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HomeMy WebLinkAboutF-2c - Joint Powers Authority Agreement for Employee BenefitsBY THE CITY COCIL CITY OF NEWPORT BEACH NOV- 2 3 198T CITY OF NEWPORT BEACH PERSONNEL OFFICE • November 23, 1987 \ TO: Honorable Mayor Cox and AGENDA ITEM:_( J Members of the City Council FROM: Personnel Director SUBJ: JOINT POWERS AUTHORITY AGREEMENT For Employee Benefits Early last summer the City Council authorized the expenditure of $2,000 for the purpose of determining the feasibility of forming a Joint Powers Authority (JPA) focused on the procurement of various categories of employee benefits. I am pleased to report that the study has been successfully concluded, and with the Council's approval of the attached Resolution, this JPA will become a viable entity. Attached, for your review and adoption, is a JPA • agreement between the Cities of Costa Mesa and Newport Beach. This Agreement will establish the JPA for the previously stated purpose of obtaining more economically priced employee benefits. This JPA has the definite potential of additional Public Agencies becoming members. The JPA will address mutual needs, provide for economies of scale, pooling of purchasing power, maximizing return of investment, efficiency of administration, provide portability of benefits without the sharing of liability. Our staff, along with the staff from the City of Costa Mesa has been working on this concept since the beginning of this year, and I wish to acknowledge the time and effort they have put forth to bring this to finalization. Should you accept Staff's recommendation to approve this agreement, this JPA will become a reality, in • that the City of Costa Mesa adopted their Agreement earlier this month. D ane K. Munson (3S) RESOLUTION NO. 87 -167 A RESOLUTION OF THE CITY CCUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT FOR THE JOINT EKERCISE OF POWERS WITH OTHER PUBLIC AGENCIES AND CREATING THE JOINT POWERS EMPLOYEE BENEFIT AUTHORITY TO ESTABLISH, MANAGE, OPERATE, AND MAINTAIN EMPLOYEE BENEFIT PROGRAMS AS PROVIDED IN SAID AGREEMENT. WHEREAS, California Government Code Sections 6500, et sec. provides that two or more public agencies may, by agreement, jointly exercise any power comnon to the contracting parties; and WHEREAS, Ca 1 i fo rn is Gov ernme nt Code Sect ion 45 000 provides that cities may establish a personal system, which personal system may include employee benefit programs containing health, medical, disability, deferred eompensation, insurance, group plans, and other programs and mechanisms for the protection thereof; and WHEREAS, California Government Code Sections 45300, et seq. provides that cities may establish, manage, operate and maintain employee benefit programs, including, but not limited to retirement allowances, pensions, death benefits, disability payments, and others, and provide for the investments, care and administration of retirement funds; and WHEREAS, California Government Code Sections 53201, et Seg. permit a public agency to provide health and welfare benefits for the benefit of its officers, employees, and retired employees, and to contract with insurers, health service organizations, or legal service organizations for plans of health and welfare benefits.; and WHEREAS, California Government Code Section 1157 permits officers and employees of a public agency to authorize deductions -I- from their, salaries or wages for payment of premiums for life, accident, health, disability, and other purposes; and WHEREAS, California Government Code Section 53212 permits public agencies to establish deferred compensation plans for their officers and employees and to make deductions from the salaries and wages of such officers and employees to participate in a deferred compensation plan; and WHEREAS, an agreement entitled "Joint Exercise of Powers Agreement. Creating the Joint Powers .Employee Benefit Authority" has been prepared, in the form attached as Exhibit "A," and incorporated herein by this reference, which, if approved, would create the Joint Powers Employee Benefit Authority; and WHEREAS, the Authority would establish, operate, and maintain a comprehensive program of employee benefits, including, but not limited to, retirement, pension, death, medical, health, disability, deferred compensation, insurance, group plans, and other programs and mechanisms of the provisions thereof; and WHEREAS, the public interest requires and it is to the benefit of this City to join other public agencies to establish and operate a cooperative program of management for employee benefit funds. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby approves that certain "Joint Exercise of Powers Agreement Creating the Joint Powers Employee Benefit Authority" (herein "Agreement ") as attached hereto as Exhibit "A," and authorizes the Mayor to -2- execute said Agreement on behalf of the City. Sect ion 2: City hereby expressly agrees to be bound by all term and condit ions o.f said Agreement. ADOPTED this 23rd day of November, 1987. ATTEST: (X� City Clerk -3- Sect ion 3: Upon said .Agreement becoming effective, the City Manager is hereby authorized in accordance with the Agreement to act as .Director and the City's representative. The City Manager shall take all actions necessary on behalf of the City to carry out and implement the provisions of the Agreement. ADOPTED this 23rd day of November, 1987. ATTEST: (X� City Clerk -3-