location of work stations , nature of work to be performed, contracting for any work or operation , reasonable employee performance standards , including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services . ARTICLE XVIII - TERMS :OF MEMORANDUM OF �AGREEMENT This Memorandum of Agreement 'shall be in effect for a term of twenty-seven months, commencing on July 1 , 1976 , and ending at midnight on September 30 , 1978 . No further improvements or changes in the salaries and monetary benefits of the employees represented by the Union shall take effect during the term of this Agreement and the Union expressly waives any right to request any improve- ments or changes in salaries or monetary benefits for the employees represented by -the Union which ,would take .effect prior- to October. l,' 1978 , and the City of Huntington Beach, through its representatives , shall not be required to meet and confer as to any such request. • ARTICLE XIX • EFFECTIVE DATES FOR INSURANCE BENEFITS FOR NON-SWORN PERSONNEL r The insurance benefits added herein for non-sworn personnel by virtue of Article VI , paragraphs A, B, D and E, and Article VII shall be effective August 1; 1976 . ARTICLE XX CITY COUNCIL APPROVAL of the City It is the understanding y and the Union that this Memorandum of Agreement is of no force of effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this I Memorandum of Agreement this -30th day of- July, -1976 DATED:, 1976 CITY OF HUNTIKGTON BEACH 00, Ci y A inist//rator By 6 + Director of Personn 1 an Labor Relations APPROVED AS TO FORM: HUNTINGTON BEACH POLICE OFFICERS' CHAPTER, SERVICE EMPLOYEES INTER- NATIONAL UNION, CITY DIVISION, LOCAL 660 , AFL-CIO oe Nicholas- Counter III abor Relations Counsel By By'D,V) B • B CITY OF HUNTINGTON BEACH • PERSONNEL DEPARTKW POLICE OFFICERS' ASSOCIATION SALARY SCEIEwLE Effective July 1, 1976 "A" Step Tob No. Title Range- A B C D E Hrly. Rate 4334 Police Recruit 142 972 5.61 . 4332 Police Officer 148 1146 1210 1278 1349 1428 6.61 4330 Identification Tech. 152 1279 1350 1429 .1508 1593 7.38 2360 Police Sergeant 154 -1341 1419 1497 1S81 1671 7.74 1360 Police Lieutenant 159 1570. . 1656 1'753 1851 1955 9'.06 0330 Police Captain 165 1835 1939 2050 2164 2287 10:59 6370 Communications Oper. 1391 941 '991 1044 1099 S.16 4325 Detention Officer 143 -992 1045 1100- 1160 1223 S.72 4326 Detention Offic.. Sr. 146 1074 1132 1192 1257 1327 6.20 Effective January 1, 1977 4334 Police Recruit 142 1000 5.77 4332 ' Police Officer 148 1179 1245 1315 1388 1469 6.80 4330 Identification Tech. 152 1316 1389 1470 1551 1638 7.59 2360. Police Sergeant 154 1380 1460 1540 . - 1627 1719 7.96 1360 Police Lieutenant 159 1614 1703 1803 1904 2011 9.31 0330 Police Captain 165 1889 1996 2110 2227 2353 10.90 6370 Coma mications Oper.. 139 - 894 941 991 1044 1099 5. 16 • 4325 Detention Officer 143 992 1045 1100 1160 1223 5.72 4326 Detention Offic. Sr. . 146 1074 '1132 1192 1257 1327 6.20 • Res. No. 4300 • STATE-OF CALIFORNIA -STA ) COUNTY OF ORANGE ) ss: _ CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, .. qualified City. Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the" City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 2nd day of August 1976 , by the following vote: AYES: Councilmen: Bartlett, Pattinson, Coen, Gibbs, Siebert, Shenkman • NOES: Councilmen; . None ABSENT: Councilmen: Wieder City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California • It'lf h'=:,E11�ED FROM _ AND MADE A PART OF THE REC D A Couigc L MEETING OF 03 • OFFICE OF THE CITY CLERK RESOLUTION NO. 4392 CONNIE BROCKWAY,CITY CLERK A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AKD IMPLEMENTING A MEMORANDUM OF AGREEMENT WITH THE HUNTINGTON BEACH'MARINE _ SAFETY OFFICERS' ASSOCIATION - . The Huntington Beach City Council does hereby resolve as follows: The Memorandum of Agreement between the City of Huntington ' Beach and the Huntington Beach Marine Safety Officers ' Associa- tion effective July 1, 1976 , a copy of which is attached hereto and by reference made .a part hereof, is hereby adopted and ordered implemented in accordance with the terms and conditions thereof PASSED AND ADOPTED- by- the .Huntingtdn Beach City. Council at a regular meeting thereof held ZtheLayofecember, 1976. ATTEST: Mayor Pro Tempore ity erk . APPROVED AS TO FORM: APPROVED AS TO CONTENT: tNifiholas Counter II abor Relations Counsel C' y Administrator • APPROVED BY INITIATING DEPARTMENT: a 7, L, Dir . Personnel/La or Relations MEMORANDUM OF AGREEMENT BETWEEN • THE CITY OF HUNTINGTON BEACH , CALIFORNIA (Hereinafter called CITY) AND MARINE SAFETY OFFICERS ASSOCIATION (Hereinafter called ASSOCIATION) PREAMBLE WHERERS ,pursuant to California law , the City, acting by and through its designated representatives , duly appointed by the governing body of said City , and the representatives of the Association , a duly recognized employee association , have met and conferred in good faith and have fully communicated and exchanged information concerning wages , hours and other terms and conditions of. employment_ • WHEREAS, except as -ot_herwise expressly provided' herein , all terms and conditions of this agreement shall apply to all employees represented by the Association ; and WHEREAS , the representatives of the City and the Association desire to reduce their agreements to writing , € NOW, THEREFORE , this Memorandum of Agreement is made , to become effective July 1 , 1976 , and it is agreed as follows : ARTICLE- I REPRESENTATIONAL UNIT It is recognized that the Marine Safety Officers Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of the employees of the Huntington Beach Harbors and Beaches Department within • the following calssification titles : -1 - 0 Marine Safety Lieutenant . Marine Safety Boat Operator Marine Safety Sergeant Marine Safety Officer _ARTICLE II EXISTING CONDITIONS -,OF _'EMPLOYMENT Except as expressly provided herein , the adoption of this Memorandum of AGreement shall not change existing terms and conditions of employment which have been established in prior Memorandum of Agreement between City and the Association. ARTICLE III SALARY SCHEDULES Effective July 1 , 1976 MONTHLY SALARY Title Range A B C D E Marine. Sfty Of.fi c 547-- 1063. 1.120 -1182-. -1248 1:319 Marine Safety Sgt 552 121-4 1284 1.357 1433 1513 Marine Sfty Lieut 556 1357 1433 1513 1600 1690 Effective July 1 , 1977 MONTHLY SALARY Title Range A B C D E Marine Sfty Offi c:: 547 1137 1198 1265 1335 1411 Marine Safety- Sgt 552 1299 1374 1452 1533 1619 Marine Sfty Lieut 556 1452 1533 1619 1712 1808 ARTICLE IV SALARY DIFFERENTIALS A. Employees. assigned to duty on the Search and Rescue • Team shall receive $50 per month in addition to their applicable salary. B. Marine Safety Officers assigned to summer supervision -2- duty shall receive $50 per month in addition to their applicable • sal ar-y. . C. Each Marine Safety Officer assigned to duty as Boat Operator for six months shall receive a differential of 8 . 50% over the sal a.- rate of Marine Safety Officer for. the - period of time so assigned. ARTICLE V OVERTIME AND STAND BY PAY ! A. Employees shall receive time and one half their salary rate for all time worked in excess of forty (40) hours during any given payroll week . Employees may elect to receive compensa- tory time off (to be accrued to a maximum of 120 hours) in lieu of such overtime pay. B. Stand By Time : Employees required to be on stand by - ahan .:�t r fora court appearance during other- heir. scheduled working hours shall -receive a mi ni_mum of. two . (2)' _ hours straight time pay (including the differentials identified in Article IV) for both morning and afternoon court sessions . C. Court Appearance Time : Employees required to appear in court during other than their scheduled working- hours shall receive a minimum of three (3) hours pay (including the differen- tials identified in Article IV) at time and one half. ARTICLE VI. INSURANCE A. The City shall continue to provide group medical insurance to all employees with benefits comparable to those presently in effect. B . Upon - the completion of three (3) years of service , employees shall have their group insurance premiums for dependent medical coverage paid by the City. -3- C. Effective July 1 , 1975 , employees who have been placed on industrial disability retirement subsequent to January 31 , 1974 shall be eligible to continue to participate in the existing group medical insurance plan at their own cost. _ Participation shall cease upon the earliest` of the following : (1 ) the expiration of three ( 3) calendar years following the date of the industrial disability retirement, or (2) the retiree obtaining eligibility for coverage under a comparable medical plan. Retirees who cease to participate may exercise any con- version privileges then in existence . D. Employees shall continue to be covered by dental plan benefits equal to those currently being provided by - the City. Effective January 1 , 1977 , employees and dependents shall be covered under a den6-al plan comparable to that provided for employees under Resolution 4.300 based ` upon . a super composite rate to be obtained by the City; provided, however , in the event said super composite rate results in an increase in premium in excess of $10 . 00 per month per employee , the amount of said excess shall be deducted from the monthly salary rates for each classi - fication provided for in Article III . ARTICLE VII INCOME PROTECTION PLAN The existing long-.term disability program provided1emplogees by the City shall remain in effect. This program provides , for each incident , pay up. to sixty (60) calendar days at the employee ' s salary rate (excluding overtime but including any special pay in effect at the time of illness or injury) . After the sixty (60) • calendar day period , the employee will be covered by an insurance plan paid for by the City which will provide 66-2/3 percent of the employees ' s salary rate (excluding overtime and any special -4- pay) up to a—maximum of $1 ,500 a month in accordance with the following : - Disability Due Disability Due • to Accident to Illness First 60 days Regular pay Regular Pay Next 24 months 66-2/3% of base pay 66-2/3% of base pay up - to a maximum up . to -maximum benefit of $1 ,500 benefit of $1 ,500 monthly monthly To age 65 66-2/3% up to None maximum benefit of $1 ,500 monthly Days and months refer to calendar days and months . Plan integrated with Workmen ' s Compensation , Social Secur- ity and other non-private program benefits to which entitled . Di sabi'l i ty defi n`ed.. as the i.nab'i l i ty to 'perform alll of the duties of regular occupation during two (2) years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education , training or experience . Rehabilitation benefits are provided in the event the indi - vidual , due to disability , must engage in other occupation . Plan will provide 66-2/3% of difference between regular pay and pay of other occupation. Survivors ' benefit continues plan payment for--thr.ee (3.) months beyond death . ARTICLE VIII RETIREMENT The City will provide , for all employees represented by the Association whose retirement is effective or whose death occurs • after July 1 , 1978, Public Employees Retirement System retirement -5- benefits computed by utilizing the two percent at age fifty formula commonly referred to as the California Highway Patrol Retirement Plan. ARTICLE IX EDUCATIONAL"-. INCENTIVE PLAN The existing Marine Safety Officers ' Education Incentive Plan shall be maintained as follows : EDUCATION MAXIMUM CONTINUING EDUCATION INCENTIVE COLLEGE TRAINING YEARS OF COLLEGE UNITS MONTHLY LEVEL UNITS POINTS _ . SERVICE REQUIRED ANNUALLY AMOUNT 1 30 10 1 6 $ 50 2 60 20 2 3 75 3 90 30- 2 3 100 4 120 3 3 150 5 150 4 0 150 STIPULATIONS : 1 . College major shall b-e Marine Science, Police Science , Business Administration , Oceanography, Fire Science. 2. Initial eligibility must be approved by the Director of Harbors and Beaches . An acceptable yearly performance evaluation , signed by the Director of Harbors and Beaches , is. required . No incentive taken away without just cause. -3. Training points approved by the Director maybe substituted for college units , on' the following schedule: 10 -of 30 ; 20 of -60 ; 30 of 90. Each twenty hours completed of approved seminars , institutes , etc. are credited with one training point. 4. Pay to be effective on the first of each month following approval . 5. After 120 units or B.A, approved training points may be substituted for college units without limit. -6- 6 . Repeat college course credited as determi-ned by -the college . 7. -Repeat approved seminars , institutes , etc. credited as determined by the Direct-or of Harbors and Beaches . 8. All college units require grade of "C" or 'better to qualify. .9 Obtaini.ng transcripts Or other acceptable documentation is each employee ' s responsibility. 10 . Employee- may choose between approved training points or college units where a choice is abailable . No change allowed once choice is made , no double credit allowed . ARTICLE X _ SICK LEAVE As of July 31 , 1974 , all sick leave accumulation was frozen for purposes of payoff upon termination and no additional time will be accumulated. Salary continuation for approved sick -leave -is covered under Arti.cl a VI I .above.: ARTICLE XI - FAMILY ILLNESS LEAVE Sick leave mjty be used for an absence due to illness of the employee's spouse or child when the employee ' s presence is required at home , provided that such absences shall be limited to five (5) days per calendar year. ARTICLE XII BEREAVEMENT LEAVE Employees shall 'be entitled to Bereavement Leave not to exceed three (3) working days per calendar year in instance of death in the immediate family. Immedi-ate family is defined as father, mother, sister , brother , spouse , children , stepfather , stepmother , stepsisters , stepbrothers , mother-in-law, father-in-law , or stepchildren . -7 - • ARTICLE XIII VACATIONS Anniversary Date : For the purpose of computing vacation , an employee ' s anniversary date shall be the most recent date on which he commenced full -time , City employment. Annual Vacation : The purpose of annual vacation is to pro,- vide a rest period which will enable. each employee to return to work physically and mentally refreshed . All employees shall be entitled to annual vacation with pay EXCEPT the following : (a) Employees who have not completed six (6) months con- f tinuouse service with. the City. (b) Employees who work less than full -time. (c) Employees on leave of absence . Vacation Allowance : Permanent employees in City service, ha,vi ng an- average work week .of :forty (40) hours , _`shall accrue annual vacations with pay in accordance with the following : (a) For the first five (5) years of continuous service vacation time will be accrued at the rate of 96 hours per year. (b) After five (5) years of continuous service to the completion of ten (10) years of continuous service , vacation time will be accrued at the rate of 112 hours per year. fi (c) After ten (10) years of continuous service to the com- pletion of fifteen (15) . years of cont inuous service vacation time will be accrued at the rate of 128 hours per year. (d) After fifteen (15) years of continuous service , vacation time will be accrued at the rate of 160 hours per year. • No vacation may, be until the completion of six (6) months of service. Permanent , part-time employees assigned a work schedule of less than 2 ,080 and more than 1 ,040 hours per -8- t year shall receive vacation in one-half the amounts set forth above. • C Vacation - When Taken : No employee shall be - permitted to s of actual time earned take a vacation in excess and vacation shall not be accrued in excess of 320 hours . Vacations shall be taken only with permission of the department head ; however , 'the depart- ment head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. Terminal Vacation Pay : ` No employee shall be paid for unused vacation other than upon t ermination of employment at which time R such terminating employee shall receive compensation at his cur- rent salary rate for all unused , earned vacation to which . he is entitled up to and including the effective date of his termination . Receipt of Vacation Pay: Upon two week written notification to the -Finance --Director , - each employee' shall"be. entitled to.