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HomeMy WebLinkAbout03 - Ord 2009-10 - CalPERS Contract Amendment - LifeguardsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 May 12, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Human Resources Department Terri L. Cassidy, Human Resources Director 949 - 644 -3300, tcassidv(o)-city.newport- beach.ca.us SUBJECT: Ordinance to Approve an Amendment to CaIPERS Contract to Provide CaIPERS Retirement formula (3 % @50) for Lifeguard Safety Employees per ratified Memorandum of Understanding (July 2006 - December 2008) ISSUE: Shall the City approve an Amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration of the California Public Employees' Retirement System to implement the 3 % @50 retirement formula for Lifeguard Safety Employees as previously authorized by the Memorandum of Understanding (MOU) approved by City Council in 2007? RECOMMENDATION: Adopt Ordinance No. 2009 -10, an Ordinance of the City Council of the City of Newport Beach Authorizing an Amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration of the California Public Employees' Retirement System. DISCUSSION: Background: On April 14, 2009, the City Council adopted Resolution No. 2009 -18 and introduced Ordinance No. 2009 -10 to approve this contract amendment. There must be a minimum of 20 days between adoption of the Resolution and adoption of the Ordinance, and final action may be taken at this meeting. Implementation of CaIPERS Retirement formula (3 % @50) for Lifeguard Safety Employees May 12, 2009 Page 2 During the April 14, 2009 City Council meeting, Rick Santos, Senior Actuary who prepared the CalPERS actuarial report on the 3 % @50 retirement benefit for the lifeguard unit answered questions from Council regarding the costs. Mr. Santos indicated the estimated cost to implement the 3 % @50 retirement benefit for FY 2009 -10 was $135,000 which was based on preliminary budget projections provided by staff. In the 2007 negotiation process with Lifeguard Management (LMA), staff provided Council with a cost estimate of $43,000 - $48,000 to implement the retirement benefit. This estimate was for the second six (6) months of FY 2008 -09 when the plan was scheduled to be implemented and was based on FY 2006 data. Since the meeting of April 14, staff has refined the preliminary projected Safety salaries (based upon the current employee profile) and applied the FY 09/10 Safety PERS retirement rate to the projected Safety salaries for FY 2009 -10 and estimates the cost increase for this benefit to be $127,977 for next fiscal year. Funds for this benefit increase are provided for in the Proposed FY 2009 -10 Budget. If adopted, the Ordinance may take effect no less than 30 days later. The effective date of the ordinance will be June 11, 2009. The effective date of the contract amendment must be the first day of a payroll period and may not be earlier than the day after the effective date of the Ordinance. The effective date of the CalPERS contract amendment would be June 20, 2009. Environmental Review: Not applicable. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability: Funding for the Lifeguard Safety employees contract amendment has been accounted for in the proposed Fire Department FY 2009 -10 budget. Pre red by: Submitted by: olyn Bo and Terri L. Cassidy Human Resources Manager Human Resources Director • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 23 April 14, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Human Resources Department Terri L. Cassidy, Human Resources Director 949- 644 -3300, tcassidy(a)city.newport- beach.ca.us SUBJECT: Implementation of CaIPERS Retirement formula (3 % @50) for Lifeguard Safety Employees per ratified Memorandum of Understanding (July 2006 - December 2008) ISSUE: • Shall the City authorize an Amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration of the California Public Employees' Retirement System to implement the 3 % @50 retirement formula for Lifeguard Safety Employees as previously authorized by the Memorandum of Understanding (MOU) approved by City Council in 2007? RECOMMENDATION: Adopt Resolution 2009 -_ (Attachment 1) relating to the City's Intention to Approve an Amendment to the Contract between the Board of Administration, California Public Employees' Retirement System (CaIPERS) and the Newport Beach City Council to authorize a "3 % @50" retirement formula for specified Lifeguard Safety employees within the Fire Department. 