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HomeMy WebLinkAbout03 - Delegation of Authority to Request DisbursementsCITY OF °� e= NEWPORT BEACH C9C /F00.NP City Council Staff Report Agenda Item No. 3 September 11, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Dan Matusiewicz, Finance Director 949 - 644 -3126, danm @newportbeachca.gov PREPARED BY: Susan Giangrande, Budget Manager APPROVED: A Y-"K TITLE: Delegation of Authority to Request Disbursements ABSTRACT: As a participant in the California Employer's Retiree Benefit Trust Program ( CERBT), the City must delegate the authority to request disbursements from the Other Post Employment Prefunding Plan and such delegation must be authorized by Resolution. RECOMMENDATION: Authorize, by Resolution 2012 - 77 , the ability to request employer disbursements from the CERBT. FUNDING REQUIREMENTS: There is no fiscal impact related to this item DISCUSSION: The City Council authorized participation in the CERBT on March 25, 2008. Our CERBT fund balance as of the most recently received quarterly statement, March 31, 2012, is $10,959,797. The City Council originally delegated the authority to request employer disbursements from the CERBT fund to the incumbents in the positions of Finance Director and Deputy Director Finance. Disbursement requests must be signed by two authorized staff members. CERBT staff members recently recommended that the City increase the number of positions authorized to request employer disbursements because without two Delegation of Authority to Request Disbursements September 11, 2012 Page 2 authorized signatures, disbursements will not be made which can negatively impact City operations. Therefore, the attached resolution delegates the authority to request employer disbursements from the CERBT fund to the incumbents in four positions: Finance Director, Deputy Finance Director, Accounting Manager, and Budget Manager. Having four positions authorized to request employer disbursements should ensure that all disbursement requests will be made on a timely basis. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Prepared by: Submitted by: b Susan Giangrande Dan Matu iewicz Budget Manager Finance Director r Attachments: Resolution 2012- 0a RESOLUTION NO. 2012= A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DELEGATING THE AUTHORITY TO REQUEST EMPLOYER DISBURSEMENTS FROM THE CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM. WHEREAS, Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for annuitants; and WHEREAS, the California Public Employees' Retirement System ( "CaIPERS ") Board of Administration has sole and exclusive control and power over the administration and investment of the Prefunding Plan known as the California Employer's Retiree Benefit Trust Program ( "CERBT "); and WHEREAS, the City Council of City of Newport Beach elected to participate in the CERBT effective March 25, 2008, and WHEREAS, CaIPERS has requested that the City of Newport Beach ( "Employer ") adopt this resolution to increase the number of positions that have the authority to request Employer disbursements from the CERBT. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Newport Beach delegates to the positions of Finance Director, Deputy Finance Director, Accounting Manager, and Budget Manager the authority to request on behalf of the Employer, disbursements from the CERBT and to certify as to the purpose for which the disbursed funds will be used. ATTEST: ADOPTED this 11th day of September, 2012. City Clerk Mayor 3