` re- ceive his earned vacation pay, less deductions , in advance , prior to his regular scheduled annual vacation . Such advancements are limited to one during each employee ' s anniversary year . ARTICLE XIV HOLIDAYS Employees represented by the Association and actively employed . by the .City, in. addition to regular compensation, shall receive each- month , pay for one twelfth of the total holid.ay hours earned for the year based on eight (8) hours per holiday. They shall be entitled to an additional eight (8) hours of pay at their regular rate for special holidays observed by the City beyond those identified in the Personnel Rules of the City. . ARTICLE XV UNIFORMS The City shall continue the existing practice of providing and replacing uniforms and safety equipment . • ARTICLE XVI • EXCHANGE OF SCHEDULE The Department shall allow employees to exchange work schedules and shifts among, those of equal rank . and ability,, provi-ding prior approval is -ob.tained` f rom the Aepartment D_irec for and the payback of the shift exchange is completed within sixty (60) calendar days. ARTICLE XVII MANAGEMENT RIGHTS Except as expressly abridged or modified herein , the Director of Harbors and Beaches retains all rights , powers and authority with respect to the management and direction of the performance of marine safety services and the work forces performing such services , provided that nothing herein shall • change the Ci ty's ob-1 i gati on to. meet -and confer. as. to the effects of any - such.. management* decision upon wages,- hours and - terms and conditions of employment or be construed as granting the Director or the City the right to make unilateral changes in wages , hours , and terms and conditions of employment . Such rights include , but are not limited to , consideration of the merits , necessity , level or organization of City services , including establishing manning requirements , overtime assign- ments , number and location of work stations , nature of work -to be performed, contracting for any work or operation ;' reasonable- employee performance standards , including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services . • ARTICLE XVIII TERMS OF MEMORANDUM OF AGREEMENT This Memorandum of Agreement shall be in effect for a term -10- of twenty-seven months , commencing on July 1 , 1976 , and ending at midnight on September 30 , 1978. No further -improvements or changes in the salaries and monetary benefits. of the employees _. 'represented by the Association shall- take effect Auring :the` term. of this Agreement and the Association expressly waives any right to request any improvements or changes in salaries or monetary benefits for the employees represented by the Association which would take effect prior to October 1 , 1978 , and the City of Hunt- ington Beach , through its representatives , shall not be required to meet and confer as to any such request. ARTICLE XIX CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Agreement is of no. force- or e`ffec.t whatsoever • unless and' unti l adopted by Resol uti on'-of the City 'Counci l - of the City of Huntington Beach . IN WITNESS WHEREOF , the parties hereto have executed this Memorandum of Agreement this 20th day of December , 1976 . DATED: _,1976 CITY OF HUNTINGTON BEACH B C ',ty. dministrato:r By APPROVED AS TO FORM: Director of—PersonnErl a Labor Relations MAPINE SAFETY OFFICERS ' ASSOCIATION J Nich las Counter III By _1 &V'44�1 RLks11� L(Aor Relations Counsel By By -11 - �. 11 10 6 • CITY OF HUNTINGTON BEACH PERSONNEL.-.DEPARTMENT MSOA PROPOSAL . 7-1-76 Salary increase 7% .$8 , 600 7 . 0 1-1-77 Dependent dental to $10/mo max $ 360 .. 41 1-1-77 Boat Operator 8 . 5% diff'e:rential instead of separate class . 2 boat operators paid 6, mos . each. 1-1-77 Shift trade included in Memorandum • $8 ,960 7-1-77 .Salary increase 7% $9 , 200 7 . 0o (12 mos . cost) 9-30-78 Contract termination $9 , 200 7 . 0 Res. No, 4392 • STATE OF CALIFORNIA } COUNTY OF ORANGE ) ss: - } CITY OF HUM'INGTON BEACH ) I,,,ALICIA M. WEN-TWORTH,. the duly elected, qualified City - Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City. Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 2Oth day of December 19 76 , by the following vote: AYES: Councilmen: Bartlett, Pattinson, Coen, Gibbs, Siebert, Shenkman NOES: Councilmen; • None ABSENT: Councilmen: Wieder City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California f RECEIVED FROM QLAIL i5kCA472/1 AND MADE A APART OF THE RECORD AT THE COLINCiL IEETING OF IZZ OFFICE OF THE CITY CLERK CO NNIE BROCKWAY,CITY CLERK RESOLUTION NO. 4623 '3� A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON- BEACH .TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES ' RETIRE- MENT SYSTEM AND THE CITY OF HUNTINGTON BEACH WHEREAS, the Public Employees ' Retirement law permits the participation of public agencies and their employees in the Public Employees ' Retirement System by the execution of the contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and One of the steps in the procedures to amend this contract is the adoption by the legislative body of the public agency of the Resolution giving notice of its intention. to approve an amendment to _said -contract, :which Resolution shall contain 'a summary of the change proposed to said contract; and The following is a statement of the proposed change : Section 21252.01 (Full 2% at age 50) for police and lifeguard members . NOW, THEREFORE, be it resolved that the City Council of the City of Huntington Beach gives , and it does hereby give notice of intention to approve an amendment to the contract between the said City Council and the Board of Administration of the Public Employees ' Retirement System, a copy of said -amendment being attached hereto. -as- an exhibit , and by this reference made a part hereof. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of June, 1978. ATTEST: City Clerk Mayor 6/5/78 1. APPROVED AS TO FORM: City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: ity Administrator Director of Per onnel and Labor Relations 2 . 11 ONLY AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION ' PUBLIC EMPLOYEES' RETIREKENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH The Board of Administration, Public Employees' Retirement System, herein-.. after referred to as "Board", and the governing body of above public agency, hereinafter referred to as "Public Agency", having entered into a contract under date of October 27, 1945, effective October 1, 1945, and as amended effective January 1, 1950, March 1, 1952, November 1, 1957, March 1, 1958, October 1 , 1961, January 1, 1971, January 12, 1974, April 18, 1975, February 21, 1976, August 71 1976, and September 17, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective April 18, 1975, and hereby replaced by the following paragraphs number 1 through 10 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement .Law shall have the meaning as defined therein. . unless.,otherwise specifically provided. 'Normal retirement age" shall mean age 60 for miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System froo and after October 1, 1945, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except such as by express provisions thereof apply only on the election of contracting agencies. 3. Employees of Public Agency in the following classes shall become members of said. Retirement System except such in each such class as are excluded by law or this agreement:. a. Local Firemen (herein referred to as local safety members) ; b. Local Policemen (herein referred to as local safety members); c. Lifeguards on ocean beaches (included as local safety members) ; d. Employees other than local safety members (herein referred to as . miscellaneous members). In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 4. The fraction of final compensation to be provided for each year of • credited prior and current service as a miscellaneous- member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60) . 5. The fraction of .final compensation to be provided for each .year of credited prior and current service as a safety member shall be determined in accordance with Section 21252.01 of said Retirement Law (22 at age 50) . 6. The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). b. Section 20019.3 (providing for the inclusion of lifeguards on ocean beaches as local safety members) . c. Sections 21263 and 21263.1 (providing upon the death of a member who retired for service or disability for continuance of a post-retirement survivor allowance to certain survivors) for local safety fire members. d. "Local Policemen" shall include persons assigned to. identification. and communication duties in thePolice Department who are not now local safety members and who were in such employment on August 4, 1972, who elect safety membership within sixty days of the effective date of this amendment. e. Section 20930.3 (allowing public service credit under the provisions of Chapter 1437, Stats. 1974, for up to four years of continuous military or merchant marine service). f. Section 20024.2 (defining "final compensation" on the basis of average compensation earnable during the year immediately preceding retirement or any other one year period elected b the member) for local safety members. 7. Public Agency, in accordance with Section .20740, Government Code , ceased to be an "employer" for purposes of Chapter 6 of the Pub is Employees' Retirement Law effective on April 18, 1975. Accumulated contributions of Public Agency as of the aforementi ned date shall be fixed and determined as provided in Section 20759 Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held y the Board as provided in Section 20759, Government Code. • CON-702-2 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said. Retirement System: (1) 0.112 percent until June 30, 2000, on account of the liability for prior service benefits. (2) 8.382 percent on account of the liability for current service benefits. (3) 0.201 percent on account of the liability for the 1959 Survivor Program. b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement System: (1) 0.006 percent until June 30, 2000, on account of the liability for prior service benefits. 1 Y (2) 22.629 percent on account of the liability for current service benefits. c. A `reasonable amount per annum, as fixed by the Board to cover, the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodical investigation and valuations required by law. d. A reasonable amount as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to .adjustment by Board on account of amendments to the Public. Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodical, investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with . subsequent remittances, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. Be This -amendment shall be attached to said contract and shall be effective on • the day of , 19 Witness our hands this day of , 19 BOARD.OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF HUNTINGTON BEACH BY BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to form: i Legal Office, PERS Clerk CON-702-4 Res. 0 4623 • STATE OF CALIFORNIA ) COUNTY OF ORANGE CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City. Council of the City of Huntington Beach is -seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the ". 5th day of June , 19 78 by the following vote: AYES: Councilmen: Thomas, MacAllister, Bailey, Mandic, Siebert, Shenkman NOES Councilmen: None ABSENT: Councilmen: Pattinson City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California REQUEST FOR CITY COUNCIL ACTION Submitted by Edward H. Thompson Department Personnel Date Prepared May 23 , 19 78 Backup Material Attached MX Yes El No Subject Resolution of Intent to Amend the Contract between the City of Mint-ingtnn Raarh and tha Rihlir FTnp1nyPPa RatiramPnt S atam_ City Administrator's Comments APPRBi F,D BY CITY COUNGti. APP rove as recommended. - �-- - TY1 SIiMM V Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions: - Statement of Issue The City has not yet amended its contract with the Public Employees' Retirement System to provide the retirement benefits agreed upon in the current Memorandums of Agreement with the Police Officers' Association and the Marine Safety Officers' Association. Recommended Action Adoption of the attached Resolution of Intent to amend the City's contract with the Public Employees' Retirement System. Analysis The contract amendment is needed to implement Article 8 of the current Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Police Officers' Association (Resolution 4300) and Article 8 of the current Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association (Resolution 4392). This states in relevant portion that the City shall amend its contract with the. Public Employees' Retirement System to provide the retirement benefits computed by utilizing the two percent at age 50 formula commonly referred to as the California Highway Patrol Retirement Plan. This amendment will result in an increased cost of $393,852. In order to insure the earliest possible date for implementation in accordance with the Memorandums of Agreement, it is recommended that the Resolution of Intent be adopted at the June 5, 1978 Council meeting. The Public Employees' Retirement System requires adoption of an ordinance to implement this amendment. The first and final readings of the ordinance are scheduled for subsequent Council meetings. Funding Source Provision has been made for the additional costs in the preliminary 1978-79 budget. P10 W8 �' CITY OF HUNTINGTON BEACH COUNCIL-ADMINISTRATOR COMMUNICATION HUNTINGTON BEACH To Honorable Mayor and City From Floyd G. Belsito, Council Members City Administrator Subject Public Employees' Retirement Date June 5, 1978 System Resolution Attached is a revised Resolution of Intent to amend our contract with the Public Employees' Retirement System to provide the CHIP, 2% at age 50 retirement plan for the Police Officers' Association and the Marine Safety Officers' Association. The revision contains a change in the wording of the statement of proposed change as follows: Section 21252.01 (Full 2% at age 50) for police and lifeguard members. Also attached is a copy of said amendment to the contract between the City Council and the Public Employees' Retirement System as an exhibit. This amendment will result in an increase in the City's contribution rate from 0.0% to .006% for prior service until June 30,2000. The effect of this amendment will increase the City's retirement contribution rate for safety employees from the present 18.052%, to a new rate of 22.695%. The 1978-79 budget impact will be $393,852 and funds have been included in the 1978-79 budget. This contract amendment is needed to implement Article 8 of the Police Officers' Association and the Marine Safety Officers' Association Memorandums of Agreement. This amendment was to be effective on July 97 1, 18, however, due to the delay of the Retirement System in computing the actuarial valuations, the earliest possible implementation date is August 5, 1978. The first and final readings of this ordinance are scheduled for subsequent Council meetings. Respectfully Submitted, Floy Belsito City Administrator REQUEST FOR CITY COUNCIL ACTION Submitted by Edward H. Thompson Departure Personnel Date Prepared June 12 11978 �&kup Mater' I Attached X Yes No ❑ ❑ Subject First Reading of Ordinance to Amend the Contract between the City of Huntington Beach and the Public Employees' Retirement System City Administrator's Comments Approve - as recommended. flfl (ell V ! 1 Statement of Issue, Recommendation, Analysis, Funding Source,Alternative Actions: Statement of Issue The City Council previously approved the Resolution of Intent to amend the City's contract with the Public Employees' Retirement System on June 5, 1978, to provide for the California Highway Patrol retirement plan for the Police Officers' Association and Marine Safety Officers' Association. The Public Employees'Retirement System requires a first and final reading of an ordinance to amend the City's contract; in addition to the previous resolution. Recommended Action Adoption of the attached ordinance to amend the City's contract with the Public Employees' Retirement System. Analysis The contract amendment is needed to implement Article 8 of the current Memorandums of Agreement between the City of Huntington Beach and the Huntington Beach Police Officers' Association (Resolution 4300) and Article 8 of the current Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association (Resolution 4392) . This states in relevant portion that the City shall amend its contract with the Public Employees' Retirement System to provide the retirement benefits computed by utilizing the two percent at age 50 formula commonly referred to as the California Highway Patrol Retirement Plan. The Public Employees' Retirement System requires that there be a first and a final reading of this ordinance. The final reading is scheduled for the July 3, 1978 Council meeting. To insure the earliest date possible for implementation in accordance with the Memorandums of Agreement, it is recommended that the ordinance be approved on the June 19,1978 Council meeting. Funding Source Provision has been made for the additional costs in the 1978-79 budget. t Pao 3/78 C ORDINANCE NO. 2293 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BE- TWEEN THE CITY COUNCIL AND THE BOARD OF AD- MINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES ' RETIREMENT SYSTEM The City Council of the City of Huntington Beach does ordain as follows : SECTION 1. That an amendment to the contract between the City Council of the City of Huntington Beach and the Board of Administration, California Public Employees ' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A," and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Huntington Beach is hereby authorized, empowered and directed to execute said amendment for and on behalf of said city. SECTION 3. This ordinance shall take effect thirty days after its adoption, and prior to the expiration of fifteen days from the passage thereof shall be published at least once in the Huntington Beach News , a weekly newspaper of general circu- lation, printed and published in the County of Orange and thenceforth and thereafter the same shall be in full force and effect . PASSED AND ADOPTED by the City Council of the City of adjourngd Huntington Beach at a regular/ meeting thereof held on the 14th day of August 1978. ATTEST: Mayor ALICIA M. WENTWORTH 0 City Clerk /ahb BY: 6/15/78 Deputy 1. REVIEWED AND APPROVED: APPROVED AS TO FORM: • Cit Administrator City Attorney INITIATED AND APPROVED: .F"wllam"`G Director, Personnel and Labor Relations 2 . • AMENMENT `To CONTRACT BEMBS THE BOARD OF ADIUMISTRATIOR PUBLIC EmPLOYEffi RBTIR> R't SySTSK AM THE CITY COUNCIL O THE CITY OF BUNTINGTON BEAM The Board of Administration, Public Employees' Retirement ent Systems, herein- after referred to as "Board", and the governing body of above public agency, hereinafter referred to as "Public Agency', having uttered Into a contract under date of October 27, 1945, effective October 1, 1945, and as amended effective January 1, 1950, March 1, 1952, November 1, 1957, March 1:, 1958, October 1, 1961, January 1., 1971., January 12, 1974, April 18, 1975, ;February 21, 1-976 August 7, 1976, and September 17, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective April 18, 1975, and hereby replaced by the following paragraphs number 1 thro%Mh 14 inclusive: 1. All words and terms used herein which are defined is the Public Employees" Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" • shall seas age 60 for miscellaneous members and age 50 for local safety members. 