Item 13 Staff Report Authorize Amicus Participation in Metropolitan Water District of Southern California, et al. v, Superior Court of California (Dewayne Cargill, et al. Real Parties in Interest), Supreme Court, Second Appellate District, Division One, Cn
MEETING DATE: 5/6/02
ITEM NO. 3
COUNCIL AGENDA REPORT
DATE: April 23, 2002
TO: MAYOR AND TOWN COUNCIL
FROM: ORRY P. KORB, TOWN ATTORNEY QV"
SUBJECT: AUTHORIZE AMICUS PARTICIPATION IN METROPOLITAN WATER
DISTRICT OF SOUTHERN CALIFORNIA, ET AL. v, SUPERIOR COURT OF
CALIFORNIA (DEWAYNE CARGILL, ET AL. REAL PARTIES IN INTEREST),
SUPREME COURT, SECOND APPELLATE DISTRICT, DIVISION ONE,
CASE NUMBERS B148446 AND B148451, AT NO COST TO THE TOWN
RECOMMENDATION:
Authorize the Town Attorney to include the Town of Los Gatos as an amicus curiae in the case of
Metropolitan Water District of Southern California, et al. v. Superior Court of California (Dewayne
Cargill, et al., real party in interest), Supreme Court, Second Appellate District, Division One, case
numbers B148446 and B148451, at no cost to the Town.
BACKGROUND:
This case places significant financial and administrative burdens on local public agencies to enroll
part time and temporary workers in the Ca1PERS retirement system, even if those workers are paid
and employed by private companies on a contract basis and are not hired through a merit selection
system.
Here, a water district temporary employee joined in a class action suit by employees seeking
retroactive classification as "common law employees" in order to qualify for retirement benefits.
The district argued that the employees do not fit the statutory definition of "employee" under the
retirement law. The trial court held for the employees, ruling that temporary employees should be
PREPARED BY: ORRY P. KORB, TOWN ATTORNEY
OPK:LMB/wp [N:ATY\Cargill.AMI.TCR.wpd]
Reviewed by: anager
Clerk Finance Community Development
Rev: 4/23/02 3:40 .'7 Reformatted: 7/19/99
File# 301-05
meyers
April 16, 2002
Dear Colleague:
n a v e riback silver & wilson
professional law corporation
Arthur A. Hartinger
Terry Roemer
Attorney at Law
510.351.4300
Re: Request for Participation in Friends of the Court Brief
Metropolitan Water District of Southern California, et al. v. Superior Court of California
(Dewayne Cargill, et al, Real Parties in Interest)
As many of you know, Meyers Nave is working with the League of California Cities to prepare a Supreme Court
amicus curiae brief on behalf of California agencies that could be adversely impacted by the court of appeal's
decision in Cargill v. Metropolitan Water District of Southern California. Art Hartinger and Terry Roemer of the
Meyers Nave - Labor and Employment Group are preparing the brief. Dozens of agencies have already
authorized their name to appear on the brief.
Meyers Nave is preparing the Cargill brief as a public service on behalf of its clients, other California agencies and
the League of California Cities. Your agency will not incur attorneys' fees or other costs by participating in this
project.
Unless overturned by the Supreme Court, the Cargill decision will require all CaIPERS contracting agencies to
enroll workers who meet the "common law employee" definition in CalPERS -- even if those workers are paid and
employed by private companies. By a 7-0 vote, the California Supreme Court granted review on January 23,
2002.
The court of appeal's underlying decision at issue could likely impose significant unexpected operational, financial
and administrative burdens on local public agencies throughout the state. For example,
• The ruling severely limits agencies' operational flexibility by limiting agencies' ability to use
temporary labor for legitimate purposes such as capital improvement projects and various
professional services.
• The ruling imposes significant unexpected financial burdens on local public agencies. Most
agencies have not factored into their budgets the cost of providing CalPERS benefits to workers
provided by private staffing and consulting firms. Because the court of appeal's ruling involved
an issue of first impression, and CalPERS has never promulgated regulations defining eligible
employees to include these types of workers, the requirement comes as an unexpected surprise,
with an unbudgeted fiscal impact.
North Bay Office
Santa Rosa, California
Central Valley Office
East Bay Office 777 Davis Street, Suite 300 • San Leandro, California 94577 • Telephone 510.351.4300 • Fax 510.351.4481 • www.meyersnave.com Stockton, California
Public Agency
April 16, 2002
Page 2
• The ruling also imposes significant administrative burdens on local public agencies including
determining the employment status of the worker and proper calculation of CaIPERS benefits for
the worker. Determining whether a worker meets the definition of "common law employee," and
thus is eligible for CaIPERS enrollment, involves consideration of numerous factors dependent on
the specific circumstances of the individual's working relationship with the agency. Because the
worker is employed by a private company, the public agency must depend on the company to
provide accurate reporting regarding the individual's compensation for purposes of determining
CaIPERS contributions.