2. Introduce Ordinance No. 2009- (Attachment II), an Ordinance of the City Council of the City of Newport Beach Authorizing an Amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration of the California Public Employees' Retirement System, and pass to second reading on May 12, 2009. n U Implementation of Ca1PERS Retirement formula (3 % @50) for Lifeguard Safety Employees April 14, 2009 Page 2 • DISCUSSION: Background: In May 2006 the City's negotiation team began to Meet and Confer in good faith with the Lifeguard Management Association (LMA) pursuant to Government Code Section 3500 et. seq, (Meyers - Milias -Brown Act) on wages, benefits, hours and terms and conditions of employment. In January 2007, tentative agreement was reached following intense negotiations including a LMA declared impasse and the use of a mediator from State Mediation and Conciliation Service. This agreement was reached only after City Council, on January 23, 2007, authorized the City's negotiating team to offer the 3 % @50 retirement benefit. On March 13, 2007, City Council approved a MOU with the LMA which states on page 16 (Attachment III), that the City would implement the 3 % @50 retirement program no later than December 31, 2008 (at the end of the contract). Th a rationale for the 3 % @50 retirement benefit was that it be given in exchange for reduced salary adjustments in 2007 and 2008 and to make these employees comparable to other Newport Beach City sworn safety units (Police /Fire), and the majority of their lifeguard counterparts in Southern California. Newport Beach Police safety received the 3 % @50 formula in 2002 and Fire safety in 2007. • The implementation date for the 3 % @50 retirement benefit with LMA has been delayed due to the unexpected and extended absence of the Human Resources staff member who is customarily responsible for Labor Relations and in order to comply with Senate Bill 1123 (effective January 1, 2009) requiring actuarial input at City Council meetings. According to the actuarial valuation (Attachment IV) provided by PERS in 2008 (actuarials are required close to the date of implementation), implementing the 3 %@50 formula for lifeguards will increase the CalPERS "employer rate" (what.the City pays as a percentage of payroll) for all safety employees .395% (in other words, adding .395% to the 28.760% safety rate for Fiscal Year 2010). The Administrative Services Department has estimated the dollar cost of bringing Lifeguards up to the agreed -upon retirement will be $182,553 for FY 2009 -2010. In subsequent years, the cost increase is approximately $161,977 based upon any future adjustments to salaries. Senate Bill 1123, approved by the legislature on September 27, 2008 and effective January 1, 2009, requires that "... local legislative bodies, ... when considering changes in retirement benefits or other post employment benefits, shall secure the services of an actuary to provide a statement of the actuarial impact upon future annual costs, including normal costs and any additional accrued liability, before authorizing changes in the public retirement plan benefit or other post - employment benefits." To comply with the new law, Richard Santos, the Senior Actuary who prepared the report will be present to answer questions regarding Ca1PERS actuarial report on the 3 % @50 • O Implementation of Ca1PERS Retirement formula (3 0/6@50) for Lifeguard Safety Employees . April 14, 2009 • Page 3 retirement benefit for the Lifeguard unit. Mr. Santos is the actuary for all Orange County Public Agencies and is very familiar with Newport Beach's rates. CalPERS requires that clearly defined procedures be followed for contract amendments. Following are the guidelines provided by CalPERS in order to complete the contract amendment process: A Resolution of Intention must be approved by the City Council (April 14, 2009 City Council Meeting), and a first reading of the Ordinance authorizing an amendment to the contract must occur (April 14, 2009 City Council Meeting). A final reading of the Ordinance (May 12, 2009 City Council Meeting) and a City Council vote for or against adoption must take place. If adopted, the Ordinance may take effect no less than 30 days later. The effective date of the ordinance will be June 11, 2009. • The effective date of the contract amendment must be the first day of a payroll • period and may not be earlier than the day after the effective date of the Ordinance. The effective date of the CalPERS contract amendment would be June 20, 2009. It is certainly a different fiscal climate as this item is being presented from back in March 2007 when City Council agreed to the 3 % @50 retirement plan for LMA. However, the City's Meet and Confer process and State law were adhered to and the past contractual obligations were entered into in "good faith" by the authorized bargaining representatives empowered to do so. LMA has received lower salary adjustments (2% lower in 2007 and 1% in 2008) than the Police Department employees received in exchange for this retirement benefit. Similar