2. Public Agency shail,l participate in the Public Employees' Retirement System from and after October 1, 1945, making its employees as hereinafter providedo members of said System subject to all provisions of the PublicEmployees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and. to all amendments to said Law hereafter enacted except such as by express provisions thereof apply only on the election of contracting agencies. 3. Employees of Public Agency In the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local. Fireman (herein referred to as local safety members) b. Local Policemen (herein referred to as local safety members); c. Lifeguards on ocean beaches (included as local safety members),, d. Employees other than local safety members (herein referred to as miscellaneous members). • In addition to es of employees excluded from membership by said Retiremsetaft"tc classes of employees shall not become members of- soid. Rath Systems .y .tea Bo AIB� '04L EXCLUSIONS COBS-7o2 1 0 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscellaneous member shall • be determined in accordance with Section 21251.13 of said Retirement Lam (2% at age 60) . 5. The fraction of final compensation to be provided for each year of credited prior and current service as a safety member shall be determined in accordance with Section 2 252*01 of said Retirement Law (2x at age 54) 6, The following additional provisions of the Public loyeees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Sections 21380-21388 (providing for allowances for survlvors of members covered under the 1959 Survivor's Program upon the member's death before retirement). b. Section 20019.3 (providing .for the inclusion of lifeguards on ocean beaches as local safety ambers). c. Sections 21263 and 21263.1 (provide.ng upon the death of a member who retired for service or disability for contisnuance of a past-retires ent survivor allowance to certain survivors for local safety fire members.. sd.. "Local Policemen" shall Include persons assigned to Id+entif icat ou • and communication duties In the Police Department who are not now local safety members and who were in such employment on August 4 1972, who elect safety membership within sixty days of the effective slate of this amendment. a. Section 20930.3 (allowing public service credit under the provisions of Chapter 1437, Stats. 1974, for up to four years of continuous military or merchant marine service)* f. Section 20024.2 (defining "final compensatioe on the basis of average compensation earnable during the year isseediately preceding retirement or any other one year period elected by the giber) for local safety gibers, 7. Public Agency* in accordance with Section 20740 fiovernment. Code, *eased to be an "employer" for purposes of Chapter 6 of the Public Employees' Hatirment Law effective on April 18, 1975. AgeAniulated contributions of Public: Agency as of the aforementioned date shall be fixed and determined as provided in Sea ion 207".591p Government Codes and accumulated contributions as of the afore- mentioned date and contributions ns tiuereafter made sisal.. d by the Board as provided in. Section 20759 Government Code. wt CON-7C2-2 8. Public Agency shall contribute to said Retirement System as follows a.. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said Retirement Systems (1) 0.112 percent until .Terse 30, 2000, on account of the liability for prior service benef its. (2) 8.382 percent on account of the liability for current service benefits. (3) 0.201 percent on account of the liability for the 1959 Survivor Program, b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement Systems (l) 0.006 percent until June 30, 2000, on account of the liability, for prier service benef its. (2) 2 9 percent on account of the liability for current service Us its, : Zby "h Road to cover c. A reasonable a+aouat per annum, as f he r the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodical, instigation and valuations required by law. d. A reasonable amount as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law, 9. Contributions required of Public Agency mad its empl oyeas shall be subject to :adjustment by Board on account of amendments to the Public Employees• Retirement Laws and on account of the experience under the Retirement System as determined by the periodical Investigation and valuation required by said Retirement Law. lid. Contributions required of Public regency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the and of the period to which said contributions refer or an may be prescribed by Board regulation, if more or loss than the correct amount of contributions is paid for any .period, proper adjustment shall be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any employee may be made by • direct cash s between the employee and the Board. Payments by d may be made in the form of grants, bank ehec s, afts, certified checks, money orders, o B, This amendment shall be attached to said contract and shall be effective on • the 30 day of ,Se.p'tember. Witness ow hands this 14 day of --August-. . .�� BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EHPLOYBES' RETIREMENT SYSTEM OF THE CITY -,OF RUNTINGTON BEACH BY Carl Jo/%echingers, Ex Live t fiver Pr"idi ff icer .. .•� Approved as to forma Atteett ALICIA M. WENTWORTH, CITY CLERK BY .� Legal Office, PBRS 6_Z_ Z Deputy APPROVED AS TO FORM City Attorney zas £::: CON--702 .4 Olf No. 2293 STATE OF CALIFORNIA ) • COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 19th day of June 19 78 , and was again read to said City Council at a regular adjourned meeting thereof held on the 14th day of August 19 78 , and was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council. AYES: Councilmen: Pattinson, MacAllister, Mandic, Shenkman NOES: Councilmen: Thomas, Siebert ABSENT: Councilmen: Bailey Alicia M. Wentworth City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California By: Deputy 40, i, Alicia M. Wentworth CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that this ordina-;ce has been pubs' hed in the 'untingtcn Beach News on 19-7 Y In co Banc ith t ity Ch ter of say City. • City Clerk .....»__...._.._-------------•-------...-----------•-�-y•-----.--•-•---- Deputy City Clerk CITE' OF HUNTINGTON E City Council Interoffice Communication To: Honorable Mayor Pro Tem and City Council Members From: Connie Boardman, Mayor ,Q Date: August 13, 2003 Subject: H-ITEM FOR AUGUST 18, 2003, CITY COUNCIL MEETING- .te REIMPLEMENTATION OF RETIREMENT PROPERTY TAX FOR FISCAL YEAR 2003-2W4 (�A,% t\0• ;L0}3 (o t , In 1966, and again in 1978, the electorate of the City of Huntington Beach approved a City Charter revision authorizing the City to provide retirement benefits to its employees, and further directing the City to levy a property tax in excess of 1% of the full cash value of property"sufficient to meet all obligations of the City for the retirement system in which the Pity participates." The City currently provides retirement benefits through a contract with the Public Employees Retirement System (PERS). In addition, the City provides a Supplemental Retirement Program offering survivor's benefits that replace certain PERS benefits to employees hired before 1998 and a Retiree Medical Plan subsidizing the cost for retirees to participate in the City-sponsored Health Plans. Although the City has participated in PERS since 194�5, it has modified its retirement programs since July 1, 197& F 'example, after July 1, 1978, the City began reimbursing employees for their t*u#iori to PERS, as well as offering the Supplemental Retirement Program and,the Refilr �kcal`Plan. In Qeceniber 999, the Howard Jarvis Taxpayers Association ("HJTX) Bled suit challenging whether the City's property tax override violates Proposition 13, in a case entitled--HOWstd Jarvis Taxpayers Association, et al., v. County of Orange, and City of Huntington Beach as Real Party in Interest, Orange County Superior Court Case No. 81-87-80 ("Case No. 818780"). At issue was whether the override its limited to only those retirement benefits the City paid for as of July 1, 1978, or for all City-paid retirement benefits, including those benefits authorized after July 1 1978. On April 2, 2001, the Superior Court held that under Proposition 13, the property tax override is unconstitutional `to the extent it exceeds the City's employer contribution for PERS retirement benefits that were in existence prior to July 1, 1978." This means that the property tax override can only be used to pay the employer's contribution to PERS, and cannot be used to fund the City's payment of the employees' member contributions, the Supplemental Retirement program or the Retiree Medical Program. It also means that the retirement property tax cannot be used pay for post-1978 amendments to the City's retirment contract with PERS. For example, in 2001, the City altered its safety .imp/43memoftMCCPH4ax override '�` H-ITEM FOR August 18 2001, 01TY COUNCIL MEETING-RED PLEMEATIOA1 OF RRTMEMEN T PROPERTY TAX FOR FISCAL YEAR 2003-2004August 13,2003 Page 2 employee retirement plan to 3% @ 50 from 2% at 50. Under the Courts decision, the City may not use the retirement tax to pay for the additional cost of offering the 3% 50 benefit. On July 30, 2003, the Court of Appeal issued its opinion regarding the City's retirement property tax. The Court affirmed the decision of the trial court in virtually all respects by a 2-to-1 decision. Subsequently, under the Court of Appeal decision, the City may levy a retirement property tax to fund the employer's contribution to PERS for pre-1978 retirement benefits. For fiscal year 2003/2004, PERS is requiring the City to contribute 8.997% of safety employee payroll as the City's employees contribution for pre and post-1978 benefits. The Citymay le a tax sufficient to ' y dY pay that part of the employer's contribution that is attributable only to pre-1978 benefits. In December 2000, PERS provided the City with a Cost Analysis for offering 3% 1 50. It indicated that 4.689%© of employee payroll was"much more indicative of the long-term change in the employer contribution rate due to the plan amendment." Since 4.589% of the 8.997% rate represents the incremental cost of 3% @ 50, the remainder of 4.408°l0 represents the pre-1978 benefit of 2% @60. 4.408% of the safety employee payroll for 2003104 is$1,279,113.00. A tax levy sufficient to raise this amount of money is 0.00696% of assessed value. This works out to approximately a retirement tax of$6.96 per year per$100,000 of assessed value. R9C41VlM19N©gQ act: Adapt the attached resolution to levy a tax rate at 4.4% that represents the cast of pre- 1978 benefits. Attachments: Cost Analysis dated June 30, 1999 from Kung-pei Hwang, Senior Pension Actuary,CalPERS Resolution Mo.1.Ot�a entitled A Resolution of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2003/2004 to pay for Pre-1978 Employee Retirement*Senefits xc: Ray Silver, City Administrator Sill Workman, Asst. City Administrator Clay Martin, Director of Administrative Services Connie Brockway, City Clerk Jennifer McGrath, City Attomey - ls 3 According to the table in the PERS letter of June 30, 199%(page H-3d in the agenda)if not super-funded,the City's retirement: cost of 3% at 50 would be 17.040% the city's cost today for 2% at 50 would be 12.451% (pre 1978 benefits) 17.040 12.451%� 4.589 % which is the value of post 1978 retirement costs Current employer's rate as of July 03 that PERS is charging us is 8.997% 4.589 % 4.408 % represents the value of the pre 1978 benefits which the court has said is legal to charge. fA o ,� CONTRACT AMENDMENT COST ANALYSIS-VALUATION BASIS:JUNE 30,1999 SAFETY PLAN FOR CITY OF HUNTINGTON BEACH EMPLOYER NUMBER 97 Benefit Description:21362.2,3%@ 50 Full Formula The table below shows the change in the total present value of benefits for the proposed plan amendment. The present value of benefits represents the total dollars needed today to fund all future benefits for current members of the plan, i.e.without regard to future employees. The difference between this amount and current plan assets must be paid by future employee and employer contributions. As such,the change in the present value of benefits due to the plan amendment represents the"cost"of the plan amendment. However,for plans with excess assets some or all of this"cost"may already be covered by current excess assets. The Ca1PERS Board adopted a resolution providing a one-time increase in the actuarial value of assets to 95%of market value for the calculation of the employer rate when a rate plan adopts a contract amendment that increases the present value of benefits. This resolution applies only to plans that(1)file a resolution of intention to amend their plan with CaIPERS before June 30,2001 and that(2)amend their contract with an effective date on or before June 30,2002.If a plan amends more than once during the window period,only the first qualifying amendment will result in the asset increase to 95%of market value, Therefore,if your plan previously adopted an amendment which increased the actuarial value of assets to 95%of market value,no increase in assefs will be shown in the tables below. If your plan's actuarial value of assets was not previously increased to 95%of market value,the tables below show the effect on its assets due to this one-time change in actuarial method(i.e.,the 95%market value of assets). Change Due to Post-Amendment Pre-Amendment Plan Amendment Post Method &Method Change Change Total Present Value of Benefits $ 263,664,509 $ 22,909,322 $ 286,573,831 Actuarial Value of Plan Assets 257,337,475 11,743,423 269,080,898 Present Value of Future Employer and Employee Contributions $ 6,327,034 $ 11,165,899 $ 17,492,933 It is not required,nor necessarily desirable,to have accumulated assets sufficient to cover the total present value of benefits until every member has left employment. Instead,the actuarial funding process calculates a regular contribution schedule of employee contributions and employer contributions(called normal costs)which are designed to accumulate with interest to equal the total present value of benefits by the time every member has left employment. As of each June 30,the actuary calculates the "desirable"level of plan assets as of that point in time by subtracting the present value of scheduled future employee contributions and future employer normal costs from the total present value of benefits. The resulting"desirable" level of assets is called the accrued liability. A plan with assets exactly equal to the plan's accrued liability is simply"on schedule" in funding that plan, and only future employee contributions and future employer normal costs are needed. A plan with assets below the accrued liability is"behind schedule", or is said to have an unfunded liability,and must temporarily increase contributions to get back on schedule. A plan with assets in excess of the plan's accrued liability is"ahead of schedule",or is said to have excess assets, and can temporarily reduce future contributions. A plan with assets in excess of the total present value of benefits is called super-funded, and neither future employer nor employee contributions are required. Of course,events such as plan amendments and investment or demographic gains or losses can change a plan's condition from year to December 12,2000 Pagel of 3 12:26 PM CONTRACT AMENDMENT COST ANALYSIS-VALUATION BASIS:JUNE 30,1999 SAFETY PLAN FOR CITY OF HUNTINGTON BEACH EMPLOYER NUMBER 97 Benefit Description:21362.2,3%@ 50 Full Formula year. For example,a plan amendment could cause a plan to move all the way from being super-funded to being in an unfunded position. The