• The requirement of enrolling such individuals in CaIPERS will result in mandatory deductions
from the individuals' paychecks for CaIPERS contributions, which may dissuade skilled workers
who possess skills in great demand from offering their services to public agencies. Even though
these individuals did not intend to become employees of the public agency, they will not be able
to opt out of CaIPERS.
Our effort at Meyers Nave is supported by the League of California Cities and we anticipate that it will be
supported by other public agency advocacy groups as well. We hope your agency will support this effort too.
Please authorize us to add your agency to the long list of public agencies that will appear in the Supreme Court as
an amici. Again, joining this effort involves no cost to your agency and only minimal effort. All you must do is
obtain appropriate approval from your agency and complete and return the authorization form enclosed with this
letter.
We ask you to return the enclosed authorization by facsimile as soon as possible but no later than
May 10, 2002.
Thank you for considering this request. We look forward to receiving your authorization form. If you need further
information, please call Terry Roemer or Art Hartinger at 510-351-4300 or email either of them.
Very truly yours,
MEYERS NAVE, RIBACK, SILVER & WILSON
f:Dthi
Arthur A. Hartinger
Terry Roemer
Enclosure
Town Council Minutes May 6, 2002
Redevelopment Agency Los Gatos, California
SANTA CLARA VALLEY WATER DISTRICT/CENTRAL-NORTH CENTRAL
FLOOD CONTROL ADVISORY COMMITTEE/APPOINTMENTS (12.12)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council amend Council Committee
Appointment Roster to include the Santa Clara Valley Water District Central/North Central Flood
Control Advisory Committee appointments. Carried unanimously.
AMICUS BRIEF/METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, ET AL/
VS/SUPERIOR COURT OF CALIFORNIA/DEWAYNE CARGILL, ET AL (13.28)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council authorize the Town Attorney to
include the Town of Los Gatos as an amicus curiae in the case of Metropolitan Water District of
Southern California, et al vs. Superior Court of California (Dewayne Cargill, et. al, real party in
interest), Supreme Court, Second Appellate District, Division One, case numbers B148446 and
B148451, at no cost to the Town. Carried unanimously.
ANNEXATIONS/CLERICAL CORRECTIONS TO RESOLUTIONS (14.14)
Motion by Mr. Glickman, seconded by Mr. Blanton, to approve correction of the following
resolutions:
Resolution 2001-57 (Blossom Hill Road #22)
Resolution 2001-58 (Linda Avenue #2)
Resolution 2001-94 (Blossom Hill Manor #9)
Resolution 2002-06 (Blossom Hill Manor #10)
Resolution 1998-189 (Robie Lane #2)
Carried unanimously.
ART PANELS ON FENCE/PLAZA PARK/RENOVATION SITE (15.33)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council approve the Arts Commission's
request to install art panels on the fence at the Plaza Park renovation site. Carried unanimously.
STEPHANIE LANE #2/ANNEXATION/15981 STEPHANIE LANE/RESOLUTION 2002-56 (16.14)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council adopt Resolution 2002-56 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS ORDERING THE REORGANIZATION
OF CERTAIN UNINHABITED TERRITORY DESIGNATED AS STEPHANIE LANE#2
(APN: 523-26-003) TO THE TOWN OF LOS GATOS. Carried unanimously.
ZERO EMISSION VEHICLE PURCHASE/AIR POLLUTION/RESOLUTION 2002-62 (17.23)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council adopt Resolution 2002-62 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS SUPPORTING THE PURCHASE OF
ULTRA -LOW AND ZERO EMISSION VEHICLES FOR NON -EMERGENCY
OPERATIONS TO REDUCE AIR POLLUTION AND IMPROVE PUBLIC HEALTH.
Carried unanimously.
JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT (JAIBG) PROGRAM
SUBGRANT AWARD/RESOLUTION 2002-57 (18.36)
Motion by Mr. Glickman, seconded by Mr. Blanton, that Council adopt Resolution 2002-57 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS WAIVING RIGHT TO JUVENILE
ACCOUNTABILITY INCENTIVE BLOCK GRANT PROGRAM SUBGRANT AWARD,
AUTHORIZING THE FUNDS TO BE EXPENDED BY THE COUNTY OF SANTA CLARA,
AND AUTHORIZING THE TOWN MANAGER TO EXECUTE SAID WAIVER FOR
SUBGRNAT AWARD FOR FUTURE YEARS. Carried unanimously.
TC:D 13:MM050602 4