lower salary adjustments were negotiated with Police and Fire safety when they received this retirement benefit. Environmental Review: Not applicable Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability: Ll Attachment II ORDINANCE NO. 2009- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF • NEWPORT BEACH, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: That the Amendment to the contract between the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said Amendment being attached hereto, marked "Exhibit", and by such reference made a part hereof as though set out in full. SECTION 2: The Mayor of the City of Newport Beach is hereby authorized, empowered and directed to execute said Amendment for and on behalf of the City. SECTION 3: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, . clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 4: This ordinance shall take effect thirty (30) days after its adoption, and prior to expiration of fifteen (15) days from the passage thereof shall be published once in the Daily Pilot, a newspaper of general circulation, published in Costa Mesa and circulated in the City of Newport Beach, and thenceforth and thereafter shall be in full force and effect. SECTION 5: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2009, and adopted on the — day of , 2009, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR ATTEST: CITY CLERK I Ca1PERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach ' The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective July 1, 1945, and witnessed April 27, 1945, and as amended effective March 1; 1948, November 1, 1951, April 1, 1956, October 31, 1970, September 18, 1971, December 11, 1971, September 24, 1977, December 18, 1977, June 17, 1978, March 24, 1979, June 30, 1979, January 12, 1989, December 2, 1989, June 12, 1996, July 12, 2000, August 26, 2000,.June 15, 2002, November 30, 2002, November 13, 2004, July 23, 2005, December 22, 2007 and March 15, 2008 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective March 15, 2008, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive: 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 55 for local miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System ' from and after July 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 those, which by express provisions thereof, apply only on the election of a contracting agency. Attachment IV CONTRACT AMENDMENT COST ANALYSIS - VAWATION BASIS: June 30, 2007 SAFETY PLAN FOR CITY OF NEWPORT BEACH • Employer Number: 60 Benefit Description: Section 21362.2, 3% @ 50 Full Formula for Local Safety Members (Safety Lifeguards Only) Actuarial Cost Estimates in General What will this amendment cost? Unfortunately, there is no simple answer. There are two major reasons for the complexity of the answer: Rrst, all actuarial calculations, Including the ones In this cost estimate are based on a lot of assumptions about the future — demographic assumptions about the percentage of your employees that will terminate, die, become disabled, and retire in each future year, and economic assumptions about what salary Increases each employee receives and the most important assumption: what the assets at CaIPERS will earn for each year into the future until the last dollar is paid to current members of your plan. While CaIPERS has set these assumptions as our best estimate of the real future of your plan, it must be understood that these assumptions are very long term predictors and will surety not be realized each year as we go forward. For example, the asset earnings for the past 15 years at CalPERS have ranged from -7.2% to 20.1 %, yet the 15 year compound return has been 10.4 %, well above our assumption. • Second, the very nature of actuarial funding produces the answer to the question of amendment cost as the sum of two separate pieces: 1. The increase in Normal Cost (i.e., the increase in future annual premiums in the absence of surplus or unfunded liability) expressed as a percentage of total active payroll, and 2. The increase In Past Service Cost (i.e., Accrued Liability — representing the current value of the increased benefit for all past service of current members) which is expressed as a lump sum dollar amount. . The cost is the sum of a percent of future pay and a lump sum dollar amount (the sum of an apple and an orange if you will). To communicate the total cost, either the increase in Normal Cost (i.e., future percent of payroll) must be converted to a lump sum dollar amount (in which case the result is called the increase in the present value of benefits), or the Past Service Cost (i.e., the lump sum) must be converted to a percent of payroll (in which case the result is the increase in the employer's rate). Converting