changes in your plan's accrued liability,unfunded accrued liability,and the funded ratio as of June 30, 1999 due to the plan amendment are shown in the table below. Change Due to Post-Amendment Pre-Amendment Plan Amendment Post Method Change &Method Change Accrued Liability S 217,156,760 $ 20,150,034 $ 237,306,794 Assets 257,337,475 11,743,423 269,080,898 Unfunded Liability S (40,180,715) S 8,406,611 $ (31,774,104) Funded Ratio 118.5% 113.4% While the tables above give the changes in the"cost"and funded status of the plan due to the amendment, there remains the question of what will happen to the employer contribution rate because of the change in plan provisions. Ca1PERS policy is to implement rate changes due to plan amendments immediately on the effective date of the change in plan benefits. In general,the policy also provides that the change in unfunded liability due to the plan amendment will be separately amortized over a period of 20 years from the effective date of the amendment and all other components of the plan's unfunded liability/excess assets will continue to be amortized separately. However, special rules have to be applied to plans with a current employer contribution rate of zero. The pre-amendment excess assets in these plans were sufficient to cover the employer's normal cost for one or more years into the future. A plan amendment will use up some or all of the pre-amendment excess assets. If there is still excess assets(i.e. if the plan is still ahead of schedule)after the plan amendment, the remaining excess assets were spread over the greater of 5 years or the number of years for which the excess assets would keep the employer rate equal to zero. If the amendment uses up all excess assets and creates an unfunded liability(i.e. from being ahead of schedule to behind schedule),the post-amendment unfunded liability was amortized over 20 years. The table below shows the immediate short-term change in your plan's employer contribution rate due to the plan amendment. Rate Change Due to Post-Amendment Component Pre-Amendment Plan Amendment Post Method Change &Method Change Normal Cost 12.451% 4.589% 17.040% Unfunded/Excess Asset Cost (12.451)% (4.589)% (17.040)% 1959 Survivor 0.000% 0.000% 0.000% Total Employer Rate 0.000% 0.000% 0.000% Amortization Period 20 Years 8 Years December 12,2000 Page 2 of 3 12:26 PM CONTRACT AMENDMENT COST ANALYSIS-VALUATION BASIS:JUNE 30,1999 SAFETY PLAN FOR CITY OF HUNTINGTON BEACH EMPLOYER NUMBER 97 BeneSt Description:21362.2,3%Q 50 Full Formula Note that the change in normal cost in the table above may be much more indicative of the long term change in the employer contribution rate due to the plan amendment. The plan's unfunded liability/excess asset cost shown in the table above is a temporary adjustment to the employer contribution to"get the plan back on schedule". This temporary adjustment to the employer rate varies in duration from plan to plan. For example,a plan with initial excess assets being amortized over a short period of time will typically experience a large rate increase when excess assets are fully amortized. While a plan amendment for such a plan may produce little or no increase in the employer contribution rate now,the change in normal cost due to the plan amendment will become fully reflected in the employer contribution rate as soon as initial excess assets are fully amortized. If your agency is requesting cost information for two or more benefit changes,the cost of adopting more than one of these changes may not be obtained by adding the individual costs. Instead,a separate valuation should be done to provide a cost analysis for the combination of benefit changes. If the proposed plan amendment applies to only some of the employees.in the plan,the rate change due to the plan amendment still,applies to the entire,plan,and is still based on the total plan payroll, Please note that the cost analysis provided in this document may not be relied upon once the CalPERS actuarial staff have completed the next annual valuation,that is,the annual valuation as of June 30,2000. If you have not taken action to amend your contract,and we have already mailed the June 30,2000 annual valuation report,you must contact our office for an updated cost analysis,based on the new annual valuation. This actuarial valuation for this proposed plan amendment is based on the participant,benefits,and asset data used in the June 30, 1999 annual valuation,with the benefits modified if necessary to reflect what is currently provided under your contract with CalPERS,and further modified to reflect the proposed plan amendment. Descriptions of the actuarial methodologies,actuarial assumptions,and plan benefit provisions may be found in the appendices of the June 30, 1999 annual report. Please note that the results shown here are subject to change if any of the data or plan provisions changes from what was used in this study. It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan,as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees' Retirement Law. w Kung-pei Hwang,A.S.A.,M.A.A.A. Senior Pension Actuary,CaIPERS Fin Process Ids: Annual49731 Base-53633 Proposal-53634 December 12,2000 Page 3 of 3 12:26 PM RESOLUTION NO. 2003-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH LEVYING A RETIREMENT PROPERTY TAX FOR FISCAL YEAR 2003/2004 TO PAY FOR PRE-1978 EMPLOYEE RETIREMENT BENEFITS WHEREAS,Article XIII A, Section 1(a)of the California Constitution, which was enacted by Proposition 13 in 1978, limits the basic property tax to 1% of assessed value,but Section 1(b)provides that the 1%property tax limitation"shall not apply to ad valorem taxes . . . to pay the interest and redemption charges on . . . any indebtedness approved by the voters prior to July 1, 1978;"and In the case entitled Carman v. Alvord, 31 Cal. 3d 318 (1982), the California Supreme Court held that the"interest and redemption charges on . . . indebtedness" covered by Section 1(b) includes employee retirement obligations of the City; and Since 1948,the City has provided retirement benefits through a contract with the Public Employees Retirement System(PERS). Pursuant to the 1966 Charter,the City has levied a separate retirement property tax to fund the City's employer retirement obligation to PERS; and Prior to 1978,the City was responsible for the employer's portion of PERS contributions, which typically fluctuated from year to year. Employees paid the employee's portion of the PERS contribution(7%for miscellaneous employees and 9%for safety employees). However, after 1978,the City agreed to pay the employee's portion of the PERS contribution; and Proposition 13 was adopted on June 6, 1978. On the same date, Huntington Beach's voters approved a new City Charter,which contains several provisions regarding retirement benefits for City employees. Section 403 of the Charter requires the City Council to "establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution" for City officials and employees. Section 404 of the Charter requires the City to"participate in a retirement system,"and Section 607(b)(2)provides that the City may impose a retirement tax "sufficient to meet all obligations of the City for the retirement system in which the City participates;"and Pursuant to these Charter provisions,the City Council continued to levy after 19.78 a retirement property tax above the 1%limit of Proposition 13. Since 1983-84,Revenue and Taxation Code Section 96.31(b)has limited the City to levying a maximum retirement property tax of Zero and 0.04930/100t'Dollars ($0.04930)per$100 of assessed value to pay for its retirement system; and For many years after 1978,there was no question of which retirement-related benefits the City could pay for with the retirement property tax because the employer's contribution to PERS consumed all of the retirement property tax proceeds; and 03reso/property tar override/8/13/03 1 Resolution No. 2003-62 As a result of the declining employer's contributions to PERS, during the several years prior to and including FY 2000/01, for the first time,the retirement property tax was used to pay for retirement-related benefits first offered after 1978 in addition to the City's employer's contribution to PERS; and Although the City has participated in PERS since 1945, it has modified its retirement programs since July.1, 1978. For example,effective April 20, 2000 the City amended its.PERS miscellaneous employee contract from 2% @ 60 to 2% @ 55 for all miscellaneous employees. Further,effective June 30,2001,the City amended its PERS firefighters retirement contract from 2% @ 50 to 3% @ 50, and effective October 5, 2001,the City amended its remaining safety employees (police and lifeguards) PERS contract to 3% @ 50; and In December 1999, the Howard Jarvis Taxpayers Association("HJTA") filed suit challenging whether the City's retirement property tax violates Proposition 13, in a case entitled Howard Jarvis Taxpayers Association, et al., v. County of Orange, and City of Huntington Beach as Real Party in Interest, Orange County Superior Court Case No. 81-87-80 ("Case No. 818780"). At issue was whether the retirement tax is limited to only those retirement benefits the City paid for as of July 1, 1978, or for all City-paid retirement benefits, including those benefits authorized after July 1, 1978; and Case No. 818780 was tried on February 26-27, 2001 in the Orange County Superior Court. On April 2, 2001,the Court issued a final judgment. The Court held that under Proposition 13,the.retirement property tax is unconstitutional"to the extent it exceeds the City's employer contribution for PERS retirement benefits that were in existence prior to July 1, 1978." The judgment was affirmed in Court of Appeal Case No. G029292. Consequently,the retirement property tax may only be levied to pay the employer's contribution to PERS for retirement benefits the City contracted for before July 1, 1978; and For fiscal year 2003/2004, PERS is requiring the City to contribute 8.997%of safety employee payroll as the City's employer's contribution. The City may levy a retirement property tax sufficient to pay this contribution provided that the employer's contribution is attributable only to the pre-1978, 2% @ 50 PERS contract, but not the 3% @ 50 PERS contract; and There is no exact means to precisely calculate what the PERS safety employer contribution would be in 2003/04 had the City not amended its PERS contract to provide 3%@ 50 benefits. However,there is a reasonable actuarial method to identify the incremental cost of changing the safety emplo retirement plan from 2% @ 50 to 3% @ 50; and In December 2000, PERS provided a"Contract Amendment Cost Analysis"for the 3% @ 50 safety employee retirement plan. The PERS Analysis indicated that according to special rules PERS has applied to all plans with a then-employer contribution rate of zero,no short-term cash flow impact of the contract amendment would be experienced for 8 years. Consequently, this portion of the Analysis suggests that all of the 8.997%employer contribution should be allocated to pre-1978 benefits and none of the contributions should be allocated to post-1978 benefits; and 03reso/property tax override/8/13/03 2 i • Resolution No. 2003-62 However,based upon historical averages,the PERS Analysis also identified 4.589%of safety payroll as the change in the "Normal Cost" of safety retirement plan due to the Contract Amendment. Normal Cost represents the value of retirement benefit earned in the current year. Further,page 3 of the PERS Analysis states that"the change in normal cost. . . may be much more indicative of the long-term change in the employer contribution rate due to the plan amendment." Accordingly, going forward,the City Council will allocate 4.589%of any safety employer's rate PERS imposes to-the cost of the.3%@ 50 contract amendment,and the remainder of the employer's rate to the pre-1978 safety benefits. Consequently,the retirement property tax for Fiscal Year 2003/04 will be used to pay 4.408% of safety employee payroll (8.997%-4.589%); and The estimated cost to the City of 4.408%of safety employee payroll for 2003/04 is $1,279,113. A retirement property tax levy sufficient to raise this amount of money is$0.00696 per$100 of assessed value. This amounts to a retirement tax of approximately$7.00'per $100,000 of assessed value; and NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Huntington Beach that a retirement property tax levy of Zero and 0.00696/100t'Dollars ($0.00696)per$100 of assessed value shall be levied for employee retirement costs for Fiscal Year 2003/04, and the remainder of the $0.04930 per$100 of assessed value levy authorized under Revenue & Taxation Code Section 96.3(b) is suspended. BE IT FURTHER RESOLVED that to the extent the 2003/04 levy actually produces more or less revenues than the actual cost of 4.408%of safety employee payroll,then the 2004/05 retirement property tax shall be adjusted accordingly to recover the shortfall or refund the excess. BE IT FURTHER RESOLVED that the City Council declares that although it is suspending a portion of the retirement property tax for Fiscal Year 2003/2004, it retains the authority to levy the tax in future years up to the rate of$0.0493%per$100 of assessed value. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18 day of August ,2003. Mayor ATTEST: APPROVED AS TO FORM: City Clerk ` I 5 ity Atto ey RE.VIFWED AN APP O D: INITIA�7 APP VED: City Administrator c� Directo of Administrative Services 03reso/property tax override/8/13/03 3 Res. No. 2003-62 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 18tn day of August, 2003 by the following vote: AYES: Coerper, Green, Boardman, Cook, Houchen, Hardy NOES: Sullivan ABSENT: None ABSTAIN: None City Clerk and ex-officio Jerk of the City Council of the City of Huntington Beach, California F 1 PUBLIC COMMENTS RECEIVED FROM 18 August 2003 City Council Meeting AND MADE A PART OF THE RECORD AT THE A enda Item H-3d COUNCIL MEETING OF g OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK Good evening. My name is Chuck Scheid. I am a resident of Huntington Beach. Agenda Item H-3d proposes reinstating a retirement property tax for fiscal year 2003- 2004. As background, PERS has set an employer rate of nine percent of safety payroll for this period. Because of the recent Appellate Court decision only that fraction of the nine percent due to benefits put in place prior to 1 July 1978 can be put on the property tax bill. Of the nine percent, based on the City's interpretation of PERS information, 4.6% has been assigned as the part due to the 3% at 50 contract amendment. The cost of this 4.6% cannot be put on the tax roll because the amendment occurred after June 30, 1978. The H item recognizes this fact. The H item then says "the remainder of 4.4% represents the pre-1978 benefit of 2% at 50." Presumably the cost of this 4.4% of payroll, an amount of about $1.25 million, can be put on the tax roll. A resolution to this effect is included with the H item. But this is not true! A major part of the 2% at 50 benefit also was put in place after 30 June 1978. Specifically, 2% at 50 was put in place for Police and Marine Safety by a PERS amendment dated 3t September 1978. The cost of this benefit was stated to be 4.643% of safety payroll in a City Administrator's memo dated June 5, 1978. These two benefits by themselves add up to more than the 9% rate PERS has set for fiscal year 2003-2004. By the City's own analytical approach, nothing can be legally put on the tax roll this year. In addition, there are several other benefits, minor in cost, which believe were put in place after 30 June 1978. The City's analysis does not take these into account either. urge that the City Council not implement this H item as written but, instead, continue with a tax rate of"zero" for fiscal year 2003-2004. Thank you for the time, Madame Mayor. Chuck Scheid 346 words (714) 536-7077 Cb "le J4� ii�v OF HtHTIhGTGH'BEAC H COUNCIL-ADMINISTRATOR COMMUNICATION 141M114tJGT0*1 bEAC11 To Honorable Mayor and City From Floyd G. Belsito, Council Members City Miiinistrator Subject Public FxTloyees' Retirement Date June 5, 1978 System Resolution Attached is a revised Resolution of Intent to amend our contract with the Public Employees' Retirement System to provide the W, 2% at age 50 retirement plan for the Police Officers' Association and the Marine Safety Officers' Association. The revision contains a change in the wording of the statement of proposed change as follows: Section 21252.01 (Full 2% at age 50) for police and lifeguard members. Also attached is a copy of said amendment to the contract between the City Council and the Public Employees' Retirement System as an exhibit. This amendment will result in an increase in the City's contribution rate from 0.0% to .006t for prior service until June 30,2000. The effect of this amendment will increase the City's retirement contribution rate for.,safety employees from the present 18.052W. to a . new rate of 22.695%. The. 1978-79 budget impact will be $393,852 and funds have been included in the 1978-79 budget. _Y This contract amendment is needed to implement Article 8 of the Police Officers' Association and the Marine Safety Officers' Association Wemorandums of Agreement. This amendment wos to ho effective on Jttly 1, 1978, however, due to' the delay of the Retirement System in computing the actuarial valuations, the earliest possible implementation date is August 5, 1978. The first and final readings of this ordinance are scheduled for subsequent Council meetings. Respectfully Submitted, oy a o City istrator Er � 4 RECEIVED FROM AND f0ADE A PART OF 9 i IE F#ECORD AT THF� COUNCIL MEETING OF--- OFFICE OF THE CITY CLERK RESOLUTION N0. 