Res 1714 - PERS appeal
COUNCIL BILL NO. 2438
RESOLUTION NO. 1714
A RESOLUTION AUTHQRIZING THE FILING OF AN APPEAL ON BEHALF OF THE CITY
OF WOODBURN OF THE FEBRUARY 11, 2003 OREGON PUBLIC EMPLOYEE
RETIREMENT SYSTEM QOARD DECISION; AUTHORIZING THE LEAGUE OF OREGON
CITIES TO COORDINATE THE FILING OF SAID APPEAL; AND REPEALING RESOLUTION
NO. 1711.
WHEREAS, eight public employers brought suit against the Oregon Public
Employee Retirement System in Marion County Circuit Court; and
WHEREAS, those employers claimed they were being overcharged in the
calculation of employer contribution rates; and
WHEREAS, Judge Paul Lipscomb had returned the case to the Oregon
Public Employee Retirement System Board with instructions to update employee
mortality tables, issue new employer rate orders for 1998 and 2000 and make a
new earnings allocation order for the 1999 investment year; and
WHEREAS, the Oregon Public Employee Retirement System Board has yet
to comply with these instructions; and
WHEREAS, the Oregon Public Employee Retirement System Board adopted
the proposed employer rate increases at its February 2003 regular meeting; and
WHEREAS, the proposed employer rate increases would be less if the
Board had complied with Judge Lipscomb's instructions, NOW THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. The City Council authorizes the filing of an appeal on behalf
of the City of Woodburn to the Marion County Circuit Court of the decision of
the Oregon Public Employees Retirement Board dated February 11, 2003
granting a rate increase.
Section 2. The League of Oregon Cities is further authorized to
coordinate the filing of an appeal on the City's behalf, through outside counsel,
in accordance with the Letter of Engagement which is affixed hereto as
Attachment "A".
Page 1 - COUNCIL BILL NO. 2438
RESOLUTION NO. 1714
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Section 3. The City Administrator is hereby authorized to execute and
submit the Letter of Engagement on behalf of the City.
Section 4. Resolution 1 711 is hereby repealed.
Approved as to form:
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City Attorney
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Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
March 10, 2003
Ma rch 11, 2003
March 12. 2003
March 12, 2003
ATTEST:
~
Mary Te ant, City Recorder
City of Woodburn, Oregon
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RESOLUTION NO. 1714
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(City Letterhead)
ATTACHMI!N" ~
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(Date)
John W. Osburn, of Counsel
Peter W. Mersereau
Mersereau & Shannpn, LLP
1600 Benj. Franklin;Plaza
One SW Columbia
Portland, Oregon 97:258
Subject: Representation of City in Appeal from PERS Order
Gentlemen:
This will confirm your availability and willingness to provide legal services to
(name of "City") in filing an appeal to the Circuit Court of
the State of Oregon for Marion County from the decision of the Oregon Public
Employees Retirement Board dated February 11, 2003, and prosecuting that appeal to
conclusion in the circuit court That order is expected to increase the contribution rate for
PERS employers effective July 1, 2003.
The Oregon Administrative Procedures Act provides that an appeal from such an
order must be filed within 60 days of the order from which the appeal is taken.
On October 7,2002, in the case of the City of Eugene v. PERB, which is referred
to as PERS I, Marion County Circuit Judge Lipscomb ruled that PERB violated its
statutory duties in administering the Public Employees Retirement Fund by improperly
calculating employer obligations for payment of benefits to retirees with investment in
variable accounts who choose the money match option, by distributing earnings to
employee accounts without maintaining proper reserves, and by using outdated mortality
tables which prescribe higher monthly retirement payments than are actuarily justified.
PERB's proposed employer rates for 2003 do not reflect corrective calculation in
accordance with Judge Lipscomb's order. In order to maintain the benefit to employers
from Judge Lipscomb's order, and to avoid the loss of that benefit in the 2003 rate
calculation, we authorize you to file an appeal of behalf of the City. A copy of the notice
from PERS as to the proposed employer contribution rate is attached to this letter.
The City has designated as the City's contact person for
information regarding the City's participation as a PERS employer.
We enclose the City's check in the amount of $150 which you agree to accept in
full payment for your services in the circuit court.
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ATTACHMENT
Page...2- of
A
2.
In accepting this engagement, you certify that you know of no conflicts of interest
on the part of either John W. Osburn or Mersereau & Shannon LLP, and agree that you
will not acquire any such conflicts related to the subject of this litigation. The City
acknowledges that you have been engaged represent the participating members of the
Oregon School Boards Association, and the Special Districts Association of Oregon and
the Association of Oregon Counties. The City does not consider the representation of
similarly situated erpployers to constitute a conflict of interest.
If the terms pfthis arrangement are satisfactory, would you please so indicate by
endorsement below and return a copy to the City.
The City of
By
Title:
The terms of this engagement are accepted and agreed to.
Dated:
John W. Osburn, oIl behalf of John W. Osburn,
PC and Mersereau &. Shannon, LLP
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