the Past Service Cost lump sum to a percent of payroll requires a specific amortization period. So, the new employer rate can be computed in many different ways depending on how long one will take to pay for it. And don't forget the first bullet point above; all of these results depend on all of the assumptions being exactly realized. Rate Volatility As is stated above, the cost estimates supplied in this communication are based on a number of assumptions about very long term demographic and economic behavior. Even if these assumptions are exactly realized (terminations, deaths, disabilities, retirements, salary growth, and investment return) there will be differences on a year to year basis. This year to year difference between actual experience and the assumptions is called gains and losses and serve to raise or lower the employer's rates from year to year. So, the rates will bounce around, especially due to the ups and downs of investment returns. The volatility in annual employer rates may be affected by this amendment. The reason is that higher benefits and earlier retirement ages require the accumulation of more assets per member earlier in their career. Rate volatility can be measured by the ratio of plan assets to active member payroll. Higher asset to payroll ratios produce more volatile employer rates. To see this, consider two plans, one with assets that are 4 times active member payroll, and the other with assets that are 8 times active member payroll. In a given year, see what happens when assets rise or fall 10% above or below the actuarial assumption. For the plan with a ratio of 4, this 10 percent gain or loss in . assets is the same in dollars as 40% of payroll; and for the plan with a ratio of 8, this is equivalent to 80% of payroll. If this gain or loss is spread over 20 years (and we oversimplify by ignoring interest on the gain or loss), then the first plan's rate changes by 2% of pay while the second plan's rate changes by 4% of pay. November 19, 2008 Page 1 • CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: June 30,2007 SAFETY PLAN FOR CITY OF NEWPORT BEACH Employer Number. 60 Benefit Description: Section 21362.2,3% @ 50 Full Formula for Local Safety Members (Safety Lifeguards Only) When a plan is amended, liability changes but assets do not. In addition, the desired state Is to be 100% funded (i.e., to bring assets to equal accrued liability). Therefore, we disclose the ratio of accruedbility to payroll rather than assets to payroll as a measure of the plan's potential future rate volatility. The highefie ratio, the more volatile the future rate may be. The table below contains these measures of potential future rate volatility. As of June 30, 2007 Current Plan Post - Amendment Accrued Liability $ 308,551,677 $ 309,338,753 Payroll 25,034,573 25,034,573 Volatility Index 12.3 12.4 It should also be noted that these ratios tend to stabilize as the plan matures. That is, all plans with no past service start their lives with zero assets and zero accrued liability — and so asset to payroll ratio and liability to payroll ratio of zero. However, as time goes by these ratios begin to rise and then tend to stabilize at some constant amount as the plan matures. Higher benefit levels and earlier expected retirements produce higher constant future ratios. For example, our miscellaneous plans have average ratios that range from 2.6% for 2% @ 60 plans to 5.1% for 2.7% @ 55 plans. For safety plans, the ratios range from 5.2% for 2% @ 55 plans to 9.3% for 3% @ 50 plans. Present Value of Projected Benefits • 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 ail 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. As of June 30, 2007 Current Plan Post= Amendment Total Assets at Market Value (MVA) $ 292,102,211 $ 292,102,211 Actuarial Value of Assets (AVA) 250,062,262 250,062,262 AVA / MVA 85.6% 85.6% Present Value of Projected Benefits (PVB) $ 364,567,961 $ 365,332,822 Actuarial Value of Assets (AVA) 250.062,262 250,062,262 Present Value of Future Employer and 11,505,695 115,270,560 Employee Contributions (PVB - AVA) Change to PVB _ 764,861 Accrued Liability 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 aarued &Nl,ily. November 19, 2008 Page 2 13 CONTRACT AMENDMENT COST ANALYSIS- VALUATION. BASIS: June 30,2007 SAFETY PLAN FOR CITY OF NEWPORT BEACH Employer Number. 