4300 CONNIE BROCKWAY,CITY CLERK A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING A MEMORANDUM OF AGREEMENT WITH THE HUNTINGTON BEACH POLICE OFFICERS ' CHAPTER., SERVICE EMPLOYEES INTERNATIONAL UNION, CITY DIVISION, LOCAL 660 , AFL-CIO The City Council of the City of Huntington Beach hereby resolves as follows : The Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Police Officers ' Chapter, Service Employees International Union, City Division, Local 660 , AFL-CIO, dated July 30 , 1976, a copy of which is attached hereto and by reference made a part hereof, is hereby adopted and ordered implemented in accordance with the terms and conditions thereof. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular-me `ng thereof" on the 2nd day of August , 1976 . Mayor Pro Tempore APPROVED AS TO FORM: 57 11 tal 1 ra --I City Clerk /.�. Nicholas Counter III abor Relations Counsel APPROVED AS TO CONTENT: a Director of Personas l an Labor Relations MEMORANDUM OF AGREEMENT Between THE CITY OF HLNT NGT N BEACH, CALIFO RNIA (hereinafter called CITY) and THE HUNTINGTON BEACH POLICE OFFICERS CHAPTER, SERVICE EMPLOYEES INTERNATIONAL UNION, CITY DIVISION, LOCAL 660, AFL-CIO (hereinafter called UNION) PREAMBLE WHEREAS, pursuant to California law, the City, acting by and through its designated representatives, duly appointed by the governing body of said City, and the representatives of the Union, a duly recognized employee association, have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours and other terms and conditions of employment for the fiscal years 1976-1977; and 1977-1978. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the Union; and WHEREAS, the representatives of the City and the Union_ desire to reduce their agreements to writing, NOW, THEREFORE, this Memorandum of Agreement is made, to become effective July 1, 1976, and it is agreed as follows: -1- ARTICLE I REPRESENTATIONAL UNIT It is recognized that the Huntington Beach, Police Officers Chapter Service Employees International Union, City Division, Local 660, is the employee organization which has the right to meet and confer in good faith with the City on behalf of employees of the Huntington Beach Police Department within the following classification titles: A. Sworn Personnel: Police Captain Police Lieutenant Police Sergeant Identification Technician - Police Officer Police Recruit B. Non-Sworn Personnel: Detention Officer Detention Officer Sr. Communication Operator ARTICLE II EXISTING CONDITIONS OF EMPLOYMENT Except as expressly provided herein, the adoption of this Memorandum of Agreement shall not change existing terms and conditions of employment which have been established in prior Memoranda of Agreement between City and the Association, and the Union. -2- ARTICLE III SALARY SCHEDULES A. Effective July 1, 1976, the monthly salary rates for the classifications of Police Officer, Identification Technician and Police Recruit shall be increased by 7%. The monthly salary rates for the remaining classifications of Sworn Personnel shall be increased so as to maintain a 17% spread between the ranks - to wit, from Officer to Sergeant, from Sergeant to Lieutenant, and from Lieutenant to Captain. B. Effective July 1,1976, the monthly salary rates for the classifications of Non-Sworn Personnel shall be increased by 5%. C. Effective January 1, 1977,. the monthly salary rate for Step E of the classification of Police Officer shall be increased by $41. 00 per month and the monthly salary rates for Steps A through D . shall be adjusted so as to maintain the existing percentage relation- ship between said Steps. The monthly salary rates for the classifications of Identification Technician and Police Recruit shall be adjusted by 2. 83%. The monthly salary rates for the re- maining classifications of Sworn Personnel shall be adjusted so as to- maintain the 17% spread from rank to rank as provided in paragraph A above. D. Effective July 1, 1977, the monthly salary rate for Step E of the classification of Police Officer shall be increased by $41. 00 per month and the monthly salary rates for Steps A through D shall be adjusted so as to maintain the existing percentage -relation- -3- ship between said Steps. The monthly salary rates for the classifications of Identification Technician and .Police Recruit shall be adjusted by 2. 8%. The monthly salary rates for the re- maining classifications of Sworn Personnel shall be adjusted so as to maintain the 17% spread from rank to rank as provided in paragraph A above. E. Effective October 1, 1977, the monthly salary rates for the classifications of Non-Sworn Personnel shall be increased by 5%. F. Subsequent to July 1, 1977, and prior to October - 1, 1977, the parties hereto shall conduct a survey to determine the average monthly base salary rate for the Fifth .Step in the , salary range for the classification of Police Officer in the following jurisdictions: Anaheim, Glendale, Inglewood, Pasadena, Torrance. and Riverside. G. Effective October 1, 1977, the monthly salary rate for Step E of the classification of Police Officer shall be adjusted to said average as determined by the aforesaid survey. Steps A through D of the Police officer classification and the monthly salary rates of the remaining classifications of Sworn Personnel shall be adjusted so as to maintain the then-existing percentage relationship. ARTICLE IV SALARY DIFFERENTIALS A. Employees assigned to duty as helicopter pilot -shall receive $150. 00 per month in addition to their applicable salary. -4- B. Employees assigned to duty as heliocopter observer shall receive $75.00 per month in addition to their applicable salary. C. Employees assigned to duty as motorcycle officers shall receive a differential of 8. 25 percent of their, salary rate as estab- lished in Article III above. D. Employees assigned to duty as a communications operator salary senior shall receive a differential of 5 g of their rate as communication operator as established in Article III above. E. Non-sworn members required to work on a regularly assigned shift that occurs between the hours of 4 P.M. and midnight, or midnight and 8 A.M. , shall be paid a `premium of five percent (5a) of the employee' s base hourly rate for all work performed during said shift. Employees will be considered as assigned to the afternoon shift . (4 P.M. to midnight) or .the night shift (midnight to 8 A.M. ) when five (5) or more hours of their regularly assigned shifts occur in the afternoon or night shift as defined herein. ARTICLE V OVERTIME AND STAND BY PAY A. Except for the classification of Police Captain, employees shall receive time and one half their salary rate for all time worked in excess of forty hours during any given payroll week; an employee may elect to receive compensatory time off (to be accrued to a maximum of 120 hours) in lieu of such overtime pay. B. Stand By Time: Employees required to be on stand by for a court appearance during other than their scheduled working hours shall receive a minimum of two hours straight time pay (including the differentials identified in Article IV) for both morning and afternoon court sessions. C. Court Appearance Time: Employees_ required to appear in. court during other than their scheduled working hours shall receive a minimum of three hours pay (including the differentials identified in Article IV) at time and one half; however, if such time overlaps with. the employee's. scheduled working hours, said premium rate shall be limited to those hours occurring prior to or after the employee's scheduled work time. ARTICLE VI INSURANCE A. The City shall continue to provide group medical insurance to all employees in the, unit with benefits comparable to those presently in effect for sworn personnel. B. Upon the completion of one year of service, employees shall. have their group insurance premiums for dependent medical coverage Paid by the City. C. Effective July 1, 1975, sworn personnel who have been placed on industrial disability retirement subsequent to January 31, 1974 , shall be eligible to continue to participate in the existing group medical insurance plan at their own cost. Participation shall cease upon the earliest '.of the following: (1) the expiration of three calendar years following the date of the industrial disability retire- ment, or (2) the retireee obtaining eligibility for coverage under a comparable medical plan. Retirees who cease to participate may exercise any coversion privileges then in existence. D. Employees shall continue to be covered by dental plan benefits equal to those currently being provided by the City. As soon as practicable, after adoption of this Memorandum of Understanding by the City, dependent dental coverage shall be added, based upon a super composite rate to be obtained by the City; provided, however, in the event said super composite rate results in an increase in premium in excess of $10. 00 per month per employee, the amount of said excess shall be deducted from the monthly salary rates for each classifica- tion provided for in Article LIIe E. City will provide $10,000. 00 of term life insurance without evidence of insurability other than evidence of working a full time duty and another' $10,000. 0:0 requiring evidence of insurability, all at the employee' s own cost. ARTICLE VII INCO14E PROTECTION PLAN The existing long term disability program provided by the City shall remain in effect for all personnel. This program provides, for each incident, pay up to sixty calendar days at the employee' s salary rate (excluding overtime but including any special pay in effect-at the time of illness or injury). After the sixty calendar day period, the employee will be covered by an insurance plan paid for by the City which will provide 66-2/3 percent of the employee' s salary rate (excluding overtime and any special pay) up to a maximum of $1,500. 00 a month in accordance with the following: Disability Due Disability Due to Accident to Illness First 60 days Regular Pay Regular Pay Next 24 months 66-2/3% of base pay 66-2/3% of base pay up to maximum benefit up to maximum of $1500 monthly benefit of $1500 monthl: To age 65 66-2/3% up to maximum None benefit of $1500 monthly Days and months refer to calendar days and months. Benefits under the Plan are integrated with Workmen' s Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability defined as the inability to perform all of the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Plan will provide 66-2/3% of difference between regular pay and pay of other occupation. Survivors benefit continues plan payment for three months beyond death. ARTICLE VIII . RETIREI-ENT The City will provide, for all sworn personnel represented by the Union whose retirement is effective or whose death occurs after July 1, 1978, Public Employees Retirement System retirement benefits computed by utilizing the two percent at age fifty formula commonly referred to as the California Highway Patrol Retirement Plan. ARTICLE IX POLICE EDUCATION INCENTIVE PLAN The existing Police 'Education Incentive Plan shall be maintained for sworn personnel as follows: -8- Continuing Ed- Education ` Maximum Years of ucation College Incentive Post College Training HBPD Units Required Monthly Level Cert. Units Points Service Annually Amount I Inter 30 10 1 6 $` 66.1t II Inter 60 20 1 3 $ 99.1s III Adv 90 30 2 .3 $ 132. 22 IV Adv 120 3 3 $ 198. 3E V Adv 150 3 0 $ 198.3E Stipulations 1. Monthly amount increases/decreases based on Los Angeles- Long Beach Consumer Price Index. September 1 adjustment based on July all items figure. 2. College major shall be Police Science, Criminology, Political. Science, Sociology, Law Business Administration, Public Administration, Psychology or closely similar field as approved by Chief of Police and Education Committee. 3. Initial eligibility must be approved by Chief of Police. An acceptable yearly performance evaluation, signed by Chief of Police, is required. No incentive taken away without just cause. 4. Training points approved by POST may be substituted for college units, on the following schedule: 10 of 30, 20 of 60 30 of 90. 5. Pay to be effective first month following approval. 6. After 120 units of B.A. POST approved training points may be substituted for college units without limit. 7 . Repeat college courses credited as determined by the college. -9- i 8 . Repeat POST approved seminars , institutes, etc. credited as determined by the Chief of Police. 9 . All college units require grade of "C" or better to qualify. 10 .. Obtaining transcripts or other acceptable documentation is employee responsibility. 11. Employee may choose between ?OST training points or college units where a choice is available. No change allowed once choice is made, no double credit allowed. The existing non-sworn education incentive plan shall be maintained as follows : 1. Payment shall be made on the basis of One Dollar ($1. 00) per month for each completed college semester unit or its equivalent, limited to 8 25% percent h ' b sic monthl a As an alter- native, of the emplo ee s a� y pay.• Y native, the CITY may reimburse the employee for tuition only on request of the employee and approval of the Department Head. Said payment for tuition shall be subject to all other regulations herein contained and duplicate payment for courses under this Plan shall not be authorized. 2 . Payment shall be made only for that education above and beyond the education requirements for the employee 's classification. 3 . Payment shall begin. on the first of the. month following approval by the Education Committee. 4. The Education Committee shall be composed of one member appointed by the Union, one member from the Finance Department and one member from the Personnel Department. -10- , 5 . 'An employee must be employed by the City for.- one year to be eligible, and only those units for which credit is received after the date of employment shall be eligible for payment . All courses and credit shall be taken on the employee' s own time and the employee' s own expense. 6 . Transcripts and other proof of credits shall be the sole responsibility of the employee. Transcripts and grade cards shall be forwarded to the Education Committee for review and consideration. 7 . When an employee is promoted or transferred, his pay, if any, under the Education Pay Plan shall be -reviewed to determine continuing eligibility. 8 . Semester units shall be the basis for payment, with 18 hours of instruction the_ equivalent. of one semester unit, and one. quarter unit shall be the equivalent of two-thirds (2/3) of a semester unit. 9 . Questions concerning the Education Committee ' s determination shall be referred to the Committee . An employee who is not satisfied with the Committee ' s determination shall present his problem to the Education Committee for review. Determination of the Education Committee may be subject to the Grievance Procedure. 10 . Documents and questions for the Education Committee shall be referred to the Personnel Director for- .submission to- the Committee. 11. All grades must -be a letter grade of "C" or better. In a "Pass/Fail" grading system, a "Pass" is required and in a "Credit/No Credit" grading system, .a "Credit" is required to be eligible for approval. -11- 12 . The Education Committee may approve courses in advance to insure that payments will follow completion. ARTICLE X SICK LEAVE PAYOFF A. As of January 25 , 1974 , all sick leave accumulation for sworn personnel was frozen for purposes of payoff upon termination. Nothing will be paid for accumulation up to 480 hours . Accumulated hours from 480 to 720 will be paid off at 45% of their value as of January 25 , 1974 . Hours in excess of 720 will be paid off at 70% of their value as of January 25 ; 1974. The payoff for accumulated sick leave as described above may be taken either: 1. Upon termination, or 2 . One-third of the amount payable as of January 25 , 1974 may be taken each July 1 of three successive years , starting July 1 , 1974 . If the total amount payable to an individual is less than $1,500 . 00 , he may elect to take a -portion of amount payable to him up to $500 . 00 each July 1 until total amount payable to him has been paid. Twenty-five percent of any sick leave accumulation under 480 hours an individual may have as of January 25,, . 