HomeMy WebLinkAboutAgenda Statement 1977/07/26 Item 18CITY OF CHULA VISTA .
' Item No._
COUNCIL AGENDA STATEMENT
For meeting of 7/26/77
ITEM TITLE Resolution~~~("-
Fund to Test th
Appropriating the Additional Sum of $4,000 for the NIMLO Litigation
Constitutionality of the Unemployment Compensation Act of 1976
SUBMITTED BY City Attorney
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES x NO )
For many weeks, the Council has maintained the position of contributing no more than
$1,000 to the litigation fund seeking to test the Federal Unemployment Compensation
Act. Council, while certainly justified, has felt that that is a rather substantial
sum to be requested when more than $1-1/2 million has now been built up in the NIMLO
litigation trust fund.
I concur with the Council's reasoning, but that sum is insignificant when weighed
against the fact that a failure to overturn the law would cost the City in the first
year $78,000 and would be substantially higher thereafter. Therefore, I strongly
urge that we do become a party to the lawsuit and appropriate an additional $4,000
so that we may send in the $5,000.
I would especially draw your attention to the resolution adopted by the NIMLO Board
of Trustees wherein they state as follows:.
"NOW THEREFORE, BE IT RESOLVED that the NIMLO Litigation Trust Fund make an
immediate refund to each participating jurisdiction under 25,000 population of
all amounts contributed in excess of the larger of $.05 per person of population
or $250; and that a general refund pro rata to all participating jurisdictions be
deferred for future consideration by the NIMLO Litigation Trustees; and that at
all times the Trust Fund shall be maintained in a liquid, interest-bearing medium
under the exclusive control of the Operations Committee until disbursement is necessary."
It seems evident that the cities will eventually receive a reimbursement on a pro rata
basis. Further, as I have indicated, using the formula method for calculating Chula
Vista's proportionate contribution, the sum of $2900 would be required anyway, so that
we are being asked on the flat rate basis to contribute $2000 more than the smaller
cities would be contributing based upon the formula.
EXHIBITS
Agreement x Resolution x Ordinance Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT Appropriate $4000 from the unappropriated reserves of the
General Fund
STAFF RECOMMENDATION Approve resolution
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION f
-~ l
Form No, F-229
. ~ ,l `~? 3
CERTIFICATE CF CITY/DIRECTOR OF FINANCE
Certification of. i3nap ~-opriated Ealance
100 0150 5202
I HEREB`l CEF.TIEY that
appropriation of funds for the.
reselution is available in the
came into the Treasury, and is
the money required for t'::e
urpcse set forth i .i the attached.
reasury, or is articipat~dto
therwise unapprc~}riatec?.
Amount S 5,000.00 r~und General
Purpose NIMLO Litigation Fund
Eidder N/A
Director of Financfl !~~
The City of ChuJ.a ~'i sta
Date By
Certification of UnencumberQd 3alance
I i3F.REBY CEkTIFY that the indebtedness and :;bligation
to be incurred by the contract or agreement autl:ori~ed by th~~
attached resolution can De incurred ~.~ithout the Violation of any
Gf she provisions of the Charter of t;~c City cf Chula ViStc':, o
t?-.e Constitution Or the laws of the Statevf Ca'_ifCr:'~id, ~~-i4:
sufficient monies have been appropriated for the pur:pos~~~ of` :~ui::
;;ontract, that sufficient monies to me~:t the oblic~~3tio::s of th,.c
co:z`raci are actually in the Treasury, or ars a.nticipateta to aoR~,~
into the Treasury to the credit of the appropriation froT~ whici:
the same are to be dra',an, and that said'r:~onies now actuaiiy -n
th Treasury, togetizer with the monies anticipated to come i:ltc)
t?'ie Treasury, to the credi` of said appropriation a~-e cthorw~.sc
unencnrik~ered.
fimount Not to EXCeed $
Director of Firar_c~:
T?-.e City of Chula Vi :~~::a.
Date
F' .nd
rurpose
33idder
By
Dept./Activity
Certificate: ?ir.,, 3