60 Benefit Description:Section 21362.2,3% @ 50 Full Formula for Local Safety Members (Safetytftbrds Only) Disclosure If your agency is requesting cost information for two or more benefit changes, the cost of adoppb than one of these changes may not be obtained by adding the individual costs. Instead, a separate valoOdf cost be done to provide a cost analysis for the combination of benefit changes. If the proposed plan amen to only some of the employees in the plan, the rate change due to the plan amendment still applies to the, an, and is still based on the total plan payroll. Any mandated benefit improvements not included in the June 30, 2007 annual valuation have not'694rincorporated into this cost analysis. Please note that the cost analysis provided in this document may not be relied upon after August 1, 2009. If you have not taken action to amend your contract, by this date, you must contact our office for an updated cost analysis, based on the new annual valuation. Descriptions of the actuarial methodologies, actuarial assumptions, and plan benefit provisions may be found in the appendices of the June 30, 2007 annual report. Please note that the results shown here are subject to change if any, of the data or plan provisions change from what was used in this study. Certification • This actuarial valuation for the proposed plan amendment is based on the participant, benefits, and asset data used • in the June 30, 2007 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. The valuation has been performed in accordance with standards of practice prescribed by the Actuarial Standards Board, and 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. Richard Santos, ASA, MAAA Senior Pension Actuary, CaIPERS • Fin Process Ids: Annual- 318076 Base - 321835 Proposal- 321836 November 19, 2008 Page 5 • CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: 3une 36, 2667 SAFETY PLAN FOR CITY OF NEWPORT BEACH Employer Number: 60 Benefit Descdptkm: Section 21362.2; 3% @ 50 Full Formula for Local Safety Members (Safety Lifeguards Only) Summary of Plan Amendments Valued COVERAGE GROUP 76001 Pre - Amendment The Service Retirement benefit calculated for service earned by this group of members Is a monthly allowance equal to the product of the 3% @ 55 benefit factor, years of service, and final campensabcn. (Final compensation is reduced by $133.33 per month for members with a modified formula). The benefit factors for retirement at integral ages are shown below: Retirement 3% at 55 Agee Factor 50 2.400% 51 2.520% 52 2.640% 53 2.760% 54 2.880% 55 and older 3.000% Post- Amendment The Service Retirement benefit calculated for service earned by this group of members is a monthly allowance equal to the product of the 3% @ 50 benefit factor, years of service, and final compensation. • (Final compensation is reduced by $133.33 per month for members with a modified formula). The benefit factors for retirement at Integral ages are shown below: Retirement 3% at 50 Age Factor 50 3.000% 51 3.000% 52 3.000% 53 3.000% 54 3.000% 55 and. older 3.000% • November 19, 2008 Page 6 F] COUNCIL AGENDA No. 3 ORDINANCE NO. 2009 -10 • 3-- AN AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: That the Amendment to the contract between the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said Amendment being attached hereto, marked "Exhibit ", and by such reference made a part hereof as though set out in full. SECTION 2: The Mayor of the City of Newport Beach is hereby authorized, empowered and directed to execute said Amendment for and on behalf of the City. SECTION 3: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the • validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 4: This ordinance shall take effect thirty (30) days after its adoption, and prior to expiration of fifteen (15) days from the passage thereof shall be published once in the Daily Pilot, a newspaper of general circulation, published in Costa Mesa and circulated in the City of Newport Beach, and thenceforth and thereafter shall be in full force and effect. SECTION 5: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the 14th day of April, 2009, and adopted on the 12th day of May, 2009, by the following vote, to wit: AYES, COUNCILMEMBE NOES, COUNCILMEMBE • ABSENT COUNCILMEMB APPROVED AS TO FORM: app R� nt CITY ATTORN MAYOR ATTEST: CITY CLERK 0 • Authorized to Publish Advertisements of all kinds Including public notices by Decree of the Superior C1wrt of Change Ctwnty, California. Number A-6214. September 29, 1%1, and A 24831 lone 11. 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: May 16, 2009 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on May 18, 2009 at Costa Mesa, California. Signat RECEIVED 21119 MAY 22 AM 9? 31 7LyL fFr -CE OF p� I l`E CSI t t C�lCr7fC WY of I�FNPORr BEA(,ti .1111 Subject ordnance wee adootted 2009tro Mh day of May, AYES COUNCIL ?AMBERS', KAN. DAM. GARDNER, DAIGLE, MAYOR SELICN NCFS. COUNCIL MEMBER'. ABSENT, COUNCIL MEM AIISiMN. COUNCIL MEM- MAYOR Edwyp S110 CITY CLERK. Lnlani I &own for ende test a aewlC4k CIrenew m BM CrtY Clerk's o d tle LAy d Newport rt B NtlI. PWIeNed Newport BCa1K'. Costa Mora Day PAUL May 16. 2009 SaM