1974 , will be converted to compensatory time off. -Such compensatory time will be permitted as a separate and additional amount in excess of the 120 hours maximum accumulation permitted under Personnel Rule 14-8 . Any compensatory time taken will draw from this additional amount available first until it is depleted before any is taken under the maximum accumulation permitted -12- under Personnel Rule 14-8 . If any of this additional- amount is still remaining upon termination, it will be paid off at its current hourly value as of January 25 , 1974. Any amount taken prior . to termination will be taken at the employee ' s earning rate at the time such converted compensatory time off is used. B. All non-sworn personnel whose classifications were added to the police unit , shall have existing sick leave frozen as of June 30 , 1976 , at the rate in effect as of that date. Any payoff of such accumulated sick leave shall be in accordance with the provisions of Personnel Rule 14-8 as of June 30 , 1976 . ARTICLE XI FAMILY ILLNESS LEAVE Sick leave may be used for an absence due. to illness of the employee' s spcuse ojr child when the employee ' s presence is required at home , provided that such absences shall be limited to five days per calendar year. ARTICLE XII BEREAVEMENT LEAVE Employees shall be entitled to bereavement leave not to exceed three working days per calendar year in instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse or children of the employee. -13- ARTICLE XIII TEN-PLAN The work schedule agreed to by the City and the Union during negotiations has been fully implemented and shall remain in effect during the life of this Agreement unless changes are agreed to by the •Union and the City. ARTICLE XIV VACATIONS Anniversary Date: For the purpose of computing vacation, an employee' s anniversary date shall be the most recent date on which he commenced full-time , City employment. Annual Vacation: The purpose of annual vacation is to provide a rest period which will enable each employee to return to work physically and mentally refreshed. * All employees shall be entitled to annual vacation with pay EXCEPT the following: (a) Employees who have not completed six (6) months continuous service with the City. (b) Employees who work less than full-time. (c) Employees on leave of absence. Vacation Allowance : Permanent employees in City service , having an average work week of forty (40)' hours, shall accrue annual vacations with pay in accordance with the following: (a) For the first five (5) years of continuous service vacation time will be accrued at the rate of 96 hours per year. -14- (b) , After five (5) years of continuous service vacation time will be accrued at the rate of 112 hours per year. (c) After ten (10) years of continuous service to the completion of fifteen years of continuous service vacation time will be accrued at the rate of 128 hours per year. (d) After fifteen (15 ) years of continuous service vacation time will be accrued at the rate of 160 hours per year. No vacation may be taken until the completion of six (6 ) months of service. Permanent, part-time employees assigned a work schedule of less than 2 ,080 and more than 1,040 hours per year shall receive vacation in one-half the amounts set forth above. Vacation - When Taken : No employee shall be permitted to take a vacation in excess of actual time earned and vacation shall not be accrued in excess of 320 hours. Vacations shall be taken only with permission of the department head; however, the department head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. Terminal Vacation Pay: No employee shall be paid for unused vacation other than upon termination of employment at which time such terminating employee shall receive compensation at his current salary rate for all unused, earned vacation. to which he is entitled up to an including the effective date of his termination. Receipt of Vacation Pay: Upon two week. Twritten notification to the Finance Director•, each employee shall be entitled to receive his earned vacation pay, less deductions , in advance, prior to his regular -15- scheduled annual vacation. Such advancements are limited to one during each employee' s anniversary year. ARTICLE `XV HOLIDAYS Employees represented by the Union. and actively employed by the City, in addition to regular compensation, shall receive each month, pay for one-twelfth of the total holiday hours earned for the year based on eight hours per holiday. They shall be entitled to an additional eight hours of pay at their regular rate for special holidays observed by the City beyond those identified in the Personnel Rules of the City. ARTICLE XVI UNIFORMS` The City shall continue the existing practice of providing and replacing uniforms and safety equipment. ARTICLE XVII MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the Chief of Police retains all rights , powers and authority with respect to the management and direction of the performance of police services and the work forces performing such services, provided that nothing herein shall change the City' s obligation to meet and confer as to the effects of any such management decision upon wages , hours and terms and conditions of employment or be construed as granting the Chief of Police or the City t the right to make unilateral changes in wages , hours , and terms and conditions of employment . Such rights. include , but are not limited to, consideration of the merits , necessity, level or organization of police services , including establishing manning requirements , overtime assignments , number and location of work stations , nature of work to be performed, contracting for any work or operation , reasonable employee performance standards , including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services . ARTICLE XVIII TERMS OF MEMORANDUM OF AGREEMENT This Memorandum of Agreement shall be in effect for a term of twenty-seven months , commencing on July 15 1976 , and ending at midnight on September 30 , 1978 . No further improvements or changes in the salaries and monetary benefits of the employees represented by the Union shall take effect during the term of this Agreement and the Union expressly waives any right to request any improve- ments or changes in salaries or monetary benefits for the employees represented by -the Union which would take .effect prior. to October 1, 1978 , and the City of Huntington Beach, through its representatives , shall not be recuired to meet and confer as to any such request. -17- ARTICLE XIX EFFECTIVE DATES FOR INSURANCE BENEFITS FOR NON-SWORN PERSONNEL The insurance benefits added herein for non-sworn personnel by virtue of Article VI , paragraphs A, B, D and E, and Article VII shall be: effective August 1 , 1976 ARTICLE XX CITY COUNCIL APPROVAL It is the understanding of the City and the Union that this Memorandum of Agreement is of no force or effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Agreement this 30th day of July, 1976 . DATED: ��f , 1976 CITY OF HUNTINGTON BEACH B Ci y A inistrator By 6 + Director of Personn 1 and Labor Relations APPROVED AS TO FORM: HUNTINGTON BEACH POLICE OFFICERS' CHAPTER, SERVICE EMPLOYEES INTER- NATIONAL UNION, CITY DIVISION, ''- LOCAL 660 , AFL-CIO /LNicholas Counter III abor Relations Counsel By B B CITY OF HUNTINGTON BEACH PERSONNEL DEPARTMENT POLICE OFFICERS' ASSOCIATION SALARY SCHEDULE Effective July 1, 1976 "A�� Step Job No. Title Range A B C D E Hrly. Rate 4334 Police Recruit 142 972 5.61 . 4332 Police Officer 148 1146 1210 1278 1349 1428 6.61 4330 Identification Tech. 152 1279 1350 1429 1508 1593 7.38 2360 Police Sergeant 154 1341 1419 1497 1581 1671 7.74 1360 Police Lieutenant 159 1570 1656 1753 1851 1955 9.06 0330 Police Captain 165 183S 1939 20SO 2164 2287 10.59 6370 Communications Oper. 139 894 941 991 1044 1099 .5.16 4325 Detention Officer 143 992 1045 1100 1160 1223 5.72 4326 Detention Offic. Sr. 146 1074 1132 1192 1257 1327 6.20 Effective January 1, 1977 4334 Police Recruit 142 1000 S.77 4332 Police Officer 148 1179 124S 131S 1388 1469 6.80 4330 Identification Tech. 1S2 1316 1389 1470 1551 1638 7.59 2360 Police Sergeant 154 1380 1460 1540 • 1627 1719 7.96 1360 Police Lieutenant 159 1614 1703 1803 1904 2011 9.31 0330 Police Captain 165 1889 1996 2110 2227 2353 10.90 6370 Communications Oper.. 139 894 941 991 1044 1099 5. 16 4325 Detention Officer 143 992 1045 1100 1160 1223 S.72 4326 Detention Offic. Sr. . 146 1074 1132 1192 1257 1327 6.20 Res. No. 4300 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNT INGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 2nd day of August 1976 , by the following vote: AYES: Councilmen: Bartlett, Pattinson, Coen, Gibbs, Siebert, Sherkman NOES: Councilmen; .. None ABSENT: Councilmen: Wieder • ��C%! City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California RECEIVED FROM 0 AND MADE A PART OF THE REC D A T COUNCIL MEETING OF -0 OFFICE OF THE CITY CLERK _ RESOLUTION NO. 4392 CONNIE BROCKWAY,CITY CLERK A RESOLUTION OF THE CITY COUNCIL OF THE _ 3 CL CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING A MEMORANDUM OF AGREEMENT WITH THE HUNTINGTON BEACH MARINE . SAFETY OFFICERS' ASSOCIATION The Huntington Beach City Council does hereby resolve as follows : The Memorandum of Agreement between the City of Huntington Beach and the Huntington Beach Marine Safety Officers ' Associa- tion effective July 1, 1976 , a copy of which is attached hereto and by reference made .a part hereof, is hereby adopted and ordered implemented in accordance with the terms and conditions thereof . PASSED AND ADOPTED by the Huntington Beach City Council at a regular meeting thereof held o4the20 t ay of December, 1976 . . ATTEST: Mayor Pro Tempore City erk APPROVED AS TO FORM: APPROVED AS TO CONTENT. _ 17EV� . Nitholas Counter III abor Relations Counsel .�" Y- y Administrator APPROVED BY INITIATING DEPARTMENT: Dir . Personnel/La or Relations t MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH , CALIFORNIA (Hereinafter called CITY) AND MARINE SAFETY OFFICERS ASSOCIATION (Hereinafter called ASSOCIATION) PREAMBLE WHER.ERS ,pursuant to California law , the City, acting by and through its designated representatives , duly appointed by the governing body of said City , and the representatives of the Association , a duly recognized employee association , have met and conferred in good faith and have fully communicated and exchanged information concerning wages , hours and other terms and conditions of employment:. WHEREAS , exce.pt . as otherwise expressly provided herein , all terms and conditions of this agreement shall apply to all employees represented by the Association ; and WHEREAS, the representatives of the City and the Association desire to reduce their agreements to writing , NOW, 'THEREFORE , this Memorandum of Agreement is made , to become effective July 1 , 1976 , and it is agreed as follows : ARTICLE I REPRESENTATIONAL UNIT It is recognized that the Marine Safety Officers Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of the employees of the Huntington Beach Harbors and Beaches Department within the following calssification titles : - 1 - Marine Safety Lieutenant Marine Safety Boat Operator Marine Safety Sergeant Marine Safety Officer ARTICLE II EXISTING CONDITIONS OF EMPLOYMENT Except as expressly provided herein , the adoption of this Memorandum of AGreement shall not change existing terms and conditions of employment which have been established in prior Memorandum of Agreement between City and the Association. ARTICLE III SALARY SCHEDULES Effective July 1 , 1976 MONTHLY SALARY Ti.tle Range A B C D E Marine Sfty Of.fic .547 1063 . 1120 1182 . 1248 1.319 Marine Safety Sgt 552 1214 1284 1357 1433 1513 Marine Sfty Lieut 556 1357 1433 1513 1600 1690 Effective duly 1 , 1977 MONTHLY SALARY Title Range A B C D E Marine Sfty Offic:: 547 1137 1198 1265 1335 1411 Marine Safety Sgt 552 1299 1374 1452 1533 1619 Marine Sfty Lieut 556 1452 1533 1619 1712 1808 ARTICLE IV SALARY DIFFERENTIALS A. Employees. assigned to duty on the Search and Rescue Team shall receive $50 per month in addition to their applicable salary. B. Marine Safety Officers assigned to summer supervision -2- duty shall receive $50 per month in addition to their applicable salary. C . Each Marine Safety Officer assigned to duty as Boat Operator for six months shall receive a differential of 8 . 50% over the salary rate of Marine. Safety Officer for the period of time so assigned. ARTICLE V OVERTIME AND STAND BY PAY A. Employees shall receive time and one half their salary rate for all time worked in excess of forty (40) hours during any given payroll week. Employees may elect to receive compensa- tory time off (to be accrued to a maximum of 120 hours ) in lieu of such overtime pay. B . Stand By Time : Employees required to be on stand by for.. a court appearance during other than their scheduled working hours shall receive a minimum of. two . (2) hours strai.ght time pay ( including the differentials identified in Article IV) for both morning and afternoon court sessions . C . Court Appearance Time : Employees required to appear in court during other than their scheduled working hours shall receive a minimum of three ( 3) hours pay ( including the differen- tials identified in Article IV ) at time and one half. . ARTICLE VI. INSURANCE A . The City shall continue to provide group medical insurance to all employees with benefits comparable to those presently in effect. B . Upon - the completion of three ( 3) years of service , employees shall have their group insurance premiums for dependent medical coverage paid by the City. -3- C. Effective July 1 , 1975 , employees who have been placed on industrial disability retirement subsequent to January 31 , 1974 shall be eligible to continue to participate in the existing group medical insurance plan at their own cost. Participation shall cease upon the earliest of the following : (1 ) the expiration of three ( 3) calendar years following the date of the industrial disability retirement , or (2) the retiree obtaining eligibility for coverage under a comparable medical plan . Retirees who cease to participate may exercise any con- version privileges then in existence. D. Employees shall continue to be covered by dental plan benefits equal to those currently being provided by the City . Effective January 1 , 1977 , employees and dependents shall be covered under a dental plan comparable to that provided for employees under. Resolution 4.300 based upon a super composite rate to be obtained by the City ; provided , however , in the event said super composite rate results in an increase in premium in excess of $10.00 per month per employee , the amount of said excess shall be deducted from the monthly salary rates for each classi - fication provided for in Article III . ARTICLE VII INCOME PROTECTION PLAN , The -existing long-term disability program provided employees by the City shall remain in effect. This program provides , for each incident , pay up. to sixty (60) calendar days at the employee ' s salary rate (excluding overtime but including any special pay in effect at the time of illness or injury) . After the sixty (60) calendar day period , the employee will be covered by an insurance plan paid for by the City which will provide 66-2/3 percent of the employees ' s salary rate (excluding overtime and any special -4- pay) up to aximum of $1 ,500 a month accordance with the. , following : Disability Due Disability Due to Accident to Illness A First 60 days Regular pay Regular Pay Next 24 months 66-2/3% of base pay 66-2/3% of base pay up . to a maximum up to maximum benefit of $1 ,500 benefit of $1 ,500 monthly monthly To age 65 66-2/3% up to None maximum benefit of $1 ,500 monthly Days and months refer to calendar days and months . Plan integrated with Workmen ' s Compensation , Social Secur- ity and other non-private program benefits to which entitled . Disability defined., as the i n.abi 1 i ty to perform 'al l of the duties of regular occupation during two (2) years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education , training or experience. Rehabilitation benefits are provided in the event the indi - vidual , due to disability , must engage in other occupation . Plan will provide 66-2/3% of difference between regular pay and pay of other occupation. Survivors benefit continues plan payment for three ( 3) months beyond death. ARTICLE VIII RETIREMENT The City will provide , for all employees represented by the Association whose retirement is effective or whose death occurs after July 1 , 1978, Public Employees Retirement System -retirement -5- benefits computed by utilizing the two percent at age fifty formula commonly referred to as the California Highway Patrol Retirement Plan . ARTICLE IX EDUCATIONAL INCENTIVE" PLAN The existing Marine Safety Officers ' Education Incentive Plan shall be maintained as follows : EDUCATION MAXIMUM CONTINUING EDUCATION INCENTIVE COLLEGE TRAINING YEARS OF COLLEGE UNITS MONTHLY LEVEL UNITS POINTS . _ SERVICE REQUIRED ANNUALLY AMOUNT 1 30 10 1 6 $ 50 2 60 20 2 3 75 3 90 30 2 3 100 4 120 3 3 150 5 150 4 0 150 STIPULATIONS : 1 . College major shall be Marine Science , Police Science , Business Administration , Oceanography , Fire Science. 2 . Initial eligibility must be approved by the Director of Harbors and Beaches . An acceptable yearly performance evaluation , signed by the Director of Harbors and Beaches , is. required . No incentive taken away without just cause. . 3. Training points approved by the Director may . be substituted for college units , on the following schedule: 10 of 30 ; 20 of 60 ; 30 of 90 . Each twenty hours completed of approved seminars , institutes , etc. are credited with one training point . 4. Pay to be effective on the first of each month following approval . 5. After 120 units or B.A, approved training points may be substituted for college units without limit. -6- 6 . Repeat college course credited as determined by .the colle P 9 . e.9 7 . Repeat approved seminars , institutes , etc . credited as determined by the Director of Harbors and Beaches . 8. All college units require grade of "C" or better to qualify . .9 . Obtaini.ng transcripts or other acceptable documentation is each employee ' s responsibility. 10 . Employee may choose between approved training points or college units where a choice is abailable . No change allowed once choice is made , no double credit allowed. ARTICLE X SICK LEAVE As of July 31 , 1974 , ' all sick leave accumulation was frozen for purposes of payoff upon termination and no additional time will be accumulated. Salary continuation for approved sick leave is covered under Article VII .above . ARTICLE XI FAMILY ILLNESS LEAVE Sick leave m#y be used for an absence due to illness of the employees spouse or child when the employee ' s presence is required at home, provided that such absences shall be limited to five (5) days per calendar year . ARTICLE XII .BEREAVEMENT LEAVE Employees shall be entitled to Bereavement Leave not to exceed three ( 3) working days per calendar year in instance of death in the immediate family. Immediate family is defined as father, mother, sister , brother , spouse , children , stepfather , stepmother , stepsisters , stepbrothers , mother-in-law , father- in-law, or stepchildren. -7 - ARTICLE XIII VACATIONS Anniversary Date : For the purpose of computing vacation , an employee ' s anniversary date shall be the most recent date on which he commenced full -time , City employment.. Annual Vacation : The purpose of annual vacation is to pro, vide a rest period which will enable each employee to return to work physically and mentally refreshed . All employees shall be entitled to annual vacation with pay EXCEPT the following : (a) Employees who have not completed six (6 ) months con- tinuouse service with the City. (b) Employees who work less than full -time. (c) Employees on leave of absence . Vacation Allowance : Permanent employees in City service , having an average work week .of .forty (40) hours., shall accrue annual vacations with pay in accordance with the following : (a) For the first five (5) years of continuous service vacation time will be accrued at the rate of 96 hours per year. (b) After five ( 5) years of continuous service to the completion of ten ( 10) years of continuous service , vacation time will be accrued at the rate of 112 hours per year. (c) After ten ( 10) years of continuous service to the com- pletion of fifteen ( 15 ) . years of continuous service , . vacati.on time will be accrued at the rate of 128 hours per year. ( d) After fifteen (15) years of continuous service , vacation time will be accrued at the rate of 160 hours per year. No vacation may betaken until the completion of six (6) months of service . Permanent, part-time employees assigned a work schedule of less than 2 ,080 and more than 1 ,040 hours per -8- year shall receive vacation in one-half the amounts set forth above . Vacation - When Taken : No employee shall be permitted to take a vacation in excess of actual time earned- and vacation shall not be accrued in excess of 320 hours . Vacations .shall be taken only with permission of the department head ; however , the depart- ment head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department . Terminal Vacation Pay : ` No employee shall be paid for unused vacation other than upon t ermination of employment at which time such terminating employee shall receive compensation at his cur- rent salary rate for ail unused , earned vacation to which . he is entitled up to and including the effective date of his termination . Receipt of Vacation Pay : Upon two week written notification to the -Finance Director , each employee shall be entitled to. re ceive his earned vacation pay , less deductions , in advance , prior to his regular scheduled annual vacation . Such advancements are limited to one during each employee ' s anniversary year . ARTICLE XIV HOLIDAYS Employees represented by the Association and actively employed by the City , in addition to regular compensation , shall receive each month , pay for one twelfth of the total holiday hours earned for the year based on eight (8) hours per holiday. They shall be entitled to an additional eight ( 8) hours of pay at their regular rate for special holidays observed by the City beyond those identified in the Personnel Rules of the City. ARTICLE XV UNIFORMS The City shall continue the existing practice of providing and replacing uniforms and safety equipment . _o_ ' ARTICLE XVI EXCHANGE OF SCHEDULE The Department shall allow employees to exchange work schedules and shifts among those of equal rank and ability , providing prior approval i.s ob.tained from the Department D:irec for and the payback of the shift exchange is completed within sixty (60) calendar days. ARTICLE XVII MANAGEMENT RIGHTS Except as expressly abridged or modified herein , the Director of Harbors and Beaches retains all rights , powers and authority with respect to the management and direction of the performance of marine safety services and the work forces performing such services , provided that nothing herein shall change the City' s obligation to meet and -confer. as.. to . the effects of any such.. management decision upon wages., hours and terms and conditions of employment or be construed as granting the Director or the City the right to make unilateral changes in wages , hours , and terms and conditions of employment . Such rights include , but are not limited to , consideration of the merits, necessity, level or organization of City services , including establishing manning requirements , overtime assign- ments , number and location of work stations , nature of work to. be performed , contracting for any work or operation , reasonable employee performance standards , including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services . ARTICLE XVIII TERMS OF MEMORANDUM OF AGREEMENT This Memorandum of Agreement shall be in effect for a term -10- of twenty-seven months , commencing on July 1 , 1976 , and ending at 'midnight on September 30 , 1978. No further -improvements or changes in the salaries and monetary benefits of the employees represented by the Association shall take effect during the term of this Agreement and the Association expressly waives any right to request any improvements or changes in salaries or monetary benefits for the employees represented by the Association which would take effect prior to October 1 , 1978 , and the City of Hunt- ington Beach through its representatives , shall not be required to meet and confer as to any such request. ARTICLE XIX CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Agreement is of no force or effect whatsoever unless and until adopted by Resolution' of the City Council of the City of Huntington Beach . IN WITNESS WHEREOF , the parties hereto have executed this Memorandum of Agreement this 20th day of December , 1976 . DATED : ��_,1976 CITY OF HUNTINGTON BEACH B C 'ty dministrator By APPROVED AS TO FORM: Director of Personn a Labor Relations MARINE SAFETY OFFICERS ' ASSOCIATION J Nich las Counter III By Z4k4A--��� Ualbor Relations Counsel By By -11 - 11-8- 76 CITY OF HUNTINGTON BEACH PERSONNEL DEPARTMENT MSOA PROPOSAL . 7-1-76 Salary increase 7% $8 , 600 7 . 00 1- 1-77 Dependent dental to $1:0/mo max $ 360 .. 4 1-1- 77 Boat Operator 8 . 5% differential instead of separate class . 2 boat operators paid 6, mos . each . 1-1-77 Shift trade included in Memorandum $8 ,960 7 . 4 7-1- 77 Salary increase 7% '$9 , 200 7 . 0% (12 mos . cost) 9-30-78 Contract termination $9 , 200 7 . 0% T • Res. No, 4392 � 1 , S'rA'1'E OF CALIFORNIA ) COUNTY OF ORANGE ) as: CITY OF HUNTINGTON BEACH ) 1,. ALICIA M. WENTWORTH, the duly elected, . qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City. Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 20th day of December 19 76 by the following vote: AYES: Councilmen: Bartlett, Pattinson, Coen, Gibbs, Siebert, Shenkman NOES: Councilmen: None ABSENT: Councilmen: Wieder ��ZL: City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California RECEIVED FROM asvYL4,15 hal AND MADE A PART OF THE RECORD AT THE -- COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK RESOLUTION NO. 4623 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES ' RETIRE- MENT SYSTEM AND THE CITY OF HUNTINGTON BEACH WHEREAS, the Public Employees ' Retirement law permits the participation of public agencies and their employees in the Public Employees ' Retirement System by the execution of the contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and One of the steps in the procedures to amend this contract is the adoption by the legislative body of the public agency of the Resolution giving notice of its intention to approve an amendment to said contract, .which Resolution shall contain a summary of the change proposed to said contract; and The following is a statement of the proposed changer Section 21252. 01 (Full 2% at age 50) for police and lifeguard members . NOW, THEREFORE, be it resolved that the City Council of the City of Huntington Beach gives , and it does hereby give notice of intention to approve an amendment to the contract between the said City Council and the Board of Administration of the Public Employees ' Retirement System, a copy of said amendment being attached hereto. as an exhibit , and by this reference made a part hereof. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of June, 1978. ATTEST: City Clerk Mayor b/5/78 1. (U-nc 1 APPROVED AS TO FORM: City Attorney - REVIEWED AND APPROVED: INITIATED AND APPROVED: ity Administrator Director of Per onnel and Labor Relations 2. EXHIBIT ONLU ,t AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH The Board of Administration, Public Employees' Retirement System, herein- after referred to as "Board", and the governing body of above public agency, hereinafter referred to as "Public Agency", having entered into a contract under date of October 27, 1945, effective October 1, 1945, and as amended effective January 1, 1950, March 1, 1952, November 1, 1957, March 1, 1958, October 1 , 1961, January 1, 1971, January 12, 1974, April 18, 1975, February 21, 1976, August 7, 1976, and September 17, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective April 18, 1975, and hereby replaced by the following paragraphs number 1 through 10 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined .therein. unless. otherwise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous members and age 50 for local safety members. 2. Public Agency wall participate in the Public Employees' Retirement System from and after October 1, 1945, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except such as by express provisions thereof apply only on the election of contracting agencies. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local Firemen (herein referred to as local safety members) ; b. Local Policemen (herein referred to as local safety members) ; c. Lifeguards on ocean beaches (included as local safety members) ; d. Employees other than local safety members (herein referred to as miscellaneous members). In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60) . 5. The fraction of .final compensation to be .provided for, each .year of credited prior and current service as a safety member shall be determined in accordance with Section 21252.01 of said Retirement Law (2% at age 50) . 6. The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). b. Section 20019.3 (providing for the inclusion of lifeguards on ocean beaches as local safety members) . c. Sections 21263 and 21263.1 (providing upon the death of a member who retired for service or disability for continuance of a post-retirement survivor allowance to certain survivors) for local safety fire members. d. "Local Policemen" shall include persons assigned to identification and communication duties in the Police Department who are not now local safety members and who were in such employment on August 4, 1972, who elect safety membership within sixty days of the effective date of this amendment. e. Section 20930.3 (allowing public service credit under the provisions of Chapter 1437, Stats. 1974, for up to four years of continuous military or merchant marine service). f. Section 20024.2 (defining "final compensation" on the basis of average compensation earnable during the year immediately preceding retirement or any other one year period elected by the member) for local safety members. 7. Public Agency, in accordance with Section 20740, Government Code, ceased to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective on April 18, 1975. Accumulated contributions of Public Agency as of the aforementioned date shall be fixed and determined as provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. CON-702-2 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said. Retirement System: (1) 0.112 percent until June 30, 2000, on account of the liability for prior service benefits. (2) 8.382 percent on account of the liability for current service benefits. (3) 0.201 percent on account of the liability for the 1959 Survivor Program. b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement System: (1) 0.006 percent until June 30, 2000, on account of the liability for prior service benefits. (2) 22.629 percent on account of the liability for current service benefits. c: .A reasonable amount per annum, as fixed by the .Board to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodical investigation and valuations required by law. d. A reasonable amount as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodical investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. B. This amendment shall be attached to said contract and shall be effective on the day of _ , 19 Witness our hands this day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF HUNTINGTON BEACH BY BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to form: Legal Office, PERS Clerk CON-702-4 s. No. 4623 .i STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is 'seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the '. 5th day of June , 19 78 by the following vote: AYES: Councilmen: Thomas, MacAllister, Bailey, Mandic, Siebert, Shenkman NOES: Councilmen: I, None ABSENT: Councilmen: Pattinson City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California According to the table in the PERS letter of June 30, 1999, (page H-3d in the agenda) if not super-funded, the City's retirement: cost of 3% at 50 would be 17.040% the city's cost today for 2% at 50 would be 12.451% (pre 1978 benefits) 17.040 _ 12.451% 4.589 % which is the value of post 1978 retirement costs Current employer's rate as of July 03 that PERS is charging us is 8.997% 4.589 4.408 % represents the value of the pre 1978 benefits which the court has said is legal to charge. 330 RECEIVED FROM ,AND MADE A PART OF THE RECORD AT THE COUNCIL MEETING OF 6 OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK �? _ C,nnr�l�,N I4DM�SV_ Y OF HUNTINGTON BEACP Az� J �1. kMN0\.D51 Kirk 90 MEETING DATE: August 19, 2002 DEPARTMENT ID NUMBER: AS 02-022 Council/Agency Meeting Held: Deferred/Continued to: A roved ❑ Co di 'onally Approv d ❑ Denied �1- C Jerk' Signature Council Meeting Date: August 19, 2002 Department ID Number: AS 02-022 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMB RS SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR e5 00,� -� y PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES '( SUBJECT: ADOPT RESOLUTION REGARDING TAX RATE FOR 2002/2003 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: Should the City adopt a tax rate consistent with the City Charter and California State Law? Funding Source: Not applicable. Recommended Action: Adopt resolution 3 a resolution of the City Council of the City of Huntington Beach suspending for Fiscal Year 2002/2003 the Property Tax Override to pay for employee retirement benefits. Alternative Action(s): Do not adopt a tax rate. Analysis: In 1996, the California voters enacted Proposition 218, which requires all tax increases to be approved by the voters effected by the tax increase. Any changes to the City's voter approved indebtedness may come under Proposition 218 regulation. To help shield the City's interest regarding a potential Proposition 218 challenge the City Attorney's Office has Tax2003.doc - - 8/8/2002 10:12 AM REUEST FOR COUNCIL ACTIS MEETING DATE: August 19, 2002 DEPARTMENT ID NUMBER: AS 02-022 drafted a $0.00 (zero) tax rate resolution. The zero tax rate resolution contains language designed to allow the City Council to return the voter approved indebtedness to the FY 1999/2000 level or lower without Proposition 218 regulation. The City receives a pro-rata portion (16.51%) of the one-percent basic levy collected for all real property. In addition, the California Constitution allows cities to levy additional taxes for voter-approved indebtedness. Since voter approval in 1966, the City has levied an additional tax to pay for a portion of the City's retirement costs. California State Law (section 29100) requires the City Council to annually adopt the tax rate for the voter- approved indebtedness. The Orange County Treasurer/Tax Collector's Office will not collect the tax without the annual tax rate resolution from the City Council. At present, the City's retirement costs consist of contracts with the California Public Retirement System (CaIPERS) and a self-funded supplemental retirement plan administered by the City. The City's estimated retirement costs for fiscal year 2002/2003, are $8.7 million. Under state law, the levy is limited to the lower of the amount needed to pay the retirement costs or the amount levied in fiscal year 1984/85. At present, the lower amount is the fiscal year 1984/85 levy of$0.04930 per$100 of assessed valuation. In March 2001 the Orange County Superior Court rendered a decision in Howard Jarvis Taxpayer Association vs. City of Huntington Beach regarding this tax. The City Council has authorized appeal of the Superior Court's decision in the Jarvis lawsuit. Until this appeal is resolved, the City should maintain the tax rate for fiscal year 2002/2003 at 0.00%. Attachment(s): City Clerk's Page Number No. Description 1 A resolution setting the Fiscal Year 2002/2003 Property Tax Override rate at 0.00% RCA Author: William McReynolds Tax2003.doc ,t3- 8/8/2002 10:12 AM a, ATTACHMENT # 1 • • RESOLUTION NO. 2002-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH SUSPENDING FOR FISCAL YEAR 2002/2003 THE PROPERTY TAX OVERRIDE TO PAY FOR EMPLOYEE RETIREMENT BENEFITS WHEREAS, the City of Huntington Beach will be receiving a pro-rata portion of the one dollar($1.00) Basic Property Tax Rate levied by the County Board of Supervisors as a means of providing revenue for the operation and support of various City departments, offices and activities; and In 1966, and again in 1978, the electorate of the City of Huntington Beach approved a City Charter revision authorizing the City to provide retirement benefits to its employees, and further directing the City to levy a property tax in excess of 1%of the full cash value of property "sufficient to meet all obligations of the City for the retirement system in which the City participates"; and In Carman v. Alvord(1982) 31 Cal.3d 318, the California Supreme Court held that a tax such as that authorized by the City Charter to fund a city's employee retirement obligations is exempt from Proposition 13 (Article XIIIA of the California Constitution)as voter-approved prior indebtedness; and Since 1983-84, Revenue and Taxation Code Section 96.31(b)has limited the City to levying a maximum property tax override at Zero and 0.04930/100th Dollars ($0.04930)per$100 of assessed value to pay for pension programs; and The City currently provides retirement benefits through a contract with the Public Employees Retirement System (PERS). In addition,the City provides a Supplemental Retirement Program offering survivor's benefits that replace certain PERS benefits and a Retiree Medical Plan subsidizing the cost for retirees,to participate in the City Health Plan; and Although the City has participated in PERS since 1945, it has modified its retirement programs since July 1, 1978. For example, after July 1, 1978, the City began reimbursing employees for their contribution to PERS, as well as offering the Supplemental Retirement Program and the Retiree Medical Plan; and In December 1999,the Howard Jarvis Taxpayers Association("HJTA") and a single taxpayer filed suit challenging whether the City's property tax override violates Proposition 13, in a case entitled Howard Jarvis Taxpayers Association, et al., v. County of Orange, and City of Huntington Beach as Real Party in Interest, Orange County Superior Court Case No. 81-87-80 ("Case No. 818780"). At issue was whether the override is limited to only those retirement benefits the City paid for as of July 1, 1978, or for all City-paid retirement benefits, including those benefits authorized after July 1, 1978; and 1 02 Reso:2002/2003 Tax Rate Suspending-Mayer 8/6/02 • Res. No. 2002-83 Case No. 818780 was tried on February 26-27, 2001 in the Orange County Superior Court. On April 2, 2001,the Court issued a final judgment. The Court held that under Proposition 13, the property tax override is unconstitutional "to the extent it exceeds the City's employer contribution for PERS retirement benefits that were in existence prior to July 1, 1978." At a minimum,this means that the property tax override can only be used to pay the employer's contribution to PERS, and cannot be used to fund the City's payment of the employees' member contributions,the Survivor's Continuance Program or the Retiree Medical Program; and The City Council has authorized an appeal in Case No. 818780. Oral argument in the appeal is expected in October 2002, and a Court decision is expected within ninety (90) days thereafter. Completion of the appellate process will take longer still if Supreme Court review is sought; and Absent any appeal,the City would be prohibited from levying a property tax levy for Fiscal Year 2002/2003 because the City's cost to PERS for the employer's contribution is $0 for Fiscal Year 2002/2003; and Pursuant to Resolution No.2001-19,the City Council declared its intent that should a remittitur by an appellate court either affirm or modify the April 2, 2001 judgment in Case No. 818780, declaring that a portion of the property tax override violates Proposition 13,the City shall refund within a reasonable time all property taxes paid from July 1, 1997 to the present consistent with the remittitur upon presentation of a refund claim in compliance with the California Revenue and Taxation Code. As a result, while the City may levy a property tax override for Fiscal Year 2002/2003,the City is committed to reimbursing the tax consistent with any final appellate decision. Consequently,the City has three options: (1) collect the tax,and then use the money for employee benefits subject to refunding it pursuant to any remittitur; (2) collect the tax, impound the proceeds, and then spend or reimburse the revenue consistent with the remittitur; or(3) suspend the tax until its constitutionality can be resolved; and While the City is suspending the Property Tax Override for Fiscal Year 2002/2003,the City still retains the right to levy the tax up to the amount of 0.0493%of assessed value. Under the Proposition 218 Omnibus Implementation Act, specifically Government Code Section 53750(h)(2)(B),there is no requirement of further voter approval under Proposition 218 to "implement or collect a previously approved tax, or fee or charge, so long as the rate is not increased beyond the level previously approved by the Agency, and the methodology previously approved by the Agency is not revised so as to result in an increase in the amount being levied on any person or parcel." Consequently, once the suspension ends,the property tax override may be reinstated without a vote of the electorate. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the property tax override for employee retirement costs for Fiscal Year 2002/2003 is suspended and that no property tax override shall be levied during said Fiscal Year. 2 02 Reso2002/2003 Tax Rate Suspending Mayer 8/16/02 • . Res. No. 2002-83 BE IT FURTHER RESOLVED that the City Council declares that although it is suspending the Property Tax Override for Fiscal Year 2002/2003, it retains the authority to levy the tax in future years up to the rate of 0.0493%of assessed value. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of August 2002. 74 Mayor ATTEST: APPROVED AS TO FORM: L�wi'LJrlei ��� � 8�6-dam City Clerk o8 ,)-a2 City Attorney CIN 01 b 1070_k REVIEWED AND APPRO ED. INITIATE PP D: City Administrato Directo f Administrative Services 3 02 Reso:2002/2003 Tax Rate Suspending-Mayer 8/6/02 Res. No. 2002-83 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of August, 2002 by the following vote: AYES: Green, Boardman, Cook, Houchen, Winchell, Bauer NOES: Dettloff ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California / 0 01. HB CITY of HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Q e_— U-) �T` FROM: GAIL HUTTON, City Attorney GO DATE: August 16, 2002 SUBJECT: Late Communication ' City Council Meeting of August 19, 2002 Agenda Item Number E-4 Attached hereto is page 2 of Resolution No.2002-83 as a substitute and replacement for page 2 of Resolution No. 2002-83 included in the agenda materials for the August 19, 2002,meeting of the City Council. This substitution is necessary because the resolution included in the agenda materials did not contain information received from the Court of Appeals that oral argument in the appeal of Case No. 818780 Will occur in October 2002,and a Court decision is expected Within ninety(90)days thereafter. Accordingly,the attached revised page 2 of Resolution No.2002-83 should be substituted in place of page .of Resolution No._2002- 83 in the agenda materials for the August 19, 2002,meeting of City Council. GAIL HUTTON City Attorney Attachment: Page 2 of Resolution No.2002-83 dated 9/16/02 c: Ray Silver,City Administrator' Bill Workman,Assistant City Elaine Kuhnke,Administrative Analyst Connie Brockway,City Clerk G:\Mulvihill\02Memos\LateCoinmunication.doc �" fo Case No. 818780 was tried on February 26-27, 2001 in the Orange County Superior 'z7'Z. Co . On April 2, 2001,the Court issued a final judgment. The Court held that under Prop 'tion 13, the property tax override is unconstitutional "to the extent it exceeds the City's employ contribution for PERS retirement benefits that were in existence prior to July 1, 1978." At a mini um,this means that the property tax override can only be used to pay the employer's contribution PERS, and cannot be used to fund the City's payment of the employees' member contributions, e Survivor's Continuance Program or the Retiree Medical Program; and The City C ncil has authorized an appeal in Case No. 818780. It will take approximately three ars to complete an appeal; longer still if Supreme Court review is sought; and Absent any appeal,t City would be prohibited from levying a property tax levy for Fiscal Year 2002/2003 becaus the City's cost to PERS for the employer's contribution is $0 for Fiscal Year 2002/2003; and Pursuant to Resolution No. 2 1-19, the City Council declared its intent that should a remittitur by an appellate court either a irm or modify the April 2, 2001 judgment in Case No. 818780, declaring that a portion of the pr erty tax override violates Proposition 13, the City shall refund within a reasonable time all pr erty taxes paid from July 1, 1997 to the present consistent with the remittitur upon presentatio of a refund claim in compliance with the California Revenue and Taxation Code. As a re ult, while the City may levy a property tax override for Fiscal Year 2002/2003, the City is co mitted to reimbursing the taxx consistent with any final appellate decision. Consequently,the Cit as three options: (1) collect the tax, and then use the money for employee benefits subject to r unding it pursuant to any remittitur; (2) collect the tax, impound the proceeds, and then spend o eimburse the revenue consistent with the remittitur; or(3) suspend the tax until its constitutions'ty can be resolved; and While the City is suspending the Property Tax Overri for Fiscal Year 2002/2003,the City still retains the right to levy the tax up to the amount of 0.0 3% of assessed value. Under the Proposition 218 Omnibus Implementation Act, specifically G ernment Code Section 53750(h)(2)(B),there is no requirement of further voter app val under Proposition 218 to"implement or collect a previously approved tax, or fee or charge, s long as the rate is not increased beyond the level previously approved by the Agency, and the ethodology previously approved by the Agency is not revised so as to result in an increase in the mount being levied on any person or parcel." Consequently, once the suspension ends,the pro rty tax override may be reinstated without a vote of the electorate. NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cit of Huntington Beach that the property tax override for employee retirement costs for Fiscal Year 02/2003 is suspended and that no property tax override shall be levied during said Fiscal Year. 2 02 Reso:2002/2003 Tax Rate Suspending-Mayer 8/6/02 • • HB CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION N © - TO: HONORABLE MAYOR AND G� r= MEMBERS OF THE CITY COUNCIL - FROM: GAIL HUTTON, City Attorney k� 3 DATE: August 16, 2002 — > SUBJECT: Late Communication City Council Meeting of August 19, 2002 Agenda Item Number E-4 Attached hereto is page 2 of Resolution No. 2002-83 as a substitute and replacement for page 2 of Resolution No. 2002-83 included in the agenda materials for the August 19, 2002,meeting of the City Council This substitution is necessary because the resolution included in the agenda materials did not contain information received from the Court of Appeals that oral argument in the appeal of Case No. 818780 will occur in October 2002, and a Court decision is expected within ninety(90) days thereafter. Accordingly,the attached revised page 2 of Resolution No. 2002-83 should be substituted in place of page 2 of Resolution No. 2002- 83 in the agenda materials for the August 19, 2002,meeting of City Council. P GAIL HUTTON City Attorney Attachment: Page 2 of Resolution No.2002-83 dated 8/16/02 c: Ray Silver,City Administrator Bill Workman,Assistant City Elaine Kuhnke,Administrative Analyst Connie Brockway,City Clerk G:\Mulvihill\02Memos\LateCommunication.doc Case No. 818780 was tried on February 26-27, 2001 in the Orange County Superior Court. On April 2, 2001,the Court issued a final judgment. The Court held that under Proposition 13, the property tax override is unconstitutional "to the extent it exceeds the City's employer contribution for PERS retirement benefits that were in existence prior to July 1, 1978." At a minimum,this means that the property tax override can only be used to pay the employer's contribution to PERS, and cannot be used to fund the City's payment of the employees' member contributions, the Survivor's Continuance Program or the Retiree Medical Program; and The City Council has authorized an appeal in Case No. 818780. Oral argument in the appeal is expected in October 2002, and a Court decision is expected within ninety (90) days thereafter. Completion of the appellate process will take longer still if Supreme Court review is sought; and Absent any appeal,the City would be prohibited from levying a property tax levy for Fiscal Year 2002/2003 because the City's cost to PERS for the employer's contribution is $0 for Fiscal Year 2002/2003; and Pursuant to Resolution No.2001-19, the City Council declared its intent that should a remittitur by an appellate court either affirm or modify the April 2, 2001 judgment in Case No. 818780, declaring that a portion of the property tax override violates Proposition 13, the City shall refund within a reasonable time all property taxes paid from July 1, 1997 to the present consistent with the remittitur upon presentation of a refund claim in compliance with the California Revenue and Taxation Code. As a result, while the City may levy a property tax override for Fiscal Year 2002/2003, the City is committed to reimbursing the tax consistent with any final appellate decision. Consequently,the City has three options: (1) collect the tax, and then use the money for employee benefits subject to refunding it pursuant to any remittitur; (2) collect the tax, impound the proceeds, and then spend or reimburse the revenue consistent with the remittitur; or 3 suspend the tax until its constitutionality can be resolved; and ( ) P Y While the City is suspending the Property Tax Override for Fiscal Year 2002/2003,the City still retains the right to levy the tax up to the amount of 0.0493% of assessed value. Under the Proposition 218 Omnibus Implementation Act, specifically Government Code Section 53750(h)(2)(B), there is no requirement of further voter approval under Proposition 218 to "implement or collect a previously approved tax, or fee or charge, so long as the rate is not increased beyond the level previously approved by the Agency, and the methodology previously approved by the Agency is not revised so as to result in an increase in the amount being levied on any person or parcel." Consequently, once the suspension ends,the property tax override may be reinstated without a vote of the electorate. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the property tax override for employee retirement costs for Fiscal Year 2002/2003 is suspended and that no property tax override shall be levied during said Fiscal Year. 2 02 Reso:2002/2003 Tax Rate Suspending-Mayer 8/16/02 • 0 RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: ADOPTION OF 2002/2003 TAX RATE COUNCIL MEETING DATE: August 19, 2001 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attomey) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attomey) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED R : .- FORWARDED'' Administrative Staff ( ) Assistant City Administrator Initial City Administrator (Initial) ( ) ( ) City Clerk ( f 'EXR N FOR RETURN"tF ITEM ' (Below Space For City Clerk's UseOnly) RCA Author: William McReynolds